November 19, 2010 Kaneko Chairman and President Regular Meeting

(Moderator)

Thank you for waiting. The 61st regular press conference is about to begin.

 

(Chairman and President)

Thank you for gathering even though you are always busy. Today we have 6 topics in total. As always, start with the current state of the business.
Toll revenue in October was 36,924 million yen, down 1.8% from the same month the year before. The breakdown is 34,315 million yen, 0.5% increase in high speed, and 2,609 million yen, 24.8% decrease in one-owned.
On the other hand, the average number of passengers in October was 1,943,000 units, an increase of 12.6% year-on-year. The breakdown is that the daily average for high speed is 1,453,000 units, up 6.5%, and for Hirai is 491,000 units, up 35.8%.
In terms of the number of passing vehicles, in addition to an increase due to free social experiments centering on general toll roads, and toll sections such as highways also increased from the previous year, the overall increase was 12.6% from the previous year.
On the other hand, fee income was negative compared to last year due to the impact of the free social experiment.
The ETC discount amount for this month was 30.6 billion yen, a 1.6% increase from the 30.1 billion yen for the same month last year. The discount rate is about 45.3%.

Next is the construction situation. Mei-Nikan Expressway Nagoya-minami JCT to Taka Needle JCT, which is located in Meikankan, we are currently working on sound insulation walls and facility construction with the aim of opening this year.

Next is the situation of ETC. As for the usage status of ETC excluding the free social experiment section, the average daily number of vehicles increased by 8.7% and the daily average utilization rate was compared with the latest 11 / 5-11 / 11 and 10 / 1-10 / 7. It was 88.0% to 88.4%, plus 0.4%. By weekday, the average usage rate on weekdays was 88.1% to 88.4%, plus 0.3%, and the average usage rate on weekends and holidays was 88.0% to 88.4%, plus 0.4%. doing.
The cumulative number of vehicle-mounted devices installed at the end of October was 1.0% (310,000 units) higher than at the end of September. The total number is 310,000, which is about 32.82 million units nationwide.

The status of the service area. October service area sales were ¥ 13,370 million, a year-on-year increase of 107.7%. By road, the Higashi-Meihan Expressway Han Express was particularly strong at 158.7%, Kisei 146.5%, and Ise 114.0%.
Higashi-Meihan Expressway Expressway is well received by many customers for its Expersa office, and we believe that Iseido and Kiseido are the effects of free social experimentation.
If we divide sales by department, the “Food and Food Sales Department” increased by 770 million yen, or 107.7% from the previous year.
A further breakdown of the “Food and Beverage Sales Division” is that the “Food and Beverage Division” was 107.1% up from the previous year, an increase of 238 million yen, and the “Food Sales Division” was 108.0% up to 492 million. It has increased by 10,000 yen.
Subsequently, in the "service sector (rest-in, bath)", there was a decrease of 15 million yen, 61.5% of the previous year, partly due to the effect of large-scale improvement.
In the “GS department”, the refueling volume was 106.6% compared to the previous year, exceeding the previous year, and the unit price difference was also +3 yen, so sales were 108.9% compared to the previous year and increased by 254 million yen. I will. The above is the current state of business in October.

Next is the second topic.
ChuoExpwy Ishikawa parking area (In-bound line) will be reopened on December 17th.
In this renewal, considering that the Ishikawa parking area is the last parking area heading to the city center, we aimed to create an area that meets the needs of customers visiting not only for sightseeing but also for business.
By converting the restaurant to a convenience store, we have improved convenience such as ATMs.
In addition to the “Yoshinoya” that is familiar with “delicious, easy, and fast”, the new noodle shop Yamayuri and “Gourmet restaurant Ginnante” have opened, and coffee is available at the cafe and bakery “Expressway”. And serve fresh bread.
At Expressway, the new hamburger shop “R Burger”, which is only open here, is staffed with the highest award in the specialty store category at the “2nd SA / PA customer service contest”. We welcome customers at the customer service level.
In the Ishikawa parking area, CO ₂ We are working to create an environment-friendly area by introducing LED lighting to save electricity and install energy-saving air conditioners.
When using Chuo Expressway to head to the city center, please drop in at the renewed Ishikawa PA.

