04 May 21, 2016 Miyaike President briefing

[Moderator]

Thank you for waiting. We will start the 113th regular meeting from now.

[Miyaike president]

Before I start the interview, I would like to say a few words.
We pray for the souls of those who have died in the earthquake that occurred in Kumamoto Prefecture after April 14, and we would like to express our deepest sympathies to the victims.
We sincerely pray for the quick recovery of the disaster area.
Immediately after the earthquake, we will establish a system to respond to requests for support such as personnel and equipment to Western Japan Expressway, and for vehicles engaged in disaster dispatch etc. for the purpose of relief in the disaster area in Kumamoto prefecture We have been taking measures to free the toll of Expressway from April 16th.
In addition, as a refueling or gathering place for support units such as the police and the Self-Defense Forces, a parking lot for the Meishin Expwy Owari Ichinomiya Parking Area (PA) Out-bound line and Taga Service Area (SA) Out-bound line is available. We are coordinating the use of some regulations and adjusting the recipients to support drinking water.
In addition, since we started accepting donations from customers in 51 service areas yesterday, in order to help the reconstruction of the disaster area as early as possible, Expressway Thank you for your cooperation.
Next, the Ise-Shima Summit will start on the 26th of next month, but the "Higashi-Meihan Mei-Nikan Expressway refresh work" that has been carried out ahead of the usual year will be carried out on Saturday, April 16th. Finished. During the construction period, we apologize for the inconvenience to customers using Expressway and those in the surrounding area. We thank you for your cooperation.
The maximum congestion length during the construction period was 20% less on the In-bound line and about 50% on the Out-bound line than last year. Most of the work scheduled for the refreshing work was completed, including work for the Ise Shima Summit.
Regarding the response to the Ise Shima Summit, we will continue to coordinate with related organizations.
At the same time, we are distributing the "Ise Shima Summit Commemorative Pamphlet" with advantageous coupon tickets for customers visiting Mie Prefecture. In addition, we offer souvenirs such as "Original Mobile Mug" and "Summit Gateaux Cookies", "Limited time menu named after the participating countries", "Original menu arranged with Ise Udon", etc. I will do it.
In addition, please refer to the memorial menu featured on the gourmet site "Tabe Log".
In addition, Expressway distributes flyers with coupons linked to CEP, which allows unlimited rides for foreigners.
[Miyaike President]

Let's talk about the topics we have prepared today.

[Business status (March 2016 and 2015)]
Please see Document 1.
Regarding operating conditions, toll revenue in March was 57,765 million yen, an increase of 1.5% from the same month of the previous year, and the number of traffic per day was 1.699,000 units, an increase of 1.1% from the same month of the previous year. have become. Due to favorable weather conditions and favorable use of Shin-Tomei Expressway and Ken-O Road, both toll revenue and the number of traffic increased slightly during the month.
Toll revenue in fiscal 2015 was 657,592 million yen, an increase of 3.7% year-on-year, and the number of traffic per day was 1.19 million units, an increase of 2.3% year-on-year. The main factors were less impact of typhoons and snow compared to the previous year, good use of Shin-Tomei Expressway / Ken-O Road, and April to 6 of the previous year. Toll revenue and the number of passing vehicles increased as the monthly holiday discount remained unchanged from 30% to 5% due to the sudden change mitigation measures.

Next is the situation of construction.
I will explain the general construction work for the sections that are scheduled to open in FY2016.
Shin-Meishin Expressway and Tokai-Kanjo Expressway Yokkaichi junction (JCT) from Toin interchange (IC) 6km between the factor and made have Cut slopes measures was the road body construction of the opening delay is completed by March, current, paving Construction work, sign work, and equipment work such as lighting and information boards are underway. The 9km section between the Chubu Odan Expressway Rokugo IC and the Masuho IC is currently under construction of the road itself, including earthwork, bridges, and tunnel construction.Pavement work, signage work, and equipment work will start next month. Preparation work is in progress. The 2km distance between Shin-Tomei Expressway Ebina-minami JCT and Atsugiminami IC was reported at a regular conference last July, but it took a considerable amount of time to acquire land and improve the soft ground layer, so the entire process was scrutinized. As a result, it is expected that the scheduled opening date will be the end of 2017, one year behind the originally planned end of 2016.
We will do our best to open as soon as possible, so we ask for your continued understanding and cooperation.
We will inform you about the opening time for each section once it is ready for completion.

Next is the situation of the service area.
The total number of service areas (SA) and parking areas (PA) remains unchanged at 180 locations in March as there are no new openings.
SA/PA sales in March were ¥15,983 million, an increase of 0.9% from the same month of the previous year, and sales of the Food and Beverage/Sales division increased by 3.9% from the same month of the previous year.
The increase is due to NEOPASA Okazaki and Nagashino-Shitaragahara PA up-and-down lines, which opened in February.
Sales in the gasoline sector decreased 6.4% year-on-year, due to the difference in gasoline unit prices.
Sales of SA/PA in FY2015 were 184,142 million yen, an increase of 1.2% from the previous year, and sales of the food and beverage department increased by 3.2% from the same month of the previous year.
The reason for the increase was that in addition to the opening of NEOPASA Okazaki and Nagashino-Shitaragahara PA up and down lines in February, there were few major bad weather such as typhoons and snowfall, and calendars such as Silver Week and leap year were favorable conditions. The event attracted customers such as "Evangelion Ashigara" and EXPASA Ebina's "Hokkaido Bussan Exhibition".
Sales in the gasoline segment were down 3.5% year-on-year.

