About NEXI
Since its establishment in April 2001, Nippon Export and Investment Insurance (NEXI) has
been providing export and investment insurance to protect Japanese businesses fromrisks involved in overseas transactions that cannot be covered by private-sector
insurance. We provide reassurance and support to Japanese companies by anticipatingchanges in the market at all times, appropriately responding to customer needs, andeﬃciently and eﬀectively conducting insurance business so that they may engage ininternational transactions with peace of mind and without fear of uncertain risks.

By implementing our customer-ﬁrst policy,
NEXI will continue to:(i) Improve the quality of our service;(ii) Broaden the range of risk coverage;(iii) Promote eﬃcient operations; and(iv) Increase management transparency.

CONTENTS
2

Message from the Chairman

21

2013 Financial Results

32013 Performance Highlights

27

Fourth-Term Objectives

9

2013 Business Overview

29

Customer Service Charter

13

Underwritten Projects

31

Profile of NEXI

17

Review of Performance

Regarding figures in this Annual Report1

In principle, figures in this report are rounded to the nearest unit. Therefore, the sum of individual figures
may deviate from the sum presented.
Figures that fall below a unit as a result of rounding are indicated as “0”; if there is no corresponding figure,“-” is indicated.
Figures in the trade and investment insurance business are on a fiscal period basis unless otherwise noted.

Message from the Chairman
I have pleasure in presenting this annual report of Nippon Export and Investment
Insurance (NEXI) for the year ended 31 March 2014, and I am truly grateful for yoursupport and cooperation for NEXI throughout the year.
In FY2013, as the world economy began to inch toward recovery, Japanesebusinesses increased their presence in the global market, helped by a weaker yen andan effect of the government’s economic policies known as “Abenomics.” Also, thegrowing demand for infrastructure development in emerging countries promptedJapanese businesses to accelerate their participation in large-scale infrastructure
projects abroad. They did so with some support by the Japanese government toencourage infrastructure exports including the announcement of the “Strategy for
Exporting Infrastructure Systems” at the Ministerial Meeting on Strategy relating toInfrastructure Export and Economic Cooperation. During this fiscal year, NEXI wascommitted to further enhancing the competitiveness of Japanese businesses in the
global market by providing insurance for various projects that include Vietnam’s NghiSon Oil Refinery and Petrochemicals Complex Project, the third-largest insurance
project for NEXI, and a number of power plant construction and operation projects.
Since its establishment in 2001, NEXI has been seeking to improve insurance
products and services by implementing a customer-first policy. In FY2013, various steps
were taken to make our effective trade insurance products available to morecustomers. For instance, we enhanced the insurance coverage for loans andinvestments, took measures to reduce significant impacts of the downgrading of acountry’s category, and streamlined and simplified documents to be submitted by thecustomers.
In accordance with the cabinet decision in December 2013 regarding the basic
policy on the reform of incorporated administrative agencies, NEXI is to make thetransition to a special company wholly owned by the government, and the tradereinsurance special account will be abolished. While NEXI is expected to prepare for atransition to a special company, the Japanese government will maintain its involvement
and continue to support NEXI insurance based on the credibility of the government.
To survive against the international competition in the evolving global economy,
public and private sectors must work together. NEXI will continue to provide quality
insurance services that meet diverse business needs.
We would appreciate your continued understanding and support.

Kazuhiko Bando
Chairman and CEO
June 20142

2013 Performance Highlights
Economic Trends
Japanese exports in FY2013 rebounded to about JPY 70.9 trillion (up 10.8% from the previous fiscal year) after
two consecutive years of decline, with rising exports of cars and chemical goods such as organic compounds. By
region, exports to Asia reached about JPY 38.4 trillion (up 10.0% yoy), of which China accounted for about JPY
13.0 trillion, an increase of 14.6% from the previous fiscal year. Exports to the U.S. increased to about JPY 13.2
trillion (by 15.9% yoy) and exports to the EU also increased by 13.2% year-on-year to about JPY 7.2 trillion.
（Japan's exports）
Total Exports
Year-on-year change(%)（Millions of yen）
FY2008FY2009FY2010FY2011FY2012FY2013

71,145,593

59,007,879

67,788,838

65,288,487

63,939,981

70,857,363（16.4）（17.1）

14.9

（3.7）

（2.1）

10.8

（Source: Trade Statistics, Ministry of Finance）

Trends of the Trade and Investment Insurance Program

300

200

100

0

-100

Outstanding Borrowings
JPY 0 billion
Peak of Insurance
Claims Payments
JPY 341.9 billion

-200

-300

Premium income
Recoveries and other income
Claims paid
Outstanding borrowings at year-end

-400

-500

-600

Peak of Outstanding Borrowings
JPY 688.6 billion-700（Billions of yen）
Fiscal Year

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Premium 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
Recoveries andother income

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

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

Outstanding
borrowings at
year-end---- 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

Note: The amount is based on cash.

3

0

0

0

0

0

0

0

0

0

0

0

0

0

0

（Billions of yen）

2013 Performance Highlights

Underwritten AmountUnderwritten AmountThe total underwritten amount in FY2013 increased by 2.6% to about JPY 8.5 trillion compared to the previous
fiscal year.
（Fiscal Year）

2009

8.2

2010

8.6

2011

8.5
8.3

2012

8.5

2 013
0

3

6

9

12

Comprehensive Export
Insurance with Simpliﬁed
Procedure 0.3％

Underwritten Amount by Insurance Type

Reinsurance 1.3％

Looking at performance by type of insurance, the increase inexports to Asia and Europe boosted the underwritten amountof Export Credit Insurance by 11.3% year-on-year to JPY 6.8
trillion. On the other hand, Overseas Untied Loan Insurance
decreased by 48.4% to JPY 706 billion compared to theprevious fiscal year in which large-scale projects had been
underwritten.

Buyer's Credit Insurance 2.3％
Overseas Investment
Insurance 7.2％

（Trillions of yen）
Export Bill Insurance
0.2％
Trade Insurance forStanding Orders fromSpeciﬁc Buyer
0.1％

Overseas Untied Loan
Insurance 8.3％

Export Credit Insurance
80.4％

Underwritten Amount by Region

Oceania 2.8％

In terms of region, Asia accounted for JPY 4.7 trillion, or 51.1%of the total amount, followed by Europe and the Middle East by
11.7% and 10.1% respectively. The increases in these regions
are all due to an increase in Export Credit Insurance.

Africa 4.9％

International Organizations
1.7％

North America 3.6％

South America 6.2％
Central America 8.0％

Asia
51.1％

Middle East10.1％

Europe 11.7％

Top Ten Countries and Regions of Underwritten Amount in FY2013（Millions of yen）

Country/Region
PanamaUnderwritten amount Composition(%)

Country/Region

Underwritten amountComposition(%)

1

China

759,504

8.3

6(ﬂag of convenience vessel)

452,783

4.9

2

Vietnam

645,003

7.0

7Malaysia

351,111

3.8

3

Korea

551,147

6.0

8

Saudi Arabia

317,016

3.4

4

Thailand551,115

6.0

9

Taiwan305,939

3.3

5

Indonesia

516,958

5.6

10

U.S.A.

277,293

3.0

4

0

5

3

6

9

12

15

0

10

20

30

40

50

0

10

20

30

40

50
6

Insurance Claims Paid
Changes in claims paid
Claims paid in FY2013 amounted to about JPY 12.2 billion (up by 177.0% yoy).
This was because claims paid for large-scale projects due to commercial risk events increased compared to theprevious fiscal year, while claims paid due to political risk events remained more or less the same as the previous
year.
（Fiscal Year）

3.3

2009
2010

7.2
4.0

4.6

1.3

2011

Political Risk Events
Commercial Risk Events

7.0

2012 0.4

4.0

2 013 0.4

11.8

0

5

10

15

20

（Billions of yen）

Insurance Claims Paid（by Region）
The amount of claims paid for the Middle East was the largest at about JPY 9.5 billion or 77.9% of the total amount,largely due to a commercial risk event concerning exports to Saudi Arabia.

Political/Commercial Risk
Central America 0.6％

Political Risk

Commercial Risk

North America
0.1％

Central America 0.6％

North America 0.1％

Asia 7.1％

Asia 6.9％
Europe14.5％

Europe15.1％

Middle East100％

Middle East
77.9％

Middle East
77.1％

Top Five Countries/Regions in Terms of Insurance Claims Paid
（Millions of yen）

Country/Region

7

Total

Political Risk

Commercial Risk

0

9,096

1

Saudi Arabia

9,096

2

Ukraine

1,723

0

1,723

3

Iran

436

436

0

4

Indonesia

399

0

399

5

Korea

256

0

256

2013 Performance Highlights

Insured Events in FY2013 （Based on the data as of May 15, 2014）■Insured Events by Risk Year-on-Year Change

Political and commercial risk events collectively totaled JPY 30 billion (668 events) in reported insured
losses in FY2013. Commercial risk events dropped by value on a year-on-year basis, reflecting the steadyrecovery from the financial crisis, while political risk events remained more or less unchanged due to theoccurrence of insured events in South America.
Claims payment in FY2013 amounted to JPY 12.23 billion (386 events). Insured events fell in number while
claims paid showed a year-on-year increase due to large claim payouts for an insured event of alarge-scale project which occurred in the past fiscal year.
（Millions of yen）

Type of Risks

AmountNumber
Occurrence
AmountCommercial Risk Eventsof Events
NumberAmount Total
Number Total
AmountPolitical Risk Events
NumberAmountClaims Paid Commercial Risk Events
NumberAmount Total
Number Total
Political Risk Events

FY2011
11,33399
3,974
133
15,307
232
1,342
15
7,017
34
8,359
49

FY2012
23,303522
16,262
201
39,565
723
424
2
3,993
57
4,416
59

FY201322,522
438
7,448
230
29,970668
436
911,798377
12,234386

Year-on-Year Change (%)

96.6%
83.9%
45.8%
114.4%
75.7%
92.4%
102.8%
450.0%
295.5%
661.4%
277.0%
654.2%

Note : The number and amount of insured events are based on Notice of Occurrence of Insured Risk and Notice of
Occurrence of Losses received during each fiscal year.

