¿NEXI Mission［2］

À

Main Data for Fiscal 2001

［3］

Á

Message from the Chairman and CEO［5］ÂMain Projects Underwritten
in Fiscal 2001

［9］

Outlook of Trade Insurance
Operation

［13］

Ã
Ä

Å

Financial Statements of NEXI
1- Regarding the Financial Statements for FY2001［22］

2- Financial Statements［23］

Outline of NEXI

［29］

1

NEXI SPIRITSPEEDPROFESSIONALI NTEGRATIONREFORMATION
IT ORIENTED
TRANSPARENCY

NEXIMissionManagement Principle
Nippon Export and Investment Insurance(NEXI) commits to making a difference andcontribution to the economy and society ofJapan by underwriting risks that arise in international transactions and providing risk coverage to policyholders which cannot be adequately protected by commercial insurance.

Management Policy
1. NEXI as an independent administrative
institution servicing the public strives tocontribute to the stability of people's lives
and to the sound growth of the economy
through its operations.
2. NEXI adheres to giving first priority to theinterests of customers, responding promptly and precisely to customer's individual
needs, providing superior quality customer
services, and achieving the highest level ofoperating efficiency and effectiveness.
3. NEXI fully utilizes the talents of its entire
management and human resources withthe objective to undertake more risk, develop new products and be creative in risk
underwriting schemes that is flexible toaccommodate the anticipating changes in
the market. And yet strives to increase
profitability through prudent risk control
and criteria ensuring long-term growth andprosperity.
4. NEXI fosters the growth of knowledge,
employee development through training,and makes the best use of the staff's
diverse professional background, aiming tocreate an ideal workplace that corresponds
to the changes in society.

2

Main Data for
Fiscal 2001
1. Amount underwritten●Amount underwritten●Breakdown of underwritten amount in(in billions of yen)fiscal 2001 by region

The underwritten amountin fiscal 2001 was ¥10,136.6
billion, a decrease of 6.2%

Africa 3%
10,812
10,137

South America 3%

Oceania 3%
Asia 39%from the preceding year.

Europe 15%
FY2000

3

North America andCentral America 37%

FY2001

2. Premium income*1●Premium income(in billions of yen)

The premium income in fiscal 2001 totaled ¥42.1 billion*2 and showed
an increase of 27.9% over the preceding year. The increase was due to42.1

smooth progress in underwriting insurance for large projects.
*1 Premium income here is not exclusive of the return premium amount.
*2 ¥42.1 billion is total amount of submitted bills in FY2001.

32.9

FY2000FY2001

3. Insurance claims paid

●Insurance claims paid

●Breakdown of insurance claims paid in(in billions of yen)fiscal 2001 by region

Insurance claims paid infiscal 2001 totaled ¥49.9 billion and showed an increaseof 53.9% over the preced-60

Africa 2%
Political insured risks

Commercial insured risks

50

Others 1%

North America andCentral America 2%

40

ing year due to transactions
whereby a large amount of30

insurance claims were paid.

20

29.6
13.0

The number of commercial
insured events increased by
127.3% over the preceding
year, and the number of

10

19.4

20.3

FY2000FY20010

Europe 3%

Asia 92%

political insured events
increased by 4.7% over thesame.

4. Recoveries●Recoveries●Breakdown of recoveries in fiscal 2001 by(in billions of yen)region4

Recoveries in fiscal 2001
totaled ¥74.5 billion, and85.3
Africa 8%

showed a decrease of

North America andCentral America 2%
Europe 38%

74.5
Asia 14%

12.6% from the precedingyear.

FY20005. Outstanding
commitment
The outstanding commit-

FY2001●Outstanding commitment●Breakdown of the outstanding commit-(in billions of yen)
7,523South America 38%

ment at the end of FY2001 by region
Africa 5%

7,549

Oceania 1%

South America 9%

ment at the end of fiscal
2001 totaled ¥7,549.1 bil-

Europe 9%lion and showed an increaseof 0.3% over the end of thepreceding year.

Asia 57%
FY2000FY2001

North America andCentral America 19%

Message from the
Chairman and CEO

To Our Valued Customers:
In the past 50 years, Trade and Investment Insurance
has contributed immensely to the growth of Japanese
exports and to expansion of Japanese overseas operations. In April 2001, Nippon Export and Investment
Insurance (NEXI), an Independent Administrative
Institution, was launched as a successor to a government body to manage the trade and investment insurance business, which marked a new beginning.
In fiscal 2001, various events and risks occurred
unexpectedly, such as the terrorist attacks in the UnitedStates. As a result, it further hindered America's economic recovery. The Chinese government retaliatedwith high import tariff. Argentina was hit by an eco-5

nomic crisis. In Japan the Japanese financial institutions
are burdened with bad debts, and demand for goods
and services in the private sector remains stagnant. The
prospects of the Japanese economy are more uncertain
than ever; therefore, the importance and the need forcompanies to manage risks is increasing day by day.
Considering the 21st century as the age of risk control, NEXI announced four pledges and committed to
implement institutional reforms to offer products tomeet customers' needs and provide them with servicesof the highest quality to customers.
The financial highlights for fiscal 2001 are as follows:
total amount underwritten was ¥10,136.6 billion, premiums collected totaled ¥42.1 billion, claims paid were¥49.9 billion, and recovery amount was ¥74.5 billion.
A loss of ¥1.7 billion was reported, because of special
circumstances in its inception year, which no withdrawal of the liability reserve from the preceding year shouldarise. However after extraordinary gains and losses, a
net profit of ¥18.4 billion was reported.
NEXI had a successful inception year , with your partnership and cooperation. I am optimistic that NEXI willcontinue to advance and prosper. Thank you very much.
Next, we want to look back on the past year andintroduce the highlights of our accomplishments.

Hisamitsu Arai
Chairman and CEO

Establishment of an Independent Administrative Institution and our four pledges

Institutional reforms
NEXI has carried out various institutional reforms. In

When NEXI was inaugurated in April 2001 as an

April 2001, we ceased to limit the percentage of indem-

Independent Administrative Institution, the manage-

nity for high-risk countries, in order to accept the per-ment decided on a policy to provide customers priority

centage of indemnity for proportional compensation, inand highest services. Therefore, we made "fourprinciple, up to 97.5% for political risks and 90% for

pledges" to our customers: improving services, expand-commercial risks to all the countries. Moreover, a new

ing the risks undertaken, increasing efficiency level, andrecovery system was introduced. We decided to allo-

making management transparent.

cate recovery for the interest accrued period from theFirst -- improving services

repayment due date to the payment date of insurance

We reduced the number of documents submitted byclaims, until the said interest amount due is fully paid tocustomers for trade and investment insurance, simpli-

the insurer.

fied the processing procedures for underwriting, assess-During the term under review, we also made otherment and recovery. To improve communication andinstitutional reforms. For the purpose of improving thebetter serve customers, informal meetings to exchange

quality of risks undertaken, we improved the insurance

opinions and ideas were held and a questionnaire sur-premiums for commercial risks of non-government L/G

vey was conducted. In the autumn of 2001, NEXI andtransactions. We simplified the assessment procedure

Waseda University jointly held a risk seminar on theto shorten the time needed for assessment. In Octoberchanged international situation after the multiple ter-

2001, we abolished the ceiling on the value of exports

rorist attacks in the United States. We believe we canper item for 21 countries to ease our underwriting poli-

respond to our customers' concerns in a timely manner.

