May 28, 2014 Kaneko Presidential Meeting

[Moderator]

Thank you for waiting. From now on, we will start the 95th regular conference.

 

[President Kaneko]

Thank you for joining us today despite your busy schedule.

Before we start the meeting, we will inform you.

As reported in last week's report, he will retire after the end of June. The efforts to prevent recurrence and improve safety triggered by the accidental fall of the ceiling plate of the Sasago Tunnel have just started by formulating the “3-Year Plan for Improving Safety” and implementing organizational reform. I have decided to retire after reaching the one milestone of expiration of term.

Even under the new system, we will continue to steadily take measures to prevent recurrence and improve safety, and we will firmly respond to the bereaved family of the accident.I will support the new management, including the bereaved family response. I would like to continue. It will be decided at a general meeting of shareholders to be held on June 25, etc. Until then, I am sorry, but I will refrain from making detailed comments regarding the change of president.

On the day of the general meeting of shareholders, we would like to have a meeting with the new president and myself.

 

[Business status (April 2014)]

Please see document 1.

Toll revenue in April was 48,218 million yen, an increase of 18.5% from the same month of the previous year, and the average number of traffic per day was 1,831,000 units, a slight decrease of 2.0% from the same month of the previous year. It was

As mentioned in the commentary, the weekday morning and evening discount introduced on April 1, 2014 is a mechanism to return the discounted amount to the next month, so the fee income shown in the table is the income before discount Is included. In addition, since the rate discount system was reviewed in April following the end of the discounts for the convenience promotion business, fee revenues have increased year-on-year.

On the other hand, although the number of vehicles passing through has decreased slightly from the previous year, we would like to proceed with analysis of the impact of the introduction of the new toll system, etc., while continuing to monitor future toll revenue and traffic trends. I think.

Also, please refer to Document 2 handed out to you. With the new ETC discount system from April, we planned to reduce the discount rate for holiday discounts to 3%, but due to the sudden change mitigation measures based on the basic policy of the country, we will continue to offer 5% discount.

After July, the discount will be 30% as originally planned.

Regarding the change in the discount rate of ETC holiday discounts and the new ETC discount system, we will continue to strengthen public relations on our official website, banners and pamphlets, but even the mass media would like to report it. Thank you for your cooperation.

 

Next is the construction situation.

I will report the progress of the roads scheduled to open in 2014.

Introduction Ken-O Road is. And promoting business in collaboration with the Ministry of Land, Infrastructure and Transport Ken-O Road For Sagamihara Aikawa interchange - Takao interchange 15km, and then opened to already inform you we are as June 28. With this opening, Tomei Expwy, ChuoExpwy-Kan-Etsu Expressway is Ken-O Road connected by, strengthening of the road network at the time of congestion mitigation and disaster due to the formation of a wide area network, such as the support of local activation is expected .

For the Samukawa Kita Interchange to Ebina Junction 4km, we are currently proceeding with the construction work on some bridges and are also preparing for the construction of pavement, signs and information boards.

 

Next is Shin-Tomei Expressway. Although it is 55 kilometers from the Hamamatsu-Inasa junction of Shin-Tomei Expressway to the Toyota-higashi junction, the tunnels and bridges are almost completed, and some cutting work is underway, as well as paving and marking We are carrying out construction such as information boards.

As I told you at the interview until last month, landslides on multiple cut slopes have occurred, soil that contains pyrite and heavy metals of natural origin has occurred more than expected, and some bridges Since subsidence occurred on the abutments and piers, we are currently studying countermeasures and scrutinizing the process.

Opening within 2014 is extremely difficult, but we will continue to work with the understanding and cooperation of the local people.

 

Next is Maizuru-Wakasa Expressway. The opening of Maizuru-Wakasa Expressway will be explained later in a topic.

 

Next is the usage status of ETC. Please see page 2 of Document 1.

The average daily usage rate in April was 91.3%.

 

Next is the situation of the service area.

Sales in the service area in April were 13,911 million yen, down 1.6% from the same month the year before.

Sales of the Food and Beverage Sales Division were down 5.2% year-on-year. This year, sales were sluggish compared to last year due to the poor day alignment in the second half of April during Golden Week.

Sales in the Gasoline Division increased 7.5% year-on-year. In addition to the increase in the amount of refueling, the unit price of gasoline increased by 12 yen per liter.

