Annual Report
FY2015

AboutSince its establishment in April 2001, Nippon Export and Investment Insurance (NEXI) has been
providing export and investment insurance to protect Japanese businesses from risks involved inoverseas transactions that cannot be covered by private-sector insurance. We provide reassurance
and support to Japanese companies by anticipating changes in the market at all times, appropriately
responding to customer needs, and efﬁciently and effectively conducting insurance business so thatthey may engage in international transactions with peace of mind and without fear of uncertain risks.

By implementing our customer-ﬁrst policy,
will continue to:❶ Improve the quality of our service;❸ Promote efﬁcient operations; and❷ Broaden the range of risk coverage;❹ Increase management transparency.

C o n t e n t s
Message from the Chairman

03

NEXIʼs Trade and Investment Insurance System

04

Major Insurance Products052015 Performance Highlights

062015 Business Overview

122015 Underwritten Projects

162015 Review of Performance222015 Financial Results

26

Fourth-Term Objectives

32

In principle, ﬁgures in this report are rounded to the nearest unit. Therefore,

Customer Service Charter

34

that fall below a unit as a result of rounding are indicated as “0”; if there is

Proﬁle of NEXI

36

02 | NEXI | Annual Report FY2015

Regarding ﬁgures in this Annual Report
the sum of individual ﬁgures may deviate from the sum presented. Figures
no corresponding ﬁgure, “-” is indicated. Figures in the trade and investment
insurance business are on a ﬁscal period basis unless otherwise noted.

Message fromthe Chairman

It gives me great pleasure to present the FY2015 annual report of Nippon
Export and Investment Insurance (NEXI) for the year ended 31 March 2016. I
am truly grateful for your support and cooperation throughout the past year.
During the fiscal year under review, the overall world economy showed
moderate improvement, while recovery in some emerging economies was
slow against a backdrop of continuously low crude oil and other resource
prices, as well as debt problems.
Under such circumstances, Prime Minister Shinzo Abe announced the“Partnership for Quality Infrastructure” in May 2015 to accommodate
the huge demand for infrastructure in Asia by providing high-quality
investments. Following the announcement, we at NEXI started various
capability enhancement measures, including creation of insurance for subsovereign transactions. We also made efforts to help Japanese companies toincrease their competitiveness in the overseas market by actively supporting
their projects for infrastructure, including power, telecommunications, andagriculture.
Also during FY2015, we launched a new web service that enables online
registration of insurance users and speciﬁc insurance applications. Our efforts
to expedite and simplify procedures have provided greater convenience tousers. Furthermore, we at NEXI have continued to offer support information
to SMEs through the expanded SME-support network of local banks andShinkins (credit associations) that have formed business alliances andcooperative partnerships with us. Our efforts have been reflected in thenumber of contracts of Export Credit Insurance for SMEs, which increased
signiﬁcantly in FY2015.
In July 2015, the revised Trade and Investment Insurance Act was enacted
during an ordinary session of the Diet to materialize NEXIʼs upcomingtransition to a special company wholly owned by the government in April
2017. The new NEXI will continue to promote international transactions
by Japanese companies, including infrastructure export, by improving its
managerial flexibility, efficiency, and agility, while also maintaining unity
with the government in terms of trade policy.
To survive and win against the international competition amid the ongoing
economic globalization, both the public and private sectors must continue
to work together. We at NEXI will continue to provide quality insurance
services that meet diverse business needs. We would greatly appreciate yourcontinued understanding and support in our endeavors.

Kazuhiko Bando

Chairman and CEO
July 2016

Annual Report FY2015 | NEXI | 03

NEXIʼs Trade and Investment
Insurance System■Trade and investment insurance covers risks involved in overseas transactions, such as export, import,
investment, and financing, for which private insurance is not able to provide coverage.
■The purpose of trade and investment insurance is to mitigate risks that accompany cross-bordertransactions and support the overseas activities of companies.
■Most countries have state-owned institutions that provide trade and investment insurance to support theinternational business activities of domestic companies.

Governmentof Japan(METI)

100%
Investment

Insurance
Contract

Japanese
Company

Export /Investment

Reinsurance
Contract

Foreign Country
Foreign Company
Overseas Project■Trade and investment insurance covers losses incurred by companies and institutions as a result of
occurrence of the following risks.

Political Risk

Commercial Risk

● Foreign exchange restriction / prohibition,
import restriction / prohibition● War, civil strife, revolution, acts of terrorism● Delays in foreign currency remittances caused in thepaying country● High customs duties imposed for the purpose of
economic sanctions● Economic sanctions by the UN or countries other thancountries of destination● Expropriation● Natural disasters or other causes not attributable tocontracting parties● Non-payment by a counterparty to a contract for threemonths or longer(Excluding cases where the exporter is responsible for the
non-payment such as cases of complaints against goods)● Bankruptcy of a counterparty to a contract● Event similar to bankruptcy● Unilateral cancellation of export contract with a foreign
government before shipment(Excluding unilateral cancellation before shipment by a
private-sector buyer)

The following losses arising from such events…
…will be covered:Pre-shipment risk

Post-shipment risk

Overseas investment risk

Loss incurred due tofailure of shipment

Loss incurred due tofailure to collectreceivables, service fees,or loans

Losses on
investment assets as aresult of discontinuation orsuspension of a joint venture

Political Risk: Force majeure risk that is not attributable to contracting parties (also called Country Risk)
Commercial Risk: Risk for which the overseas counterparty can be held responsible (also called Credit Risk)

04 | NEXI | Annual Report FY2015

Major Insurance Products
Insurance for export■ Export Credit InsuranceThis insurance covers losses incurred by a Japanese company undertaking export,intermediary trade, or provision of technical cooperation, such as construction work,
as a result of failure to make shipment or collect receivables.
＊Percentage of pre-shipment coverage: 60-95% for Political Risk and 60-80% forCommercial Risk (under the Export Credit Specific Insurance)＊Percentage of post-shipment coverage: 97.5% for Political Risk and 90% forCommercial Risk (under the Export Credit Specific Insurance)

Insurance for loans■ Buyer's Credit InsuranceThis insurance covers losses incurred by a financial institution located in Japan as aresult of non-repayment of loans made to a foreign company or bank for payment ofgoods exported from Japan (buyerʼs credit).
＊ Percentage of coverage: 100% for Political Risk and 95% for Commercial Risk

■ Overseas Untied Loan InsuranceThis insurance covers losses incurred by a financial institution or company located inJapan as a result of non-repayment of loans made to a foreign company or government
to be used as business funds.
＊ Percentage of coverage: 100% for Political Risk and 90-95% for Commercial Risk

Insurance for investment■ Overseas Investment InsuranceThis insurance covers overseas investment losses incurred due to expropriation
or infringement of rights by a foreign government, restriction on foreign currency
remittance, war, and other force majeure events.
＊Percentage of coverage: up to 100%

Annual Report FY2015 | NEXI | 05

2015 Performance Highlights
Export Trends
Japanese exports in FY2015 declined for the first time in three years to approximately JPY 74.1 trillion (down by 0.7%
compared to the previous fiscal year), partly due to declining steel and organic compounds exports. By region and country,
exports to Asia fell by 2.8% to approximately JPY 39.2 trillion, of which exports to China accounted for approximately JPY 13
trillion, down by 3.1% compared to the previous fiscal year. Exports to the U.S. increased by 6.2% to approximately JPY 15.1
trillion, and exports to the EU also increased by 5.2% to approximately JPY 8.1 trillion compared to the previous fiscal year.
(Japan's exports)(Millions of Yen)FY2010FY2011FY2012FY2013

FY2014FY2015

Total Exports

67,788,838

65,288,487

63,939,981

70,856,464

74,667,048

74,117,450

Year-on-year change(%)

14.9

(3.7)

(2.1)

10.8

5.4

(0.7)

(Source: Trade Statistics, Ministry of Finance)

Trends of the Trade and Investment Insurance Program
300

200

100

0
-100
-200

Peak of Insurance
Claims Payments
JPY 341.9 billion-300

Outstanding Borrowings
JPY 0 billion

Premium income
Recoveries and other income-400

Claims paid
Outstanding borrowings at year-end-500
Peak of Outstanding
Borrowings
JPY 688.6 billion

-600
-700
（Billions of Yen）

Fiscal Year '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Premium
incomeRecoveries andother income

32.8 37.3 34.1 41.3 46.8 33.4 30.4 21.3 34.2 44.8 35.7 44.7 46.2 44.1 43.5 41.0 46.0 45.4 33.2 32.9 37.3 31.3 43.2 38.0 43.8 34.9 36.8 39.3 38.2 34.4 37.7 36.2 40.6 74.6 51.2
5.5

12.3 15.2 25.6 38.9 53.6 34.9 40.0 69.3 38.7 40.7 111.2 77.3 85.2 98.3 121.2 123.0 91.3 84.6 85.3 74.5 70.2 97.7 101.4 228.7 247.3 57.5 41.9 20.5 15.6 17.7 24.0 31.4 35.7 40.9

Claims paid 37.6 62.7 80.5 141.5 164.3 169.0 109.5 164.8 142.7 198.6 341.9 148.2 128.0 80.6 57.1 44.4 30.2 16.7 21.6 32.4 49.9 65.1 23.0 12.9

3.7

2.4

3.8

17.2 10.4

8.6

8.4

4.4

12.2

3.1

22.4

Outstanding borrowings
at year-end

0

0

0

0

0

0

0

0

0

0

-

-

-

-

74.0 164.1 219.5 284.8 294.1 369.8 637.8 688.6 674.4 622.4 536.0 404.1 251.8 127.8

0

0

0

0

0

0

0

(Billions of yen)
Note: The amount is based on cash.

06 | NEXI | Annual Report FY2015

2015 Performance Highlights

Underwritten Amount● Underwritten Amount by Insurance TypeThe total underwritten amount in FY2015 was approximately JPY 7.8 trillion, down by 22.9% compared to the previous
fiscal year. Overseas Untied Loan Insurance decreased significantly by 79.9% to approximately JPY 0.4 trillion
compared to the previous fiscal year, in reaction to underwriting of large-scale projects in the previous fiscal year.
Export Credit Insurance also fell by 11.4% to approximately JPY 6.2 trillion, mainly due to declining steel and othermajor transactions underwritten during the fiscal year under review.
（Fiscal Year）

2011

7.1

2012

6.2

0.1 0.5

2013

6.8

2014

7.0

2015

0.2

0.5

2

Export Credit Insurance

0.5 0.1

1.4

0.1

0.6

0.7

8.5

8.3
8.5

0.2

0.3 0.5

6.2

0

0.3 0.4

4

Buyer's Credit Insurance

0.6

2.2

0.4 0.2

6

0.3

7.8

8

Overseas Investment Insurance

10.2

10 （Trillions of Yen）

Overseas Untied Loan Insurance

Other Insurance Types※Other Insurance Types: Export Bill Insurance, Export Bond Insurance, Prepayment Import Insurance, Trade Insurance for Standing Orders from Speciﬁc Buyer,
Export Credit Insurance for SMEs, Comprehensive Export Insurance with Simpliﬁed Procedure, Reinsurance● Underwritten Amount by Region
In terms of underwritten amount by region, Asia continued to be the largest with 51.8% (approximately JPY 4.4
trillion) of the total amount, followed by the Middle East with 13.1% (approximately JPY 1.1 trillion). North Americaʼsportion declined significantly to 4%, as the underwritten amount decreased by 78.4% to approximately JPY 0.3 trillion
compared to the previous fiscal year, in reaction to underwriting of a large-scale project in the previous fiscal year.
（Fiscal Year）

2014

41.8

2015

11.9
51.8

0
MiddleEast

40
Europe

6.6

13.1

20
Asia

9.6

7.0
9.5

14.4
9.2

60

CentralAmericaSouth
America

5.0

5.4 2.5

1.0

4.0 3.8 2.4

1.4

80

North
America

Africa100 （％）
International
Organizations

Oceania● Top Ten Countries and Regions for Underwritten Amount in FY2015(Millions of Yen)Country/Region

Underwritten amountComposition (%)

1

China

666,350

7.9

2

Indonesia

507,789

6.0

Underwritten amount

6

Country/Region
PanamaComposition (%)(flag of convenience vessel)

410,224

4.9

7

Saudi Arabia

364,178

4.3

3

Vietnam

467,592

5.6

8

Turkmenistan

350,543

4.2

4

Thailand

439,608

5.2

9

Qatar

304,549

3.6

5

Korea

411,975

4.9

10

Belgium

303,309

3.6

Annual Report FY2015 | NEXI | 07

Outstanding Commitment● Outstanding Commitment by Insurance TypeThe total outstanding commitment at the end of FY2015 declined by 1.8% to approximately JPY 16.2 trillion comparedto the previous fiscal year.
（Fiscal Year）

2011

8.1

2012

8.2

2013

0.8

0.9

1.0

8.5

2.1

1.1
1.3

2.2

2.6

8.8

1.7

1.5

2015

8.7

1.7

1.6

2

Export Credit Insurance

4

6

8

Buyer's Credit Insurance

0.4

1.4

2014

0

10

12.2

0.2

14.3

0.5
3.7

16.5

0.8

3.4

12

Overseas Investment Insurance

12.9

0.8

14

16.2

16 （Trillions of Yen）

Overseas Untied Loan Insurance

Other Insurance Types※Other Insurance Types: Export Bill Insurance, Export Bond Insurance, Prepayment Import Insurance, Trade Insurance for Standing Orders from Speciﬁc Buyer,
Export Credit Insurance for SMEs, Comprehensive Export Insurance with Simpliﬁed Procedure, Reinsurance● Outstanding Commitment by Region
The outstanding commitment for Asia continued to be the largest at approximately JPY 7.4 trillion (44.8% of the total
amount), followed by the Middle East at approximately JPY 2.7 trillion or 16.5%.

