NEWS RELEASE
23-D-1810

March 22, 2024
Japan Credit Rating Agency, Ltd. (JCR) announces the following Social Bond Evaluation Results.

Central Nippon Expressway Co., Ltd.
105th Unsecured Bonds(Social Bond)
Assignment
Overall
Evaluation

Socialness
Evaluation（Use of Proceeds）

Management,
Operation andTransparency Evaluation

Social 1

s1

m1

IssuerType

Central Nippon Expressway Co., Ltd.
Central Nippon Expressway Co., Ltd. 105th
Corporate Bond (Social Bond)
Straight Corporate Bond

Issue AmountJPY 120 billion

Interest Rate

0.597% (per annum)

Issue Date
Redemption
Date
Method of
Repayment

March 28, 2024

Use of Proceeds

Projects that localize disasters and bring benefits
to users

Subject

March 28, 2029
Bullet Redemption

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Overview of Evaluation▶▶▶1. Outline of Central Nippon Expressway Co., Ltd.

Central Nippon Expressway Co., Ltd. ﴾NEXCO CENTRAL﴿ is a special company wholly owned by thegovernment. The business base of the NEXCO CENTRAL is based on the national route network ownedby the Japan Highway Public Corporation, which extends from the Tokyo metropolitan area to the
Chubu and Kinki regions, including the main routes such as the Tomei Expressway, Chuo Expressway,
and Shin-Tomei Expressway. The core business is the expressway business, which involves theconstruction, management, and operation of expressways, but also related businesses such as the
SA/PA business, which involves the management and operation of service areas ﴾SA﴿ and parking areas
﴾PA﴿. The company is based on group management, and as of the end of December 2023, it has 23
subsidiaries and 9 affiliated companies.

▶▶▶2. NEXCO CENTRAL’s ESG Management and Sustainability Initiatives

NEXCO Central Japan Group has set "reducing global warming and consideration for the local
environment" as one of the key themes of its CSR activities. The company has incorporated thisCSR priority theme in its business plan, established an environmental policy, and establishedmeasures in line with the policy to “curb global warming,'' `”promote the 3Rs of resources,'' and“consider the local environment.'' In the current management plan, "Management Plan Challenge
V ﴾Five﴿ 2021-2025," the above-mentioned priority themes of CSR activities are reflected inbusiness activities and the company has the following four management policies.
Management Policy 1: Deepen constant efforts to improve safety
Management Policy 2: Strengthen expressway functionality and evolve into an expressway spacethat is widely used by customers
Management Policy 3: Challenge to create new value that adapts to environmental changes suchas digitalization and decarbonization
Management Policy 4: Strengthen the management foundation to continue meeting the
expectations of customers and other stakeholders▶▶▶3. About the Social BondThe subject of this evaluation is the corporate bonds ﴾the "Bonds"﴿ to be issued by NEXCO Central.
JCR evaluates whether the Bonds aligns with the Social Bond Principles1, the Social Bond Guidelines2
and SDGs. These principles and guidelines are voluntarily published by the International CapitalMarketing Association ﴾ICMA﴿ and the Financial Services Agency, respectively, and are not legally
regulated based on evidences. JCR however refers these principles and guidelines as they are referred
to as unified standards domestically and globally. A reference indicator in evaluation should be amapping3 of SDGs stipulated by ICMA with a social project category in Social Bond Principles since
JCR emphasizes the consistency of the use of proceeds of social bonds and its social improvement
impacts ﴾hereinafter referred to as an "impact"﴿ with international sustainability goals or national
policies.

ICMA﴾International Capital Market Association﴿ ﴾2023﴿ Social Bond Principles
https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/social-bond-principles-sbp/
2
Financial Services Agency ﴾2021﴿ Social Bond Guidelines
https://www.fsa.go.jp/news/r3/singi/20211026-2/01.pdf
3
ICMA ﴾2023﴿ Green, Social and Sustainability Bonds: A High-Level Mapping to the Sustainable Development Goals
https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/mapping-to-the-sustainabledevelopment-goals/
1

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NEXCO CENTRAL plans to use the proceeds of the Bonds for new investment or refinancing of thefollowing projects.
﴾1﴿ Repair projects to weaken the power of disasters and minimize damage ﴾bridges, earthwork
structures ﴾slopes﴿, snow and ice countermeasure facilities, earthquake disaster countermeasures﴿: 93
projects
﴾2﴿ Repair projects ﴾electrical facilities, communication facilities, construction facilities﴿ to protect users
and prevent secondary disasters through prompt information transmission: 90 projects
﴾3﴿ Repair projects to safely evacuate users involved in disasters ﴾tunnel disaster prevention/tunnel
facilities﴿: 4 projects
﴾4﴿ A four-lane construction project that will benefit local residents by preventing expressway
blockages in the event of a disaster and enabling prompt road restoration ﴾however, it is limited tothose that contribute to the widening of existing roads and the maintenance of redundancy in roadfunctions﴿: 32 projects
JCR evaluates that the above projects, for which the funds were used by NEXCO CENTRAL, are projects
with outputs, outcomes and impacts defined for people affected by disasters, including natural
disasters that occur around the existing expressway network under the company's jurisdiction. In
addition, the above-mentioned uses of funds are evaluated as projects that will greatly contribute tobuilding national resilience through disaster countermeasures. Furthermore, JCR evaluates the project
selection process, fund management system, post-issuance reporting system, etc. as being
appropriately structured and highly transparent.
Based on the above, JCR evaluates that the use of proceeds of this evaluation subject falls under the
project category of ''affordable projects'' that target ''expressway users during disasters'' and ''local
residents near expressways'' under the Social Bond Principles. JCR confirmed that they contributes toGoal 3 "Good health and well-being for all," Goal 9 "Create a foundation for industry and technologicalinnovation," and Goal 13 "Take concrete measures to combat climate change" of the SDGs, and arealso consistent with the Japanese government's policies in the field of land and transportation.
Furthermore, the project selection process, fund management system, post-issuance reporting system,
etc. are evaluated as being appropriately structured and highly transparent.
Based on its JCR Social Finance Evaluation Methodology, JCR assigned "s1" for the "Socialness
Evaluation ﴾use of proceeds﴿" and "m1" for the "Management, Operation and Transparency
Evaluation." As a result, JCR assigned "Social 1" for "JCR Social Bond Evaluation."
JCR evaluates that the Bonds meet the standards for the items required in the Social Bond Principles
and the Social Bond Guidelines. JCR also evaluates that the Bond can contribute to the concretemeasures for SDGs and the government's SDGs.

