NEXCO CENTRAL (Central Nippon Expressway Company Limited)




December 20, 2017 Miyaike President briefing

Conference Summary

MC

We have been waiting for you. We have just begun the 131st regular conference.

[Introduction]

Five years have passed since the fall of the ceiling plate of the Sasago Tunnel February 2, and a memorial service was held in Yamanashi Prefecture on the same day.
The memorial service was attended by a large number of people, including the bereaved family, and we sincerely apologized to those who died from us and their families, and prayed for the peace of mind. .
We will continue to position safety at the top of our management policy, address everlasting challenges of improving safety, and never forget the lessons of accidents throughout the NEXCO CENTRAL Group Instead, I pledged to pass it on to the next generation.
Thank you very much for covering the press with many people on the day.

[Business status (November 2017)]

Please see document 1.
In terms of business conditions, toll revenue in November was 58,004 million yen, an increase of 4.7% from the same month last year. In addition, the number of tolls averaged 2,042,000 units per day, an increase of 1.9% from the same month last year. .
In November, both the fare revenue and number of traffic increased due to the good holiday schedule and the three consecutive holidays from November 3 and the continued increase in the use of large vehicles.
The construction situation will be explained later.
Next is the status of the service area (SA) and parking area (PA).
See the back of Document 1.
SA / PA sales in November were ¥ 17,163 million, up 9.9% from the same month last year. Sales in the food and beverage business increased 3.1% compared with the same month last year.
In November, sales were better than last year due to good holiday schedule and good weather compared to last year.
Sales in the gasoline division increased 25.3% year-on-year due to higher selling prices and higher sales volume of diesel fuel.

[Opening of Atsugi-minami Interchange (IC) from Shin-Tomei Expwy Ebina-minami Junction (JCT)]

The second topic.
See Appendix 2-1.
About 2km from the Ebina-minami JCT on the Shin-Tomei Expwy to the Atsugiminami IC will be opened at 15:00 on Sunday, January 28, 2018.
This opening is expected to alleviate traffic congestion around the Tomei Ebina JCT and Atsugi IC, improve logistics efficiency and promote regional development.
The opening ceremony will be announced again.
In addition, prior to the opening of the service, we plan to open it to the press for the press. Once the details are decided, we will inform you again, so please join us.
To celebrate the opening of this event, as shown in Document 2-2, we will carry out a “Opening Commemorative ETC Mileage Point Campaign” in which ETC mileage points are presented by lot. After confirming the application conditions etc., we are waiting for many applications from all of you.

[E1A Isewangan Expressway to commemorate the whole line opening 20 anniversary of the road, it will be held the campaign]

Next, we will introduce the 20th anniversary campaign for the opening of the Isewangan Expressway road.
Please see document 3.
On March 30, next year, Isewangan Expressway road (approximately 6 km between Tokai IC and Tobishima IC) will be fully opened. To celebrate the 20th anniversary of, we will hold a campaign to express our gratitude to many customers who have used the service and people along the line.
With the opening of Isewangan Expwy, the conversion of traffic from the previous Tomei / Meishin route to the Ise Wangan / Shin-Meishin Expressway route was planned. It is the main logistics artery in Japan that connects Tokyo-Nagoya-Osaka.
In addition, when the Tomei / Meishin route is closed, alternative functions are also secured, improving the punctuality of travel.
For details on the stock effect of Isewangan Expressway road, please refer to Document 3.
Today we will announce what will be implemented in the 20th anniversary campaign.
The first is a panel display and customer appreciation event held at rest facilities at Isewangan Expwy and large commercial facilities in the vicinity.
The second is a local tour where you can climb the top of the tower about 125m from the sea level of Meiko Higashi Ohashi by lottery from those who applied.
Details on the timing and venue of these events will be announced on our website as soon as they are decided.
The third is the lighting of Meiko Triton.
In the usual year, the Christmas version is lit up only on December 24th, but this year to commemorate the 20th anniversary of the opening of the whole line, this year from Wednesday, December 20, 2017 to 24th (Sunday) ) For 5 days.
The recommended view point is MeikoChuo IC or the green area of Kinjo Wharf, a 5-minute walk south of Kinjo-Futo Station on the Aonami Line.
A fireworks display is also scheduled for December 24 at the Port of Nagoya, so you can enjoy the fireworks and the famous port Triton lit up for the Christmas version. Please take a look.

[Development of a new antifreezing agent using sodium propionate]

Next is the topic on technology development.
See Appendix 4.
In this issue, we report on the development status of a new antifreeze using sodium propionate.
At Expressway, sodium chloride (salt) has been mainly used as a deicing agent to ensure safety during winter driving.
However, since the use of spiked tires has ceased around 1993, the amount of salt used has gradually increased, and as a result, many cases of deterioration due to salt damage on bridges and the like have come to be seen.
Therefore, there has been a demand for the development of an antifreezing agent that suppresses deterioration due to salt damage.
Therefore, we focused on "sodium propionate" (pronat), and have been examining the applicability to the site since FY2015 in collaboration with the University of Toyama and the Institute of Civil Engineering for Cold Regions in Sapporo.
Pronat is a white granular solid that has the effect of inhibiting the growth of bacteria and is therefore mainly used as a food preservative.
This time, we report that we have achieved certain results in tests such as performance and workability.
First, performance.
Because of the high cost of pronat alone, studies have been made on the premise of using a mixture of salt and pronat in consideration of economy, but in metal corrosion tests, distilled water was replaced by replacing 10% to 20% of salt with pronat. The result was equivalent to that of, and it was found that the progress of metal corrosion can be greatly suppressed.
In terms of workability, there is usually a work to make an aqueous solution of sodium chloride at the snow and ice work base.However, when an aqueous solution is made using powdered pronat, the pronat is scattered throughout and the workability becomes extremely poor. Was.
Then, when the shape of pronat was improved from powdery to granular, the problem of material scattering was solved.
From these results, it is expected that replacing some of the salt with pronato will reduce salt damage on bridges and other structures, thereby prolonging the life of structures and reducing life cycle costs.
In the future, we plan to scatter a trial on Expressway main line to verify the effects of the on-site issues and the effects.
We will inform you again when the specific time, place, and verification method for trial spraying are determined.
We will continue studying this new anti-freezing agent that can be used as soon as possible in the field as a new anti-freezing agent that can control the deterioration of structures.
We will continue to develop technologies that place high priority on safety and lead to high durability and reduced life cycle costs.