（Fiscal Year）

2014

44.5

2015

13.7

44.8

0

20
Asia

MiddleEast

08 | NEXI | Annual Report FY2015

16.5

40
Europe11.7

NorthAmerica

10.4

6.5

7.2

6.5

60
South
America

Africa

5.8

5.7

4.2

4.9

1.5

5.0

4.9

4.6

1.5

80
CentralAmerica

100 （％）
OceaniaInternational
Organizations

2015 Performance Highlights

Premium Income
Premium income in FY2015 declined by 30.1% compared to the previous fiscal year to approximately JPY 51.5 billion.
（Fiscal Year）

33.4

2011

38.8

2012
32.0

2013

73.7

2014

51.5

2015
0

10

20

30

40

50

60

70

80 （Billions of Yen）

(Note) For details please see page 24.

● Premium Income by Insurance Type
Overseas Untied Loan Insurance
earned the largest premiumincome of JPY 15.2 billion (29.6%of the total amount) in FY2015.
The second largest earner was
E x p o r t Cre d i t I n s u ra n c e w i t happroximately JPY 13.9 billion(26.9%), followed by Buyerʼs Credit
Insurance with approximately JPY
13.0 billion (25.3%).

Export Bill Insurance

0.3%

Trade Insurance for Standing
Orders from Speciﬁc Buyer
0.4%
Reinsurance

5.9%

Overseas Investment
Insurance
11.3%

Buyer’s Credit
Insurance
25.3%

Comprehensive Export
Insurance with Simpliﬁed
Procedure

0.2%

Export Credit
Insurance for SMEs

0.2%

Overseas Untied
Loan Insurance
29.6%
Export Credit
Insurance
26.9%

Recoveries
T h e a m o u n t o f r e c ov e r i e s i n
FY2015 was approximately JPY
40.9 billion, up by 14.4% comparedt o t h e p r e v i o u s f i s c a l y e a r.
Recoveries of claims associatedwith political risk events, including
Paris Club rescheduling, accounted
for 99.5% of the total recoveries.
The remaining 0.5% was associatedwith commercial risk events.

（Fiscal Year）

2011

0.3 17.6

17.3

2012

23.5

2013

0.5
30.9

2014

Political Risk Events

24.0

Commercial Risk Events

0.5

32.1

2015

3.6
40.7

0

10

31.4

20

35.7
0.2

30

40

40.9
50（Billions of Yen）

Annual Report FY2015 | NEXI | 09

Claims Paid
Claims paid in FY2015 increased by 621.9% to approximately JPY 22.4 billion compared to the previous fiscal year.
The significant increase was due to insurance claims made for a large-scale political risk event.

（Fiscal Year）

2011

1.3

8.3

7.0

2012 0.4

Political Risk Events

4.4

4.0

2013 0.4

Commercial Risk Events

12.2

11.8

2014 0.9

2.2

3.1

2015

18.6

0

5

22.4

3.8

10

15

20

25 （Billions of Yen）

● Insurance Claims Paid (by Region)
In terms of region, the amount of claims paid for South America was the largest at approximately JPY 18.6 billion (83.0%of the total amount).

Political/Commercial Risk

Political Risk

Commercial Risk

Central America 4.4%
4.7%

Africa1.2%

Middle East
6.6%

Europe0.1%

Asia

South America
83.0%

EuropeSouth America 0.9%

0.1%

AfricaSouth America
99.9%

7.2%

EuropeCentralAmerica
25.6%

Middle East
38.5%
Asia
27.7%

● Top Five Countries/Regions with the Largest Insurance Claims Paid
(Millions of Yen)Country/Region

Total

Political Risk

1

Venezuela

18,534

18,5340

2

United Arab Emirates

1,091

0

1,091

Commercial Risk

3

Panama (flag of convenience vessel)

980

0

980

4

Indonesia

599

0

599

5

Jordan

381

0

381

10 | NEXI | Annual Report FY2015

0.1%

2015 Performance Highlights

Insured Events in FY2015 (Based on the data as of May 15, 2016)■ Occurrence of Events by Risk

− Year-on-Year Change −The reported occurrences of both political and commercial risk events in FY2015 totaled JPY 26.1 billion.
Reported political risk events remained more or less unchanged compared to the previous fiscal year, as fewer
risk events in South America were reported while risk events in Africa increased. Reported commercial risk
events decreased mainly due to the decline of risk events attributable to public buyersʼ procedural delays inspite of rising events that resulted from private buyersʼ deteriorating cash flows.
(Millions of Yen)
Type of Risk

FY2013

FY2014FY2015Year-on-Year Change (%)

Political Risk Events
Occurrence
Commercial Risk Eventsof Events
Amount Total

22,522

10,195

10,563

3.6

7,448

20,127

15,573(22.6)

29,97030,322

26,136(13.8)

Political Risk Events

436

867

18,571

2,042.0

11,798

2,235

3,824

71.1

12,234

3,102

22,395622.0

Claims Paid Commercial Risk Events
Amount Total※Some amounts are recorded in a lump sum after notification of loss. Some insurance claims are made on a multi-yearbasis. Therefore, there are some gaps between the amount of occurrence of events and amount of claims paid

Occurrence of Events and Claims Paid (FY2013 - FY2015)
Political Risk Events
2013(Millions of Yen) Commercial Risk Events
22,522436

2014

10,195867

10,5630

Occurrence of Events
Claims Paid

2015

10,000

7,448

2013

2014

30,00020,000Occurrence of Events

11,798Claims Paid

20,127

2,235

2015

18,571(Millions of Yen)

15,5733,824
010,00020,00030,000■ Occurrence of Events by Region
Approximately 80% of political risk events occurred in Africa in FY2015. The remaining 20% occurred in South America, Asia (including
the Middle East), and Europe. Risk events in South America and Africa included events associated with “delays in foreign currency
remittances caused in the paying country.”

Occurrence of Events by Region (FY2015)
Political Risk Events(Millions of Yen) Commercial Risk Events

10,00010,000

7,954

8,000

8,000

6,000
4,000
2,000
0

7,287
5,458

6,000
1,163

4,000

1,443
3

0

Asia/
EuropeNorth andSouth
Middle East
Central America America(Millions of Yen)0
AfricaOceania

2,000
0

1,960
346

516

Asia/
EuropeNorth andSouth
Middle East
Central America America

6
AfricaOceania

Annual Report FY2015 | NEXI | 112015 Business Overview
Revising the NEXI Insurance Scheme
Further Revision of Trade and Investment
Insurance Act

Following the basic policy decision on the reform ofincorporated administrative agencies adopted by the
Cabinet in December 2013, the Trade and Investment
Insurance Act was revised in July 2015 to materialize
NEXIʼs transition to a special company. In accordancewith the revision, the trade reinsurance special accountwill be abolished and NEXI will become a special
company wholly owned by the government in April 2017.
Under the governmentʼs performance ensuring system,
NEXI will further promote international transactions by
Japanese companies, including infrastructure export, byimproving its managerial flexibility, efficiency, and agility.

Capability Enhancement to Help to Realize
the “Partnership for Quality Infrastructure”

Under the “Partnership for Quality Infrastructure”
announced by Prime Minister Abe in May 2015, NEXI
released a capability enhancement plan in November,which includes extension of the investment insurance
period from 15 years to 30 years, a political risk coverage(loan insurance) increase from 97.5% to 100%, andestablishment of insurance for sub-sovereign transactions.

Supporting the Strategic Priority Sectors
Continued Support for Overseas
Infrastructure Development

Based on the “Strategy for Exporting Infrastructure
Systems” announced in May 2013 and updated in May
2016 by the Ministerial Meeting on Strategy relating
to Infrastructure Export and Economic Cooperation,
Japan is aiming to win infrastructure orders worth
approximately JPY 30 trillion by 2020.
In FY2015, NEXI aggressively supported Japanese
infrastructure projects such as a telecommunications
project in Myanmar and an ultra-supercritical coal-fired
power plant project in Indonesia.

resource companies from an early stage. NEXIʼs FY2015
support for development of a business environment forsuccessful resource projects includes a memorandumof understanding (MOU) on cooperation signed with PT
Pertamina, Indonesiaʼs state oil company.

Support for the Agricultural Sector

NEXI is enhancing support for financing and investment
in overseas agriculture and promoting agricultural exports
to assure food security and make agriculture into a
growth industry. In FY2015, NEXI provided insurance tosupport financing for CAGSA, Argentina's major producer
and distributor of grains, including soybeans and corn,which are important grains for Japan in terms of foodsecurity. This was the second time for NEXI to support
an agricultural financing project in terms of supportinga stable food supply, after Brazilʼs Amaggi project in theprevious fiscal year.

Support for the Aircraft and Ship Sectors

For the aircraft sector, NEXI is preparing to support
export of the Mitsubishi Regional Jet (MRJ), a Japaneseregional jet that made its maiden flight on November 11,
2015. NEXI is also supporting export of Japanese aircraftcomponents through reinsurance provided for Boeingʼsaircraft cooperative development project that has been
joined by Japanese heavy industrial companies.
The ship sector continued its recovery in FY2015. Shiporders, which had declined following the 2008 financial
crisis, have increased for five consecutive years since2011 due to an improved competitive environment
thanks to the yenʼs depreciation and increased
replacement demand for fuel-efficient ships. The
number of ships covered by NEXI in FY2005 decreased
from the previous fiscal year to nine ships, althoughinquiries on support for ship finance are on the rise.
NEXI will continue to promote ship exports andprojects that contribute to the development of Japanʼsaircraft industry.

Helping to Secure a Stable Supply of Natural
Resources and Energy

For Japan, a stable mineral and energy resource supply
continues to be an important policy concern. Meanwhile,financing for todayʼs resource development projects has
become larger, longer, and more complicated. NEXI actively
supports projects that contribute to stable resource
supply to Japan and overseas business development
by Japanese companies by joining discussions on
possible financing cooperation with project participants,
including Japanese companies, foreign governments, and

12 | NEXI | Annual Report FY2015

Photograph courtesy of Mitsubishi Aircraft Corporation

2015 Business Overview

Strengthening Support for Business withPotential Partners

NEXI is currently supporting Japanese investment andbusiness development in high-risk emerging markets.
In FY2015, NEXI increased its underwriting limit on
short-term transactions with Cuba and eased coverage
conditions for Argentina, as well as Iran, which signed an
MOC on finance facility of up to approximately JPY 1.2
trillion (equivalent to USD 10 billion) with NEXI. Also, NEXI
continues to support infrastructure projects (such as
airports, telecommunications, and logistics) in Myanmar,
for which it restarted medium- to long-term insurance
coverage in 2012.

Indonesia is planning a number of large-scale projects inthe fields of oil, gas, and electricity to meet the growing
energy demand driven by strong economic growth.
To boost Japanese companiesʼ participation in theseprojects, it is vital for NEXI to collaborate with Pertamina
from an early stage. Through this MOU, NEXI is actively
supporting Japanese business in Indonesia.

Enhancing Ties with Overseas Organizations
Bilateral Meetings

NEXI holds regular bilateral meetings with ECAs andgovernment officials of Austria, France, Germany,and Korea to share information and exchange candid
opinions on various topics, including the global financial
situation and each countryʼs activities. The meetings arehelpful in further strengthening bilateral ties and keeping
up with each ECAʼs activities.

MOU with TFEBIn October 2015, NEXI signed an MOU with the StateBank of Foreign Economic Affairs of Turkmenistan(TFEB) on cooperation to promote trade and investment
between Japan and Turkmenistan. The MOU aims tomaterialize projects between the two countries by
providing a cooperative framework for supporting andpromoting bilateral trade and investment. The MOU
will help enhance Japanese business opportunities in
Turkmenistan and promote friendship and partnership
between the two countries.

MOU with EGAP

In November 2015, NEXI signed an MOU with the
Export Guarantee and Insurance Corporation (EGAP)of the Czech Republic to provide reinsurance and debt
recovery support for third-country contracts won jointly
by Czech and Japanese companies. In collaboration
with EGAP, NEXI supports Japanese companies that are
willing to participate in overseas projects in cooperation
with Czech companies in order to survive the intense
global competition.

At the signing ceremony(Photograph courtesy of Pertamina)

Berne Union Meetings

The Berne Union (International Union of Credit
and Investment Insurers) is a forum in which ECAs,
international organizations, and private insurers fromaround the world discuss common issues related toexport credit insurance and investment insurance from atechnical perspective. Since the first meeting in 1934 inBerne, Switzerland, its membership has grown to a totalof 52 as of April 2016.
The 2015 spring meeting was held in May in Florence,and the fall meeting was held in November in Shanghai.
Just like the last year, both meetings were held jointlywith the Berne Union Prague Club, a network for new
and maturing insurers of export credit and investment(38 members).

G12 Meeting

The G12 meeting was held in London in March 2016.
Government officials and ECA representatives of the 12
nations (Brazil, Canada, China, France, Germany, Italy,
India, Japan, Korea, Russia, UK, and USA) discussed theglobal economic situation and trade insurance trends,
including the OECD Export Credits Arrangement.

MOU with Pertamina, Indonesia

In December 2015, NEXI signed an MOU with PT
Pertamina (Persero), Indonesiaʼs state oil company.

