August 24, 2010 Kaneko Chairman and President Regular Meeting

(Moderator)

Thank you for waiting. The 58th regular press conference is about to begin.

 

(Chairman and President)

I'm Kaneko. Thank you for gathering in your busy place. About two months have passed since I took office. This is the first time for me to attend the festival and the time when the traffic on the Expressway is at its peak, but thanks to you, there was no big confusion and it ended. I think this is the result of the cooperation of our customers and all involved parties and the careful preparation of our employees. I would like to thank everyone. Today, we have 6 topics in total. I think that you have the materials at hand, but I will explain in the order that they are presented.

The first is the business overview.
Fee income in July was 38,290 million yen, down 0.3% from the same month the year before. The breakdown is 35,675 million yen for expressways, an increase of 1.8%, and Hiyu decreased 2,615 million yen, a decrease of 22.2%.
On the other hand, the average number of passengers in July was 1,972,000 units, an increase of 13.8% year-on-year. This 1,972,000 units were the highest monthly traffic volume for NEXCO Central Japan. The breakdown is that the high-speed train averages 1,485,000 units, an increase of 7.9%, and the one-owned car is 487,000 units, an increase of 36.7%.
This was affected by the social experiment for making free of charge mainly on general toll roads, but on the other hand, even in toll sections such as highways, ordinary cars etc. became positive, due to favorable weather during the summer vacation period. In addition, industrial traffic such as large vehicles also increased year-on-year, resulting in a slight decrease in total toll revenue and a year-on-year increase in traffic volume. The ETC discount amount for this month was 30.4 billion yen, an increase of 5.7% compared to 28.8 billion yen for the same month last year. The discount rate is about 44.3%.

Next is the situation of ETC. From Thursday, July 29, ETC has been installed at the Inagi tollgate on the ChuoExpwy, and the number of ETC tollgates has increased from the end of June to 230.
Compared to 7 / 9-7 / 15, the latest average of 8 / 6-8 / 12 is 14.5%, but the average daily usage rate is 82.0%, 82.0%, down 0.8%. I am.
By weekday, the average usage rate on weekdays was 82.8% to 82.0%, decreased by 0.8%, and the average usage rate on weekends and holidays was decreased from 82.6% to 82.0%, 0.6%, decreasing on both weekdays and weekends and holidays. . The cumulative number of vehicle-mounted devices installed at the end of July was 1.3% higher than at the end of June, about 400,000 units, or 31.8 million units.

Next, regarding the status of the service area, sales are 104.6% compared to the same month of the previous year. Plus 587 million yen. The ratio of food and beverage sales was 102.1% compared to the previous year. And in the rest-in and bath service departments, it was 89.2% down from the previous year, and the amount was 4 million yen less. This is due to the construction of Taga and Ashigara service areas. Although it is a GS department, it is 112.8% over the previous year, or 366 million yen in total. This is the result of the unit price or quantity exceeding the previous year. And finally, in the advertising department, it is 282.5% compared to the previous year. The above is an overview of the business.

Next, move on to the second topic. The second topic is about new brand names. We have announced the brand names of commercial facilities in the five areas that have been partially renewed so far, Ashigara SA (upper and lower lines), Gozaisho SA (upper and lower lines), Taga SA (Out-bound). .
Going forward, we will develop commercial facilities under the brand name "Expersa" in these five areas. Please see this panel.
In this "Expaser", we thoroughly pursued the potential of commercial facilities, such as introducing multiple popular stores, selling areas that make you want to shop such as fun to choose and enjoy, comfortable space, and interaction with the area. I think
By providing "a truly relaxing place for customers", we will create new values in the service area, and the "Expaser" will be selected as the destination from the service area that was just a transit point for movement. In order to transform into such a service area, we will work together with this new brand name as a group to nurture it so that our customers can recognize it.
Of course, rather than thinking only about the customers who shop, "Expursa" will become an information base in the region through Platt Park, and will also serve as a "place for customers to interact with the region."
In addition, in the five areas that will be “experts”, CO ₂ Aiming for reduction, power saving, water saving, energy saving, heat insulation, CO ₂ We are also proactively considering the environment, including efforts to reduce emissions.
With the desire to go beyond the current concept of SA / PA, "EXPERSER" means EXCEED, EXCELSIOR, so-called "exceed", which means "exceeding". And, "PA" in the parking area and "SA" in the service area are combined.
The brand logo has a design like the flapping butterflies that give the image of a feeling of lightness and lightness, so that the "Expursor" can be freely expanded without being bound by the default concept. The five lines that make up the logo give the image of a Expressway with the lines, and the number of "five" expresses the five areas that are the beginning of the "expert". In addition, five lines are concentrated in the center so that customers who use the Expressway from various directions can gather in five areas as destinations and expand from there. It expresses how it will be the base of such a trip. The basic color is orange, which is also our corporate color, to give a positive impression. By all means, please come to "Expaser" and feel the difference.

