NEXCO EAST has formulated medium-term management plan

Establish a management base in 5 years up to 2010

October 26, 2006
East Nippon Expressway Co., Ltd.

NEXCO EAST (Chiyoda-ku, Tokyo, Chairman: Shigejiro Yagi) has recently formulated a five-year medium-term management plan up to FY2010.

In this plan, these five years are positioned as the "period to establish the management base", and the management policy states "Customer first", "Fair and transparent corporate activities", "Pursuit of endless efficiency", " In order to carry out independent management as a private company from the perspective of "emphasizing the spirit of challenge", we will strive to establish a management base while maintaining an appropriate financial structure based on our own management judgment and responsibility.

NEXCO East Japan Medium-Term Management Plan [PDF: 759KB]

Key points of medium-term management plan

1 Basic policy

Aiming to "establish a management base", by fiscal 2010 we will steadily implement the following initiatives.

  • Introduction of target management system-Introduced from the second half of fiscal 2006, focusing on income/cost targets and management level targets
  • Introducing a new personnel system-from seniority type to results-oriented type phased-in from the first half of 2007
  • Reorganization of the organizational structure: streamlining the head office and building an organizational structure that emphasizes worksite
  • Establish group management-Maximize consolidated corporate value by establishing 13 specialized maintenance companies
  • Establishing IT management-Achieving operational efficiency by optimizing the IT platform company-wide

1 Management goals

■Road management business

  • Fee income 711.9 billion yen (FY 2006) → 765 billion yen (FY 2010)
  • Road asset rent 526.8 billion yen (FY2006) → 561.0 billion yen (FY2010)

■Road construction business

  • Road assets completed ¥608.6 billion (five year total)
  • New opening extension 274km (five years cumulative)

■SAPA Business/New Business

  • 経常利益(連結) 23億円(2006年度) →  55億円(2010年度)

1 Initiatives by business

■Road management business

  • Securing safe and smooth traffic by focusing on measures to strengthen snow and ice, improve pavement functionality, and strengthen seismic strengthening of bridges
  • Develop ETC-based fee services and enhance ETC facilities to improve ETC services
  • Promote more efficient on-site management by reducing total costs, integrated management with a subsidiary specializing in maintenance, etc.
  • Thoroughly work to strengthen unauthorized traffic prevention

■Road construction business

  • 合理的な設計手法の確立など技術開発の推進、資材の直接調達の拡大によりコスト削減と品質の向上を目指す
  • Establish construction business management to speed up business and take incentive subsidy

■SAPA Business/New Business

  • Improve service and improve profitability by introducing convenience stores and unique specialty stores
  • Strengthen sales of regional special products such as agricultural and marine products
  • New construction/renovation of areas such as Makuhari PA (7 locations), renewal of existing buildings (about 10 locations)
  • Enter new business (Web business, card business, hotel business, etc.)
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