cy. On April 1, 2002, we increased the percentage ofSecond -- expanding the risks undertaken

indemnity for government-guaranteed projects in the

Regarding the expansion of risks undertaken, we

Export Credit Insurance (for medium- to long-term pro-increased the percentage of indemnity and relaxed ourjects) and the percentage of indemnity for political risks

underwriting policy. NEXI promptly declared that thein projects with a foreign government to 100%, andlosses due to China's retaliation on an import tariff and

we also raised the percentage of indemnity for thethe September 11th terrorist attacks which occurred in

Export Bill Insurance. In addition, in view of the lessons

the United States would be covered.

learned from the multiple terrorist attacks in the United

Third -- increasing efficiency level

States, we introduced new covenants to indemnify

Increasing efficiency requires unflagging efforts. But,

Overseas Investment Insurance for losses due to terror-

at the same time NEXI had to streamline the organiza-

ism, natural disasters, etc.

tional structure, and reformed the personnel stationing
in a flexible manner and introduced a target management system which applies to every staff.
Fourth -- making management transparent
We pledged to make our management transparent

Preparation of "Guidelines on
Environmental and Social Considerationsin Trade Insurance "and provide our financial information on our home-

NEXI has also actively addressed environmental

page. To promote public relations, an explanatory

issues. According to "Guidelines on Environmental

meeting at the Japan Foreign Trade Council, Inc. wasConsiderations in Trade Insurance," NEXI confirms

held.

whether the project sponsors have implemented appropriate environmental and social considerations in the6Category A Category B Category C

projects subject to NEXI's insurance services.

Total

In order to confirm environmental and social consid-

FY2000

2

60

77

139

erations in the projects effectively and efficiently, NEXI

FY2001

6

37

76

119

classifies projects in accordance with significance ofsiderations for projects by the method applicable to theenvironmental considerations on the basis of (environ-category concerned. The breakdown of the projects

mental) information in screening forms submitted byscreened in fiscal 2000 and fiscal 2001 by category is asapplicants, and confirms environmental and social con-above:●Main developments during FY2001 and FY2002
Overseas and domestic occurrences

Steps taken by NEXI, events held, etc.

2001

58 Independent Administrative Institutions established.

On April 1, NEXI established; makes "four pledges" to customers, revises systems.:(NEXI expands the percentage of

April

Paris Club members agree on rescheduling for Ethiopia.

indemnity, reexamines the recovery system, and shortens the waiting period for commercial insured risks.)

Koizumi Cabinet sworn in.

On April 16, NEXI holds reception to celebrate inauguration.

May

Japan Federation of Economic Organizations (Keidanren),etc. send mission to Russia.
Paris Club members agree on rescheduling for Guinea.

June

Chinese government activates retaliatory tariff.

On June 19, Government of Japan and Indonesia reach bilateral agreement on second rescheduling for Indonesia.
On June 22, NEXI explains that losses due to retaliatory tariff will be covered by trade and investment insurance.

7

NEXI takes prompt steps for payment, including abolition of coverage assessment committee.
On June 26, underwriting policy for Russia eased.
July

Paris Club members agree on rescheduling for Bolivia.
On September 7, Government of Japan and Kenya reach bilateral agreement on the second rescheduling for Kenya.

September
Terrorist attacks in the United States.

On September 14, a decision to apply Export Credit Insurance to accidents caused by the terrorist attacks announced.
On September 17-21, Berne Union holds a general meeting in Biarritz.

OctoberNovember

On October 1, systems revised (underwriting policy eased, and procedure simplified).
COP 7

On October 5, Government of Japan and Pakistan reach bilateral agreement on the fourth rescheduling for Pakistan.

The majority of OECD member countries decide to voluntarily

On November 19, NEXI holds a seminar in Fukuoka to explain the systems of trade and investment insurance andimplement "Common Approaches on Environment andoverseas investment and loans.

Officially Supported Export Credits".

On November 26, NEXI holds a crisis management seminar in Tokyo with Waseda University titled "How to counter

Paris Club members agree on rescheduling for Yugoslavia

international terrorism."and Mozambique.
3 nonlife insurance companies suffer losses due toreinsurance underwriting problems.
December

Argentina hit by an economic crisis.
Japanese government announces plans to streamline special
public corporations.
Paris Club members agree on rescheduling for Pakistan.

2002

Japan and Singapore conclude an economic tie-up

On January 7, NEXI changes underwriting policy for Argentina.

January

agreement.

From January to March , NEXI holds the meetings 3 times to explain and discuss a partial revision in

Paris Club members agree on rescheduling for Tanzania.

"Guidelines on Environmental Considerations in Trade Insurance ."On February 26, Government of Japan and Zambia reach bilateral agreement on the seventh rescheduling for

February

Zambia.
March

U.S. activates safeguard for steel trade against Japan andthe EU.

April

Paris Club members agree on rescheduling for Indonesia.

On April 1, NEXI announces corporate principle and Guidelines on Environmental and Social Considerations in Trade
Insurance.
On April 1, Systems revised (the percentage of indemnity in medium- to long-term general trade insurance raised to100% for political risks, and new covenants introduced for overseas investment insurance).
On April 22-26, Berne Union holds a general meeting in Beijing.
On April 23, Government of Japan and Mozambique reach bilateral agreement on the fifth rescheduling for
Mozambique.

May

Paris Club members agree on rescheduling for Ghana.

June"e-NEXI," a web magazine, inaugurated.

July

On July 5, Minister of Economy, Trade and Industry approves NEXI's financial statements.

Á. Message from the Chairman and CEO

In November 2001, the majority of the OECD mem-

Club, we extended assistance to the Government ofber countries decided at a meeting of the OECD’s

Japan to help it to conclude bilateral agreements with

Working Party on Export Credits and Credit Guarantees

debtor countries. To our delight, the Government of

to voluntarily implement "Common Approaches on

Japan reached bilateral agreements with four countries,

Environment and Officially Supported Export Credits",

for example, Indonesia and Pakistan in fiscal 2001, andwhich sets forth the guidelines to be observed by offi-

as of July in fiscal 2002 with three countries, for exam-cial export credit agencies in confirming environmental

ple, Ecuador.

and social considerations in the projects. In response to

We have confirmed succession to the various agree-

that, NEXI drafted a revised version of its environmental

ments concluded by the EID/MITI with major export

guidelines, made it available to gather public comments

credit agencies of several foreign countries before NEXI

on its homepage from January 30 to February 28,

was established, and we hold bilateral meetings and2002, held three meetings for explanations andexchange information at such meetings.

exchanges of opinions (January 30, February 21 andIn order to make our insurance more accessible andMarch 25) in which everyone could take part, andeasy to use, we will continue to make institutional

enacted new environmental guidelines ("Guidelines onreforms and best serve our customers in exports andEnvironmental and Social Considerations in Tradeinvestments. We hope to earn your continued guidance

Insurance") on April 1, 2002. The new guidelines will

and support.

8

take full effect in October 2003. Before that, however,
we will begin to implement the main part of them,such as the new screening form and categorization,etc., as soon as the preparations are completed.

Hisamitsu Arai
Chairman and CEO

Items pertaining to international relations
NEXI took part in various international meetings.
With regard to OECD conferences we participate inenvironment, premiums and country rating meeting. Asa member of the Berne Union (the International Unionof Credit and Investment Insurers), NEXI is making aninternational contribution, monitoring the trends in theworld. In addition, on the basis of the conditions forrescheduling agreed upon at a meeting of the Paris

with Secretary of Finance,
the Republic of the Philippines

Â. Main Projects Underwritten in
Fiscal 2001
9

We will now introduce
the main projects underwritten
by NEXI in fiscal 2001,
region by region.