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Table of Contents■Evaluation Phase 1: Socialness Evaluation
I. The overview of Use of Proceeds
JCR's Key Consideration on This Factor
Current Status of Evaluation Targets and JCR's Evaluation
1. Overview of use of proceeds
2. Social benefits of the project
3. Negative impacts on the environment and society
4. Consistency with SDGs
(1) Consistency with ICMA’s SDGs mapping(2) Consistency with SDGs action plan and social bond guidelines■Evaluation Phase 2: Management, Operation and Transparency Evaluation
I. Selection Standards and Processes for Use of Proceeds
JCR's Key Consideration on This Factor
Current Status of Evaluation Targets and JCR's Evaluation
1. Goals
2. Selection criteria
3. Process
II. Management of Proceeds
JCR's Key Consideration on This Factor
Current Status of Evaluation Targets and JCR's Evaluation
III. Reporting
JCR's Key Consideration on This Factor
Current Status of Evaluation Targets and JCR's Evaluation
IV. Organization's Sustainability Initiatives
JCR's Key Consideration on This Factor
Current Status of Evaluation Targets and JCR's Evaluation■Evaluation Phase 3: Evaluation result (Conclusion)

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Evaluation Phase 1: Socialness Evaluation

s1

I. The overview of Use of Proceeds
JCR's Key Consideration on This Factor
In this section, JCR first confirms whether the proceeds are used for social projects that bring aboutclear social benefits. Then, in cases where the use of proceeds is expected to have negative impacts
on the society and environment, JCR confirms whether the impacts are fully examined by an internal
specialized department or an external third party and whether necessary measures are taken for its
workaround and mitigation. Finally, JCR confirms the consistency with Sustainable Development Goals
﴾"SDGs".﴿

▶▶▶ Current Status of Evaluation Targets and JCR's Evaluation

The projects for which NEXCO CENTRAL used the proceeds from the Bonds are measures that contributeto the development of a sustainable society, which is the company's corporate philosophy, and are
expected to have social benefits.

1. Overview of use of proceeds
NEXCO CENTRAL has formulated a sustainable finance framework when issuing the Bonds. In thisframework, NEXCO CENTRAL stipulates the following projects for which funds can be used.

The Framework on use of proceeds

Use of Proceeds<Summary of use of proceeds><Social Bond>
The following projects that will bring about benefits to expressway users in case of a disaster:・Repair projects to weaken the power of disasters and minimize damage ﴾bridges, slopes, snow
and ice protection facilities and earthquake disaster measures﴿
・Repair projects to protect users through prompt information transmission to prevent secondary
disasters ﴾electrical facilities, communication facilities and architectural facilities﴿
・Repair projects to safely evacuate users involved in disasters ﴾tunnel disaster prevention andtunnel facilities﴿
The following projects that will provide neighboring residents with benefits by preventing blockageof expressways in case of a disaster and enabling prompt road restoration.
・Four-lane projects ﴾exclusively limited to projects that contribute to widening the existing roads
and maintaining redundancy of road functions*﴿
*The projects that will reduce risks of blockage of roads by increasing two lanes to four, such as
construction in areas where there are risks of landslides or slope collapse in case of a disaster.

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The proceeds of the Bonds will be used for the following projects that meet the eligibility criteria
established in the framework.
NEXCO CENTRAL Social Eligible Projects are as follows
﴾1﴿ Repair projects ﴾replacement of bridge supports, prevention of debris flow on slopes,
installation/repair of snow and ice prevention facilities, seismic reinforcement work of bridges, etc.﴿:93 projects
﴾2﴿ Repair Projects ﴾updating and repairing various equipment such as road information boards,
updating and repairing power receiving and distribution equipment to supply electricity to eachequipment, updating and repairing transmission equipment to communicate with each equipment,
etc. Renovation of management facilities, etc. to serve as disaster prevention bases﴿: 90 projects
﴾3﴿ Repair projects ﴾installation of evacuation shafts in tunnels, reinforcement, renewal, and repair ofventilation equipment and emergency equipment, etc.﴿: 4 projects
﴾4﴿ Construction to convert a tentative 2 lane ﴾1 lane on each side﴿ section to 4 lanes ﴾2 lanes on eachside﴿: 32 projects
It is expected that 100% of the proceeds from the issuance of the Bonds will be used for the social
projects mentioned above. The amount allocated will be approximately 74 billion yen for ﴾1﴿,
approximately 32 billion yen for ﴾2﴿, approximately 2 billion yen for ﴾3﴿, and approximately 12 billion
yen for ﴾4﴿. The proceeds from the Bonds will be used for projects that will greatly contribute to solving
the issues listed in the Cabinet Secretariat's ''Basic Plan for National Resilience'' through disastercountermeasures, and are expected to have social benefits. The funds will be used to provide''affordable basic infrastructure facilities'' for ''expressway users and local residents around
expressways in times of disaster'' as stipulated in the ''Social Bond Principles'' and ''Social Bond
Guidelines.''

2. Social Benefits of the Project<About Japan's natural disasters and the basic plan for national resilience>
Japan has traditionally suffered severe damage from natural disasters due to its land conditions,
including topography, geology, and weather. Surrounded by the sea on all sides, the coastline is longand complex, making it susceptible to tsunami damage in the event of an earthquake.
The area at risk of floods, landslides, earthquakes ﴾seismic intensity disasters﴿, or tsunamis accounts
for 21.5% of the country's total land area. On the other hand, as of 2015, the number of people living
in disaster-prone areas was 86.03 million, accounting for 67.7% of the total population. Furthermore,by 2050, this proportion is predicted to increase to 70.5%.
Regarding flooding, since mountains and mountain ranges run through the center of the country, theoverall length of the rivers is very short and steep compared to rivers in Europe and America, andwhen heavy rains hit, the river flow increases and floods occur. Such disasters are likely to occur. In
addition, global warming is bringing about extreme climate change, and heavy rain disasters are
becoming more severe. Along with this, landslides are also on the rise, and the amount of wintersnowfall is also increasing. There are also concerns about disasters caused by heavy snow.