Next, I would like to announce the first Grand Opening Information regarding the third topic, which is related to the current "Experser".
NEXCO Central Japan has been aiming for a new style of SA from SA, which used to be only a transit point in the past, to SA that can be selected as a destination. The brand name of that business is the "Experser" that we announced earlier, but as the first of that, on September 17, the Higashi-Meihan Expwy Gozaisho service area (upper and lower lines) was grandly opened as "Expursa Gozai" I will. At "Expursa Gozaisho," you can also find eat-in Akafuku Chaya, an Ise specialty store, a store directly managed by Iga no Sato Mokumoku Handmade Farm, and a charcoal-grilled Hamburger Kakiyasu from Kuwayasu, a long-established store in Kuwana City. selection of shops seems local triple, from Aichi the adjacent, Expressway specialty store "Yamamotoya head office" of Nagoya specialty miso noodle stew to be the first store openings, same Expressway long-established "chicken three to deal with the pure line Nagoya Cochin to be the first store opening A total of 31 stores such as "Wa" (Tori Sanwa) will open, welcoming you as "Expaser Gozasho". Also, on September 17th, the north wing of "Experta Taga" will be reopened and "Gyoza no Osho," which will be the first Expressway store, will open. Exparser Goshosho will be the first grand opening, but we are also proceeding with the business of Exparasa Taga and Expsara Ashigara, which have been partially renewed, and we are planning to open them all within 2010. We are planning to have the preview attached to the end of the document on the day before the opening, so we would like you to come visit us and see it.

Continuing on, the fourth topic will be the "Oku Mikawa / Minami Shinshu Highway Campaign" that started on August 20, and the "Highway / Autumn Tour Campaign Yamanashi 2010" that will start on September 1. I will guide you.
These highway campaigns are designed to tie up with local tourism associations and others so that many people can use the Expressway and enjoy the tourist destinations. is. We will distribute a pamphlet with a common complimentary ticket, which allows you to use advantageous services, free of charge, mainly in service areas. With the SA and PA described in the pamphlet, you can receive various benefits such as coffee service at meals by using a common complimentary ticket. We will drive to the campaign area on the Expressway, spend more than a certain amount, and from the customers who applied, we will present local special products and other prizes by lottery. We will carry out such a campaign.

Next is the fifth topic. This event will be held under the name of Toyama's three major folk song competitions in Hokuriku Expressway. A press release from the Kanazawa Regional Head Office on August 12th, the three major folk songs representing Toyama prefecture on the Hokuriku Expwy Arisumi service area In-bound line for two days on October 9th and 10th The performance of "Etanaka Owarabushi," "Kokirico Bushi," and "Mugiyabushi" will be held under the title of "Toyama Three Great Folk Songs Competition in Hokuriku Expressway". .
This project, Expressway those with feeling of gratitude to their clients that if I have available, customers appreciation event has been held every autumn, it will be held as a special project of "going highway", This is the first time that Toyama's three major folk songs will be competing in the Expressway service area.
This time, we have prepared paid seats so that customers can relax and watch. Customers who purchase tickets are provided with Toyama's specialty trout sushi, so that you can enjoy Toyama's "food" with the three major folk songs of Toyama. It is a plan.
Regarding the "Going Highway", a customer appreciation event held in other areas, we plan to announce it at the next regular conference.

This is the last topic. We will report the environmentally friendly efforts.
This environmentally friendly effort is "Towards coexistence between wild birds and Expressway."
We are promoting eco-roads (roads that consider the natural environment) and are working to conserve biodiversity. At Higashi-Meihan Expressway, at Yatomi IC and Kanie IC, every spring, thousands of herons come in and start nesting, but this is Expressway. The formation of large colonies is unique. There are six types of herons that come in, such as the Little Egret and the Heron, but there is also the “Tuna Rabbit”, which is a “quasi-endangered species” in the Red Data Book of the Ministry of the Environment. Sudden jumping of herons on the street and crossing of chicks on the road are problems in traffic safety. We think that Expressway will be a place to protect nature in the situation where the heron habitat is being lost due to the development, and we chose the path of coexistence between herons and Expressway. We are implementing various efforts such as setting signs and preventing intrusion.
This time, our company aims to maintain the habitat of the heron without sacrificing the function and safety of Expressway, and to aim for continuous coexistence of the heron and Expressway. , We have decided to conclude a memorandum on cooperation and cooperation with "Yatomi Bird Garden in Aichi Prefecture" and "Japan Wild Bird Society Aichi Prefecture Branch", who have specialized knowledge of the way.
The signing ceremony will start from 10:00 on August 28th. The details of the signing ceremony are as per the materials you have, but if you would like to collect data or take a local photo shoot, please contact the Kuwana Conservation and Service Center. This concludes the introduction of our environmentally friendly efforts.
Above, 6 points are the topics prepared by me.