Main Projects Underwritten
in Fiscal 2001

Asia
Taiwan: Construction of high-speed railway
This is a project which exports Japan’s Shinkansen system andtechnology to Taiwan. Taipei and Gaoxiong, a distance of about 345
kilometers, will be linked in about 90 minutes (maximum speed: 300
kilometers per hour). This is the first time to export Japan’s
Shinkansen technology to any part of the world. A consortium ofJapanese companies received an order for the Shinkansen system.
The system consists of vehicles, power transformers, a signal andcommunication system, etc., worth about ¥330 billion in total value. NEXI underwrote a short-term Export Credit
Insurance of about ¥270 billion for the project. This is the highest amount as a risk underwritten.
The insurance contract was concluded on April 18, 2001.

Vietnam: Add-on combined cycle conversion of Phu
My 2 Phase I Single Power Station
This is a project to introduce a combined cycle power system,
which harnesses the exhausted heat of a gas turbine, in Phu My 2
Phase I Single Power Station on the outskirts of Ho Chi Minh City,
Vietnam. The purpose is to increase its output by 50%, to 450,000
kilowatts. In conjunction with a French-Swiss company, a Japanesecompany received an order for the conversion that costs about $115
million. NEXI underwrote Export Credit Insurance worth about ¥5 billion for this project.
The insurance contract was concluded on September 21, 2001.

China: Investment in an automobile maker and support for sales promotion activities
A Japanese company invested in China to establish a local subsidiary, whose main purposes are the investment ina local automobile maker, market research and sales promotion. NEXI underwrote this investment of approximately ¥3.6 billion.

The insurance contract was concluded on October 2, 2001.

Philippines: Yen-denominated Philippine government
bonds for private placement
For the yen-denominated 10-year bonds of ¥50 billion in total
value issued by the Government of the Republic of the Philippines on
December 14, 2001, NEXI underwrote Overseas Untied Loan
Insurance to cover up to 97.5% of the principal and interest. The
proceeds of the bond issue will be appropriated for the improvement
and expansion of industrial infrastructure, such as roads, in thePhilippines.

The insurance contract was concluded on December 3, 2001.

10

Russia and Central Asia
Russia: "Blue Stream Project" to lay a natural gas
pipeline for GAZPROM
This is a project undertaken by GAZPROM, the largest gas company in the world, to lay a pipeline of 1,260 kilometers in total lengthfrom Isborny, Russia, to Ankara, Turkey. NEXI underwrote Overseas
Untied Loan Insurance for a consortium of Japanese banks that furnished operating funds totaling about $295 million for the construction of the Russian overland part of the pipeline.
The insurance contract was concluded on April 24, 2001.
(A Japanese company received the order to construct the Black Sea underwater part of the pipeline, and theJapanese Government underwrote Export Credit Insurance for loans of about US$130 million lent by the
consortium of Japanese banks to the importer of Japanese goods, prior to the establishment of NEXI. The
insurance contract was concluded on November 29, 2000.)

Kazakhstan: Export of construction machinery to a gas pipeline management company
NEXI underwrote Export Credit Insurance to support the export of construction machinery for the renewal of a11

pipeline in Kazakhstan. A Japanese and Kazakhstan company signed a supply contract of ¥3 billion on a differed
payment basis.

The insurance contract was concluded on February 5, 2002.

AfricaAlgeria: Gas boosting station project for Sonatrach in Hassi Rmel area
Japanese companies concluded a contract with Sonatrach, a state-owned hydrocarbon company of Algeria toconstruct a gas boosting facility in the Hassi Rmel district, Algeria. NEXI underwrote Export Credit Insurance for aloan of about ¥12.4 billion extended by a consortium of Japanese banks to the Algerian company to finance thepurchase of the facility.

The insurance contract was concluded on September 5, 2001.

Â. Main Projects Underwritten in Fiscal 2001

Mozambique: Export of sub-station construction and rectifiers for an aluminum smelter
NEXI underwrote short-term Export Credit Insurance for the export of sub-station construction and rectifiers by aJapanese company for the use at an electrolytic plant in a Mozambique aluminum smelter.
The insurance contract was concluded on March 18, 2002.

Latin America
Mexico: Set a ¥6 billion credit line for Mexico’s CFE (Federal Commission of Electricity)
NEXI decided to undertake a ¥6 billion global buyer’s credit line to be set in the coming three years for Mexico’s
CFE (Federal Commission of Electricity). This credit line is expected to help small and medium-sized companies
because it is also available for smaller

12

projects.
The credit line took effect onJanuary 10, 2002.

Brazil: Modernization of the Refap oil refinery of Petrobras
Petrobras, the largest oil company in Brazil, plans to modernize its Refap oil refinery by installing equipment tocrack heavy-gravity contents in crude oil and extract high value-added products, such as gasoline and diesel oil, forenvironmental protection and also for effective use of crude oil produced in Brazil. A Japanese company received
orders to modernize its Refap oil refinery. NEXI underwrote Export Credit Insurance to cover a loan of about
US$106 million from a consortium of Japanese banks for the project
The insurance contract was concluded on February 22, 2002.

Ã. Outlook of Trade Insurance
Operation
13

1. Trend of economy andtrade in FY2001
2. Outlook of tradeinsurance operation
3. Summary of tradeinsurance operation
4. Summary of claims
payment
5. Recovery
6. Amount at risk

Outlook of Trade
Insurance Operation

1. Trend of economy and trade in FY2001
The global economy entered into a downturn at thetion and capital expenditure plummeted, all contribut-

beginning of 2001, affected by the decelerated U.S.

ing to push the unemployment rate to unprecedented

economy triggered by the deteriorated performance inlevels while deflation continued unchecked.

the IT sector. Future prospects remain uncertain as various factors, including the simultaneous terrorist attacks

Japanese exports in FY2001 registered 48.6 trillion

in the U.S., continue to impact heavily on a sustained

yen, indicating 6.6% decrease from the previous fiscal

recovery.

year. Review by region shows all regions showing somedecrease, namely 6.7% decrease was recorded for the

On the other hand, since the spring of 1999 theexports for Asia, 10% decrease for Europe, and a 5.4%

Japanese economy had been on a path of gradualdecrease for the Americas. These are believed to haverecovery. This trend, however, weakened in the earlier

resulted from the sluggish performance of the IT sector

months of 2001 under adverse circumstances - such as

throughout the world, as well as the general weaken-

sluggish private demand resulting from bad loans,ing of the global economy as adversely influenced byexcessive debts and the depressed employment situa-

September 11 in the United States. This downward

tion - which remained throughout the fiscal year.

trend has started to show a sign of moderation since

Consumer spending remained stagnant while produc-

the end of the year.

(Reference) Japanese exports(Unit: ¥ billion)

FY1998
Exports
Change from the previous
fiscal year (%)(Source: Trade Statistics, Ministry of Finance)

FY1999FY2000FY2001¥49,449.3¥48,547.6¥52,045.2¥48,593.1

▲3.8

▲1.8

7.2

▲6.6

14

2. Outlook of trade insurance operation(1) Underwritten amount(Unit: ¥ billion/$ million)

FY2000¥10,811.6

Underwritten amount

Change from the previous fiscal year (%)

FY2001¥10,136.6▲6.2$76,215(Note) US$1=¥133 exchange rate is employed here (as at the end of FY2001; the same exchange rate applies hereafter).