Changes in Amount of Insured Events and Claims Paid (FY2011 - FY2013)
Political Risk Events（Millions of yen）

Occurrence of Events
Claims Paid

11,333

2011

Commercial Risk Events

1,342

2013

22,522

436

0

7,017

16,262

2012

424

3,993
7,448

2013

10,000 20,000 30,000 40,000 50,000

Occurrence of Events
Claims Paid

3,974

2011

23,3032012（Millions of yen）

11,7980

10,00020,000■Occurrence of Insured Events by Region
Of all political risk events, 90% occurred in South America in FY2013 and the remaining 10% occurredin Africa and Asia (including the Middle East). These events were mainly associated with a“restriction of currency exchanges” in South America, a “delay in remitting foreign currency” inAfrica, and “economic sanctions” in Asia (including the Middle East).

Amount of Insured Events by Region (FY2013)
Political Risk Events
25,0003,500

20,06720,000

2,500
2,000

10,0000（Millions of yen）

3,103

3,000

15,0005,000

Commercial Risk Events（Millions of yen）

2,310

1,854

1,500
395

Asia

8

0

2,051

Europe North and South
AfricaCentral America
America

1,000
0Oceania

500
0

50

Asia

131

Europe North and South
AfricaCentral America
America0

Oceania8

2013 Business Overview
Promoting support
for strategic priority
sectors

Supporting infrastructure exports

In May 2013, the Cabinet approved the “Strategy
for Exporting Infrastructure Systems” to address
global infrastructure needs especially in emerging
markets. Under this strategy, the public and private
sectors jointly work for diversified businessdevelopments including promoting exports ofinfrastructure systems that incorporate design,
construction, operation and management, andexpanding business investments, which are
expected to lead to strong Japanese economic
growth.
To support this strategy, NEXI has strengthened
measures to mitigate local currency exchange risk,
and raised the percentage of cover for co-financing
with the Japan Bank for International Cooperation(JBIC). In FY2013 NEXI actively promoted export
projects of infrastructure systems such as the
NPTC power plant project in India and the SEC
heavy-oil-fired power plant project in Saudi Arabia.

Helping secure a stable supply ofnatural resources and energy

For Japan, an important policy continues to be thesecurement of a stable supply of mineral andenergy resources. NEXI has been providing strong
support for projects that contribute to resource
off-take and stake acquisition. In FY2013, NEXI
provided Overseas Investment Insurance for the
first time for a project in Angola called the Block 14
Development Project, the first oil stake acquisition
project in Africa, and Overseas Untied Loan
Insurance to support loans for the Roy Hill iron ore
mining project.

Photograph courtesy of Roy Hill Holdings Pty Ltd
9Support for aircraft sector

NEXI is continuing its active support forinternational joint development projects of Boeing
aircraft in which Japanese manufacturers are
participating. During FY2013, NEXI provided
reinsurance for financing of sales projects for 37
Boeing aircraft, and supported exports of aircraftcomponents manufactured by Japanese heavy
industrial manufacturers.

Support for ship sector

Since the financial crisis that began in 2008, theJapanese shipbuilding industry had faced a toughbusiness environment with steep falls in ship
demand, an appreciation of the yen, and increased
competitiveness of Korean and Chinese shipbuilders.
Since the end of 2012, however, the competitiveenvironment has been improving due to thecorrection of the strong yen. In FY2013, NEXI
supported seven ship export projects including
exports of ultra-high capacity seismic vessels to a
Petroleum Geo-Services ASA subsidiary of Norway
and bulk carriers to a Pacific Basin group company
of Hong Kong.

Strengthening support for Japanesebusinesses in emerging markets

NEXI is supporting Japanese business activities inhigh-risk emerging markets. In May 2013, on thesidelines of a Ministerial Meeting at the Fifth Tokyo
International Conference for African Development(TICAD V) held in Yokohama, NEXI eased its
underwriting policy for 19 African countries showing
political and economic improvement. As a result,
NEXI’s insurance support has become available to
Japanese businesses advancing into these African
markets in various fields including resource
exploitation and development of infrastructure forwhich demand has increased in recent years.
Regarding regions other than Africa, NEXI started
Overseas Investment Insurance coverage (capital
remittance risk) for projects in Myanmar, and also
restarted short-term insurance coverage fortransactions with Cuba. In addition, a letter of credit
requirement was removed from cover terms andconditions for ten countries including Myanmar,
Laos, Uzbekistan and Turkmenistan.

2013 Business Overview

Enhancing ties with overseasorganizations

MOC with EXIAR Russia

In April 2013, NEXI and Export Insurance
Agency of Russia (EXIAR) signed a Memorandumof Cooperation to cooperate in promoting trade andinvestment between Japan and Russia.
EXIAR has extensive knowledge about economic
situations and local businesses in East European
and CIS countries through its close ties with theseregions. Under the MOC, NEXI and EXIAR expect
to cooperate in providing insurance for exports toEast European and CIS countries by Japanesecompanies located in Russia, and insurance for
Russia‒Japan joint private-sector projects in theseregions.
Following the MOC signing, NEXI held a tradeinsurance seminar in June 2013 for Japanesecompanies aiming to enter the Russian market.

Bilateral meetings

BU autumn meeting

NEXI holds regular bilateral meetings with ECAs
and government officials of five countries̶Austria,
China, France, Germany and Korea. At themeetings, valuable information and honest views
are exchanged on a wide variety of topics such as
international financial situations and each country’s
activities. The meetings have helped NEXI further
strengthen these relations and keep on top of thetrends of the ECA business.

Photograph courtesy of Kyodo News

Berne Union meetings

The Berne Union (the International Union ofCredit and Investment Insurers) is a forum where
ECAs, international organizations, and private
insurers around the world discuss common issues
related to export credit insurance and investment
insurance from a technical viewpoint. Since the firstmeeting in 1934 in Berne, Switzerland, themembership has grown to 49 institutions in total asof April 2014.
The union holds regular biannual meetings: the2013 spring meeting was held in April in New Yorkand the autumn meeting was in October in Vienna.

Scene from a French‒Japanese bilateral meeting

Training program on trade insurance for
Asian ECA professional staff

The Ministry of Economy, Trade and Industry ofJapan and NEXI jointly hold a training seminarprogram for ECA and government staffers incountries with a trade insurance system in a
relatively developmental stage. In FY2013, ECAs
in eight countries/regions̶Brazil, China,
Indonesia, Myanmar, Taiwan, Thailand, Russia andVietnam̶were invited.
10Supporting SMEs’ overseas
business developments

Providing insurance products andservices to support exports

NEXI has been pro-active in responding to thechallenging international situation surrounding exports
through its initiatives, which widen the use of “Export
Credit Insurance for SMEs” developed exclusively for
SME exporters. As a result, NEXI underwrote 669
transactions in FY2013, up about 60% year-on-year.
In addition, as part of the initiatives to facilitate theuse of trade insurance, NEXI continued to provide afree buyer credit check service to support SMEs’
export businesses. NEXI also revised its application
forms and simplified procedures of trade insurance.

NEXI also offers consultation services, incooperation with the Japan External Trade
Organization (JETRO), Organization for Small &Medium Enterprises and Regional Innovation, Japan(SMJR) as well as export support organizations suchas local Chambers of Commerce, where issues likerisk management practices, including how to hedge
against the risks associated with exports andoverseas investments, can be discussed.

Improvement of products and services
to support overseas presence

In order to support SMEs’ overseas businessdevelopments, NEXI has been actively proposing
the use of “Overseas Investment Insurance” which
covers the risks associated with the construction ofplants and equity investments.
Furthermore, NEXI launched a new insurance
product called the “New Trade Credit Insurance(NTCI)” (NEXI’s inwards reinsurance) available in
the three regions of Hong Kong, Singapore andThailand in May 2013. This is a sort of fronting
scheme under which NEXI provides risk capacity
through the overseas subsidiaries of Japanese
insurers in these regions to support overseas
subsidiaries of Japanese SMEs having short-term
exports business towards third-country anddomestic transactions.

Enhancement of support systems for SMEs

In FY2013, NEXI newly entered into businessalliances and cooperative partnerships with 22
regional banks in total to further strengthen its
support for SMEs’ overseas business developments.
Accordingly, the “support network for SME’s
overseas business development” membership grew to
51 (business alliances with 49 regional banks andMOUs on cooperation with 2 regional banks).
Through this network, NEXI strives to increaseawareness of and the use of trade insurance.
In February 2014, NEXI held a support network
meeting for its members to share their experiences
and opinions.
11

Scene from a support network meeting for SMEs

Raising awareness among SMEs

To have SMEs more widely use trade insurance
for their risk management, first NEXI needs to raise
their awareness of it.
To this end, NEXI developed promotional tools
for the widespread use of trade insurance, such as
Country Risk Map and product brochures whichwere distributed on occasions such as the Small &Medium Enterprise Fair held in October 2013.
NEXI will continue with its dedicated efforts tobetter serve SMEs while assisting their overseas
business developments through both enhancing its
products, services and support system and raising
their awareness of and understanding of tradeinsurance.