The third topic is "Oiseki" and "Osechi".
NEXCO Central Japan uses "NEXCO Central Japan Online Mall", an internet shop operated by Central Japan Exis, to select "special gifts" from local specialties, and "Hoshiben", a slightly extravagant bento lunch box on the Expressway We accept reservations for the famous Japanese restaurant "Osechi" until December 23.
For the year-end gifts, we have prepared carefully selected gems such as "Shiki no Chawanmushi" from Ryotei Mangaya, which has been used to keep goodwill in Fukui Prefecture. Please use the "Central Japan Online Mall" for "year-end gifts" for those who take care of you.
A limited number of 19 kinds of colorful osechi are served by the chef of a famous ryotei restaurant that handles `` speed dial '' such as the beef nabe restaurant "Ningyocho Imahan" which opened in 1897. I prepared it. Please celebrate the New Year in a gorgeous way at the famous restaurant "Osechi".
In addition, premium Drivers' using the card, if you purchase from the "point Toku Toku Mall" to Japan in the NEXCO is to open, because the point will be 20 times, please use all means at this opportunity.

This is the fourth topic. Tokai-Hokuriku Expressway The Hida Kiyomi interchange and the Shirakawago interchange, located between the Hida tunnel, make effective use of the spring water, and we are pleased to introduce the prospect of completion.
The spring water from the Hida tunnel, which is the energy of this power plant, is used for emergency equipment of the tunnel, but about 0.8 tons of spring water is discharged to the neighboring Shogawa river every second. The power generation this time will be performed using this spring water head of about 8 m.
The power plant expects to generate about 50kw of electricity per hour. This amount of power is about one-third of the lighting equipment in the Hida tunnel, and if you replace it with the electricity bill, you will save about 4 million yen per year.
Also, CO ₂ Converted to the reduction amount, it will be 195t per year. This CO ₂ The reduction amount is equivalent to 520 drum cans of 200 L and the same effect as forest of 18.5 ha in terms of forest absorption amount, which is equivalent to about 4 areas of Nagoya Dome.
The cost of the maintenance of the power plant this time is about 100 million yen. This project is implemented as a social contribution project with the cooperation of the Expressway Social Contribution Council.
In addition to this, NEXCO Central Japan is promoting environmentally friendly initiatives that utilize natural energy.
Regarding solar power generation facilities, we are carrying out with the cooperation of the national social experiment and the Council for Social Contributions, and we have about 560 kW installed at 10 locations including small ones. In addition, there are about 2,300 kW in 11 places including those currently under construction as those scheduled to be newly developed.
In addition to solar power generation, Hokuriku Expressway Tokumitsu PA plans a wind power generation facility of about 16kw.
We will keep you informed of future efforts as the business progresses.
Finally, the completion ceremony of this hydroelectric power generation facility will be held on December 13 (Monday) in front of the electrical room on the Shirakawa side of the Hida tunnel. Mayor Shirakawa will be present as a guest at the ceremony, and I will attend as well. I would like everyone to come and see us.

Next is the fifth topic. This is the first time we have reported on environmentally friendly activities in the Nagoya and Higashiyama Forests, where we are planting regional seedlings in collaboration with the local community.
We will also report on the planting situation that was first carried out in the green space in Nagoya city, which was explained at the conference last month.
As part of promoting regional cooperation and contribution to the environment and a sustainable society, we are promoting activities to utilize regional seedling cultivation technology in areas other than Expressway.
On October 24, we planted trees for the first time except on Expressway with kindergarten children, Nagoya citizens, and council members in the "Hometown Forest" area of the Toda River Park in Nagoya City. .
Hundreds of people participated, and Moriso and Kiccoro jumped in.
On the 21st of the day after tomorrow, we will plant the first local saplings in this area around Osaka Pond in the Higashiyama Forest with the citizens of Nagoya and the council members. We think this is a good opportunity for citizens to experience planting local seedlings. The date, time and place of the event are as stated.
We will continue to promote the creation of roads (eco roads) in consideration of the natural environment through the use of local seedlings.
That was the fifth topic.

Finally, a topic about overseas business. There was an article about the overseas business development of NEXCO3 company in the newspapers yesterday, but I will explain the overseas business development of our company again.
As we have stated so far, we will utilize our technology and know-how to contribute to the development of Expressway in countries such as Asia, and at the same time make our overseas business a major pillar of our profitable business. I want to grow it.
We are currently opening an office in Vietnam and starting activities such as receiving orders for consulting work, but in order to finally deal with a wide range of road construction and management, we started a cooperation system between Expressway companies. I think it is necessary to face this situation with an all-Japan system. The reason is
(1) The point that you must win the competition with other countries
(2) In the road business, since the project itself is large and the project period is relatively long, it is necessary to consider financing and risk diversification.
I think there are two of them.
In any case, for the development of overseas business, we will consider with a sense of speed so that we can play a role that is suitable for being "the world's highest Expressway company", including the cooperation system between road companies. I would like to inform you of the situation.
That's the six topics I prepared today. We will be happy to answer any further questions.