Annual Report FY2015 | NEXI | 13

Supporting Mid-Sized Enterprises and Smaller Businesses (SMEs) to Expand Overseas
Promoting Trade Insurance

In 2015, extra effor ts were made to gain wider
public acknowledgement of trade insurance, including
production of an easy-to-understand animated film
introducing NEXIʼs full line of insurance packages followed
up with case studies, another separate introductory video
that focuses on the voices of NEXIʼs clients, and a newcomprehensive brochure with scenes from the animatedfilm in the form a comic book, all to help NEXIʼs customers
better understand how its policies can support themthroughout their business.

which turned out to be an excellent opportunity to hear thevoices of trade insurance users, and also a place for sharing
information and opinions among the various organizations
that work to support the business of SMEs.

Photo taken at the support network for SMEs' Overseas businessdevelopment meeting event

Comic book-style brochure “When Trade
Insurance Can Be a Big Help!”

Introducing a Renewed Web Site and New
Web Registration Services

In May 2015, NEXIʼs web site was renewed with the
purpose of offering enhanced convenience and usability
to its customers. Following this renewal, NEXI started
offering new web services in July 2015, and simplified its
registration and application placement procedures. Since
then, NEXI has been expanding its array of online services,and new policy applications, as well as occurrence
reports of insured risk, can now be sent in through its
web service. Services for Export Credit Insurance werelaunched in November 2015, and those for Export Credit
Insurance for SMEs were launched in March 2016.
Although such services are only available for limited
types of insurances now, NEXI will continue to offer
customer-friendly services to reduce the burden of fillingin long paper forms.

Reinforcing Support for SMEs

The support network for SMEs' overseas businessdevelopment was initially launched in FY2011 in conjunction
with 11 regional banks with the aim of widely spreading andpromoting the use of NEXI's insurance. In FY2015, 11 otherbanks and 16 Shinkin banks joined the network, expanding
the total number of partner financial institutions to 105.
In February 2016, a conference was held for the network,

14 | NEXI | Annual Report FY2015

In October 2014, an amendment was made to theTrade and Investment Insurance Act that enabled NEXI
to underwrite reinsurance for domestic private insurancecompanies, and it has since been underwriting reinsurance
for several private insurance firms. This scheme wasintroduced with the purpose of offering insurance
products and services to SMEs with simpler and easierapplication procedures by working together with private
insurance firms, with the goal of bringing out the strong
points of both public and private insures.
Furthermore, since April 2015, NEXI has enhanced its freebuyer credit check service provided to its SME customers at
the time of registering their oversea business partner, andnow its customers can enjoy the convenience of receiving
up to eight credit reports free of charge. Such efforts havebrought a significant rise in the number of contracts ofExport Credit Insurance for SMEs.
1,510

Premium income(1,000YEN)

88,397

Number of Insurance
Contracts underwritten

890
669

167
4,176

273
5,532

211

262

3,929

4,723

362
6,123

296

286

6,236

6,436

435

38,957

23,825

11,5432005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Transition in number of contracts of Export Credit Insurance
for SMEs and premium income

With the mission of bringing higher feasibility to SMEs
in expanding their oversea businesses in mind, NEXI willcontinue to improve its products and services, as well as
strengthen its customer support system and means ofpublicity.

2015 Business Overview

In Pursuit of a Sustainable Society
Trade and Investment Insurance forPreventing Global Warming

Trade and Investment Insurance for Preventing
Global Warming was introduced in 2008 with the aimof supporting export and other overseas businessesof Japanʼs energy-saving and new energy technology
knowhow and machinery, which can contribute to the
reduction of greenhouse gas emissions. In December
2015, NEXI provided insurance on a loan made for theconstruction of a geothermal power generation plant in
Iceland. NEXI is taking part in the pursuit of a sustainable
society and supporting the export of Japan-madeinfrastructure systems in the field of renewable energy.

Guidelines on Environmental and Social
Considerations

categories based on their potential environmental andsocial impacts (Category A [high impact] to Category
C [low impact]) in accordance with Screening Forms
submitted by applicants for insurance services. NEXI
assesses projects appropriately by taking into accountthe classification results. For example, as a general rule, asite visit will be conducted if a project is categorized as A.
Furthermore, Objection Procedures on the Guidelines
ensure NEXI's compliance with the Guidelines, for which
an “Examiner” is assigned under the direct control of the
Chairman and independent of the section in charge ofunderwriting business.
NEXI will continue to carry out appropriate steps
in accordance with the Guidelines to confirm thatappropriate environmental and social considerations are
implemented on projects.
FY2015 Screening Results by Category

Category C
Category C
85.7％
85.7％

Category A
Category A
14.3％
14.3％
Category B
Category B
0％0％

FY2015 Screening Results by Region

On-site visit to a construction site

NEXI has established the “Guidelines on Environmental
and Social Considerations in Trade Insurance” to carry out
its social responsibilities pertaining to environmental andsocial issues. NEXI confirms that appropriate environmental
and social considerations are implemented by the projectsponsors on projects related to its insurance services.
In F Y2015, NE XI conducted screenings for 56
projects and made assessments, including site visits.
In the assessments, projects are classified into three

Others
5.4%
Others5.4%
Africa7.1%
Africa7.1%
Middle East
7.1%
Middle East
7.1%
Central &Central&South America
9.0%South America 9.0%
Europe/NIS 10.7％
Europe/NIS 10.7％

Asia
Asia
60.7%
60.7%

※Turkey included in the Middle East.
※Turkey
MiddleEast. America
Mexico included
included inin theCentral& SouthMexicoincludedinCentral&South
America
Russia and Central Asia included in Europe/NIS.
Russia and Central Asia included in Europe/NIS.

Annual Report FY2015 | NEXI | 15

2015 Underwritten Projects
Power

Indonesia

Lontar Extension Ultra-Supercritical Coal-Fired Steam Power Plant

PT PLN (Persero), a power utility wholly owned by thedemand. NEXIʼs financial suppor t for expor t ofIndonesian government, is planning to build an ultra-

Japanese equipment used in this project will lead tosupercritical coal-fired power plant (315 MW) nearmore business opportunities in Indonesia for Japanesethe existing power plant in Banten Province in Java.

companies, and will also help them to maintain and

Sumitomo Corporation was awarded an EPC contract

strengthen their international competitiveness.

jointly with Black & Veatch International Company of the
U.S.A. and PT Satyamitra Surya Perkasa of Indonesia

This insurance contract was entered into in March2016.

to supply the main equipment, including a boiler
manufactured by IHI Corporation and a steam turbine
and generator by Toshiba Corporation.
To purchase the equipment, PLN raised funds of
USD 317 million from Japan Bank for International
Cooperation (JBIC) and Sumitomo Mitsui Banking
Corporation (SMBC). NEXI has provided insurance tosupport SMBCʼs USD 127 million in loans. This is thefirst PLN-related project in which NEXI has provided
insurance to support a loan without a government
guarantee.
This project is based on Indonesiaʼs five-year powerplan (2015-2019), in which the country will develop 35
GW in power sources to meet its surging electricity

Bangladesh

Photograph courtesy of PLN

Bibiyana III Combined Cycle Power Plant Project

The Bibiyana III power generation project is a project

JPY 30.8 billion in loans, and NEXI decided to provide

conducted by Bangladesh Power Development Board

insurance to support BTMUʼs portion (JPY 12.3 billion).

(BPDB), which is planning to construct a gas-based

Bangladesh is undergoing chronic power shortages,

combined cycle power plant (400 MW) in the northeast

as power demand has continued to outstrip supplyof Bangladesh . Marubeni Corporation , an EP C

against a backdrop of steady economic growth. To

contractor for the project, will deliver a complete set ofease the shortages, the government of Bangladesh

power generation facilities, including a gas turbine andis attempting to increase the power supply under its

generator (Mitsubishi Hitachi Power Systems, Ltd.) andPower System Master Plan. The Bibiyana III projectsteam turbine and generator (Fuji Electric Co., Ltd.).

will help to promote further economic growth of the

For BPDBʼs purchase of the equipment, Japan Bankfor International Cooperation (JBIC) and The Bank ofTokyo-Mitsubishi UFJ, Ltd. (BTMU) agreed to provide

16 | NEXI | Annual Report FY2015

country based on stable power supply.
Commitment to enter into the insurance contract wasissued in February 2016.

2015 Underwritten Projects

Export of Plant Equipment for Geothermal Power Projects
Turkey Export of Equipment for Germencik

Iceland Theistareykir Geothermal Power

Gurmat Elektrik Uretim A.S. (Gurmat), an independent

Landsvirkjun (Icelandʼs National Power Company

Ⅱ Geothermal Power Project

power producer in Turkey, has built a new 47.4 MW
geothermal power plant in Germencik in the southwestof Turkey. For this new plant, Mitsubishi Corporation,

TIX-IKS Corporation, and TIX-TSK Corporation wereawarded a supply contract, including that for turbine by
Gurmat.

To suppor t Gurmatʼs purchase, Commerzbank

AG Tokyo Branch and Japan Bank for International

Cooperation (JBIC) agreed to provide USD 14.1 million

in loans to Gurmat via Turkiye Is Bankasi A.S. (Isbank), a
commercial bank in Turkey. NEXI has provided insurance

for USD 5.6 million in loans extended by Commerzbank
AG Tokyo Branch.

This is the first project support based on the export

credit line established for Isbank in October 2012 topromote transactions in the renewable energy andclimate change control sectors.

This insurance contract was entered into in August

2015.

Project[NPC]) placed an order with Fuji Electric Co. Ltd. inconsortium with Balcke-Dürr GmbH (Germany), for a
power-generating unit, including a steam turbine andgenerator, to be used in its Theistareykir Project, ageothermal power plant construction project that istaking place in the northeast of Iceland.
For the purchase of these supplies, a loan of USD 68
million was extended to the NPC through co-financing
from Japan Bank for International Cooperation (JBIC),
Citibank Japan Ltd. (lead arranger), The Bank of
Yokohama, Ltd., and Commerzbank AG Tokyo Branch.
NEXI has provided insurance for the loan portion
extended by Japanese banks (loan amount of USD 34
million). This is the first time for NEXI to underwrite midor long-term insurance for loans made to fund a projectin Iceland.
In Iceland, 70% of the countryʼs annual electric
power is generated hydroelectrically, while 30% is
produced through geothermal methods, meaning that
100% of the nationʼs power usage relies on renewableenergy. Having the opportunity to export and supply
geothermal power-generating systems to the electrical
power market in Iceland will help to create new business
opportunities in the field of renewable energy, whichin the end will contribute to sustaining and improving
Japanʼs worldwide industrial competitiveness.
This insurance contract was entered into in March2016.

Photograph courtesy of Gurmat Elektrik Uretim A.S.

Image courtesy of NPC (Conceptual drawing of completion)

Annual Report FY2015 | NEXI | 17

Resource

Mongolia

NEXI to Underwrite Reinsurance for MIGA
in Oyu Tolgoi Copper and Gold Deposit Development Project

NEXI has underwritten reinsurance for the Multilateralounces of gold ore, and the project is expected toInvestment Guarantee Agency (MIGA), a member ofoperate for more than 50 years. Ninety percent of thethe World Bank Group, with regard to a financing

human resources for the project will be hired locally,

arrangement of USD 30 million provided to fund thecontributing to creation of new vocational opportunities

Oyu Tolgoi Copper and Gold Deposit Development

in Mongolia. The project will also bring new export

Project.

opportunities for Japanese corporations, as supplies,

T he projec t si te is lo cated 550 km sou t h ofsuch as trucks and tires, will be exported from Japan,

Ulaanbaatar, Mongoliaʼs capital city, in the southernbacked by loans extended by 13 Japanese banks,

Gobi Desert. The scheme development and businessincluding Sumitomo Mitsui Banking Corporation (SMBC)

operation of the project will be conducted by the

and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (MUFG).

government of Mongolia (34%) and Turquoise Hill

Expectations are high that the financial support offered

Resources (66%; 51% of Turquoise Hill is owned by Rio

by NEXI will bring on even more exports and otherTinto, which is a multinational mining and resources

overseas business opportunities to allow Japanesebusiness group), and Rio Tinto has also been working

corporations to expand in Mongolia.

on development of the project since 2010.
The Oyu Tolgoi deposit is estimated to reserve

This insurance contract was entered into in December
2015.

more than 270 million tons of copper and 170 million

BrazilFPSO Charter Project

Mitsubishi Corporation (Mitsubishi) and Nippon

FPSO charter project, with a joint 39% investment

Yusen Kabushiki Kaisha (NYK) established Beta Lulaand provision of operational support by sending theirCentral S.à. r.l. (Beta) jointly with SBM Offshore N.V. ofstaff. NEXI also contributes greatly to promotion of thethe Netherlands and QGOG Constellation S.A. of Brazil

offshore resource development infrastructure businessto build Cidade de Saquarema, a Floating Production,of Japanese companies.

Storage, and Offloading (FPSO) system chartered forthe development of Lula Central Oil Field off the coast

This insurance contract was entered into in August
2015.

of Brazil.
Out of the total of USD 1.55 billion in funds raised by
Beta through project financing, nine lenders, including
Mizuho Bank and ING Bank N.V. Tokyo Branch, provided
USD 400 million in loans, and NEXI has provided
insurance to these banks.
Lula Central Oil Field is in the Pre-salt layer about 5,000m
beneath the seabed in a location about 250 km off thesouthern coast of Sao Paulo. The Brazilian national oil
company, Petrobras, leads its development. Installed in
mid-2016, this FPSO unit will contribute to further oil
production in Brazil.
Mitsubishi and NYK are deeply involved in this18 | NEXI | Annual Report FY2015

Photograph courtesy of SBM Offshore N.V.