Country Risk Map (February 2014 Edition)

2013 Business Overview

Creating sustainable societies

Environmental and Social
Considerations in Trade Insurance

NEXI is committed to following the internallyestablished “Guidelines on the Environmental andSocial Consideration in Trade Insurance” in order tofulfil its social responsibilities. These guidelines weredrawn up based on the OECD’s Recommendation of
the Council on Common Approaches for OfficiallySupported Export Credits and Environmental andSocial Due Diligence (the “Common Approaches” )developed by the OECD as part of its initiatives toaddress environmental issues. The guidelines areused to ensure that project companies give
appropriate environmental and social
considerations to projects to be underwritten.
More specifically, projects are classified into three
categories based on their potential impact on theenvironment (i.e., Category A, B, or C in descendingorder of the intensity of environmental impact)using Screening Forms submitted by exporters
and other entities. For example, if a project isclassified as Category A, an on-site visit is usuallyconducted.
In addition, Objection Procedures are incorporated toensure NEXI’s compliance with the Environmental
Guidelines. An independent Environmental Guidelines
Examiner is assigned to report directly to the
Chairman.
In FY2013, environmental reviews (including
on-site visits) were implemented for 93 projects
that were subject to screening.

Screening results in FY2013 by category
Category B 6.5％

Category A 20.4％

Category C
73.1%

Screening results in FY2013 by region
Oceania & Paciﬁc Ocean
countries 2.1%
Central and SouthAmerica 9.7%

Africa 2.1%

Middle East
10.8%
Europe and NIS
15.1%

Asia
60.2％

※The Middle East includes Turkey.
Central and South America includes Mexico.
Europe and NIS includes Russia and Central Asia.

Supporting exports of Japaneseenvironmental technologies

Scene from an on-site visit to a hydropower plant

NEXI is actively supporting exports ofenvironmental technologies, including those that
reduce carbon dioxide emissions. In FY2013, NEXI
supported exports of advanced Japanese environmental
technologies by underwriting a variety of projects,
including the export of Boeing aircraft (B787) with
reduced gas emissions and noise, achieved throughusing light-weight materials, and production of partsfor solar power plants to generate clean renewableenergy.
12Underwritten Projects
Oil & Gas
VietnamNghi Son Oil Refinery and Petrochemicals Complex ProjectIdemitsu Kosan Co., Ltd. and Mitsui Chemicals Inc., together with Petrovietnam (Vietnam) and KPI (100%subsidiary of Kuwait Petroleum Corporation), decided to undertake a project to construct a refinery plant withcapacity of 200,000 barrels per day and a petrochemical plant in Thanh Hoa province, about 200 km south ofHanoi. The new refinery plant with a highly complex configuration will feed heavy crude oil from Kuwait toproduce several high-value-added products including petroleum products like gasoline, light oil and jet fuel, andpetrochemicals such as polypropylene, paraxylene and benzene.
Of the total amount of USD 5 billion raised by Nghi Son Refinery and Petrochemical Limited (NSRP) throughproject financing, NEXI provided Overseas Untied Loan Insurance for the loans (totaling approximately USD 1.3
billion) financed by a syndicate of commercial banks including Mizuho Bank Ltd. (as an agent bank), The Bank ofTokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank, Limited aswell as three regional banks (The Yamaguchi Bank, Ltd., The Chiba Bank, Ltd., and The Shizuoka Bank, Ltd.). In
addition, NEXI provided Overseas Investment Insurance to Idemitsu Kosan Co., Ltd. and Mitsui Chemicals Inc.
to support their investments in the project during theconstruction period of four years.
This project is planned to leverage the richexperience and technical capabilities of Idemitsu
Kosan Co., Ltd. and Mitsui Chemicals Inc. to operate
the oil refinery and to produce petrochemicals such as
polypropylene. The petroleum products from the
project are planned to be sold within Vietnam, andthe petrochemical products in the Asian markets.
The insurance contract was entered into in June 2013.
Photograph courtesy of Idemitsu Kosan Co.,Ltd.

AngolaBlock14 Development Project
INPEX CORPORATION agreed with TOTAL S.A. that it would, through its subsidiary, acquire a partial shareof Angola Block 14 B.V., a Dutch project company affiliated with TOTAL S.A., (the Company) and obtain an
indirect interest in Block 14 offshore Republic of Angola held by the Company.
NEXI provided Overseas Investment Insurance for INPEX CORPORATION’s investment to acquire through its
subsidiary an interest in an Angolan oil field. As the project
was expected to contribute to stable energy supply to
Japan, NEXI’s insurance was provided as Investment and
Loan Insurance for Natural Resources and Energy.
NEXI will continue to actively support projects contributing
to business expansion by Japanese companies. As part ofthe initiatives, NEXI will also work to actively provide coverfor projects in Africa to meet the requests by Japanesecompanies considering entering into the African markets.
The insurance contract was entered into in July 2013.

Photograph courtesy of INPEX CORPORATION

13

Underwritten Projects

MiningArgentina

Salar de Olaroz Lithium Development Project
Toyota Tsusho Corporation decided to participate in a project in partnership with Orocobre (Australia) for the
production of lithium carbonate by pumping lithium-rich brine from Salar (salt lake) de Olaroz, located in the northwestern province of Jujuy in Argentina, into solar
evaporation ponds and concentrating it. NEXI provided
Overseas Investment Insurance (Investment and Loan
Insurance for Natural Resources and Energy) for theinvestment made by Toyota Tsusho Corporation
through its subsidiary to acquire shares in the projectcompany, Sales de Jujuy S.A.
This is the first project in which a Japanese company
invests and participates in lithium development. The
project is planned to produce 17,500 tons of lithium
carbonate per annum, which is used as a raw material
for the production of lithium-ion batteries essential fornext-generation vehicles such as electric cars.
The insurance contract was entered into in OctoberPhotograph courtesy of Toyota Tsusho Corporation
2013

Australia

Roy Hill Iron Ore Mining Project

Marubeni Corporation launched an integrated iron ore production and transportation project in the Pilbara
region of Western Australia in cooperation with Hancock Prospecting Pty Ltd (Australia), POSCO (Korea) andChina Steel Corporation (Taiwan). The project includes a new iron ore mine development, construction of a newrailway and development of harbor facilities.
The funds to be raised by the project company Roy Hill Holding Pty Ltd through project finance are about USD
7,200 million, and Japanese financial institutions including Mizuho Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ,
Ltd. and Sumitomo Mitsui Banking Corporation agreed toextend USD 700 million. NEXI provided Overseas Untied
Loan Insurance (Investment and Loan Insurance for Natural
Resources and Energy) for the loans extended by theJapanese banks. Other ECAs supporting this project are theJapan Bank for International Cooperation (JBIC), the Korea
Trade Insurance Corporation (K-sure), the Export-Import
Bank of Korea (Korea Eximbank), and the Export-Import
Bank of the United States (US Eximbank).
This Roy Hill project plans to produce and deliver up to 55
million tons of iron ore per year. Marubeni will purchaseabout 11 million tons (equivalent to about 10 percent ofJapan’
s annual iron ore imports) and supply most of them toJapanese steel manufacturers, which will contribute to astable resource supply to Japan.
The insurance contract was entered into in March 2014.

Photograph courtesy of Roy Hill Holding Pty Ltd

14

PowerIndia

NTPC Power Generation Project

India’s NTPC Limited (NTPC) started a project to construct a thermal power plant (800 MW × 3 units) in Kudgi
of Kartanaka State in south western India. For this power plant construction project, Toshiba JSW Power
Systems Private Limited (Toshiba JSW), a subsidiary of Toshiba Corporation of Japan, won a supply contract fora steam turbine power generation system. To finance NTPC’s purchase of the system, Sumitomo Mitsui Banking
Corporation (SMBC) and Japan Bank for International
Cooperation (JBIC) agreed to extend loans of USD 350
million, and NEXI provided Buyer’s Credit Insurance andOverseas Untied Loan Insurance (Local Buyer’s Credit) forthe loan of USD 140 million provided by SMBC.
Local Buyer’s Credit is for supporting Japanese companies
incorporated abroad that export goods and services tothird-party countries other than Japan. Under the NTPC
project, NEXI’s Local Buyer’s Credit support was provided
for Toshiba JSW’s selling of the steam turbine power
generation equipment to NTPC.
As a Japanese official financial institute, NEXI willcontinue to actively support Japanese exports by using avariety of financial tools.
This insurance contract was entered into in January 2014.
Photograph courtesy of Toshiba Corporation

Saudi Arabia

Saudi Electricity Company’s Jeddah South Project
Saudi Electricity Company (SEC), a state-owned power company in Saudi Arabia, decided to build a 2,892 MW
heavy-oil-fired supercritical power generation plant at a site south of Jeddah, a city on the country’s western
coast facing the Red Sea. For this power generation
plant construction project, Mitsubishi Hitachi Power
Systems, Ltd. received an order to supply equipment for
SEC from a Korean EPC contractor. The Bank ofTokyo-Mitsubishi UFJ (BTMU), Mizuho Bank (Mizuho)
and the Japan Bank for International Cooperation agreed
to co-finance the purchase of the exported equipmentwith a total loan amount of USD 366 million provided to
SEC. NEXI provided Buyer’s Credit Insurance for theloan of USD 183 million offered by BTMU and Mizuho.
Saudi Arabia plans to expand its power generation
systems to meet growing demand for electricity. NEXI’sinsurance supports the country’s plan and also
contributes to the promotion of Japanese companies’
exports.
The insurance contract was entered into in December 2013. Photograph courtesy of The Hongkong and Shanghai Banking

Corporation Limited

15

Underwritten Projects

Infrastructure, Ships & Aircraft
BahrainInvestment for Integrated Steel Manufacturer
Yamato Kogyo Co., Ltd., a Japanese steel manufacturer, established a production and sales joint venture called
SULB Company B.S.C. (C) in Bahrain with its local partner Foulath Holding B.S.C. (C) to meet the demand forstructural steel (such as H-beams) in the Middle East region.
SULB constructed an integrated steel plant comprised of direct reduced iron (DRI), steelmaking and rolling withan annual structural steel production capacity of 600,000 tons.
NEXI provided Overseas Investment Insurance (OII) to cover Yamato Kogyo’s investment in SULB amounting
to USD 345 million.
It was the first time for NEXI to support through OII a
Japanese manufacturer’s full-scale activity in Bahrain. The
investment is expected to play a significant role instrengthening relations between Bahrain and Japan as it is oneof the largest Japanese investments received by Bahrain witha total construction cost of about USD 1 billion.
The insurance contract was entered into in June 2013.
Photograph courtesy of Yamato Kogyo Co., Ltd.