 

[3-Year Plan for Improving Safety]

This report describes the status of the “3-Year Plan for Improving Safety” formulated in response to the Sasago Tunnel ceiling plate accident.

The materials have not been distributed, but the 7th Committee for Experts on Safety Improvement was held in our company on the other day 19th. At this expert committee, we reported on the status of the FY2013 “3-Year Plan for Improving Safety” initiatives. On the other hand, from the expert committee, regarding the overall status of efforts,

• We are steadily implementing a wide range of initiatives according to plans toward our goals.
• In fiscal 2014, it is important that the PDCA cycle of "3-Year Plan for Improving Safety" be continued and firmly carried out.

As a point to be noted in the execution process of future efforts,

• In order to share safety policies and plans, as well as on-site issues, communication between top management and the on-site is necessary. At that time, how the middle class is involved is also important.
• Efforts to continuously evaluate and improve the effects of organizational reforms are important.
• Regarding business plans for improving safety, it is important to establish a response policy in the event that the plan does not proceed as planned and take prompt action.
• It is important that we can see the direction to value the technology that supports safety.

I also received advice.

We will continue to steadily implement the “3-Year Plan for Improving Safety” based on the opinions of the Expert Committee.

In addition, we will report on the removal of tunnel accessories when the Hokuriku Expwy was closed at night. See Appendix 3.

Hokuriku Expressway 's Tsuruga tunnel and Imajo tunnels have ventilation towers and ventilation ducts installed at the top of the tunnel pit from May 7th (Wednesday) to 18th (Sunday). The removal was completed at the night traffic closure. As a result of this removal, we have completed the removal of the ceiling panels and ventilation ducts of the tunnel that we planned.

However, as shown in Photo 3, the wall next to the tunnel entrance still remains, and that part will be closed at night on Monday, June 2 and removed.

Close roads during low traffic hours from 20:00 to 6:00 the following morning. As shown on page 2 of Document 3, please use Route 8 as a detour for the closed sections. Also use the Tokai-Hokuriku Expwy as a wide-area detour.

In addition, lane regulations will be implemented day and night. Information on traffic congestion during the construction period will be provided at iHighway Central Japan, Highway Telephone etc., so please check it out and allow yourself enough time.

We apologize for any inconvenience to our customers, but we ask for your understanding and cooperation.

 

[Opening of Maizuru-Wakasa Expressway]

See Appendix 4.

Approximately 39 kilometers between the Obama Interchange and the Tsuruga Junction on Maizuru-Wakasa Expressway will open at 15:00 on July 20, as already announced. Looking at the media reports, I feel that the expectations of the people in the area are very high, and I am very pleased.

With the opening of this section, the Maizuru-Wakasa Expressway will be fully open for 162 km from Yoshikawa Junction in Hyogo Prefecture to Tsuruga Junction in Fukui Prefecture. With the opening of this whole line, the Chugoku Expressway, Meishin, and Hokuriku Expressway will work together to form a wide area network of the Kinki, Tokai, and Hokuriku regions, and will greatly contribute to tourism promotion, industrial promotion in the Wakasa region, and recovery in the event of a disaster I think.

We have been conducting business for this section with the planned opening in March 2015, but at the beginning of summer vacation, it will be opened about 8 months ahead of schedule. This is also the result of the cooperation and support of the landowners, who provided valuable land, and the local community, as well as Fukui Prefecture and local governments along the railway lines. I would like to take this opportunity to thank you very much.

 

[Fast travel "Actually, that's all Mie!" Drive plan]

See Appendix 5.

Please see the flyer that you handed. With this product, the "Tokyo departure and arrival area course" is a set of Expressway roundtrips from the Tokyo area to the Mie area and unlimited rides in the Mie area, and "Around the tour area" where the Expressway in the Mie area is a flat-rate unlimited ride. We have prepared an all-you-can-ride course.

Applications will be accepted from NEXCO Central Japan's official website from 15:00 today and will be available from July 1st. Please apply by the day before the scheduled date of use.

Only those who apply for this plan can receive special benefits at local tourist facilities and service areas. Take this opportunity to use the Expressway to go to Mie Prefecture, which is full of charm.

 

[New opening of Atsugi parking area on the Ken-O Road O Expressway]

See Appendix 6.

