Message from the President

Three changes occurring in the future business environment

NEXCO東日本グループは発足して2025年で20年を迎えます。これまでを振り返ると、「民営化によって社会要請に応えていくことが求められてきた20年」だったと言えます。

First, we have pursued improvements to the quality of Expressway services. We have taken a customer-oriented approach, for example by cleaning the restrooms at service areas and parking areas. We have also promoted efficiency measures such as promoting the use of ETC in order to repay the approximately 40 trillion yen in debt that led to privatization. As an organization, we have also been conscious of operating our business with transparency and fairness, and have strengthened the transparency of our business by, for example, making the companies responsible for maintenance and management subsidiaries and filing consolidated financial statements.

We recognize that the business environment going forward will see three major changes that are different from those of the past 20 years.

The first change is an increased responsibility for sustainability. Specifically, it is about how we fulfill our responsibilities to the next generation, who are our future stakeholders. In 2023, the Road Improvement Special Measures Act was amended to allow the toll collection period to be extended up to 2115, with the aim of securing financial resources for large-scale Expressway renewal and repair. Companies will now be required to consider business operations from a long-term perspective, maintain Expressway, reduce their burden on the global environment, and contribute to local communities.

二つ目の変化は、「事業環境が厳しくなること」です。気候変動は深刻化し、災害も激甚化しています。豪雨や豪雪だけでなく、日本各地で山火事も起きるようになりました。また、2025年1月には埼玉県八潮市で道路陥没事故が起きました。インフラの老朽化は想像の域を超えて進んでいます。さらに、南海トラフ地震や首都直下地震などが将来的に起こるとも予想され、大規模震災への備えは欠かせません。人口減少という別の課題も深刻化しています。人口が減ることで自動車の保有台数も免許取得者数も減ります。その結果、交通量が減少し当社グループの収入も影響を受けます。加えて、物価や人件費、金利も上昇局面にあり、企業にとって費用負担は増すばかりです。この厳しい事業環境で持続可能なサービスの提供が求められることになります。

The third and final change is that "new seeds for the future are emerging." Unlike the previous two, this is a bright spot for the future. While the hurdles to overcome in solving global warming and logistics issues are formidable, technologies such as ICT and digital transformation are approaching a level that is sufficient for implementation. Furthermore, new business opportunities can be expected by making full use of autonomous driving, generative AI, robotics, renewable energy, and more.

Although tough changes lie ahead, we believe that we can make better prospects by utilizing new technologies.

Initiatives for sustainability through Expressway

Our Group is embarking on a range of initiatives to further build on the achievements we have made since privatization and to respond to the three major changes I have mentioned so far.

First, we have been carrying out renewal projects since fiscal 2015 with the aim of extending the service life and improving safety of Expressway infrastructure. We have added a new renewal plan for fiscal 2024. We are also working to reduce lifecycle costs by identifying the degree of deterioration of structures in advance and taking appropriate measures.

Regarding earthquake-resistance reinforcement work, we will draw up an earthquake-resistance reinforcement implementation plan in 2024, prioritizing areas with a 26% or higher probability of an earthquake of magnitude 6 or higher occurring, and aim to complete the work by the end of fiscal year 2030.
As a measure to combat congestion, we have begun operating additional lanes near Takasaki SA on Kan-Etsu Expressway. We are also working on measures to combat wrong-way driving, which is an ongoing issue and is likely to increase in the future due to the increasing elderly population, by strengthening awareness campaigns.

カーボンニュートラルの分野では、2025年、道路法が改正され、国の「道路脱炭素化基本方針」に基づき、道路管理者が脱炭素化の推進計画を策定する枠組みが導入されましたが、当社グループでは、これに先駆け昨年度に「カーボンニュートラル推進戦略」を公表しました。
深刻化する気候変動は、災害リスクに直結します。そこで取り組んでいるのが、暫定2車線区間の4車線化です。暫定2車線区間では、事故や災害が起きると一時的に全車両を止めなければいけません。4車線化によって、大雪による立ち往生や大雨によるのり面の崩壊などが発生した際に交通機能を回復しやすくなります。4車線化事業が大雪に適応する事業として、国内で初めて、「サステナビリティ・ファイナンス」（気候変動などの環境問題や社会的課題の解決に向けたプロジェクトを目的とした資金調達）の第三者評価を昨年6月に取得しました。

Responding to an increasingly challenging business environment through DX

We are also focusing on promoting digital transformation to address the social issue of a shortage of workers.