NorwayExport of Two Ultra-high Capacity Seismic Vessels to Petroleum Geo-Services ASA
PGS Titans AS, a 100% subsidiary of Petroleum Geo-Services ASA (PGS) of Norway, purchased two 3D seismic
data acquisition vessels which are manufactured by Mitsubishi Heavy Industries, Ltd in Nagasaki.
NEXI provided Buyer’s Credit Insurance for the loan extended by Sumitomo Mitsui Banking Corporation tofinance the purchase.
PGS is one of the world’ s largest companies in the marine seismic industry and is known for its drive towards
technological innovation of marine seismic acquisition
technology. In recent years, against the backdrop of growing
global demand for oil and natural gas, demand for marine
seismic data has grown and the technology used for acquiringand imaging seismic data continues to take new advanced
technological steps. In particular, the ordered vessels boast thehighest efficiency in deep water seismic data acquisition anddemonstrate Japan’s highly advanced technology in the
shipbuilding industry.
Photograph courtesy of Mitsubishi Heavy Industries, Ltd.
The insurance contract was entered into in March 2014.

NorwayProject to Export Boeing 787s to Norwegian Air Shuttle ASA
NEXI provided reinsurance for Boeing’s export of B787 aircraft to Norwegian Air Shuttle ASA based on areinsurance agreement concluded with US Eximbank. Norwegian Air Shuttle ASA has 93 aircraft in its fleet (as ofApril 2014) and more than 20 million passengers travelled with the airline in 2013. The airline is the third-largest
low-cost-carrier (LCC) in Europe. 1This is the first reinsurance contract that NEXI has signed for a so-called LCC
airline.
NEXI has supported the export of a total of 220 Boeing aircraft to 35 airlines since the reinsurance agreement was
signed in 2004.
Japanese companies participated as partners in the joint
development and production of the Boeing 787. Thus, Japanesetechnologies are used in a broad range of components, including
the wings, fuselage, tires and cabin. NEXI will continue tosupport exports of aircraft parts by Japanese suppliers throughreinsurance associated with exports by Boeing.
The insurance contract was entered into in November 2013.
1
Source : Norwegian Air Shuttle ASA website
Photograph courtesy of Boeing(http://www.norwegian.com/en/about-norwegian/our-company/norwegian-in-brief/)
16

Review of Performance● Underwritten AmountUnderwritten Amount by Insurance Type（Millions of yen）

Type of Insurance

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

FY2009FY2010FY2011FY2012FY2013

Export Credit Insurance

6,231,455

7,308,903

7,110,487

6,151,894

6,849,345

80.4

11.3

One year or less

2,747,597

3,498,241

3,321,146

3,451,195

3,855,361

45.3

11.7

More than one year

3,483,858

3,810,662

3,789,341

2,700,699

2,993,984

35.2

10.9

Buyer's Credit Insurance

91,382

239,764

343,996

123,290

193,845

2.3

57.2

Export Bill Insurance

19,98620,19916,54912,295

14,153

0.2

15.1

0

0

0

0

0

0.0

－

107

0

254

1

5

0.0

246.4

213,193219,229440,367

530,106

611,679

7.2

15.4

1,606,754

741,082549,068

1,369,370

706,030

8.3（48.4）

9,653

11,761

10,311

9,331

7,420

0.1

（20.5）

646

624

567

1,304

2,740

0.0

110.2

－

1,392

14,34019,162

23,5890.3

23.1

Export Bond Insurance
Prepayment ImportInsurance
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

25,88539,99851,834

83,311

108,365

1.3

30.1

8,199,062

8,582,951

8,537,772

8,300,064

8,517,171

100.0

2.6

(Note 1) The underwritten amount is based on the amount as 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 insured amount based on theinsurance 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 forcapital goods, even if the credit period is one year or shorter. (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 amountcalculated using the maximum rate (20% per annum).
（The same applies to the table below)

Underwritten Amount by Region（Millions of yen）

FY2009FY2010FY2011FY2012FY2013Composition(%)

Year-on-yearchange (%)

3,604,106

4,506,009

4,381,676

4,003,749

4,694,526

51.1

17.3

Middle East

793,380

711,115

947,276

591,102926,125

10.1

56.7

Europe987,617965,790895,278795,756

1,073,187

11.7

34.9

North America

842,520

302,121261,013

293,729

332,822

3.6

13.3

Central America

1,029,527

1,065,227

1,086,265

903,421733,386

8.0（18.8）South America

363,382

601,494

825,627

883,707569,857

6.2（35.5）

Africa526,435

469,999479,742447,219450,794

4.9

0.8

Oceania

463,329

580,589

148,645833,730

259,0232.8（68.9）

International Organizations

106,123

160,254

116,006

167,972

155,064

1.7

（7.7）

RegionAsia（Note 1）Classification used to compute the above amount: Pre-shipment: Country of the shipment consignee; Post-shipment: Country of
the payer (or country of the guarantor when guaranteed)（Note 2）The amount includes transactions that are doubly computed, i.e. for both pre-shipment (country of the consignee) andpost-shipment (country of the payer).
（Note 3）The amount is classified in 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.)17

Review of Performance● Outstanding Commitment (As of fiscal year end)
Outstanding Commitment by Insurance Type（Millions of yen）

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

Type of Insurance

FY2009FY2010FY2011FY2012FY2013

Export Credit Insurance

7,959,765

8,184,301

8,099,696

8,167,551

8,495,228

59.3

4.0

One year or less

2,022,794

2,601,992

2,337,812

3,097,421

3,569,810

24.9

15.3

More than one year

5,936,971

5,582,309

5,761,884

5,070,130

4,925,418

34.4

（2.9）

Buyer's Credit Insurance

500,438

577,707832,267

1,032,720

1,320,215

9.2

27.8

4,992

5,137

3,323

3,336

3,810

0.0

14.2

0

0

0

0

0

0.0

－

107

0

0

0

0

0.0

－

790,936

776,508

944,798

1,117,154

1,399,630

9.8

25.3

2,030,689

2,155,666

2,129,124

2,241,104

2,600,398

18.2

16.0

11,952

16,22615,147

15,34012,1720.1（20.7）

161

168

145

499

978

0.0

96.2

－

1,332

5,830

5,959

8,671

0.1

45.5

147,313

174,558

219,207

330,785

481,361

3.4

45.5

11,446,354

11,891,603

12,249,536

12,914,446

14,322,464

100.0

10.9

Export Bill Insurance
Export Bond Insurance
Prepayment ImportInsurance
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(Note 1) The total amount is calculated based on the actual insured amount by using the exchange rate as at each fiscal year-end (including
the outstanding amount underwritten in previous years), not insured amount based on the insurance option for transactions inforeign 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）

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

FY2009FY2010FY2011FY2012FY2013Asia

4,305,435

4,826,289

5,223,394

5,591,707

6,603,603

44.6

18.1

Middle East

2,531,022

2,096,943

1,919,569

1,852,988

1,889,077

12.8

2.0

Europe1,237,234

1,361,156

1,563,996

1,778,936

1,913,011

12.9

7.5

North America

869,422840,569

651,853375,726

474,068

3.2

26.2

Central America

735,762754,325

698,215

620,925642,637

4.3

3.5

South America

750,377

675,266

824,239

1,050,016

1,059,399

7.2

0.9

Africa903,281864,959

890,361

788,076

772,231

5.2

（2.0）

Oceania

349,574

744,995

774,131

1,092,066

1,198,756

8.1

9.8

International Organizations

158,757

227,419

218,854

202,893

246,227

1.7

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

18

● Premium Income
Premium Income by Insurance Type（Millions of yen）

Type of Insurance

FY2009FY2010FY2011FY2012FY2013Composition (%) Year-on-year change (%)

Export Credit Insurance

13,59615,157

14,074

11,943

13,315

41.6

11.5

One year or less

3,866

5,754

5,462

5,025

5,612

17.5

11.7

More than one year

9,730

9,403

8,611

6,918

7,703

24.1

11.3

Buyer's Credit Insurance

1,155

6,869

3,953

1,524

3,899

12.2

155.9

Export Bill Insurance

184

185

146

111

132

0.4

19.1

Export Bond Insurance

0

0

0

0

0

0.0

－

Prepayment ImportInsurance
Overseas Investment
Insurance
Overseas Untied Loan
Insurance

1

0

0

0

0

0.0

4.3

2,956

2,595

3,177

3,718

4,471

14.0

20.3

21,425

13,477

10,065

17,924

6,078

19.0

（66.1）

283

399

391

321

263

0.8

（18.1）

6

6

6

12

24

0.1

101.8

－

6

38

38

43

0.1

12.2

Trade Insurance for Standing
Orders from Speciﬁc Buyer

Export Credit Insurance for
SMEs

Comprehensive Export Insurancewith Simpliﬁed Procedure

Reinsurance

Total

597

1,064

1,528

3,207

3,771

11.8

17.6

40,20339,75733,37838,79731,994100.0（17.5）(Note) Unlike the underwritten amount that is based on the insurance contract date, the premium income is recorded at the start of the insurer’s obligation
period. The premium income and underwritten amount could be recorded in different fiscal years.

