Annual Report FY2007（Apr.2007-Mar.2008)

Nippon Export and Investment Insurance
Chiyoda First Building, East Wing 3rd Floor,3-8-1,Nishikanda,
Chiyoda-ku,Tokyo 101-8359,Japan
Tel:81-(0)3-3512-7650 Fax:81-(0)3-3512-7660

http://www.nexi.go.jp
Inquiries:
Public Relations Group,
Planning and Administration Department
Tel:81-(0)3-3512-7655 Fax:81-(0)3-3512-7660
E-mail:info@nexi.go.jp

Percentage of Waste Paper pulp 100%

Printed in Japan on recycled paper.

Ⅰ

NEXI Mission
NEXI is committed to:
1. Providing insurance products that makecustomers feel secure and protected inoverseas transactions
2. Providing advice to customers from thepreliminary stage of planning transactions
3. Responding promptly to inquiries and theinterests of customers
4. Meeting customers' demands and businessneeds
5. Promptly completing the assessment of
insurance claims and making insurance claim
payment
6. Promptly allocating the recovery

NEXI’s Resolution

S

SPEED

P

PROFESSIONALI

INTEGRATIONR

REFORMI

IIT
T ORIENTED

T

TRANSPARENCYManagement Principle
NEXI will contribute to Japan's economic
community by anticipating changes in themarket at all times, appropriately responding
to customer needs, and efficiently andeffectively conducting insurance business incovering risks that arise in internationaltransactions but are not covered by regularcommercial insurance.

Management Policy
1. NEXI, realizing its role as an incorporated
administrative agency, operates its
business from the public standpoint andaims at being conducive to national
stability and sound development of theeconomic community.
2. NEXI will observe the customer-firstprinciple at all times, provide high-quality
services by improving its expertise, andaim at increasing customer satisfaction
and building strong trust relations withcustomers.
3. NEXI will systematically make use of its
operating resources, work on
quantitatively and qualitatively increasing
the risks it underwrites, improve its profits
through appropriate risk management,
and aim for long-range development.
4. NEXI will develop human resources andpromote staff strengthening their
specialty, make use of staff diversity, andaim at creating a liberal and lively
workspace where staff feels proud of theirorganization.

ContentsⅠ

NEXI Mission

1

Ⅱ

Message from the Chairman

3

Ⅲ

Main Data for Fiscal Year 2007

7

Ⅳ

Main Projects Recently Underwritten 11

Ⅴ

Implementation of Confirming
Environmental and Social
Considerations

19

Ⅵ

Review of Performance in Fiscal
Year 2007

21

Ⅶ

Financial Results for Fiscal
Year 2007

27

Ⅷ

Second Medium-Term Objectives

33

Ⅸ

Profile of NEXI

35

Ⅹ

NEXI Customer Service Charter

37

Ⅱ

Message fromthe Chairman

Annual Report FY2007

Message from the Chairman

Dear customers in Japan and abroad,
Since the establishment of Nippon Export and Investment Insurance(NEXI) in April 2001, we have strived to offer better trade andinvestment insurance services to our customers. We would like to takethis opportunity to express our appreciation for your continuing
support to NEXI’s business.

Hidehiro Konno
Chairman and CEO

In December 2007, the decision was made by the Cabinet for
converting NEXI into a special company wholly owned by thegovernment. The decision will serve to increase the flexibility andefficiency of NEXI’s management. The stocks of the special company
will be indefinitely owned by the government, which will maintain its
control and supervision over the NEXI’s business. And, at the sametime, the credibility of the NEXI’s insurance business will continue to be
based on the current reinsurance scheme by the government. We arecommitted to take this organizational change as the opportunity toserve our customers better in managing the risks arisen from theirtrade and investment business.
The deregulation in the export credit insurance market in Japan in thepast few years has been creating a new business climate, in which wehave been actively pursuing the higher level of our insurance services
to satisfy the ever-changing customer needs by standing firmly on the
NEXI Customer Service Charter. In April 2007, we introduced an
optional coverage scheme for Comprehensive Insurance withExporters’ Associations. We also started providing the new insurance
products and introduced the new premium rate structure that reflects
the level of the customers’ risk exposure more appropriately. As theresult of these reforms, the total underwritten amount for FY2007 was
9.5 trillion yen, down by 36% from FY 2006. While the revenue wasdecreased in FY2007, NEXI has become a robust market-tested
organization.
Being a public institution, NEXI conducts business in line with thegovernment policies such as securing supply of natural resources andenergy and supporting overseas operations of small-and-medium-sizedcompanies. We introduced the Investment and Loan Insurance for
Natural Resources and Energy in April 2007, which has been making a
positive contribution to the government’s priority policy issue of
securing stable supply of natural resources and energy. We have been
underwriting a number of projects through this new insurance product.
We have been expanding our cooperation with other export credit
agencies (ECAs) in the world based on our reinsurance scheme. The
most recent example of such cooperation was the signing of a
Memorandum of Understanding with Islamic Corporation for theInvestment and Export Credit (ICIEC) in May. Through these and othermeans, we will expand our support for the business activities of theJapanese companies as they expand their overseas operations.
Our mission is to serve our customers in better managing their risks
involved in their trade and investment business. Under the current
international business environment, our role as the government ECA isbecoming even more important. We will move forward standing firmly
on our customer-first principle.

03

Ⅱ

Meeting Customer Demands andRaising the Quality ofServices

Preparations under way forbecoming a special
wholly-owned government
company
In December 2007, the Cabinet decided “to convert NEXI
into a special wholly-owned government company toincrease management flexibility and efficiency” inaccordance with the consolidation and rationalization ofincorporated administrative agencies that conducted areview on all incorporated administrative agencies. At thesame time, it was confirmed that necessary steps will betaken under the Trade and Investment Insurance Act
regarding indefinite ownership of all the stocks by thegovernment, control and supervision by the Minister of
Economy, Trade and Industry, and maintenance of
NEXI’s credibility. Thereafter, the Subcommittee on Trade
Insurance, Trade and Economic Cooperation Committee,
Industrial Structure Advisory Council discussed the futurestate of the trade and investment insurance plan andreleased an interim report indicating the basic direction of
the review as 1) increasing the speed and flexibility ofmanagement through achieving freedom of management
based on the legal framework of company law andenhanced governance and 2) promoting policy effects
and improvement in services for insurance users. We areundertaking necessary preparations in changing into a
new stock company. Such preparations include
determining customer needs for production development
taking into account the state of trade insurance
management and the state of NEXI’s organization as
pointed out by the Subcommittee.

Contributing to the stable supply of
resources through underwriting
Investment and Loan Insurance for
Natural Resources and Energy
In response to the government’s priority policy of
securing stable supply of energy and resources, NEXI
created the Investment and Loan Insurance for Natural
Resources and Energy in April 2007 and started
providing coverage. This insurance reduced the premium
rate by 50 to 70% as compared with the present rate inaddition to raising the percentage of cover to 100% forpolitical risks for senior loans extended by banks andsubordinate loans contributed by investors fortransactions that acquire interest or offtake energy andmineral resources implemented by Japanese companies.
In FY2007, we provided coverage to a number ofprojects including Uranium Deposit Development Projectin Kazakhstan and Ambatovy Nickel Project in
Madagascar, and the number of underwrittentransactions and those awaiting assessment isincreasing. In January 2008 we expanded the credit line
for this insurance from JPY300 billion to JPY1 trillion.
Further, in FY2007 taking the latest economic outlook
into account, we reviewed the terms of cover by relaxing
the terms (e.g., risk mitigation measures or transactions
that acquire foreign currency) for resource rich countries
with country rating of G or H whose cover status was “offcover” or “conditional acceptance with restrictions. ” Weintend to continue addressing Japanese company
transactions that develop or contribute to stable supply ofenergy and mineral resources by regarding them as
high-priority transactions.

Further improvement to theuser-friendliness of Overseas
Investment Insurance andOverseas Untied Loan Insurance
To further promote overseas operations and investment
in resources and energy projects by Japanesecompanies, NEXI underwent a thorough review ofOverseas Investment Insurance in FY2006 and continued
to improve its service in FY2007 to meet the changing
needs of customers. In the case of foreclosure
conducted by the pledgee between the period of
occurrence of a political event and its acknowledgementby NEXI, the policyholder could not make an insurance
claim since the insured assets were transferred to thepledgee. Now the insured’s loss is also indemnified insuch a case.
Since July 2007 Overseas Untied Loan Insurance has
become more attractive and available throughimprovement including lower premium rates. NEXI willcontinue to provide strategic and priority support forJapanese company global economic activities, stableenergy supply and improvement of infrastructure in Asian
countries.

Further development of usability
for Comprehensive Insurancewith Expor ters' Associations
Since April 2007, an optional coverage plan has been
adopted for comprehensive insurance contracts with
exporters' associations, which gives association
members more choice in selecting insurance policies.
Previously, comprehensive insurance had required
coverage of all transactions including those with member
subsidiaries in developed countries, but such requirement
has been abolished. In April 2008, NEXI started further
improvement in Export Credit Insurance (projects for lessthan two years).
(1) Regarding comprehensive insurance for specified
capital goods, coverage application for “subsidiaries”
is not required.
(2) Regarding comprehensive insurance for Chemical and
Iron/Steel Associations, commercial risk coverage is
excluded to broaden user choices.
(3) Regarding comprehensive insurance for specified
capital goods, basic and optional cover premium rates
have been revised.
(4) Regarding comprehensive insurance for Chemical and
Iron/Steel Associations, a minor increase in export
contract amount is automatically covered without any
procedure, regarded as negligible.
Aiming to increase customer satisfaction, NEXI willaddress the continuous improvement of its insurance
scheme to meet customer needs in the ever changing
global market.

04

Message fromthe Chairman

Annual Report FY2007

Revision of EnterpriseComprehensive Insurance
Following the revision of comprehensive insurance
contracts with exporter associations, EnterpriseComprehensive Insurance was revised in April 2008. The
revision includes (1) allowing choice of coverage such as
exclusion of coverage for subsidiaries, (2) lowering theadditional premium for dollar/euro denominatedtransactions from 27 percent to 10 percent, and (3)reviewing basic and optional cover premium rates.

NEXI is willingly supporting
SME participation in theoverseas market
NEXI established Export Credit Insurance for SMEs in
April 2005 to support SME business overseas. Since
then, this insurance has been used by many NEXI SME
customers. (Underwritten amount for FY2007: ¥370
million for 204 transactions) In FY2007, NEXI further
promoted this product by improving accessibility incollaboration with a government-affiliated financial
institution. This insurance includes the following features:•Covering losses up to 95% in the event of failure tocollect export proceeds within the repayment term of
180 days.
•Available at bank counters to accommodate theneeds of SME customers that will also use a loan foran export credit.
•Simple and rapid procedures including establishmentof pledge.

Reinsurance program withother export credit agencies(ECAs) to realize One Stop Shop
NEXI has one stop shop reinsurance agreements witheleven ECAs to respond rapidly and accurately tobusiness needs of Japanese participants in international
projects. In FY2007, underwritten amount of reinsurance
from other ECAs doubled compared to that of theprevious fiscal year (¥54.7 billion in FY2007 and ¥26.8
billion in FY2006). This one stop shop plan is used whena Japanese company develops and operates aninternational project with foreign companies. First the
ECA of a major foreign participant country underwrites
insurance for the whole project, and then NEXI provides
reinsurance for the Japanese portion. All insurance
applications for the project are accepted by the same
ECA, which results in lower costs and a more flexible
finance plan. (For specific projects, please see page 18.)

05

Export by Japanese affiliates
located in Asia is supported
through Asian reinsurance
agreements
NEXI is working to strengthen the Asian reinsurance
agreement network to support Japanese affiliate
business in Asian countries. Reinsurance agreements
were entered into with ECICS of Singapore in FY2004
and MEXIM of Malaysia in FY2006. These reinsurance
agreements enable NEXI to provide reinsurance when the
Asian ECAs underwrite insurance for Japanese affiliates.
NEXI’s reinsurance is expected to encourage Japaneseaffiliates to use the local ECA’s insurance and facilitaterisk hedging in export transactions. NEXI will continue toexpand the reinsurance network to support Japanesecompany international business.

Strengthening collaboration
with international investment
organizations and financial
institutions
In January 2008, NEXI signed a memorandum of
understanding (MOU) with Mubadala Development
Company PJSC (MDC), the state-owned investmentcompany of the Emirate of Abu Dhabi, the United ArabEmirates (UAE). Through this MOU, NEXI receives
information on potential projects related to resource
development, industry development and infrastructure.
NEXI also aims to promote Japanese investment by
providing insurance that will help reduce investment risk.
Also in May 2008, NEXI signed a memorandum of
understanding with the Islamic Corporation for Insuranceof Investments and Export Credits (ICIEC) to support
Japanese trade and investment in Africa. The MOU isfocused on cooperation through co-insurance,
reinsurance and information exchange. The expectation isthat trade and investment by Japanese companies willlead to strategic promotion of trade and investment inacquiring resources in the Middle East and Africa.

