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■

Message from the Chairman
financial crisis and are currently developing steadily. In
June 2009, NEXI signed a reinsurance agreement with
THAI EXIMBANK of Thailand. While we built up relations
with the heads of Asian ECAs by participating in thespecial meetings of the Asian Regional Cooperation
Group (RCG), we also held an annual training programfor Asian ECA professional staff.
In addition, partnerships with organizations
worldwide are enhanced through participation in the
Berne Union, the leading international organizationof public and private sector providers of export credit
and investment insurance. Furthermore, NEXI signed
memorandums of understanding (MOUs) with two

In this preface to the annual report for FY2009, I

institutions in Europe: Russia’s Bank for Development

would like to first express our sincerest appreciation ofand Foreign Economic Affairs (VEB) and Belarus's Joint

your understanding and support for Nippon Export andStock Company Savings Bank (Belarusbank).

Investment Insurance (NEXI) over the years.

As part of a support scheme for strategic priority

The financial crisis which started in September 2008sectors, a special framework of JPY2 trillion export

completely changed the face of global economy, which

credit insurance coverage was established to promote

until that time had remained quite stable. Subsequent

Asian infrastructure development, which is expected

funding difficulties in the interbank market andto generate demand equivalent to JPY70 trillion in thethe worldwide stock market crash caused turmoil innext five years. In accordance with the government’s

international financial markets, which also took a hugepriority policies, NEXI has continued its efforts to secure atoll on the Japanese economy. In February 2009, Japan’s

stable supply of natural resources and energy, as well as

total exports fell by 49.4% compared to the same monthto support sectors of national interest such as aircraft andof the previous year.

nuclear energy. NEXI also continues to support SMEs

At the London G20 economic summit in April 2009,that are expanding into overseas business.

the Japanese government confirmed additional support

In order to realize sustainable growth, five projects

totaling USD22 billion over the next two years, andwere underwritten under Trade and Investment

NEXI announced to take charge of USD16 billion trade

Insurance for Preventing Global Warming. Also, NEXI

finance support. In the post-crisis climate, expectations

has implemented the revised Environmental and Social

for NEXI to play the role of stabilizing the markets, byConsideration Guidelines since October 2009 to ensure

providing trade insurance in unity with the government,

appropriate consideration for projects to be covered.

became higher than ever.�

As a means to provide information and knowledge

Throughout the fiscal year, NEXI reviewed its

for those who are interested in our business, seminars

services constantly in order to further promote

on various topics related to export credits were heldinternational business. In April 2009, NEXI broadened

throughout the fiscal year.

the scope of insurance coverage for transactions by

It is now increasingly important for all of ouroverseas branches and for sales of goods held in bond. In

customers to advance into overseas markets that offer

December 2009, following the government’s Emergency

greater possibilities. NEXI will continue to support

Economic Countermeasures, NEXI raised cover ratio forcompanies that actively take up the challenge of

Buyer’s Credit Insurance and implemented a program

expanding their businesses overseas.

to ensure greater liquidity for SMEs’ insured export
receivables. NEXI strengthened its financial support forthe business of overseas subsidiaries by underwriting
approximately JPY500 billion.
Also, NEXI reinforces its cooperation with otherTakashi Suzuki
Chairman and CEO
July 2010

Asian countries that were the first to emerge from the1

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Contents

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

■ Message from the Chairman

01■ 2009 Business Overview

03■ 2009 Performance Highlights

09■ Review of Performance17■ Underwritten Projects

21■ 2009 Financial Results29■ Third-Term Objectives

35■ Customer Service Charter37■ Profile of NEXI

39

Fiscal year 2009 (FY2009) is from April 2009 to March 2010. The year “2009“ in thisannual report indicates FY2009 unless otherwise noted.

MissionManagement
Principle

NEXI will contribute to Japan's economic community by anticipating changes in the market
at all times, appropriately responding to customer needs, and efficiently and effectively
conducting insurance business in covering risks that arise in international transactions but
are not covered by regular commercial insurance.

Management
Policy1. 	NEXI, realizing its role as an incorporated administrative agency, operates its businessfrom the public standpoint and aims at being conducive to national stability and sounddevelopment of the economic community.
2. 	NEXI will observe the customer-first principle at all times, provide high-quality services byimproving its expertise, and aim at increasing customer satisfaction and building strong
trust relations with customers.
3. 	NEXI will systematically make use of its operating resources, work on quantitative andqualitative increases in the risks it underwrites, improve its profits through appropriate
risk management, and aim for long-range development.
4. 	NEXI will develop human resources and promote strengthening of staff specialty, makeuse of staff diversity, and aim at creating a liberal and lively workspace where staff feels
proud of their organization.

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2009 Business Overview
Addressing the Global Financial Crisis in a Quick and Responsible Manner
Our Global Commitment to Overcoming the Crisis

The credit crunch triggered by the global
financial crisis caused significant adverse impacts
on financial markets in developing countries,
especially in the supply of trade finance. Under suchcircumstances, the export credit agencies (ECAs) ofeach country were required to act as major public
sector providers of trade finance to fulfill theirfunction of ensuring smooth trade finance. In April
2009, the government of Japan pledged at the G20
Summit in London to provide financial support ofapproximately USD22 billion over the next two
years in addition to the ordinary short-term tradefinance support.
As part of this USD22 billion support, NEXI
announced that it would take charge of providing
at least USD16 billion by increasing short-term
insurance underwriting as well as utilizing bankloans and facilitating liquidity of receivables andloans insured by NEXI.
Specifically in June 2009, NEXI entered intoa memorandum of understanding (MOU) with
the Korea Development Bank on a trade financefacility. Under this MOU the two institutions will
start talks for the establishment of a loan facility of
up to JPY20 billion for export payments by Korea toJapanese companies.
Supporting Global Business of Japanese Companies

In May 2009, NEXI worked to increase insurance
underwriting to further support the global businessof Japanese companies by the following means.
(1) Business activities by overseas offices
In response to the increasing global activities ofJapanese companies, NEXI decided to make its
insurance more available to support the businessactivities of their overseas offices. Now NEXI’s
insurance covers the sales contracts, service
contracts, and investment loan agreements thatare concluded by the overseas offices.
(2) Insurance for supplier inventory and sales contracts
In response to increasing diversity in international

business activities, NEXI started to provide
insurance for supplier inventory and sales
contracts under which a Japanese exporter
concludes a sales contract with a local buyer
regarding the goods held in bond.
(3) Local costs included in the coverage
Responding to the globalization of overseas
business activities, NEXI’s coverage for export
contracts now includes loans to be used for thepurchase of goods and services from local or
third-country companies.
Response to Economic Measures by the Government

As part of “Emergency Economic Countermeasures
for Future Growth and Security” announced by
the government of Japan in December 2009, NEXI
decided to implement the following coverage
expansion measures.
(1) Buyer’s Credit Insurance coverage increase
The percentage of cover of NEXI’s Buyer’s Credit
Insurance has been raised to 100% from 97.5% forpolitical risk and 95% for commercial risk regarding
commercial banks’ buyer’s credit provided in cofinancing with the Japan Bank of International
Cooperation (JBIC). This improvement aims tofacilitate financing for system exports and otherprojects in various sectors including projects set up
to combat global warming, by further mitigating
commercial banks’ risks.
(2) Liquidity support for SME export receivables
Banks purchasing an SME’s export receivables
insured by NEXI are exempt from recovery
obligations assumed in the case of an insured
event. NEXI’s exemption measures are expected
to facilitate transfer of SMEs’ receivables andimprove their liquidity positions.
(3) Financial support for the activities of foreigncompanies
In FY2009, NEXI’s underwritten amount for providing
financial support to foreign companies totaled
approximately JPY500 billion. This support facility
was to be provided on a temporary basis, but has
been extended until the end of March 2011.

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Strengthening Relationships with Asian Countries
Training Program for Asian ECA Professional Staff

NEXI has been developing a reinsurance
network with Asian ECAs to support Japanesebusiness activities in Asia. In June 2009, NEXI signed
a reinsurance agreement with THAI EXIMBANK
of Thailand. NEXI had already signed reinsurance
agreements with ECICS of Singapore (April 2004),
MEXIM of Malaysia (June 2006) and ASEI of
Indonesia (March 2009). The reinsurance amountunderwritten by NEXI in FY2009 was JPY2,167 million(eight projects). NEXI will continue to strengthen
relationships with Asian ECAs to support Japanese
exports to third countries and cement economic ties
between Japan and Asian countries.

Every year Japan’s Ministry of Economy, Tradeand Industry (METI) implements a training programfor Asian ECA staff as part of “Facilitation of
Cooperation in Trade Insurance Operation” and NEXI
participates in the program as lecturers. The purposeof the program is to help further improve each
ECA’s ability and develop trade insurance systems
so that ties among ECAs can be strengthened andalso to make their insurance services more available
to Japanese companies.
The latest program was held from January 25
to February 4, 2010, with the participation of India,
Indonesia, Philippines, Malaysia, Sri Lanka, Thailand,
Kazakhstan and Uzbekistan. The major focus of the
program was on the political significance of tradeinsurance and risk assessment as a basis for the tradeinsurance business. NEXI provided an overview
of the Japanese trade insurance system, NEXI’s
insurance products, risk assessment scheme andclaims recovery. The participants asked numerous
questions, expressing strong interest in Japan’s
trade insurance program. Through this training
program, NEXI has reinforced its cooperation withthe participant ECAs.

NEXI – THAI EXIM signing ceremony

2009 Business Overview

Reinsurance Network with Asian ECAs

Asia-Pacific trade insurance network

Participation in Special Meeting of Asian ECAs

The first Special Meeting of Berne Union
Asian Regional Cooperation Group (RCG) was heldin Tokyo in November 2008, hosted by NEXI. The
second RCG meeting was held in Bangkok, Thailand
on August 6 and 7, 2009, with the participation of
top executives from the ECAs of Japan, Indonesia,
India, Australia, Hong Kong, Korea, Malaysia,
China, Sri Lanka, Taiwan and Thailand. At themeeting they exchanged information about theirfinancial support measures and reaffirmed
further cooperation among the ECAs through thereinsurance network.