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Light Blue: Flooding
Ochre: Landslide
Green: Earthquake
Deep Blue: Tsunami
Pink: two or more of above risks exist
Red: All risks listed above exist

Figure 1: Natural disaster risks across Japan4

Figure 21: Trends in the number of landslide disasters5

The Japanese government formulated the Basic Act on National Resilience in 2013 to contribute todisaster prevention and mitigation, and is promoting the Basic Plan for National Resilience. In the
National Resilience Basic Plan, promoting the expansion of provisional two-lane sections ofexpressways to four lanes from the perspective of the core road network, as well as measures toprevent snowfall, such as snow melting facilities, snow sheds, snow fences, chain attachment/removal
stations, and efficiency improvements are stipulated the plan also states promotion of thedevelopment of snow removal stations for efficient snow removal work, seismic reinforcement of roadbridges, and measures to prevent landslides on roads, and the use of proceeds from the Bonds willcontribute to solving these social issues.

Land, Infrastructure, Transport and Tourism White Paper 2021﴾Japanese﴿
https://www.mlit.go.jp/hakusyo/mlit/r02/hakusho/r03/html/n1222000.html
5Land, Infrastructure, Transport and Tourism White Paper 2021﴾Japanese﴿
https://www.mlit.go.jp/hakusyo/mlit/r02/hakusho/r03/html/n1222000.html
4

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Additionally, tunnels account for over 10% of the total length of roads managed by NEXCO CENTRAL.
In the event of a disaster, there are concerns that the damage will spread because the area issurrounded by structures on all sides. NEXCO CENTRAL plans to prevent tunnel accidents from turning
into serious accidents by enhancing evacuation pits and emergency equipment that can be used by
victims in the event of a disaster occurring inside the tunnel.
Use of proceeds 1: Repair projects ﴾replacement of bridge supports, prevention of debris
flow on slopes, installation/repair of snow and ice prevention facilities, seismic
reinforcement work of bridges, etc.﴿: 93 projects
The proceeds will be used for repair projects ﴾bridges, slopes, snow and ice countermeasures facilities,
earthquake disaster countermeasures﴿ to weaken the power of disasters and minimize damage. Thisuse of funds falls under the category of ''affordable basic infrastructure facilities'' for expressway users
in times of disaster under the ''Social Bond Principles. ''The proceeds will be used for projects to localize damage caused by natural disasters and otherdisasters, not for adapt to climate change. This project targets people who encounter disasters while
using expressways. Regarding bridge repair projects, the target is support replacement, which involves
replacing the components ﴾supports﴿ between bridge girders and piers to minimize damage in theevent of an earthquake disaster. In parallel with countermeasures for deck deterioration, which is theuse of funds for climate change adaptation, efforts are being made to replace bridges with newer,
higher-performance bearings with the aim of minimizing damage to bridges during earthquakes.
Regarding slope repair projects, installation of protective fences, etc. will be covered. The purpose of
installing protective fences is to prevent rocks from falling from the slope and debris flows, and tominimize damage in the event of earthquakes or rainfall disasters.
The repair project for snow and ice countermeasure facilities covers the installation and repair of snow
melting facilities and other snow and ice countermeasure facilities. There are many areas within the
NEXCO CENTRAL jurisdiction, mainly in the Hokuriku region, that are designated as heavy snowfall
areas under the Act on Special Measures Concerning Countermeasures for Heavy Snowfall Areas. Asa countermeasure against snow and ice in the winter, the Company equips snow removal and snow
melting vehicles, but in addition, in areas where it is difficult to climb steep slopes due to snowfall, it
has installed stationary snow melting equipment. By spraying the solution from the equipment, it aims
to minimize snow and ice disasters.
Regarding repair work for earthquake disaster prevention, the target is seismic reinforcement work
such as reinforcing bridge piers and installing bridge collapse prevention devices to strengthen theresistance of bridges. In order to strengthen the durability of the bridge, NEXCO CENTRAL is carryingout a repair project to make the bridge meet seismic performance 2 of the seismic performance
specified in the Highway Bridge Specifications, a technical standard set by the Ministry of Land,
Infrastructure, Transport and Tourism ﴾“MLIT”﴿. Seismic performance 2 means '' performance to ensurethat seismic damage is limited and that the bridge can quickly regain its functionality.''66

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Use of Proceeds 2: Repair projects ﴾updating and repairing various equipment such as
road information boards, updating and repairing power receiving and distribution
equipment to supply electricity to each equipment, updating and repairing transmission
equipment to communicate with each equipment, etc. Renovation of management
facilities, etc. to serve as disaster prevention bases﴿: 90 projects
The proceeds will be used for repair projects ﴾electrical facilities, communication facilities, andarchitectural facilities﴿ to protect users and prevent secondary disasters through prompt informationtransmission. This use of funds falls under the category of ''affordable basic infrastructure facilities''
for expressway users in times of disaster under the ''Social Bond Principles.''
The proceeds will be used to prevent secondary disasters by communicating information to users
when a disaster occurs. Use of Funds 1 aims to minimize disasters, but if a disaster occurs, information
will be promptly communicated to expressway users to prevent secondary disasters. Similar to Use ofFunds 1, this project will also target people who encounter disasters while using expressways.
Repair projects related to electrical facilities include updating and repairing various equipment suchas road information boards to promptly transmit information to expressway users in the event of adisaster, and power receiving and distribution equipment, private power generation equipment, etc.
to supply electricity to various equipment such as road information boards. Road information boards
are dotted along the expressway, and power receiving and distribution equipment and private power
generation equipment are placed at each interchange, service area, parking area, etc. These repairs
are intended to ensure that a system is in place to properly provide information to expressway users
in the event of a power outage due to a disaster.
Repair work related to communication facilities involves updating and repairing transmission
equipment for communicating with various equipment such as road information boards, andmonitoring and control equipment at road control centers. The repair projects cover equipment that
communicates with road information boards within the NEXCO CENTRAL jurisdiction, as well as
equipment installed at four road control centers within the NEXCO CENTRAL jurisdiction ﴾Nagoya,
Kanazawa, Kawasaki, and Hachioji﴿. In the event of a disaster, road information is transmitted throughthese facilities to alert expressway users.
Repair projects related to building facilities include new construction and renovation of management
facilities that serve as disaster prevention bases in the event of a disaster. The NEXCO CENTRAL plansto utilize offices located in each region as comprehensive disaster prevention bases in the event of adisaster, and plans to carry out renovations to improve the disaster prevention functions of thesefacilities. By renovating management facilities that serve as disaster prevention bases, it aims to createa system that can continue operations in the event of a disaster, and to communicate information tousers and respond to evacuations.