Assignment of Paris Club
rescheduled claims uncoveredby NEXINEXI’s SPIRIT for simpler
procedures and more efficient
services

In FY2002, NEXI decided to allow the insured (Paris Club
creditor) to assign the Paris Club rescheduled claims
uncovered by NEXI’s insurance. With this decision NEXI
expects to contribute to the insured’s more efficient asset
management and cost reduction regarding theuncovered portion as well as indemnified claims. Thus far
NEXI has approved assignment of claims of more than¥100 billion. Additionally since FY2004, NEXI has enabled
the insured to transfer to NEXI the uncovered portion of
the Paris Club rescheduled debt owed by HIPCs. The
transferred claims have amounted to ¥6.5 billion.
Furthermore, since October 2007, NEXI has taken overthe uncovered portion of the Paris Club rescheduled debt
other than for HIPCs from the viewpoint of customer
service improvement. In FY2007, NEXI took over the total
amount of ¥440 million of claims related to the Dominican
Republic, Pakistan, Bosnia and Herzegovina, Kenya, andCroatia.

Since December 2006, NEXI has started a new
information system of trade and investment insurance(called SPIRIT ONE) and provided Web services thatenable customers to apply for insurance through theInternet as well as obtaining information. Since April
2007, SPIRIT ONE has achieved significant procedural
simplification.
•Register file upload for Export Credit Insurance(comprehensive insurance, enterprise comprehensive
insurance, insurance for specified capital goods, andconsumable goods such as steel and chemicals):
Insurance application concerning “evidenceless”
transactions is now possible simply by data transfer.
Previously, application had to be made by way of
floppy disk or email.
•Input by register for Export Credit Insurance(comprehensive insurance, enterprise comprehensive
insurance, insurance for specified capital goods, andconsumable goods such as steel and chemicals): No
more using OCR sheet as application form. Web
insurance application is now available.
•Specific credit line for Export Credit Insurance
including specific insurance and insurance for
specified capital goods, and Export Bill Insurance: Web
application is available.
•Notice of settlement and credit line status for Export
Credit Insurance including specific insurance andinsurance for specified capital goods, and Export Bill
Insurance: Web transfer is available.
•Notice of export contract (Trade Insurance forStanding Orders from Specific Buyer) Web datatransfer is now available for sending the monthly
notice for export contract. (Previously this was via
email.)•Screening form for environmental assessment (Export
Credit Insurance, Buyer’s Credit Insurance, Overseas
Investment Insurance, and Overseas Untied Loan
Insurance): Just input data on the Web instead of
paper-based application.
•Notice of occurrence of insured risk and notice ofoccurrence of losses (Export Credit Insurance, Export
Bill Insurance, and Buyer’s Credit Insurance): Web
application is available instead of paper-based
application.
•Report of payment (Export Credit Insurance, Export
Bill Insurance, and Buyer’s Credit Insurance): Insteadof paper-based notice, Web notice is available.
•Web trial calculation (detailed edition): Insurance
premium simulation function is available for varioustransaction patterns by specifying more detailed
criteria. Premium simulation is available for all
insurance types.
•Foreign buyer list inquiry: The foreign buyer list isaccessible on the Web.

Review on Guidelines on
Environmental and Social
Considerations in Trade Insurance
Considering the environmental issues discussed
internationally including revising OECD Common
Approaches in June 2007, since November 2007 NEXI
has started to review its Guidelines on Environmental andSocial Considerations in Trade Insurance (the Guidelines).
In order to take into account public opinion in reviewing
the Guidelines, NEXI has been holding public
consultations working with JBIC, which also has similar
guidelines. NEXI will continue examining whether
appropriate environmental and social considerations arebeing addressed in projects that may be covered by
NEXI’s insurance in accordance with the Guidelines.

Partial takeover of JTIO
operations
Japan Trade and Investment Insurance Organization(JTIO), an organization in charge of part of tradeinsurance procedures, dissolved itself in March 2008.
NEXI has taken over some JTIO operations such as
registrations and acceptance procedures of overseas
business partners necessary for trade and investment
insurance applications and credit inquiry services foroverseas businesses. NEXI has ensured a smoothtakeover so as not to confuse customers. NEXI willcontinue to improve its operations to offer better services.

Ⅱ06

Main Data
for Fiscal Year 2007

Ⅲ

Annual Report FY2007

Ⅲ

Main Data for Fiscal Year 2007

1 Result of Trade and Investment Insurance Activities（from FY1987 to FY2007）

2 Underwritten Amount（Billions of yen） 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
300

●The total FY2007 underwritten amount was ¥9.5 trillion, down 36.0% from the previous year.
●Underwritten Amount by Region● Underwritten Amount
2003

200

6.2 ％

Africa（Fiscal Year）

10.8

2004

South America

11.2

2005

4.6 ％

Central America

9.4％

North America

6.1％

12.3

2006

11.8 ％

14.9

2007

9.5
0

3

6

9

12

Middle East-100

3 Outstanding Commitment-200●Total outstanding commitment in FY2007 was ¥11.7 trillion, up 2.4% over the previous year.
● Outstanding Commitment●Outstanding Commitment by Region

-300
2003

7.8

2004

8.2

North America 4.0 ％

2005

9.3

2006

Premium income 30.4 21.3 34.2 44.8 35.7 44.7 46.2 44.1 43.5 41.0 46.0 45.4
Recoveries and34.9 40.0 69.3 38.7 40.7 111.2 77.3 85.2 98.3 121.2 123.0 91.3
other income
109.5 164.8 142.7 198.6 341.9 148.2 128.0 80.6 57.1 44.4 30.2 16.7
Claims paid
Outstanding Balance 219.5 284.8 294.1 369.8 637.8 688.6 674.4 622.4 536.0 404.1 251.8 127.8
at the end of year

33.2

32.9

37.3

31.3

43.2

34.9

36.8

84.6

85.3

74.5

70.2

97.7 101.4 228.7 247.3

38.0

43.8

57.5

21.6

32.4

49.9

65.1

23.0

12.9

3.7

2.4

3.8

0

0

0

0

0

0

0

0

0

※On an actual payment basis. Premium income does not include refunded premiums.

■ World Events
1987 Black Monday, 1988 Cease-fire in Iran-Iraq war, 1989 Paris Club rescheduling agreement, between 24 countries including Central and South Americancountries / Fall of Berlin Wall, 1990 Invasion of Kuwait / German reunification, 1991 Gulf War / Dissolution of the Soviet Union, 1992 Bosnia and Herzegovina
conflict, 1993 Foundation of EU, 1994 Meeting between former US President Jimmy Carter and North Korean leader Kim II-Sung, 1995 Foundation of the WTO,
1996 Japanese embassy hostage crisis in Peru, 1997 Asian currency crisis, 1998 Russian financial crisis / Brazilian crisis (with the declaration of a moratorium in1999), 1999 Introduction of euro / The Year 2000 Problem, 2001 Argentina's declaration of a moratorium / The September 11th terrorist attacks, 2002 Bali
bombings, 2003 Iraq war / Outbreak of SARS, 2004 Avian flu pandemic / Sumatra earthquake, 2005 Prepayments to the Paris Club by Russia and Nigeria /Venezuela's nationalization of mineral resources, 2006 Military coup in Thailand, 2007 the subprime mortgage crisis

41.8 ％
28.2％

11.4

2007

Asia

8.0％

Europe11.7
01987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1.5 ％International
Organizations 1.3 ％Central America 5.6 ％-500（Billions of yen）

Oceania

4.8 ％South America

-400

2

4

6

8

10

Middle East

12

（Trillions of yen）

4 Premium Income●Premium Income in FY2007 was ¥36.2 billion, down 4.5% compared with the previous year. (Premium income includes
premium of original insurance written and premium received for reinsurance)（Fiscal Year）

44.9

2003

2004

41.3

2005

40.3

37.9

2006

36.2

2007
0

07

4.7 ％

Africa（Fiscal Year）

-700

46.2％
12.9 ％

Europe15（Trillions of yen）

-600

2.2 ％

Asia

100

0

OceaniaInternational
Organizations 0.6 ％

10

20

30

40

50

（Billions of yen）

08

Main Data
for Fiscal Year 2007
Annual Report FY2007

5 Claims Paid

6 Recoveries●The total amount of claims paid in FY2007 was ¥3.8 billion, up 56.3% from the previous year.

●Recoveries in FY2007 amounted to ¥57.5 billion, an increase by 76.8% from the previous year.

● Claims Paid by Risk（Political/Commercial）● Recoveries

Political●Claims Paid by Region

Commercial

Oceania

0.4％

Africa

1.5 ％

10.8

2003

1.7

2004

11.2

1.9 1.8

2005

12.2

1.9

Africa

2003

97.7

South
America
63.1％

12.9

North
America 2.5％

Asia
16.6％

2004

101.4

CentralAmerica 2.4％

228.7

13 ％

Middle East 4.4 ％Europe 55.6％

247.3

2006

2.4
57.5

2007

●Claims Paid by Region（Political）

2.5 1.3 3.8

2007

Asia

CentralAmerica 4.3％

2005

3.7

10.7％

South
America 12％

Europe 13.6％

23.0

0.6
2006

● Recoveries by Region（Fiscal Year）（Fiscal Year）

Ⅲ

0

0

5

10

15

20

25

Africa

50

100

150

200

250
（Billions of yen）

2.3 ％North America 1.8 ％（Billions of yen）

●Claims Paid by Policy Term
South America 95.9％
One year or lessMore than one year

（Fiscal Year）

1.7

2003

21.3

23.0

●Claims Paid by Region（Commercial）
2.0

2004

10.9

12.9

0.5
3.2

2005

1.9

3.5

0

South America

0.2％
6.9％

North America 3.8％
2.4

0.3
2007

1.1％

Central America

3.7

0.5
2006

Oceania

Europe
39.6％

3.8

5

10

15

20

Asia
48.4％

25
（Billions of yen）

09

10

Asia

Ⅳ

11

Main Projects
Recently Underwritten
Annual Report FY2007Ⅳ

Main Projects Recently
Underwritten

Indonesia

Singapore

Kangean Gas Block Project

Semiconductor Manufacturing Equipment Project

NEXI provided cover of Overseas Investment
Insurance for Mitsubishi Corporation's
investment of approximately US$180 million in
acquiring a project company that has a stake in
Kangean gas block located in offshore East
Java, Republic of Indonesia. The Kangean block
produces approximately 6,000 cubic feet of
natural gas per day and approximately 600
barrels of crude oil per day (average production
in 2006). A number of new gas fields and oilfields will be developed in the future in the blockin which discovery of more natural gas andcrude oil is expected.
This transaction provides support to acquisitionof stakes in overseas resources by Mitsubishi
Corporation which regards development of gas
and oil as one of its strategic priority businessareas.
(The insurance contract was concluded in
April 2008.)

NEXI has provided cover of Buyer's Credit Insurance for approximately JPY15 billion which is half
the amount of loan of JPY30 billion extended by Japan Bank for International Cooperation (JBIC)
and Sumitomo Mitsui Banking Corporation for a project of exporting semiconductor
manufacturing equipment. Tokyo Electron Limited, Dainippon Screen Mfg. Co., Ltd., and Nikon
Corporation will export semiconductor manufacturing equipment to Chartered Semiconductor
Manufacturing Ltd., a semiconductor manufacturer in Singapore.
(The insurance contract was concluded in March 2008.)

ThailandChina

Bulk Carriers Export Project

Pulp and Paper Mill Construction Project

NEXI has underwritten Buyer's Credit Insurance for the loan of approximately JPY3.2 billion(portion extended by private financial institution) which is half the total amount of loan ofapproximately JPY6.4 billion extended by the Japan Bank for International Cooperation (JBIC)
and commercial bank Société Générale, Tokyo Branch. The loan will be used by Thoresen Thai
Agencies Public Company Limited (TTA) Group, a major shipping agent in Thailand to buy twobulk carriers built by Japan's Oshima Shipbuilding Co., Ltd. (Nagasaki) and the bulk carriers will
be exported by Sumitomo Corporation.
This transaction provides
support to export by Oshima
Shipbuilding Co., Ltd. that has
built approximately 400 bulk
carriers since it was founded.
(The insurance contract was
concluded in January 2008.)

NEXI has underwritten Overseas Investment Insurance for investment of approximately US$820
million by Oji Paper Co., Ltd. to Jiangsu Oji Paper Co., Ltd. Oji Paper Co., Ltd. established the
Jiangsu Oji Paper Co., Ltd. through joint capital with the Nantong Economic & Technological
Development Zone Corp. in Nantong, Jiangsu Province, China in October 2007. The construction
work was started at the beginning of 2008 and in the latter half of 2010 the first manufacturing
facility for high-grade papers with an annual manufacture of 400 thousand tons is expected tostart operations followed by a kraft pulp facility with an annual manufacture of 700 thousand tons
and second manufacturing
facility for high-grade papers
with an annual manufacture of
400 thousand tons.
Overseas Investment Insurance
contributes to smooth
investment by Japanesecompanies aiming at
establishing a production baseabroad.
(The insurance contract was
concluded in July 2007.)

12

Main Projects
Recently Underwritten
Annual Report FY2007

Yemen

Saudi Arabia

Yemen LNG ProjectShuqaiq 2 IWPP Project

NEXI has underwritten Buyer's Credit Insurance for the loan of US$80 million extended by private
financial institutions (The Bank of Tokyo-Mitsubishi UFJ, Ltd. etc.) as project finance for Yemen
LNG Project in Republic of Yemen, sponsored by France's TOTAL, etc. This is an extremely
significant transaction for the country since through this project, the Yemen government will makeeffective use of natural gas in the Marib oil and gas fields to increase foreign currency revenue andcreate local employment. Companies including JGC Corporation are participating in the project asexporters of LNG plant, etc. aswell as The Bank ofTokyo-Mitsubishi UFJ, Ltd. as
the agent bank for NEXI and
JBIC's tranche.
(The insurance contract was
concluded in May 2008.)