Participants of the training program

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Enhancing Partnerships with Overseas Organizations
NEXI has been actively promoting mutual
cooperation with ECAs, banks, and organizations
including resource businesses to form global
networks. In FY2009, NEXI signed memorandums ofunderstanding (MOUs) with three organizations.
MOU with VEB

NEXI had supported exports to Russia andinfrastructure projects in the country through Bankfor Development and Foreign Economic Affairs(VEB), Russia’s wholly state-owned corporation.
NEXI supported Japanese exports via global bankloans to VEB and specifically in 2007 and 2009 NEXI
provided Overseas Untied Loan Insurance regarding
loans to VEB for the construction of Terminal 3
at Sheremetyevo Airport in Russia. In May 2009,
NEXI signed an MOU to further strengthen tradeand investment relations with VEB. This MOU is
expected to lead to mutually beneficial economic
relations between Japan and Russia in projects
related to infrastructure, natural resources, industry
and energy conservation.

MOU with SINOSURE

NEXI has promoted reinsurance agreementswith public ECAs in the Asia-Pacific region todevelop the “Asia-Pacific Trade Insurance Network,”
which Japan proposed at the APEC Peru Meeting
held in November 2008. As part of the promotion
activities, NEXI signed an MOU with China Export& Credit Insurance Corporation (SINOSURE) in
November 2009 regarding future cooperation in
the fields of reinsurance and claims recovery. China
is one of the most important production bases andmarkets for Japanese companies, and they aresteadily expanding their business in China. Under
this MOU Japanese companies located in China
are expected to receive trade insurance support
for third country exports. NEXI and SINOSURE areplanning to conclude an agreement on reinsurance
and claims recovery based on the MOU.

Mr. Suzuki, NEXI Chairman with President of SINOSURE at the signing ceremony

MOU with Belarusbank

Mr. Konno, former NEXI Chairman with Chairman of VEB at the signingceremony

Signing ceremony between NEXI and Belarusbank

On December 1, 2009, NEXI signed an MOU with
Joint Stock Company Savings Bank (Belarusbank),
the largest government-owned financial institution
in the Republic of Belarus, regarding cooperation inpromoting trade and investment between the twocountries. The MOU aims to establish a frameworkof cooperation to promote trade and investment
projects between the two countries and strengthen
information exchange and a cooperative structure.
NEXI and Belarusbank are planning to exchange
views on export credit, visit each other, andimplement joint training programs.

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Contributing to Discussions at Berne Union Meetings

Spring Meeting in Istanbul

The Spring meeting of 2009 was held in
Istanbul, Turkey, from May 4 to 6 in the midstof the global financial crisis. Under increased
expectations for ECAs to function as safety nets inthe turbulent market, members exchanged opinions
on the impacts of the crisis on the market and on
measures taken by each ECA. In addition to regularspecialist discussion committees of the Short Term
Committee, the Medium/Long Term Committee
and the Investment Committee, the All-Member
Day meeting was introduced to provide a forum
for exchange on cross-cutting topics common to allcommittees.

Annual General Meeting in Seoul2009 Business Overview

The Berne Union (BU), the International Unionof Credit and Investment Insurers, is a forum where
ECAs in various countries exchange information oncommon issues related to export credit insurance
and investment insurance. The name comes from
Berne, Switzerland, where the ECAs of U.K.,
France, Italy and Spain gathered in 1934 to holdtheir first meeting. As of April 2010, there are 50
member institutions (38 countries, 2 regions, and 2international institutions). Main activities involve
biannual meetings in spring and autumn where
members exchange opinions on coverage policies,
specific projects, credibility of overseas buyers andother current issues.

The annual general meeting of 2009 was heldin Seoul, Korea, from October 12 to 16 with evenmore participants than in a usual year as it marked
the 75th anniversary of the establishment of BU.
With the financial crisis ongoing despite some signsof recovery, the discussion on the ECA’s role andinitiatives under the difficult conditions followedon from the May meeting. In the wake of twoconsecutive special meetings of the Asian Regional
Cooperation Group (RCG) in 2008 and 2009, Asian
ECAs actively contributed to the discussion.
The former chairman of NEXI served aspresident of the BU for two years from October
2007. During his term of office, such initiatives asdevelopment of Guiding Principles as new BU rules
were undertaken. The initiatives increased thesocial significance of the BU while contributing togreater solidarity within the union.

BU meeting in Seoul

Mr. Konno, then president of the BU, and the president of the host institution
Turk Eximbank

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Supporting Strategic Priority Sectors
Promoting Asia's Infrastructure Development

Securing a Stable Supply of Natural Resources and Eenergy

Infrastructure in Asia is expected to generate
enormous demand in coming years. Therefore,
development in this sector in cooperation with
Asian countries is considered to be vital. In April
2009, the Japanese government announced theestablishment of a special framework of export
credit insurance coverage of JPY2 trillion in order tosteer private investment into Asia’s infrastructuredevelopment. By underwriting insurance for exportof equipment and services as well as investments
and loans from Japanese companies to Asian
infrastructure projects, NEXI supports infrastructuredevelopment in Asia. So far, we have underwritten
thermal (such as coal-fired) and hydropower plant
projects and an international airport upgrade
project.

NEXI created Investment and Loan Insurance
for Natural Resources and Energy in April 2007
in response to the government’s priority policyof securing a stable supply of energy and natural
resources for Japan. NEXI underwrote five projects
in 2009, including the Sakhalin II Phase 2 Projectin Russia, the Karebbe Hydropower Project being
carried out by PT INCO in Indonesia, and the LNG
Project in Papua New Guinea.

Supporting International Development of SMEs

In order to support the international businessdevelopment of SMEs, Export Credit Insurance for
SMEs was established in April 2005. The numberof underwritten cases in FY2009 was 352 (JPY646
million), an increase of 30% compared to theprevious fiscal year.
We decided to continue with the program ofproviding our SME customers with buyer credit
information free of charge (information of up
to three buyers), which was initially introducedin October 2008 for a limited time period. This
program had been utilized on 424 occasions as ofthe end of FY2009.
Furthermore, regarding insured export
receivables of SMEs, we have facilitated theirpurchase by banks by exempting the insured
from the debt collection obligation at the time ofassignment, thereby supporting the financing of
the SMEs.

Support for Aircraft and Nuclear Energy Sectors

In the aircraft sector, NEXI is providing
reinsurance to US EXIMBANK to support the export
of Boeing aircraft jointly developed by a Japanese
heavy industries company and a U.S. aircraft
manufacturer. In 2009, we provided reinsurance forthe export of 16 aircraft destined for five airlines,
reaching a total of 89 aircraft underwritten with 20
airlines and leasing companies since the conclusionof the reinsurance agreement with US EXIMBANK
in 2004. We are also actively engaged in our
support for acquiring orders for Japan-made small
passenger planes (MRJ).
In the nuclear energy sector, we held discussions
via the US-Japan Nuclear Energy Steering Committee
on such issues as the support scheme in cooperation
with the U.S. Department of Energy (DOE) in
order to consider support measures for Japanese
exporters.

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Working Toward Sustainable Growth

Trade and Investment Insurance for Preventing
Global Warming was created as part of the efforts
to contribute to reducing greenhouse gas emissions
through the transfer of Japan’s energy conservation
technology and new energy technology. In FY2009,
we underwrote five projects including a sulfuric
acid plant construction project for uranium
development in Kazakhstan and a reforestation
project in Vietnam.
Implementing the Revised Environmental and Social Consideration Guidelines

In view of increased awareness of environmental
issues, NEXI revised the Environmental and Social
Consideration Guidelines in Trade Insurance in July2009 to be implemented in October of the same

year. In the course of the revision, we held fourteen
open consultation meetings jointly with JBIC, which
has similar environmental guidelines, and we
had discussions with a wide range of participants
including industry groups, private enterprises,
NGOs, researchers, governmental organizations
and individual citizens as well as soliciting opinions
through public comment. As a result, we clarified
the international standards such as those of
the World Bank benchmarked for project in theguidelines, enhanced the process of verifying
whether environmental and social measures havebeen properly taken, and improved information
disclosure. We will continue to verify whether
appropriate environmental and social measures
based on the Guidelines are taken for projects tobe covered by our insurance.

2009 Business Overview

Trade and Investment Insurance for Preventing Global Warming

Providing Information through Seminars
Seminars on Trade Insurance

Providing Knowledge through Seminars on Anti-Bribery Issues

NEXI holds annual seminars on trade insurance
services. Seminars cover essential information on
the trade insurance system, credit control, claims
payment, debt recovery and specific products. In
June 2009, seminars were held in Tokyo, Osaka andNagoya. Over 400 people participated including
first-time users of trade insurance.

NEXI makes efforts as an official ECA toprevent bribery when providing support. In June
2009, as part of NEXI’s information activities,
NEXI and a U.S. law specialist from the law firm
O'Melveny & Myers LLP jointly gave an explanatory
presentation on U.S. Foreign Corrupt Practices
Act (FCPA) at the Research Institute of Economy,
Trade and Industry (RIETI). About 100 people frompublic and private institutions participated in
the seminar. In October, we also gave a lectureon the same content at Chiyoda Corporation’s
Intensive Compliance Campaign Month seminar to
approximately 70 participants.

Seminars on Debt Recovery

NEXI regularly holds debt recovery seminars. In
November 2009, about 120 people took part in theseminar held in Tokyo. Based on the strong desire
expressed by our customers, a guest lecturer froman international law firm explained the system ofdebt recovery in light of regional characteristics,
with a focus on debt recovery and dispute resolution
cases in China and Southeast Asia.

Trade Insurance Seminar (Tokyo)

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2009 Performance Highlights
Economic Trends
Japan’s economy in FY2009 reﬂected the global recession that started with the financial
crisis of the previous fiscal year. Exports fell 17.1% to JPY59.0 trillion, marking a decrease fortwo consecutive years. Exports to North America and EU dropped 22.5% and 27.5%, respectively.
Looking at specific sectors, exports of cars and steel have significantly decreased.

[Japan’s exports]
Total Exports
Year-on-year change (%)(Millions of yen)

2005
68,290,157
10.6

2006
77,460,585
13.4

2007
85,113,381
9.9

2008
71,145,593(16.4)

2009
59,012,559(17.1)(Source: Trade Statistics, Ministry of Finance)

Trends of the Trade and Investment Insurance Program(Billions of yen)(Billions of yen)

Note: The amount is based on cash.

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Underwritten Amount2009 Performance Highlights

The total underwritten amount in FY2009 decreased 15.7% to JPY8.2 trillion compared to theprevious fiscal year.
(Fiscal Year)(Trillions of yen)

Underwritten Amount by Insurance TypeIn a breakdown by insurance type, the share of
Export Credit Insurance in the total underwritten
amount decreased from 85.8% for the previous fiscal
year to 76.0%, following the decline in exports causedby the crisis and ensuing global economic downturn.
On the other hand, the share of Overseas Untied Loan
Insurance increased from the previous 10.1% to 19.6%,
due to a substantial increase in the need for working
capital to support overseas subsidiaries and coverage forlarge-scale natural resources projects.