Ken-O Road together to between Sagamihara Aikawa Interchange - Takao interchange is opened, on June 28, Ken-O Road Atsugi parking area inward turning and outer loop commercial premises two places of the will open at the same time.

The Atsugi Parking Area provides "local gourmets around the country" under the supervision of the organizations participating in the "B-1 Grand Prix", based on the concept of "local gourmet areas nationwide."

This is the first official spot on the B-1 Grand Prix on the Expressway.

In addition, we will replace "local gourmets throughout Japan" in about three months so that our customers can visit as often as we like.

From June 28, when it opens, as a "summer noodle ride", Katsuura Tantanmen in Chiba Prefecture, Misaki Tuna Ramen in Kanagawa Prefecture, Yokote Yakisoba in Akita Prefecture, Echizen Sakai Spicy Soba in Fukui Prefecture, and other local gourmet foods. Will be provided.

We will open this Atsugi parking area to the media on Friday, June 27, the day before the opening. Details will be announced later, but I would appreciate it if you could cover it.

 

[Highway customer appreciation fair]

See Appendix 7.

Thanks for your patronage for 33 days from June 2nd to July 4th, in our 139 service areas and parking areas, summer clothing and imported miscellaneous goods that are active in the coming season, popular items We will hold the "Highway Customer Appreciation Fair" where you can purchase souvenirs, meal menus, etc. at prices that are cheaper than regular prices.

Some stores, convenience stores, gas stations, etc. are not eligible. Please take this opportunity to stop by the service area and parking area where you can save money.

NEXCO CENTRAL Group will carry out seasonal campaigns throughout the year, aiming for service areas and parking areas that customers can visit as often as possible.

These are the topics we have prepared today.

[Moderator]

Now, we are ready to receive your questions.

 

[Reporter]

In the explanation above, you said you would like to support the new management team even after the change of president, but please tell us more concretely.

 

[President]

I have caused such a big accident, and have dealt with various things so far. Although I am less than a top management, I would like to continue supporting new management.

 

[Reporter]

Would you like to understand that somehow it will remain and be supported within the organization?

 

[President]

exactly.

 

[Reporter]

What kind of post hasn't been decided yet?

 

[President]

I think it will be in the form of a counselor or advisor, but I think a new management team and a new president will be decided.

 

[Reporter]

Chubu Electric Power as the new president of Miyaike but was Mr. chosen, why in what circumstances Miyaike Please tell me what has become Mr.

 

[President]

I will refrain from speaking to me about the specific circumstances behind the selection. Mr. Miyaike is the Vice President after the Civil Engineering and Construction Manager at Chubu Electric Power. Aiming to be a company trusted by society with a corporate culture that puts safety as the highest priority, we are a specialist in structures specialized in civil engineering, and have been in charge of long-term management at Chubu Electric Power. Since he was born in Nagoya and is familiar with the situation in the Chubu region, the electric power company has a business environment similar to that of the company with a high public interest, so he will be the president of the company. Mr. Miyaike made the decision because he is well equipped and has perfect personality, insight and competence.

 

[Reporter]

No other Expressway company has ever had a president from an electric power company. I think there are similarities in terms of public interest, but do you think that you will also be able to demonstrate your skills in terms of cost management, etc.?

 

[President]

As a person who worked as the top of a large company, I think that productivity, efficiency, and utilization of human resources are the same regardless of the type of business. You may not be good at the service area business, but I would like you to study and utilize what you are good at.

 

[Reporter]

Is it all right for Kawaguchi to retire?

 

[President]

It was reported in some newspapers, but it has not been decided.

 

[Reporter]

I think you were envisioning management that made use of the methods of the private sector when you took office, but a major accident occurred on the way, and the organization was fundamentally reviewed. Please tell me if you were able to achieve all of your original aspirations or if you were in the middle of the road.

 

[President]

The goal I set at the beginning of my appointment was to become the "world's number one Expressway company" in five years. We set goals by thinking that we need to establish both a short-term and medium-term vision and direction of what this company should be and in what direction. I think we have established a direction, but I think we are still in the middle of achieving them.

 

[Reporter]

It means that you will be retiring from the president, but wasn't there a continuation in your choice?

 

[President]

I thought about various options including that option, but I finally decided to leave this season.

 

[Reporter]

At the meeting immediately after Sasako's accident, you said that you would decide if you had any idea about your progress or resignation, but please tell us what you thought when you retired.

