April 25, 2012 Kaneko Chairman and President Regular Meeting

[Moderator]

Thank you for waiting. The 78th regular press conference is about to begin.

 

[Chairman and President Kaneko]

Thank you for joining us in your busy schedule.

As you have already announced, 162 km from Shin-Tomei Expressway-Tomei / Gotemba JCT to Mikkabi JCT has opened at 15:00 on Saturday, April 14th. Once again, we would like to thank the local people and everyone involved.

Although it has already been reported, on Monday of 23 days, Saigo tunnel of Kakegawa Out-bound in the line near the exit, falling rocks from the adjacent mince the Expressway were singing the praises of - site prevention fence, Expressway fell into the main line, customers An accident occurred in which four of your vehicles climbed up. Currently, as an emergency measure, large sandbags for rockfall protection are being piled up on the side roads of the site from today, and similar steel blocks (4 locations) near the rockfall site are equipped with steel nets and other emergency measures to prevent rockfall. The inspection will be completed before Golden Week, and similar parts will be inspected promptly. Fortunately, there were no injuries to our customers, but we are currently in the process of grasping the detailed situation and investigating the cause, and inspecting similar parts on all Shin-Tomei Expressway lines. In addition, on Sunday, the 22nd, there was an accident in which the glass of the lighting equipment was damaged or dropped to the side of the road in the Kuzuyama tunnel Out-bound line in Susono City. There were no abnormalities in the other lighting equipment in the tunnel. We are currently inspecting all the tunnels on the Shin-Tomei Expwy.

We sincerely apologize for any inconvenience caused to our customers.

We will continue to thoroughly implement safety management so that the Shin-Tomei Expwy can be used more safely and securely.

 

Next, I will report the traffic volume and the status of rest facilities after the opening of the Shin-Tomei Expressway.

The average cross-sectional traffic volume for 10 days from April 15th (Sun) to April 24th (Tues) after opening is a preliminary value of Shin-Tomei Expressway / day, 41 thousand / day parallel Tomei, The total was 84,000 units / day. The number of Tomei Expressway vehicles in the same period in 2011 was 68,000 units / day, so the number increased by 16,000 units / day, and with the opening of the line, more customers were using it. Also, when comparing the Tomei only, it decreased by Shin-Tomei Expressway units / day, and we believe that the conversion to the new Tomei was achieved.

Sales of the service area, parking area, at a later opening until April 22 (Sunday), Shin-Tomei Expressway 800 million yen, 400 million yen in the Tokyo, Nagoya and running parallel, was 1.2 billion yen in total. Tomei's sales for the same period last year were 500 million yen, resulting in an increase of 700 million yen. Unfortunately, Tomei to be parallel, but a decline of 100 million yen was also a decrease in traffic volume, such as NEOPASA Shin-Tomei Expressway has been regarded as a result of the service area of who is greeted with the expectations of many customers. We will continue to work with Shin-Tomei Expressway Tomei and Tomei to create attractive facilities and sales floors, and continue to provide attractive service areas.

 

Next, I would like to inform you about measures to prevent congestion at the rest facilities during Golden Week.

Service areas and parking areas such as the Shin-Tomei Expressway Tomei NEOPASA have been very well received, and congestion is expected especially during Golden Week. Therefore, we will expand the temporary parking space in the service areas such as Shizuoka and Hamamatsu, starting with the Suruga Bay Numazu service area. In addition, we will strengthen the provision of information such as traffic guidance from customers and traffic congestion on main lines and congestion in service areas.

During Golden Week, we will inform you about the congestion status of the service area and Shin-Tomei Expressway on a special website on our official website. We hope you will make use of it to make your trip more comfortable.

 

Next is the current state of the business.

Toll revenues in March 2012 were 42,840 million yen, an increase of 20.4% year-on-year.

By breakdown, highways increased 38,980 million yen, 17.8%, and general toll roads increased 3,859 million yen, 56.1%.

On the other hand, the number of vehicles passing in March averaged 1,897,000 units, an increase of 5.0% year-on-year.

The breakdown is that daily highways have an average of 1.51 million units, an increase of 9.2%, and general toll roads have an average of 387,000 units, a decrease of 8.8%.

Fee income was significantly higher than the same month last year due to the freezing social experiment freeze and the impact of the Great East Japan Earthquake last year.