2015 Underwritten Projects

Infrastructure

MyanmarMandalay International Airport Operation Project

Mitsubishi Corporation (Mitsubishi), JALUX Inc.

tourism activities. Japanese companies will contribute to(JALUX) and Yoma Development Group Limited ofthe development of Myanmar's economy by providing

Myanmar established a joint venture in Myanmar totheir knowledge obtained through long-term experience

start operation of Mandalay International Airport basedin airport operations.

on a 30-year concession agreement with Myanmarʼs
Department of Civil Aviation (DCA). NEXI has provided

This insurance contract was entered into in April
2015.

insurance to support investment and loans by Mitsubishi
and JALUX.
Located almost at the exact center of the country,
Mandalay International Airpor t is a hub airpor tconnecting major domestic and foreign cities. The
number of passengers using the airport has increased
significantly over the past few years, and further growthis expected to be driven by the countryʼs industrial andPhotograph courtesy of Mitsubishi Corporation

Telecommunication

Myanmar

Telecommunication Services Project (Mobile Telephone,Internet Services, and Fixed-Line Telephone)KDDI Corporation (KDDI) and Sumitomo Corporation(Sumitomo), operating jointly with Myanma Posts &Telecommunications (a Myanmar government agency),

the telecommunication sector in that country.
This insurance contract was entered into in May 2015
(Sumitomo) and July 2015 (KDDI).

have established KDDI Summit Global Myanmar Co.,
Ltd. (KSGM) to provide telecommunication services,
including mobile telephone, Internet services, and fixedline telephone, in Myanmar.
NEXI is supporting this project by underwriting
insurance to cover the risk of investments in KSGM
made by KDDI and Sumitomo.
The government of Myanmar is aiming to bring its
current low penetration rate of mobile phones (10% asof December 2012) up to 80% by 2016. Through thisproject, KDDI and Sumitomo will introduce cutting-edge
telecommunication technologies together with operation
knowhow to Myanmar and provide world-class “Japan
Quality” services in the fields of mobile telephone,Internet services, and fixed-line telephone, thereby
contributing to the rapid growth and development of

Photograph courtesy of KDDI Corporation and Sumitomo Corporation

Annual Report FY2015 | NEXI | 19

Agriculture

Argentina

Agricultural Development Project

Compañia Argentina de Granos S.A. (CAGSA), a

during times of emergency. It is also expected thatleading trading company dealing in grains and oilseeds

the relationship between Japanese corporations andin Argentina, has signed a five-year loan agreement of

CAGSA will be strengthened through the project.

USD 100 million with ING Bank N.V. Tokyo Branch. The
proceeds of this loan are being used for its long-term

T h is i nsu ra n ce co nt ra c t was e nte re d i nto i n
September 2015.

working capital needs. To expand its existing relationshipwith Japanese trading companies, CAGSA signed an
MOU with Marubeni Corporation to trade 400,000 tonsof grains and oilseeds from CAGSA annually.
NEXI has provided insurance for the loan, which
is its first agricultural loan project for an Argentine
corporation.
CAGSA handles grains and oilseeds such as soybeans
and corn, both of which are impor tant supplies
for maintaining Japanʼs food security. CAGSA has
committed to exporting a certain volume of grains andoilseeds to Japan while the project is in place. CAGSA
will also make its best efforts to export grains to Japan

Kenya

Photograph courtesy of CAGSA

Project for Domestic Production and Sales of Fertilizer

Toyota Tsusho Corporation entered into an MOU
with Kenyaʼs Ministry of Agriculture for constructionof a fertilizer production plant in the mid-west grain
production area located near the countryʼs border with
Uganda.
In this project, NEXI has provided insurance for
Toyota Tsusho Fertilizer Africa Ltd., and this is the very
first time for it to underwrite insurance for investment
in Kenya.
Through this project, production of bulk-blend
fertilizer will begin in 2016. Supply of “well-balanced
fertilizer products” based on soil analysis is expected topromote the transition in Kenyaʼs agriculture businessfrom the use of straight fertilizers, which are said tocause soil exhaustion and acidification, and eventuallyto contribute to Kenyaʼs overall food production.
This insurance contract was entered into in November
2015.

20 | NEXI | Annual Report FY2015

Image courtesy of Toyota Tsusho Corporation (Conceptual drawingof completion)

2015 Underwritten Projects

Supporting Mid-sized Enterprises and Smaller Businesses (SMEs) to Expand Overseas

Export of Soil Analyzers
NEXI has provided Export Credit Insurance for SMEs to Daiki
Rika Kogyo Co., Ltd. (Daiki Rika Kogyo) in order to support theexport of soil analyzers to Usem Instruments of Korea. The
insurance was provided via The Saitamaken Shinkin Bank. It
was the first time for NEXI to provide insurance via a Shinkinbank since the establishment of the business alliance between
NEXI and Shinkin banks in September 2014.
Daiki Rika Kogyo is a manufacturer of analyzers for soil andgroundwater and equipment for environmental and pollution
research. Previously, the company would only accept advancepayment under their export contacts. Now, the company isusing NEXIʼs insurance to expand their exports.
Seeking further business opportunities overseas, including
business with Taiwan and European countries, Daiki Rika Kogyo
has also begun taking advantage of Comprehensive Export
Insurance with Simplified Procedure, another NEXI insurance typethat comprehensively covers all transactions in each country.
NEXI is actively supporting the international business ofJapanese SMEs by reducing their concerns about nonpayment.
Annual export amount covered by insurance: Approximately
JPY 7 million
This insurance contract was entered into between April 2015
and March 2016.
FY2015 New Machine Promotion Award“Review Committee Chairman Special
Award”
DIK-2610 Dust Shielded Automated Milland Screen for Soil RK4 Ⅱ
Photograph courtesy of Daiki Rika Kogyo Co., Ltd.

Export of Japanese Sake
NEXI has provided Export Credit Insurance for SMEs for
Saiya Shuzoten Co., Ltd. (Saiya Shuzoten) to support the exportof Japanese sake to the US. The insurance was provided via
The Akita Bank, Ltd., which is Saiya Shuzotenʼs main bank andone of the banks that have a cooperative partnership with
NEXI. Saiya Shuzoten is a Japanese sake brewery that wasestablished in 1902 in the city of Yurihonjo in Akita Prefecture.
The breweryʼs main product is called “Yuki No Bosha.”
Saiya Shuzoten has been active in the export of their products
to more than 40 countries. As the world began to recognize thesuperiority of their products, their transaction volume increased
and at the same time their payment terms became longer.
Under such circumstances, NEXIʼs insurance was an excellent
solution to reduce their risk. Now, most exports to the US by
Saiya Shuzoten are covered by NEXIʼs insurance, which helps toreduce the breweryʼs concerns about non-payment.

NEXI will continue to support the export of Japanese sake,
which is one of the major export products to be strengthenedin the agriculture, forestry, and fisheries sector.
Annual export amount covered by insurance: Approximately
JPY 28 million
The first insurance contract was entered into in May 2015.

Photograph courtesy of
Saiya Shuzoten Co., Ltd.

Export of Cleansing Konjac Sponges
NEXI has provided Export Credit Insurance for SMEs toYamamoto Farm Corporation (Yamamoto Farm) pertaining totheir export of cleansing konjac sponges to a French buyer. The
underwriting of this insurance was conducted in coordination
with Shinonome Shinkin Bank, and marks NEXIʼs first business
partnership project to take place in Gunma Prefecture.
Yamamoto Farm is a manufacturing and sales company
located in the city of Tomioka in Gunma Prefecture. Theirkonjac sponge is a cosmetic cleansing sponge made fromthe corm of the konjac plant, which is locally produced andnaturally grown, and is very popular among natural productoriented affluent populations both in and outside of Japan.
The company already has several years of businessexperience in China, but their concerns about risk pertaining tobuyers' non-payment had limited their transactions to advancepayment transactions only. However, with the aim of largely
expanding their overseas business, the company decided touse Export Credit Insurance for SMEs and started to accept
export orders based on credit payment.
At first, their use of insurance was limited only to businesswith a French buyer with whom they could expect continued
business. However, they are now receiving many orders fromcountries other than France, and they have a bright outlook foreven further expansion of their overseas business.
NEXI will continue to support SMEs, which are the driving
force for creating new local businesses and the key tosupporting local industries.
Annual export amount covered by insurance: Approximately
JPY 2 million
This insurance contract was entered into in March 2016.

Photograph courtesy of
Yamamoto Farm Corporation

Annual Report FY2015 | NEXI | 21

2015 Review of Performance
Underwritten Amount■ Underwritten Amount by Insurance Type(Millions of Yen)

Type of Insurance

FY2011FY2012FY2013

FY2014FY2015

Export Credit Insurance

7,110,487

6,151,894

6,849,345

6,965,265

One year or less

3,321,146

3,451,195

3,855,361

More than one year

3,789,341

2,700,699

Buyer's Credit Insurance

343,996

Export Bill Insurance

Composition(%)

Year-on-yearchange (%)

6,169,724

78.8(11.4)

3,855,510

3,217,940

41.1(16.5)

2,993,984

3,109,755

2,951,783

37.7

(5.1)

123,290

193,845286,390489,827

6.3

71.0

16,54912,295

14,153

12,008

13,7950.2

14.9

Export Bond Insurance

0

0

0

0

0

0.0

−

Prepayment Import Insurance

254

1

5

84

454

0.0

439.2

Overseas Investment Insurance

440,367

530,106

611,679

471,487

571,993

7.3

21.3

Overseas Untied Loan Insurance

549,068

1,369,370

706,030

2,173,094

437,326

5.6(79.9)

Trade Insurance for Standing
Orders from Specific Buyer

10,311

9,331

7,420

8,134

5,383

0.1

(33.8)

Export Credit Insurance for SMEs

567

1,304

2,740

4,332

9,223

0.1

112.9

Comprehensive Export Insurancewith Simplified Procedure

14,34019,162

23,58937,17340,754

0.5

9.6

Reinsurance

51,834

83,311

108,365

207,007

94,008

1.2(54.6)

8,537,772

8,300,064

8,517,171

10,164,974

7,832,488

100.0(22.9)

Total(Note 1) The underwritten amount is based on the amount as determined at the signing date of an insurance contract. The total is based on the actual
underwritten amount calculated by applying the exchange rate of the insurance contract date, not the insured amount based on the insurance option
for transactions in foreign currency. (The same applies to the table below.)(Note 2) In accordance with the BU rules, Export Credit Insurance with credit terms of more than one year includes figures on insurance for capital goods, even
if the credit period is one year or less. (The same applies hereafter.)(Note 3) The floating interest coverage option in Buyer's Credit Insurance and Overseas Untied Loan Insurance is evaluated with an amount calculated using the
maximum rate (20% per annum). (The same applies to the table below.)■ Underwritten Amount by Region(Millions of Yen)

RegionFY2011FY2012FY2013

FY2014FY2015Composition
(%)

Asia

4,381,676

4,003,749

4,694,526

4,550,431

4,355,905

51.8

(4.3)

Middle East

947,276

591,102926,125

1,294,219

1,102,19513.1(14.8)

Europe895,278795,756

1,029,919

1,040,255

796,6399.5(23.4)

North America

261,013

293,729

332,822

1,563,728

337,9194.0(78.4)

Central America

1,086,265

903,421733,386

714,656

776,265

9.2

8.6

South America

825,627

883,707569,857

762,599

419,8675.0(44.9)

Africa479,742447,219494,062

588,410316,201

3.8(46.3)

Oceania

148,645833,730

259,023

107,481

113,280

1.4

5.4

International Organizations

116,006

167,972

155,064

266,871

198,002

2.4(25.8)

Year-on-yearchange (%)(Note 1) Classification used to compute the above amount: Pre-shipment: Country of the shipment consignee; Post-shipment: Country of the payer (or countryof the guarantor when guaranteed).
(Note 2) The amount includes transactions that are doubly computed, i.e., for both pre-shipment (country of the consignee) and post-shipment (country of thepayer).
(Note 3) The amount is classified under International Organizations instead of regions when guaranteed by an international organization.
(Note 4) Central Asia is included in Asia. (The same applies hereafter.)(Note 5) Central and Eastern Europe and Russia are included in Europe. (The same applies hereafter.)