 

(Moderator)

So I'd like to take your questions.

(Reporter)

As for the overseas business you mentioned earlier, how about three new companies?
There are general technology laboratories funded by the three companies, but is it okay to consider establishing a new company in addition to that?

(Chairman and President)

We haven't gotten to the point of creating a company yet. As a general theory, such a thing may appear in the process of proceeding, but at this stage it has not reached that point. We are currently studying what kind of cooperation system we can take and what we can do to ensure that we are able to compete with international competition because of the business we are currently doing.

(Reporter)

In relation to that, I think it is another country, but the Vietnam project is the closest place in your company, but where is the country that will become a rival, and what is the issue? There are some points such as diversification of risks, but what are the points and issues that must be strengthened in ordering activities?

(Chairman and President)

First of all, I think the most important thing is how to draw the project scheme. Next, I would like to use public funds as much as possible because it is a business that requires a large amount of funds, such as the risk diversification I mentioned. I think this is an issue, how to proceed. I think Korean rivals will be our immediate opponents.

(Reporter)

I think cost is also an issue when it comes to competing with rivals, but I think that in the story of the former president, it was said that it was not the full specification of Japan but the local specification, but what kind of progress is such examination? ?

(Chairman and President)

I think this is a very good point. I think that is one of the major issues. I think that this is one of the issues that must be considered in the technical field, as we can provide local needs that meet quality and cost.

(Reporter)

Regarding the overseas business, it is said that the method of going to the all-Japan system has not been decided yet. Should you think about how much span you will decide the concrete method?

(Chairman and President)

First of all, there is consensus on what kind of cooperation the three companies should have, how to establish a system of cooperation, and how to make a plan as soon as possible. I am working on making a plan as soon as possible.

(Reporter)

For example, is it urgent during the year?

(Chairman and President)

I hope I can, but I'm not sure if the plan can be done by the end of the year or if it will be over the year. In addition, it does not mean that it is decided only by talking once, so I think that we will talk several times.

(Reporter)

Regarding the current overseas business, when I interviewed you earlier, I heard that you are the president of three Expressway companies and you have a meeting to discuss various things through direct meetings, but each company directly Have you already talked about what the top of the group would like to do for overseas expansion?

(Chairman and President)

We are actually gathering at three companies and talking. The day before yesterday, including the NEXCO 3 companies plus the other 3 companies, or the directors of the Organization, this is to hold such meetings on a regular basis. I invited him to talk. Among them, we talked about overseas business.

(Reporter)

Another point is that the shape is being considered now, but I would like to ask you what kind of options you have, and what you have in mind, other than creating a new company together.

(Chairman and President)

I think there will be some. I think that there is only one way to cooperate with each project, and we really want to close the story of Vietnam as soon as possible, but depending on the situation, not only Central Japan but also , East Japan, West Japan, Shuto Expressway, Hanshin Expressway, I think that there may be a request for help, so as a scheme, I think that one way is to take a cooperation system for each project. I think that even overseas business is a fairly wide field, so I would like to not only do consulting that I have been doing until now, but finally design, construction, operation and management, but at once I think that there are various schemes for creating a new company that only has a certain part, whether it is possible to create a new company that goes that far. It means that we are considering such things.

(Reporter)

It is explained that in the overseas development, from design and construction to management, the ultimate aim is to be a total, but if you can achieve it, you have the aspiration to make it a big pillar of profit, but how much profit can you expect? Although it has a track record in consulting business now, compared to that consulting business, even if this is the limit in consulting business, for example, if it is a package, such things can be seen, the scale of such revenue I would like you to tell us what you feel like.

(Chairman and President)

At the moment, the fact is that we haven't gotten that far yet, so when it comes to launching a new company, of course, like the question you asked, how much profit do you have? As you pointed out, if you do not create it, you will not be able to establish a company. To the best of my knowledge at this stage, it is still only in Vietnam, and what kind of activity is in East and West, and what kind of so-called financial figure is it? However, the situation is not clear to everyone. Therefore, it is said that, including such things, we will first examine it and what kind of form it will be.

(Moderator)

So, if you have no other questions, this will open a regular meeting. Thank you very much.