NEXI has underwritten Export Credit Insurance for the transaction undertaken by Mitsubishi
Heavy Industries, Ltd. regarding construction of oil burning power plant and desalination
plant for the Shuqaiq Water and Electricity Company (SqWEC) in Saudi Arabia.
SqWEC, an Independent Water & Power Producer (IWPP), has signed a 20 year supply
contract for water and power with Saudi Arabia's Water and Electricity Company (WEC), a
fifty-fifty joint venture by Saudi Electric Company (SEC) and Saline Water Conversion
Corporation (SWCC). Based on this contract, a thermal power plant with total output
power of 1,020 MW and a desalination plant with daily output of 216,000m3/day will be
newly constructed in Shuqaiq, Saudi Arabia. The produced water and electricity from theplants is for general use and will be supplied to cities in the south such as Abha and Jizan.
This project is one of the large-scale IWPP transactions to be implemented in Saudi Arabia
maintaining steady economic and population growth and expected to be conducive tosolving the short supply of electricity and drinking water. Providing cover for thistransaction is significant in that it contributes to strengthening relations with Saudi Arabia,
the largest crude oil importing country for Japan.
(The insurance contract was concluded in May 2007.)

Ⅳ

13

TurkeyKazakhstan

Bosporus Rail Tube Crossing Project 2

Uranium Deposit Development ProjectThis is a project to improve the Bosporus Rail Tube Crossing by the General Directorate ofRailways, Harbours and Airports Construction in Turkey. NEXI has underwritten Export Credit
Insurance for the transaction undertaken by an international consortium formed by Marubeni
Corporation with France's Alstom and Turkey's Dogus regarding the project.
Through this improvement project an undersea railway tunnel will be laid in the Bosporus Strait
and repair work will be implemented for the surrounding railway lines. Following the first stage ofthe project to construct the undersea railway tunnel (Japanese government's yen-loan-financed
project), construction of an additional third railway overland and load dispatching facilities,
improvement on electrification, signal, and communication facilities, renovation of stations, andconstruction of rail yards are planned for this second stage of the project. The implementation ofthis railway improvement project is expected to provide relief for the chronic traffic congestion in
Istanbul.
(The insurance contract was
concluded in August 2007.)NEXI signed a Memorandum of Understanding with Kazatomprom, Kazakhstan's national
atomic company which ensured a credit line of US$500 million for loans related to offtake ofuranium in April 2007 when a joint mission by government and private sectors led by the thenMinister of Economy, Trade and Industry Akira Amari visited the country.
In August 2007, NEXI provided Overseas Untied Loan Insurance (Investment and Loan
Insurance for Natural Resources and Energy) under the credit line for a US$30 million loan
extended to Kazakhstan's uranium deposit production and development project by a syndicate
of Japanese banks (Citibank Japan Ltd. etc.). This is the first project to be covered by
Investment and Loan Insurance
for Natural Resources andEnergy created in April 2007.
Since Kazakhstan is a
resource-rich country with thesecond-largest uranium
deposits in the world, thistransaction is expected tocontribute to securing stablesupply of resources and energy
and diversifying the sources ofsupply for Japan.
(The insurance contract was
concluded in August 2007.)

EuropeMiddle East

Photograph courtesy of Yemen LNG

14

Main Projects
Recently Underwritten

South America

Annual Report FY2007

15

BrazilVenezuela

Establishment of Insurance Credit Line for ValeMoron Fertilizer Complex Project

NEXI and Companhia Vale Do Rio Doce (Vale), a global mining company headquartered in Brazil,
signed an Umbrella Note of Mutual Understanding (Note) which on May 14, 2008 established theinsurance credit line of US$2 billion for Investment and Loan Insurance for Natural Resources andEnergy and Overseas Untied Loan Insurance to support Vale's resources development projects
that may be beneficial to Japan and Japanese companies. The signing ceremony for this Note
was held between Vale's CEO Agnelli and NEXI's Chairman Konno in the presence of the thenMinister of Economy, Trade and Industry, Mr. Amari, and relevant people from the Ministry of
Economy, Trade and Industry and Vale. The signing of this Note enables NEXI to develop aframework for promoting Vale's resource development projects more promptly and efficiently.
Further, it increases
opportunities for Japanesecompanies to invest andacquire interests in mineral
resources development
business (for iron ore, nickel,
aluminum related minerals,coal, etc.) and to offtake
resources, which is expected tolead to securing stable supplyof resources for Japan.

NEXI has provided cover of Export Credit Insurance for the transaction undertaken by ToyoEngineering Corporation jointly with a German company and a Venezuelan company for the
project of constructing a fertilizer complex from Pequiven, Venezuela's state-owned
petrochemical company.
This is Venezuela's national project of constructing a fertilizer complex that producesammonia and urea made from natural gas abundantly found in the country within theMoron Petrochemical Complex located in Moron City 150 km west of the capital Caracas.
The products from the complex will be used to increase production of agricultural productsof the country. Under thecircumstances where fertilizer
prices are escalating globally, thisproject is expected to provide analternative to fertilizers which aredependent on imports as well as
contribute to the expansion ofarable land planned in Venezuela.
(The insurance contract was
concluded in December 2007.)

Ⅳ

Peru
Cerro Verde Copper Mine Project
NEXI has given a preliminary approval for providing Overseas Investment Insurance (Investment
and Loan Insurance for Natural Resources and Energy) to the investment totaling approximately
US$263 million extended to Sociedad Minera Cerro Verde S. A. A. (head office: City of Arequipa,
Peru) developing the Cerro Verde Copper Mine in Republic of Peru by Sumitomo Metal Mining
Co., Ltd. Cerro Verde Copper Mine produces the second-largest amount of copper in Peru andthrough this investment, long-term offtake of copper concentrate, raw material for copper
products will be ensured. This transaction supports investment in overseas mining business by
Japanese companies to securestable and lasting supply of
resources.
(The preliminary approval forthe insurance contract wasgiven in August 2008.)

16

Main Projects
Recently Underwritten

North America

Annual Report FY2007

United States of America

Reinsured Project

Linked Pickle Line/Tandem Cold Rolling Mill Project

Project to export Boeing Aircraft to Air India and Jet
Airways

NEXI has underwritten Buyer's Credit Insurance (2 years or more) for the loan of US$86 million
extended by a private financial institution, Commerzbank AG, Tokyo Branch for the export of
Linked Pickle Line/Tandem Cold Rolling Mill to be supplied by Mitsubishi Corporation and
Mitsubishi-Hitachi Metals Machinery, Inc. to SeverStal North America, Inc. (SNA), a US-based
affiliate of OAO SeverStal, Russia's leading metals and mining company. The US is the world's
largest consumer of automobiles and the world's leading steel market. The facility will play animportant role in producing steel sheet for automobiles which is an indication that Japanesetechnology has been highly evaluated in a situation where Japanese companies are in severe
competition with European manufacturers.
This is the first time NEXI has provided cover (what is termed pure cover) of Buyer's Credit
Insurance (2 years or more) for
financing extended only bycommercial bank(s). We intend
to further provide active
support for the financing ofJapanese companies’ export
and technical cooperationtransactions not just with the
US but with other developed
countries.
(The insurance wasconcluded in September
2007.)Ⅳ

Based on the Reinsurance Agreement concluded with the Ex-Im Bank of the UnitedStates (USEXIM), an export credit agency of the United States, NEXI has underwritten
several export finance transactions of Boeing 777 aircraft, such as for National
Aviation Company of India (Air India) and Jet Airways in India. Japanese companies
have been playing a major role in the development and manufacture of Boeing 777
aircraft including delivery of engine parts and have become the major partner ininternational joint projects. NEXI’s reinsurance program to USEXIM regarding Boeing
aircraft strengthens the competitiveness of Japanese manufacturers expanding in theaerospace industry, which is effective in achieving the policy objective of theJapanese government.

(Photographs courtesy of Boeing)

Algeria

AfricaSonatrach LPG Plant Expansion Project17

NEXI has underwritten Export Credit Insurance for the transaction undertaken by
Ishikawajima-Harima Heavy Industries Co., Ltd. and ITOCHU Corporation for the LPG plant
expansion project with the total amount of JPY130 billion from Sonatrach, the Algerianstate-owned hydrocarbon company.
A separation/purification plant facility and storage facility which produces an annual output of 3
million tons of LPG will be newly constructed in Arzew, an industrial area located in western
Algeria. After the completion of the facilities, the plant will become a huge LPG plant which
together with the existing plant
produces an annual output of 9
million tons of LPG. The projectis expected to contribute toexpanding production ofliquefied petroleum gas (LPG),
which is a leading industry of
the country, when there ismuch demand for fuel all over
the world.
(The insurance contract was
concluded in July 2007.)

Japanese Manufacturers
Parts export
Reinsurance
Agreement

USEXIM

The Boeing Company

Guarantee

Aircraft saleCommercial
Banks

Debt
service

Airline Companies
Loan

18

Implementation ofConfirming Environmental
and Social Considerations

Ⅴ

Ⅴ

Annual Report FY2007

Implementation of Confirming Environmental
and Social Considerations

Nippon Export and Investment Insurance (NEXI) confirms whether appropriate environmental and social considerations
are being addressed in projects 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 examinedbased on the classification results. For example, on-site visits are conducted for “Category A” projects.
The number of projects screened in fiscal 2007 increased compared with the previous fiscal year. Further, in response toincreasingly diversified export and investment patterns, NEXI has conducted screenings that are more precise andprompt.

● Results of Screening Conducted
117（Number of screenings）

99

120
100

80

103

75

80
60
40
20
0

FY2007

FY2006

FY2005

FY2004

FY2003● Percentage of Screening

in FY2007 by Category

A7.5%
B 1.3%

C 91.3%● Percentage of Screening

in FY2007 by Region

On-site Visits

Central/Eastern Europe,
Russia and CIS 8.8%
Middle East 3.8%

Latin America
31.3%

Other 1.3%

Asia
55.0%

Please click the following URL for details of the “Environmental and Social Considerations in Trade Insurance.” http://nexi.go.jp/e/env/index1_frame.html

19

20

Ⅵ

Review of Performancein Fiscal Year 2007
Annual Report FY2007

Ⅵ

Review of Performancein Fiscal Year 2007

1 Economic Trends

3 Summary of Underwriting[Underwritten Amount by Insurance Type]Japan’s economy was on a steady recovery in FY2007. Improvement in the corporate sector such as earnings and capital
investment spread to the household sector, leading to a gradual improvement in consumer spending. On the other hand, theinternational financial situation reached a turning point, which had been brought about by the sub-prime mortgage crisis, andrisks in the global economy have increased since the second half of the fiscal year.
Under such circumstances, Japan’s exports in FY2007 increased by 9.9% to ¥85.1 trillion compared with the previous year.
Japan’s exports to other Asian countries and to Europe (EU) increased by 11.5% and 11.3%, respectively. The major export
earners were cars, steel and semiconductors.
（Japan s exports）（Billions of yen）

The total underwritten amount in FY2007 was down by 36.0% year-on-year to ¥9,521.0 billion. In terms of type of insurance,
Export Credit Insurance accounted for the largest share at 95.4%, though decreased by 36.4% to ¥9,084.7 billion. This wasfollowed by Overseas Investment Insurance of ¥155.2 billion (down by 42.9% from the previous year) and Overseas Untied Loan
Insurance of ¥101.9 billion (down by 46.3% from the previous year).
（Billions of yen）

Type of Insurance

FY2003

FY2004

FY2005

FY2006

FY2007

Composition(%)

Export Credit Insurance

10,211.8

10,529.5

11,499.7

14,290.5

9,084.7

95.4

Less than 1 year

6,278.5

6,539.3

6,923.8

8,284.6

4,174.9

43.8

1 year or more

3,933.2

3,990.2

4,575.9

6,005.9

4,909.8

51.6

Fiscal Year

2003

2004

2005

2006

2007

Buyers Credit Insurance

332.3

155.1

106.7

60.8

83.6

0.9

Total Exports

56,060.3

61,719.4

68,290.2

77,460.6

85,115.9

Export Bill Insurance

41.9

41.6

38.1

32.8

29.2

0.3

9.9

Export Bond Insurance

0

0

0

0

0

0.0

Prepayment ImportInsurance

0.8

1.8

2.0

0.0

0.9

0.0

Overseas Investment
Insurance

63.8

55.1

156.8

271.9

155.2

1.6

Overseas Untied Loan
Insurance

172.4

404.6

505.1

189.7

101.9

1.1

Trade Insurance for Standing
Orders from Speciﬁc Buyer

0.9

2.0

7.8

3.4

7.4

0.1

Export Credit Insurance
for SMEs

-

-

0.4

0.5

0.4

0.0

6.3

Year-to-year change (%)

10.1

10.6

13.4

（Source: Trade Statistics, Ministry of Finance）

2 Summary of Trade and Investment Insurance Business[Underwritten Amount]（Billions of yen）

Fiscal Year

2003

2004

2005

2006

2007

Year-to-year change (%)

Underwritten Amount

10,828.4

11,191.7

12,327.7

14,879.4

9,521.0(36.0)[Outstanding Commitment]（Billions of yen）

Fiscal Year

2003

2004

2005

2006

2007

Year-to-year change（％）

Outstanding Commitment

7,795.6

8,240.2

9,268.3

11,427.0

11,706.7

2.4

Reinsurance

4.7

2.0

11.1

29.7

57.7

0.6

Total

10,828.4

11,191.7

12,327.7

14,879.4

9,521.0

100.0（Note 4）The total is based on actual underwritten amount calculated by applying exchange rate of the date of contract, not based on the methods for responding to
exchange rate.
（Note 5）In April 2005, Buyer’s Credit Insurance was developed independently from Export Credit Insurance. However, for convenience of comparison, buyer’s
credit-related figures in and before FY2004 are indicated as Buyer’s Credit Insurance, and are excluded from Export Credit Insurance figures.
（Note 6）Since FY2006, in accordance with the BU classification rules, Export Credit Insurance (1 year or more) has included insurance for capital goods, which usually has
a long pre-shipment insurance period.