 

[President]

Immediately after the accident, of course, as a company, I would like to respond to the bereaved family members in good faith, but I also decided to restore the closed Expressway as soon as possible. Then we will formulate and implement a 3-Year Plan for Improving Safety plan, which is a recurrence prevention measure. I think the person who should proceed with these three at the same time was me at that time. Not everything is in sight, but I think the end of the first year of the 3-Year Plan for Improving Safety has ended, and I think we have a path to prevent recurrence. I think that what is important is to treat the bereaved family in good faith, and I decided to continue to support the new management in some way.

 

[Reporter]

Please tell us about your 3-Year Plan for Improving Safety how you are aware of future challenges.

 

[President]

3-Year Plan for Improving Safety is a 62-item project. For the first year, I think we did almost as planned. Taking this lesson as a lesson, we are working on organizational reform, and a new organization has just started on April 1. The vertical line has been strengthened to clarify approvals and authorities. We have to figure out if these work well, but it takes time. We are just on the start line, and I think the challenge is to steadily implement the PDCA cycle while rotating it.

 

[Reporter]

What do you think of your own responsibility?

 

[President]

We pray for the souls of the nine victims and we are very sorry for the bereaved families. The Yamanashi Prefectural Police is continuing the investigation, so I will refrain from giving my personal opinion. At the moment, I don't think there is more than a report issued by the Accident Investigation Committee regarding the cause of the accident. My responsibility is to continue sincerely responding to the bereaved family, formulate recurrence prevention measures, carry out organizational reforms to promote them, and then touch the baton at the appropriate time. I think it is.

 

[Reporter]

Regarding the Shin-Tomei Expressway, at the regular press conference on January 21, it was said that "the opening of the building might be delayed," but this time it was "the opening of the building was very difficult." Last time, you said that you had more arsenic and pyrite than expected, but how did the situation actually change?

 

[President]

Currently, it means that opening in 2014 is very difficult. There are three factors. The first is pyrite and heavy metals of natural origin. Initially, we were thinking of containing it in the embankment of our road body, but the amount we could not handle with this alone made us have to take it outside the road. The second is a landslide. There are about 5 landslides. We are scrutinizing how these measures will be implemented and how long it will take. The third is that some parts of the structure have subsidence. We are currently considering countermeasures for these and are currently scrutinizing the process.

 

[Reporter]

Since fiscal 2014 is tough, please tell us how long it will be after fiscal 2015.

 

[President]

We are in the process of scrutinizing, so we will announce it again if there are any prospects for measures.

 

[Reporter]

Following the accident at the Sasago Tunnel all the work to remove the tunnel ceiling panels and ventilation ducts in the NEXCO CENTRAL jurisdiction was completed. Please tell us about your own evaluation regarding this.

 

[President]

On May 19, we reported the status of implementation of 3-Year Plan for Improving Safety to the experts of the Expert Committee on May 19, and received the opinion that the Expert Committee is steadily implementing various initiatives according to the plan. It was In the first year, I think I could do what I needed to do. Among 3-Year Plan for Improving Safety, we take priority and take countermeasures from the most dangerous ones including potential risks. The removal of tunnel ceiling boards and ventilation ducts is the highest priority, and 10 tunnels out of 13 tunnels in our service will be completed, and 3 tunnels that cannot be removed due to environmental measures will carry out double safety measures. I would like to continue working on 3-Year Plan for Improving Safety in the future.

 

[Reporter]

Looking at the traffic volume and sales in the service area in April, what are your thoughts on the impact of the consumption tax increase?

 

[President]

Compared to last year, there was a difference in the calendar lineup and weather, as well as the end of discounts for the convenience promotion business and the revision of charges due to the consumption tax increase. Furthermore, it is difficult to analyze how the consumption tax hike affects, as the unit price of gasoline has risen significantly. However, I expect that it will gradually return in summer.

 

[Reporter]

Toll revenue increased by 118.5% in April. What do you see as the change in ETC discount?

 

[President]

Weekday morning and evening discounts have been discounted until now when you passed the toll booth, but from April you will receive a regular fee when you pass the toll booth, and if the discount conditions are met, the discount will be returned to the next month. It was decided to do. About 18% includes about 4% of the discounted fee, so 14% of the deduction may be due to the end of the discount for the convenience promotion business.

 

[Moderator]

It seems that the question has been interrupted, so this will end the regular press conference.