Underwritten Amount by Region
In a breakdown by region, coverage for Asiantransactions was the largest with JPY3.6 trillion, or
41.3% of the total amount, followed by Central America
at 11.8% and Europe at 11.3%.

Top Ten Countries and Regions of Underwritten Amount in FY2009(Millions of yen)

OrderCountry/Region

1
2
3
4
5

China
Panama (ﬂag of convenience vessel)
U.S.A
Korea
Indonesia

Underwritten
Composition(%)
amount795,7319.1
793,498
9.1
629,966
7.2
580,194
6.6
477,026
5.5

Underwritten��������
Order Country/Region
Composition(%)
amount6
Russia339,376
3.9
7
Thailand
303,429
3.5
8
United Arab Emirates
291,001
3.3
9Singapore
281,156
3.2
10
Hong Kong
261,704
3.0

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Outstanding Commitment (As of fiscal year end)
Total outstanding commitment at the end of FY2009 decreased 5.1% to JPY11.4 trillion
compared to the previous fiscal year.

(Fiscal Year)(Trillions of yen)

Outstanding Commitment by Insurance TypeIn a breakdown by insurance type, outstanding
commitment for Export Credit Insurance was the largest
at JPY8 trillion, or 69.5% of the total amount. Overseas
Untied Loan Insurance followed at JPY2 trillion, or
17.7%. While outstanding commitment of Export Credit
Insurance decreased 14.7% compared to the previous
fiscal year, Overseas Untied Loan Insurance increased
62.8%.

Outstanding Commitment by Region
In a breakdown by region, outstanding commitment
for Asia was the largest at JPY4.3 trillion, or 36.4% of
the total amount. The Middle East followed at JPY2.5
trillion, or 21.4%.

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Premium Income

2009 Performance Highlights

Premium income for FY2009 increased 6.4% to JPY40.2 billion compared to the previous fiscal
year.

(Fiscal Year)(Billions of yen)

Premium Income by Insurance TypeIn a breakdown by insurance type, in a similar trend to that of the underwritten amount,premium income for Export Credit Insurance dropped to 33.8% of the total amount, while Overseas
Untied Loan Insurance increased to 53.3%

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Insurance Claims Paid
Claims paid for FY2009 decreased 39.2% to JPY10.4 billion compared to the previous fiscal
year. This is because the claim payment for political events substantially decreased, due to factors
such as fewer events related to remittance delays in Cuba.

(Fiscal Year)(Billions of yen)

Insurance Claims Paid by Region

Political/Commercial Risk

Political Risk

Commercial Risk

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

OrderCountry/Region

Total

1

Hong Kong

3,754

0

3,754

2

Cuba

2,675

2,675

0

3

Taiwan

1,948

0

1,948

4

Brazil

644

6

638

5

Argentina

550

550

0

Political Risk

Commercial Risk

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Insured Events in 20092009 Performance Highlights

Insured Events by Risk ---Year-on-Year Changes---(Millions of yen)

The number of commercial risk events in FY2009

Type of Risks

continued to be high, surpassing the result for FY2008 when
the number of insured events soared following the financial
and economic crisis in the second half of the fiscal year. Whilecommercial risk events in FY2008 after the crisis were spread

Occurrenceof
Events2008

2009

Year-on-YearchangeCommercial
Risk Events

30,351 36,043 18.8%

Political
Risk Events

30,0459,034 (69.9%)60,396 45,076 (25.4%)

across a wide range of areas worldwide, the greater part of

Total

insured events in FY2009 was due to large-scale defaults by

Commercial
Risk Events

301

7,173 2283.1%

Political
Risk Events

16,8583,268 (80.5%)

a number of buyers. On the other hand, political risk events
significantly decreased compared to FY2008, causing the total

Claims Paid

number of insured events to be 20% lower than FY2008.
Claims payments for commercial risk events in FY2009

Total

17,159 10,441 (39.2%)

soared because claims for the insured events that occurredin the second half of FY2008 concentrated. On the other
hand, claims payments for political risk events significantly
decreased, as payments for events related to remittancedelays in Central America were mostly settled.

Changes in Amount of Insured Events and Claims Paid (From FY2007 to FY2009)
Political Risk Events(Millions of yen)

Commercial Risk Events(Millions of yen)

Occurrence of Insured Events by Region
In FY2009, the majority of commercial risk events continued to occur in Asia (including the Middle
East) and South America.
Political risk events were spread across all regions except Europe and Oceania, but the principal causesof most of the insured events were “remittance delay” in Central America and “other reasons” in SouthAmerica.
Amount of Insured Events by Region (FY2009)
Political Risk Events(Millions of yen)

Commercial Risk Events(Millions of yen)

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Recoveries
Recoveries for FY2009 saw a large decrease of 51.0% to JPY20.5 billion compared to theprevious fiscal year. This is because countries that rescheduled their debt successfully maderepayment and the amount to be recovered has decreased as a result.

(Fiscal Year)(Billions of yen)

Recoveries by Risk

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2009 Performance Highlights

Implementation of Confirming Environmental
and Social Considerations
Environmental and Social Considerations in Trade Insurance(1) Environmental and Social Considerations in Trade Insurance
NEXI confirms whether appropriate environmental and social considerations are being addressed inprojects that may be covered by NEXI’s insurance, in accordance with the "Guidelines on Environmental
and Social Considerations in Trade Insurance" (established April 1, 2001). Specifically, projects are screened,based on the screening forms submitted by insurance applicants, and classified into three categories A, B,
or C in descending order of level of impact. The environmental impact of the projects is examined basedon the classification results. For example, on-site visits are conducted for "Category A" projects.
NEXI has also adopted the system of "Objection Procedures" and accordingly appoints an examiner
who works under the direct control of the Chairman & CEO and independent of the section in charge ofthe underwriting business in order to ensure compliance with the Guidelines.

(2) Implementation results in FY2009
The number of projects screened in FY2009 was almost the same as the previous fiscal year. However,of the total number of screenings the number of category A projects increased from 6.4% for the previous
year to 18.0%. We have made even greater efforts to ensure accuracy in the examination.

Number of Screenings
Conducted[ Percentage of Screening in FY 2009 ][ Percentage of Screening in FY2009 by Region ]16

NEXI_AR_e.indd 16

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Review of Performance1

Underwritten AmountUnderwritten Amount by Insurance TypeType of Insurance(Millions of yen)

FY2005

FY2006

FY2007

FY2008FY2009

Export Credit Insurance

11,499,704

14,290,499

9,084,734

8,344,955

6,231,455

76.0

One year or less

6,923,764

8,284,634

4,174,931

3,679,428

2,747,597

33.5

More than one year

4,575,940

6,005,865

4,909,803

4,665,528

3,483,858

42.5

Buyer’s Credit Insurance

106,659

60,80583,62641,33591,382

1.1

Export Bill Insurance

38,13232,75829,17825,886

19,986

0.2

0

0

0

0

0

0.0

Prepayment Import Insurance

2,004

14

889

345

107

0.0

Overseas Investment Insurance

156,848

271,949

155,228

281,717

213,193

2.6

Overseas Untied Loan Insurance

505,094

189,732

101,905

984,806

1,606,754

19.6

Trade Insurance for Standing Order from Specific Buyer

7,786

3,436

7,405

5,928

9,653

0.1

365

511

370

444

646

0.0

11,101

29,742

57,71041,552

25,8850.3

12,327,692

14,879,447

9,521,044

9,726,968

8,199,062

100.0

Export Bond Insurance

Export Credit Insurance for SMEs
Reinsurance
Total

Composition (%)(Note 1) The total is based on the actual underwritten amount calculated by applying the exchange rate of the date of contract, not based on methods for responding to theexchange rate.
(Note 2) In accordance with the BU rules, export credit insurance with credit terms of more than one year includes figures on insurance for most capital goods, even if the credit
period is one year or shorter.

Underwritten Amount by Region(Millions of yen)

Region

FY2005

FY2006

FY2007

FY2008FY2009Composition (%) Year-on-year change (%)

Asia

4,126,797

5,100,905

4,817,700

4,437,621

3,604,10641.3(18.8)

Middle East

2,170,641

2,593,955

1,343,178

1,220,586

793,3809.1(35.0)

Europe2,313,287

2,695,518

1,227,274

1,284,625

987,617

11.3(23.1)

North America

2,971,894

3,718,850

634,598

617,350

842,520

9.7

36.5

Central America

749,609910,831976,957

1,147,354

1,029,527

11.8(10.3)South America

380,844

402,995

484,212844,275

363,382

4.2(57.0)

Africa430,946

601,891

640,785

739,050

526,435

6.0(28.8)

Oceania

531,051

560,916

228,385

251,302463,329

5.3

84.4

International Organizations

168,531

74,66066,10058,023

106,123

1.2

82.9(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) and post-shipment (country of the payer).
(Note 3) Central Asia is included in Asia. (The same applies hereafter.)(Note 4) Central and Eastern Europe and Russia are included in Europe. (The same applies hereafter.)

17

NEXI_AR_e.indd 17

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2

Outstanding Commitment (As of fiscal year end)
Outstanding Commitment by Insurance TypeType of Insurance(Millions of yen)

FY2005

FY2006

FY2007

FY2008FY2009

Export Credit Insurance

6,865,294

8,746,616

9,452,265

9,336,297

7,959,765

69.5

One year or less

1,148,924

1,588,502

2,296,544

2,396,838

2,022,794

17.7

More than one year

5,716,370

7,158,114

7,155,721

6,939,458

5,936,971

51.9

852,912

828,740

658,789

524,937

500,438

4.4

Export Bill Insurance

7,855

7,310

7,849

6,373

4,992

0.0

Export Bond Insurance

5,648

383

0

0

0

0.0

Prepayment Import Insurance

2,113

14

589

345

107

0.0

Overseas Investment Insurance

461,490

635,840

666,499

809,504

790,936

6.9

Overseas Untied Loan Insurance

1,046,441

1,139,627

820,981

1,247,619

2,030,689

17.7

Trade Insurance for Standing Order from Specific Buyer

8,576

9,518

8,514

10,554

11,952

0.1

Export Credit Insurance for SMEs

110

105

67

83

161

0.0

17,841

58,83991,129124,769

147,313

1.3

9,268,280

11,426,992

11,706,683

12,060,482

11,446,354

100.0

Reinsurance
Total

Review of Performance

Buyer’s Credit Insurance

Composition (%)(Note 1) The total is based on the exchange rate of each fiscal year-end.
(Note 2) In accordance with the BU rules, export credit insurance with credit terms of more than one year includes figures on insurance for all capital goods, even if the credit period
is one year or shorter.