[Development of "Sakura", a multi-functional vehicle to improve the work environment in field work]

Continuing with the topic of technology development. Please see document 5. Introducing Sakura, a multi-functional vehicle that aims to create a workplace environment where female engineers can work comfortably.
This is a product developed by our Companies in our Group, Central Nippon Highway Engineering Nagoya Co., Ltd (Engineering Nagoya).
The background to this development is that in August 2014, at the request of Ministry of Land, Infrastructure, Transport and Tourism the public and private sectors jointly formulated the ``Construction Industry Action Plan to Enable More Women in the Workplace.''
In response to this action plan, we listened to the opinions of female engineers at Engineering Nagoya and found that they desired three functions when working on-site: a toilet, a rest space, and a powder space. got it. Today we will be introducing a multi-functional vehicle that is equipped with these three functions and provides an environment where women can work comfortably within Expressway traffic regulations, such as Expressway inspection work and intensive construction supervision work. is.
Today, this multifunctional vehicle "Sakura" is on display in the underground parking lot.
After the press conference, the person in charge will explain the functions in detail, so please feel free to interview us.

[A new framework for regional cooperation and efforts to foster human resources in collaboration with local partners have won the KAIKA Award 2017 "KAIKA Awards."]

See Appendix 6.
Our company is the first Expressway company to collaborate with local partners from the viewpoint of regional cooperation and human resource development in order to provide “local development and regional support through tailor-made and meticulous responses” We have created a new human resource development program utilizing funding and have been working since FY2016.
We are pleased to report that this initiative has been highly evaluated at the “KAIKAAwards2017” hosted by the Japan Management Association and received the “KAIKA Grand Prize”.
This initiative is expected to link with local NPOs, local governments, and local SMEs, and to strengthen and build regional alliances.At the same time, we will acquire social business knowledge, business know-how, and challenges. (Entrepreneurs) We aim to foster a spirit and develop employees who can create new business models.
See Document 6 for details.
Taking advantage of the KAIKA Grand Prize, we will continue these initiatives in the future, contribute to regional revitalization in anticipation of social and economic changes, and continue to respond to the demands of society. We will make further efforts to strengthen them.

MC

These are the topics we have prepared today. Now, let's receive your questions.

Reporter

The new antifreeze and multifunctional vehicles with toilets, which are introduced in Documents 4 and 5, respectively, are being developed by an affiliate company at NEXCO CENTRAL. In addition to working at NEXCO CENTRAL related construction or on-site, any other Expressway company other than NEXCO CENTRAL Please tell us if you have an idea of spreading it in the future, such as providing or selling it in the form or using it at other construction sites.

President

We have been developing various technologies so far, and the results are shared with other Expressway companies. For example, NEXCO EAST and NEXCO WEST purchase or sell the other way, we are working together with each other.

Reporter

There is no concrete plan at this time, but it means that there is a possibility to share with East Japan and West Japan in the future.

President

That's it.

Reporter

As you may know from the press, there is a suspicion that a major contractor will be rigging the JR Tokai linear project. I don't know how far it will spread, but please tell us to what extent you can talk about how NEXCO CENTRAL is currently seeing the impact of this incident on infrastructure development such as road construction, etc.

President

We do not comment on the alleged rigging, so we will refrain from commenting, but in general, if fraudulent behavior is revealed, we will suspend registration according to our standards. We think that we will take measures such as.

Reporter

I'm sorry to ask the hypothetical question, but I think it is possible that a super general contractor or, in some cases, a sub-general general contractor may find some kind of wrongdoing. In that case, I think that the construction that is currently in progress and the future bidding will be affected, but please tell us about that.

President

Since this is a hypothetical question, we cannot answer it.

Reporter

I think this will be the last meeting of the year, but what are your thoughts on 2017 and your resolutions in 2018?

President

We have been working on a five-year Management Plan Challenge II. This year is the second year of Challenge II, and we believe that we have continued to carry out new construction of Expressway, large-scale renewal projects, and the construction of smart ICs, etc., from the first year. As this year's topic, as you all know, the accident that a sightseeing bus and a passenger car collided in Tomei and the accident where industrial waste leaked to Expressway in the Mizunami district of Chuo Expressway, There were various accidents on Expressway, such as the miserable accidents caused by driving in Tomei. We believe that we need to work on this issue, including notifying customers, so that you can safely pass Expressway in the future. Another topic is that we can now participate in the road business in Vietnam, and we are currently working diligently. I think it was a big topic to be able to participate in Expressway business overseas.

Reporter

Due to FILP, some sections of the Tokai-Kanjo Expressway are moving ahead, but please tell us about your acceptance and response to this.

President

The Ministry of Land, Infrastructure, Transport and Tourism just recently announced such a story, but the specific target for our company is the section of the Tokai-Kanjo Expressway that has not been completed and whose completion time is not clear. And acceleration of bridge seismic strengthening measures. I would like to consider how to proceed in the future, but I think it is very important for this area, so I would like to actively promote it.

MC

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