Japan Finance 18-K Annual report (foreign governments)

Exhibit 4

BALANCE SHEET

JBIC Operations (unaudited)

	March 31, 2011			March 31, 2010			March 31, 2011
	(In millions of yen)			(In millions of yen)			(In millions of U.S. dollars)
Assets:
Cash and due from banks	¥	978,074		¥	455,113		$	11,763
Cash		0			0			0
Due from bank		978,074			455,112			11,763
Securities		76,453			44,280			919
Other securities		76,453			44,280			919
Loans and bills discounted		8,376,794			8,771,342			100,743
Loans on deeds		8,376,794			8,771,342			100,743
Other assets		1,001,457			724,223			12,044
Prepaid expenses		234			225			4
Accrued income		29,379			30,685			353
Derivatives other than for trading-assets		966,988			693,022			11,629
Other		4,855			290			58
Property, plant and equipment		37,664			37,903			453
Buildings		3,488			3,554			42
Land		33,881			33,881			407
Lease assets		58			79			1
Construction in progress		2			90			0
Other		233			296			3
Intangible assets		2,349			2,320			29
Software		2,116			2,025			25
Lease assets		218			259			4
Other		14			34			0
Customers’ liabilities for acceptances and guarantees		2,443,266			1,977,071			29,384
Allowance for loan losses		(134,417	)		(145,354	)		(1,617	)
Total assets	¥	12,781,643		¥	11,866,899		$	153,718

1

	March 31, 2011			March 31, 2010			March 31, 2011
	(In millions of yen)			(In millions of yen)			(In millions of U.S. dollars)
Liabilities:
Borrowed money	¥	5,502,495		¥	5,267,246		$	66,176
Borrowings		5,502,495			5,267,246			66,176
Bonds payable		2,703,551			2,598,954			32,514
Other liabilities		71,181			56,394			856
Accrued expenses		29,911			32,809			360
Unearned revenue		38,881			21,534			468
Derivatives other than for trading-liabilities		1,899			1,598			23
Lease obligations		290			356			3
Other		198			94			2
Provision for bonuses		465			511			6
Provision for directors’ bonuses		6			6			0
Provision for retirement benefits		12,135			11,872			146
Provision for directors’ retirement benefits		28			17			0
Acceptances and guarantees		2,443,266			1,977,071			29,384
Total liabilities	¥	10,733,129		¥	9,912,072		$	129,082
Net Assets:
Capital Stock	¥	1,091,000		¥	1,055,500		$	13,121
Retained earnings		801,398			759,218			9,638
Legal retained earnings		742,615			726,011			8,931
Other retained earnings		58,783			33,207			707
Retained earnings brought forward		58,783			33,207			707
Total shareholders’ equity		1,892,398			1,814,718			22,759
Valuation and difference on available for sale securities		(1,665	)		(687	)		(21	)
Deferred gains or losses on hedges		157,781			140,795			1,898
Valuation and translation adjustments		156,115			140,107			1,877
Total net assets	¥	2,048,513		¥	1,954,826		$	24,636
Total liabilities and net assets	¥	12,781,643		¥	11,866,899		$	153,718

2

STATEMENTS OF OPERATIONS

JBIC Operations (unaudited)

	March 31, 2011		March 31, 2010		March 31, 2011
	(In millions of yen)		(In millions of yen)		(In millions of U.S. dollars)
Ordinary income:	¥	197,217	¥	191,178	$	2,372
Interest income		178,661		179,396		2,148
Interest on loans and discounts		122,329		143,212		1,471
Interest and dividends on securities		48		—		1
Interest on deposit with banks		1,199		547		14
Interest on interest swaps		55,061		35,617		662
Other interest income		22		19		0
Fees and Commissions		13,183		11,144		159
Other fees and commissions		13,183		11,144		159
Other ordinary income		74		33		1
Other		74		33		1
Other income		5,298		604		64
Other		5,298		604		64
Ordinary expenses:		147,576		163,355		1,775
Interest expenses		118,777		122,322		1,428
Interest on borrowings and rediscounts		55,696		58,349		670
Interest on bonds		63,081		63,973		758
Fees and commissions payments		1,332		1,107		16
Other fees and commissions		1,332		1,107		16
Other ordinary expenses		3,370		4,679		41
Loss on foreign exchange transactions		2,501		3,416		30
Amortization of bond issuance cost		651		854		8
Expenses on derivatives other than for trading or hedging		8		68		0
Other		209		340		3
General and administrative expenses		15,861		16,392		191
Other expenses		8,233		18,854		99
Provision of allowance for loan losses		8,232		18,853		99
Other		0		0		0
Ordinary profit		49,641		27,823		597
Extraordinary income		9,142		5,388		110
Gain on disposal of noncurrent assets		0		0		0
Recoveries of written-off claims		8,715		5,387		105
Other		425		—		5
Extraordinary losses		0		3		0
Loss on disposal of noncurrent assets		0		3		0
Net income	¥	58,783	¥	33,207	$	707

3

STATEMENTS OF CASH FLOWS

JBIC Operations (unaudited)