Outstanding Commitment by Region(Millions of yen)

Region

FY2005

FY2006

FY2007

FY2008FY2009Composition (%)

Asia3,613,667

4,318,977

5,033,273

4,852,423

4,305,435

36.4

Middle East

2,447,143

3,506,244

3,391,304

3,228,462

2,531,022

21.4

Europe1,070,816

1,160,782

961,229

1,133,428

1,237,234

10.4

North America

559,228

746,514

485,556

616,611

869,422

7.3

Central America

755,131680,694

674,646

681,062735,762

6.2

South America

540,260

577,912581,118

788,489

750,377

6.3

Africa254,352

400,279

564,374

796,105

903,281

7.6

Oceania

152,107

191,673

177,410249,099

349,574

3.0International Organizations

175,016

154,641

159,662

95,667

158,757

1.3(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) and post-shipment (country of the payer).
(Note 3) Transactions guaranteed by an international organization are reported separately.

18

NEXI_AR_e.indd 18

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3Premium Income
Premium Income by Insurance Type(Millions of yen)Type of Insurance

FY2005

FY2006

FY2007

FY2008FY2009

Export Credit Insurance

21,772

24,49923,977

17,70813,59633.8(23.1)One year or less

18,891

8,216

7,315

4,786

3,866

9.6

(19.2)

More than one year

2,881

16,284

16,662

12,922

9,730

24.2

(24.5)

2,850

1,004

739

1,422

1,155

2.9

Export Bill Insurance

323

268

245

221

184

0.5

Export Bond Insurance

0

0

0

0

0

0.0

(20.8)(16.8)-

Prepayment Import Insurance

9

0

4

3

1

0.0

Overseas Investment Insurance

2,488

2,385

2,145

2,669

2,956

7.4

(81.5)
10.8

Overseas Untied Loan Insurance

12,472

8,930

7,334

14,592

21,425

53.3

46.8

107

86

194

196

283

0.7

44.4

Buyer’s Credit Insurance

Trade Insurance for Standing Order from Specific Buyer

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

Export Credit Insurance for SMEs

68

6

4

5

6

0.0

30.1

Reinsurance

223

702

1,527

953

597

1.5

40,31137,88036,171

37,76940,203100.0(37.3)
6.4

Total

4

Insurance Claims Paid
Insurance Claims Paid by Insurance Type and by Risk
Type of Insurance(Millions of yen)

CompoFY2005
FY2006
FY2007
FY2008FY2009sitionPolitical
Commercial
Political
Commercial
Political
Commercial
Political
Commercial
Political
Commercial
Total Risk
Total Risk
Total Risk
Total Risk
Total Risk
Risk
Risk
Risk
Risk
Risk
(%)

Export Credit Insurance 2,961 1,256 1,704 2,185 1,751

434 3,667 2,438 1,229 17,124 16,858

266 9,591 3,268 6,323 91.9

Buyer’s Credit Insurance

0

0

0

0

0

0

0

0

0

0

0

0

97

0

97

0.9

Export Bill Insurance

54

1

53

124

0

124

66

0

66

31

0

31

187

0

187

1.8

Export Bond Insurance

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

Prepayment Import Insurance

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

Overseas Investment Insurance

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

Overseas Untied Loan Insurance

652

652

0

118

118

0

57

57

0

0

0

0

0

0

0

0.0

Trade Insurance for Standing Orders from Specific Buyer

2

0

2

0

0

0

2

0

2

4

0

4

429

0

429

4.1

Export Credit Insurance for SMEs

11

0

11

5

0

5

6

0

6

0

0

0

0

0

0

0.0

Reinsurance
Total

0
0
0
0
0
3,680 1,909 1,770 2,431 1,869

0
0
0
0
0
0
562 3,800 2,495 1,305 17,159 16,858

0 137
0 137
1.3
301 10,441 3,268 7,173 100.0

Insurance Claims Paid by Region
RegionAsia(Millions of yen)

CompoFY2005
FY2006
FY2007
FY2008FY2009Commercial
Political Commercial
Political Commercial
Political Commercial
Political Commercial sition
Total Political
Total
Total
Total
Total
Risk
Risk
Risk
Risk
Risk
Risk
Risk
Risk
Risk
Risk
(%)
1,436
60 1,375 189
0 189 631
0 631 235
0 235 5,971
0 5,971 57.2

Middle East

1,052

969

83

40

0

40

0

0

0

0

0

0

237

0

237

2.3

Europe

16

1

15

118

0

118

517

0

517

7

0

7

150

0

150

1.4

North America

50

40

11

65

65

0

94

44

49

23

13

9

38

35

3

0.4

Central America

269

0

269

50

3

47

90

0

90 15,547 15,497

50 2,680 2,677

South America

745

727

18 1,753 1,684

69 2,396 2,393

3 1,347 1,347

0 1,207

Africa

112

112

0

162

118

44

57

57

0

0

0

0

0

0

0

0.0

Oceania

0

0

0

56

0

56

15

0

15

1

0

1

158

0

158

1.5

Total

3,680 1,909 1,770 2,431 1,869

562 3,800 2,495 1,305 17,159 16,858556

3 25.7651 11.6

301 10,441 3,268 7,173 100.0

19

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5Recoveries
Recoveries by Risk

(Millions of yen)Type of Risks

FY2005

FY2006

FY2007

FY2008FY2009225,745

235,065

54,28440,393

17,451

Commercial Risk

2,993

12,247

3,181

1,462

3,064

Total Recoveries

228,739

247,31257,46541,855

20,515

Recoveries by Region
Region(Millions of yen)

FY2005

FY2006

FY2007

FY2008FY2009Composition (%)

Year-on-year change (%)

Asia

11,54823,874

7,451

6,354

8,397

40.9

32.2

Middle East

1,836

2,112

2,520

1,404

1,342

6.5

(4.4)

Europe90,046

100,373

31,96725,349

2,515

12.3

(90.1)

North America

0

0

0

1

0

0.0

(41.2)

Central America

2,360

3,051

2,483

480

571

2.8

19.0

South America

33,53835,435

6,882

2,230

1,705

8.3

(23.5)

Africa89,41082,466

6,160

6,037

5,985

29.2

(0.9)

Oceania

0

0

3

1

0

0.0

(100.0)228,739

247,31257,46541,855

20,515100.0(51.0)

Total

Review of Performance

Political Risk

Recoveries by Region

Recoveries in FY2009

In a breakdown by region, recoveries from Asia
were the largest with JPY8.4 billion, or 40.9% of thetotal recoveries, an increase of 32.2% compared tothe previous fiscal year. Major recoveries by country

Recoveries by Risk
Recoveries for FY2009 were JPY20.5 billion,a decrease of JPY 21.4 billion (51.0%) from the
JPY41.9 billion of the previous fiscal year.

include JPY4.6 billion from Indonesia, JPY1.8 billion
from Taiwan, JPY1 billion from Myanmar, and JPY0.9
billion from Singapore.
Recoveries from Africa were the second

In a breakdown by type of risk, recoveries

largest with JPY6 billion, decreasing 0.9% from therelated to political risk due to reschedulingprevious fiscal year, and comprising 29.2% of theaccounted for 85.1% (JPY17.5 billion) of the total

total recoveries. By country, the largest recoveries

recoveries, with those related to commercial risk

were JPY5.2 billion from Egypt, followed by JPY0.6

comprising the remaining 14.9% (JPY3.1 billion).

billion from Angola.

In a breakdown by country, the five largest

Recoveries from Europe were JPY2.5 billion

recoveries were JPY5.2 billion from Egypt (JPY4.9(JPY1.7 billion from Poland and JPY0.6 billion

billion in the previous fiscal year), JPY4.6 billion

from Serbia), and South America were JPY1.7

from Indonesia (previously JPY4 billion), JPY1.7

billion (JPY0.9 billion from Argentina and JPY0.5

billion from Poland (previously JPY23.7 billion),billion from Ecuador). Recoveries from the Middle

JPY1.3 billion from Jordan (previously JPY1.4

East were JPY1.3 billion, which mainly comprised

billion), and JPY1 billion from Myanmar (previously

recoveries from Jordan. Cuba accounted for the

JPY1 billion). These five countries accounted forlarge part of the JPY0.6 billion recoveries from

66.9% of the total recoveries.

North and Central America.

0

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Underwritten Projects

Asia
Papua New Guinea

PNG LNG Project
Papua New Guinea's first Liquefied NaturalGas (LNG) project will be undertaken by Nippon Oil
Exploration (Japan), ExxonMobil (US), Oil Search (Papua
New Guinea), Santos (Australia), and the government ofPapua New Guinea. Natural gas from land and offshore
gas fields is to be transported through pipelines
to the LNG plant near the capital Port Moresby forliquefaction. About 6.6 million tons of LNG is expected
Photograph courtesy of Oil Search Limited

to be produced and exported annually, 50% of which
will be exported to Japan.

Loan Insurance for Natural Resources and Energy.

This first LNG project will have an enormous impact

NEXI’s contribution will provide financial support

on the economy of Papua New Guinea, with current

for the development and diversification of supply

gas exports expected to quadruple, causing the GDP tosources in the aim of realizing stable LNG procurement,

double.

and will also encourage Japanese companies to further

Japanese financial institutions including Sumitomodevelop resources.

Mitsui Banking Corporation provided loans totaling
USD950 million, and NEXI underwrote Investment and

The insurance contract was entered into in February 2010.

Indonesia

Tanjung Priok Gas-Fired Combined
Cycle Power Plant Project
PT PLN (Persero), a state-owned electricity company
in Indonesia, will construct a new gas-fired combined
cycle power plant as well as enhance auxiliary substationand transmission facilities in the existing Tanjung Priok
power plant, utilizing yen loan funds.
This project aims to improve power generation
capacity and to stabilize electricity supply in Indonesia

Rendering of the finished power plant

where a severe power shortage continues. The newhigh-efficiency 740MW natural gas-fired gas turbine

The equipment is manufactured by Mitsubishi Heavy

combined cycle (GTCC) power plant generates electricity

Industries, LTD. and Mitsubishi Electric Corporation

with a gas turbine, and the waste heat produced in theamong others.

process is used to generate additional electricity via a

NEXI’s support for this project will contribute tosteam turbine. This will lead to effective energy use andthe promotion of equipment export by Japanese tradinga reduction in greenhouse gas emissions in Indonesia.

and manufacturing companies, while improved stability

NEXI has underwritten Export Credit Insuranceof the power supply in Indonesia will lead to a betterfor an export and service contract undertaken by

investment environment for Japanese enterprises in

Mitsubishi Corporation for this project (total �ofthis country.

approximately JPY48.6 billion) including the export ofF-type gas turbines and heat recovery steam generators.

