Annual Report 2015 This report uses FSC-certied paper that contains wood from well-managed forests. The report was printed in Japan using soy ink, using a waterless printing process to prevent the emission of hazardous liquids. Issued in August 2015 Central Nippon Expressway Company Limited 2-18-19, Nishiki, Naka-ku, Nagoya, Aichi Prefecture 460-0003, Japan Telephone: +81-(0)52-222-1348 Annual Report http://www.c-nexco.co.jp (Japanese) 2015 http://global.c-nexco.co.jp (English) Inquiry: [email protected] “Providing Delight to People and to the World with Our Expressway” Contents Introduction Corporate Overview ...................................................... 3 Our Distinct Features .................................................... 5 Topics Opening of the Shin Tomei Expressway ......................... 7 Actions for Further Safety ............................................. 9 Construction Bridge .......................................................................... 11 Tunnel .......................................................................... 12 Earthwork ..................................................................... 13 Pavement ..................................................................... 14 Operation & Maintenance Toll Collection ............................................................... 15 Traffic Control ............................................................... 16 Road Maintenance and Asset Management ................. 17 Business Development Rest Area Management ................................................ 19 International Business ................................................... 21 Products and Services ................................................... 23 Corporate Social Responsibility CSR Management ........................................................ 25 Financial Statements Consolidated Balance Sheet/Statement of Income ......... 27 Appendix Business Framework ..................................................... 28 Business Area ............................................................... 29 Front Cover Photo : “Kisei” by courtesy of Teruaki Yamada Contents Page Photo : “Seijuku no Mikan no Sato” by courtesy of Akihiko Kato Introduction Corporate Overview Corporate Profile Company Name Central Nippon Expressway Company Limited Business Area October 1, 2005 Established ( by privatization of Japan Highway Public Corporation (JH), Legend which was established in 1956) In Operation NEXCO-East Head Office Nagoya, Japan Under Construction or Feasibility Study NEXCO-Central President & CEO Yoshihito Miyaike Head Ofce Kanazawa 2,126* – Non-consolidated Branches Employees Branch 9,763* – Consolidated Hokuriku Expressway Capital 65 billion JPY (542 million USD) NEXCO-West Tokai-Hokuriku Expressway Exchange rate: 120JPY = 1USD *As of April 2015 Tokai Ring Road Ken-O Expressway Meishin Expressway Business Data In Operation 2,007km* Tokyo Gaikan Expressway Maizuru-Wakasa Expressway Hachioji Under Construction 265km* Branch Daily Traffic Volume 1.87 million Tokyo Toll Revenue 634 billion JPY (5.28 billion USD) Branch Nagoya Ring Road No.2 Number1348 of Rest Areas 177* Shin Meishin Expressway Retail Sales of Rest Areas 182 billion JPY (1.52 billion USD) Kyoto Head Ofce As of FY 2014 & Nagoya Branch *As of July 2015 Osaka Financial Highlights Chubu Odan Expressway Chuo Expressway Higashi-Meihan Expressway Revenues Operating Income Ise Wangan Expressway Shin Tomei Expressway Ise Expressway Toll Revenue Expressway operations Tomei Expressway (Billions JPY) Revenues from Rest Area operations and other business (Billions JPY) Rest area operations and other businesses Kisei Expressway 1,000 8 6 2 4 As of July 2015 750 681 4 47 6 6 6 552 564 Organization Chart Shareholders’ Meeting 53 500 55 0 -2 Audit & Supervisory Board -4 634 Audit & Supervisory Board Members Board of Directors 250 497 511 -4 Chairman President & CEO 0 -8 Internal Auditing Department Safety Strategy and Management Department 2012 2013 2014 2012 2013 2014 (Fiscal year) (Fiscal year) General Affairs Headquarters Engineering/Construction Headquarters NEXCO-Central Group General Affairs Department Environment/Engineering Strategy Department Subsidiary companies NEXCO-Central owns more than 50% of issued shares Total 25 Rest Area Management 4 Accounting and Finance Department Engineering Management Department Toll Collection 2 Patrol 2 Human Resources Department Structural Engineering/Advisory Department Road Engineering, Maintenance and Inspection 2 Contract Evaluation Department Construction Strategy Department Road Repair, Maintenance and Cleaning 9 Staffing Service 1 Corporate Strategy Headquarters Maintenance Strategy Headquaters Product Development and Consulting Service 1 Investment 1 