[Amount Underwritten by Region]

In a breakdown by region (based on total income including assured reinsurance), the largest share of ¥4,817.8 billion was Asiantransactions, followed by Middle East transactions of ¥1,342.8 billion. In comparison with the previous fiscal year, Asiantransactions decreased by 5.6% and Middle East transactions decreased by 48.2%.
（Billions of yen）

[Operating Income]

5,100.9

4,817.8

46.2

(5.6)

2,170.6

2,594.0

1,342.8

12.9(48.2)(4.3)

Europe2,356.8

2,258.7

2,313.3

2,695.5

1,226.8

11.8(54.5)(76.7)

North America

2,567.4

2,589.3

2,971.9

3,718.9

634.6

6.1

(82.9)(67.1)

Central America

654.9

936.0

749.6

910.8

977.0

9.4

7.3

South America

195.2

313.6

380.8

403.0

484.2

4.6

20.2

Africa

292.3

305.0

430.9

601.9

640.8

6.2

6.5

Oceania

433.7

496.7

531.1

560.9

228.4

2.2

(59.3)

International
Organizations

282.1

180.7

168.5

74.7

66.1

0.6

(11.5)

Premium income

44.9

41.3

40.3

37.9

36.2

142.6

142.7

269.1

285.2

93.6

（Note1）
Recoveries are on a payment notice receipt basis.
（Note2）
Because of the rounding up or down of fractions, the sum of the items in the columns above does not necessarily coincide withthe total amount. (The same applies hereafter.)（Note3）Premium income includes premium of original insurance written and premium received for reinsurance.

[Claims Paid]

21

Year-to-yearchange (%)

4,126.8

Year-to-year change（％）

Total

Composition(%)

1,072.8

2007
57.5

FY2007

4,422.7

2006
247.3

FY2006

985.8

2005
228.7

FY2005

4,455.9

2004
101.4

FY2004

Asia

2003
97.7

FY2003

Middle East

（Billions of yen）

Fiscal Year
Recoveries（Note 1）

Region（Billions of yen）

Fiscal Year

2003

2004

2005

2006

2007

Year-to-year change（％）

Claims paid

23.0

12.9

3.7

2.4

3.8

56.3

（Note 7） 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 8） 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 9） Central Asia is included in Asia. (The same applies hereafter.)
Central and Eastern Europe and Russia are included in Europe. (The same applies hereafter.)（Note 10）22

Review of Performancein Fiscal Year 2007
Annual Report FY2007[Top Ten Countries and Regions of Underwritten Amount in FY2007]（Billions of yen）

Order

Country/Region

Underwritten amountComposition (%)

1

China

1,321.8

12.7

2

Korea

621.7

6.0

3

Panama (flag of convenience vessel)

579.1

5.6

4

U.S.A.

530.1

5.1

5

Singapore

468.7

4.5

6

Taiwan

418.9

4.0

7

Saudi Arabia

407.9

3.9

8

Thailand

390.7

3.8

9

Indonesia

313.1

3.0

10

U.A.E.

285.3

2.7

Ⅵ

4 Outstanding Commitment[Outstanding Commitment by Type of Insurance]
The total outstanding commitment as of the end of FY2007 was ¥11,706.7 billion, up 2.5% year-on-year. In a breakdown by
insurance type, Export Credit Insurance was the largest with ¥9,452.3 billion, followed by Overseas Untied Loan Insurance of¥821.0 billion.
（Billions of yen）

Type of Insurance

FY2003

FY2004

FY2005

FY2006

FY2007

Composition(%)

Export Credit Insurance

5,610.1

5,999.2

6,865.3

8,746.6

9,452.3

80.7

Less than 1 year

1,060.5

1,050.0

1,148.9

1,588.5

2,296.5

19.6

1 year or more

4,549.6

4,949.2

5,716.4

7,158.1

7,155.7

61.1

Buyers Credit Insurance

892.6

906.9

852.9

828.7

658.8

5.6

Export Bill Insurance

9.4

9.4

7.9

7.3

7.8

0.1

Export Bond Insurance

6.8

5.6

5.6

0.4

0

0.0

Prepayment ImportInsurance
Overseas Investment
Insurance
Overseas Untied Loan
Insurance
Trade Insurance forStanding Orders with
Speciﬁc Buyer

0.5

1.5

2.1

0.0

0.6

0.0

533.2

458.3

461.5

635.8

666.5

5.7

737.0

849.7

1,046.4

1,139.6

821.0

7.0

0.9

2.1

8.6

9.5

8.5

0.1

-

-

0.1

0.1

0.1

0.0

Export Credit Insurance
for SMEs

Reinsurance

5.1

7.5

17.8

58.8

91.1

0.8

Total

7,795.6

8,240.2

9,268.3

11,427.0

11,706.7

100.0（Note 11）The total is based on an exchange rate of each fiscal year end.
（Note 12）In April 2005, Buyer’s Credit Insurance was developed independently from Export Credit Insurance. However, for convenience of comparison, buyer’s
credit-related figures in and before FY2004 are indicated as Buyer’s Credit Insurance, and are excluded from Export Credit Insurance figures.
（Note 13）Since FY2006, in accordance with BU classification rules, Export Credit Insurance (1 year or more) has included insurance for capital goods, which usually has along pre-shipment insurance period.

[Outstanding Commitment by Region]
In terms of region, Asia accounted for the largest amount of ¥5,033.3 billion, up 41.8% from the previous year. The
Middle East also increased by 28.2%.

（Billions of yen）

Region

FY2003

FY2004

FY2005

FY2006

FY2007

Composition(%)

Asia

4,043.9

3,914.9

3,613.7

4,319.0

5,033.3

41.8

Middle East

851.6

1,292.1

2,447.1

3,506.2

3,391.3

28.2

Europe972.0

1,033.9

1,070.8

1,160.8

961.2

8.0

North America

378.2

436.6

559.2

746.5

485.6

4.0

Central America

729.2

835.8

755.1

680.7

674.6

5.6

South America

459.4

492.5

540.3

577.9

581.1

4.8

Africa

359.8

217.9

254.4

400.3

564.4

4.7

Oceania

107.9

122.2

152.1

191.7

177.4

1.5

International
Organizations

154.6

129.8

175.0

154.6

159.7

1.3

（Note 14）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 15）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 16）Transactions guaranteed by an international organization are reported separately.

23

24

Review of Performancein Fiscal Year 2007
Annual Report FY2007

5 Insurance Claims Paid

6 Recoveries[Insurance Claims Paid by Insurance Type and by Risk]

Recoveries for FY2007 decreased from ¥247.3 billion to ¥57.5 billion, by ¥189.8 billion or 76.8% compared with the previous
fiscal year.This is mainly due to a decrease in the amount that was to be repaid initially in FY2007 as major debt rescheduledcountries such as Russia and Brazil had repaid their rescheduled debts earlier in the previous fiscal year. In a breakdown by
type of risk, political risk recoveries accounted for 94.5% (¥54.3 billion), with the remaining 5.5% (¥3.2 billion) coming fromcommercial risk recoveries. The top five recoveries in terms of country in FY2007 were ¥30.3 billion from Poland (¥11.4 billion in
the previous fiscal year), ¥4.6 billion from Egypt (¥4.4 billion in the previous fiscal year), ¥4.5 billion from Peru (¥0.6 billion in theprevious fiscal year), ¥3.6 billion from Indonesia (¥13.3 billion in the previous fiscal year), and ¥1.9 billion from Cuba (¥2.0 billion
in the previous fiscal year), which accounted for 78.1% of the total recoveries.

The total amount of claims paid in FY2007 was ¥3.8 billion, up 56.3% over the previous fiscal year. The payment increased
compared with the previous year but remained low, reflecting a stable world economy including high resource prices.
（Billions of yen）
FY2003

Type of Insurance

Total

FY2004

Political CommerRisk
cial Risk

Export Credit Insurance

19.7

9.8

Buyer’s Credit Insurance

0.4

0.4

Export Bill Insurance

0.2

0Export Bond Insurance00Prepayment import Insurance

0

0

10.0

Total

FY2005

Political CommerRisk
cial Risk

5.9

Total

FY2006

Political CommerRisk
cial Risk

7.3

1.4

3.0

1.3

0

0

0

0

0

0

0.2

0.0

0

0.0

0.1

0.0

0

0

0

0

0

0

0

0

0

0

0

0

Total

1.7

FY2007

Political CommerRisk
cial Risk

2.2

1.8

0

0

0

0.1

0.1

0

0

0

0

0

0

0

0.4

Total

Political CommerRisk
cial Risk

3.7

2.4

0

0

0.1

0.1

0
0

Composition(%)

1.2

96.5

0

0

0.0

0

0.1

1.7

0

0

0

0.0

0

0

0

0.0

Type of Risks

FY2003

FY2004

FY2005

FY2006

FY2007

94.3

94.3

225.7

235.1

54.3

[Recoveries by Risk]（Billions of yen）

Overseas Investment Insurance

0.5

0.5

0

0.2

0.2

0

0

0

0

0

0

0

0

0

0

0.0

Political Risk

Overseas Untied Loan Insurance

2.1

0.1

2.0

5.3

0.1

5.2

0.7

0.7

0

0.1

0.1

0

0.1

0.1

0

1.5

Commercial Risk

3.5

7.1

3.0

12.2

3.2

Total Recoveries

97.7

101.4

228.7

247.3

57.5

Trade Insurance for Standing
Orders from Specific Buyer

0

0

0

0

0

0

0.0

0

0.0

0

0

0

0.0

0

0.0

0.1

Export Credit Insurance for SMEs

-

-

-

-

-

-

0.0

0

0.0

0.0

0

0.0

0.0

0

0.0

0.2

Total

23.0

10.8

12.2

12.9

1.7

11.2

3.7

1.9

1.8

2.4

1.9

0.6

3.8

2.5

1.3

100.0

[Insurance Claims Paid by Region]（Billions of yen）

FY2003

RegionTotal

FY2004

Political CommerRisk
cial Risk

Total

FY2005

Political CommerRisk
cial Risk

Total

FY2006

Political CommerRisk
cial Risk

Total

FY2007

Political CommerRisk
cial Risk

Total

Political CommerRisk
cial Risk

Composition(%)

Asia

18.3

6.9

11.3

11.2

0.1

11.1

1.4

0.1

1.4

0.2

0

0.2

0.6

0

0.6

16.6

Middle East

1.0

1.0

0.0

0.1

0.1

0.0

1.1

1.0

0.1

0.0

0

0.0

0

0

0

0.0

Europe

0.1

0

0.1

0.0

0

0.0

0.0

0.0

0.0

0.1

0

0.1

0.5

0

0.5

13.6

North America

0.1

0.0

0.1

0.0

0

0.0

0.1

0.0

0.0

0.1

0.1

0

0.1

0.0

0.0

2.5

Central America

0.0

0

0.0

0

0

0

0.3

0

0.3

0.1

0.0

0.0

0.1

0

0.1

2.4

South America

3.3

2.6

0.7

1.3

1.3

0.0

0.7

0.7

0.0

1.8

1.7

0.1

2.4

2.4

0.0

63.1

Africa

0.3

0.3

0

0.2

0.2

0.0

0.1

0.1

0

0.2

0.1

0.0

0.1

0.1

0

1.5

Oceania

0.0

0

0.0

0

0

0

0

0

0

0.1

0

0.1

0.0

0

0.0

0.4

Total

23.0

10.8

12.2

12.9

1.7

11.2

3.7

1.9

1.8

2.4

1.9

0.6

3.8

2.5

1.3

100.0

[Recoveries by Region]
In a breakdown by region, recoveries from Asia decreased by 68.8% to ¥7.5 billion compared with the previous fiscal year. Of
all the Asian recoveries, 93.5% are from four countries: Indonesia with ¥3.5 billion (¥13.3 billion in the previous fiscal year),
Singapore with ¥1.3 billion (¥1.2 billion in the previous fiscal year), Malaysia with ¥1.1 billion (¥0.1 billion in the previous fiscal
year), and Myanmar with ¥1.0 billion (¥0.6 billion in the previous fiscal year). Recoveries from the Middle East increased by
19.3% to ¥2.5 billion, of which ¥1.4 billion was from Syria (¥1.5 billion in the previous fiscal year) and ¥1.1 billion was from
Jordan (¥0.7 billion in the previous fiscal year), accounting for 98.6% of the recoveries from this region. Recoveries from Europe
were ¥32.0 billion, down by 68.2% from the previous fiscal year. Poland, Belarus, and Serbia accounted for 98.3% of the total
European recoveries, with ¥30.3 billion (¥11.4 billion in the previous fiscal year), ¥0.7 billion (¥0.7 billion in the previous fiscal
year), and ¥0.5 billion (¥0.3 billion in the previous fiscal year), respectively. Recoveries from North and Central America also
decreased by 18.6% to ¥2.5 billion, of which ¥1.9 billion was from Cuba (¥2.0 billion in the previous fiscal year) and ¥0.5 billion
was from Dominican Republic (¥1.1 billion in the previous fiscal year). They accounted for 100% of the recoveries from thisregion. Recoveries from South America were ¥6.9 billion, decreased by 80.6% from the previous fiscal year. Recoveries from
Peru, Argentina, and Ecuador were ¥4.5 billion (¥0.6 billion in the previous fiscal year), ¥1.3 billion (¥1.8 billion in the previous
fiscal year), and ¥1.0 billion (¥1.1 billion in the previous fiscal year), respectively. The recoveries from them occupied 98.4% of
the total recoveries from South America. Recoveries from Africa were down by 92.5% to ¥6.2 billion. Egypt and Angola
accounted for¥4.6 billion (¥4.4 billion in the previous fiscal year) and ¥1.3 billion (¥3.6 billion in the previous fiscal year),respectively. Rrecoveries from the two countries occupied 96.0% of the total from Africa.
（Billions of yen）

（Note 17）Because of the rounding up or down of fractions, the sum of the items in the columns above does not necessarily coincide with the total amount.