● Insurance Claims Paid
Insurance Claims Paid (by Insurance Type and by Risk)
Type of Insurance

FY2009

Political Commercial

FY2010

Political Commercial

FY2011

Political Commercial

FY2012

Political Commercial（Millions of yen）

FY2013Composition Year-on-year(%)
change (%)
Political Commercial

Export Credit Insurance

9,591

3,268

6,323

7,346

3,972

3,375

7,157

1,342

5,815

3,079

424

2,655

9,675

0

9,675

79.1

214.2

Buyer’s Credit Insurance

97

0

97

1,209

0

1,209

1,165

0

1,165

1,165

0

1,165

1,723

0

1,723

14.1

47.8

－

－

－

0

0

0

0

0

0

0

0

0

17

0

17

0.1

Export Bill Insurance

187

0

187

16

0

16

34

0

34

3

0

3

14

0

14

0.1

393.1

Export Bond Insurance

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

429

0

429

1

0

1

0

0

0

168

0

168

368

0

368

3.0

－
－
－
－

119.6

0

0

0

2

0

2

3

0

3

2

0

2

0

0

0

0.0

（100.0）

0

436

436

0

3.6

3,993 12,234

436

11,798100.0

Comprehensive Export lnsurancewith Simpliﬁed Procedure

Prepayment ImportInsurance
Overseas Investment
Insurance
Overseas Untied Loan
Insurance
Trade Insurance for Standing
Orders from Speciﬁc Buyer
Export Credit Insurance for
SMEs

Reinsurance

Total

137

0

137

0

0

0

0

0

0

0

0

10,441

3,268

7,173

8,574

3,972

4,603

8,359

1,342

7,017

4,416

424

－

－

177.0

Insurance Claims Paid (by Region)
RegionAsia
Middle East
EuropeNorth America
Central America
South America
AfricaOceania
Total
19

FY2009

Political Commercial

FY2010

Political Commercial

48

0

0

237 1,075

11

1,064

150

0

150 1,249

38

35

3 2,119

2,680

2,677

1,207

556

5,971

0

237

FY2011

Political Commercial

FY2012

Political Commercial（Millions of yen）

FY2013Composition Year-on-year(%)
change (%)
Political Commercial

48 5,624

0

5,624

121

0

841

0

841

6.9

594.2

5

5

0

6

6

0 9,532

436

9,096

77.9

154,475.7

01,249 1,262

0

1,262 1,560

0

1,560 1,777

0

1,777

14.5

13.9

0

2,119

0

0

0

2

0

2

7

0

7

0.1

259.8

3 2,974

2,851

123

88

77

10

0

0

0

72

0

72

0.6

－

651 1,084

1,084

0

974

951

23

430

418

12

5

0

5

0.0

（98.9）

99 2,297

0

2,297

0

0

0

0.0

（100.0）

0

0

0

0

0

0

0.0

－

7,017 4,416

424

3,993 12,234

436

11,798

100.0

177.0

5,971

0

0

0

26

26

0

407

309

158

0

158

0

0

0

0

0

10,441

3,268

7,173 8,574

3,972

4,603 8,359

1,342

0

121

Review of Performance● Recoveries
Recoveries by Risk
（Millions of yen）

Type of Risks

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013Composition(%)

Political Risk

54,28440,393

17,451

14,327

17,33023,53130,865

98.4

31.2

Commercial Risk

3,181

1,462

3,064

1,313

338

486

509

1.6

4.7

Total

57,46541,855

20,515

15,64017,66824,017

31,375

100.0

30.6

Year-on-yearchange (%)

Year-on-yearchange (%)

Recoveries by Region（Millions of yen）

Region

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013Composition
(%)

Asia

7,451

6,354

8,397

5,523

5,673

6,298

7,278

23.2

15.6

Middle East

2,520

1,404

1,342

1,357

3,510

8,172

11,17335.6

36.7

Europe31,96725,349

2,515

1,028

814

1,154

1,512

4.8

31.0

North America

0

1

0

778

1

30

0

Central America

2,483

480

571

193

510

241

3,246

10.3

1,249.0

South America

6,882

2,230

1,705

1,155

1,176

1,536

1,558

5.0

1.4

Africa

6,160

6,037

5,985

5,608

5,970

6,587

6,608

21.1

0.3

OceaniaTotal

0.0 （100.0）

3

1

0

0

14

0

0

0.0

0.0

57,46541,855

20,515

15,64017,66824,017

31,375

100.0

30.6

Recoveries in FY2013■Recoveries by Risk

Recoveries for FY2013 increased by 30.6% (JPY 7.3 billion) to JPY 31.3 billion from the previous fiscal
year’s JPY 24 billion.
Looking at a breakdown by type of risk, recoveries for commercial risk events accounted forapproximately 1.6% (JPY 500 million) of the total recoveries, and recoveries for political risk eventsby way of rescheduling, etc. accounted for 98.4% (JPY 30.8 billion).

■Recoveries by Region and Country
In a breakdown by region, recoveries from the Middle East accounted for the largest share of 35.6%,
or JPY 11.1 billion, up by 36.7% from the previous fiscal year. Debts of JPY 9.3 billion were recoveredfrom Iraq and JPY 1.7 billion were recovered from Jordan.
Recoveries from Asia accounted for the second largest share (23.2%), up by 15.6% from the previous
fiscal year to JPY 7.2 billion. The amounts recovered include JPY 6 billion from Indonesia, JPY 900
million from Myanmar, and JPY 100 million from Korea.
Recoveries from Africa amounted to JPY 6.6 billion (JPY 6.5 billion from Egypt, JPY 20 million from
Kenya, and JPY 20 million from Gabon). JPY 3.2 billion (JPY 2.8 billion from Cuba, JPY 300 million
from the Dominican Republic, and JPY 100 million from Antigua Barbuda) was recovered fromCentral America and JPY 1.5 billion (JPY 1.1 billion from Argentina and JPY 400 million from
Ecuador) from South America.
As for recoveries by country, the top five countries with the largest recoveries were, in descendingorder, Iraq, Egypt, Indonesia, Cuba and Jordan and they collectively accounted for approximately
85% of the total recoveries from 33 countries.
20

2013 Financial Results● Fiscal Year 2013 in Review
On June 24, 2014, the Incorporated Administrative Agency Nippon Export and Investment Insurance（NEXI）
submitted financial statements and other financial information for the fiscal year 2013 ended March 31, 2014（the13th year of operation）to the Minister of Economy, Trade, and Industry.

Overview of Financial Statements
Financial highlights of NEXI’s business（Year end: March 31）（Millions of yen）

9th
（FY2009）

10th（FY2010）

11th（FY2011）

12th（FY2012）13th（FY2013）

Ordinary proﬁt（loss）

5,724

5,777

9,006

8,404

6,905

Ordinary income

17,286

17,111

16,24016,866

14,241（Underwriting income）

12,504

11,084

10,538

9,910

8,582

（Reference）Premium of original insurance written

39,606

38,69331,84935,59028,224

Net premium written

10,784

11,075

8,972

9,908

8,153

Reversal of outstanding claims provision

1,713

－

1,562

－

351

4,409

5,869

5,503

6,524

5,245

198

－

31

182

143

Ordinary expenses

11,562

11,334

7,234

8,462

7,336

（Underwriting expenses）

4,431

4,184

1,394

3,185

1,491

（Reference）Insurance claims paid

10,441

8,574

8,359

4,416

12,234

976

749

741

388

1,201

Provision for outstanding claims reserves

－

1,768

－

342

－

Provision for outstanding commitments reserves

3,012

2,409

690

2,466

499

－

76

－

－

－

（Operating and administrative expenses）

7,116

7,075

5,840

5,261

5,597

Extraordinary proﬁt（loss）

11,00915,83017,59912,022

8,526

Net proﬁt（loss）

16,733

21,607

26,605

20,426

15,432
373,557
336,433（Investment income）（Foreign exchange gain）

Net claims paid

（Foreign exchange loss）

Total assets

315,683

339,262

371,754368,664

Net worth

282,092

303,699

330,304

321,002（Note）Extraordinary profit（loss）includes valuation of profits or losses related to government-invested assets.