Although the number of passing cars was affected by the freezing social experiment, the overall number of cars increased compared to the previous year due to the reaction of the decrease due to the Great East Japan Earthquake that occurred in the same month of the previous year.

The ETC discount amount for this month was 29.4 billion yen, a 6.4% increase from the 27.7 billion yen for the same month last year.

The discount rate is about 40.7%.

Next is the business situation for the entire 2011 fiscal year.

Toll revenue in fiscal 2011 was ¥ 476.8 billion, an increase of 7.8% compared to the previous fiscal year.

On the other hand, the average number of traffic in 2011 was 1.85 million units, a decrease of 1.8% from the previous year.

Toll revenue increased by 7.8% and the number of passing vehicles decreased by 1.8% due to the freeze of free social experimentation and the end of the local special limit of 1,000 yen for special holidays.

 

Next is the construction situation.

In fiscal 2012, Michi Kisei Kii-Nagashima IC ~ Kisei Ouchiyama IC10㎞, Ken-O Road Nishikubo JCT ~ Samukawa north IC5㎞, also Ken-O Road Ebina IC ~ Sagamihara IC10㎞, Tokai-Kanjo Expressway Ogaki-nishi IC ~ Yoro opening of JCT6㎞ Is scheduled.

We also received a new business license on April 20, 2012.

・ Tokai-Hokuriku Expwy (Shirotori IC-Hida Kiyomi IC) 4-lane project

・ Tokyo Outer Ring Road (Central JCT (tentative name) to Tomei JCT (tentative name))

・ Nagoya Loop Line 2 (Nagoya-nishi JCT-Tobishima JCT (tentative name))

・ Smart IC (6 places)

About, about the road maintenance special measures law Article 3, we received business license of the Minister of Land, Infrastructure, Transport and Tourism.

We recognize that this is based on the direction and the expectations of the region, which were presented by the Ideal Committee and Ministry of Land, Infrastructure, Transport and Tourism. In the future, we would like to start the business promptly and work toward the completion as soon as possible.

 

Next is the usage status of ETC.

In the latest 4 / 6-4 / 12, the daily average number of vehicles used decreased 5.3% compared to 3 / 9-3 / 15 of the previous month, but the daily average utilization rate was 89.1% to 89.6%, 0.5%. It is increasing.

By weekday and weekends and holidays, the average usage rate on weekdays increased from 89.2% to 89.9%, 0.7%, and the average usage rate on weekends and holidays increased from 88.7% to 88.9%, 0.2%.

The cumulative number of onboard devices installed at the end of March increased by 1.3% from the end of February, increasing by 480,000 units to about 37.64 million units.

 

Next is the situation of the service area.

Sales in the service area in March were ¥ 14,121 million, 116.8% of the previous year's level. This was a big positive in March, as a reaction to the decrease caused by the Great East Japan Earthquake that occurred in the same month last year.

Breaking down sales by department, the “Food and Food Sales Department” increased 123.2% year-on-year to ¥ 1,940 million.

A further breakdown of the "Food and Beverage Sales Division" is that the "Food and Beverage Division" was 120.4% higher than the previous year by 620 million yen, and the "Food Sales Division" was 124.7% up by 1,320 million yen. We now have.

Next, in the “service sector (rest in, bath)”, it was 98.4% down from the previous year, down 1 million yen.

Lastly, in the “Gas station division”, the refueling volume was 98.2% compared to the previous year, down from the previous year, but the unit price difference was 5 yen, so sales were 102.8% compared to the previous year and 104 million yen. It is increasing.

Sales in the service area in fiscal 2011 were 161.3 billion yen, 101.7% of the previous year. Under such circumstances, looking at each road, the Higashi-Meihan Expressway Han Express was strong at 115.0%.

Higashi-Meihan believes that even after the Expersa Gosho was grandly opened, it has been well received by many customers throughout the year.

Breaking down sales by department, the “Food and Food Sales Department” decreased 99.8% year-on-year to 300 million yen.

A further breakdown of the “Food and Food Sales Division” is that the “Food and Food Sales Division” decreased 99.1% year on year to ¥ 0.4 billion, and the “Product Sales Department” 100.2% year on year to increase ¥ 100 million.

Next, in the “service sector (rest in, bath)”, it was 105.5% compared to the previous year.