The insurance contract was entered into in November 2009.

1

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Middle East
United Arab Emirates

Integrated Gas Development(IGD) Project
Underwritten Projects

Abu Dhabi Gas Industries Ltd. (GASCO), a groupcompany of Abu Dhabi National Oil Company (ADNOC),
UAE, has implemented a large-scale gas processing
project in Habshan, Abu Dhabi.
Habshan 5 Process Plant is to process associatedgas which becomes available as a result of expansion of
offshore HP gas and onshore oil production. The Projectwill enhance the hydrocarbon chain by additional salesgas, naphtha, LPG and sulphur production at Habshan.

provided Export Credit Insurance for the JGC portion.

As one of the national priority projects of the UAE, it

NEXI’s support will help strengthen relations

aims to meet the increased demand for electric power

between Japan and the UAE, one of Japan’s most

within the Emirates.

important oil suppliers.

JGC

Corporation

of

Japan

and

its

partner

Tecnimont S.p.A. of Italy were awarded the contact to

The insurance contract was entered into in November 2009.

provide the engineering, procurement, construction
and commissioning of the gas processing facilities. NEXI

TurkeyProject for Export of a Bulk Carrier to
YASA Shipping Industry & Trading S.A.
In December 2009, NEXI and the Japan Bank forInternational Cooperation (JBIC) established a JPY10
billion credit line for ship exports to Turkiye Is Bankasi
A.S. (Isbank), the largest private commercial bank in the
Republic of Turkey.
YASA Shipping Industry & Trading S.A., a major
shipping company in Turkey, was the first company toutilize financing through Isbank under this framework
to purchase from Mitsui & Co., Ltd. a 56,000 DWT typebulk carrier built by Mitsui Engineering & Shipbuilding
Co., Ltd.
NEXI has underwritten Buyer's Credit Insurance
for the portion of the funds extended by the Bank ofTokyo-Mitsubishi UFJ.
NEXI’s contribution will financially support ship
exports by Japanese companies and will spur businessin the shipbuilding industry in Japan.
The insurance contract was entered into in January 2010.



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Europe
RussiaSakhalin Ⅱ Phase 2 Project
The Sakhalin II Phase 2 Project has been implemented
to produce crude oil and LNG (liquefied natural gas)from the oil and gas field off the north-eastern shoreof Sakhalin Oblast, and export these products globally
including Japan. The project is operated by Sakhalin
Energy Investment Company Ltd. (SEIC), sponsoredby Mitsui & Co Ltd., Mitsubishi Corporation, Gazprom
OAO (Russia), and Shell Petroleum N.V. (Netherland and
U.K.)
SEIC acquired a new loan of USD1.4 billion fromfinancial institutions, the remainder of the funds SEIC

enhance the stability and economic efficiency of the
project.

had planned to acquire first. The new loan will be

A large part of the oil and LNG produced in thisused for building facilities such as offshore platforms,

project will be exported to Japan, which will contributepipelines and a natural gas liquefaction plant. NEXI

to the secure supply of energy resources to Japan.

underwrote Investment and Loan Insurance for Natural
Resources and Energy for this new fund. NEXI’s support

The insurance contract was entered into in October 2009.

enabled SEIC to realize the initial financing plan andKazakhstan

Sulfuric Acid Plant
Construction Project
Mining Company LLP (MCLLP) in Almaty, Kazakhstan
has established a project company to construct a sulfuric
acid plant. MCLLP is a subsidiary of Kazatomprom, astate-owned nuclear fuel enterprise in Kazakhstan.
The sulfuric acid produced at the new plant,
construction of which will be completed in the second
half of 2011, will be injected into underground uranium
deposits to mine and recover uranium. Kazakhstan has
the world’s second largest uranium reserves and withdeposits that have been invested by Japanese power

an increase in uranium production, demand for sulfuric

companies. NEXI’s contribution to the project has helped

acid has also increased. This project is expected tostrengthen relations between NEXI and Kazatomprom

contribute to steady increase in uranium production.

that is engaged in production and export of uranium

Japanese banks including ING Bank N.V. Tokyoin Kazakhstan. NEXI’s support is also expected to help

Branch made loans to the project company of MCLLP

stabilize uranium production, which will lead to a moreand NEXI provided Overseas Untied Loan Insurance forstable uranium supply to Japan.

their 30 million euro investment.
About 80 percent of the sulfuric acid produced

The insurance contract was entered into in August 2009.

in the plant will be supplied to Kharassan uranium

3

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Denmark

Bulk Carrier Export Project for
J. Lauritzen A/S
Underwritten Projects

J. Lauritzen A/S, a major shipping company inDenmark, entered into ship purchase agreements withJapanese companies including Mitsui & Co., Ltd., andNamura Shipbuilding Co., Ltd. regarding the purchaseof six bulk carriers to be built by Japanese shipyards
including Imabari Shipbuilding Co., Ltd. and the
Hakodate Dock Co., Ltd.
Société Générale, Tokyo Branch and Bank of TokyoMitsubishi UFJ signed a JPY15.5 billion loan agreement

has changed drastically since the crisis, NEXI is actively

with J. Lauritzen A/S to finance the purchase of the bulk

supporting

carriers. NEXI provided Buyer’s Credit Insurance as “purecompanies that have a reputation for high-quality

cover,” a support provided by NEXI on a stand-alone

technology by providing insurance for loans extended

basis that is applicable to Japanese exports destined toto foreign ship buyers.

exports

fromJapanese

shipbuilding

developed countries.
In response to the current financial climate that

The insurance contract was entered into in March 2010.

4

NEXI_AR_e.indd 24

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Central America / South America
MexicoPacifico Coal Thermal Power Plant
project
Carboelectrica Diamante, S.A. de C.V. (CDSA),
established by Mitsubishi Corporation in Mexico,constructed a 648 MW thermal power plant for Comisión
Federal de Electricidad (CFE), the Mexican state-owned
power company. The plant started commercial operationin March 2010. Mitsubishi Corporation and Mitsubishi
Heavy Industries Ltd. had exported major equipment

Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking

for the plant construction through their consortium.

Corporation) provided a loan to CFE to be used for

In 2007 Mexico’s President Calderon produced

the payment to CDSA at the time of the power plant

the national infrastructure development plan forcompletion. NEXI provided Buyer’s Credit Insurance for2007-2012 to promote investment in infrastructure

the USD109 million loan provided by the commercial

projects. Among them strengthening of areas of powerbanks.

generation, transmission, distribution and maintenanceJapan’s advanced power equipment technology

were particularly needed to meet increased demand

contributes to this project and such support by thefor electricity. This project is expected to meet such

Japanese companies is expected to lead to moredemand.

business opportunities in Mexico.

The Japan Bank for International Cooperation(JBIC) and Japanese commercial banks (Bank of

The insurance contract was entered into in March 2010.

Bolivia

San Cristobal Mine ProjectIn 2006, Sumitomo Corporation first participatedin the San Cristobal Mine Project located in the Potosi
district of southwestern Bolivia, by acquiring a 35%
stake. Sumitomo gained a full ownership later in 2009and started to develop and operate the mine at theinitiative of the company.
The San Cristobal Mine Project is the first projectin which a Japanese company assumes a full ownershipand operational control, regarded highly by the Bolivian
government. In FY2009, the project produced 642 tons

investment of about USD380 million in the project.

of silver, 500 thousand tons of zinc concentrate andWith importance of securing a supply source becoming

110 thousand tons of lead concentrate. Zinc and leadmore and more important as resource prices have risen,concentrates have been exported to Japan under a long-

this project is expected to contribute to stable zinc andterm purchase agreement with a Japanese refinery. The

lead supply to Japan.

exports of zinc and lead concentrates from the mineaccount for 13% and 9% of Japan’s import demand.

The insurance contract was entered into in July 2009.

NEXI provided Investment and Loan Insurance
for Natural Resources and Energy for Sumitomo’s

5

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10.9.6 4:41:47 PM

AfricaMadagascar

Ambatovy Nickel Mining Project
The Ambatovy Project is a green field mining
Underwritten Projects

development project in which production processfrom ore mining to metal manufacturing is integrated.
Sumitomo Corporation of Japan and three othercompanies (Sherritt of Canada, SNC Lavalin of Canada
and KORES of Korea) have jointly invested in the project.
Sumitomo has participated since 2005 with a 27.5%
stake in the project, and is engaged in the project’s
overall management, marketing and finance.
Construction of the production facilities started in

Natural Resources and Energy for part of Sumitomo’slate 2007 at the project site and production is due toinvestment of USD254 million. The project is the firststart in the 4th quarter of 2010 or the 1st quarter oflarge-scale nickel metal integrated production project2011. The Ambatovy Mine is expected to become one ofparticipated in by a Japanese company. As part of thethe world’s largest nickel and cobalt mines by 2013 withnickel metal produced in the project will be exported

an average annual production of 60 thousand tons of

to Japan, this project is expected to contribute to stablenickel and 5.6 thousand tons of cobalt when operating

supply of nickel to Japan.

at its full capacity.
NEXI provided Investment and Loan Insurance for

The insurance contract was entered into in February 2010.

Algeria

Gassi Touil Project
Naturalgas

processing

facilities

have

been

constructed in Gassi Touil, Algeria, for gas gatheringand separation with a throughput of 12 million CBM
per day from several oil production wells. Pipelines
have also been constructed to transport the separated
sales gas, LPG and condensate to existing pipelines.
The project aims to increase gas production in
Algeria, which is expected to contribute to thecountry’s industrial development and foreign currency
earnings. The gas products including LNG will be

The insurance contract was entered into in December 2009.

transported to the country’s coast for export or fordomestic use in power generation.
JGC Corporation (JGC) of Japan and its subsidiaryJGC Algeria S.p.A. were awarded the project by
Sonatrach, Algeria’s state-owned oil and gas company,
while NEXI provided Export Credit Insurance. NEXI’s
support for the project will contribute to further
strengthening economic relations between Algeria andJapan.