22 | NEXI | Annual Report FY2015

2015 Review of Performance

Outstanding Commitment (As of ﬁscal year end)
■ Outstanding Commitment by Insurance Type(Millions of Yen)

Type of Insurance

FY2011FY2012FY2013

FY2014FY2015

Export Credit Insurance

8,099,696

8,167,551

8,495,228

8,787,636

One year or less

2,337,812

3,097,421

3,569,810

More than one year

5,761,884

5,070,130

Buyer's Credit Insurance

832,267

Export Bill Insurance

Composition(%)

Year-on-yearchange (%)

8,668,299

53.6

(1.4)

3,750,003

3,333,628

20.6(11.1)

4,925,418

5,037,633

5,334,671

33.0

5.9

1,032,720

1,320,215

1,652,424

1,707,182

10.6

3.3

3,323

3,336

3,810

3,628

4,274

0.0

17.8

Export Bond Insurance

0

0

0

0

0

0.0

−

Prepayment Import Insurance

0

0

0

82

301

0.0

266.3

Overseas Investment Insurance

944,798

1,117,154

1,399,630

1,532,427

1,629,657

10.1

6.3

Overseas Untied Loan Insurance

2,129,124

2,241,104

2,600,398

3,706,172

3,372,761

20.9

(9.0)

Trade Insurance for Standing
Orders from Specific Buyer

15,147

15,34012,172

10,7189,483

0.1(11.5)

Export Credit Insurance for SMEs

145

499

978

1,638

3,287

0.0

100.6

Comprehensive Export Insurancewith Simplified Procedure

5,830

5,959

8,671

15,283

13,7720.1(9.9)

219,207

330,785

481,361

753,112753,423

4.7

0.0

12,249,536

12,914,446

14,322,464

16,463,122

16,162,440

100.0

(1.8)

Reinsurance
Total(Note 1) The total amount is calculated based on the actual insured amount by using the exchange rate as determined at each fiscal yearend (including the outstanding amount underwritten in previous years), not the insured amount based on the insurance option fortransactions in foreign currency. (The same applies to the table below.)(Note 2) The floating interest coverage option of Buyer's Credit Insurance is evaluated with an amount calculated using the maximum rate (20%per annum). (The same applies to the table below.)■ Outstanding Commitment by Region(Millions of Yen)

RegionFY2011FY2012FY2013

FY2014FY2015Composition
(%)

Asia

5,223,394

5,591,707

6,603,603

7,522,859

7,408,459

44.8

(1.5)

Middle East

1,919,569

1,852,988

1,889,077

2,322,733

2,722,278

16.5

17.2

Europe1,563,996

1,778,936

1,869,743

1,978,460

1,723,385

10.4(12.9)

North America

651,853375,726

474,068

1,102,231

1,068,542

6.5

(3.1)

Central America

698,215

620,925642,637

710,345814,936

4.9

14.7

South America

824,239

1,050,016

1,059,399

1,215,882

955,999

5.8(21.4)

Africa890,361

788,076815,499

969,552

828,640

5.0(14.5)

Oceania

774,131

1,092,066

1,198,756

834,769

756,155

4.6

(9.4)

International Organizations

218,854

202,893

246,227

247,975

247,502

1.5

(0.2)

Year-on-yearchange (%)(Note 1) Classification used to compute the above amount: Pre-shipment: Country of the shipment consignee; Post-shipment: Country of the payer (or countryof the guarantor when guaranteed).
(Note 2) The amount includes transactions that are doubly computed, i.e., for both pre-shipment (country of the consignee) and post-shipment (country of thepayer).
(Note 3) The amount is classified under International Organizations instead of regions when guaranteed by an international organization.

Annual Report FY2015 | NEXI | 23

Premium Income■ Premium Income by Insurance Type(Millions of Yen)

Type of Insurance

FY2011FY2012FY2013

FY2014FY2015

Export Credit Insurance
One year or lessMore than one year
Buyer's Credit Insurance
Export Bill Insurance
Export Bond Insurance
Prepayment Import Insurance
Overseas Investment Insurance
Overseas Untied Loan Insurance

14,074
5,462
8,611
3,953
146
0
0
3,177
10,065
391
6
38
1,528
33,378

11,943
5,025
6,918
1,524
111
0
0
3,718
17,924
321
12
38
3,207
38,797

13,315
5,612
7,703
3,899
132
0
0
4,471
6,078
263
24
43
3,771
31,994

15,188
6,247
8,941
6,586
111
0
0
5,035
38,514
281
39
85
7,840
73,67913,8585,081
8,777
13,030
131
0
3
5,802
15,231
194
83
99
3,038
51,469Trade Insurance for Standing
Orders from Specific Buyer

Export Credit Insurance for SMEs

Comprehensive Export Insurancewith Simplified Procedure

Reinsurance
Total

Composition (%) Year-on-year change (%)

26.9
9.9
17.1
25.3
0.3
0.0
0.0
11.3
29.6
0.4
0.2
0.2
5.9
100.0

(8.8)
(18.7)
(1.8)
97.9
18.8
−
644.8
15.2
(60.5)(30.9)
110.4
15.9(61.2)(30.1)(Note 1) Unlike the underwritten amount that is based on the insurance contract date, the premium income is recorded at the start of the insurerʼs obligation
period. The premium income and underwritten amount may be recorded in different fiscal years.

Insurance Claims Paid
■ Insurance Claims Paid (by Insurance Type and by Risk)(Millions of Yen)

Type of
Insurance
Export Credit Insurance
Buyer's Credit Insurance
Export Bill Insurance
Export Bond Insurance
Prepayment Import Insurance
Overseas Investment Insurance
Overseas Untied Loan Insurance
Trade Insurance for Standing
Orders from Specific Buyer

Export Credit Insurance for SMEs
Comprehensive Export Insurancewith Simplified Procedure

Reinsurance
Total

7,157
1,165
34
0
0
0
0
0
3
0
0
8,359

FY2011FY2012FY2013

FY2014

Political Commercial

Political Commercial

Political Commercial

Political Commercial

1,342
0
0
0
0
0
0
0
0
0
0
1,342

5,815
1,165
34
0
0
0
0
0
3
0
0
7,017

3,079
1,165
3
0
0
0
0
168
2
0
0
4,416

424
0
0
0
0
0
0
0
0
0
0
424

2,655 9,675
1,165 1,723
3
14
0
0
0
0
0
0
0
0
168
368
2
0
0
17
0
436
3,993 12,234

0 9,675
0 1,723
0
14
0
0
0
0
0
0
0
0
0
368
0
0
0
17
436
0
436 11,798

2,709
0
0
0
0
0
0
99
1
8
285
3,102

582
0
0
0
0
0
0
0
0
0
285
867

FY2015
Political Commercial

2,127 21,926 18,571
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
99
221
0
1
2
0
8
0
0
0
245
0
2,235 22,395 18,571■ Insurance Claims Paid (by Region)
RegionFY2012FY2013

FY2014

Political Commercial

Political Commercial

Political Commercial

Political Commercial

5,624

0

5,624

121

0

Middle East
EuropeNorth America
Central America
South America
AfricaOceania
Total

5
1,262
0
88
974
407
0
8,359

5
0
0
77
951
309
0
1,342

0
1,262
0
10
23
99
0
7,017

6
1,560
2
0
430
2,297
0
4,416

6
0
0
0
418
0
0
424

24 | NEXI | Annual Report FY2015

121

3,355 97.9
0
0.0
0
0.0
0
0.0
0
0.0
0
0.0
0
0.0
221
1.0
2
0.0
0
0.0
245
1.1
3,824 100.0

709.3
−
−
−
−
−
−
122.9
64.7
(95.4)(13.7)
621.9(Millions of Yen)FY2011

Asia

Composition Year-on-yearchange (%)
(%)

841

0 9,532
1,560 1,777
2
7
0
72
12
5
2,297
0
0
0
3,993 12,234

0

841

1,334

0

436 9,096
0 1,777
0
7
0
72
0
5
0
0
0
0
436 11,798

459
869
0
0
440
0
0
3,102

459
0
0
0
408
0
0
867

FY2015

1,334

Political Commercial
1,059

0

0 1,472
0
869
24
20
0
0
0
0
980
0
31 18,584 18,551
0
276
0
0
0
0
2,235 22,395 18,571

1,059

Composition Year-on-year(%)
change (%)

4.7(20.6)

1,472
6.6 220.7
4
0.1(97.2)
0
0.0
−
980
4.4
−
33 83.0 4123.6
276
1.2
−
0
0.0
−
3,824 100.0 621.9

2015 Review of Performance

Recoveries■ Recoveries by Risk
(Millions of Yen)

Type of Risks

FY2009FY2010FY2011FY2012FY2013

FY2014FY2015Composition(%)

Political Risk

17,451

14,327

17,33023,53130,86532,137

40,667

99.5

26.5

Year-on-yearchange (%)

Commercial Risk

3,064

1,313

338

486

509

3,572

201

0.5

(94.4)

Total

20,515

15,64017,66824,017

31,37535,70840,867

100.0

14.4

■ Recoveries by Region
Region

FY2009(Millions of Yen)FY2010FY2011FY2012FY2013

FY2014FY2015Composition(%)

Year-on-yearchange (%)

Asia

8,397

5,523

5,673

6,298

7,278

8,979

9,039

22.1

0.7

Middle East

1,342

1,357

3,510

8,172

11,173

11,227

11,52828.2

2.7

Europe

2,515

1,028

814

1,154

1,512

2,860

572

1.4

(80.0)

North America

0

778

1

30

0

1

1

0.0

−

Central America

571

193

510

241

3,246

3,015

1,519

3.7

(49.6)South America

1,705

1,155

1,176

1,536

1,558

2,361

10,771

26.4

356.2

Africa

5,985

5,608

5,970

6,587

6,608

7,266

7,437

18.2

2.4

Oceania

0

0

14

0

0

0

0

0.0

−

20,515

15,64017,66824,017

31,37535,70840,867

100.0

14.4

Total

Recoveries in FY2015
Recoveries by Risk
The recovery amount in FY2015 increased by 14.4% (JPY 5.1 billion) to JPY 40.8 billion compared to theprevious ﬁscal yearʼs JPY 35.7 billion. Recovery value relating to commercial risk events amounted to JPY
0.2 billion, accounting for 0.5% of the total value of debt recovery. Recoveries relating to political risk
events were JPY 40.6 billion (99.5% of the total value), most of which were debts recovered through Paris
Club debt rescheduling arrangements.

Recoveries by Region and Country
Looking at recoveries by region, the value of debt recovery in the Middle East was JPY 11.5 billion (up by 2.7%
compared to the previous ﬁscal year), which accounted for the largest share at 28.2% of the total recoveries.
The recovery amount includes JPY 9.8 billion in debts of Iraq and JPY 1.6 billion in debts of Jordan.
Debt recovery in South America accounted for the second largest share at 26.4%, or JPY 10.7 billion (up by 356.2%
compared to the previous ﬁscal year), which includes JPY 10.2 billion in debts of Argentina (including non-Paris Club
debts of JPY 1.7 billion caused by a large-scale political risk event) and JPY 0.5 billion in debts of Ecuador.
The recovery amount in Asia was JPY 9.0 billion (up by 0.7% compared to the previous ﬁscal year), accounting for22.1% of the total recoveries. NEXI recovered JPY 7.8 billion of Indonesiaʼs debts and JPY 0.9 billion of Myanmarʼs.
In other regions, JPY 7.4 billion in debts were recovered in Africa (JPY 7.3 billion in Egypt and JPY 40 million
in Gabon), JPY 1.5 billion in Central America (JPY 1.1 billion in Cuba and JPY 0.3 billion in the Dominican
Republic), and JPY 0.5 billion in Europe (JPY 0.4 billion in Serbia and JPY 0.1 billion in Bosnia and Herzegovina).

Annual Report FY2015 | NEXI | 25

2015 Financial Results
Fiscal Year 2015 in Review
On June 28, 2016, the Incorporated Administrative Agency Nippon Export and Investment Insurance (NEXI) submitted
its financial statements and other financial information for Fiscal Year 2015 ended March 31 (15th year in operation),to the Minister of Economy, Trade and Industry.

■ Overview of Financial Statements
Transition of Financial Highlights from FY2011 to FY2015 (FY end: March 31)(Millions of Yen)

Ordinary profit (loss)
Ordinary income(Underwriting income)(Reference) Premium of original insurance written
Net premium written
Reversal of outstanding claims provision(Investment income)(Foreign exchange gain)
Ordinary expenses(Underwriting expenses)(Reference) Insurance claims paid
Net claims paid
Provision for outstanding claims reserves
Provision for outstanding commitments reserves(Foreign exchange loss)(Operating and administrative expenses)
Extraordinary profit (loss)
Net profit (loss)
Total assets
Net worth

11th(FY2011)
9,006
16,24010,53831,849
8,972
1,562
5,503
31
7,234
1,394
8,359
741
−
690
−
5,840
17,59926,605
371,754
330,304

12th(FY2012)
8,404
16,866
9,910
35,590
9,908
−
6,524
182
8,462
3,185
4,416
388
342
2,466
−
5,261
12,022
20,426368,664
321,002

13th(FY2013)
6,905
14,241
8,582
28,224
8,153
351
5,245
143
7,336
1,491
12,234
1,201
−
499
−
5,597
8,526
15,432
373,557
336,433

14th(FY2014)
8,118
23,364
17,281
65,83917,240−5,344
430
15,246
9,740
3,102
287
1,035
8,635
−
5,399
17,13825,256414,617361,690

15th(FY2015)
6,193
19,355
13,45348,431
12,461
975
5,507−
13,162
5,519
22,395
2,239
−
3,363
71
7,386
31,98038,173454,285
399,863(Note) Extraordinary profit (loss) includes valuation of profits or losses related to government-invested assets.

■ Profits and Losses
In FY2015, Japanʼs total exports registered the first year-on-year decrease in three years (down by 0.7% to JPY 74.1
trillion). In addition, the staggering resource prices brought down the number of large-scale resource development
projects, causing a year-on-year decrease in NEXI's net premium written of 27.7% at JPY 12,461 million. Despite gain fromreversal of outstanding claims provision and an increase in investment income that showed a 3.1% year-on-year increase
at JPY 5,507 million, ordinary income turned out to show a year-on-year decrease of 17.2% at JPY 19,355 million.
The amount of net claims paid showed a year-on-year increase of 680.1% at JPY 2,239 million. However, the decreasein the number of underwriting insurances for mid-to-long term projects brought down the amount of provision foroutstanding commitments reserves to JPY 3,363 million, which represents a year-on-year decrease of 61.1%. Ordinary
expenses therefore showed a year-on-year decrease of 13.7% at JPY 13,162 million.
As a result, the ordinary profit for FY2015 was JPY 6,193 million, down by 23.7% from the previous fiscal year.
Extraordinary profit was JPY 31,980 million, which was generated mainly from valuation gains and interest income fromreceivables acquired by subrogation that were recovered according to rescheduling agreement.
As a result, net profit for the fiscal year amounted to JPY 38,173 million.