One of these is the "Smart Maintenance Highway (SMH)." This is a project that utilizes the latest technologies, such as ICT, robotics, and AI, to improve productivity in Expressway asset management. For example, with the introduction of an inspection support app, inspection work that was previously done on paper can now be completed on a tablet, from inspection preparation to inputting the results. By continuing to establish and further develop various SMH tools, we aim to improve the efficiency and sophistication of operations, as well as Standard the decision-making process for each task and improve productivity.

We are also mechanizing operations and simplifying paperwork when interacting with contractors. We have also created guidelines to promote "remote presence" throughout the industry, which allows workers to check the situation without visiting the site using wearable cameras and sensors. In Hokkaido, we are working with Isuzu Motors Ltd. to develop technology that uses quasi-zenith satellites to enable marker vehicles to automatically track rotary snowplows, thereby enabling one person to perform tasks that previously required two people. DX on Expressway is a Group-wide initiative, and it is also necessary to cooperate with related companies.

We are also working on unmanned stores at service areas and parking areas. As the first such initiative in Japan, we will open unmanned stores at Tobu Yunomaru Service Area (Out-bound) on the Joshinetsu Expressway in November 2024 and at Hasuda Service Area (In-bound) on Tohoku Expressway in March 2025.
In addition to these digital transformation initiatives, we are also focusing on developing the next generation of talent. In our "Human Resources Development Policy" formulated in fiscal 2023, we have clarified the type of talent, abilities, and skills we are seeking, and are strengthening our human resources development to enable each employee to maximize their abilities and skills, helping them to build their careers.

Preparing for the future

What was previously a pipe dream has become a reality, and we recognize that we are now in the preparation stage to meet expectations as a new Expressway.

One example is "moVision," a vision for next-generation Expressway that will accelerate the realization of an autonomous driving society. As part of this project to support safe driving, we are installing multi-function poles that collect and process roadside information along an 11.5-km stretch of Tohoku Expressway between Kanuma IC and Utsunomiya IC, in order to enhance information on accident vehicles ahead that cannot be detected by the vehicle alone. Furthermore, electric vehicles (EVs) have heavy batteries, weighing about twice as much as non-EVs, which can cause damage to Expressway. If charging while in motion were possible, it would contribute to reducing the weight of EVs and achieving carbon neutrality. Toward this goal, we have applied to a public call for proposals from the New Energy and Industrial Technology Development Organization (NEDO) and have begun technological development together with Kansai Electric Power Co., Inc.

The next five years will be a period for building the ability to survive in this rapidly changing era.

When envisioning the ideal future for our Group, it is important for each employee to have the perspective of how to select what is necessary in a world where we cannot assume constant growth, and how to respond to social issues.

We are currently formulating our next medium-term management plan (FY2026-FY2030). If we view the next five years as a period for building the ability to weather this era of rapid change from both the perspectives of "systems" and "actions," there are three issues we must address.

The first challenge is to "meet expectations for future Expressway."

これからは、耐震補強や4車線化などのハード面だけではなく、ソフト面であるオペレーション能力の向上が問われます。2025年4月に発生したETCシステム障害時の混乱への対処や、パンデミック下でのサービス提供、そして災害時における緊急車両の早期通行の確保など、いかなる状況下でも道路機能を維持できる体制構築にしっかり取り組んでいきます。

Additionally, to combat congestion, we are considering ways to meet customer expectations through operational innovations, such as effectively communicating Expressway information to people using local roads and implementing a system to disperse traffic by varying discount tolls, like Tokyo Wan Aqua-Line Expressway.

