2020 Annual Report JBIC 1. Profile of JBIC 1. Profile ·······························································································2 2020 2. History of JBIC ··················································································4 Japan Bank for 3. Top Message ····················································································6 International 4. Directors, Managing Executive Officers and Corporate Auditors········································································12 Cooperation 5. Medium-term Business Plan (FY2018–FY2020) ·····························14 Annual Report 6. Outline of Operations in FY2019 ··················································20 2. The Environment Surrounding JBIC and Its Challenges 1. Energy and Natural Resources Finance Group······························28 2. Infrastructure and Environment Finance Group ···························32 3. Industry Finance Group ·································································36 4. Equity Finance Group ····································································40 3. Examples of Business Outcomes in FY2019 1. Overview of Business Outcomes by Region ··································44 2. Examples of Business Outcomes by Region ··································46 3. Examples of Business Outcomes Relating to Support for Mid-tier Enterprises and SMEs ··································54 4. Examples of Business Outcomes Relating to Environment ··········58 5. Examples of Business Outcomes Relating to Studies and Collaboration with Overseas Governmental Organizations and International Organizations ···························60 4. Financial Instruments 1. Financial Instruments ·····································································64 2. Prominent Initiatives in Recent Years ···········································74 3. Framework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs ·····································77 5. Operational and Administrative Policies 1. Corporate Governance ··································································80 2. Risk Management ··········································································84 3. Public Information and Disclosure ················································87 Numerical figures in this report 1. Numerical figures, other than percentages, in this report are truncated to the nearest whole number. (Figures prior to FY2008 were rounded off.) Percentage figures are rounded off. Thus numerical and percentage figures may not add up to the totals given. Amounts denominated in foreign currencies are treated as follows. Commitments are converted into yen at the Basic Rate of Exchange (revised semi-annually by the Minister of Finance, based on the prevailing market rates during the preceding six months) at the time financing contracts are concluded. Disbursements, repayments, and outstanding balances are calculated based on book value. 2. Numerical figures less than the specified units are denoted by “0”; “—” denotes that data is not available. 3. Until FY1998, the data of the Export-Import Bank of Japan (JEXIM) was used. Data in FY1999 is the sum of the data from JEXIM in the first half and that from the International Financial Account of the then-JBIC in the second half. From FY2000 to FY2007, data came from the International Financial Account of the then-JBIC. Data for FY2008 is the sum of the data from the International Financial Account of then-JBIC in the first half and the data from the Account for JBIC operations under the Japan Finance Corporation in the second half. From FY2009 to FY2011, data came from the Account for JBIC operations under the Japan Finance Corporation. Data for FY2012 and after is that of JBIC. 4. Due to the launch of the newly established Special Operations, JBIC started to perform separate accounting procedures for the Ordinary Operations and the Special Operations on October 1, 2016. Data for JBIC operations during the period until the day before October 1, 2016 was recorded in the Ordinary Operations Account. In this annual report, financial data after October 1, 2016 is presented separately in the Ordinary Operations Account and the Special Operations Account. For financial reporting in FY2016, data from the Ordinary Operations Account covers the period from April 1, 2016 to March 31, 2017, while that from the Special Operations Account covers the period from October 1, 2016 to March 31, 2017. In the supplementary document “Appendix 1: Statistics,” which can be found later in this annual report, JBIC’s business data is presented without separating the Ordinary Operations Account and the Special Operations Account. 1. Profile of JBIC 1. Profile ····················································································2 2. History of JBIC ······································································4 3. Top Message ·········································································6 4. Directors, Managing Executive Officers and Corporate Auditors ····························································12 5. Medium-term Business Plan (FY2018–FY2020) ·················14 6. Outline of Operations in FY2019 ······································20 JBIC / Annual Report 2020 1 1. Profile The Purpose of JBIC Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly owned by the Japanese government, which has the objective of contributing to the sound development of Japan and the international economy and society, by conducting financial operations in the following four fields: Promoting the overseas Maintaining and improving development and the international competitiveness securement of resources which of Japanese industries are important for Japan Promoting the overseas business Preventing disruptions to having the purpose of preserving international financial order or taking the global environment, appropriate measures with respect to such as preventing global warming damages caused by such disruptions Profile of JBIC Profile Corporate Slogan 1 1 Profile Corporate Philosophy The objective of JBIC, as set forth in its statutory law, is to “contribute to the sound development of Japan and the international economy and society” by executing a variety of financial functions. To pursue this objective, we have set out the following corporate philosophy, which espouses three core values: “Hands-on Policy,” “Customer-1st Approach,” and “Forward- looking Action.” Positioned at the crossroads of global business opportunities, JBIC is opening new venues to the future for the Japanese and global economy. Pioneering new value by participating at the forefront of overseas project Hands-on development, and by engaging pro- actively in projects from the early Policy stages Customer- Forward- 1st looking Approach Action Offering customers one-of-a-kind Contributing to the sustainable devel- solutions by adopting their perspec- opment of Japan and the world as a tives and integrating their views into whole by deploying highly profes- policy development sional skills, with a view to realizing a secure and affluent future society 2 JBIC / Annual Report 2020 Operational Principles JBIC, as a policy-based financial institution and in accordance with the following principles, conducts speedy and well- focused operations based on policy needs in response to economic and financial situations in Japan and abroad. 1 Supplementing the financial transactions implemented by private-sector financial institutions To effectively perform the functions required for policy-based financing, JBIC shall take account of situations where private-sector financial institutions are placed in their international finance activities and supplement their operations. 2 Ensuring financial soundness and certainty of repayment Pursuant to the JBIC Act, JBIC shall make efforts to maintain the financial soundness of its operations, and when making financial decisions, to conduct adequate screening regarding the outlook for the recovery of funds. 3 Maintaining and improving international creditworthiness and confidence In order to conduct adequate operations and effective overseas funding operations, JBIC shall maintain and improve the international creditworthiness and confidence gained by JBIC over the years. 4 Conducting business operations by drawing on its expertise and initiatives JBIC shall conduct operations by drawing on its own expertise and initiatives on international finance. Profile of JBIC Profile JBIC Code of Conduct Act consistently in the public interest. Contribute to Japan and the international community by pursuing our Mission. Prioritize client satisfaction. Deliberate, decide, and act from the client’s perspective. Accept responsibility as a professional. Perform every task based on your own initiative. 1 Undertake challenges daringly. Create new value without fear of failure. Work quickly and cost-effectively. Enhance your work quality with an eye to efficiency. Focus on teamwork. Share unified objectives with your colleagues to achieve significant successes. 1 Maintain high ethical standards and a law-abiding spirit. Observe our moral code as a JBIC member at all times. Profile History JBIC was established on April 1, 2012 in accordance with the Japan Bank for International Cooperation Act (JBIC Act), which was promulgated and came into effect on May 2, 2011. October 1999 October 2008 April 2012 Japan Bank for Japan Finance