[Top Five Countries/Regions in terms of Insurance Claims Paid]（Billions of yen）

Order

Country/Region

Total Claims Paid

Political Risk

Commercial Risk

Ⅵ

Region

FY2003

FY2004

FY2005

FY2006

FY2007

Composition (%)

Year-to-yearchange (%)

Asia

11.9

16.4

11.5

23.9

7.5

13.0

Middle East

1.7

1.7

1.8

2.1

2.5

4.4

19.3

Europe

19.6

35.2

90.0

100.4

32.0

55.6

(68.2)

North America

0

0.0

0

0

0

0.0

-

Central America

1.1

0.6

2.4

3.1

2.5

4.3

(18.6)South America

26.4

29.6

33.5

35.4

6.9

12.0

(80.6)

Africa

37.1

17.9

89.4

82.5

6.2

10.7

(92.5)

0

0

0

0

0.0

0.0

-

97.7

101.4

228.7

247.3

57.5

100.0

(76.8)

1

Argentina

2.4

2.4

0

2

India

0.6

0

0.6

3

Sweden

0.4

0

0.4

4

U.S.A.

0.1

0.0

0.0

Oceania5

Mexico

0.1

0

0.1

Total

(68.8)（Note 18）Due to rounding up or down of fractions, the sum of each figure does not necessarily coincide with the total amount.

25

26

Ⅶ

Financial Results for
Fiscal Year 2007
Annual Report FY2007

Financial Results for
Fiscal Year 2007 (Year ending March 31,2008)

1 Fiscal Year 2007 in Review

2 Financial Statements

Nippon Export and Investment Insurance (NEXI), an incorporated administrative agency, submitted a financial statement for its
seventh year of operations (fiscal year 2007 ending March 31, 2008) to the Minister of Economy, Trade and Industry on June24, 2008 and Ministry approval was obtained as of July 30. In accordance with Article 39 of the Act on General Rules for
Incorporated Administrative Agency, the financial statement had been audited by KPMG AZSA & Co. appointed by the Ministerof Economy, Trade and Industry.

[Overview of Financial Statement]
Financial highlights for NEXI businessYear end: March 31（Millions of yen）

FY2003

FY2004

FY2005

FY2006

FY2007

Ordinary profit and loss
Ordinary income
Net premium written

9,436
9,253

9,346
8,571

11,585
9,586

12,5209,187

12,706（Millions of yen）

(Assets)(Liabilities)

Cash and cash items

38,822

Outstanding claims reserves

638

Securities

212,973

Reserves for outstanding commitments

13,184

Receivables subrogated by paying claims

239,281

Amount due to the reinsurer

6,504

Accrued income

601

Deposits received

10,485

Accrued premium

5,162

Prepaid insurance premium

3,367

Reinsurance credit

1,445

Buildings (Note 2)

Accrued amount payable

127

84

Reserves for bonus payment

126

5VehiclesReserves for retirement allowance

126

Equipment and fixtures (Note 4)

411

Other liabilities

793

Accounts receivable

37

Total liabilities

35,350

567

905

1,918

2,446

Ordinary expenses

8,505

7,027

7,544

7,081

11,433

Net claims paid

402

75

74

62

103

Operating and administrative
expenses

4,705

4,897

5,476

6,405

7,985

Provision for outstanding
commitments reserves

3,327

1,980

2,008

510

625

931

2,319

4,041

5,439

1,273

Extraordinary profit (loss)(Note)

17,112

3,173

52,501

18,953(84,982)

Net income (loss)

18,043

5,492

56,542

24,392

Ordinary profit (loss)[Balance Sheet (As of March 31,2008)]

9,615

9

Interest on securities(Note 3)

Deposits

398

Software

4,705

Other assets
Allowance for uncollectible receivables

54(201,816)(Net Worth)
CapitalGovernment investment

104,352
140,652

Capital surplus (Note 5)
Retained earnings
First target period reserve fund carried forward

24,585(83,709)

Surplus reserves

80,934

Unappropriated retained loss

83,709Total assets

217,309241,292

398,588377,995

302,164

Net worth

183,712

198,908

326,131

350,522

266,814(of which loss for the current year)
Total retained earnings（Note ）The profits and losses of assets acquired by subrogation and contributed in-kind by the government have been entered as extraordinary profit (and loss) inaccordance with the ministerial ordinance on the finance and accounting of the Incorporated Administrative Agency Nippon Export and Investment Insurance(Ordinance No. 104 of Ministry of Economy, Trade and Industry, March 29, 2001).

Total Assets[Profits and Losses]
In fiscal year 2007, the underwritten amount decreased 36.0% to ¥9,521,044 million compared to the previous fiscal year,
mainly due to cancellation of the comprehensive insurance contract with the Japan Automobile Manufacturers Association andintroduction of choice of insurance coverage system. The net premium written was up 4.7% to ¥9,615 million. Interest on
securities was also up 27.5% to ¥2,446 million due to increased holdings of securities including government bonds. Operating
and administrative expenses rose by ¥1,580 million to ¥7,985 million, with an increase in information processing expenses for
system development and amortization of capitalized software. As a result of an increase in system-related expenses as well as
exchange losses stemming from yen appreciation, ordinary income only increased 1.5% to ¥12,706 million compared to theprevious fiscal year. For extraordinary profit and loss, loss of ¥84,982 million was recorded. Extraordinary loss amounted to¥86,847 million mainly due to changes in accounting provisions including allowance for uncollectible receivables which is now
based on market value. It was also due to a decrease in the interest income from receivables acquired by subrogation andcontributed in-kind by the government, to ¥1,809 million from the previous fiscal year’s ¥9,543 million, caused by a decrease inestimated amount to be repaid as major debtor countries had completed payments in the previous fiscal year. As a result, net
loss for the current year was ¥83,709 million, and the amount was recorded as unappropriated retained loss. The first target
period reserve fund of ¥80,934 million will be used to reduce this retained loss, and the remaining balance of ¥2,775 million will
be carried forward.

27

Ⅶ

302,164（83,709）21,810Total net worth

266,814

Total liabilities and net worth

302,164（Note 1）Amounts between one million yen and 500 thousand yen were rounded up to one million yen. Amounts less than 500 thousand
yen were omitted.
（Note 2）The accumulated depreciation of buildings is ¥128 million.
（Note 3）The accumulated depreciation of vehicles is ¥3 million.
（Note 4）The accumulated depreciation of equipment and fixture is ¥297 million.
（Note 5）The breakdown of capital surplus is as follows:（Millions of yen）

Appraisal difference of receivables subrogated by paying claims
Appraisal difference of rescheduled claims
Evaluation of difference of commercial risk subrogated receivables

45,38649,225(3,838)

Evaluation of difference of capitalized amount

95,265（Total）

140,652

28

Financial Results for
Fiscal Year 2007
Annual Report FY2007[Statement of Income (From April 1,2007 to March 31, 2008)]（Millions of yen）

Net loss（Note ）
1.Amounts between one million yen and 500 thousand yen wererounded up to one million yen. Amounts less than 500 thousand
yen were omitted.
2.The breakdown of net premium written is as follows:（Millions of yen）

Premium of original insurance written
Refund of premium paid for reinsurance
Premium received for reinsurance
Premium paid for reinsurance(Total)3.The breakdown of net claims paid is as follows:

Insurance claims paid
Reinsurance claims recovered(Total)34,6442,417
1,527(28,973)
9,615（Millions of yen）

3,800
(3,696)
103

36,778

Reinsurance premium paid

(28,964)

Insurance claims paid

(3,800)

Reinsurance claims received

3,690

Income from recovery of receivables subrogated by paying claims

19,639Payment of recovered receivables subrogated by paying claims(8,265)

Income from recovery of receivables subrogated to the government

41,774

Payment of recovered receivables subrogated to the government(31,326)

Personnel expenses(1,411)Other operating expenses(5,316)（Millions of yen）

(99)

③ Recoveries of subrogated receivables that are not capitalized(Total)

(0)
(103)

(4)

(0)

Interests paid
Net cash provided by operating activities

28,939

Ⅱ. Cash flows from investing activities

1,809
57
1,866

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

① Capitalized amount of subrogated receivables acquired through claims payment② Difference of estimated value between the current year and the previous year
concerning subrogated receivables capitalized in line with the outstanding claims provision

6,091

Interests received(Increase) in time deposits(71,426)

Decrease in time deposits

68,942

Purchase of securities(52,898)

Redemption of securities

32,490Purchase of ﬁxed assets(1,197)(Increase) in deposits

417

Ⅲ. Cash flows from financing activities(2)

Finance lease payment(2)

Net cash (used in) provided by financing activities
Ⅳ. Foreign exchange difference related to cash and cash equivalents
Ⅴ. Net increase (decrease) in cash and cash equivalents

(1)
4,847

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

20,368

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

25,215（Note 1）Amounts between one million yen and 500 thousand yen were rounded up to one million yen. Amounts less than 500 thousand yen were omitted.
（Note 2）The breakdown of cash at the end of the current year by title of balance sheet is as follows:

2,286
11
2,714

(0)
(24,089)

Net cash (used in) provided by investing activities（Millions of yen）

Bad debt loss
Foreign exchange loss on receivables acquired by subrogationand contributed in-kind by the government
Other extraordinary loss
(Total)47
22,848Subtotal(1)Breakdown of profits relating to in-kind contribution of receivables acquired by government
subrogation

4.The breakdown of the estimated amount of insurance claims recovery is as follows:29

Premium received

Others5.The profits and losses of receivables acquired by subrogation and contributed in-kind by thegovernment were entered as extraordinary profit and loss in accordance with Article 2 of the
supplementary provision of the ordinance concerning the finance and accounting of theIncorporated Administration Agency Nippon Export and Investment Insurance (Ordinance
No. 104 of Ministry of Economy, Trade and Industry on March 29, 2001).