6

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Reinsurance Projects
Reinsurance with US EXIMBANK

Project to Export Boeing Aircraft toEtihad Airways / UAE
Based on the Reinsurance Agreement concluded
with the Ex-Im Bank of the United States (USEXIMBANK), an export credit agency in the UnitedStates, NEXI provided reinsurance for several export
finance transactions of Boeing aircraft, such as B777
export to Etihad Airways, the national ﬂag carrier ofUAE. Etihad Airways has been growing steadily since
its establishment in 2003 and it launched its non-stop
services from Abu Dhabi to Tokyo in March 2010.
Japanese companies have been playing a major rolein the development and manufacture of Boeing aircraft
and have become a major partner in international joint
projects. In response to their activities in the international
projects, NEXI has been supporting exports of Boeing
aircraft to the world’s major airlines including TAM
Brazil Airlines and Air India. NEXI’s reinsurance program
to US EXIMBANK for Boeing aircraft strengthens thecompetitiveness of Japanese manufacturers expanding
in the aerospace industry, and is proving to be aneffective strategy for achieving the policy objectiveof the Japanese government. NEXI will continue tosupport international joint projects in which JapanesePhotograph courtesy of Boeing

companies participate.

7

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10.9.6 4:41:54 PM

Close Cooperation with World Bank Group

Russia / Kupol Mining Project
In July 2009, NEXI accepted reinsurance for the
project in Russia to which MIGA

Underwritten Projects

Kupol mining

provides a guarantee. This is the first project where
NEXI provides reinsurance (inward insurance) for
MIGA.
Kupol mining property is located in the Chukotka
autonomous region of Far Eastern Russia, wherea Canadian mining company has developed and isoperating gold and silver mine. MIGA has provided
investment

guarantee

for

this

project

againstpotential country risks (currency transfer restriction,
expropriation, war

andcivil disturbance). Under

request from MIGA, NEXI has underwritten Overseas
Investment Insurance to cover a portion of MIGA’s
guarantee.
NEXI’s reinsurance will reduce MIGA’s country
risk exposure in Russia, which will increase its capacity
to provide guarantee for investment and financing
projects in Russia undertaken by MIGA members(175 countries worldwide) including Japan. This isparticularly meaningful under the global financial
turmoil.
A Japanese financial institution is involved in thisproject through loan structuring. Furthermore, as aJapanese trading company has an off-take contract ofthe mineral resources, secure resource supply to Japan
can be expected.

MIGA

Multilateral Investment Guarantee Agency

Established as a member of World Bank Group in April 1988, MIGA promotes
foreign direct investment into developing countries by providing guarantee to themembers against non-commercial risks (expropriation, foreign exchange control
or transfer restriction, war and civil disturbance, and breach of contract).
MIGA is headquartered in Washington, D.C.

8

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2009 Financial Results
1

Fiscal Year 2009 in Review
NEXI submitted financial statements and other financial information for fiscal year 2009
ending March 31, 2010 (its ninth year of operation) to the Minister of Economy, Trade and Industry
and obtained Ministry approval on July 26, 2010.

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

5th
(FY2005)

6th(FY2006)

7th(FY2007)

8th(FY2008)

9th(FY2009)

Ordinary profit (loss)

4,041

5,439

1,273

1,899

5,724

Ordinary income

11,585

12,52012,706

13,306

17,286

Year of operation

9,671

9,189

9,616

10,051

12,50440,08837,17834,64436,816

39,606

9,586

9,187

9,615

10,051

10,784

83

−

−

−

1,713

1,179

2,701

2,978

3,153

4,409

720

614

−

−

198

Ordinary expenses

7,544

7,081

11,433

11,408

11,562(Underwriting expenses)

2,063

575

1,136

3,774

4,431

(Underwriting income)(reference) Premium of original insurance written
Net premium written
Reversal of outstanding claims provision(Investment income)(Foreign exchange gain)

3,680

2,431

3,800

17,15910,441

Net claims paid

74

62

103

1,582

976

Provision for outstanding claims reserves

−

37

511

2,198

−

2,008

510

625

912

3,012

−

−

2,236

77

−

(reference) Insurance claims paid

Provision for outstanding commitments reserves(Foreign exchange loss)(Operating and administrative expenses)
Extraordinary profit (loss)

5,476

6,405

7,985

7,543

7,116

52,501

18,953(84,981)(3,360)11,009Net profit (loss)

56,542

24,392(83,709)(1,461)

16,733

Total assets

398,588377,995

302,164

305,703

315,683

Net worth

326,131

350,522

266,814265,359

282,092(Note) Extraordinary profit (loss) includes valuation profit or loss related to assets invested by the government.

Profits and Losses
In fiscal year 2009, the net premium written increased by 7.3% to JPY10,784 million comparedwith the previous fiscal year. Although insurance premium received from exports declined due to adrop in Japanese exports for two consecutive years, the number of insurance contracts to support
foreign affiliates’ working capital surged. Net claims paid decreased by 38.3% to JPY976 millionin spite of an increase in the number of credit risk events, mainly because a claim payment for
losses incurred by a political event in Cuba was almost settled. Also, investment income increased
and operating and administrative expenses decreased. As a result, ordinary profit was JPY5,724
million.
Extraordinary profit (or loss) includes interest on the assets invested by the government andprofit (or loss) from valuation. Due to a higher market price for debt such as Iraqi and Indonesiandebt, an extraordinary profit of JPY11,009 million was recorded. As a result, net profit for the fiscal
year was JPY16,733 million.

9

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2

Financial Statements
Balance Sheet (As of March 31, 2010)(Millions of yen)

(Assets)(Liabilities)

9,373

Cash and cash equivalents
Securities
Receivables subrogated by paying claims

Outstanding claims reserves

1,124

261,301

Reserves for outstanding commitments

17,108238,526

Amount due to the reinsurer

11,8591,206

Deposits received

Accrued premium

4,808

Advance insurance premium

Reinsurance credit

607

Accrued amount payable

248

Buildings (Note 2)

148

Accrued bonuses

127

271

Reserves for retirement allowance

241

171

Other liabilities

413

Deposits

489

Total liabilities

Software

1,433

Other assets

1,221

Equipment and fixtures(Note 4)

Accounts receivable

Allowance for uncollectible receivables(203,872)

35

2009 Financial Results

Accrued income

2,436

33,591(Net Worth)

CapitalGovernment investment
Capital surplus (Note 5)

104,352
140,658

Retained earnings
Second target period reserve fund carried forward
Unappropriated retained earnings(of which profit for the current year)
Total retained earnings
Total net worth

315,683

Total assets

Total liabilities and net worth

20,34916,733（16,733）

37,082282,092
315,683(Notes)
1. Amounts between one million yen and 0.5 million yen were rounded up to one million yen. Amounts less than 0.5 million yen were omitted.
2. Accumulated depreciation on buildings is JPY160 million.
3. Accumulated depreciation on vehicles is JPY8 million.
4. Accumulated depreciation on equipment and fixtures is JPY490 million.
5. The breakdown of capital surplus is as follows:

Valuation difference of receivables subrogated by paying claims(Millions of yen)

45,386

Valuation difference of rescheduled claims

49,225

Valuation difference of commercial risk subrogated receivables(3,838)Valuation difference of capitalized amount(Net)

95,271
140,65830

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10.9.6 4:41:59 PM

Statement of Income (From April 1, 2009 to March 31, 2010)(Millions of yen)

Ordinary income
Underwriting income
		 Net premium written (Note 2)
		 Reversal of outstanding claims provision
		 Interest income on receivables subrogated by paying claims
Investment income
		 Income from interest
		 Interest on securities
		 Gain on sales of securities
Foreign exchange gain
Others		 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
Others		 Interest paid		 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

Extraordinary loss
Losses relating to in-kind contribution of receivables acquired by government subrogation (Note 5)
Net profit(Notes)1. Amounts between one million yen and 0.5 million yen were rounded up to one
million yen. Amounts less than 0.5 million yen were omitted.
2. The breakdown of net premium written is as follows:

Premium of original insurance written
Refund of premium paid for reinsurance
Premium received for reinsurance(Millions of yen)

39,606745
597

Premium paid for reinsurance(30,165)(Net)

10,784

5. The profits and losses related to assets invested by the government were entered as
extraordinary income and loss.
(1) Breakdown of profits related to assets invested by the government(Millions of yen)

4,773

Interest income1

Bad debt recovered

4,774(Total)(2) Breakdown of losses related to assets invested by the government(Millions of yen)

Bad debt loss
3. The breakdown of net claims paid is as follows:

17,286
12,504
10,784
1,713
8
4,409
7
4,064
338
198
175
175
11,562
4,431
976
443
3,012
7,116
15
0
15
5,724
11,580
4,774
6,806
571
571
16,733(Millions of yen)

Foreign exchange loss

Insurance claims paid

10,441Other extraordinary loss

Reinsurance claims recovered(9,466)(Total)

0
571
1
571

976

(Net)

4. The breakdown of the estimated amount of insurance claims recovery is as follows:(Millions of yen)

（1）Capitalized and evaluated amount of subrogated receivables in connection with rescheduling agreements(i) Political-risk subrogated receivables(249)(ii)	Difference of value between the current year and the previous year concerning estimatedvalue of subrogated receivables capitalized in line with the outstanding claims provision

266(iii) Provision for uncollectible receivables

238（2）Capitalized and evaluated amount of subrogated receivables in relation to commercial risk claims paid(i) Commercial-risk subrogated receivables(719)(ii)	Difference of estimated value between the current year and the previous year concerning
subrogated receivables capitalized in line with the outstanding claims provision

479(iii) Bad debt loss(iv) Provision for uncollectible receivables(Total)

0
429
443

31

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Statement of Cash Flows (From April 1, 2009 to March 31, 2010)(Millions of yen)

Ⅰ . Cash flows from operating activities
Premium received

38,176

Reinsurance premium paid

(26,051)

Insurance claims paid

(10,445)

Reinsurance claims received

10,454

Income from recovery of receivables subrogated by paying claims

11,976

Payment of re covered receivables subrogated by paying claims(8,456)
9,224

Payment of recovered receivables subrogated to the government(21,067)

Personnel expenses(1,603)

Other operating expenses(3,859)2009 Financial Results

Income from re covery of receivables subrogated to the government

207

Others(1,442)

Subtotal

6,239Interests received(0)Interests paid
Net cash provided by operating activities

4,796

Ⅱ . Cash flows from investing activities(94,618)

Purchase of securities
Redemption and sales of securities

56,182

Purchase of fixed assets(1,362)

Net cash (used in) provided by investing activities(39,798)

Ⅲ . Cash flows from financing activities(3)

Finance lease payment
Net cash (used in) provided by financing activities
Ⅳ . Foreign exchange difference related to cash and cash equivalents