Finally, in the “Gas station division”, the refueling volume was 102.6% over the previous year, exceeding the previous year, and the unit price difference was +12 yen, so sales were 107.7% over the previous year and increased by 3 billion yen.

 

The next topic is traffic forecasts on Expressway during the Golden Week.

We just announced on the 30th of last month, and we will inform you again as Golden Week is approaching.

This year, due to the opening of the Shin-Tomei Expressway the conversion of the Okazaki area to three lanes, we predict that the number of traffic jams of 10 km or more will decrease by 20% from 200 to 160 compared to last year.

Congestion peaks are from May 3 to 4 for Out-bound lines and May 3 to 5 for In-bound lines, and the number of congestions over 10 km is 160, of which 15 is over 30 km.

NEXCO CENTRAL, from April 14 when Shin-Tomei Expressway opened, we Large service so that you can easily see the mobile phone road traffic information site "iHighway Central Japan" on the screen of your PC or smartphone. Please use it in conjunction with the traffic jam prediction guide, official website, etc. that you handed out to us, and use it in a distributed manner to avoid traffic jams.

In FY2011, 55 people were killed in traffic accidents on the NEXCO CENTRAL Expressway, which is a large increase compared to FY2010. Three fatal accidents have already occurred in April, and we ask our customers to keep their speed down and drive safely.

 

The next topic is planned discounts announced by Hachioji Regional Head Office and Nagoya Regional Head Office on April 18.

The ChuoExpwy, which was fully opened in 1982, will celebrate the 30th anniversary of its opening on November 10th this year, and we will be releasing the "Short Trip Shinshu Highway Plan" as the first commemorative project.

This product is a good-value product that includes a Expressway round-trip from the Tokyo area or Nagoya area to the central and southern areas of Nagano Prefecture and unlimited Expressway in the central and southern areas of Nagano Prefecture. It is valid.

Applications will be accepted from NEXCO CENTRAL official website from May 10th and available from June 1st. Please apply by the day before the scheduled date of use.

Please use this trip plan from early summer to summer vacation and enjoy a comfortable Expressway trip to the central and southern areas of Nagano Prefecture.

 

The next topic is about holding the "2nd Highway Gourmet Machinaka Grand Prix".

The “Highway Machinaka Grand Prix” that was held in “Machinaka” for the first time in May of last year and received great popularity was held again this year on Saturday, May 19th and Sunday, May 20th at Nagoya Sakae no Hisaya Odori Park. It will be held.

This event is a gourmet festival in which customers who come to the venue will eat highway gourmet food and vote to decide "No. 1 delicious food".

This time, we have prepared a total of 25 types, 6 types of "popular menus" that have been well received by customers, and 19 types of "new menus" developed for this event. In addition, we will hold a "Let's eat and win big lottery" to win attractive prizes such as pair tickets for amusement parks and hot springs, anime goods, etc.

In addition to sightseeing introductions along the Expressway and local entertainment on the day, we also plan stage events such as "Special mission squadron Go Busters" and "Smile Precure" that are very popular with children, so we prepare events that families can enjoy Doing.

Please take this opportunity to eat up the highway gourmet that pops out of the "Expressway area" into "machinaka" and aim for attractive prizes.

 

Lastly, I would like to report on the status of the internal investigation committee regarding cases such as income tax law violation cases that our former employees caused.

In addition to investigating the facts of the case, the in-house investigation committee also examines the ideal way of doing business centered on the office, and in light of the Income Tax Law violation and fraud cases, compensation relationship such as land, registration relationship, etc. We have been conducting a company-wide survey.

Currently, Ministry of Land, Infrastructure, Transport and Tourism is also strongly saying that the factual relationship is fully clarified, and we are in the process of finalizing it, including additional research, and as soon as it is put together, the report will be sent to me. It is supposed to come up. Based on the report from the Investigation Committee, we would like to quickly compile internal dispositions and recurrence prevention measures, coordinate with related organizations, and publish them together with the report.

Although I have a feeling that the specific time of publication will be as soon as possible, I would like to ask for some time now for the Investigation Committee to properly compile the report.

These are the topics we have prepared today.

 

[Moderator]

Now, I would like to receive your questions from now on.

 

[Reporter]

The traffic volume is increasing due to the opening of Shin-Tomei Expressway. What do you think the president thinks about this number?

 

[Chairman and President Kaneko]

Initially, we expected a 10-15% increase, but in reality it is well above. It's just before the opening, so I think it's the result of a lot of customers who want to run once because of expectations for the Shin-Tomei Expressway Tomei.