26 | NEXI | Annual Report FY2015

2015 Financial Results

Financial Statements■ Balance Sheet (As of March 31, 2016)(Millions of Yen)

Account Title

AmountAccount Title(Assets)

Amount(Liabilities)

Cash and cash equivalents

15,823

Outstanding claims reserves

1,383

Securities

353,600

Reserves for outstanding commitments

35,170Receivables subrogated by paying claims

208,504

Amount due to the reinsurer

6,699

Accrued income

2,877

Deposits received

Premiums receivable

6,999

Advance insurance premium

5,545

Reinsurance credit

2,851

Accrued amount payable

4,516

Buildings(Note 2)

6107

Accrued bonuses

121

Equipment and fixtures

635

Reserves for retirement allowance

557

Accounts receivable

461

Other liabilities

425

Deposits

428

Total liabilities

54,422

Software1,971(Note3)

Other assets
Allowance for uncollectible receivables

225(140,197)(Net worth)
CapitalGovernment investment

104,352(Note4)

Capital surplus

143,402

Retained earnings
Third term period reserve fund carried forward

52,822

Surplus reserves

61,114

Unappropriated retained earnings

38,173(of which profit for the current year)

38,173

Total retained earnings
Total assets

454,285

152,109

Total net worth

399,863

Total liabilities and net worth

454,285(Notes)
1. Amounts between JPY 1 million and JPY 0.5 million were rounded up to JPY 1 million. Amounts less than JPY 0.5 million were omitted.
2. Accumulated depreciation on buildings is JPY 250 million.
3. Accumulated depreciation on equipment and fixtures is JPY 1,480 million.
4. The breakdown of capital surplus is as follows.
(Millions of Yen)

Valuation difference of receivables subrogatedby paying claims.

45,386

Valuation difference of capitalized amount

98,015(Total)143,402

Annual Report FY2015 | NEXI | 27

■ Statement of Income (April 1, 2015 - March 31, 2016)(Millions of Yen)

Account Title

Ordinary income
Underwriting income
Net premium written(Note2)
Reversal of outstanding claims provisionInterest income on receivables subrogated by paying claims
Investment income
Income from interest
Interest on securities
Other
Other ordinary income
Ordinary expenses
Underwriting expenses
Net claims paid(Note3)
Estimated amount of insurance claims recovery(Note4)
Provision for outstanding commitments reserves
Foreign exchange loss
Operating and administrative expenses
Other
Claim recovery expenses
Other ordinary expenses
Ordinary Profit
Extraordinary income
Profit relating to in-kind contribution of receivables acquired by government subrogation(Note5)
Reversal of provision for uncollectible receivables relating to in-kind contribution of receivables aquired by government subrogation
Other extraordinary income
Extraordinary loss
Losses relating to in-kind contribution of receivables acquired by government subrogation(Note5)
Other extraordinary loss
Net Profit(Notes)１．Amounts between JPY 1 and 0.5 million were rounded
up to JPY 1 million. Amounts less than JPY 0.5 million
were omitted.
２．Breakdown of net premium written(Millions of Yen)

Premium of original insurance written
Refund of premium paid for reinsurance
Premium received for reinsurance
Premium paid for reinsurance(Net)
３．Breakdown of net claims paid

Insurance claims paid
Reinsurance claims recovered
Recoveries received before reinsurance claims(Net)

48,431
2,007
3,038(41,015)
12,461(Millions of Yen)

22,395(20,153)(3)
2,239

４．Breakdown of the estimated amount of insurance claims recovery

Amount19,355
13,453
12,461
975
18
5,507
27
5,480
395
395
13,162
5,519
2,239
(83)
3,363
71
7,386
186
111
75
6,193
32,686
22,724
9,961
1
706
695
11
38,173

５．The profits and losses related to assets invested by thegovernment were recognized as extraordinary income
and loss(1)Breakdown of profit relating to in-kind contribution ofreceivables acquired by government subrogation(Millions of Yen)

Interest income(Total)22,72422,724(2)Breakdown of losses relating to in-kind contribution ofreceivables acquired by government subrogation.
(Millions of Yen)

Recovery expenses
Foreign exchange loss
(Total)4691
695(Millions of Yen)

(1)Capitalized and evaluated amount of subrogated receivables in relation to commercial risk claims paid
①Commercial-risk subrogated receivables(397)②Difference of estimated value between the current year and the previous year concerning subrogated receivables capitalized in line with the outstanding claims provision(28)③Bad debt loss
9
④Provision for uncollectible receivables
334(2)Subrogated receivables recovered (not capitalized)
(1)
(Net)
(83)

28 | NEXI | Annual Report FY2015

2015 Financial Results■ Statement of Cash Flows (April 1, 2015 - March 31, 2016)(Millions of Yen)

Ⅰ．Cash flows from operating activities
Premiums received

51,270

Reinsurance premiums paid

(35,127)

Insurance claims paid

(22,396)

Reinsurance claims received

18,900

Income from recovery of receivables subrogated by paying claims

28,829Payment of recovered receivables subrogated by paying claims(14,185)

Income from recovery of receivables subrogated to the government

10,997

Payment of recovered receivables subrogated to the government(10,997)

Personnel expenses(1,432)Other operating expenses(4,887)

Other

224
Subtotal

21,196

Interests received

10,147

Net cash provided by (used in) operating activities

31,343

Ⅱ．Cash flows from investing activities
Placement of term deposits(148,000)

Withdrawal of term deposits

183,000

Purchase of securities(69,806)

Redemption and sales of securities

8,000

Purchase of fixed assets(1,102)

Reversal of security deposits

0

Payment of security deposits(35)

Net cash provided by (used in) investing activities(27,942)

Ⅲ．Cash flows from financing activities
Net cash provided by (used in) financing activities−

Ⅳ．Foreign exchange difference related to cash and cash equivalents(72)

Ⅴ．Net increase (decrease) in cash and cash equivalents

3,329

Ⅵ．Cash and cash equivalents at the beginning of the current year

12,494

Ⅶ．Cash and cash equivalents at the end of the current year

15,823(Notes)１．Amounts rounded to the nearest million.
２．Breakdown of cash at the end of the current year by line item of balance sheet.
(Millions of Yen)

Cash and cash equivalents
Balance of cash at the end of the current year

15,823
Total

15,823

Annual Report FY2015 | NEXI | 29

NotesⅠ．Important Accounting Principles

１．Accounting procedures for depreciation⑴Depreciation of tangible fixed assets

Depreciation of tangible fixed assets is calculated by adopting a straightline depreciation method. Useful life and residual values are calculated
based on the same methods and standards stipulated in the Corporation
Tax Act.

⑵Amortization of intangible fixed assets

Amortization of trademark rights is calculated using a straightline depreciation method where the residual value is set at JPY 0, in
accordance with the estimated useful life stipulated in the Corporation Tax
Act. Amortization of computer software for in-house use is calculated bya straight-line depreciation method where the usability period (5 years) isused as the estimated useful life and where the residual value is set at JPY 0.

２．Calculation of reserves for retirement allowances and estimates

To prepare for retirement allowance payments to board members andemployees, a reserve is provided based on 100% of the amount of
retirement allowances required by the rules for payment of retirement
allowances to board members and by such rules that apply to employees,
respectively. For the statement of administrative services costs,
estimated increases in retirement allowances with no reserves set aside
are computed by deducting “retirement allowance estimates at the endof the previous fiscal year for those who resigned” from the amountarrived at by deducting “the retirement allowance estimate at the end of
the previous fiscal year” from the “retirement allowance estimate at theend of the current fiscal year” for all employees at the end of the current
fiscal year.

３．Calculation of reserves for outstanding commitments,
outstanding claims reserves, receivables subrogated bypaying claims, and allowance for uncollectible receivables

Reserves for outstanding commitments, outstanding claims reserves,receivables subrogated by paying claims, and the allowance foruncollectible receivables related to receivables subrogated by paying
claims are dealt with by calculating the respective amounts in accordancewith the following ordinance: “Concerning the calculation methods
ordained by the Ministry of Economy, Trade and Industry, pursuant tothe articles of the ministerial ordinance with regard to the finance andaccounting of the Incorporated Administrative Agency Nippon Export andInvestment Insurance” (2001.03.27 Trade No. 2). Uncollectible receivables
other than receivables subrogated by paying claims are individuallyassessed for recoverability and the estimated amount of unrecoverable
claims is included in the reserves.

４．Calculation of accrued bonuses

Accrued bonuses for board members and employees are provided basedon the amount remaining in the fiscal year according to the rules forremuneration of board members and employees, respectively.

５．Valuation standards and methods for securities(1)Held-to-maturity securities are valued at amortized cost (using a straightline method.)(2)Other securities without market value are stated at cost using the moving
average cost method.

６．Valuation of foreign-currency receivables and payables

Foreign-currency receivables and payables are converted into Japanese
yen at fiscal year-end exchange rates.

７．Calculation of opportunity costs in the statement ofadministrative services costs

Based on the business circular titled “Matters to be considered in viewof the introduction of ʻQuantitative and Qualitative Monetary Easing
with a Negative Interest Rateʼ in the calculation of opportunity costs
under the accounting statement of cost for providing administrative
services in preparing the financial statements for FY2015”, dated April
1, 2016 (issued by the Ministry of Internal Affairs and Communications /Administrative Management Bureau and the Ministry of Finance / Budget
Bureau / Legal Division / Office for Public Accounts), the interest rateused for the calculation of opportunity costs relating to investments by
the government is 0%.

８．Accounting procedure of consumption tax

Consumption tax accounting is based on the “tax included” method.

９．Decommissioning liabilities

Restoration liabilities under the office lease have not been recorded as
decommissioning liabilities because it is impossible to make a fair andreasonable estimate of them due to the unspecified lease period and theabsence of any plans to vacate the currently leased office.

10．Changes to accounting principles

No major changes have been made to the accounting principles from theprevious fiscal year.

Ⅱ．Financial Instruments
１．Financial instruments

ａ.Management of financial instruments held by NEXI
NEXI is engaged in the trade and investment insurance business.
Recoveries of receivables subrogated by paying claims are invested in

30 | NEXI | Annual Report FY2015

securities to strengthen NEXIʼs financial base. The securities held by NEXI
include government, municipal, and government-backed bonds.
ｂ.Financial instruments and risk
Receivables subrogated by paying insurance claims are exposed to thecredit risk of debtor countries or debtors. Securities are exposed tointerest rate and market fluctuation risks.
ｃ.Financial instruments and risk management(1)Country risk management
In concluding insurance contracts (that could cause the acquisition ofreceivables subrogated by paying insurance claims), NEXIʼs Country Risk
Analysis Group conducts risk assessments by gathering information
through the Berne Union and OECD, as well as by researching andevaluating country risk.
(2)Credit risk management
For management of the credit risk of an export contract counterparty(overseas buyer), NEXIʼs Credit Administration Group conducts credit
check and assessment of overseas buyers.
(3)Market risk management
Market risk, such as interest rate and price fluctuations associated withinvestment in securities, is managed by the Fund Operation Meeting that
discusses NEXIʼs investment policies and checks investment statuses. In
addition, NEXIʼs Accounting Group, which is the secretariat of the Fund
Operation Meeting, monitors the bond market and liquidity risks.
d. Supplementary explanation regarding fair value of financial instruments
Fair value of financial instruments is based on quoted market price.
If the market price is not available, fair value is based on reasonably
assessed value. Fair value of financial instruments is measured basedon certain assumptions and might differ if measured based on different
assumptions.

２．Fair value of financial instruments

The carrying amount on the balance sheet, fair value, and differences asof the end of the fiscal year 2015 are as follows.
(Millions of Yen)

⑴Cash and cash equivalents⑵Securities
Held-to-maturity securities⑶Receivables subrogated by paying claims
Receivables subrogated by paying claims
Allowance for uncollectible receivables(＊)(Net)⑷Premiums receivable⑸Reinsurance credit
Assets⑹Amount due to the reinsurer
Liabilities

Carrying Amount
15,823

Fair Value Difference
15,823−353,600

414,625

61,025208,504(140,197)
68,307
6,999
2,851
447,580
6,699
6,699

68,307
6,999
2,851
508,605
6,699
6,699

−
−
−
61,025−−＊Allowance for uncollectible receivables associated with receivables
subrogated by paying claims is deducted.
(Note 1)Fair value measurement of financial instruments and securities(1)Cash and cash equivalents
For cash and cash equivalents, carrying amount is shown as fair valueof deposits, as these are settled within short periods of time and the fairvalue is almost equal to the carrying amount.
(2)Securities
・Fair value of securities is based on the quoted market value or value
quoted by financial institutions. The differences between carrying amountand fair value by type of held-to-maturity securities (in accordance withthe accounting standards for incorporated administrative agencies andnotes) are as follows.
(Millions of Yen)
Type of Securities Carrying Amount Fair Value Difference
Fair value >Carrying amountGovernment andmunicipal bonds

Fair value ≦Carrying amountGovernment andmunicipal bonds

Total

353,600

414,625

61,025−−−353,600

414,625

61,025・There were no held-to-maturity securities sold during Fiscal Year 2015.
⑶Receivables subrogated by paying claims
Regarding receivables subrogated by paying claims, allowance foruncollectible receivables is recorded pursuant to the ordinance“Concerning the calculation methods specified by the Ministry of
Economy, Trade and Industry, pursuant to the articles of the ministerial
ordinance with regard to the finance and accounting of the Incorporated
Administrative Agency Nippon Export and Investment Insurance”(2001/03/27 Trade No. 2).
①Allowance for uncollectible receivables associated with receivables
subrogated by paying political risk claims is calculated using a ratio thatis based on the valuation by the global financial market regarding therepayment prospects of each debtor country, or by using a given ratio.
②Allowance for uncollectible receivables associated with receivables
subrogated by paying commercial risk claims is calculated in two different
ways. For receivables from debtors that are actually or nearly bankrupt,
allowance is calculated by deducting foreclosure estimates and estimated2015 Financial Results

amounts recoverable under a payment guarantee. For receivables fromother debtors, allowance is obtained by calculating loss estimates basedon the present value of estimated future cash flow or estimated amounts
recoverable by foreclosure or under a payment guarantee. Fair value of
receivables subrogated by paying claims is equal to the carrying value
at the fiscal year end less allowance for uncollectible receivables, since itapproximates this net carrying amount.
⑷Premiums receivable,⑸Reinsurance credit, and⑹Amount due to the reinsurer
Carrying amount is shown as fair value for (4), (5), and (6), as these aresettled within short periods of time and the fair value is almost equal tothe carrying amount.
(Note 2) Expected payment and redemption amount of money claims
and securities with maturity after the fiscal year end(Millions of Yen)
1 yearor lessMore than More than More than More thanUndeterMore than
1 year to 3 years to 5 years to 10 years tomined
20 years
3 years
5 years 10 years 20 years(＊)

15,00026,500−13,011

17,65828,011

44,158

Securities
Held-to-maturity
securities
Receivables
subrogated bypaying claims
Total

54,700 251,900−−

66,41941,703

16,510−53,203

66,41996,403 268,410−

53,203

Ⅲ．Notes on retirement benefit plans
１．Overview of retirement benefits

At NEXI, an unfunded lump-sum retirement allowance plan is adopted
for the payment of retirement allowances to its employees. Under thesaid plan, employees receive a lump-sum retirement allowance based on
his/her salary and length of service, where the retirement allowance andretirement benefits are calculated using the simplified method.