(2) Operating income(Unit: ¥ billion/$ million)

FY2000FY2001

Change from the previous fiscal year (%)

Premium income¥32.9¥ 42.1

$317

¥27.9

Recovery¥85.3¥ 74.5

$560

▲12.6

(Note 1) Premium income here is not exclusive of the return premium amount. Premium income for FY2001 is quoted on the basis of invoice issuance, as
opposed to the premium incomes for the years up to FY2000 which were quoted on the basis of actual receipt in the special account settlement.
(Note 2) Recovery for FY2001 is quoted on the basis of reporting, as opposed to the recoveries for the years up to FY2000 which were quoted on the basisof actual receipt.

15(3) Claims Paid

(Unit: ¥ billion/$ million)

FY2000FY2001¥32.4

Claims paid

¥49.9

Change from the previous fiscal year (%)$375(4) Amount at risk

(Unit: ¥ billion/$ million)

End of FY2000
Amount at risk

53.9

¥7,523.0

End of FY2001¥7,549.1

Change from the previous fiscal year (%)$56,760

0.3

Ã. Outlook of Trade Insurance Operation

3. Summary of trade insurance operation(1) Underwritten amount by type of insurance(Unit: ¥ billion/$ million)

FY2001

FY2000Change from the previous fiscal year (%)¥10,380.9¥9,737.9$73,217▲6.2

Short term

¥10,113.7¥9,647.1$72,535▲4.6

Medium to long term

¥267.2

¥90.8

$683

▲66.0

Export Bill Insurance

¥67.3

¥60.6

$455

▲10.0

Export Bond Insurance

¥51.6

¥50.2

$377

▲2.8

Prepayment Import Insurance

¥1.2

¥1.8

$13

47.5

Export Credit Insurance

Overseas Investment Insurance

¥85.9

¥55.6

$418

▲35.2

Overseas Untied Loan Insurance¥224.8¥230.6$1,734

2.6¥10,811.6¥10,136.6$76,215

▲6.2

Total

Note : Since fractions are rounded up or down to the next whole number, the sum of each category in a column does not always equal the total figure.
(Applicable as well to the charts that follow.)

Underwritten amount for FY2001 amounted to 10.1 trillion yen, a decrease of 675 billion yen (6.2% ) compared withthe previous fiscal year.

(2) Underwritten amount by region(Unit: ¥ billion/$ million)

FY2001

FY2000Change from the previous fiscal year (%)

Asia¥4,101.6¥4,334.6$32,591

5.7

Europe¥2,236.2¥1,708.3$12,844▲23.6

North America and Central America¥4,427.3¥4,074.3$30,634▲8.0South America¥469.2¥379.0$2,849▲19.2

Africa¥211.8¥273.8$2,05929.3

Oceania¥339.9¥276.2$2,077▲18.7(Note 1) Methods of recording sums insured by countryPre-shipment ... Country of the consignee
Post-shipment ... Country of the paying party; country of the guaranteeing party where guarantee is provided(Note 2) Middle East and Central Asia are included in Asia (the same applies hereafter).
(Note 3) Central Europe, East Europe and Russia are included in Europe (the same applies hereafter).
(Note 4) Sums insured are recorded for both the countries of consignee and the countries of paying party.

Asia overall showed 5.7% increase compared with

Europe indicated a sizable 23.6% decrease over thethe previous fiscal year. Taiwan and Iran in particularprevious fiscal year. The United Kingdom and theshowed drastic increases. Specifically, Taiwan increased

Netherlands in particular showed remarkable decreases

47% over the previous fiscal year driven by a major rail-of 40% and 50% respectively over the previous fiscal

way project, while petrochemical plant business, etc.

year.

pushed up the figure for Iran recording over 400%
increase compared with the previous fiscal year.

North America, where September 11 took place, and16

Central America showed an 8% decrease on an overall

countries, Venezuela in particular, showed somebasis compared with the previous fiscal year.

growth, which is thanks to the Overseas Untied Loan

The figure for South America showed overall
decrease of 19.2% over the previous fiscal year, due toInsurance business to cover the gas project at the
Venezuelan petroleum companies.

the stagnant performance for Brazil, etc. Yet some(3) Sums insured and share by sector, in Export Credit Insurance(medium to long term) and Overseas Untied Loan Insurance
Sector17(Unit: ¥ billion/$ million)

Share (%)

Sums insured

Petroleum/gas¥165.0$1,24051.3%

Infrastructure

¥59.0

$444

18.4%

Telecommunications

¥37.9

$285

11.8%

Electric utilities

¥25.3

$190

7.9%

Chemical

¥23.9

$179

7.4%

Mining

¥3.7

$28

1.2%

Manufacturing

¥2.5

$18

0.8%

Steel

¥0.6

$4

0.2%

Ceramic

¥0.6

$4

0.2%

Others

¥3.0

$23

0.8%

Total

¥321.3$2,416

100%

Combined underwritten amount in Export Credit Insurance (medium to long term), and Overseas Untied Loan
Insurance in FY2001 amounted to 321.3 billion yen. Petroleum/gas sector represented the largest underwritten
amount, amounting to 165 billion, accounting for 51.3% of the total.

Ã. Outlook of Trade Insurance Operation

4. Summary of claims payment(1) Claims paid by type of insurance, by type of risk (political risk/commercial risk)
Claims paid

Political risk

(Unit: ¥ billion/$ million)

FY2001

FY2000Commercial risk

Political risk

Claims paid

¥20.1

Commercial risk
¥29.4

¥12.5

¥49.5

$372

¥0.4

¥0.4

¥0.2

$1

¥0.2

¥0.1

¥0.1

¥0.02

$0.2

¥0.02

¥0.2

$2

¥0.2

¥13.0

¥49.9

$375

¥20.3

Export Credit Insurance¥31.9

Export Bill Insurance¥19.4

Export Bond Insurance
Prepayment Import Insurance
Overseas Investment Insurance
Overseas Untied Loan Insurance
Total

¥32.4

¥19.4

(2) Claims paid by region(Unit: ¥ billion/$ million)

Year of accounting
Type of risk

¥29.6

FY2000FY2001
Total

Total
Political

RegionPolitical

CreditCreditChange overthe previous
fiscal year (%)

Asia

¥20.2

¥14.1

¥6.2

¥46.0

$346

¥18.8

¥27.2

127.3

Europe

¥5.7

¥5.1

¥0.6

¥1.5

$11

¥0.7

¥0.9

▲73.5

North America and Central America

¥4.5

¥0.02

¥4.4

¥1.0

$8

¥0

¥1.0

▲77.0

South America

¥1.7

¥0

¥1.7

¥0.2

$2

¥0

¥0.2

▲86.7

Africa

¥0.3

¥0.2

¥0.1

¥1.1

$8

¥0.9

¥0.3

271.1

Oceania¥0.002¥0¥0.002

¥0.01

$0.1

¥0

¥0.01

350.0

Total

¥32.4

¥19.4

¥13.0

¥49.9

$375

¥20.3

¥29.6

53.9

Claims paid during FY2001 amounted to 49.9 billion

ing for more than 90% of the total claims paid. This isyen, showing 53.9% increase compared with the previ-mainly due to the credit incidents involving the buyers

ous fiscal year, mainly due to a shock loss as a result ofof pulp and paper related products in Indonesia andmajor credit incidents. Claims paid due to credit inci-

China, amounting to 23.5 billion yen, on top of thedents amounted to 29.6 billion yen, which is about 2.3

political risk related payment of 18 billion yen fortimes larger than the previous fiscal year, whereas

Indonesia, as a result of the secondary Paris Club

claims paid due to political risk incidents amounted torescheduling.

20.3 billion yen (4.7% increase over the previous fiscal
year).