 

(Moderator)

So I'd like to take your questions.

(Reporter)

It's a big story, but it seems that the Japanese economy has deteriorated considerably due to the strong yen and stock prices, but it is getting darker in July. Even if there are some factors, the number of passing traffic has increased considerably, but considering that the food and beverage sales in the service area is not so much growth, how do you see the current economic situation and another? Please tell us your outlook for the future as a manager of a company that operates Expressway after autumn.

(Chairman and President)

The number in July shows that the traffic volume is gradually increasing compared to the previous month and the month before last. Therefore, if you look at the figures alone, it may be that the economy is recovering, but I think it is a situation that cannot be predicted by itself.
This is the outlook for the future, but I think it will be a difficult time in general because there are issues such as the appreciation of the yen, which I mentioned in your question. Especially from the current Japanese industrial structure, which is still dependent on exports.
So, I think it's not enough to measure the economic situation with these numbers alone, but I don't think it's all dark news. I think we need to look at the situation a little more.

(Reporter)

What can be expected of the bright news?

(Chairman and President)

I haven't analyzed how much industrial traffic will increase and what it will do, but I think it's a material.

(Reporter)

Regarding operating revenue, the number of traffic on general toll roads increased by more than 30%, but the revenue decreased by 20%. Can you explain the factors around this?

(Chairman and President)

I think one of them is the effect of the free social experiment that we are currently conducting. I think this is the biggest impact.

(Reporter)

Is that the reason for most?

(Chairman and President)

That's right.

(Reporter)

Although it is an exparser, how about the development in SA other than 5 in the future, the development in other SA / PA and Shin-Tomei Expressway, the sales effect by this, and the sales target?

(Chairman and President)

After this, we are planning a large-scale renewal of about three places, and we are planning. One of the purposes of this is to attract customers, so of course it is a renewal with the intention of directly connecting to increased sales. I don't have a percentage as a number now, but I'm thinking of making it a convenient service area for customers and creating a new concept of "stay type" service area. For us, it is a plan in that direction, which naturally benefits the performance of the company.
As for the question about whether there are any plans for the five areas this time, we are thinking that we will do the same in about three more places. 5 places plus 3 places for 8 places.

(Reporter)

It's an expasor, but is this also available from the outside? Or is it just a Expressway user?

(Chairman and President)

Local people can use this facility under the name of Plat Park, so people who are using the Expressway can add it to this facility even if they are local people, that is, without using the Expressway.

(Reporter)

Does it mean that you have a destination with such meaning?

(Chairman and President)

Including that, too.

(Reporter)

For example, it is said that your location does not have a numerical value as before, but is there a numerical target for increasing the number of users per year?

(Chairman and President)

So far, we do not have a numerical value. I think that the return on investment is very large, but I do not have individual numbers for each.

(Reporter)

The 31 stores in Goshosho contain local specialty products such as Nagoya and Mie. Is there any other store like this in NEXCO Central Japan jurisdiction?

(Chairman and President)

This is the first big thing this time. I would like to continue converting to such a commercial complex.

(Reporter)

Is this the first of those things to do with that concept, and is it a good idea to call it an expert?

(Chairman and President)

That's right.

(Reporter)

It is confirmed with the experser, but you explained that there will be a total of 8 locations by adding 3 locations to 5 locations. Could you please tell us the locations of the 3 locations to be added and where to open them?

(Chairman and President)

By 2010, we have been proceeding in 3 areas in addition to the 2 areas of your residence, and after evaluating whether or not to use the brand name "Expaser" in 3 additional areas besides 5 areas in total I would like to consider. I would like to refrain from specific locations, but we are planning three locations.

(Reporter)

We are planning to renew the additional 3 places other than Ashigara and Taga, but is it undecided whether to use the brand?

(Chairman and President)

That's right. I would like to evaluate it at 5 points.

(Moderator)

This is the end of the regular press conference. Thank you very much.