２．Defined retirement benefit plans⑴Reconciliation between beginning balance and ending balance in a planusing the simplified method
Beginning balance of reserve for retirement allowance
488 million Yen
Retirement benefit expenses
81 million Yen
Amount of retirement benefits paid(13) million Yen
Ending balance of reserve for retirement allowance
557 million Yen⑵Profit and loss relating to retirement benefit plan
Retirement benefit expenses calculated under the simplified method 81 million Yen

Ⅳ．Multi-year Obligations

No major multi-year obligations are present.

Ⅴ．Subsequent Events

There were no significant subsequent events.

(＊)Receivables subrogated by paying claims that are in arrears are classified
as “Undetermined.”

Ⅵ．Account Titles Used by NEXI
⑴ Balance Sheet

Account title

Description

Receivables subrogatedby paying claims

Total assets of receivables subrogated by NEXIʼs paying claims and the estimated amounts of potential subrogated receivables (recorded
as assets with outstanding claims reserves being reported).

Accrued income

Total accrued interest on securities and receivables subrogated by paying claims (receivables subrogated by paying political risk
claims) as of the end of the fiscal year.
For receivables subrogated by paying political risk claims, accrued interest is included if the receivables are deemed collectible.

Premiums receivable

Premiums receivable associated with insurance applications.

Reinsurance credit

Amounts receivable from the government, such as reinsurance claims.

Outstanding claims
reserves

Amounts considered necessary in the future under insurance contracts to cover incurred losses or losses recognized as having been
incurred as of the end of the fiscal year, and recorded based on the ordinance “Concerning the calculation methods ordained by the
Ministry of Economy, Trade and Industry, pursuant to the articles of the ministerial ordinance with regard to the finance and accountingof the Incorporated Administrative Agency Nippon Export and Investment Insurance” (2001/03/27 Trade No. 2)

Reserves for outstanding
commitments

Amounts reserved to prepare for possible future claim payments under insurance and reinsurance contracts are recorded based on
the ordinance “Concerning the calculation methods ordained by the Ministry of Economy, Trade and Industry, pursuant to the articlesof the ministerial ordinance with regard to the finance and accounting of the Incorporated Administrative Agency Nippon Export andInvestment Insurance” (2001/03/27 Trade No. 2)

Amount due to the reinsurer

Amounts payable to the government, such as reinsurance premiums.

Allowance for uncollectible
receivables

Amount of receivables subrogated by paying claims after deduction of recoveries that should be paid to the insured.

Advance insurance premium

Insurance premium received with NEXIʼs obligation beginning from the next fiscal year or later.

Capital surplus

The valuation difference of an in-kind contribution of receivables acquired by government subrogation.
○Valuation difference of receivables subrogated by paying claims
Valuation difference of receivables acquired by subrogation and contributed in-kind by the government (excluding accrued income) was
included in capital surplus (for the fiscal years ended March 2003, 2004, and 2005), in accordance with an ordinance concerning a partial
revision of the Ordinance of Finance and Accounting (Ministry of Economy, Trade and Industry Ordinance No. 49 of March 31, 2003).
○Valuation difference associated with capitalization
Since the fiscal year ended March 2006 (FY2005), receivables acquired by subrogation and contributed in-kind by the government thatwere capitalized and evaluated for the first time are included in the capital surplus, in accordance with an ordinance concerning a partial
revision of the Ordinance of Finance and Accounting (Ministry of Economy, Trade and Industry Ordinance No. 100 of October 28, 2005).

⑵ Statement of Income
Account title

Description

Net premium written

Amounts calculated by deducting paid reinsurance premiums from premiums written. Premiums written include premiums received from foreign ECAs.

Reversal of outstanding
claims provision

Reversal of outstanding claims provision for the current fiscal year.

Net claims paid

Amounts calculated by deducting reinsurance claims recovered from paid insurance claims.

Estimated amount of
insurance claims recovery

Valuation gains or losses of receivables subrogated by paying insurance claims.

Provision for outstanding
commitments reserves

Provision for outstanding commitments reserves for the current fiscal year.

Extraordinary income

Interest income and reversal of provisions for uncollectible receivables relating to assets invested by the government (receivables
subrogated by paying claims).

Extraordinary loss

Recovery and other expenses relating to government-invested assets (receivables subrogated by paying claims).

Ⅶ．Other Accounting Information Necessary to Understand NEXIʼs Current Situation

The “Act for Partial Revision to the Trade and Investment Insurance Act and the Act on Special Accounts” was established on July 17, 2015, and, in accordance withthe revised act, the Special Account for Trade Reinsurance shall be abolished as of March 31, 2017. Also, the Incorporated Administrative Agency Nippon Export andInvestment Insurance (NEXI) shall be dissolved as of April 1, 2017 to be established into a new corporation under the financing of the Japanese government and NEXI and,by means of succession, transfer all assets and debts of NEXI to the new corporation.

Annual Report FY2015 | NEXI | 31

Fourth-Term Objectives
NEXI has set its medium-term objectives for the fourth term of FY2012 to FY2016 and will implement
measures and policies based on these objectives.
Following the passage of the Revised Trade and Investment Insurance Act in July 2015, NEXI will becomea special company in April 2017 to achieve greater effectiveness and flexibility of management andintegrate its service more closely with the government's policy direction. NEXI will be required to improveand expand the trade insurance business, as well as reinforce the operating framework of the insurance
approval process and risk management, in order to strengthen the competitiveness of Japanesecompanies and enhance customer convenience.
Considering that trade insurance is financed by premiums from customers without recourse to government
subsidies, NEXI will work to achieve a truly efficient and effective management style based on the costbenefit relationship between the insurance businessʼs income and its operating and personnel costs.

Outline of the fourth-term objectives￨

1

Measures to improve the quality of NEXIʼs services
and other operations

Product improvement￨

Our actions will be in response to the Japanese trade and industry policy while proactively addressing customer needs in thechanging business environment. Our products will aim at providing high quality services equivalent with other countries to secure theinternational competitiveness of Japanese companies.

Improvement of services

By adopting a “customer perspective” at all times, every effort will be put into improving services and building relationships of trustwith our customers.

System streamlining to reinforce risk management and ensure fair operation

We will streamline the system by developing human resources to reinforce management of risks and claims assessment, as well asinternal controls and compliance.

Emphasizing strategic priority policy issues

In light of our role as the public institution responsible for developing Japanʼs overseas trade, the requirements of the state policy on
trade, industry, and natural resources and energy must be considered. As such, we will take initiatives to address the policy issues set
forth in the medium-term objectives and expand the scope of underwriting in the relevant areas both qualitatively and quantitatively.
We will accordingly promote products and structures aimed at increasing the underwriting in these areas.

Smooth entry of private insurers into the market

It is our continuous endeavor to improve the diversity of our products in order to provide variety to our customers, as well as establish
an environment resulting in an increase in the business opportunities for private insurers.

32 | NEXI | Annual Report FY2015

Fourth-Term Objectives￨

2

Improvement in business efﬁciency

Promotion of efficient business operations￨

NEXIʼs trade insurance system is being operated independently, without subsidy from the government, with its sole source of revenue
being the insurance premiums received from insurance users. Therefore, when making disbursements, we will be thoroughly costconscious and fully consider cost-effectiveness in order to improve the efficiency of our business operations.
① In accordance with the medium-term objectives, we will make necessary improvements toward more advanced risk analysis andassessment, along with improving publicity activities. At the same time, necessary actions to improve operational efficiency such as
rationalization of the operating process, enhancement of staff abilities, and promotion of outsourcing will be undertaken. Also, as
needed, the structure of the organization and personnel assignments will be revised according to the workload. Necessary steps will
be undertaken to increase cost-effectiveness in all areas, including personnel expenses, by carefully evaluating the appropriatenessof each expenditure, by using cheaper sourcing, and by efficient usage of the operating expenses.
②Based on the incorporated administrative agency reform, we will take into account the government employeesʼ pay scales and curb
our overall personnel expenditures. By revising ability-based benefits and other benefits while maintaining necessary staff expertisein areas such as international financing, we will appropriately decrease the Laspeyres Index.
③ In principle, NEXIʼs entrance into new procurement contracts will be based on competitive procurement processes such ascompetitive tendering. Non-competitive bidding or application will be avoided as much as possible, and will try to steadily implement
reforms based on a “program for reviewing no-bid contracts.”④ We will seek to promote the efficiency of operations by outsourcing part of our office work and business operations to private
financial institutions, etc.

Efficient development and smooth operation of the information system

In response to organizational reform toward a new company setup, we aim at adapting our information system to new accounting/tax
systems, a new contingency plan, and new product development and marketing. Monitoring of credit management to ensure that it
will not be adversely affected by the abolishment of the special account related to the governmentʼs reinsurance will be undertaken.
We aim at the realization of efficient operations and improved services through prompt maintenance and upgradation of the fourthterm information system. In order to measure our progress, we will report the tangible results of the fourth-term information system
and attempt to bring the fourth-term maintenance cost lower than the third term.

￨

3

Improvement in composition of ﬁnances

Financial base reinforcement￨

In order to continuously and stably offer our customers “assured peace of mind,” we ensure the maintenance of a sound financial
foundation. In concrete terms, we will improve the efficiency of business operations and hold down expenditures by thorough risk
management. In addition, we will set up an appropriate insurance premium charge system and reinforce appropriate management andrecovery of debts incurred by insured risks in order to secure a steady revenue stream.

Reinforcement of credit management and debt recovery

We will strengthen our recovery capacity through meticulous management of credit data, close coordination with relevant
governmental organizations, cultivating staff expertise, and utilizing servicers. Further, we will strive to prevent the occurrenceof insured risk and to alleviate any loss by swiftly implementing necessary measures in cooperation with customers and relevant
governmental organizations.

Clear and transparent standards for setting and reserving premiums

In accordance with the decision to abolish the trade reinsurance special account and to reform incorporated administrative agencies,
we will work toward reviewing our accounting rules and operations. By developing clearer and more transparent standards for setting
and reserving premiums, we will ensure added transparency in accounting.

￨4

Responding to the new system based on the administrative reform￨

We will ensure a smooth transition to a new special company wholly owned by the government without the trade reinsurance special
account. This will include a quick implementation of necessary measures such as strengthened risk management and internal
controls.

￨

5

Fostering personnel with high degree of expertise￨

As an expert organization providing quality services that meet customersʼ needs, we will implement an improved personnel system
and raise the expertise level of our staff through a more comprehensive in-service training system and place a high priority on thedevelopment of expertise. We will also continue to recruit staff members with expertise in fields such as international financing, thelegal system, country risks, business finance, and trade.

Annual Report FY2015 | NEXI | 33

Customer Service Charter
Ⅰ NEXI Spirit

or on the following business day at the latest. (For medium⑴ Our mission is to help customers to conduct international

within five business days.) If the relevant group in charge finds

business with a sense of reassurance by reducing incidental

it difficult to respond to your inquiry within the specified timebusiness risks. To this end, we take time to ascer tain our

limits, it will promptly provide notification to that effect alongor long-term non-L/G transactions, however, we will respondcustomersʼ situations so that we can meet their needs precisely

with the reason for the delay and the expected date of response.

and prov ide ef f icient and high - qualit y ser v ices , t hereby③ Should the relevant group in charge find any inadequacy inenhancing customer satisfaction and establishing mutual trust.

a pre-application form, insurance application form, or other⑵By implementing our customer-first policy, we will continue to:form that you have submitted (other than environment-related① Improve the quality ofservice,② Broaden the range of risk
coverage,

forms), we will notify you within five business days of its
receipt at the latest.
④If you have any questions about NEXIʼs insurance system withregard to a specific project, please inform the relevant group③ Promote efficientin charge or the Customer Relations Desk. We will respondoperations, andwithin five business days at the latest. Should we find it④ Increase managementtransparency.

difficult to respond within the stated period, we will promptly
notify you to that effect with the reason for the delay and the
expected date of response.