(3)
186

Ⅴ . Net increase (decrease) in cash and cash equivalents(34,819)

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

44,192Ⅶ . Cash and cash equivalents at the end of the current year

9,373

(Notes)
1. Amounts are stated in millions of yen.
2. The breakdown of cash at the end of the current year by title of balance sheet is as follows:(Millions of yen)

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

9,373
Total 9,373

32

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Notes （excerpt）
I . Important Accounting Principles(Omitted because of no change in Important Accounting
Principles)

II . Financial Instruments
1. Financial instruments
a. Management of financial instruments held by NEXI
NEXI is engaged in the trade and investment insurance business.
Recoveries of receivables subrogated by paying claims are invested insecurities to strengthen NEXI’s financial base. The securities held by NEXI
include government bonds, municipal bonds and government-backed
bonds.
b. Financial instruments and risk
The receivables subrogated by paying insurance claims are exposed to
debtor countries’ or debtors’ credit risk. The securities are exposed tointerest rate risk and market ﬂuctuation risk.
c. Financial instruments and risk management(1) Country risk management
In concluding insurance contracts (that could cause the acquisition of
the receivables subrogated by paying insurance claims), NEXI’s
Country Risk Analysis Group conducts risk assessment by gathering
information through the Berne Union and OECD, researching andevaluating country risk. Contracts concluded are monitored by the
Monitoring Committee for continued risk management.
(2) Credit 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 the overseas buyers.
(3) Market risk management
Market risk such as interest rate and price ﬂuctuation associated withinvestment in securities is managed by the Fund Operation Meetingthat discusses NEXI’s investment policy and checks the investment
status. In addition, NEXI’s Accounting Group, the secretariat of theFund Operation Meeting, is monitoring the bond market and liquidity
risk.
d. Supplementary explanation regarding fair value of financial instruments
Fair value of the financial instruments is based on the quoted market
price. If the market price is not available, the fair value is based on thereasonably assessed value. Fair value of financial instruments is measured
based on certain assumptions, and it 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 asof the end of the fiscal year 2009 are as follows:(Millions of yen)
(1) Cash and cash equivalents(2) Securities
Held-to-maturity securities(3) Receivables subrogated by paying claims
Receivables subrogated by paying claims
Allowance for uncollectible receivables(*)(Net)
Assets(4) Amount due to the reinsurer
Liabilities

Carrying amount
9,373

Fair value
9,373

Differences-

261,301

266,158

4,858

238,526(203,872)
34,654
305,328
11,85911,85934,654
310,185
11,85911,8594,858-(Note1) Fair value measurement of financial instruments and securities(1) Cash and cash equivalents
Fair value of deposits with no stated maturity is equal to carrying value,
since it approximates the carrying value.
(2) Securities
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 and notes)
are as follows:(Millions of yen)
Fair value > Carrying amount
Fair value ≦ Carrying amountType of securities
Government bonds andmunicipal bonds
Government bonds andmunicipal bonds

Total

Carrying amount
177,971

Fair value Differences
183,328
5,357

83,33082,831(500)

261,301

266,158

4,858

Aggregate sale price of held-to-maturity securities sold during the fiscal year
is JPY15,429 million. The aggregate gain on sale is JPY338 million. These
securities, which had been purchased before the previous medium term, weresold for the reinvestment into higher yielding securities in response to thechanging interest-rate environment. Therefore they continue to be classified
as held-to-maturity securities in accordance with the provision of Note 23 (2)of the accounting standards for incorporated administrative agencies.
(3) Receivables 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
based on the valuation by the global financial market regarding
repayment prospects of each debtor country or using a given ratio.
(ii) Allowance for uncollectible receivables associated with receivables
subrogated by paying commercial risk claims is calculated in two
different ways. As for receivables from debtors that are actuallybankrupt or nearly bankrupt, allowance is calculated by deducting
foreclosure estimates and estimated amount recoverable under apayment guarantee. As for receivables from other debtors, allowance
is obtained by calculating loss estimates based on the present value of
estimated future cash ﬂow or estimated amount recoverable byforeclosure 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.
(4) Amount due to the reinsurer
Fair value of amount due to the reinsurer is equal to the carrying value,
since it approximates the carrying value as they are settled in a shortperiod of time.
(Note2) Expected payment and redemption amount of money claims
and securities with maturity after the fiscal year end(Millions of yen)(*) Allowance for uncollectible receivables associated with receivables subrogated by paying claims is deducted.

1 year More than More than More than More than More than Undetermined(*)
or less 1 year 3 years 5 years 10 years 20 years
through through through through3 years 5 years 10 years 20 years
Securities
Held-to-maturity
securities
Receivables subrogatedby paying claims
Total

10,00010,96520,0007,447

27,50020,17268,000 135,500
44,607 63,542

437

91,356

20,96527,44747,672 112,607 199,042

437

91,356(*) The receivables subrogated by paying claims that are in arrears are classified as “Undetermined.”33

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III. Material Debt Assumption

2. Statement of income

Not applicable

IV. Material Subsequent Events
Not applicable

V. Account Titles Used by NEXI
1. Balance sheet
Total assets of receivables subrogated by NEXI’s
paying claims and the estimated amount of potential subrogated receivables (recorded as assets
with outstanding claims reserves being reported)

AccruedincomeTotal accrued interest on time deposits, securities
and receivables subrogated by paying claims (receivables subrogated by paying political risk
claims) as of the end of the fiscal year.

Accruedpremium

Accrued insurance premium incurred associatedwith insurance application.

Reinsurance
creditAmount receivable from the government such as
reinsurance claims

Outstanding
claims reserves

Amount considered necessary under an insurance contract to cover incurred losses or losses
recognized as having been incurred at the end of
the fiscal year

Reserves foroutstanding
commitments

Amount reserved to prepare for possible future
claim payments under insurance and reinsurance
contracts

Amount due tothe reinsurer

Amount payable to the government such as reinsurance premium

Advanceinsurance
premium

Insurance premium received with NEXI’s obligation starting from the next fiscal year or later

Capital surplus

The valuation difference of an in-kind contribution of receivables acquired by government subrogation

Amount calculated by deducting reinsurance
premium paid from premium written. Premium
written includes premium received from foreign
ECAs.

Reversal ofoutstanding
claimsprovision

Reversal of outstanding claims provision for thecurrent fiscal year

Net claims paid

Amount calculated by deducting reinsurance
claims recovered from insurance claims paid. Insurance claims paid include claims paid to foreign ECAs.

Estimatedamount of
insurance
claims recovery
Provision foroutstanding
commitments
reserves
Extraordinary
incomeExtraordinaryloss

2009 Financial Results

Receivables
subrogated bypaying claims

Net premium
written

Valuation gain or loss of receivables subrogatedby paying insurance claims

Provision for outstanding commitments reserves
for the current fiscal year
Interest income relating to assets invested by thegovernment (receivables subrogated by paying
claims) and valuation difference between thecurrent fiscal year and the previous fiscal year

VI. Other Accounting Information Necessary to Understand the Current Situation of NEXI
Not applicable

34

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Third-Term Objectives
NEXI has set the medium term-objectives for the third term of FY2009
to FY2011 and implements various measures and policies based onthese objectives. A summary of these objectives is outlined below.

1
1

Measures to improve the quality of NEXI's services and other operations
Improvement of products
From the perspective of securing the international competitiveness of Japanese companies,
we will take the demands of customers and the requirements of trade and industry policies into
consideration, and improve the insurance products we currently offer as well as develop new
products in order to provide high-quality services equal to those in other countries.

2

Improvement of services
Adopting the “customer perspective” at all times, we will make efforts to improve and enhance
our services by reducing the burden on customers and promoting prompt decision-making andbusiness proceedings. Further, we will build a relationship of trust with our customers by ensuring
increased transparency of operations and the enforcement of compliance.

3

Streamlining the system to ascertain and reflect customer needs and to enhance risk analysis/assessment
We will increase publicity activities regarding existing insurance products and more thoroughly
meet customer needs, making use of customer feedback on our insurance products. Further, we
will streamline the system for enhanced risk analysis/assessment by refining risk management
methods and improving the expertise of our staff.

4Emphasizing strategic priority policy issues
In light of our role as the public institution responsible for developing Japan’s overseas trade
and taking heed of the requirements regarding Japan’s trade policies, industrial policies, natural
resources and energy policies, etc., we will give priority to accomplishing such policy issues as
securing a stable supply of natural resources and energy, establishment of an environmentallyfriendly society and international development of SMEs. We will qualitatively and quantitatively
expand the scope of insured risks with regard to these areas.

5

Smooth entry of private insurers into the market
We will continue to improve the diversity of the products in order to provide our customers
with greater choice, and will establish an environment for the smooth entry of private insurers
into the market.

35

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2
1

Improvement in Business Efficiency
Promotion of efficient business operations

2

Third-Term Objectives

When making disbursements, we will be thoroughly cost-conscious and fully consider costeffectiveness in order to improve the efficiency of our business operations.
● We will further improve operation efficiency by measures such as rationalization of the operatingprocess, while also revising the structure of the organization and personnel assignment. We will
also increase cost-effectiveness in all areas including personnel expenses. Operating costs shall belower than the level achieved in the second medium-term objectives period.
● In FY2010, we will reduce the workforce by at least 5% compared with the level in FY2005. We
will also make necessary revisions for appropriate wage standards.
● We will steadily implement reforms based on “program for reviewing no-bid contracts”● We will promote the efficiency of operations through consignment of part of our office workand business operations to private financial institutions, etc.

Efficient development and smooth operation of the information system
We will realize efficient and prompt operations and improved services through efficient andprompt maintenance and upgrading of the current information system. Further, we will makeefforts to keep the maintenance cost lower than that of the previous system.

3

Improvement in composition of finances

1

Reinforcement of financial foundation
In order to continuously and stably offer our customers “assured peace of mind,” we will
improve the efficiency of business operations and hold down expenditure by thorough risk
management, as well as reinforcing appropriate management and recovery of debts incurred byinsured risks, and will maintain a sound financial foundation.

2

Reinforcement of credit management and debt recovery
We will strengthen our recovery capacity through meticulous management of credit data andclose coordination with relevant governmental organizations. Further, we will strive to preventthe occurrence of insured risk and to alleviate any loss by swiftly implementing necessary measuresin cooperation with customers and relevant governmental organizations.

4

Fostering of personnel with high degree of specialist knowledge
We will further raise the specialization level of our staff through a more comprehensive inservice training system and effective implementation of a personnel system that places a highpriority on the development of expertise.