Interest income from receivables acquired by subrogation andcontributed in-kind by the government
Recovery of non-rescheduled claims acquired by subrogationand contributed in-kind by the government(Total)（Millions of yen）

Ⅰ. Cash flows from operating activities

12,706
9,616
9,615
2
2,978
533
2,446
111
111
11,433
1,136
103
511
(103)
625
2,236
7,985
76
0
75
1,273
1,866
1,866
86,847
2,714
84,13383,709Ordinary income
Underwriting income
Net premium written (Note 2)
Interest income on receivables subrogated by paying claims
Investment income
Income from interest
Interest on securities
OthersOther ordinary income
Ordinary expenses
Underwriting expenses
Net claims paid (Note 3)
Provision for outstanding claims reserves
Estimated amount of insurance claims recovery (Note 4)
Provision for outstanding commitments reserves
Foreign exchange loss
Operating and administrative expenses
OthersInterest paid
Other ordinary expenses
Ordinary profit
Extraordinary profit
Profit relating to in-kind contribution of receivables acquired by government subrogation (Note 5)
Extraordinary loss
Losses relating to in-kind contribution of receivables acquired by government subrogation (Note 5)
Provision for uncollectible receivables relating to in-kind contribution of receivables acquired by government subrogation[Statement of Cash Flows(From April 1, 2007 to March 31, 2008)]

Ⅶ

Cash and cash items
Time deposits
Balance of cash at the end of the current year
（Note 3）Significant non-cash transactions
The acquisition of assets under finance leases

Vehicles（Millions of yen）

38,822(13,606)
Total 25,215（Millions of yen）

Total

8
8

30

Financial Results for
Fiscal Year 2007
Annual Report FY2007

IV. Translation of Accounting Titles Distinctive to NEXI

Notes
I. Important Accounting Principles
Starting from the fiscal year ending March 31, 2008, NEXI’s
financial statements have been prepared under the revised
accounting standards for incorporated administrative agencies.
1. Accounting procedures of depreciation(1) Depreciation of tangible fixed assets
Depreciation of tangible fixed assets purchased with a value exceeding¥200,000, either singly or in sets, has been calculated by adopting astraight-line depreciation method. This is in accordance with the estimateduseful life stipulated in the Corporate Tax Act defining residual vale as 10% of
the acquisition value. However, the depreciation of buildings (limited toincidental facilities) has been calculated by a straight-line depreciation
method that sets its residual value at ¥1 as the memorandum value.
(2) Amortization of intangible fixed assets
Amortization of the trademark right has been calculated by a straight-line
depreciation method that fixes its residual value at ¥0 in accordance withthe estimated useful life stipulated in the Corporate Tax Act.
Amortization of computer software with a four year availability period being
used in-house has been calculated by a straight-line depreciation methodthat sets its residual value at ¥0 by applying the relative availability period tothe estimated useful life.
2. Calculation basis of the reserves for retirement allowances andestimates
To prepare for retirement allowance payments for board members andemployees, a reserve is provided based on 100% of the amount of
retirement allowances required by the rules of payment of retirement
allowances for board members and by those that apply to employees,
respectively.
The calculation method has been changed with regard to estimated increase
in retirement allowances with no reserves set aside, which is reported in thestatement of administrative services costs. It is computed by deducting “theretirement allowance estimate at the end of the previous fiscal year” and“retirement allowance estimate at the end of the previous fiscal year for those
who resigned” from the retirement allowance estimate for all the employees
at the end of the current fiscal year.
3. Calculation method of reserves for outstanding commitments,
outstanding claims reserves, receivables subrogated by paying claims
and allowance for uncollectible receivables
Reserves for outstanding commitments, outstanding claims reserves,receivables subrogated by paying claims and the allowance for uncollectible
receivables have been dealt with by calculating the respective amount inaccordance with the following ordinance: “Concerning the calculation
methods ordained by the Ministry of Economy, Trade and Industry, pursuant
to the articles of the ministerial ordinance with regard to the finance andaccounting of the Incorporated Administrative Agency Nippon Export andInvestment Insurance” (2001・03・27 Trade No. 2).
4. Calculation basis of reserves for bonus payments and estimates
To prepare for the payment of bonuses for board members and employees,a reserve is provided, based on the amount remaining in the current fiscal
year according to the rules of remuneration of board members andemployees, respectively.
5. Appreciation basis and method for securities(1) Appreciation of bonds that are owned for the purpose of being held until
maturity has been carried out by adopting an amortized cost method(straight-line method).
(2) Appreciation of the remaining bonds that do not have a market price has
been carried out by adopting a moving average cost method.
6. Appreciation method of money claims and debts in foreign currencies
Money claims and debts in foreign currencies have been translated into
Japanese yen at the exchange rates prevailing at the end of the fiscal year.
7. Calculation method for opportunity costs in the statement ofadministrative services costs(1) Calculation method for opportunity costs of using national property freeof charge
Opportunity costs arising from using national property free of charge for thefacilities of NEXI, such as offices, have been calculated by referring to land
rent and building rent in the surrounding area: Computer room on thesecond floor of the annex to the main building of the Ministry of Economy,

31

Ⅶ

Trade and Industry.
(2) Interest rate for the calculation of opportunity costs relating toinvestment by the government
The yield of 10-year government bonds (1.275%) has been applied.

Receivables subrogatedby paying claims

Total assets of receivables subrogated by NEXI’s paying claims and estimated amount ofpotential subrogated receivables with regard to the outstanding claims reserves

Accrued premium

Accrued insurance premium due from policyholders arising from insurance contracts concluded

8. Accounting and depreciation methods applied to lease transactions
Finance lease transactions have been dealt with in accordance with theaccounting procedures for typical sales transactions. Depreciation has been
dealt with by a straight-line method, which sets its residual value at ¥0 by
applying the relative contract period as its estimated useful life.

Reinsurance credit

Receivables arising from reinsurance provided by the government○ Accrued premium on reinsurance to be refunded by the government○ Accrued reinsurance claims to be paid by the government

Outstanding claims reserves

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

Receivables for outstanding
commitments

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

Amount due to the reinsurer

Amount to be paid by NEXI to the government under reinsurance contracts

Prepaid insurance premium

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

Capital surplus

Appraisal difference of in-kind contribution of receivables acquired by government subrogation isprocessed based on Article 2 of the supplementary provision of the ministerial ordinance withregard to the finance and accounting of the Incorporated Administrative Agency Nippon Export
and Investment Insurance (Ordinance of Finance and Accounting).
○ Appraisal difference of receivables subrogated by paying claimsWith regard to the fiscal years ending March 2003, 2004 and 2005, the appraisal difference ofreceivables acquired by subrogation and contributed in-kind by the government (except for
accrued income) was included in the capital surplus, in accordance with the ordinanceconcerning a partial revision of the Ordinance of Finance and Accounting (Article 49 ofOrdinance of Ministry of Economy, Trade and Industry, March 31, 2003).
○ Appraisal value associated with capitalization
The Ordinance of Finance and Accounting was partially revised by ordinance No. 100 of
October 28, 2005. Since the fiscal year ending March 2006 (FY2005), those receivables
acquired by subrogation and contributed in-kind by the government that were capitalized andappraised for the first time have been included in the capital surplus.

Net premium written

Amount calculated by deducting reinsurance premium paid from premium written.
Premium written is the total amount of premium of original insurance written and premium received
for reinsurance.

Net claims paid

Amount calculated by deducting reinsurance claims recovered from insurance claims paid.
Insurance claims paid are the total amount of original insurance claims paid and reinsurance claims paid.

Estimated amount of
insurance claims recovery

The total of the following amounts:○ Capitalized amount of receivables subrogated by paying claims○ Recovery of receivables subrogated by paying claims that are not capitalized○ Difference of value between the current fiscal year end and the previous fiscal year end concerning theestimated amount of potential subrogated receivables capitalized in association with the outstanding
claims reserves

Provision for outstanding
claims reserves

Provision for outstanding commitments reserves for the current fiscal year

Provision for outstanding
commitments reserves

Provision for outstanding commitments reserves for the current fiscal year

Extraordinary profit

Interest income relating to assets invested by the government (receivables subrogated by paying claims)

Extraordinary loss

Provision for uncollectible receivables and foreign exchange loss relating to assets investedby the government (receivables subrogated by paying claims)

9. Accounting procedure for consumption tax
Consumption tax accounting is based on the tax included method. For fiscal
year 2007, NEXI has been qualified as a tax-exempt enterprise under theConsumption Tax Act and other related laws and regulations.
10. Changes to the accounting principles(1) Reporting method of receivables subrogated by paying claims
In the past fiscal years, when international creditor meetings such as theParis Club agreed to provide debt relief with regard to the receivables
obtained by NEXI through subrogation as a result of a political event, suchreceivables were reported as receivables subrogated by paying political risk
claims, until the debt relief was actually implemented. Since the current fiscal
year, however, such receivables have been excluded from the receivables
subrogated by paying claims in accordance with a partial revision of Article 3
and Article 4 of the ordinance concerning calculation methods ordained by
the Minister of Economy, Trade and Industry, pursuant to the articles of theministerial ordinance with regard to the finance and accounting of theIncorporated Administrative Agency Nippon Export and Investment
Insurance (2001･03･27 Trade No. 2). As a result, both receivables
subrogated by paying claims and allowance for uncollectible receivables
have decreased by ¥118,992 million compared with the previous method.
Consequently, allowance for uncollectible receivables has been reported
based on market value regarding the receivables subrogated by paying
claims after the deduction of debt relief amount. As a result, extraordinary
loss and loss for the current year have increased by ¥87,251 million,
respectively, compared with the previous method.
(2) Estimated bonus payment with no reserves set aside
Estimated bonus payment with no reserves set aside, which had not beenrequired to be reported in the statement of administrative services costs inthe past fiscal years, has been reported in accordance with the revised
accounting standards for incorporated administrative agencies. No impact
on administrative services costs is associated with this change.
(3) Estimated increase in retirement allowances with no reserves set aside
In past fiscal years, the estimated increase in retirement allowances with noreserves set aside had been reported in the statement of administrative
services costs in accordance with the following calculation method: It is
computed by deducting “the retirement allowance estimate at the end of theprevious fiscal year” and “retirement payment cost recorded as an operating
expense” from the retirement allowance estimate for all the employees at theend of the current fiscal year. Since the current fiscal year, however, thecalculation method has changed in accordance with the revised accounting
standards for incorporated administrative agencies. It is computed bydeducting “the retirement allowance estimate at the end of the previous
fiscal year” and “retirement allowance estimate at the end of the previous
fiscal year for those who resigned” from the retirement allowance estimate
for all the employees at the end of the current fiscal year. Little impact on
administrative services costs is associated with this change.

(4) Total net worth in Balance Sheet

In the past fiscal years, Assets, Liabilities, and Funds and surplus had
been used in the balance sheet. Since the current fiscal year, however,
Assets, Liabilities and Net worth have been used in accordance with therevised accounting standards for incorporated administrative agencies.

II. Important Debt Assumption Undertaken
Not applicable

III. Important Subsequent Events
Not applicable

V. Other accounting information necessary to understand the current situation of NEXI
(1) Conversion into a stock company wholly owned by the government
The “Consolidation and Rationalization Plan for Incorporated Administrative Agencies,” approved by the Cabinet on December 24, 2007, stipulates thatin principle NEXI should convert to a stock company wholly owned by the government by the end of fiscal year 2010.
(2) Presentation of accrued income (accrued interest)
Accrued income from receivables subrogated by paying political risk claims of the past years includes amounts paid partially through the implementationof debt payment schedule. The accrued income in the current year has been reduced by ¥ 81,525 million (accrued income and allowance foruncollectible receivables) since the entire recovery of the accrued income (accrued interest) is not likely.

32

Ⅷ

Second Medium-Term
Objectives
Annual Report FY2007

Second Medium-Term Objectives

Nippon Export and Investment Insurance（NEXI）has set the medium
term-objectives for the second term of FY2005 to FY2008 and isenforcing various measures and policies based on these objectives.
A summary of these objectives is outlined below.

1

2

Efficiency of business operations
Promoting efficiency of business operations
Our staff will be trained to be thoroughly cost-conscious by giving full consideration to the cost-effectiveness ofthe disbursement of expenses, in order to improve the efficiency of our business operations.
ⅰ．We will at all times closely monitor our organizational structure and personnel distribution so that they canappropriately deal with their workload. Further we will do our best to carry out necessary revisions as wellas increasing cost-effectiveness.
Our goal for FY2008 is to reduce the workforce by at least 3% compared with FY2005, and for thisⅱ．
purpose will take the necessary measures.We will also make necessary revisions in our board members'
and employees' salaries.
We will promote the efficiency of business operations through consignment of part of our office work andⅲ．
business operations to private financial institutions, etc.

Improving the quality of NEXI's services and other operations

Improvement of products

Efficient development and smooth operation of the next generation
information system

From the perspective of securing the international competitiveness of Japanese companies, we will take thecustomers' demands and requirements for trade and industry policies into consideration and, in order to provide
high-quality services equal to those in other foreign countries, we will improve and develop our products througha complete revision of the comprehensive insurance with the exporters' associations scheme and of theinsurance products that we currently offer.

Improvement of services
Adopting the perspective of the customers at all times, we will make efforts to improve and enhance our services
by lightening the burden on the customer and promoting prompt decision-making/business proceedings inaddition to fully enforcing the observance of compliance and building on the relationship of trust that we havewith our customers. Further, the changes will enable us to perceive customers' needs with greater accuracy andcreate a system where it is possible to offer services that are more convenient for our customers.

Streamlining the system to perceive and reflect customers' needs
and enhance risk analysis/assessment

3

Smooth entry of private insurers into the market
As for our efforts toward the improvement of our products, the introduction of choice of coverage system in therevision of the comprehensive insurance with the exporters' association extends our customers' choice of cover
to private insurance companies, preparing a suitable environment that facilitates the smooth entry of private
insurers.

Improvement in composition of finances
Reinforcement of financial grounds

Reinforcement of credit management/recovery

Emphasizing strategic priority policy Issues
In light of our role as the public institution responsible for developing Japan's overseas transactions and taking
heed of requirements regarding Japan's trade policies, industrial policies, natural resources and energy policies,
etc. we will give priority to accomplishing these policy issues. In order to do so, we will qualitatively andquantitatively expand the insured risks regarding these areas.
At the same time we will take the initiative in addressing issues in great demand by our customers, including
consideration for the environment and social issues and will make every effort to fulfill our social responsibilities
as a public institution.

As for the development of our next generation information system, we will take all possible measures to ensurethat effective development will be continued to maximize the effectiveness of investment, while appropriately
managing the development schedule.
We will improve the services to our customers and realize efficient and prompt business operations (including, inaddition to development and sale of new products, reinsurance by the government and smooth response toasset management) through a smooth transition from the current information system, the promotion of an
efficient and prompt system maintenance/additional alteration after the new system is put in operation.

In order to continuously and stably offer our customers an "assured peace of mind," we will improve theefficiency of business operations and hold down expenditure based on appropriate risk management, as well as
enhance our finance grounds through the appropriate management of debts brought about by insured risks andstrengthening of the recovery system.