Use of proceeds 3: Repair projects ﴾installation of evacuation shafts in tunnels,
reinforcement, renewal, and repair of ventilation equipment and emergency equipment,
etc.﴿: 4 projects
The proceeds will be used for repair projects ﴾tunnel disaster prevention and tunnel facilities﴿ to safely
evacuate users involved in disasters. This use of funds falls under the category of ''affordable basic
infrastructure facilities'' for expressway users in times of disaster under the ''Social Bond Principles.''
The projects target disaster prevention measures in tunnels as the use of funds. It is intended to coverusers of expressway tunnels in the event of a disaster.
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Repair projects related to tunnel disaster prevention include the installation of evacuation shafts forsafe evacuation of expressway users in the event of a tunnel disaster, reinforcement of tunnel
ventilation equipment, and emergency equipment. There are 441 tunnels within the NEXCO CENTRAL
jurisdiction, and in the ''Road Tunnel Emergency Facility Installation Standards'' revised by the MLIT in
2019, the standard distance for evacuation shaft installation, which had been divided depending on
the transportation method, was unified into a shorter distance standard. In accordance with the revised
installation standards, NEXCO CENTRAL is upgrading ventilation facilities in tunnels with long tunnels
and heavy traffic, to function as smoke ventilation facilities in the event of a disaster. Emergency
facilities are also planned to be enhanced in accordance with the revised standards.7
The repair projects for tunnel facilities are scheduled to include updating and repairing existing tunnel
ventilation equipment and emergency equipment, and these are intended to provide a safer
infrastructure for expressway tunnel users in the event of a disaster.

Use of proceeds 4: Construction work to convert a tentative two-lane ﴾one lane on eachside﴿ section to four lanes ﴾two lanes on each side﴿: 32 projects
The proceeds will be used for a four-lane project that will benefit local residents by preventing
expressway blockages in the event of a natural disaster and enabling prompt road restoration ﴾limited
to projects that contribute to widening existing roads and maintaining redundancy of road functions﴿.
JCR has determined that this use of funds falls under the category of ''affordable basic infrastructure
facilities'' for expressway users and local residents around expressways in times of disaster, and that it
has a social aspect.
The proceeds will be used to expand the expressways, which are currently operated with two tentative
lanes, to four lanes. The funds will be used only for projects that reduce the risk of road blockage byincreasing the number of lanes to four lanes, and is expected to have the social benefit of encouraging
the early resumption of traffic in areas isolated by disasters by improving the resilience of expressways.
Approximately 40% of high-standard highways in Japan have three lanes or less, which is extremely
high compared to other countries. In particular, tentative two lanes are often adopted on roads where
not much traffic is expected when they are initially put into service, but in many cases the median ispartitioned with rubber poles, etc., and the accident rate is higher compared to 4-lane sections. In
addition, in the event of a disaster such as an earthquake or heavy rain, it is necessary to close theroad for restoration work, and in addition to the road becoming narrow during heavy snowfall, it isalso necessary to close the road to remove snow from the roadside. It has been pointed out that thesewill cause major traffic problems. The National Highways Subcommittee of the MLIT has announced
the ''Basic Policy ﴾Vision﴿ for Wide Area Road Networks,'' and one of the policies includes thepromotion of multi-lane roads and the securing of alternative routes to avoid isolation of regions anddisruption of access routes to disaster prevention bases such as medical institutions from theperspective of alternative functions in the event of a disaster in the Chubu and Hokuriku blocks, where
the NEXCO CENTRAL is located.8
The expressways managed and owned by NEXCO CENTRAL fall under the category of high-standard
roads in the wide-area road network, and the MLIT has selected priority development sections forfour-lane construction ﴾880km, of which approximately 100km is the NEXCO CENTRAL section﴿ forRegarding revision of road tunnel emergency facility installation standards﴾Japanese﴿
https://www.mlit.go.jp/road/sign/kijyun/pdf/tonnneruhijou.pdf
8
Ministry of Land, Infrastructure, Transport and Tourism 54th National Highway Subcommittee﴾Japanese﴿
https://www.mlit.go.jp/policy/shingikai/road01_sg_000622.html
7

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high-standard roads ﴾tolls﴿ for the purpose of national resilience, and work is being carried out instages.
3 or less Lanes

4 to 5 Lanes

6 to 7 Lanes

8 or more Lanes

Japan
The U.S.
Republic of Korea
FranceMore than 8 lanes

Germany

Figure 3: Lane distribution in each country's expressway network9

By converting a provisional two-lane road to four lanes, it is expected to reduce the number of traffic
disruptions in the area due to vehicle closures in the event of a disaster. NEXCO CENTRAL Company
has announced that the number of road closures due to disasters has decreased in the section where
the provisional two-lane road has been converted to four lanes.10
The use of the funds does not include sections that simply need to be widened to four lanes due toincreased traffic volume, but rather sections that will contribute to the early resumption of traffic inareas isolated by the disaster by improving highway resilience.