 

[Reporter]

You are focusing on the service area, but is it that you think about this sales as well?

 

[Chairman and President Kaneko]

I also went to NEOPASA Shimizu and NEOPASA Shizuoka after the opening ceremony. It was already full in 20 to 30 minutes after opening. I think that not only the customers who used the Expressway, but also the local people had high expectations.

 

[Reporter]

There were earthquakes in the beginning of fiscal 2011, but I think the recovery was relatively quick. Please tell us your outlook on how you are looking at sales and traffic trends in the service area based on the recent situation.

 

[Chairman and President Kaneko]

The traffic volume has decreased by 1 to 2% compared to the previous year. Immediately after the earthquake, the service area was affected especially near the Kanto area, resulting in a decrease in sales. I think that it is almost back now. The traffic volume is good for large vehicles, but a little more for small vehicles. I hope that the opening of Shin-Tomei Expressway this time will be a trigger.

 

[Reporter]

Regarding the fall of Shin-Tomei Expressway 's rockfall and glass, there was a rockfall accident while there was expectation as an emergency transportation route when the Tokai earthquake occurred, but based on this rockfall, overall safety measures such as reviewing Please let me know if you have any consideration or measures.

 

[Chairman and President Kaneko]

We are currently inspecting falling rocks. Of course, we are fully aware of the embankments, cut soil, tunnels, and bridges that we directly deal with, including safety aspects. The place where the rocks fell this time was on an adjacent private land, where we were not working on the construction. I built a Expressway below it, but the construction of the Expressway was completed in 2005, and there were no rockfalls even after a big earthquake last year. I didn't expect it to fall. However, it is a fact that a rock fall has occurred, so as a temporary measure, a steel net is put on the rock mass at the site, and a large sandbag protection fence is constructed in case the stone falls.

Also, within the range of about 1 km from this point, we found that there are three similar rock masses on the top of the mountain, so we are taking the same emergency measures. In addition, we are conducting an emergency inspection of a similar location at Shin-Tomei Expressway Tomei 162km.

 

[Reporter]

Regarding the rock fall of Shin-Tomei Expressway, is there any effect that the opening time of Shin-Tomei Expressway has been accelerated?

 

[Chairman and President Kaneko]

I don't think so at all. Construction on this part was completed in 2005, and it has already been 6 years. Moreover, there were no rockfalls after a big earthquake like last year, so I don't think there is any impact from accelerating the opening of the year.

 

[Reporter]

Regarding the tax evasion investigation committee, please tell me the members of the committee and the number of meetings.

 

[Chairman and President Kaneko]

Members of the committee consist of external members and officers and employees of the Company. I have been talking about this during the interim report of the Investigation Committee in November, so please see the interim report for details. The committee meets 6 times in total, and the final day is March 23. I think I have to make a final summary about once more.

 

[Reporter]

I think you said at the time of the February regular meeting that you wanted to make an announcement immediately after the judgment, but has there been any change since then?

 

[Chairman and President Kaneko]

The situation has never changed. We are going back to the time of privatization, and we are investigating the total number of cases, especially regarding compensation. The documents have been confiscated by law enforcement authorities and have not yet been returned to us. It means that it is taking time because we are investigating the documents that we have at hand and hearing about individual individuals. Of course, I am aware that the judgment has been finalized, so I have the feeling that it will be as soon as possible.

 

[Reporter]

Why did you come to investigate additional compensation?

 

[Chairman and President Kaneko]

This is because we thought that we should thoroughly investigate and fundamentally revise it.

 

[Reporter]

Was it originally not the subject of the survey?

 

[Chairman and President Kaneko]

In the investigation committee, there was such a discussion as to whether speed should be prioritized or thorough, and it was decided to go back to the point of privatization and crush each and every compensation item.

 

[Reporter]

When did the Ministry of Land, Infrastructure, Transport and Tourism give instructions to clarify the whole picture?

 

[Chairman and President Kaneko]

Immediately after the incident was reported, it is said that the whole story should be clarified.

 

[Reporter]

It seems that the investigative committee is open once a month when all six times, and it seems that the last is March 23 and it is not open this month. Is there such an influence such as the busy work due to the opening of the New Shin-Tomei Expressway?