Corporate Strategy Department Toll Collection System Administration Center Vehicle Maintenance and Repair 1 Regional Development 1 NEXCO-Central Customer Service Center Business Development Headquarters Tokyo Branch Tokyo Nagoya Branch Kanazawa Branch Road Operation 1 Hachioji Branch Public Relations Department Service Area Business Department Affiliated companies NEXCO-Central holds sufficient voting shares Total 13 6 Maintenance/Customer Service Centers 6 Construction Ofces 4 Maintenance/Customer Service Centers 10 Maintenance/Customer Service Centers 5 Construction Ofces 4 Maintenance/Customer Service Centers Truck Terminal Operation 1 Information Solutions Department Business Entrepreneurship Department IT Solutions 1 Engineering R&D 1 International Business Department Insurance Services 1 Tolling System Maintenance 1 International Business 1 Road Engineering, Maintenance and Inspection 1 Road Repair, Maintenance and Cleaning 6 As of July 2015 As of July 2015 3 4 Introduction Our Distinct Features Track Record for more than a Half-Century The Route of the Shin Tomei Expressway <With the former Japan Highway Public Corporation Through our long history, we have obtained <Our expressway network including the Tomei and produce more than 50% of Japan’s total GDP. included, for more than 50 years, we have been various skills and expertise. the Meishin Expressway, the most important artery We perform our best practices to contribute to engaged in expressway business:design, construc- with the heaviest traffic volume in Japan, connects Japan’s economic activities by ensuring reliability tion, maintenance, management and inspection. three major metropolitan cities where all together and safety of our expressway network. Our History Arteries Connecting Three Metropolitan Cities 1956 Japan Highway Public Corporation (JH) established. Tokyo 1963 Japan’s first expressway – The Meishin Expressway – opens. Ebina-Minami JCT Yokohama 1969 The Tomei Expressway opens. Gotenba JCT Isehara JCT 1973 The total length of JH’s expressways exceeds Nagoya 1,000 kilometers. Shin-Shimizu JCT Toyota JCT Opening of the Meishin Expressway Yokkaichi JCT 1982 The total length of JH’s expressways exceeds Kyoto Shimizu JCT 3,000 kilometers. Hamamatsu-Inasa JCT 1996 The total length of JH’s expressways exceeds Otsu JCT Kameyama-Nishi JCT Mikkabi JCT 6,000 kilometers. Osaka The Shin Tomei and the Shin Meishin Expressway (Including sections under construction) 2001 Electronic Toll Collection (ETC) system introduced. The Tomei and the Meishin Expressway 2005 JH split into three companies. NEXCO-Central established. 2006 The total length of the three companies’ expressways Opening of the Tomei Expressway exceeds 7,000 kilometers. 2008 First overseas office established in Hanoi, Vietnam. Developing and Adopting the Leading-Edge Technologies 2012 162 kilometer of the Shin Tomei Expressway opens. <Our expressway network covers widely different To provide trustworthy network, we have kept de- environments caused by geographical aspects, veloping and adopting the world-latest technologies climate, population density and traffic volume. in construction, operation and maintenance fields. The Total Length of JH’s Expressways Exceeds 3,000 kilometers Urban Area Mountainous Area Opening of the Shin Tomei Expressway 5 6 Topics Opening of the Shin Tomei Expressway —the dawn of next-generation expressway— Shin Meishin Expressway Shin Tomei Expressway Tokyo Automatic Incident Detection and Information Provision System <Road obstacles and other incidents are automatically detected by real-time road monitoring equipments and drivers are informed via on-board ITS units and variable message signboards. Opened on April 14,2012 CCTV (Detection) ITS Spot (DSRC) On-board Kyoto ITS Units Nagoya Accident Osaka Accident ahead. The Features of the Shin Tomei Expressway Drive Carefully. Caution Accident Tomei Shin Tomei Tomei Shin Tomei < The Shin Tomei Expressway is designed with gentler curves VMSs and slopes than the existing Tomei Expressway, making it R=300m (min) R=3,000m (min) 5% (max) 2% (max) a safer, more comfortable, * Gotenba Junction—Hamamatsu-Inasa Junction CCTV Image and environmentally-friendly Processing expressway than ever. Major Effects of the Shin Tomei Expressway Data Processing Server Dispersion of Trafc Reduction of Congestion < The Shin Tomei Expressway allows us The Tomei (The number of The Tomei (Thousand vehicles/day) The Shin Tomei trafc congestion) The Shin Tomei to provide more reliable expressway 100 IBTTA Award 13% UP services in case of emergency such as 83.0 90% <The Shin Tomei Expressway Project has been highly 80 Reduction natural disasters by functioning as an recognized internationally. In 2014, the project won 227 alternative, evacuation