Profits and Losses
Net premium written in FY2013 decreased by 17.7% to JPY 8,153 million compared to the previous fiscal year.
Income from some insurance facilities such as Export Credit Insurance increased due to growing Japanese
exports backed by the yen’s depreciation, but a decrease in income from Overseas Untied Loan Insurance
exceeded the total increase. Investment income also decreased by 19.6% to JPY 5,245 million, due to lack of gain
on exchange of securities during the fiscal year. As a result, ordinary income declined by 15.6% to JPY 14,241
million compared to the previous fiscal year.
On the other hand, net claims paid amounted to JPY 1,201 million, an increase of 3.1 times compared to theprevious fiscal year. Unlike the previous year, however, a reversal of outstanding claims provision was recorded,
and also a provision for outstanding commitments reserves, which had been much larger in the previous fiscal
year due to underwriting of new large-scale projects, declined by 79.8% to JPY 499 million. As a consequence,ordinary expenses decreased by 13.3% to JPY 7,336 million compared to the previous fiscal year.
Ordinary profit in FY2013 was therefore JPY 6,905 million, down by 17.8% from the previous fiscal year.
Extraordinary profit was JPY 8,526 million, which includes interest income and valuation gains from receivables
acquired by subrogation that continued to be successfully recovered according to rescheduling agreement.
As a result, net profit for the fiscal year amounted to JPY 15,432 million.
21

2013 Financial Results● Financial Statements
Balance Sheet（As of March 31, 2014）（Millions of yen）

Account title

AmountAccount title(Assets)
Cash and cash equivalents

Amount（Liabilities）
9,101

Outstanding claims reserves

1,322

Securities

296,053

Reserves for outstanding commitments

23,172

Receivables subrogated by paying claims

222,432

Amount due to the reinsurer

4,177

Accrued income

1,705

Deposits received

Accrued premium

5,390

Advance insurance premium

3,439

Reinsurance credit

205

Accrued amount payable

4,188

Buildings

41

102

Accrued bonuses

99

Equipment and ﬁxtures (Note 3)598

Reserves for retirement allowance454

Accounts receivable

116

Other liabilities

230

Deposits

394

Total liabilities

37,123

Software935

Other assets

70(Note 2)

Allowance for uncollectible receivables（163,545）(Net worth)
CapitalGovernment investment
Capital surplus(Note 4)

104,352
143,402

Retained earnings

Total assets

373,557

Third term period reserve fund carried forward

52,822

Surplus reserves

20,426

Unappropriated retained earnings

15,432(of which proﬁt for the current year)

15,432

Total retained earnings

88,679Total net worth

336,433

Total liabilities and net worth

373,557（Notes）
1. Amounts between 1 million yen and 0.5 million yen were rounded up to 1 million yen. Amounts less than 0.5 million yen were omitted.
2. Accumulated depreciation on buildings is JPY 216 million.
3. Accumulated depreciation on equipment and fixtures is JPY 1,166 million.
4. The breakdown of capital surplus is as follows:（Millions of yen）

Valuation diﬀerence of receivables subrogated by paying claims

45,386

Valuation diﬀerence of capitalized amount

98,015(Total)143,402

22

Statement of Income（April 1, 2013‒March 31, 2014）（Millions of yen）

Account title

Ordinary income
Underwriting income
Net premium written (Note 2)
Reversal of outstanding claims provisionInterest income on receivables subrogated by paying claims
Investment income
Income from interest
Interest on securities
Foreign exchange gain
Other
Other ordinary income
Ordinary expenses
Underwriting expenses
Net claims paid (Note 3)
Estimated amount of insurance claims recovery (Note 4)
Provision for outstanding commitments reserves
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 (Note 5)
Reversal of provision for uncollectible receivables relating to in-kind contribution of receivables acquired by government subrogation
Other extraordinary income
Extraordinary loss
Losses relating to in-kind contribution of receivables acquired by government subrogation (Note 5)
Other extraordinary loss
Net proﬁt(Notes)
1. Amounts between 1and 0.5 million yen were rounded up to
1 million yen. Amounts less than 0.5 million yen wereomitted.
２．Breakdown of net premium written（Millions of yen）

Premium of original insurance written
28,224
Refund of premium paid for reinsurance
900
Premium received for reinsurance
3,770
Premium paid for reinsurance（24,741）
（Net）
8,153
３．Breakdown of net claims paid

（Millions of yen）

Insurance claims paid
Reinsurance claims recovered
Refund of insurance claims paid
Refund of reinsurance claims received（Net）

12,234（11,033）
（0）
0
1,201

４．Breakdown of the estimated amount of insurance claims recovery

Amount14,241
8,582
8,153
351
79
5,245
2
5,243
143
270
270
7,336
1,491
1,201
（210）
499
5,597
248
206
43
6,905
8,687
4,319
4,353
15
161
160
1
15,432

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

Interest income
Foreign exchange gain
（Total）

3,451
868
4,319

(2)Breakdown of losses relating to in-kind contribution ofreceivables acquired by government subrogation（Millions of yen）

Recovery expenses
Bad debt loss
（Total）

7
153
160（Millions of yen）

（1）
Capitalized and evaluated amount of subrogated receivables in connection with rescheduling agreements
1) Political-risk subrogated receivables（293）2) Bad debt loss
533) Reversal of provision for uncollectible receivables
（119）
（2）
Capitalized and evaluated amount of subrogated receivables in relation to commercial risk claims paid
（1,187）
1) Commercial-risk subrogated receivables
2) Diﬀerence of estimated value between the current year and the previous year concerning
293
subrogated receivables capitalized in line with the outstanding claims provision
3) Bad debt loss
34) Provision for uncollectible receivables
1,040（Total）（210）
23

2013 Financial Results

Statement of Cash Flows（April 1, 2013‒March 31, 2014）（Millions of yen）

Ⅰ．
Cash ﬂows from operating activities
Premium received

36,284

Reinsurance premium paid

（32,035）

Insurance claims paid

（12,246）

Reinsurance claims received

13,064

Income from recovery of receivables subrogated by paying claims

25,154

Payment of recovered receivables subrogated by paying claims（13,750）

Income from recovery of receivables subrogated to the government

10,137

Payment of recovered receivables subrogated to the government（10,137）

Personnel expenses（1,331）Other operating expenses（3,356）

Other

153
Subtotal

11,9388,648Interests received
Net cash provided by operating activities

20,586Ⅱ．
Cash ﬂows from investing activities
Purchase of securities（52,879）

Redemption and sale of securities

30,997Purchase of ﬁxed assets（598）

Reversal of deposits

3

Payment of deposits（0）

Net cash (used in) provided by investing activities（22,477）

Ⅲ．
Cash ﬂows from ﬁnancing activities
Net cash (used in) provided by ﬁnancing activities
Ⅳ．
Foreign exchange diﬀerence related to cash and cash equivalents
Ⅴ．
Net increase (decrease) in cash and cash equivalents－
56（1,835）Ⅵ．
Cash and cash equivalents at the beginning of the current year

10,937

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

9,101

(Notes)１．
Amounts between 1 million yen and 0.5 million yen were rounded up to 1 million yen. Amounts less than 0.5 million yen
were omitted.
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

9,101
Total 9,101

24

NotesⅠ．
Important Accounting Principles

1. Accounting procedures for depreciation⑴Depreciation of tangible fixed assets
Depreciation of tangible fixed assets is calculated by adopting astraight-line depreciation method. Useful life and residual values arecalculated 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 straight-line
depreciation method where the residual value is set at ¥0, in accordancewith the estimated useful life stipulated in the Corporation Tax Act.
Amortization of computer software being used in-house is calculated bya straight-line depreciation method where the usability period is used as
the estimated useful life and where the residual value is set at ¥0. Startingfrom FY2013, the useful life of 5 years instead of 4 years is used following
the review of the current status of the use of software. The shift from theprevious method resulted in a decrease of JPY 30 million in amortizationof software for FY2013 and the ordinary profit as well as the net profit
increased accordingly by the same amount.

Calculation basis of reserves for retirement allowances and estimates
２．
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 those that apply to employees,
respectively. In accordance with the statement of administrative services
costs, estimated increases in retirement allowances with no reserves set
aside are computed by deducting “retirement allowance estimates at theend of 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 by paying claims, and allowance foruncollectible receivables
Reserves for outstanding commitments, outstanding claims reserves,receivables subrogated by paying claims, and the allowance for uncollectible
receivables are dealt by calculating the respective amounts in accordancewith the following ordinance: “Concerning the calculation methods ordainedby the Ministry of Economy, Trade, and Industry, pursuant to the articles ofthe ministerial ordinance with regard to the finance and accounting of theIncorporated Administrative Agency Nippon Export and Investment
Insurance”（2001.03.27 Trade No.2）.
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 securities⑴Held-to-maturity securities are valued at amortized cost（using a straight-line
method）⑵Other 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 of administrative services
costsInterest rate used for the calculation of opportunity costs relating toinvestments by the government: the yield of 10-year government bonds(0.640%)８．
Accounting procedure for 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 changes to the accounting principles from the previous fiscal year.
１1．
Changes to presentation methods“Claim recovery expenses” (excluding the expenses associated with theassets invested by the government), which had conventionally been
included in “Operating and administrative expenses,” shall be separately
presented as “Claim recovery expenses” under “Other.” This change isbased on the facts that NEXI is moving towards a new method where theinsurer leads the recovery of the receivables subrogated by paying claims
and that a significant fluctuation in the amount of the said expenses is
expected accordingly.

25

II. Financial Instruments

１．
Financial instrumentsａ．
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 insecurities to strengthen NEXI’s 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
debtor countries’ or debtors’ credit risk. Securities are exposed tointerest rate and market fluctuation risks.
c.Financial instruments and risk management⑴Country risk management
In concluding insurance contracts (that could cause the acquisition ofreceivables subrogated by paying insurance claims), NEXI’s Country Risk
Analysis Group conducts risk assessments by gathering information
through the Berne Union and OECD as well as researching and evaluating
country risk.
⑵Credit risk management
For the management of credit risk of an export contract counterparty（overseas buyer), NEXI’s Credit Administration Group conducts a credit
check and assessment of overseas buyers.
⑶Market risk management
Market risk, such as interest rate and price fluctuation associated withinvestment in securities, is managed by the Fund Operation Meeting that
discusses NEXI’s investment policies and checks investment statuses. In
addition, NEXI’s Accounting Group, 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 themarket price is not available, fair value is based on reasonably assessedvalue. Fair value of financial instruments is measured based on certain
assumptions, and might differ if measured based on different assumptions.
2. Fair value of financial instruments
The carrying amounts on the balance sheet, fair value and differences as ofthe end of the fiscal year 2013

（Millions of yen）

⑴ Cash and cash equivalents⑵ Securities
Held-to-maturity securities⑶ Receivables subrogated by paying claims
Receivables subrogated by paying claims
Allowance for uncollectible receivables(*)(Net)⑷ Accrued premium⑸ Reinsurance credit
Assets⑹ Amount due to the reinsurer
Liabilities

Carrying amount Fair value Differences

9,101

9,101

－

296,053

325,11229,059222,432(163,545)
58,8875,390
205
369,637
4,177
4,177

58,887
5,390
205
398,696
4,177
4,177

－
－
－
29,059－－(*) Allowance for uncollectible receivables associated with receivables
subrogated by paying claims is deducted.
(Note1) Fair value measurement of financial instruments and securities⑴Cash and cash equivalents
Fair value of deposits with no stated maturity is equal to carrying value,
since it approximates the carrying value.
⑵Securities
Fair value of securities is based on the quoted market value or value
quoted by financial institutions. Carrying amount, fair value, anddifferences of held-to-maturity securities (in accordance with theaccounting standards for incorporated administrative agencies andnotes) are as follows.