We will increase the publicity activities of existing insurance products and address our customers' needs withgreater accuracy, making use of customer feedback on our insurance products as well as streamlining thesystem to improve risk analysis/assessment methods.
In order to strengthen the assessment of underwriting, information-gathering capacity, and recovery functions,
we will increase the efficiency of the organic linkage system with domestic and international institutions, including
the Japanese government, and also give further multifaceted and effective support to overseas transactions by
Japanese companies.

33

Ⅷ

4

ⅰ．We will strengthen our recovery capacity through the appropriate management of credit data and close
coordination with relevant organizations.
We will feed back the know-how accumulated through assessment/recovery operations of specificⅱ．
transactions and enhance our risk management.
As for debts caused by insured risks, we will appropriately control them and improve their assessmentⅲ．
and analyzing methods as well as execute precise accounting.

Fostering of personnel with high degree of specialist
knowledge (personnel administration)
We will further elevate specialization of our staff through an enriched in-service training system, implementation ofan efficient personnel system that takes into account the development of specialist knowledge, etc.
We will also properly appoint personnel to match the quantity and quality of our business operations byimproving our present business processing.

34

Ⅸ

Profile of NEXI

Annual Report FY2007

Profile of NEXI
Name
Date of
Establishment
Acts
PurposeCompetent Minister
Capital

Number of Full-time
Employees

From the left : Fumihiko Kato（Vice Chairman）, Hidehiro Konno（Chairman and CEO）,
and Naoki Obayashi（Vice Chairman）

Chairman and CEO Hidehiro Konno
Vice Chairman Naoki Obayashi
Vice Chairman Fumihiko Kato

Incorporated Administrative Agency, Nippon Export and Investment Insurance（"NEXI"）
April 1st, 2001
Act on General Rules for Incorporated Administrative Agency
Trade and Investment Insurance Act
To efficiently and effectively conduct insurance business of covering risks whicharise in foreign transactions and which are not covered by commercial insurance.

The Minister of Economy, Trade and Industry¥104.4 billion（Fully contributed by the Japanese Government）（Unchanged from the previous year）
157（As of March 31, 2008）

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

Brief History

July 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(

Members of the Board and the Audit Board
Offices

Corporate Auditor（Full Time） Shigeki Nishikawa
Corporate Auditor（Part Time） Takashi Imai（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 ofInternational Trade and Industry）until the end of March 2001.

Head office

Takashi Imai
（Corporate Auditor）

Main Insurance
Products

URL

35

)

Chiyoda First Building, East Wing 3F, 3-8-1, Nishikanda,
Chiyoda-ku, Tokyo 101-8359
Tel. 81-（0）3-3512-7650
Fax.81-（0）3-3512-7660

Domestic Branch 3-1-22, Kitahama, Chuo-ku, Osaka City, Osaka 541-0041
Tel. 81-（0）6-6233-4017
Fax.81-（0）6-6233-4001
Overseas Offices

Shigeki Nishikawa（Corporate Auditor）

Ⅸ

NEXI Paris, NEXI New York, and NEXI Singapore（See page 42.）

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 Import Insurance
Investment and Loan Insurance for Natural Resources and Energy

http://www.nexi.go.jp

36

Ⅹ

NEXI Customer
Service Charter

Annual Report FY2007

NEXI Customer Service Charter

NEXI Spirit(1) Our mission is to assist customers to conduct
international business with a sense of security by reducing
incidental business risks.
To this end, we take time to grasp the customer's
viewpoint, so that we can meet our customer's needs
precisely and provide efficient and high-quality services,
thereby enhancing customer satisfaction and establishingmutual trust.
(2) By implementing our customer-focused policy, we willcontinue to:
1. Improve the quality of services,
2. Broaden the range of risk coverage,
3. Promote the efficiency of operations, and
4. Increase the transparency of management.

NEXI Pledges to the Customer
We are committed to:（1）Providing insurance products that makecustomers feel secure and protected in overseas
transactions（2）Providing advice to customers from thepreliminary stage of planning（3）Responding promptly to inquiries and theinterests of customers（4）Meeting customers' demands and businessneeds（5）Promptly completing the assessment of
insurance claims and making insurance claim
payment（6）Promptly allocating the recovery(1) Providing insurance products that make customers feelsecure and protected in overseas transactions
1) If you suspect that your international transactions,
including exports, foreign investment and overseas
lending may incur any risk, please visit our website(http://www.nexi.go.jp) and find the insurance productsection, or contact the following offices.
Customer Relations Office (Head Office):
Phone: 81-(0)3-3512-7712
Customer Relations Office (NEXI, Osaka):
Phone: 81-(0)6-6233-4018
2) To provide customers with further information on our
insurance products that are beneficial to international
business, we are always pleased to dispatch our staff toyour office at your request. Please feel free to contact us.
(2) Providing advice to customers from the preliminary stageof planningIf you plan to initiate international transactions, such asexports and overseas investment, there is a NEXI service
available for you.

37

Ⅹ

We will be pleased to consult with you at an early stage of
project formation and propose the most appropriate
insurance product to minimize any risk involved.

※For inquiries, please see the NEXI directory as below, inorder to find out where to contact us.
Customer Relations Office (Head Office):
Phone: 81-(0)3-3512-7712
Fax: 81-(0)3-3512-7687
E-mail: okyakusama@nexi.go.jp
Customer Relations Office (NEXI, Osaka):
Phone: 81-(0)6-6233-4018
Fax: 81-(0)6-6233-4001(3) Responding promptly to inquiries and the interests ofcustomers
1) If you have any questions about insurance products,
please call or e-mail the Customer Relations Office or any
relevant group. We will respond quickly.
2) To estimate an insurance premium, please use thepremium calculation simulator on our website.
If you give us information on your planned transaction, thegroup in charge will estimate a premium on the same dayof the inquiry, in principle, or on the following business day
at the latest. (For medium or long-term non-L/Gtransactions, however, we will answer within five businessdays.)
If the group in charge finds it difficult to answer yourinquiry within these time limits, the group will promptly
notify you to that effect and give the reason for the delay
and the expected date of answer.

1) As soon as we receive an insurance claim from acustomer, we will assess the details in light of theinsurance policy provisions to determine the amount of
the claim to be paid. We will then make a payment withina stipulated time. This is generally within two months ofreceipt of the claim, however, in a situation where moretime is required for a survey, this rule does not apply. Foran application for insurance claims, customers arerequested to steadily execute the duty of notification andthe duty of loss prevention and reduction stipulated insuch documents as insurance policy provisions. In
addition, customers are also requested to submit allnecessary 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 or in other documents in light of
insurance policy provisions or other regulations, we will
give you notification no later than three business days
after receiving the documents.
3) In order to pay claims within the period stipulated in theinsurance policy provisions, and other regulations, weappreciate your understanding and cooperation, including
the early submission of documents necessary for theassessment.
(6) Promptly allocating the recovery
1) When money is recovered from a debt for which wehave been entrusted with the exercise of recovery rights,
we will promptly distribute the recovered money inaccordance with insurance policy provisions, etc.

3) Should the group in charge find any inadequacy in theforms submitted, such as the pre-application form and theinsurance application form (other than environment-related
forms), we will notify you within five business days of ourreceipt at the latest.

2) To allocate money recovered according to Paris Clubdebt rescheduling or other programs, in principle, we willcomplete remittance procedures to the relevant customer
accounts by the business day following confirmation of
the receipt of the full amount in a NEXI account.

4) If you have any questions about trade insurance system
for a specific project, please consult the group in chargeor the Customer Relations Office. We will answer within
five business days at the latest.
Should we find it difficult to answer within the statedperiod, you will be promptly notified to that effect and be
given the reason for the delay and the expected date ofanswer.

Information(4) Meeting customers' demands and business needs
1) It would be appreciated if you could give us sufficientlead time when consulting with us as our assessment may
take longer than expected.
2) If it becomes necessary to accelerate procedures forsuch a reason as an export contract proceeding more
rapidly than anticipated, please consult with us. Yourbusiness needs are always important to us and we will doour utmost to meet accelerated deadlines.
If we find it difficult to meet an accelerated deadline, wewill immediately alert you of this and let you know how
long it will take to complete the necessary procedures.
(5) Promptly completing the assessment of insurance claims
and making insurance claim payment

Various kinds of information can be found on our website(http://www.nexi.go.jp) and in our annual report.
(1) Please visit our website for comprehensive information on
trade insurance, which we hope will be helpful.
NEXI website features:
1) Recent developments (including changes in systems
and underwriting policies and business results for the lasthalf-year period)2) Description of our insurance products
3) Rules concerning trade insurance (including insurance
policy provisions for all of our insurance products)
4) Underwriting policies
5) Country categories
6) Simulation of premium calculations
7) Application procedures
8) Procedures to be adopted after occurrence of an
insured event9) Examples of insurance claim payments cases10) Brochures on our insurance products11) Downloadable insurance policy provisions, detailed
rules concerning procedures, various applications forms(2) Our annual report (in Japanese and English) offers theresults of our trade insurance business and our financial
statements.
Other publications are also available, including NEXI
corporate brochures and leaflets on our insurance
products. Please feel free to call the Public Relations
Group or the Customer Relations Office of the Head
Office.
(3) For inquiries regarding our website, annual report or any
other public relations material, please contact the Public
Relations Group of the Head Office.

Your Comments and Complaints
Enhancing customer satisfaction is our constant aim. If you
experience difficulty with any procedure or have a complaint
about our services, do not hesitate to tell us, then the
problem will be rapidly addressed.
(1) If you let us know about any trouble you may be having,
we can do whatever is necessary to solve the problem. In
such a case, for example in insurance-related procedures,
please give us the details of the problem and what you
wish to be done. We will immediately analyze the situation
to discover the source of the problem and suggest asolution.
(2) If you have any complaint about our services or thehandling of a specific project, please inform the Customer
Relations Office.
1) For any complaint about our services, please provide
the details to the Customer Relations Office in writing or
via e-mail. After examining your problem, the Customer
Relations Office will let you know how it will be dealt with.
In a situation where it is difficult for us to take immediate
action, we will let you know the reason for the difficulty
and how we intend to proceed with it.
2) If there is any complaint about the handling of a specificproject, please provide the details to the Customer
Relations Office in writing or via e-mail. After re-examining
the details, the Customer Relations Officer will inform youof the results of our investigation without delay.
If action cannot be taken immediately, the Customer
Relations Officer will inform you of the reason and the
projected schedule for completion.

38

NEXI Customer
Service Charter

Annual Report FY2007

Customer Relations Office(1) We have established a "Customer Relations Office" toprovide more efficient services for our customers inaccordance with our customer-oriented policy.
Customer Relations Office (Head Office):
Phone: 81-(0)3-3512-7712
Fax: 81-(0)3-3512-7687
E-mail: okyakusama@nexi.go.jp
Customer Relations Office (NEXI, Osaka):
Phone: 81-(0)6-6233-4018
Fax: 81-(0)6-6233-4001(2) The Customer Relations Office offers customer support byviewing the situation from the customer's viewpoint. Anyquestion or inquiry is welcome, including questions about
trade finance, the appropriate group to handle a planned
project, and the handling of a specific project. We will takeprompt action in these matters.

About This Customer Service Charter
It is our policy that NEXI staff members act quickly at all
times, and the Charter will be constantly reviewed. Please do
not hesitate to make any comments about this Charter or
NEXI in general.

NEXI Directory■For general inquiries, including questions about theoutline of trade insurance, please contact:
Customer Relations Office (Head Office):
Phone: 81-(0)3-3512-7712
Fax: 81-(0)3-3512-7687
E-mail:okyakusama@nexi.go.jp
Head Office - Underwriting Group No.1
Phone: 81-(0)3-3512-7667
NEXI, Osaka - Customer Relations Office
Phone: 81-(0)6-6233-4018
Fax: 81-(0)6-6233-4001■For inquiries about matters ranging from consultation
on trade insurance underwriting to assessment
associated with specific transactions, (including termsof cover, country categories, international agreements
and insurance application procedures, such as buyer
registration), please contact:
Short-Term Transactions(Repayment Term of Less Than Two Years)
Head Office - Underwriting Group No.2
(Phone: 81-(0)3-3512-7668)
・Consultation, individual assessment and issuance of
informal approval of transactions for Export Credit
Insurance, Export Bond Insurance and Prepayment

39

Import Insurance that do not fulfill the insurance
requirements by country such as for amount limits

Power & Mining Team
(Phone: 81-(0)3-3512-7673)

Head Office - Business Administration Group(Phone: 81-(0)3-3512-7664)
・Consultation and individual assessment of transactions
for all kinds of insurance fulfilling the insurance
requirements by country such as for amount limits
・Consultation and individual assessment of insurance
claims for Export Bill Insurance

Oil & Gas Team
(Phone: 81-(0)3-3512-7672)(Phone: 81-(0)3-3512-7744)

NEXI, Osaka - Customer Relations Office(Phone: 81-(0)6-6233-4018)
・Consultation, individual assessment and issuance of
informal approval of transactions for Export Credit
Insurance (for transactions less than one billion yen)

Infrastructure Team・Infrastructure/Aircraft Finance(Phone: 81-(0)3-3512-7674)
・Manufacturing/Service Business(Phone: 81-(0)3-3512-7601)
Investment and Loan Insurance for Natural
Resources and Energy Team・Oil & Gas(Phone: 81-(0)3-3512-7744)
・Mineral Resources(Phone: 81-(0)3-3512-7673)
・Overseas Investment Insurance(Phone: 81-(0)3-3512-7744)

NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)
・Individual assessment of transactions for Export Credit
Insurance (Specific Insurance, Comprehensive
Insurance with Exporters' Associations, and EnterpriseComprehensive Insurance), fulfilling the insurance
requirements by country, such as for amount limits
・Individual assessment of transactions for Trade
Insurance for Standing Orders from Specific Buyer andExport Credit Insurance for SMEs
・Consultation and individual assessment of insurance
claims for Export Bill Insurance

For inquiries about the following, please contact theappropriate office.