 

[Chairman and President Kaneko]

This matter has nothing to do with the opening of Shin-Tomei Expressway.

 

[Reporter]

At the time when the Ministry of Land, Infrastructure and Transport has instructed, is it at the end of October when a former employee was first arrested? Was it a document?

 

[Chairman and President Kaneko]

Not a document. Anyway, I was told to thoroughly investigate all the facts.

 

[Reporter]

Does that mean that you are in the process of investigating all the small and large privatized and post-2005 compensation projects handled by NEXCO CENTRAL?

 

[Chairman and President Kaneko]

That's right.

 

[Reporter]

Is the investigation committee doing the investigation?

 

[Chairman and President Kaneko]

The Investigation Committee is investigating.

 

[Reporter]

Does the fact that you are investigating compensation mean that the prosecutor's office has reported that there was back compensation? I think that there was no injustice until now, but is it the idea of the president that it is better to investigate at this opportunity than the prosecution pointed out?

 

[Chairman and President Kaneko]

As I have said before, we believe that this is an opportunity for us to change. This is the main factor. I think that it is necessary to change not only the procedural part such as changing the process or reviewing the approval authority, but also the more fundamental part.

 

[Reporter]

What is the total number of compensation projects subject to the survey in the seven years after privatization?

 

[Employees]

There are about 15,000 properties including land properties.

 

[Reporter]

I think it would be quite difficult for the investigation committee to investigate about 15,000 cases with a limited number of people, but I feel that the amount of work is quite huge.

 

[Chairman and President Kaneko]

It's huge, so I spend a lot of time.

 

[Reporter]

I think that this case was a case that was continued from the old road public corporation and straddled privatization, but among the approximately 15,000 cases mentioned earlier, compensation negotiations etc. are ongoing at the time of privatization. Can I think that it is also included?

 

[Chairman and President Kaneko]

It contains.

 

[Reporter]

Regarding the four lanes that received a new business license, it was frozen by the Democratic Party's government from changing from concrete to people, but this time it turned around 180 degrees and the budget was attached, but frank impressions and impressions Please tell us.

 

[Chairman and President Kaneko]

I mentioned frankly, "outside the ring" and "the missing link not only the 4-lane Mei-Nikan Expressway" is also included, are thought to contribute also to the activation of the resolve and the economy of the traffic congestion, recognized as an important business I wanted to move forward with business. Therefore, we take this permit very positively.

In particular, we think that the effect of improving safety will be great if four lanes are used. Unfortunately, there was a big accident in the section where the business license was received, and not only the locals but also our company wanted to make it four lanes as soon as possible.

 

[Reporter]

It is said that you will increase the number of parking lots to alleviate the traffic congestion in the service area of Shin-Tomei Expressway Tomei on Golden Week. Is there anything you have done in Tomei in the past?

 

[Chairman and President Kaneko]

There wasn't enough space in Tomei, so I've never done it.

 

[Reporter]

I think there will be a sales gap between the original Tomei service area and the new service areas such as NEOPASA when Shin-Tomei Expressway Tomei is opened.

 

[Chairman and President Kaneko]

For example, by making it an attractive service area such as EXPASA's residence, or by planning an event that suits the area, we would like to invite not only customers who use highways but also local customers. I will.

 

[Reporter]

Golden Week starts on the 27th. When traveling from Nagoya to Tokyo, you may be wondering which way to go, Shin-Tomei Expressway or Tomei. What kind of usage do you recommend?

 

[Chairman and President Kaneko]

If the heading to Tokyo directly from Nagoya, Shin-Tomei Expressway towards the gradient is also gradual and curve also slow, because the distance is the same short charge about 10km, Shin-Tomei Expressway is not easy to run person who became your the Is not it.

However, I think there may be a line of stay at the entrance of the Shin-Tomei Expressway service area, so please check our official website before using.

 

[Reporter]

Please tell us the viewpoint recommended by the president under Shin-Tomei Expressway.

 

[Chairman and President Kaneko]

The service area is Suruga Bay Numazu SA. Suruga Bay is a magnificent view below 180 degrees.

From the main line, we recommend Mt. Fuji, which you can see from Shin-Shimizu JCT towards Tokyo.

 

[Moderator]

The special Shin-Tomei Expressway information website will open on the 27th, so I hope you will take advantage of it. It seems that the questions have been interrupted, so this ends the regular press conference.