Incidentally, by country shares of the claims paid are:72% for Indonesia, 15% for China, 3% for Korea, 2%

Reviewed by region, Asia recorded 46 billion yen(127.3% increase over the previous fiscal year) account-for the United States, 2% for Belarus, etc.

18

5. Recovery(Unit: ¥ billion/$ million)

Region

FY2001

FY2000Change from the previous fiscal year (%)

Asia

¥16.3

¥10.4

$78

▲36.3

Europe

¥12.4

¥28.1

$211

126.2

North America and Central America

¥14.0

¥1.7

$13

▲87.6

South America

¥36.4

¥28.3

$213

▲22.2

Africa

¥6.2

¥6.0

$45

▲2.3

Oceania

0

0

0

−

¥85.3

¥74.5

$560

▲12.6

Total

(Note 1) Recoveries for FY2001 are quoted on the basis of reporting, as opposed to the recoveries for the years up to FY2000 which are quoted on the basisof actual receipt.

19

Recoveries for FY2001 amounted to 74.5 billion yen,

The decrease in recoveries for FY2001 compared withshowing 10.8 billion yen (12.6%) decrease from thethat for FY2000 is explained by various factors such asprevious fiscal year's 85.3 billion yen. Reviewed by typethe reduction in the amount of receivables, andof risk, recoveries involving commercial risk incidents

decrease in the recoveries from Argentina and theamounted to 1 billion yen (accounting for 1.3% of thePhilippines, apart from the launch of the deductible

total), whereas the vast majority is attributable to thoseinterest pre-reimbursement system.

related to political risk incidents such as rescheduling,amounting to 73.6 billion yen (accounting for 98.7% of
the total).

Ã. Outlook of Trade Insurance Operation

6. Amount at risk
(1) By type of insurance(Unit: ¥ billion/$ million)

End of FY2001

End of FY2000¥5,933.9¥5,938.9$44,653

Short term

¥4,188.6¥4,465.8$33,577

Medium to long term

¥1,745.3¥1,473.1$11,076

Export Bill Insurance

¥16.8

¥15.4

$116

Export Bond Insurance

¥56.7

¥9.9

$74

Prepayment Import Insurance

¥0.5

¥0.8

$6

Overseas Investment Insurance¥819.0¥747.0$5,617

Overseas Untied Loan Insurance¥696.1¥837.2$6,294¥7,523.0¥7,549.1$56,760

Export Credit Insurance

Total(2) By region(Unit: ¥ billion/$ million)

20

End of FY2001

End of FY2000
Asia¥4,466.4¥4,396.0$33,053

Europe¥786.7¥684.7$5,148¥1,411.0¥1,476.0$11,098

South America¥633.1¥658.0$4,947

Africa¥274.1¥350.0$2,631

Oceania

¥87.1

¥86.4

$650

North America and Central America(Note 1) Method of recording by countryPre-shipment ... Country of the consignee
Post-shipment ... Country of the paying party; country of the guaranteeing party where guarantee is provided(Note 2) Sums insured are recorded for both the countries of the consignee and the countries of the paying party.

Amount at risk for FY2001 amounted to 7.5 trillion yen, showing a 0.3% increase over the previous fiscal year.

Ä. Financial Statements of NEXI
21

1. Regarding the Financial
Statements for FY2001
2. Financial Statements(1) Balance Sheet(2) Profit and Loss Statement(3) Cash Flow Statement(4) Notes(5) Statement of Appropriationof Retained Earnings

Financial Statementsof NEXI

1. Regarding the financial statements for the first period (FY2001)
Nippon Export and Investment Insurance (NEXI), an(2) Conditions of profits and losses

independent administrative institution, submitted the

For fiscal 2001, NEXI registered a net premium writ-financial statements for its first period (fiscal 2001) to

ten totaling ¥7.4 billion as a result of underwriting

the Minister of Economy, Trade and Industry on June

major projects and speeding up the procedure for con-20, 2002, and obtained the Minister’s approval for

tract conclusions. The ordinary profit or loss was a loss

them on July 5.

of ¥1.7 billion because of special circumstances in theestablishment year under which no reversal of underwriting reserve from the preceding year should arise.

(1) The financial statements in outline
Highlights of NEXI’s financial statements for the first

But the total profit for the term offset against the extraordinary income and loss relating to subrogated claims

period (fiscal 2001) are as follows:invested by Government was a profit of ¥18.4 billion.
(In millions of yen)Item
Net premium written
Ordinary income or expenseFirst business year (FY2001)

As an extraordinary profit or loss, NEXI registered the
profit or loss relating to the claims furnished by the

7,390

government as investment under an ordinance of the△ 1,738

Ministry of Economy, Trade and Industry (the right toobtain the payment of the recovery relating to claims

Extraordinary profit or loss relating

paid under an intergovernmental rescheduling agree-

to subrogated claims invested
by Government

20,140Total profit for the term

18,402

Total assets

150,084

Net assets

122,754ment). Regarding their breakdown, they include, in
addition to interest totaling ¥17.1 billion, received or
receivable that had arisen from such claims, exchange
profits totaling ¥4.7 billion relating to foreign currencybased claims and a provision of ¥25.3 billion to thereserve for uncollectible subrogated claims invested byGovernment that accompanied a reassessment ofclaims.
The total profit for the term was ¥18.4 billion andwas handled in total as an appropriation to the reserve
fund under the provisions of the law. In addition, halfof the balance of the reserve in the final year of themedium-term goal (four years) will be handed over tothe Treasury of the Government of Japan.

22

2. Financial Statements(1) Balance Sheet ( As of March 31, 2002 )(In millions of yen)

Item

Value

Item

(Assets)(Liabilities)

Cash and cash equivalents

19,338

Outstanding claims

212

Receivables from subrogated claims

283,269

Underwriting reserve

4,087

Accrued income

114,548

Reinsurance balance payable

5,546

Accrued premiums

5,652

Deposits received

4,648

Reinsurance balance recoverable

16,757

Accrued amount payable

5,546

Equipment and fixtures (Note 2)

1,361

Suspense receipts

4,967

Vehicles (Note 3)

5

Reserve for bonus payments

146

Other receivables

6

Reserve for retirement allowances

14

Deposits

23

Value

266

Suspense payments

0

Other assets

32

Allowance for uncollectibles△ 291,150

Other liabilities

2,164

Total liabilities

27,330(Shareholders’ equity)
Capital stock
Government’s investment

104,352

Retained earnings
Unappropriated retained earnings

Total assets

150,084

18,402

Total shareholders’ equity

122,754

Total liabilities and shareholders’ equity

150,084(Notes)
1. Fractions of less than ¥1 million (¥500,000 and over) are rounded up to ¥1 million. Amounts under ¥500,000 have been eliminated.
2. Accumulated depreciation for equipment and fixtures is ¥124 million.
3. Accumulated depreciation for vehicles is ¥3 million.