3. Negative Impacts on the Environment and Society
This framework regarding negative impacts on the environment and society(excerpt)

Negative impacts of projects on the environment and society and how to deal with them﴾Foregoing omitted﴿
2. Responses to Risk Mitigation
﴾1﴿ Impacts of land development on the ecosystem
・Conduct environmental impact assessments in all expressway construction projects ﴾by thenational government or target prefectures﴿・Perform environmental research, such as soil or hydrological surveys for construction anddetermine road structures so as not to affect living of local communities after figuring out
the topography, geology or groundwater conditions

9

Ministry of Land, Infrastructure, Transport and Tourism 53rd National Highway Subcommittee Handout 5 ﴾Japanese﴿
https://www.mlit.go.jp/policy/shingikai/content/001587621.pdf
Central Nippon Expressway website﴾Japanese﴿
https://www.c-nexco.co.jp/images/news/4767/2e2a4b3e16a16283802ce291d72abf2f.pdf

10

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・In areas with rich natural environments, collect seeds from trees that have been grownnaturally in local areas, cultivate and utilize them as "local seedlings" for greening expressway
surfaces or other areas.
・Recycle and reuse construction by-products, such as construction generated soil, asphalt or
concrete lumps, and use those, which cannot be reused or recycled, as recycled resources asmuch as possible
・ Take measures against noise or air pollution in accordance with the gist of the Basic
Environmental Law and the Noise Regulation Law* Noise measures: Establish noise barrier walls or environment facility zones based on noise
forecasts before construction and measurement results after construction, requests fromlocal governments in areas along roads and locational conditions
Air Pollution Countermeasures: growing trees on slopes or measures against traffic
congestion
﴾2﴿ Traffic congestion caused by traffic or lane regulations
・In case of large-scale lane regulations, disseminate the regulations to users via its website or
public relations in advance to alleviate traffic congestion.
・Reduce traffic influence due to construction by implementing work on only one side of theroad according to the two-way traffic regulation.
﴾3﴿ Safety risk of construction workers
・The Company's management philosophy is to prioritize on safety, and it has determined "fiveinitiative policies" for improving safety as a concrete initiative policy for "continuous efforts
to improve safety," one of its management policies.
1. Foster a corporate culture that gives first priority to safety
2. Promote safety activities
3. Develop human resources that support safety
4. Continuously improve operational processes in response to aging deterioration or potential
risks in road structures
5. Promote steady and efficient projects to improve safety
・Implement initiatives for safe and efficient construction or work with the contractors andGroup companies based on the above.
・Annually report the implementation of initiatives based on the "five initiative policies" at the Safety
Improvement Expert Meeting composed of external experts.
﴾Omitted﴿

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Regarding the NEXCO CENTRAL, most of the eligible projects covered by this framework only involve
renovation work on existing expressways and do not include large-scale civil engineering works, sothey do not have a large negative impact on the environment or society. Furthermore, the four-lane
construction work is targeting sections that have already been opened with provisional two lanes, andmost of these roads are currently undergoing land acquisition and construction in preparation for the
future four-lane expansion. However, while some earthwork structures such as tunnels will requirelarge-scale construction, excavation will not be carried out as they will not be used during theprovisional two-lane road, and construction will be carried out in conjunction with the four-lane
construction. NEXCO CENTRAL has stipulated that the above-mentioned construction work will be
conducted through procedures stipulated by laws and ordinances, such as environmental impact
assessments, to confirm the negative impact on the environment and the company, and to takemeasures to reduce it. Through interviews with NEXCO CENTRAL and confirmation of related materials,
JCR confirmed that it has a system in place to take appropriate countermeasures.

4. Consistency with SDGs
﴾1﴿ Consistency with ICMA’s SDGs mapping
Project subject to the use of proceeds are evaluated to contribute to the following SDGs and targets
in light of the SDGs mapping of ICMA.
Goal 3: Ensure healthy lives and promote well-being for all at all ages

Target 3.6. By 2020, halve the number of global deaths and injuries from road traffic accidents
Goal 9: Build resilient infrastructure, promote inclusive and sustainableindustrialization and foster innovation
Target 9.1. Develop quality, reliable, sustainable and resilient infrastructure, including regional andtransborder infrastructure, to support economic development and human well-being, with a focus
on affordable and equitable access for all.
Goal 13: Take urgent action to combat climate change and its impacts
Target 13.1. Strengthen resilience and adaptive capacity to climate-related hazards and natural
disasters in all countries.

﴾2﴿ Consistency with SDGs Action Plans and Social Bond Guidelines
JCR has confirmed that the projects for which the funds are to be used are consistent with thefollowing items among the "social issues based on the SDGs Action Plan, etc." as exemplified in theSocial Bond Guidelines by the Financial Services Agency.
Social issues based on SDGs action plans, etc.: Sustainable and resilient national land
Target people: Expressway users and local residents near expressways during
disasters
Construction of facilities with disasterprevention and mitigation measures,
Disaster vulnerability/infrastructure aging
countermeasures projecttargetAffordable basic infrastructure
facilities

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Social issues based on SDGs action plans, etc.: Sustainable and resilient national land
Target people: Expressway users and local residents near expressways during
disasters

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Evaluation Phase 2:
Management, Operation and Transparency Evaluation

m1

I. Selection Standards and Processes for Use of Proceeds
JCR's Key Consideration on This Factor
In this section, JCR confirms the objectives to be achieved through social financing, theappropriateness of social project selection standards and the processes, and whether a series ofprocesses are properly disclosed to investors/lenders and others.

▶▶▶ Current Status of Evaluation Targets and JCR's Evaluation

JCR has assessed that departments and management with specialized knowledge are appropriately

involved in the goals of the Bonds, the criteria for selecting eligible projects, and the process, and thattransparency is ensured.

