East Nippon Expressway Company Limited (E04370) Stock Price

East Japan Expressway Company manages and operates expressways throughout the East Japan region, from Hokkaido to Nagano Prefecture. The company has entered into an agreement with the Japan Expressway Holding and Debt Repayment Agency, a government-affiliated organization, and handles management operations including construction, reconstruction, maintenance, repair, and disaster recovery of expressways. The company also exercises certain authority on behalf of the expressway road administrator, providing comprehensive support for expressway infrastructure in the East Japan area.

The company's primary revenue source is toll fees collected from expressway users. Additional important revenue sources include commercial facility operations at roadside rest areas and contracted construction projects from national and local governments. The company operates 24 subsidiaries and 7 affiliated companies, delegating toll collection, road maintenance, and repair operations to these related companies to achieve efficient operations.

Business operations are organized into four divisions: expressway operations, contracted operations, roadside rest area operations, and other operations. The expressway operations division handles toll collection and traffic management, while the contracted operations division undertakes road construction projects for national and local governments. The roadside rest area operations division manages 329 service areas and parking areas. The other operations division includes card services, overseas business, and parking lot operations. By collaborating with specialized affiliated companies in each field, the company supports safe and comfortable operations of the East Japan expressway network.

East Japan Expressway Company has positioned the five-year period through fiscal year 2025 as a transformative period for achieving the SDGs and building a new future society, and is advancing its medium-term management plan. The company aims to grow as an enterprise that creates "connectivity" value and contributes to all stakeholders, operating under six fundamental policies. For fiscal year 2025, the company projects that expressway traffic volume, toll revenue, and roadside rest area sales will remain at prior-year levels.

The company's priority investment areas are concentrated on aging infrastructure maintenance and disaster prevention. It is actively promoting the expressway renewal project, four-lane expansion, and rest facility renovations, with particular focus on safe and reliable development of the Metropolitan Ring Expressway and similar routes. In response to the 2024 logistics problem, the company is implementing concrete measures to secure rest and break opportunities for truck drivers at service areas and parking areas, including expanded parking spaces and reserved parking space facilities.

In new market development, initiatives toward realizing autonomous driving society are noteworthy. The company is advancing key projects to realize "the next-level expressway vision for accelerating autonomous driving society," aiming to support safe and smooth traffic in mixed environments where autonomous and non-autonomous vehicles coexist. The company is also introducing new service formats, including opening unmanned retail stores at service areas to reduce staffing needs.

In technological innovation efforts, the company is building a system to collect real-time road information on accidents and fallen objects on expressways through multi-function poles equipped with visible light and far-infrared cameras. The company is also developing a new information-sharing app usable across all expressways in its service area, aiming to realize advanced mobility services utilizing cutting-edge technologies such as ICT, AI, and robotics. The company is simultaneously promoting operational efficiency and work style reform through initiatives such as remote construction site supervision and the adoption of construction smoothing guidelines.