	March 31, 2011			March 31, 2010			March 31, 2011
	(In millions of yen)			(In millions of yen)			(In millions of U.S. dollars)
Cash flow from operating activities
Net income	¥	58,783		¥	33,207		$	707
Depreciation and amortization		1,586			1,775			19
Increase (decrease) in allowance for loan losses		(10,936	)		18,853			(132	)
Decrease in provision for bonuses		(45	)		(70	)		(1	)
Decrease in provision for directors’ bonuses		(0	)		(1	)		(0	)
Increase in provision for retirement benefits		263			260			3
Increase in provision for directors’ retirement benefits		11			11			0
Gain on fund management		(178,661	)		(179,396	)		(2,148	)
Financing expenses		118,777			122,322			1,428
Gain related to securities		(3,372	)		(215	)		(40	)
Foreign exchange losses		9,744			5,650			117
Loss (gain) on disposal of noncurrent assets		(0	)		3			(0	)
Net decrease (increase) in loans and bills discounted		394,547			(1,528,273	)		4,745
Net increase in borrowed money		235,249			1,247,399			2,829
Net decrease in deposit		(290,000	)		(210,000	)		(3,488	)
Increase in straight bonds-issuance and redemption		103,824			504,973			1,249
Proceeds from fund management		179,234			193,180			2,156
Payments for finance		(120,913	)		(116,979	)		(1,454	)
Other		(243,009	)		(73,150	)		(2,922	)
Subtotal		255,083			19,550			3,068
Net cash provided by operating activities		255,083			19,550			3,068
Cash flow from investing activities
Purchase of securities		(45,823	)		(13,634	)		(551	)
Proceeds from sales of securities		16,027			38			193
Purchase of property, plant and equipment		(217	)		(164	)		(3	)
Proceeds from sales of property, plant and equipment		1			1			0
Purchase of intangible assets		(1,105	)		(706	)		(13	)
Net cash used in investing activities		(31,116	)		(14,464	)		(374	)
Cash flow from financing activities
Proceeds from issuance of common stock		35,500			20,000			427
Repayments of lease obligations		(157	)		(121	)		(2	)
Payment to national treasury		(16,603	)		(13,419	)		(200	)
Net cash provided by financing activities		18,739			6,459			225
Effect of exchange rate change on cash and cash equivalents		(9,744	)		(5,650	)		(117	)
Net increase in cash and cash equivalents		232,961			5,894			2,802
Cash and cash equivalents at the beginning of period		245,113			239,218			2,948
Cash and cash equivalents at the end of period	¥	478,074		¥	245,113		$	5,750

4

BALANCE SHEET

Financial Operations for Facilitating Realignment of United States Forces in Japan (unaudited)

	March 31, 2011		March 31, 2011
	(In millions of yen)		(In millions of U.S. dollars)
Assets:
Cash and due from banks	¥	359	$	4
Due from bank		359		4
Other assets		0		0
Other		0		0
Property, plant and equipment		0		0
Other		0		0
Total assets	¥	360	$	4

5

	March 31, 2011		March 31, 2011
	(In millions of yen)		(In millions of U.S. dollars)
Liabilities:
Other liabilities	¥	1	$	0
Accrued expenses		1		0
Provision for bonuses		4		0
Provision for directors’ bonuses		0		0
Provision for retirement benefits		113		1
Provision for directors’ retirement benefits		0		0
Total liabilities	¥	119	$	1
Net Assets:
Retained earnings	¥	241	$	3
Other retained earnings		241		3
Retained earnings brought forward		241		3
Total shareholders’ equity		241		3
Total net assets	¥	241	$	3
Total liabilities and net assets	¥	360	$	4

6

STATEMENTS OF OPERATIONS

Financial Operations for Facilitating Realignment of United States Forces in Japan (unaudited)

	March 31, 2011		March 31, 2011
	(In millions of yen)		(In millions of U.S. dollars)
Ordinary income:	¥	411	$	5
Receipts from the national budget		411		4
Receipts from general account of the national budget		411		4
Other income		0		0
Other		0		0
Ordinary expenses:		170		2
Fees and commissions payments		22		0
Other fees and commissions		22		0
General and administrative expenses		147		2
Ordinary profit		241		3
Net income	¥	241	$	3

7

STATEMENTS OF CASH FLOWS

Financial Operations for Facilitating Realignment of United States Forces in Japan (unaudited)

	March 31, 2011			March 31, 2011
	(In millions of yen)			(In millions of U.S. dollars)
Cash flow from operating activities
Net income	¥	241		$	3
Depreciation and amortization		0			0
Increase (decrease) in provision for bonuses		4			0
Increase (decrease) in provision for directors’ bonuses		0			0
Increase in provision for retirement benefits		113			1
Increase in provision for directors’ retirement benefits		0			0
Other		1			0
Subtotal		360			4
Net cash provided by operating activities		360			4
Cash flow from investing activities
Purchase of property, plant and equipment		(0	)		(0	)
Net cash used in investing activities		(0	)		(0	)
Cash flow from financing activities
Proceeds from issuance of common stock		—			—
Repayments of lease obligations		—			—
Payment to national treasury		—			—
Net cash provided by (used in) financing activities		—			—
Effect of exchange rate change on cash and cash equivalents		—			—
Net increase in cash and cash equivalents		359			4
Cash and cash equivalents at the beginning of period		—			—
Cash and cash equivalents at the end of period	¥	359		$	4

8