Ä. Financial Statements of NEXI

(2) Profit and Loss Statement ( From April 1, 2001 to March 31, 2002 )(In millions of yen)

Item

Value

Ordinary Income

Ordinary Income and Loss

Net premium written

7,418
7,390

(Note 2)

Interest income

20

Other ordinary income

7

Ordinary Expenses

9,156

Net claims paid

2

(Note 3)

Provision for outstanding claims

212

Expected amount of insurance claim recovery (Note 4)△4

Provision for underwriting reserve

4,087

Exchange loss

11

Operating and general administrative expenses

4,835Interest paid

12

Other ordinary expenses

1△ 1,738

Extraordinary profit
and loss

Ordinary losses
Extraordinary profit
Profit relating to subrogated claims invested by Government

48,135(Note 5)

48,135Extraordinary loss

27,995

Loss relating to subrogated claims invested by Government (Note5)

2,733

Reserve for uncollectible subrogated claims invested by Government

25,262

Total profit for the term

18,402(Notes)
1. Fractions of less than ¥1 million (¥500,000 and over) arerounded up to ¥1 million. Amounts under ¥500,000 havebeen eliminated.
2. The breakdown of net premium written is as follows:
Direct premium written
37,359Refund of premiums of reinsurance ceded
2,943
Premium written from reinsurance accepted2
Premiums on reinsurance ceded
32,914(Net)
7,390(¥ million)
3. The breakdown of net claims paid is as follows:
Insurance claims paid
Reinsurance claims recovered(Net)

49,89149,8892(¥ million)

4. The breakdown of expected amount of insurance claim
recovery is as follows:(1) Increase or decrease between the expected recovery
from subrogated claims relating to insured commercial
risks registered as assets at the beginning of the term
and the same at the end of the term
3(2) Recovery from subrogated claims relating to insured
commercial risks
1
4(¥ million)
5. Profit and loss relating to investment property are entered in
extraordinary profit and loss pursuant to the provisions ofArticle 2 of supplementary rules of the ministerial ordinancerelating to the finances and accounts of Nippon Export andInvestment Insurance, an Independent Administrative
Institution (Ordinance No. 104, March 29, 2001, Ministry of
Economy, Trade and Industry).
(1) The breakdown of income relating to subrogated claims
invested by Government, is as follows:
Interest income from subrogated claims invested byGovernment
17,133
Recovery of unrescheduled subrogated claims invested byGovernment
3,337
Recognition of rescheduled subrogated claims invested byGovernment
16,985
Exchange profit in rescheduled subrogated claims invested
by Government
4,662
Credited reserve amount added back to investment credit
claims
6,018
48,135(¥ million)(2) The breakdown of loss relating to subrogated claims invested by Government, is as follows:
Recognition of liabilities incidental to subrogated claims
invested by Government
2,733(¥ million)24

(3) Cash Flow Statement ( From April 1, 2001 to March 31, 2002)(In millions of yen)!. Cash flow from operating activities
Premium received

37,285Outlays of premiums of reinsurance ceded△ 25,354

Payments of insurance claims△ 49,760

Income of premiums on reinsurance ceded

33,952

Income from recovery of subrogated claims, etc.

23,126

Outlays in distribution of money recovered in relation to subrogated claims△ 8,966

Income in recovery of subrogated claims belonging to Government

60,559Outlays in distribution of money recovered in relation to subrogatedclaims belonging to Government△ 55,936

Personnel expenses△ 1,395

Other outlays in business activities△ 2,372

Others25

14
Subtotal

11,152

Interest and dividends received

8,591

Interest and dividends paid

△ 12

Net cash flow provided by operating activities

19,731@. Cash flow from investment activities
Outlays in acquisition of fixed assets△7

Outlays in depositing of deposits△ 266

Income due to withdrawal of deposits
Net cash flow provided by investment activities

0
△ 273

#. Cash flow from financial activities
Income due to short-term borrowing

600

Outlays due to redemption of short-term borrowing△ 600

Payments in financial lease△ 121

Net cash flow provided by financial activities△ 121$. Effect of exchange rate changes on cash and cash equivalents%. Net change in cash and cash equivalents^. Balance of cash and cash equivalents at the beginning of the term&. Balance of cash and cash equivalents at the end of the term

0
19,338−19,338(Notes)
1. Fractions of less than ¥1million (¥500,000 and over) arerounded up to ¥1million. Amounts under ¥500,000 are eliminated.
2. The breakdown of the balance of cash and cash equivalents
Cash on hand, including petty cash0
Current deposits
2
Ordinary deposits
19,336
Balance of funds at the end of the term
19,338
3. Important noncash transactions(1) Acquisition of assets due to acceptance of subrogatedclaims invested by Government
Acceptance of subrogated claims invested byGovernment
Subrogated claims
272,955
Accrued income
105,985
Accrued amount payable△ 8,699
Allowance for uncollectibles△ 265,889
Total
104,352(2) Acquisition of assets in financial lease
Equipment and fixtures (host computer)
Vehicles
Total

1,480
8
1,487

Ä. Financial Statements of NEXI

(4) Notes
1. Important accounting policies
1．The method of depreciation(1)The method of depreciation for tangible fixed assets

4．The method to make appropriations for the reserve
for retirement allowances

In the case of tangible fixed assets whose acquisition

In the case of the reserve for Board members’ retire-

cost per unit or per set exceeds ¥200,000, the straight-

ment allowances, appropriations equivalent to the fullline method with 10% of the acquisition cost as theamount payable under the rules for the payment ofresidual value is used on the basis of the service life

Board members’ retirement allowances are made.

stipulated in the Corporate Tax Law.

(2)The method of amortization for intangible fixed assets

5．The method to make appropriations for the under-

In the case of trademark rights, the straight-line

writing reserve, outstanding claims, subrogatedmethod with 0% as the residual value is used on thebasis of the service life stipulated in the Corporate Tax
Law.

claims, and allowance for uncollectibles.
NEXI appropriates a cash amount calculated by themethod mentioned in "Bo No. 2 Ordinance of the

In the case of software used in-house, the straight-

Minister of Economy, Trade and Industry of March 29,

line method is used, with the period of usability (four2001, and March 27, 2001, titled "Regarding theyears) as the service life and ¥0 as the residual value.

method of calculation determined by the Minister of(3)The method of handling lease transactions

Economy, Trade and Industry under the provisions ofIn the case of financial lease transactions where theequivalent of the acquisition cost per unit or per set
exceeds ¥3 million, depreciation for accounting is
made by the same method as that for ordinary transac-

the ministerial ordinance concerning the financial
affairs and accounting of Nippon Export andInvestment Insurance, an independent administrative
institution."tions by the straight-line method with necessarychanges and with the period of lease as the service lifeand ¥0 as the residual value.

2. Important obligations undertaken
There are no obligations undertaken.

2．The method of appraising the monetary debts andcredits in foreign currencies
Monetary debts and credits in foreign currencies are

3. Important subsequent developments

appraised by converting them into the yen value at the

There are no developments after the compilation of

exchange rate prevailing at the time of settling theaccounts.

3．The method to make appropriations to the reserve
for bonus payments and the method to estimate thetotal cost of bonus payments
Regarding the reserve for bonus payments, a cash
amount equivalent to the total amount payable to thewhole staff and imputable to the term under review
are appropriated every fiscal year.

the financial statements.

26

4. Substance of peculiar items presented
Item

Substance

Subrogated claims

Subrogated insurance claims registered as assets and the expected subrogated insurance claims relating to outstanding claims are entered.

Accrued premiums

Premiums receivable by a policyholder that arise as a result of an application for a contract are entered.

Reinsurance balance recoverable

Receivables that arise vis-à-vis the Government as a result of a reinsurance transaction with the Government are entered.
« Reinsurance premiums to be returned by the Government« Reinsurance claims payable by the Government

Outstanding claims

The monetary amount considered necessary to indemnify for losses that have arisen by the end of the term under review and losses
considered to have arisen by the end of the term under review are entered in pursuance of the provisions of "Bo No. 2
Ordinance of the Minister of Economy, Trade and Industry of March 29, 2001, and March 27, 2001," titled "Regarding the methodof calculation determined by the Minister of Economy, Trade and Industry under the provisions of the ministerial ordinance concerning
the financial affairs and accounting of Nippon Export and Investment Insurance, an independent administrative institution."

