NEXCO East Annual Report 2020 We are connected to communities CONTENTS by connecting communities. Business Areas of NEXCO East ………………………………………………………………………… 3 Mission Statement ………………………………………………………………………………………… 4 Company History and Profile …………………………………………………………………………… 5 Message from the President …………………………………………………………………………… 9 2025 Long-Term Vision and Mid-Term Management Plan ……………………………………… 11 NEXCO East Group is engaged in the management and NEXCO East Group’s Initiatives and Contributions to SDGs ………………………………… 15 construction of expressways, operation of rest areas, Feature Story 1: Response to Natural Disasters ………………………………………………… 17 and other highway-related businesses in Eastern Japan. Feature Story 2: Evolution of Rest Areas -Pasar Hasuda, one of the largest rest areas in Eastern Japan- …………………………… 19 To achieve a sustainable society that extends beyond Feature Story 3: Commencement of Operation at NEXCO-East Technology Center for Development & Education ……… 21 the boundary of regions, countries, and generations, Expressway Operation Business: NEXCO East Group will strive to create value in Striving for Sustainable“Best Ways” ………………………………………………………………… 23 Rest Area Business: “connecting” and will continue to grow as a company Providing More Convenient and Comfortable Service ………………………………………… 27 that contributes to all stakeholders. Expressway Construction Business: Building the Network and Further Enhancing Functions ……………………………………… 31 Technology Development and Overseas Business: Contributing to Society with“Evolved Technology” …………………………………………… 35 For Our Society and Employees: Fulfilling Our Social Responsibility ……………………… 41 Company Overview / Board Members / Organization Chart / Financial Statements ……………………………………………………………………………………… 45 We would like to extend our deepest gratitude to medical professionals and all other essential workers for their work and effort during the coronavirus outbreak, and we sincerely hope that it will be resolved soon. All businesses of NEXCO East Group contribute to the following SDGs: ［Policy for compiling NEXCO East Annual Report is published to inform all stakeholders of NEXCO this report］ East Group’s expressway business and its efforts toward the development NEXCO East supports the of sustainable society through its expressway business. The entire report, as United Nations Global well as the CSR book, can be downloaded from our corporate website. Compact and its ten principles ［Scope of reporting］ NEXCO East and its 28 group companies. in the areas of human rights, labour, environment, and anti- NEXCO East Group supports the Sustainable Development Goals (SDGs) and ［Reporting period］ From April 1, 2019, to March 31, 2020 (Some activities outside of this period corruption. strives to achieve global sustainable development by promoting the resolution are also included.) of social issues through our expressway business. 1 E-NEXCO Annual Report 2020 E-NEXCO Annual Report 2020 2 Business Areas of NEXCO East Mission Statement Group Management Principles East Japan NEXCO East Group supports the development of local communities and improves their quality of Central Japan life, as well as contributes to the revitalization of the entire Japanese economy by maximizing the benefits of expressways. Nayoro Shibetsu-Kenbuchi Development of local communities E5A SASSON EXPWY. West Japan Pippu Fukagawa-nishi Kitami-nishi Benefits of Revitalization of E5A SHIRIBESHI EXPWY. Fukagawa Rikubetsu-Shotoshibetsu expressways Japan’s economy Improvement of quality of life Otaru Ashoro E5 DO-O EXPWY. Sapporo Akan Yoichi Honbetsu Kushiro-nishi Otaru Honbetsu Obihiro Chitose-Eniwa Group Management Vision Kuromatsunai Numanohata-nishi Tomakomai-higashi E38 DOTO EXPWY. Local Onumakoen Nanae Customers Communities NEXCO East A company A locally rooted company that that satisfies In service contributes its customers. Under construction to local E4A AOMORI EXPWY. development. Other Oragnization Shareholders & In service Aomori Investors Aomori-higashi Under construction The Environment Aomori Shimoda-Momoishi NEXCO East Group will continue A company that meets Interchange An environmentally ’ Hachinohe its stakeholders Hachinohe to grow as a company that friendly company. expectations with Kosaka E4A HACHINOHE EXPWY. Interchange (Under construction) Group Odate-kita clear management Noshiro-Minami E46 AKITA EXPWY. creates value in“connecting” and Ashiro Junction Management responsibility. E46 KAMAISHI EXPWY. contributes to all stakeholders in E7 NIHONKAI TOHOKU EXPWY. Junction (Under construction) Vision * Names of all of the interchanges and junctions order to realize a thriving society Kawabe under construction are temporary (as of July 1, 2020.) Iwaki - Creating value in E4 TOHOKU EXPWY. beyond