NEXI, Osaka - Underwriting Group(Phone: 81-(0)6-6233-4018)
・Consultation of transactions for Export Credit Insurance(Specific Insurance, Comprehensive Insurance withExporters' Associations, and EnterpriseComprehensive Insurance), fulfilling the insurance
requirements by country, such as for amount limits
・Consultation of transactions for Trade Insurance forStanding Orders from Specific Buyer and Export Credit
Insurance for SMEs

■Registration and alteration procedures on the foreign
buyers list:
Head Office - Underwriting Group No.1
(Phone: 81-(0)3-3512-7667)
NEXI, Osaka - Underwriting Group(Phone: 81-(0)6-6233-4018)

Medium & Long-Term Transactions(Repayment Term of Two Years or More)
Head Office - Underwriting Group No.2
(Phone: 81-(0)3-3512-7668)
・Consultation, individual assessment and issuance of
informal approval of transactions for Export Credit
Insurance, Export Bond Insurance and Prepayment
Import Insurance
・Consultation on underwriting and assessment fortransactions with direct government loans or
government guarantees, or a transaction without
government guarantees for which insurance cover isrequested only for political risks regarding Export
Credit Insurance and Buyer's Credit Insurance
Head Office - Structured and Trade Finance Insurance
Department
・Consultation, individual assessment, and issuance of
informal approval of transactions for Buyer's Credit
Insurance (two years or more) without L/G, Overseas
Untied Loan Insurance, and Overseas Investment
Insurance■Ratings for, and credit management of, non-Japanesetrading companies and banks:
Head Office - Underwriting Group No.1
(Phone: 81-(0)3-3512-7667)
NEXI, Osaka - Underwriting Group(Phone: 81-(0)6-6233-4018)■Applications for alteration:
Head Office - Business Administration Group(Phone: 81-(0)3-3512-7664)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■Various application procedures, including approval ofpledge:Head Office - Business Administration Group(Phone: 81-(0)3-3512-7664)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■Various types of notification, such as notification ofredemption date:
Head Office - Business Administration Group(Phone: 81-(0)3-3512-7664)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■Notice of occurrence of risks, notification of losses
and credit advice:
Head Office - Claims Service & Recovery Group(Phone: 81-(0)3-3512-7663)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■Claims and assessment of insured events:
Head Office - Claims Service & Recovery Group(Phone: 81-(0)3-3512-7663)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■Paris Club rescheduling, allocation of recoveries andso forth:
Head Office - Recovery Services Group(Phone: 81-(0)3-3512-7725)■Confirmation and balance of specific credit ceiling:
Head Office - Business Administration Group(Phone: 81-(0)3-3512-7610)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■For inquiries about assessments of recoverable assets
other than the above and recovery business in general:
Head Office - Asset Planning Group(Phone: 81-(0)3-3512-7658)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■Insurance application forms:
Head Office - Business Administration Group(Phone: 81-(0)3-3512-7664)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■"Guidelines on Environmental and Social
Considerations in Trade Insurance":
Head Office - Environment Group(Phone: 81-(0)3-3512-7685)■Issue of insurance policies:
Head Office - Business Administration Group(Phone: 81-(0)3-3512-7664)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)■Payment or refund of insurance premiums:
Head Office - Business Administration Group(Phone: 81-(0)3-3512-7664)
NEXI, Osaka - Administration Group(Phone: 81-(0)6-6233-4017)

Ⅹ■Disclosure of Information:
Head Office - Public Relations Group(Phone: 81-(0)3-3512-7655)■Public relations, including the NEXI website and annual
report:Head Office - Public Relations Group(Phone: 81-(0)3-3512-7655)

40

Nippon Export and Investment Insurance Organization Chart(from June, 2008)

Chairman and CEO

AuditorVice Chairman
Statistics Committee
・General coordination of statistics
for trade and investment insurance

Compliance Committee

Examiner・Internal auditing and promotion of
in-house complianceCounselor・Environmental and Social Consideration
Guidelines in Trade Insurance

Secretariat

General Management Group

Business Planning Group

Tel. 81-(0)3-3512-7653
・Total management
・Communications with the Ministry of
Economy, Trade and Industry and theinstitutions concerned･Planning to improve the insurance system
・Correspondence to International
standards such as the OECD guidelines

Strategic Planning Group
Tel. 81-(0)3-3512-7654･Planning of medium-and long-term
management strategy

Asset Planning Group
Tel. 81-(0)3-3512-7658
・Planning of overall strategy for claims
assessment, recovery, and recoverable
asset management
・Statistical analysis of date for claims
assessment, recovery, and recoverable
asset management

Claims Service & Recovery
Group

Personnel Group
Tel. 81-(0)3-3512-7656
・Human resource and welfare management
・Documentation management

Tel. 81-(0)3-3512-7663
・Planning of loss prevention
・Assessment of insurance claims
・Recovery of insurance claims paid

Recovery Services Group

Procurement andAdministration Group

Tel. 81-(0)3-3512-7725
・Management of recoverable assets, andplanning and allocation of recovered
claimsTel. 81-(0)3-3512-7738
・Procurement activities
・Procurement and administration ofproperty, supplies, etc.

Accounting Group

Tel. 81-(0)3-3512-7665
・Planning of sales strategies
・Reinsurance with Export Credit Agencies

Customer Relations OfficeTel. 81-(0)3-3512-7712
・Handling customer inquiries andrequests about insurance services

Tel. 81-(0)3-3512-7667
・Sale of Export Credit Insurance,Trade
Insurance for Standing Orders with Specific
Buyer, Export Bill Insurance, Prepayment
Import Insurance, Export Bond Insurance
・Management of special agreements in
Comprehensive Insurance
・Foreign buyers' registration andacceptance/notification of changes to their rating

Underwriting Group No.2
Tel. 81-(0)3-3512-7668
・Underwriting of specific Export Credit
transactions（under 2 years）
・Underwriting of Export Credit transactions
with L/G（over 2 years）

Business AdministrationGroup

Treasury Group
Tel. 81-(0)3-3512-7659
・Receipts and disbursement of deposit andsecurities and record keeping
・Recording of balance of capital

System OfficeTel. 81-(0)3-3512-7715
・Promoting and controlling theinformatization of NEXI

Tel. 81-(0)3-3512-7664
Tel. 81-(0)3-3512-7610(Exclusively for specific credit ceiling)・Underwriting and alteration of standardtransactions（under 2 years）
・Concluding of insurance contracts andalteration of Export Bill Insurance
・Concluding of insurance contracts and otheroffice procedures related to under 2 years
non-standard and over 2 years transactions
・Business matters pertaining to confirmationof specific credit ceiling・Office procedures related to notifications andapplicants before occurrences of losses

a Sta.
Kudanshit
Yasukuni St.

41

Planning and
Coordination TeamPower & Mining TeamOil & Gas Team
Tel. 81-(0)3-3512-7744
Tel. 81-(0)3-3512-7672

Infrastructure Team
Infrastructure/Aircraft FinanceTel. 81-(0)3-3512-7674
Manufacturing/Service BusinessTel. 81-(0)3-3512-7601

Investment and Loan
Insurance for Natural
Resources and Energy TeamOil and Gas
Tel. 81-(0)3-3512-7744
Mineral Resources
Tel. 81-(0)3-3512-7673
Overseas Investment Insurance
Tel. 81-(0)3-3512-7744

Ohara
Bookkeeping School
Villa Fontaine
KUDANSHITA Mita Subway
Sensyu
Line
Univ.
A4
A2
Exit Shinjuku
Sun Light
Exit
Subway Line
Bldg.
Jimbocho Sta.

Administration Group

Tel. 81-(0)3-3512-7683
・Assessment of underwriting andclaim
・Operation of the insurance system
including underwriting conditions
or policy, premium rates and soonTel. 81-(0)6-6233-4017
・Duties relating to Export Credit
Insurance (under 2 years)
・Duties relating to Export Bill
Insurance

NEXI,Parisc/o JETRO
166,rue de Rivoli,
75001 Paris France
Tel. 33-(0)1-4261-5879
Fax.33-(0)1-4261-5049
Cover area: Europe, Central Asia,
Middle East and Africa

NEXI,New York

Underwriting Group

Tel. 81-(0)3-3512-7685
・Environmental and social reviews
based on the Guidelines on
Environmental and Social
Consideration in Trade Insurance
・Correspondence to the OECD
meeting dealing with the issues onexport credits and theenvironment

c/o JETRO
1221 Avenue of the Americas,
42 Fl, McGraw-Hill Bldg.
New York N.Y.10020 USA
Tel. 1-212-819-7769
Fax.1-212-819-7796
Cover area: North, Central, andSouth America

Tel. 81-(0)6-6233-4018
・Sales promotion
・Registration of oversea buyers
・Management of special
agreements in EnterpriseComprehensive insurance

NEXI,Singapore

Country Risk Analysis Group
Tel. 81-(0)3-3512-7686
・Investigation, analysis andevaluation of country risk
・Correspondence to the OECD
Export Credit Group Meeting
concerning country risk
evaluation

Customer Relations OfficeTel. 81-(0)6-6233-4018
・Handling customer inquiries andrequests about insurance services
・Duties relating to PR at the Osaka
Branch Office・Underwriting, preliminary approval,
and conclusion of insurance
contracts regarding non-standard
less than 2 years and less than 1billion yen transactions

Credit Administration Group
Tel. 81-(0)3-3512-7684
・Planning management of credit
control to overseas buyer andbank・Rating and granting credit limit ofoverseas buyer and bank・Analysis of creditworthiness ofoverseas buyer and bank

48th

49th

50th

51st

c/o JETRO
16 Raffles Quay #38-05,
Hong Leong Bldg.
Singapore 048581
Tel. 65-6429-9582
Fax.65-6220-7242
Cover area: Asia and Oceania

52nd

50th St. (1, 9)

Comedie
Francaise
Metro No.1
Palais Royal
Musee du Louvre
entrance

M1
Rue St-Honore

Hotel duLouvreRue de Rivoli

Place duPalais Royal

49th St. (N, R)

M
R
T

Broadway
7th Ave.

McGraw-Hill Bldg.
NEXI Paris

Cecil St.

Ave. of the Americas (6th Ave.)ay

Collyer Qu

AIA Tower

Rockefeller Center (B, D, F, Q)
Hong Leong Bldg.

Rockefeller Center

HanzomonSubwayLine

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

・overseas matters

M7

Chiyoda First Building
East Wing

Jonan Credit
Association

Credit Analysis andControl Group

Environment Group

Tel. 81-(0)3-3512-7673

Rue Moliere
Avenue de I’ Operat.

No.7 Exit
Kitanomaru Square

No.5
Exit

JR Chuo Line

an s

Tozai
SubwayLine

・Underwriting Overseas Investment
Insurance, Overseas Untied Loan
Insurance and Export Credit
Insurance(over 2 years
transaction without L/G)

Overseas Offices

Tel. 81(0)6-6233-4017
Fax.81(0)6-6233-4001
・The front branch office of
the Export Credit Insurance
in the western part of JapanRue RichelieusHaku

Tel. 81-(0)3-3512-7715
・Development and maintenance forthe insurance information system(software)・Administration of statistics relating
to insurance

.
t Ave
i Wes
bash
Suido

System Development & StatisticsGroup

JR Suidobashi Sta.
West East
Exit
Exit

litan
opo
Metrressway
Exp
No.5

Tel. 81-(0)3-3512-7677
・Planning of the insurance
information system
・Procurement and maintenance forthe insurance information system(hardware) and the local area
network
e.
Av
jiro
Me

Tel. 81-(0)3-3512-7655
・Correspondence to press andduties relating to PR such as web
site management and issuance of
pamphlets
・Sharing information andinteraction with other Export
Credit Agencies
・Administration of the overseas
representative offices

System Administration Group

Tel. 81-(0)3-3512-7680
Fax.81-(0)3-3512-7689

Tel. 81-(0)3-3512-7675

Underwriting Group No.1

Tel. 81-(0)3-3512-7657
・Accounting service
・Fund management

Public Relations Group

Tel. 81-(0)3-3512-7670
Fax.81-(0)3-3512-7688

NEXI,OsakaayTel. 81-(0)3-3512-7661
Fax.81-(0)3-3512-7679,7687

Financial Risk Management
Department

Qu

Tel. 81-(0)3-3512-7658
Fax.81-(0)3-3512-7676

Tel. 81-(0)3-3512-7651
Fax.81-(0)3-3512-7660,7669

Structured and Trade FinanceInsurance Department

Underwriting Department

les

Asset Management
Department

Ra
ff

Planning and Administration
Department

Musee du Louvre

NEXI, Paris

NEXI, New YorkNEXI, Singapore

42