Underwriting reserve

The monetary amount necessary for the performance of obligations in the future under an insurance contract and themonetary amount necessary for the performance of obligation in the future under a reinsurance contract accepted are entered inpursuance of the provisions of "Bo No. 2 Ordinance of the Minister of Economy, Trade and Industry of March 29, 2001, and March
27, 2001," titled "Regarding the method of calculation determined by the Minister of Economy, Trade and Industry under theprovisions of the ministerial ordinance concerning the financial affairs and accounting of Nippon Export and Investment
Insurance, an independent administrative institution."

27
Reinsurance balance payable

Payables that arise on the basis of a reinsurance contract are entered.
« Premiums payable to the Government for reinsurance ceded to the Government

Net premium written

The monetary amount calculated by subtracting reinsurance premiums paid from gross premium income is entered.
As gross premium income, the sum of direct premiums and premiums for reinsurance accepted is entered.

Net claims paid

The monetary amount calculated by subtracting the collected reinsurance claims from the insurance claims paid is entered.
As gross insurance claims paid, the sum of direct insurance claims paid and claims paid for reinsurance accepted is entered.

Expected amount of insurance claim recovery

The sum obtained by adding up the following is entered:« Subrogated claims that have arisen by the time of insurance claim payments« Subrogated claims collected in connection with a credit accident« Subrogated claims collected but not entered as an asset in connection with a political accident«An increase or decrease between the beginning and end of a fiscal year in the anticipated subrogated claims collected enteredas an asset accompanying the registration of a reserve fund for outstanding claims«An increase or decrease between the beginning and end of a fiscal year in the anticipated subrogated claims collected enteredas an asset in connection with a credit accident

Provision for outstanding claims

The monetary amount appropriated to the outstanding claims during the term under review is entered.

Provision for underwriting reserve

The monetary amount appropriated to the underwriting reserve during the term under review is entered.

Ä. Financial Statements of NEXI

(5) Statement of Appropriation of Retained Earnings(yen)!. Unappropriated retained earnings at end of term
Total profit for the term

18,401,893,025
18,401,893,025@. Appropriation of retained earnings
Reserve

18,401,893,025

18,401,893,025

28

Outline of NEXIMembers of the Board
Chairman and CEO

Hisamitsu Arai

Vice Chairman

Mutsuo Hatano

Vice Chairman

Yukio Kitazume

Members of the Audit Board
Corporate Auditor

Yutaka Miyake

Corporate Auditor

Takashi Imai

29

From left to rightVice Chairman

Chairman and CEO

Vice Chairman

Yukio Kitazume

Hisamitsu Arai

Mutsuo Hatano

Corporate Auditor

Corporate Auditor

Yutaka Miyake

Takashi Imai

Established

Locations of offices

April 1, 2001

Head office

Chiyoda First Building, 3-8-1, Nishikanda,
Chiyoda-ku, Tokyo 101-8359 Japan;
Tel. 81-(0)3-3512-7650

NEXI, Osaka

Osaka Godo Chosha No. 1 Building, 1-5-44
Otemae, Chuo-ku, Osaka-shi, Osaka
540-0008 Japan; Tel. 81-(0)6-6941-2413

NEXI, Nagoya

Chubu Bureau of Economy, Trade andIndustry Building, 2-5-2 Sannomaru,
Naka-ku, Nagoya-shi, Aichi 460-8510
Japan; Tel. 81-(0)52-951-2101

Governing laws
The Law concerning the general rules of the Independent
Administrative Institutions.
The Trade and Investment Insurance Law.

PurposeTo conduct, efficiently and effectively, the business of underwriting risks that arise in international transactions and fromwhich the policyholders cannot be protected by commercial
insurance.

Competent Minister
The Minister of Economy, Trade and Industry

30
Paid-in capital¥104,352,324,369 (totally invested by the Government)

Number of employees
158 (As of March 31, 2002)

History
July 1999

December 1999

April 2001

The Law concerning the general rules of the
Independent Administrative Institutions
enacted.
A law to make a partial amendment to theTrade and Investment Insurance Law enacted.
NEXI was established.

(Reference) The Export Credit Insurance Law (Today's Tradeand Investment Insurance Law) was enacted in March 1950.
Since then, the Ministry of Economy, Trade and Industry (theformer Ministry of International Trade and Industry) managed trade insurance business until March 31, 2001.

Organization
Structure
Chairman and CEO
Audit Board
Planning and Administration
Department

Underwriting Department

tel.81-(0)3-3512-7651 fax.81-(0)3-3512-7699, 7676

tel.81-(0)3-3512-7661 fax.81-(0)3-3512-7679, 7687

General Management Grouptel.81-(0)3-3512-7653
・Total management
・Communications with the Ministry of Economy, Trade andIndustry and the institutions concerned

Customer Relations Office

Structured and Trade FinanceInsurance Department
tel.81-(0) 3-3512-7670 FAX.81-(0) 3-3512-7688

Project Group No.1

tel.81-(0)3-3512-7712

tel.81-(0)3-3512-7672

・Handling customer questions and requests about insurance
instruments

・Handling oil/gas-related medium to long termtransactions which have no L/G (e.g. project finance andcorporate finance) and transactions which have special
methods of funding

Strategic Planning Grouptel.81-(0)3-3512-7654
・Planning of medium-term and yearly management strategies
・Planning to improve the insurance system

Product Development Group

Business Promotion Grouptel.81-(0)3-3512-7665
・Planning and promoting sales strategies
・Entering the contracts of the comprenesive insurance policy
・Management of shippers' codes
・Re-insurance with Export Credit Agencies

Project Group No.2
tel.81-(0)3-3512-7673
・Handling power generation, mining and steel
manufacturing-related medium to long term transactions
which have no L/G (e.g. project finance and corporate
finance)tel.81-(0)3-3512-7714
・Developing new insurance products

Administration Grouptel.81-(0)3-3512-7656

31

・Human resource and welfare management
・Documentation management

Asia Pacific and Middle East Grouptel.81-(0)3-3512-7668
・Underwriting mainly Export Credit Insurance relating to
all short term nonstandard transactions and somemedium to long term transactions in the Asia Pacificregion and Middle East

Accounting Grouptel.81-(0)3-3512-7657
・Accountancy ・Fund management

Treasury Grouptel.81-(0)3-3512-7659
・Receipts and disbursement of deposit and securities andrecord keeping
・Recording of balance of capital

Debt Management andRecovery Group

Europe, Africa and Americas Grouptel.81-(0)3-3512-7667
・Underwriting mainly Export Credit Insurance relating to
all short term nonstandard transactions and somemedium to long term transactions in the Europe, Africa
and North and Latin America

Overseas Investment Insurance Grouptel.81-(0)3-3512-7666
・Underwriting of Overseas Investment Insurance

tel.81-(0)3-3512-7658
・Recovery planning and recovery of claims paid・Assessment of the value of claims

Recovery Services Grouptel.81-(0)3-3512-7725
・Allocation of recovered claims

System and Statistics Group

Contract Documentation Grouptel.81-(0)3-3512-7664
・Underwriting and alternation of short term standardtransactions
・Conclusion of insurance contracts and other officeprocedures relating to short term nonstandard andmedium to long term transactions
・Office procedures relating to notifications and applicants
before occurrences of losses

tel.81-(0)3-3512-7677
・Maintenance and administration of the insurance information system
・Administration of statistics relating to insurance