1. GoalsThis framework related to goals (excerpt)

Investment policy based on long-term vision
NEXCO CENTRAL has managed roughly 2,100km of expressways, including TOMEI EXPWY, MEISHIN
EXPWY and CHUO EXPWY. TOMEI EXPWY and MEISHIN EXPWY have been aging, with 50 years ormore from the opening of all routes, and approximately 60 percent of all routes have been in service
for 30 years or more and roughly 30 percent of all routes have been in service for 50 years or more.
In order to continue to fulfill its role as significant routes that support people's living or the
economy, the Company is required to early work on large-scale renewal and repair projects.
In recent years, the social environment has been changing rapidly, with frequent and severe natural
disasters, a falling birthrate, an increase in aging population, a rapid decline in working population
and rapid technological innovation in the ICT sector. As a business concern, how to contribute todeveloping a sustainable society has been tested. The Group has been continuing to take on thechallenge, aiming higher by working to solve social issues such as improving expressway networks,
taking measures against aging through renewal projects, taking resilience measures through antiseismic reinforcement on brides, developing technology with ICT or resolving social issues such as
regional revitalization.
﴾snip﴿In December 2013, the government promulgated the "basic act for national resilience contributing
to preventing and mitigating disasters to achieve strong and flexible people's living," based on
which it formulated the "basic act for national resilience" or "five-year acceleration measures fordisaster prevention and mitigation and national resilience" to promote the development of adisaster-resistant nation. Of these, the national government is required to ensure functionalities ofnational arterial roads and take measures against aging including proper reinforcement for traffic
infrastructure.

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The "MLIT Action Plans for Life Extension of Infrastructure FY 2021-FY 2027" formulated by the MLIT
in September 2019 clearly states that it is increasingly important to adequately maintaininfrastructure during normal times in order for the infrastructure developed to exert significant
effects as disaster prevention and to realize sustainable infrastructure maintenance so that the
infrastructure functions can be appropriately exercised in the future.
Promoting disaster prevention and aging measures for expressways by implementing target
projects for which proceeds through social bond proceeds will be used in this framework is in linewith the government's policy on disaster prevention/mitigation and national resilience andcontribute to the development of high-quality infrastructure with sustainable and national
resilience.
With regard to the use of social bond funds, JCR has confirmed that NEXCO CENTRAL is in compliancewith the following: MLIT's climate change adaptation plan, “Recommendations from Technical Review
Committee on Long-Term Preservation and Renewal of Expressway Assets ﴾January 22, 2014﴿,” which
was established to strengthen against the aging of expressways, “Large-Scale Renewal and LargeScale Repair of Highway Managed by NEXCO East/Central/West, ﴾January 22, 2014﴿,” ”MLIT’s Action
Plans for Life Extension of Infrastructure for FY2021-FY2025 ﴾June 18, 2021﴿, ''NEXCO Central
Infrastructure Life Extension Plan ﴾Action Plan﴿ for FY2021 to FY2025 ﴾December 2021﴿,” “NEXCO
Central Individual Facility Plan ﴾Road Facilities﴿ ﴾December 2022﴿,” “Maintenance Inspection Guidelines﴾April 2023﴿,” “Facility Maintenance Management Guidelines ﴾April 2023﴿,” “Basic Plan for Safety andSecurity on Expressways ﴾September 10, 2019﴿,” “Implementation Plan for Safety and Security on
Expressways,” ﴾December 20, 2019﴿,” “Agreement on Expressway and National Route Chuo Expressway
Fujiyoshida Line, etc.,” “Technical Standards for Pavement Structures” ﴾Kokutogai No. 48, National
Highway Plan No. 55, June 29, 2001﴿. JCR has confirmed that various measures has been steadily
implemented in accordance with the "NEXCO Central Design Guidelines" ﴾June 29, 2001﴿.
Based on the above, JCR evaluates that the projects for which the proceeds of the Bonds will be used
are consistent with the transportation infrastructure plans of the MLIT and the strategy of NEXCO
CENTRAL.

2. Selection criteria
JCR evaluates that the eligibility criteria for the Bonds are targeted at projects with high social benefits,
as confirmed in Evaluation Phase 1. Additionally, JCR confirmed that all of the projects covered by theBonds meet the selection criteria.

3. Process
The selection process and parties involved in the selection of NEXCO CENTRAL projects are inaccordance with the legal provisions, and involves not only NEXCO CENTRAL but also third parties,
making the selection process highly transparent.
Based on the above, JCR evaluates that NEXCO CENTRAL's goals, selection criteria, and process for
the Bonds are appropriately structured. In addition, when issuing social bonds, NEXCO CENTRAL plans
to disclose these standards and processes to investors using the Shelf Registration Supplemental
Prospectus, Final Terms, or Offering Circular as the main documents, ensuring transparency.

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II. Management of Proceeds
JCR's Key Consideration on This Factor
It is usually assumed that management methods of proceeds vary widely depending on
issuers/borrowers. JCR confirms whether the proceeds are surely appropriated to the social project
and whether a mechanism and an internal system are in place to make tracking easy.
JCR also focuses on whether the proceeds are scheduled to be used for social projects at an earlystage and the management and operation methods for unallocated proceeds.

▶▶▶ Current Status of Evaluation Targets and JCR's Evaluation

JCR evaluates the fund management system of NEXCO CENTRAL as highly transparent, as it has
been appropriately constructed and the method of managing procured funds is disclosed in thisevaluation report.

The proceeds from the Bonds will be used for the following: bridge support replacement in repair
projects, debris flow prevention measures on slopes, installation and repair of snow and ice
countermeasure facilities, seismic reinforcement work for bridges, renewal and repair of various
facilities such as road information boards, renewal and repair of power receiving and distribution
equipment to supply electricity to each equipment, renewal and repair of transmission equipment tocommunicate with each equipment, renovation of management facilities that serve as disasterprevention bases, etc. The use of funds includes new investments or refinancing for installation,
reinforcement, renewal, and repair of evacuation shafts in tunnels, reinforcement, renewal, and repairof ventilation equipment and emergency equipment, and construction work to convert a tentative 2lane ﴾1 lane on each side﴿ section to 4 lanes ﴾2 lanes on each side﴿. There are no plans to use the funds
for any other purposes. The ratio of new investment to refinancing is expected to be approximately
1:9.
NEXCO CENTRAL clearly distinguishes the use of social bonds from other uses of funds by managing
the funds raised in a dedicated account. After depositing money into the dedicated account, the funds
are transferred to the general account after examining the cumulative amount of construction costs
and other expenditures for each project, and the semiannual construction output of the target projectis extracted from the asset system to monitor progress, and a strict tracking management system is inplace. In addition, the internal control system has been appropriately established, as the managementof the inflow and outflow of procured funds is carried out by the finance section manager, who is incharge of cash receipts and disbursements, and the audit firm is scheduled to complete the review ofsemiannual settlement of accounts.
Based on the above, JCR evaluates that NEXCO CENTRAL has established a strict financial management
system and internal control system.