（Millions of yen）

Type of securities

Carrying
amountFair
value

Differences

Fair value >Carrying amountGovernment andmunicipal bonds

282,765

311,825

29,061

Fair value ≦Carrying amountGovernment andmunicipal bonds

13,28913,287(2)

296,053

325,11229,059Total

・There were no held-to-maturity securities sold during the fiscal year
2013.
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).
(i)Allowance 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
repayment prospects of each debtor country or by using a given ratio.
(ii)Allowance for uncollectible receivables associated with receivables

2013 Financial Results
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 andestimated amounts recoverable under a payment guarantee. For
receivables from other debtors, allowance is obtained by calculating loss
estimates based on 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 thecarrying value at the fiscal year end less allowance for uncollectible
receivables, since it approximates this net carrying value.
⑷Accrued premium, ⑸ Reinsurance credit, and ⑹ Amount due to the reinsurer
Fair values of accrued premiums are equal to the carrying value, since itapproximates the carrying value as they are settled in a short period of time.
(Note2) Expected payment and redemption amount of money claims andsecurities with maturity after the fiscal year end

V. Account Titles Used by NEXI（Millions of yen）
1 yearor less

More
More
More
More
More
than
than
than
than
than
1 year 3 years 5 years 10 years
20
to
to
to
to
years
3 years 5 years 10 years 20 years

Undetermined(*)

Securities
Held-to-maturity
Securities
12,000 15,000 26,500

24,600 216,600-

Receivables
subrogated bypaying claims

14,98722,808

17,62342,60532,055- 92,354

Total

26,98737,80844,123

67,205 248,655- 92,354-(*)The receivables subrogated by paying claims that are in arrears
are classified as “Undetermined.”

III. Important Multi-year Obligation
Not applicable

IV. Important Subsequent Events
Not applicable(1) Balance sheet
Account title

Description

Receivables
subrogatedby paying claims

Total assets of receivables subrogated by NEXI’s 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 politicalrisk 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.

Accrued premium

Accrued insurance premiums associated with insurance applications.

Reinsurance credit

Amounts receivable from the government, such as reinsurance claims.

Outstanding claims
reserves

Amounts considered necessary under future insurance contracts to cover incurred losses or losses recognized as having been
incurred at the end of the fiscal year, 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 andaccounting of the Incorporated Administrative Agency Nippon Export and Investment Insurance” (2001/03/27 Trade No.2).

Reserves foroutstanding
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 thearticles 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).

Amount due to thereinsurer

Amount payable to the government (reinsurer) such as reinsurance premium.

Allowance foruncollectible 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 NEXI’s obligation beginning from the next fiscal year or later.
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 ending 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 ending March 2006 (FY 2005), receivables acquired by subrogation and contributed in-kind by thegovernment that were 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).

Capital surplus(2) 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).

VI. Other Accounting Information Necessary to Understand NEXIs Current Situation

At its meeting on December 24, 2013, the Cabinet endorsed a plan to reform incorporated administrative agencies, including NEXI. Under the plan, “NEXI shallbe converted into a special company wholly owned by the government” and “Special Account for Trade Reinsurance shall be abolished by the end of FY2016
and the special company shall succeed the assets and liabilities.”26

Fourth-Term Objectives
NEXI has set its medium-term objectives for the fourth term of FY2012 to FY2015 and will implement measures andpolicies based on these objectives.
According to the decisions made at the cabinet meeting of January 2012, and based on the “Strategy for Rebirth ofJapan,” NEXI will continue to work to achieve greater effectiveness and flexibility of management, integrating ourservice more closely with the government's policy direction. NEXI will be required to improve and expand the tradeinsurance business, as well as reinforce the operating framework of the insurance approval process and risk
management, in order to strengthen the competitiveness of Japanese companies and enhance customer convenience.
Considering that trade insurance is financed by premiums from customers without recourse to government subsidy, we
will work to achieve a truly efficient and effective management style based on the cost-benefit relationship between theinsurance business’s income and its operating and personnel costs.

Outline of the fourth-term objectives

1

Measures to improve the quality of NEXI’s services and other operations（１）
Product improvement
Our actions will be in response to the Japanese trade and industry policy while proactively addressing customer
needs in the changing business environment. Our products will aim at providing high quality services
equivalent with other countries to secure the international competitiveness of Japanese companies.

（２）
Improvement of services
By adopting a “customer perspective” at all times, every effort will be put into improving services and building
relationships of trust with our customers.

（３）
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 as internal controls and compliance.

（４）
Emphasizing strategic priority policy issues
In light of our role as the public institution responsible for developing Japan’s overseas trade, the requirementsof the state policy on trade, industry, and natural resources and energy must be considered. As such, we willtake initiatives to address the policy issues set forth in the medium-term objectives and expand the scope ofunderwriting in the relevant areas both qualitatively and quantitatively.
We will accordingly promote products and structures aimed at increasing the underwriting in these areas.

（５）
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 ourcustomers, as well as establish an environment resulting in an increase in the business opportunities for private
insurers.
27

Fourth-Term Objectives

2

Improvement in business efficiency（１）
Promotion of efficient business operations

NEXI’s 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 cost-conscious and fully consider cost-effectiveness in order to improve theefficiency of our business operations.

(1) In accordance with the medium-term objectives, we will make necessary improvements toward more advanced risk analysis and assessment,along with improving publicity activities. At the same time, necessary actions to improve operational efficiency such as rationalization of theoperating process, enhancement of staff abilities, and promotion of outsourcing will be undertaken. Also, as needed, the structure of theorganization and personnel assignments will be revised according to the workload. Necessary steps will be undertaken to increasecost-effectiveness in all areas, including personnel expenses, by carefully evaluating the appropriateness of each expenditure, by using cheapersourcing, and by efficient usage of the operating expenses.
(2) Based on the incorporated administrative agency reform, we will take into account the government employees’ pay scales and curb our overall
personnel expenditures.
By revising ability-based benefits and other benefits while maintaining necessary staff expertise in areas such as international financing, we willappropriately decrease the Laspeyres Index.
(3) In principle, NEXI’s entrance into new procurement contracts will be based on competitive procurement processes such as competitive tendering.
Non-competitive bidding or application will be avoided as much as possible, and will try to steadily implement reforms based on a “program forreviewing 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.

（２）
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 thespecial account related to the government’s reinsurance will be undertaken. We aim at the realization of efficient
operations and improved services through prompt maintenance and upgradation of the fourth-term 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（１）
Financial base reinforcement

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

（２）
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 occurrence of insured risk and to alleviate any loss by swiftly implementing necessary
measures in cooperation with customers and relevant governmental organizations.

（３）
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 addedtransparency in accounting.

4

Responding to the new system based on the administrative reform

5

Fostering personnel with high degree of expertise

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

As an expert organization providing quality services that meet customers’ 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 the development of expertise. We will also continue to recruit staff
members with expertise in fields such as international financing, the legal system, country risks, businessfinance, and trade.

28

Customer Service Charter
ⅠNEXI Spirit（1）
Our mission is to assist customers to conduct international
business with a sense of reassurance by reducing incidental
business risks. To this end, we take time to ascertain ourcustomers’ situations so that we can meet their needs
precisely and provide efficient and high-quality services,
thereby enhancing customer satisfaction and establishingmutual trust.
（2）
By implementing our customer-first policy, we will continueto:(ⅰ) Improve the quality of service,(ⅱ) Broaden the range of risk coverage,(ⅲ) Promote efficient operations, and(ⅳ) Increase management transparency.