Public Relations Group

Claims Service Grouptel.81-(0)3-3512-7663

tel.81-(0)3-3512-7655
・Custody of notification of losses and credit advice
・Assessment of insured event
・Correspondence to presses and duties relating to PR suchas web site management and issuance of pamphlets
・Sharing information and interaction with other Export Credit
Agencies, the World Bank and international financial institutions
・Administration of the overseas representative offices

Project Group No.3
tel.81-(0)3-3512-7674
・Handling infrastructure-related medium to long termtransactions which have no L/G (e.g. project finance andcorporate finance)

Project Group No.4
tel.81-(0)3-3512-7675
・Underwriting Overseas Untied Loan Insurance whentransactions have L/G (including when transactions haveno L/G and NEXI covers political risk only)Vice Chairman
Financial Risk Management
Department

Domestic Branches

・Collecting various information on Export Credit Insurance
overseastel.81-(0) 3-3512-7680 FAX.81-(0)3-3512-7699

Credit Analysis and Control Group

Overseas Offices

NEXI, Osaka

tel.81-(0)3-3512-7683

tel.81-6-6941-2413 FAX.81-6-6941-9653

・Assessment of underwriting and claims
・Operation of the insurance system including underwriting
conditions or policy, premium rates and so on
・Correspondence to International standards such as theOECD guidelines

・The front branch of the export credit insurance in thewest area of the Kinki region

NEXI, Parisc/o JETRO
166, rue de Rivoli,
75001 Paris France
Tel.33-(0)1-4261-5879
Fax.33-(0)1-4261-5049

Business Promotion Group
Environment Grouptel.81-(0)3-3512-7685
・Environmental and social reviews based on Guidelines
on Environmental and Social Consideration in Trade
Insurance
・Correspondence to the OECD meeting dealing with theissues of export credit and environment

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

tel.81-(0)6-6941-2413
・Total management in the branch・Planning and implementation of business strategy
in the branch

Underwriting Grouptel.81-(0)6-6941-2414
・Credit exposure management
・Duties relating to Export Credit Insurance ofoverseas buyer and bank (specific insurance)
・Duties relating to Export Bill Insurance

Comprehensive Insurance Grouptel.81-(0)6-6941-2415

Credit Administration Grouptel.81-(0)3-3512-7684
・Planning management of credit exposure to overseas buyer and bank・Rating and establishing credit limit of overseas buyer andbank・Analysis of creditworthiness of overseas buyer and bank・Duties relating to Export Credit Insurance (shortterm comprehensive insurance and comprehensive
insurance policy with associations)

NEXI, Nagoya
tel.81-52-951-2101 fax.81-52-951-5115
・Duties relating to credit exposure management of overseas
buyer and bank・Duties relating to Export Credit Insurance (specific insurance
and short-term comprehensive insurance)
・Duties relating to Export Bill Insurance

NEXI, New Yorkc/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

NEXI, Singapore
c/o JETRO
16 Raffles Quay #37-02A,
Hong Leong Bldg.
Singapore 048581
Tel.65-6429-9580~9582
Fax.65-6220-7242

32

GlossaryAmount at risk

Insurance claims paid

Amount of sum insured at risk associated with the

The amount of money the insurer (NEXI for instance)transactions for which acceptance or unofficial commit-

pays, to indemnify the loss suffered by the insured as ament has been made by the insurer, which is the total

result of an incident which is to be covered by the

insurance exposure held under the export (political risk)

insurance

insurance contract

Paris ClubCountry of destination

A conference of the major creditor countries for the

The country or the territory in which the cargo is dis-purpose of discussing the relief measures for the (pub-charged and transferred to the counterparty of the con-lic) debtor countries, which is commonly called the Paris

tract or the consignee of the cargo under the export

Club since the conference is held in Paris while thecontract, etc.

French Ministry of Finance, as secretariat, is responsible
for the administration of the conference

Credit risk (credit loss)
Perils arising out of the troubles for which the counter-

33

Paying country

party of an international transaction is responsible, such

The country or the territory in which the paying party ofas bankruptcy of the counterparty of the contract,the cargo price, etc. under the export contract, or thedelay in repayment of financial obligation for longer

borrower under the export proceeds loan contract, etc.

than three months, etc.

is domiciled

Debt rescheduling

Political risk (political risk incident)

It refers to the deferral of the repayment schedule of

Perils beyond control of the parties concerned in inter-the debtor countries‘ debts, which is one of the relief

national transactions such as foreign trade. For exam-measures offered to the high-debt developing countries

ple, war, revolution, civil disturbance, confiscation,
import restrictions, restrictions on foreign exchange

Deductible interest

transaction, strikes, etc.

Since the insured is supposed to bear the cost of interest accruing from the repayment date up to the date of

Recoverythe insurance claims paid (or the date when recovery is

The amount of money the insured successfully recov-

made in case recovery is made prior to the date ofered from the counterparty of the transaction, after the

insurance claims paid), the insured is allowed to deduct

insured‘s filing of an insurance claim following an inci-

the amount equivalent to his burden of such interest

dent covered by the insurance

payment, from the amount to be reimbursed to thegovernment in the event recovery is successfully madeReturn premiumfrom the counterparty. Such amount is called "deduct-

Return premium refers to the part of the insurance pre-ible interest".

mium to be refunded subject to certain conditions, inthe event there is a change in the contents of the

Guarantor‘s country

export contract, etc. or the insurance period is reduced

The country in which the institution or the bank, etc.
which issues letter of credit or letter of guarantee as

Underwritten amountrespects the financial obligations, related to the export

The amount of export contract attached with the insur-

contract or the export proceeds loan contract, is domi-

ance, being multiplied by the percentage of cover, i.e.,

ciled

the underwritten amount effectively covered■ NEXI, Tokyo

Chiyoda First Building, 3-8-1 Nishikanda, Chiyoda-ku,Tokyo 101-8359
Japan;Tel.81-(0)3-3512-7650 Fax.81-(0)3-3512-7660
Tokyo Dome

Sotobori st.
kandagawa River

JR Suidobashi sta.

lit
po
tro
Me

JR Chuo Line
Tokyo Dental
College Hospital

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st.

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Nihon Unv.

Mi

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OoharaBoki School

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ay

NEXI

Mitsui Sumitomo
Bank
Sensyu Unv.

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Murata Boki

Lin

s
dan
Ku .
Sta

Nishikanda
Ramp

hit

Shinjuku
Subway LineaMizuho Bank
A2 ExitJinbocho sta.
Yasukuni st.

cho
bo
Jin .
Sta

Jonan Credit
Association

st.
dai
Sen

Kudanshitasta.

HanzomonSubway Line■ NEXI, Paris
Rue Richelieu

M7

Rue Moliere
Avenue de l' Opera

c/o JETRO
166, rue de Rivoli,
75001 Paris France
Tel.33-(0)1-4261-5879
Fax.33-(0)1-4261-5049

Metro No.1
Comedie Palais RoyalFrancaise Musee du Louvre
entrance

M1

Rue St-Honore

Place duPalais Royal
HOTEL DULOUVRERue de Rivoli

NEXI Paris

Musee du Louvre■ NEXI, New York
48th

49th

50th
51th
1・9 50th street

52th

Broadway
7th Ave.

N・R 49th street

McGraw-Hill Bldg
Ave of the Americas(6th Ave.)

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

B・D・F・Q Rockefeller Center

Rockefeller Center■ NEXI, Singapore

AY

CECIL ST

COLLYER QUAIA Tower

Hong Leong Bldg

RA
FFL
ES

QU
AY

M
R
T

c/o JETRO
16 Raffles Quay #37-02A,
Hong Leong Bldg.
Singapore 048581
Tel.65-6221-8174
Fax.65-6220-7242

34