the boundary of regions, Hanamaki Towa Global Honjo Tono Yokote E48 “connecting-Local Kitakami YAMAGATA EXPWY. countries, and generations. Community Employees Communities” - Yuza-Chokai Yuzawa A company that A company where E7 NIHONKAI TOHOKU EXPWY. Sakata Port contributes proactively each member feels Tsuruoka to the needs of a global valued. Atsumi-Onsen Yudonosan Obanazawa community. Gassan Higashine Tomiya Rifu-naka Asahi-Mahoroba Yamagata E13 TOHOKU-CHUO EXPWY. Rifu Business Murata Partners E7 NIHONKAI TOHOKU EXPWY. Arakawa-Tainai People Yonezawa-kita Koori Sound, fair, Niigata-chuo A company that Fukushima-Ozaso C3 TOKYO-GAIKAN EXPWY. transparent, and Fukushima people can trust. E17 KAN-ETSU EXPWY. honest business E49 BAN-ETSU EXPWY. Nagaoka Koriyama relationships. E8 HOKURIKU EXPWY. E6 JOBAN EXPWY. E51 HIGASHI-KANTO EXPWY. Joetsu E50 KITA-KANTO EXPWY. Tsukuba Iwaki Kuki- Shiraoka Group Management Policies Asahi E18 JOSHIN-ETSU EXPWY. Itako Tsurugashima E19 NAGANO EXPWY. C4 KEN-O EXPWY. Taiei E65 Koshoku Tochigi-Tsuga Misato SHIN-KUKO EXPWY. ・NEXCO East Group prioritizes its customers and improves their safety, security, comfort, and Kawaguchi Narita Takasaki Ibarakimachi Saku-Komoro Iwafune Tomobe Hitachinaka Oizumi Azumino Nerima Shin- convenience while driving. Fujioka Hokota Kuko Shinozaki Matsuo-Yokoshiba Chuo Miyanogi Yachiho-Heights E83 DAISAN-KEIHIN Akiruno Koya ・NEXCO East Group employs technology and expertise to contribute to society based on fair and Tamagawa Chiba-higashi E14 KEIYO EXPWY. Ukishima E83 transparent business activities, as well as provides accurate corporate information. YOKOHAMA SHINDO Togane Totsuka ・NEXCO East Group improves customer service and corporate value along with healthy business Kisarazu Kamariya E82 CHIBA-TOGANE EXPWY. Namiki Sakae Kisarazu- management by optimizing the use of business resources, while endlessly pursuing efficiency. Fujisawa Kisarazu- minami minami E14 TATEYAMA EXPWY. ・NEXCO East Group values every employee’s efforts and achievements as well as their determination E16 YOKOHAMA-YOKOSUKA EXPWY. Mabori- Kaigan to succeed. E14 FUTTSU-TATEYAMA EXPWY. CA TOKYO-WAN-AQUA-LINE EXPWY. Tomiura ・NEXCO East Group promotes CSR management that contributes to various stakeholders such as customers, local and global communities, people, the environment, shareholders and investors, business partners, and employees. 3 E-NEXCO Annual Report 2020 E-NEXCO Annual Report 2020 4 Company History The Electronic Toll Collection A commercial facility called “Pasar Great East Japan Earthquake took place A local subsidiary, E-NEXCO (ETC) system is implemented. Makuhari” is opened as its flagship (severely damaged JOBAN Expressway.) India Private Limited, is brand. Although NEXCO East was founded in 2005, it has 60 established in India. years of history, including the time of its predecessor, Japan Highway Public Corporation. We continue to support Japan’s expressways by applying expertise we have gained over half a century. The entire route of the KAN-ETSU Expressway is opened. 2019 2018 2015 2017 TOKYO-WAN-AQUA-LINE is opened. 2011 2009 2010 2008 “NEXCO East” is A section between Ichinoe and Funabashi on KEIYO selected as its Expressway is opened. brand name. 2007 It becomes Japan’s first motorway in the following Customer Relations year. 2006 Center is opened. 2005 A section between Misato-Minami IC and Koya 1999 Japan Highway Junction (JCT) on TOKYO-GAIKAN Expressway is Public Corporation opened. 1997 2001 is privatized, and East Nippon Expressway Company Limited is 1988 established. 1985 The entire route of HOKURIKU 1987 Expressway is opened. 1971 The entire route of TOHOKU Expressway is opened. A liaison office is established in India. The entire route of JOBAN Expressway is opened. 1960 The Expressway Renewal Project is launched. A section between Sakai-Koga and Tsukuba-chuo 1956 ICs on KEN-O Expressway is opened, connecting the TOMEI and HIGASHI-KANTO Expressways. Japan Highway Public Corporation is founded. The first themed parking area, “Yorii Le Petit Prince” is opened. The first expressways in Hokkaido are opened (between Kita-Hiroshima and Chitose Interchanges (ICs) on DO-O Expressway and between Otaru and Sapporo-Nishi ICs on SASSON Expressway.) The entire route of JOSHIN-ETSU Expressway is opened. 5 E-NEXCO Annual Report 2020 E-NEXCO Annual Report 2020 6 Company Profile NEXCO East Group is engaged in the management and construction of expressways, operation of rest areas, as well as other expressway-related businesses in Eastern Japan. Major Indexes Expressway Business Traffic Volume of Expressways (unit: 10,000 vehicles/day) SMART IC 289 295 295 Management Construction Length of Roads in Service Interchanges Smart Interchanges 2017 2018 2019 （Fiscal Year） 3,943 km 444