[Traffic prediction during GW period and traffic safety awareness]
Please see Document 2.
We announced on March 25th about the traffic congestion forecast for this year's GW large holiday period, and it was picked up by many media outlets. Thank you very much.
The peak of the congestion of our tract, Out-bound line is May 3 (Tuesday), In-bound is the line on May 3 (Tuesday) and 4 days (water). In addition, we forecast 146 congestions over 10km during the period, and 13 congestions over 30km.
We provide traffic congestion prediction information and road traffic information with various tools, so please use it before departure to avoid traffic congestion.
Next, I would like to ask you about safe driving on Expressway.
As shown in the document, between January 1, 2016 and April 21, 2016, 8 traffic fatal accidents occurred and 10 precious lives were lost.
As shown in Figure 1, half of the incidents are due to human accidents and vehicle releases, and in Figure 2, there is a tendency to occur frequently on Saturdays, Sundays, and holidays. One of the characteristics of a person-to-person accident is that a person who gets out of the car after being stopped due to an accident is run over on the main line.
In the unlikely event of a stop due to an accident or malfunction, do not leave on the main line or inside the vehicle, but evacuate to a safe place such as outside the guardrail.
Please be sure to wear seat belts for all seats when using the Expressway.
See Figure 3. Last year, from April to May, there were 6 fatal accidents involving motorcycles, with a high frequency of 7 people. Riders are advised to take sufficient breaks and distances between vehicles to drive at safe speeds.

[1st anniversary of "Terrace Gate Toki" grand opening]
Please see Document 3.
"Terrace Gate Toki" which opened on April 24th last year, will soon reach its first anniversary. Last year, a cumulative total of approximately 1.5 million customers came to our booth, and the mass media have taken up a large number of Terrace Gate Toki. Thank you very much.
From April 24th of this year, we will hold various 1st anniversary thank-you events during Golden Week, so I hope many customers will enjoy it.
In particular, “Yoromichi Onsen” is expected to reach 500,000 visitors during Golden Week, and we plan to present a memorial gift to the 500,000th visitor.
Going forward, we will continue to work to attract new customers with the aim of creating even more attractive multi-purpose commercial facilities, and have many customers come and contribute to the local community.

These are the topics we have prepared today.

[Moderator]

Now, let's receive your questions.

[Reporter]

Damage to Expressway in the Kyushu region due to the Kumamoto earthquake has been reported. What kind of measures will you consider in the future based on this damage example?

[Miyaike president]

All bridges on the main line of the Expressway are equipped with a fall prevention device, and I think that it was effective for the earthquake, but there are some overpasses that have collapsed or damaged bearings. It seems. Overpass bridges are managed by local governments such as prefectures, municipalities, etc., and there are some places where bridge prevention devices are not installed. I would like to collect information on the status and causes of damage caused by the Kumamoto earthquake, and dispatch our employees to investigate.

[Reporter]

What kind of support and support do you provide as a company?

[Miyaike president]

We have a system in place to promptly respond to requests for support such as personnel and equipment. The measures we have taken so far include cooperation with the gathering places of the SDF and police who go to the support on the Expressway, free tolls for dispatched vehicles, support for drinking water and other materials that are lacking locally. We also collect donations from customers in service areas.

[Reporter]

Did you go to support during the Great East Japan Earthquake?

[Miyaike president]

I'm going to support you.

[Reporter]

With the opening of the Shin-Tomei Expressway (Aichi prefecture section), the number of traffic and commercial revenue (sales of SA/PA) increased, respectively.

[Employees]

It is the second-highest in terms of both the number of traffic and commercial revenue. The number of traffic was the highest in fiscal 2013 when various toll discounts were implemented, and the amount of commercial revenue was highest in fiscal 2012 when Shin-Tomei Expressway (Shizuoka prefecture section) opened.

[Reporter]

According to the government's intention, there is a request to execute 80% of the budget for construction and research in the first half of the year for economic measures, but how about the company as a company?

[Miyaike president]

We have a plan for the year, but we would like to proceed as soon as possible. I would like to carry out my work steadily, including measures to prevent downturn when bidding.

[Reporter]

How about safety measures and preparations for Expressway related to the Ise Shima Summit?

[Miyaike president]

For the purpose of crime prevention, we are cutting grass on the slope and installing 120 temporary cameras.

[Reporter]

Can you tell us about the restrictions on Expressway traffic to the extent possible?

[Miyaike president]

Due to the security of the prefectural police, I cannot tell at this point.

[Reporter]

When will you know about traffic restrictions?

[Employees]

I've heard that the travel plans for key people will be known in the near future, so I would like to inform you as soon as I know the traffic regulation plan.

[Reporter]

Is there anything I can do by then?

[Employees]

We are just starting pre-public relations such as requests for curbing total traffic.

[Reporter]

Please tell us about any future developments of "Terrace Gate Toki".

[Miyaike president]

We are grateful that many customers have come and enjoyed after the opening. In the future, we are studying new facilities such as convenience stores, hotels, and restaurants.

[Reporter]

Do you have a concrete image of convenience stores, hotels and restaurants?

[Miyaike president]

We are currently considering it, so we are not in a situation to offer specific details.

[Reporter]

What is your goal?

[Miyaike president]

I think it's as early as possible.

[Reporter]

How do you rate the figure of 1.5 million visitors?

[Miyaike president]

The number of 1.5 million is the total number of cash registers at supermarkets, commercial facilities, and hot spring facilities as of the end of March. As of April 24, one year after the start of operations, it is estimated that there will be about 1.6 million people, and it is evaluated that the initial target was mostly achieved.

[Reporter]

Do you have any other plans for complex commercial facilities outside the Expressway, such as "Terrace Gate Toki"?

[Miyaike president]

Not at the moment.

[Reporter]

Does that mean you will concentrate on "Terrace Gate Toki" for the time being?

[Miyaike president]

exactly.

[Moderator]

It seems that your question has been interrupted, so this is the end of your regular meeting.