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III. Reporting
JCR's Key Consideration on This Factor
In this section, JCR evaluates whether the disclosure system for investors/lenders is planned in detailand in an effective manner before and after the issuance of the social bonds/loan.

▶▶▶ Current Status of Evaluation Targets and JCR's Evaluation

JCR evaluates the reporting of the NEXCO CENTRAL as a plan in which both the allocation statusof funds and the benefits provided to beneficiaries are appropriately disclosed to investors andothers.

Reporting on appropriation of proceeds
The use of proceeds from the Bonds will be disclosed to investors on the NEXCO CENTRAL’s website,
JCR's evaluation report, etc. In addition to the method of disclosing the status of appropriations andthe methods of managing the unappropriated funds, if there is a need to re-appropriate the funds
due to cancellation or other reasons of the project before the redemption of the Bonds, NEXCO
CENTRAL plans to disclose it on its website until the entire amount is allocated to other eligible
projects.

Reporting on social benefits
NEXCO CENTRAL plans to disclose the social benefits of the Bonds annually on its website.
In reporting on social benefits, in addition to an overview of the target repair project, outputs andoutcomes are shown, and the contents described in the goals are reported as impacts. Furthermore,
as quantitative information will be disclosed as much as possible. Therefore, it will be sufficient todemonstrate the social significance of the target project.
Based on the above, JCR evaluates that the reporting system by NEXCO CENTRAL is appropriate.

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IV. Organization's Sustainability Initiatives
JCR's Key Consideration on This Factor
In this section, JCR evaluates whether the management of the issuer/borrower positions sustainability
issues as a high priority for management and whether the sustainability policy, process and selection
criteria for social projects are clearly positioned through the establishment of a department dedicatedto the promotion of sustainability, including social issues, or in collaboration with externalorganizations.

▶▶▶ Current Status of Evaluation Targets and JCR's Evaluation

JCR highly evaluates NEXCO CENTRAL for the fact that it positions sustainability issues asimportant management issues and implements various initiatives together with various

stakeholders under the strong initiative of the management, and for the fact that it has adepartment and personnel specializing in environmental and occupational safety aspects ofexpressways and is involved in the implementation of eligible projects from their professional
knowledge and expertise.
The NEXCO CENTRAL Group has set four management policies in its medium-term management
plan, "Management Plan Challenge V 2021-2025."

Figure 4: Management policy of Central Japan Expressway11

In accordance with these four management policies, NEXCO CENTRAL has promoted its efforts with
"Steady maintenance for accelerating aging infrastructure" and "Response to more severe and more
NEXCO Central Japan Report 2023 ﴾Japanese﴿
https://www.c-nexco.co.jp/corporate/csr/csr_download/documents/2023/nexcocsr23_2_all.pdf
11

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Copyright © Japan Credit Rating Agency, Ltd. All Rights Reserved.

frequent natural disasters" as major measures in response to climate change adaptation and disasters
such as earthquakes for which proceeds in this framework will be used.
The Company has listed "Taking on challenges to create new value adapting to environmental changes,
such as digitalization and decarbonization" as the third item in the aforementioned management
policies. JCR has confirmed that the item was included in the management policies with the following
reasons: ﴾1﴿ the Japanese government set forth its policies to realize a digital society or a carbon-freesociety in 2020, ﴾2﴿ the government has recognized it is urgent to deal with the "utilization ofaccelerating digital technologies" and "environmental conservation to realize a carbon-free society,"
which is looking ahead to future changes as management issues assumed hereafter and ﴾3﴿ some
employees in the Company made remarks that "it needs to advance projects for expressways or
introduce IoT."The Company has expressed that it has improved its statements on the environmental efforts, such as"renewable energy efforts" or "replacement of the conventional lighting apparatus with highefficiency ones such as LED" in the "contribution to the preservation of the local environment anddecarbonization" of the "taking on the challenge to create new value adapting to environmental
changes, such as digitalization or decarbonization" in the "Management Plan Challenge V 2021-2025,"
and NEXCO CENTRAL has expressed that it has seriously regarded the environmental issues toinvestors. In addition to these efforts, the Company has reinforced its environmental initiatives, suchas its joint efforts with Chubu Electric Power Co., Inc. to improve its snow-melting system on the
sidewalks in expressways' parking areas by directly sending the heat from heating in buildings
developed by HOKUSUI SEKKEI CONSUL. Co., Ltd. to space installed under roads.
NEXCO CENTRAL sought opinions from external experts and reflected them in working out the overall
structure or major policy proposals in formulating the "Management Plan Challenge V 2021-2025."
These external experts have expressed their opinions on "national resilience," "new value creation,""carbon neutrality" and "fostering the next generation," and NEXCO CENTRAL formulated its
management plan while referring to them.
NEXCO CENTRAL has operated its environmental management system with the ISO14001 certification.
The Company's CEO has given instructions on the environmental management plan for the new fiscal
year in management review, encouraging the top of the Company to manage the environment. Plans
for the new fiscal year have been reported at the management meeting and have been disseminatedas its policy.
Environment and Technical Planning Division is in charge of making environmental impact assessment
or determining policies on environmental measures for environmental issues. Comprehensive Safety
Promotion Division, a specialized department, has comprehensively managed safety including
occupational safety.
Accordingly, JCR has confirmed that NEXCO CENTRAL has implemented various initiatives with multistakeholders under the strong initiative of the management. JCR has also confirmed that the Company
has had specialized departments and human resources from the perspective of both theenvironmental and occupational safety of expressways and has been involved in the implementationof eligible projects based on their specialized insight.