Expressway tolls have remained at the same level for 30 years, as costs have remained stable. However, with prices and other factors now on the rise, we recognize the need to seriously consider the future of the toll system in order to ensure the sustainable provision of Expressway services.

The second challenge is to "work towards sustainability."

再生可能エネルギーに関しては、富岡バイオマスガス化発電プラントにおいて、高速道路の維持管理で発生する刈草や剪定枝、間伐材などのバイオマスを利用して発電し、料金所にも電気を供給しています。また、太陽光発電についても、東北道 泉本線料金所跡地にメガソーラーの太陽光パネルを設置していますが、今後は、高速道路の空間を有効に活用した再生可能エネルギー創造に向け、薄くて曲げることも可能な「ペロブスカイト太陽電池」にも注目しています。
EVシフトへの対応としては、EV急速充電器の口数を当社管内で2025年度までに337口（NEXCO3社で1,073口）整備する予定で、これにより高速道路におけるEV急速充電器の空白区間（概ね70km以上の間隔）が解消されます。今後も、国とも調整し、さらに整備を拡大する予定です。

Contributing to the sustainability of local communities is also an important issue. For example, as part of the "NEXCO EAST MaaS" initiative, which uses SAs and PAs as regional hubs, we are collaborating with Obuse Town in Nagano Prefecture to consider creating a "mobility hub" using the Oasis Obuse roadside station, which connects to Obuse PA on the Joshinetsu Expressway. We are also considering encouraging more local residents to make use of commercial facilities at SAs and PAs, such as the Hasuda SA (In-bound) Tohoku Expressway.

The third is to "respond to the seeds that will create the future."

As a group, we are taking on new challenges and contributing to new logistics systems. One example is the establishment of "relay transport hubs," a transport method in which long-distance transport is divided among multiple drivers and drivers are replaced at service areas and parking areas along the way.

Furthermore, we will make effective use of the information and big data held by our Group to alleviate congestion, particularly by providing more accurate traffic information. We also plan to consider disseminating information that will be useful for overall logistics planning and customer travel plans.

Furthermore, we can consider making effective use of existing resources, such as using the road surface and sidewalls to generate solar power across the entire road, or providing renewable energy transmission space within the road space.We will also actively work on new proposals in collaboration with ventures in order to respond to the seeds of the future.

The "Best Way" to evolve into the future

In order for our group to evolve into the future, I believe it is essential to have the ability to observe the actual situation and to keep our antennas high and our interests broad.

I first realized the importance of having the ability to see things from the ground up when I was the deputy mayor of Kyoto City. In 2009, a new strain of influenza spread, and the national government initially issued a policy to close all childcare facilities.

The mayor at the time had a good understanding of the situation on the ground, and he thought, "Many nurses leave their children in daycare centers, so if the daycare centers are closed, they will have no choice but to look after their own children, and this will cause the hospital to cease functioning." When we explained this situation to the national government, they revised the policy to allow for flexibility depending on the situation, and it was approved that the daycare centers would not be closed. This made us realize once again how important it is to properly understand the situation on the ground and make decisions based on that. The strength of our group is that we have a presence on the ground. Everything we need is there on the ground. It is important to avoid armchair theories and to maintain a perspective of whether we are truly helping to solve problems on the ground.

The next step is to "keep your antennae high and have a broad range of interests." For example, it is important to take a broad look at trends in other countries and the efforts of venture companies. With regard to in-motion charging, it is necessary to keep a close eye on examples from other countries, and with regard to measures against snow and ice, the efforts being made in Northern Europe and Canada are also useful references. It is also important to have connections with universities and research institutes and to carry out joint research in academic fields such as civil engineering, information, and the environment.

By spreading our wings and keeping our antennas up in this way, we will gain new knowledge and gain the ability to survive in this era of rapid change.

Our group will continue to provide safe, secure, comfortable, and convenient Expressway, and will pave the way for a new era as a leader in sustainable, future-oriented social infrastructure. Please look forward to our "Best Way" as it evolves into the future.