Ⅱ NEXIʼs Pledge to Customers
We are committed to:⑴ Providing insurance products that make our customers feelsecure and protected when conducting overseas transactions⑵Providing advice to our customers from the preliminary stageof planning⑶ Promptly responding to inquiries and acting in the interestsof our customers⑷Meeting our customersʼ demands and business needs⑸ Promptly completing assessment and payment of insurance
claims, and⑹Promptly allocating recoveries⑴ Providing insurance products that make our customers feelsecure and protected when conducting overseas transactions① If you suspect that your international transactions, including
exports, foreign investments, or overseas loans, may incurrisk, please visit our website (http://www.nexi.go.jp) and go to
the insurance product section, or contact NEXIʼs Customer
Relations Desk.
②We can send our staff to your office upon request to provide
further information on our insurance products that support
and protect your international business. Please feel free tocontact us.
⑵Providing advice to our customers from the preliminary stage ofplanning
If you plan to initiate international transactions, such as exports
or overseas investments, we here at NEXI are ready to serveyou. We will be pleased to talk with you at an early stage of yourprojectʼs formation and propose the most appropriate insurance
products to minimize any risk involved.
⑶ Promptly responding to inquiries and acting in the interests ofour customers① If you have any questions about our insurance products,
please call or email our Customer Relations Desk or the
relevant group in charge.
②Our premium calculator is available for use on the NEXI website
to estimate your insurance premium. If you give us information
on your planned transaction, the relevant group in charge cangenerally estimate the premium on the same day of your inquiry,

34 | NEXI | Annual Report FY2015⑷Meeting our customersʼ demands and business needs①We would be very appreciative if you could give us sufficient time
when consulting with us, as our assessment may take longer than
expected. If it becomes necessary to accelerate procedures (forexample, because an export contract is proceeding more rapidly
than anticipated), please inform us of such circumstances.
② Your business needs are always important to us and we will
do our utmost to meet your accelerated deadline. If we find it
difficult to meet the new deadline, we will immediately inform youof how long it will take to complete the necessary procedures.
⑸Promptly completing the assessment and payment of insurance claims① As soon as we receive an insurance claim form, we willassess the details in light of the insurance policy provisions
to determine the amount of the claim to be paid. We willthen make a payment within the stipulated timeframe. This is
generally within two months of receipt of the claim; however,in a situation where more time is required for assessment, thisrule will not apply. For an application for insurance claims, we
may request that you execute the obligations of notificationand of loss prevention and reduction that are stipulated insuch documents as insurance policy provisions. In addition,
we may also request that you submit all necessary documents
stipulated in the insurance policy provisions and otherregulations within a specified period of time.
②In the event that an inadequacy is found in a submitted claim
form or other document in light of insurance policy provisions
or other regulations, we will notify you no later than threebusiness days after receiving the document.
③ We would appreciate your understanding and cooperation,
including early submission of documents necessar y forassessment, so that we may pay claims within the period
stipulated in the insurance policy provisions or other regulations.
⑹Promptly allocating recoveries① When all or part of a subrogated claim is recovered, we willpromptly allocate the recovery in accordance with insurance
policy provisions and other contracts.
② In allocating a recovery in accordance with a Paris Club debt
rescheduling program or other program, we will, in principle,
complete procedures of remittance to your accounts by thebusiness day following confirmation of receipt of the fullamount in NEXIʼs account.

Customer Service Charter

Ⅲ Information

Ⅳ Your Comments and Complaints

A range of information is available on our website (http://www.

Enhancing customer satisfaction is our constant aim. If you

nexi.go.jp) and in our annual report. The website was renewed inexperience difficulty with any procedure or have a complaint about

May 2015 to achieve better usability.

our services, please do not hesitate to contact us. Your problem⑴ Please visit our website for comprehensive information on our

will be addressed promptly.

insurance products and services.
The NEXI website includes the following information①Recent developments (including changes in systems, coverage
conditions, and recent underwritten projects)⑴ We will do whatever is necessary to resolve any problem you
may encounter. Please provide us with the details of the problem
and what you wish to be done. We will immediately find the②Descriptions of our insurance products (pamphlets are available)③Terms of coverage by country/region

source of the problem and resolve it.
⑵If you have any complaints about our services or our handling of④Insurance application procedures

your project, please inform the Customer Relations Desk.

⑤Insured events and subsequent procedures① For any complaints about our services, please provide the⑥Premium calculator

details to the Customer Relations Desk in writing or via email.

⑦Downloadable application forms

The Customer Relations Desk will examine your problem and⑧ Rules concerning trade insurance (including insurance policy

inform you of how it will be dealt with. If it is difficult for us

provisions for all of NEXIʼs insurance products)⑨Environmental considerations

to take immediate action, we will provide the reason for thedifficulty and how we intend to proceed.

⑩Procurement information② If you have any complaint about our handling of a specific⑪Web magazine “e-NEXI”

project, please provide the details to the Customer Relations⑫WEB service

Desk in writing or via email. The Customer Relations Desk will

⑬Careers

review the details and provide the results of its review without⑭Compliance contact

delay. If immediate action cannot be taken, the Customer⑵Our annual report (in Japanese and English) offers the results ofour trade insurance business and our financial statements.

Relations Desk will inform you of the reason and when the
problem will be resolved.

O ther publications are also available, including the NE XI
corporate brochure and leaflets on our insurance products (inlimited quantities). Please feel free to call the Planning Office(Phone: 81-(0)3-3512-7665) or the Customer Relations Desk.
⑶ For inquiries regarding our website and annual report, pleasecontact the Planning Office.
(Phone: 81-(0)3-3512-7665)

Customer Relations Desk
⑴NEXI has established a ＂Customer Relations Desk＂ to provide more efficient services to our customers in accordancewith our customer-first policy.
⑵The Customer Relations Desk offers customer support by viewing situations from the customerʼs viewpoint. Any inquiriesor requests concerning trade insurance and specific projects are appreciated. We will take prompt action with regard tosuch matters. Information about NEXIʼs sections and relevant groups in charge is also available on our website.

URL : https://www.nexi.go.jp/inquiry/en/
From 9:00 AM to 12 PM and from 1:00 PM to 5:30 PM, Monday through Friday(Excluding public holidays and year-end and New Year holidays)

Annual Report FY2015 | NEXI | 35

Proﬁle of NEXIMembers of the Board and the Audit Board (As of July 2016)■ Chairman
and CEO

Kazuhiko Bando■ ViceChairman

Tetsuya Koizumi

Satoru Koyama

Takeshi Oiwa (Full Time)

Yuri Okina (Part Time)■ Corporate
Auditor36 | NEXI | Annual Report FY2015

Tadaharu UeharaProﬁle of NEXI

Name

Incorporated Administrative Agency, Nippon Export and Investment Insurance ("NEXI")

Date of Establishment

April 1, 2001

Acts

Act on General Rules for Incorporated Administrative Agency
Trade and Investment Insurance Act

PurposeTo efficiently and effectively conduct insurance business of covering risks whicharise in foreign transactions and which are not covered by commercial insurance.

Competent Minister

The Minister of Economy, Trade and Industry

CapitalJPY 169.4 billion (Fully contributed by the Japanese Government)

Number of Full-time
Employees

152 (As of April 1, 2016)

Scope of Business1. To conduct trade and investment insurance business operations complying with theregulations of Chapter 3 of the Trade and Investment Insurance Act.
2. To conduct business which is incidental to the business stated in 1.
3. To underwrite reinsurance under the insurance obligations of international institutions,foreign governments, or international companies that conduct insurance business(including reinsurance) which indemnifies losses similar to the losses covered by tradeand investment insurance.
4. To entrust reinsurance for the insurance obligation of NEXI under the Trade andInvestment Insurance Act to international institutions, foreign governments, orinternational companies that conduct insurance business (including reinsurance) whichindemnifies losses similar to the losses covered by trade insurance as well as thereinsurance with the Government complying with the regulations of Chapter 4 of theTrade and Investment Insurance Act.

Brief History

Jul.1999 Enactment of Act on General Rules for Incorporated Administrative Agency
Dec.1999 Enactment of the Act which partly amended the Trade and Investment Insurance Act
Apr. 2001 Establishment of Nippon Export and Investment Insurance(For reference)The Trade and Investment Insurance Act was enacted in March 1950 andthereafter trade and investment insurance was managed by the Ministry of Economy, Trade andIndustry (former Ministry of International Trade and Industry) until the end of March 2001.

OfficeHead Office
Chiyoda First Building, East Wing 3rd Floor, 3-8-1 Nishikanda, Chiyoda-ku,
Tokyo, 101-8359 Japan
Phone: 81-(0) 3-3512-7650 Fax: 81-(0) 3-3512-7660
Osaka Branch
Aioi Nissay Dowa Insurance Yodoyabashi Building 8th Floor,
3-1-22 Kitahama, Chuo-ku, Osaka City,
Osaka, 541-0041 Japan
Phone: 81-(0) 6-6233-4019 Fax: 81-(0) 6-6233-4001
Overseas Offices
NEXI Paris, NEXI New York, and NEXI Singapore (See page 39.)

Main Insurance Products

Export Credit Insurance / Buyer's Credit Insurance / Trade Insurance for Standing Orders
from Specific Buyer / Export Credit Insurance for SMEs and AFF Sector ＊ / Intellectual
Property License Insurance / Overseas Untied Loan Insurance / Overseas Investment
Insurance / Export Bill Insurance / Prepayment Import Insurance / Investment and Loan
Insurance for Natural Resources and Energy / Trade and Investment Insurance forPreventing Global Warming / Comprehensive Export Insurance with Simplified Procedure

URL

http://www.nexi.go.jp＊Since July 4, 2016, Export Credit Insurance for SMEs is referred to as Export Credit Insurance for SMEs and AFF Sector.

Annual Report FY2015 | NEXI | 37

Organizational Chart(as of January, 2017)

Chairman and CEO

Planning and
Administration
Department

General Management and Public Relations Group
Personnel Group
Procurement and Administration Group
Treasury Group

Vice Chairman

Policy Contract Group

Planning OfficePlanning Group
Policy Strategy and Legal Group

Corporate Governance
Department
Counselor

Examiner
Secretariat

Audit GroupAccounting Group

Business Process
and IT
Management Office
AuditorRisk Management Group

Business Process Management Group
Information System Group
Project Management Group

Underwriting
Depar tment

Customer Support Group
Customer Relations Desk
SMEs Support Desk
Comprehensive Insurance Group
Overseas Investment Insurance Underwriting Group
Reinsurance Underwriting Group

Structured and Trade
Finance Insurance
Department

Management GroupPower Group
Natural Resources Group Ⅰ
Natural Resources Group Ⅱ
Infrastructure Group

Asset Management
Department

Claims Service Group

Credit Department

Credit Analysis Group

Recovery Group

Environment GroupCountry Risk Analysis Group
Credit Administration Group

NEXI, Osaka

Underwriting Group
Customer Relations Desk

Overseas Offices

NEXI, Paris
NEXI, New YorkNEXI, Singapore

38 | NEXI | Annual Report FY2015

Proﬁle of NEXI

Contact Information
Head Ofﬁce

Osaka Branch
Aioi Nissay Dowa Insurance
Yodoyabashi Building 8th Floor,
3-1-22 Kitahama, Chuou-ku,
Osaka City,
Osaka 541-0041, Japan
Phone: 81-(0)6-6233-4019
Fax: 81-(0)6-6233-4001

Chiyoda First Building,
East Wing 3rd Floor, 3-8-1
Nishikanda,Chiyoda-ku,
Tokyo 101-8359, Japan
Phone: 81-(0)3-3512-7650
Fax: 81-(0)3-3512-7660
Suidobashi Sta.

JR Suidobashi Sta.

Nippon Bank

NEXI,Osaka

SUBWAY Jinbocho Sta.

a Sta.
Kudanshit

45th Street
44th Street

Madison Avenue

46th Street

Fifth Avenue

47th Street NEXI NY

GrandCentralTerminal

43th Street

Penn Station
Port Authority 42th Street

Park Avenue

B.D.F.M 47-50 street/6th Avenue
Rockefeller
Center
48th Street

Vanderbilt Avenue

Overseas Ofﬁces

4.5.6 42street/Lexington

B.D.F.M 42 street/6th Avenue 7 42street/5th Avenue

NEXI, Paris

NEXI, New Yorkc/o JETRO 27 rue de Berri 75008 Paris France
Phone: 33-(0)1-4261-5879 Fax: 33-(0)1-4261-5049

c/o JETRO 565 Fifth Avenue, 4th Floor, New York,NY 10017 USA
Phone: 1-212-819-7769 Fax: 1-212-997-0464

NEXI, Singapore
NEXI Singapore

c/o JETRO 16 Rafﬂes Quay #38-05, Hong Leong Bldg.
Singapore 048581
Phone: 65-6429-9582 Fax: 65-6220-7242

Annual Report FY2015 | NEXI | 39

Nippon Export and Investment Insurance
http://www.nexi.go.jp

Head Office

Inquiries

Chiyoda First Building, East Wing 3rd Floor, 3-8-1

Planning Office

Nishikanda, Chiyoda-ku, Tokyo 101-8359, Japan

Phone : 81-(0)3-3512-7665

Phone : 81-(0)3-3512-7650

E-mail : info@nexi.go.jp

Fax : 81-(0)3-3512-7660

Fax : 81-(0)3-3512-7688