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Evaluation Phase 3:
Evaluation result(Conclusion)

Social1

Based on its JCR Social Finance Evaluation Methodology, JCR assigned "s1" for the "Socialness
Evaluation ﴾use of proceeds﴿" and "m1" for the "Management, Operation and Transparency
Evaluation." As a result, JCR assigned "Social 1" for "JCR Social Bond Evaluation." The Bonds meet thestandards for the items required in the Social Bond Principles and the Social Bond Guidelines and areconsistent with concrete measures for SDGs Goals and the governmental SDGs Goals.

Management, operation, and transparency evaluation

Social Evaluation

m1

m2

m3

m4

m5

s1

Social 1

Social 2

Social 3

Social 4

Social5s2Social 2

Social 2

Social 3

Social 4

Social5s3Social 3

Social 3

Social 4

Social 5

Not qualified

s4

Social 4

Social 4

Social 5

Not qualified

Not qualified

s5

Social 5

Social 5

Not qualified

Not qualified

Not qualified(Responsible analysts for this evaluation) Atsuko Kajiwara, Kosuke Kajiwara

21/22
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Important explanations of this Evaluation
1. Assumptions, Significance and Limitations of JCR Social Finance Evaluation
JCR Social Finance Evaluation, which is determined and provided by Japan Credit Rating Agency, Ltd. (JCR), is an expressionof JCR's comprehensive opinion at this time on the extent to which the funds procured from the issuance of social bonds orthe execution of social loan (social bonds and social loans are collectively called "social finance"), which are the subject of
the evaluation, are allocated to social projects defined by JCR and the extent to which the management, operation andtransparency of the use of social finance are ensured. It does not fully indicate the extent to which the funds procured fromsuch social finance are allocated and the management, operation and transparency of the use of the funds are ensured.
JCR Social Finance Evaluation assesses the plan or status of the appropriation of funds at the time of the planned social financeprocurement or at the time of procurement and it does not guarantee the status of the appropriation of funds in the future.
Furthermore, it does not prove the social benefits of social finance and is not responsible for their social benefits. JCR confirms
the social benefits of social finance measured quantitatively and qualitatively by the issuer/borrower or by a third party
nominated by the issuer/borrower, but in principle it does not directly measure such effects.
2. Method used to conduct this evaluation
The methodologies used in this assessment are described in "JCR Social Finance Evaluation" on the "Sustainable Finance
ESG" section of the JCR website (https://www.jcr.co.jp/en).
3. Relationship with Acts Concerning Credit Rating Business
JCR Social Finance Evaluation is determined and provided by JCR as a related business, which is different from its activities
related to the credit rating business.
4. Relationship with Credit Ratings
The Evaluation is different from the Credit Rating and does not assure to provide or browse a predetermined credit rating.
5. Third-Party Evaluation of JCR Social Finance Evaluation
There are no capital and/or personnel relationships that may result in a conflict of interests between the subject of thisevaluation and JCR.
■Matters of Attention

The information contained in this document was obtained by JCR from the issuer/borrower and from accurate and reliable sources; however, such information may be
mistaken for human and/mechanical errors or other reasons. Therefore, JCR makes no representation or warranty, whether express or implied, as to the accuracy, result,appropriateness, timeliness, completeness, marketability or fittingness for any particular purpose of such information, and assumes no responsibility for any errors,omissions or consequences of using such information. JCR shall not be liable for any loss of opportunity and extraordinary, indirect, incidental or consequential damagesof any kind, including any loss of money, which may result from any use of such information under any circumstances, whether contractual liability, tort liability,
negligence or other causes of liability, and whether or not such damages are foreseeable or unforeseeable. JCR Social Finance Evaluation does not express any opinion
on various risks (credit risk, price fluctuation risk, market liquidity risk, price fluctuation risk, etc.) related to Social Finance, which is the target of the evaluation.
Furthermore, it is an expression of JCR's opinion at the present time and does not represent facts nor does it make any recommendation regarding risk assessment or
decisions on the purchase, sale or holding of individual bonds, commercial paper, etc. JCR Social Finance Evaluation may be modified, suspended or withdrawn due tochanges in information, lack of information or other reasons. All rights pertaining to this document, including data from JCR Social Finance Evaluation, are held by JCR.
All or part of this document, including data from JCR Social Finance Evaluation, is prohibited from being reproduced, modified or otherwise altered without the permissionof JCR.

■ Glossary

JCR Social Finance Evaluation: This evaluates the extent to which the funds procured from the social bonds are allocated to social projects as defined by JCR, and thedegree to which the management, operation and transparency of the social bonds are ensured. Evaluations based on a 5-point scale are given from top to bottom using theSocial 1, Social 2, Social 3, Social 4, and Social 5 symbols.

■ Status of Registration as an External Evaluator of Sustainability Finance・Registered as an External Reviewer of Green Bonds by the Ministry of the Environment
・ICMA (registered as an observer with the Institute of International Capital Markets)■ Status of registration as a credit rating agency, etc.
・Credit Rating Agency: the Commissioner of the Financial Services Agency (Rating) No.1
・EU Certified Credit Rating Agency
・NRSRO: JCR has registered with the following four of the five credit rating classes of the U.S. Securities and Exchange Commission's Nationally Recognized Statistical
Rating Organization (NRSRO): (1) financial institutions, broker-dealers, (2) insurance companies, (3) general business corporations and (4) governments andmunicipalities. If the disclosure is subject to Section 17g-7 (a) of the Securities and Exchange Commission Rule, such disclosures are attached to the news releases
appearing on the JCR website (https://www.jcr.co.jp/en/).

■For further information, contact

Information Service Dept. TEL: 03-3544-7013 FAX: 03-3544-7026

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

Copyright © Japan Credit Rating Agency, Ltd. All rights reserved.

22/22
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