36

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Customer Service Charter
Ⅰ NEXI Spirit(1) Our mission is to assist customers to conduct international businesswith a sense of reassurance by reducing incidental business risks. To
this end, we take time to ascertain the customers’ situation so that
we can meet customer needs precisely and provide efficient andhigh-quality services, thereby enhancing customer satisfaction andestablishing mutual trust.
(2) By implementing our customer-focused policy, we will continue to:
1. Improve the quality of service,
2. Broaden the range of risk coverage,
3. Promote the efficiency of operations, and
4. Increase the transparency of management.

Ⅱ NEXI Pledges 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 ofplanning(3) Responding promptly to inquiries and acting in the interests ofour customers(4) Meeting our customers’ demands and business needs(5) Promptly completing the assessment of insurance claims andpaying insurance claims, and(6) Promptly allocating the recovery(1) Providing insurance products that make our customers feel secure andprotected when conducting overseas transactions

1) If you suspect that your international transactions, including
exports, foreign investment and overseas loans, may incur any
risk, please visit our Website (URL : http://www.nexi.go.jp) and go
to the insurance product section, or contact NEXI’s Customer
Relations Office.
2) To provide further information on our insurance products that
support and protect your international business, our staff can be
despatched to your office at your request. Please feel free tocontact us.
(2) Providing advice to our customers from the preliminary stage ofplanning
If you plan to initiate international transactions, such as exports andoverseas investments, NEXI is ready to serve you. We will be pleased
to talk with you at an early stage of your project formation andpropose the most appropriate insurance product to minimize any risk
involved.
(3) Responding promptly to inquiries and acting in the interests of ourcustomers
1) If you have any questions about insurance products, please call or
email our Customer Relations Office or any relevant group.
2) To estimate your insurance premium, our premium calculator isavailable on the Website. If you give us information on yourplanned transaction, the group in charge can generally estimate
the premium on the same day of your inquiry, or on the following
business day at the latest. (For medium or long-term non-L/Gtransactions, however, we will respond within five business days.)
If the group in charge finds it difficult to respond to your inquiry

within the specified time limits, it will promptly notify you to that
effect along with the reason for the delay and the expected dateof response.
3) Should the group in charge find any inadequacy in the forms
submitted, such as a pre-application form or an insurance
application form (other than environment-related forms), we will
notify you within the five business days of our receipt at thelatest.
4) If you have any questions about NEXI’s insurance system for a
specific project, please inform the group in charge or the Customer
Relations Office. We will respond within five business days at thelatest. Should we find it difficult to respond within the statedperiod, we will promptly notify you to that effect with the reason
for the delay and the expected date of response.
(4) Meeting our customers’ demands and business needs
1) It would be appreciated 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 such a reason
as an export contract proceeding more rapidly than anticipated,
please inform us.
2) Your business needs are always important to us and we will do ourutmost to meet your accelerated deadline. If we find it difficult tomeet the new deadline, we will immediately inform you of how
long it will take to complete the necessary procedures.
(5) Promptly completing the assessment of insurance claims and paying
the insurance claim payment
1) As soon as we receive an insurance claim form, we will assess thedetails in light of the insurance policy provisions to determine theamount of the claim to be paid. We will then make a payment
within a stipulated time. This is generally within two months ofreceipt of the claim; however, in a situation where more time isrequired for assessment, this rule does not apply. For an application
for insurance claims, we may request you to execute the obligationsof notification and of loss prevention and reduction stipulated insuch documents as insurance policy provisions. In addition, we
may also request you to submit all necessary documents stipulated
in the insurance policy provisions and other regulations within a
specified time.
2) In the event of any inadequacy being found in a submitted claim
form or in other documents in light of insurance policy provisions
or other regulations, we will notify you no later than three businessdays after receiving the documents.
3) In order to pay claims within the period stipulated in the insurance
policy provisions or other regulations, we would appreciate yourunderstanding and cooperation, including the early submission of
documents necessary for the assessment.
(6) Promptly allocating recovery
1) When all or part of the subrogated claims is recovered, we willpromptly allocate the recoveries in accordance with insurance
policy provisions and other contracts.
2) In allocating the recoveries in accordance with a Paris Club debt
rescheduling program or other programs, we will in principle
complete procedures of remittance to your accounts by thebusiness day following the confirmation of the full amount receipt
in NEXI’s account.

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Ⅲ Information
A range of information is available on our Website (URL : http://www.
nexi.go.jp) and in our annual report.
(1) Please visit our Website for comprehensive information on our insurance(2) Information on NEXI board and staff salaries and benefits is available
on our Website
http://www.nexi.go.jp/service/sv_j-koukai/pdf/yakuin.pdf
For inquiries, please call NEXI Personnel Group(Phone: 81-(0)3-3512-7656).
(3) Our annual report (in Japanese and English) offers the results of ourtrade insurance business and our financial statements. Other
publications are also available, including the NEXI corporate brochureand leaﬂets on our insurance products (though there is a limited
supply of these). Please feel free to call the Public Relations Group(Phone: 81-(0)3-3512-7655) or the Customer Relations Office.
(4) For inquiries regarding our Website, annual report and any otherpublic relations matters, please contact the Public Relations Group.
(Phone: 81-(0)3-3512-7655)

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. Your problem will be rapidly
addressed.
(1) If you inform us of any problem you may have encountered, we will
do whatever is necessary to solve it. Please provide details of the
problem and what you wish to be done. We will immediately findthe source of the problem and solve it.
(2) If you have any complaints about our services or the handling of yourproject, please inform the Customer Relations Office.
1) For any complaints about our services, please provide the details
to the Customer Relations Office in writing or via email. The
Customer Relations Office will examine your problem and informyou on how it will be dealt with. If it is difficult for us to take
immediate action, we will provide the reason for the difficulty andhow we intend to proceed with it2) If there is any complaint about the handling of a specific project,please provide the details to the Customer Relations Office inwriting or via email. The Customer Relations Office will review thedetails and provide the results of our review without delay. If
immediate action cannot be taken, the Customer Relations Officer
will inform you of the reason and when the problem will be
resolved.

Customer Service Charter

NEXI Website includes the following information
1) Recent developments (including changes in systems, cover conditions
and recent underwritten projects)2) Description of our insurance products (pamphlets available)
3) Rules concerning trade insurance (including insurance policy
provisions for all of NEXI’s insurance products)
4) Terms of cover5) Country and region category
6) Premium calculator
7) Application procedures
8) Procedures to be adopted after occurrence of an insured event9) Case examples of insurance claim payment
10) Downloadable insurance policy provisions, detailed rules concerning
procedures, and application forms
11) WEB service

Ⅳ Your Comments and Complaints

Customer Relations Office(1) NEXI has established a “Customer Relations Office” to provide more
efficient services to our customers in accordance with our customeroriented policy.
(2) The Customer Relations Office offers customer support by seeing thesituation from the customer’s viewpoint. Any question or inquiry is
welcome, including questions and views about trade insurance, what
section of NEXI should be in charge, and specific projects. We will takeprompt action regarding these matters
Information about NEXI's sections and groups in charge is available on
our website.
Customer Relations Office (Head Office)Phone ――――――――――――― 81- (0) 3-3512-7712
Fax ―――――――――――――――― 81- (0) 3-3512-7687
E-mail ――――――――――――――― info ＠ nexi.go.jp
Customer Relations Office (NEXI, Osaka)

Phone ̶̶̶̶̶̶̶̶̶̶̶̶̶̶ 81- (0) 6-6233-4019

Fax ―――――――――――――――― 81- (0) 6-6233-4001

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Profile of NEXI

From the left: Fumihiko Kato (Vice Chairman),Takashi Suzuki (Chairman and CEO),and Naoki Obayashi (Vice Chairman)

Members of the Board and the Audit Board
Chairman and CEO ——————— Takashi Suzuki
Vice Chairman —————————— Naoki Obayashi
Vice Chairman —————————— Fumihiko Kato
Corporate Auditor（Full Time）Shigeki Nishikawa
Corporate Auditor（Part Time）———— Takashi Imai
Shigeki Nishikawa(Corporate Auditor)

Name
Date of
Establishment
Acts
PurposeCompetent Minister
Capital
Number of Full-time
Employees

Takashi Imai
(Corporate Auditor)

Incorporated Administrative Agency, Nippon Export and Investment Insurance ("NEXI")
April 1, 2001
Act on General Rules for Incorporated Administrative Agency Trade andInvestment Insurance Act
To efficiently and effectively conduct insurance business of covering risks
which arise in foreign transactions and which are not covered by commercial insurance.
The Minister of Economy, Trade and Industry
JPY104.4 billion (Fully contributed by the Japanese Government)(Unchanged from the previous year)
156 (As of March 31, 2010)39

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Profile of NEXI

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

Brief History

Jul. 1999 Enactment of Act on General Rules for Incorporated Administrative Agency
Dec. 1999 Enactment of the Act which partly amended the Trade and Investment Insurance Act
Apr. 2001 Establishment of Nippon Export and Investment Insurance［For reference］The Trade and Investment Insurance Act was enacted in March 1950 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.

OfficeHead office

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

Osaka Branch

3-1-22 Kitahama, Chuo-ku, Osaka City, Osaka 541-0041, Japan
Phone: 81-(0) 6-6233-4019
Fax: 81-(0) 6-6233-4001
NEXI Paris, NEXI New York, and NEXI Singapore（See page 42.）

Overseas Offices
Main Insurance
Products

URL

Export Credit Insurance / Buyer's Credit Insurance / Trade Insurance for Standing Orders with
Specific Buyer / Export Credit Insurance for SMEs / Intellectual Property License Insurance / Overseas
Untied Loan Insurance / Overseas Investment Insurance / Export Bill Insurance / Prepayment ImportInsurance / Investment and Loan Insurance for Natural Resources and Energy / Trade and Investment
Insurance for Preventing Global Warming / Comprehensive Export Insurance with Simplified
Procedure
http://www.nexi.go.jp

40

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10.9.6 4:42:16 PM■Organization chart (as of July 2010)41

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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

法
人概
要NEXI
Profi
le of

Osaka Branch
3-1-22 Kitahama, Chuou-ku, Osaka City, Osaka
541-0041, Japan
Phone: 81-(0)6-6233-4019
Fax: 81-(0)6-6233-4001,OsakaNEXI大阪支店
あいおい損保
淀屋橋ビル8階

Overseas Offices
NEXI, Paris

NEXI, New YorkNEXI, Singapore

c/o JETR0 166, rue de Rivoli,
75001 Paris France
Phone: 33 - (0)1- 4261- 5879
Fax: 33 - (0)1- 4261- 5049

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

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

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