Medium-term management plan (FY2017-FY2020)

Overview-Five basic policies and priority plans-

    [1] Providing safe, secure, comfortable and convenient Expressway services
  • Providing Expressway services that customers can use with peace of mind, giving top priority to safety
    • Promotion of Expressway renewal project
    • Realization of SMH (Smart Maintenance Highway) and ensuring asset soundness
    • Strengthening disaster prevention and mitigation
    • Reduction of traffic accidents
    • Suppression of vehicle restriction order violations
    • Sophistication of measures against snow and ice
  • Steady promotion of Expressway network development and enhancement of functions for intelligent use of Expressway
  • Develop comfortable and convenient Expressway services that meet customer needs
    • Secure smooth traffic
    • Enhanced information provision such as route selection (utilization of ETC2.0 data)
    • Efficient and convenient rate service development
    • Planned implementation of new construction / expansion / renovation / renewal of commercial facilities
    • Maintenance / strengthening of gas station sales system, maintenance of quick chargers
  • Safety is our top priority, quality, cost and productivity are pursued, and Expressway are easy to maintain and manage.
    [2] Contribution to local communities and response to inbound and environmental conservation
  • Contribution to local communities
    • Support for tourism promotion and Great East Japan Earthquake reconstruction
    • Expressway maintenance in cooperation with the community
    • Technical support for local governments
  • Inbound, Tokyo 2020 Olympics and Paralympics correspondence
  • Promotion of environmental conservation
    [3] Promotion of technological development that contributes to society
  • Technology development (utilization of ICT, AI, IoT, big data, etc.) that leads to sophistication and labor saving of work with safety as the highest priority
    • Technology development for realization of SMH, road safety, and sophistication of snow and ice measures
    • Utilization of new vehicle technology
      (Considering the use of autonomous driving technology)
    • Promote technological development by developing and utilizing NEXCO EAST Technical Center
    [4] Strengthening profitability of related businesses
  • Improve customer service and corporate value by optimally utilizing management resources, and strengthen profitability by further improving efficiency
    ≪SA / PA business≫
    • Implementation of measures to improve the attractiveness of SA / PA
    • Efficient operation of commercial facilities

    ≪Other business≫
    • Strengthen the profitability of the business we are developing
    • Utilization of unused land
    • Creation of new business
    • Promotion of overseas business
    [5] Strengthening management power of the entire group
  • Pursuit of advanced group management
  • Internal control, securing and training human resources, improving productivity, etc.
    • Further strengthen and enhance the internal control system
    • Securing and training human resources and promoting an environment that allows you to experience “motivation” and “satisfaction”
    • Improving on-site response capabilities by developing and utilizing NEXCO EAST Technical Center
    • E-Shokuba making campaign (promotion of healthy management), promotion of active participation by women
    • Promotion of business optimization and productivity improvement
    • Improve corporate brand

Financial plan

Expressway business

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* 1 Plan value (excluding tax) of the agreement signed (changed) with the Expressway Organization on March 26, 2019

[Profit and loss plan]

Based on the agreement with the Expressway Agency, we will steadily pay the Expressway fee revenues from customers, pay the road asset rent to repay the debt held by the Expressway Agency, and manage the required Expressway.

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* 2 Road assets to be handed over to the Expressway Mechanism after completion

【investment plan】

Institutional assets*2 are based on an agreement with the Expressway Agency, such as the outer ring road (Misato Minami-Takaya JCT, Oizumi JCT-Chuo JCT), Yokohama Loop South Line (Kamatani JCT-Totsuka), Joban Expressway 4 lane project, etc. We plan to invest approximately 2.2 trillion yen in the new construction and renovation business and repair business such as Expressway renewal project.

Regarding corporate assets, we plan to invest approximately 120 billion yen by installing toll collection machines, ETC equipment, and renewing aging.

Related business

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[Profit and loss plan]

By optimizing the use of management resources, we will enhance customer service and corporate value, while further enhancing efficiency to enhance profitability, and aim for operating income of 2.9 billion yen in the final year (FY2020).

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【investment plan】

We plan to invest approximately 44 billion yen in related business assets such as new construction/expansion/renovation/renewal of commercial facilities, as well as business common assets such as NEXCO EAST Technical Center maintenance and system replacement.

"Outline of the Medium-Term Management Plan, Major Initiatives"