Ⅱ NEXI’s Pledge to Customers
We are committed to:（1）
Providing insurance products that make our customers feelsecure and protected when conducting overseas
transactions（2）
Providing advice to our customers from the preliminary
stage of planning（3）
Promptly responding to inquiries and acting in the interestsof our customers（4）
Meeting our customers’ demands and business needs（5）
Promptly completing assessment and payment of
insurance claims, and（6）
Promptly allocating recoveries（1）
Providing insurance products that make our customers feelsecure and protected when conducting overseas
transactions(ⅰ) If you suspect that your international transactions,
including exports, foreign investments, or overseas loans,
may
incur
risk,
pleasevisit
ourwebsite(http://www.nexi.go.jp) and go to the insurance productsection, or contact NEXI’s Customer Relations Desk.
(ⅱ)We can send our staff to your office at your request to
provide further information on our insurance productsthat support and protect your international business.
Please feel free to contact us.
（2）
Providing advice to our customers from the preliminary
stage of planningIf you plan to initiate international transactions, such asexports or overseas investments, NEXI is ready to serve you.
We will be pleased to talk with you at an early stage of yourproject’s formation and propose the most appropriate
insurance products to minimize any risk involved.
（3）
Promptly responding to inquiries and acting in the interestsof our customers(ⅰ) If you have any questions about insurance products,
please call or email our Customer Relations Desk or the
relevant group in charge.
(ⅱ)Our premium calculator is available on the NEXI website
to estimate your insurance premium. If you give us
information on your planned transaction, the group in
charge can generally estimate the premium on the same
day of your inquiry, or on the following business day atthe latest. (For medium or long-term non-L/Gtransactions, however, we will respond within fivebusiness days.) If the group in charge finds it difficult to29

respond to your inquiry within the specified time limits, itwill promptly notify you to that effect along with thereason for the delay and the expected date of response.
(ⅲ)Should the group in charge find any inadequacy in a
pre-application form, insurance application form, or other
form
that
you
have
submitted(otherthanenvironment-related forms), we will notify you within fivebusiness days of our receipt at the latest.
(ⅳ)If you have any questions about NEXI’s insurance systemwith regard to a specific project, please inform the groupin charge or the Customer Relations Desk. We will
respond within five business days at the latest. Should wefind it difficult to respond within the stated period, we willpromptly notify you to that effect with the reason for thedelay and the expected date of response.
（4）
Meeting our customers’ demands and business needs(ⅰ) We 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 (for example, because anexport contract is proceeding more rapidly than
anticipated), please inform us.
(ⅱ)Your business needs are always important to us and wewill do our utmost to meet your accelerated deadline. If
we find it difficult to meet the new deadline, we will
immediately inform you of how long it will take tocomplete the necessary procedures.
（5）
Promptly completing the assessment and payment of
insurance claims(ⅰ) 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 will then make a payment within the stipulated
time. This is generally within two months of receipt of theclaim; however, in a situation where more time is required
for assessment, this rule does not apply. For an
application for insurance claims, we may request that you
execute the obligations of notification and of loss
prevention and reduction that are stipulated in such
documents as insurance policy provisions. In addition, we
may also request that you submit all necessary
documents stipulated in the insurance policy provisions
and other regulations within a specified time.
(ⅱ)In 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 three business days after receiving the document.
(ⅲ)We would appreciate your understanding andcooperation, including early submission of documents
necessary for assessment, so that we may pay claims
within the period stipulated in the insurance policy
provisions or other regulations.
（6）
Promptly allocating recoveries(ⅰ) When all or part of a subrogated claim is recovered, we
will promptly allocate the recovery in accordance withinsurance policy provisions and other contracts.
(ⅱ)In allocating a recovery in accordance with a Paris Clubdebt rescheduling program or other program, we will in
principle complete procedures of remittance to youraccounts by the business day following the confirmationof receipt of the full amount in NEXI’s account.

Customer Service Charter

Ⅲ Information
A range of information is available on our website(http://www.nexi.go.jp) and in our annual report.
The website was renovated in April 2011 to realize better
usability and accessibility based on requests from ourcustomers.

Ⅳ Your Comments and Complaints
Enhancing customer satisfaction is our constant aim. If you
experience difficulty with any procedure or have a complaint
about our services, please do not hesitate to contact us. Yourproblem will be addressed promptly.

（1）
Please visit our website for comprehensive information on
our insurance products and services.
The NEXI website includes the following information(ⅰ) Recent developme n t s ( i n cl u d i n g ch a n g e s i n
systems,
coverag e
co n d i t i o n s,andr e ce nt
underwritten proje ct s)(ⅱ)Descriptionofour
i n su r a n ce
p r o d u ct s
(pamphlets are a v a i l a b l e )(ⅲ)Terms of coverag e b y co u n t r y /r e g i o n(ⅳ)Insurance applica t i o n p r o ce d u r e s(ⅴ)Insured events a n d su b se q u e n t p r o ce d u r e s(ⅵ)Premium calculat o r(ⅶ)Downloadable ap p l i ca t i o n f o r ms(ⅷ)Rules concernin g t r a d e i n su r a n ce ( i n cl u d i n ginsurance policy p r o v i si o n s f o r a l l o f N E X I ’ s
insurance produc t s)(ⅸ)Environmental co n si d e r a t i o n s(ⅹ)Procurement info r ma t i o n(ⅺ)Web magazine “e - N E X I ”(ⅻ)WEB service（1）
We will do whatever is necessary to resolve any problem（2）
Our annual report (in Japanese and English) offers theresults of our trade insurance business and our financial
statements.
Other publications are also available, including the NEXI
corporate brochure and leaflets on our insurance products(in limited numbers). Please feel free to call the General
Management and Public Relations Group (Phone: 81(0)3-3512-7655) or the Customer Relations Desk.
（3）
For inquiries regarding our website, annual report, andany other public relations matters, please contact theGeneral Management and Public Relations Group.
(Phone: 81-(0)3-3512-7655)

project, please provide the details to the Customer

you may encounter. Please provide us with the details of
the problem and what you wish to be done. We will
immediately find the source of the problem and resolve it.
（2）
If you have any complaints about our services or ourhandling of your project, please inform the Customer
Relations Desk.
(ⅰ) For any complaints about our services, please provide thedetails to the Customer Relations Desk in writing or via
email. The Customer Relations Desk will examine yourproblem and inform you of how it will be dealt with. If it isdifficult for us to take immediate action, we will provide
the reason for the difficulty and how we intend toproceed(ⅱ)If you have any complaint about our handling of a specific
Relations Desk in writing or via email. The Customer
Relations Desk will review the details and provide theresults of its review without delay. If immediate action
cannot be taken, the Customer Relations Desk will informyou of the reason and when the problem will be resolved.

お客様窓口について
Customer
Relations Desk
（1）
NEXI has established a ＂Customer Relations Desk＂ to provide more efficient services to our customers in accordance with our customer-firstpolicy.
（2）
The Customer Relations Desk offers customer support by seeing the situation from the customer’s viewpoint. Any inquiry or request
concerning trade insurance and specific project would be appreciated. We will take prompt action regarding these matters.
Information about NEXI’s sections and groups in charge is also available on our website.

URL : https://www.nexi.go.jp/inquiry/en/
From 9:00 a.m. till noon and from 1:00 p.m. till 5:30 p.m., Monday through Friday(except holidays, year-end and New Year holidays)

30

Profile of NEXI

From the left: Keiji Wada
（Vice Chairman）, Kazuhiko Bando（Chairman and CEO）,
and Fuminori Inagaki（Vice Chairman）

Members of the Board andthe Audit Board
Chairman and CEO …………… Kazuhiko Bando
Vice Chairman ………………… Keiji Wada
Vice Chairman ………………… Fuminori Inagaki
Corporate Auditor（Full Time）… Takeshi Oiwa
Corporate Auditor（Part Time）… Takashi Imai

Takeshi Oiwa
（Corporate Auditor）

31

Takashi Imai
（Corporate Auditor）

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 104.4 billion (Fully contributed by the Japanese Government)(Unchanged from the previous year)

Number of
Full-time
Employees

137 (As of April 1, 2014)

Scope ofBusiness

1. To conduct trade and investment insurance business operations complying with the regulationsof 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 trade and investment
insurance.
4. To entrust reinsurance for the insurance obligation of NEXI under the Trade and Investment
Insurance Act to international institutions, foreign governments, or international companies
that conduct insurance business（including reinsurance）which indemniﬁes losses similar tothe losses covered by trade insurance as well as the reinsurance with the Government complying
with the regulations of Chapter 4 of the Trade and Investment Insurance Act.

Brief History

J u l. 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 and thereafter
trade and investment insurance was managed by the Ministry of Economy, Trade and Industry（former Ministry of International Trade and Industry）until the end of March 2001.

Oﬃce

Head 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 34.）

Main Insurance
Products

Export Credit Insurance / Buyer's Credit Insurance / Trade Insurance for Standing Orders fromSpeciﬁc Buyer / Export Credit Insurance for SMEs / Intellectual Property License Insurance /Overseas Untied Loan Insurance / Overseas Investment Insurance / Export Bill Insurance /Prepayment Import Insurance / Investment and Loan Insurance for Natural Resources andEnergy / Trade and Investment Insurance for Preventing Global Warming / Comprehensive
Export Insurance with Simpliﬁed Procedure

URL

http://www.nexi.go.jp

32

Organization Chart（as of April, 2014）
Planning and
Administration
Department

Chairman and CEO

General Management and Public Relations Group
Strategic Planning Group
Risk Management Group
Personnel Group

Vice Chairman

Procurement and Administration GroupAccounting Group
Treasury Group
System Administration Group
System Development GroupCounselor

Policy Strategy and Business Operation Oﬃce
Policy Strategy and Legal Group
Business Operation and Statistics Group

AuditorExaminer
Secretariat

Business
Promotion Oﬃce
Underwriting
Department

Contract Aﬀairs Group
Comprehensive Insurance Group
Overseas Investment Insurance
Underwriting Group

Compliance Committee

Statistics Committee

Reinsurance Underwriting Group

Structured and Trade
Finance Insurance
Department

Monitoring and Management GroupPower & Mining Group Ⅰ
Power & Mining Group Ⅱ
Oil & Gas Group
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

Overseas Oﬃces

Underwriting Group

NEXI, Paris
NEXI, New YorkNEXI, Singapore

33

Contact Information
Head 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

Overseas Offices
c/o JETRO 27 rue de Berri 75008 Paris France
Phone: 33-(0)1-4261-5879 Fax: 33-(0)1-4261-5049

c/o JETR0 1221 Avenue of the Americas, 42 Fl,
McGraw-Hill Bldg. New York N.Y. 10020 USA
Phone:1-212-819-7769 Fax:1-212-819-7796

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

c/o JETR0 16 Raﬄes Quay#38-05, Hong Leong Bldg.
Singapore 048581
Phone: 65-6429-9582 Fax: 65-6220-7242

NEXI,Osaka

Aioi Nissay Dowa
Insurance
Yodoyabashi Building34