01 May 23, 2019 Miyaike President briefing

[Moderator]

We have been waiting for you. Now, I am just starting the 144th regular meeting.

[President]

[Introduction]
This is the first conference of the year, so I would like to briefly talk about my new year's resolutions before introducing the topics.
But I would like to talk later even "current state of the business", by March, in the district Tokai Shin-Meishin Expressway, Tokai-Kanjo Expressway, it is in the metropolitan area towards Shin-Tomei Expressway, Chubu Odan Expressway and, 4 routes newly opened of are planned.
In addition, the operation has been started sequentially from December, but the 4-lane Tokai-Hokuriku Expressway is scheduled to be completed within the fiscal year.
In each case, the construction is approaching the final stage for opening, but we will proceed with construction at a rapid pace so that customers can use it as soon as possible and use it to revitalize the area .
In addition, we will accelerate the renewal project (large-scale renewal and repair business), which started three years ago.
From this year, construction will begin on sections with heavy traffic, such as the Tomei and Chuo Expressway Chukyo area.
We will work steadily to improve the safety of Expressway.
In addition to these businesses, the scale of our business is Large further, such as accelerating the development of the Tokai-Kanjo Expressway using FILP, adding additional seismic retrofitting, and Shin-Tomei Expressway (Shizuoka Prefecture section) to six lanes. You.
In order to effectively utilize these limited business resources and steadily execute these businesses, it is essential to improve productivity.
We would like to further accelerate initiatives to increase productivity of the entire Group, such as optimizing business processes and developing technologies that lead to higher productivity.
As I will talk about later, Tomei will celebrate its 50th anniversary on May 26. We are also planning various events and campaigns to express our appreciation to our customers and the local residents.
I would like to make this year a fulfilling year for the entire Group by responding quickly and accurately to environmental changes.

[Business status (December 2018)]
Please see document 1.
First of all, regarding the business situation, toll revenue in December was 57,272 million yen, an increase of 0.4% compared to the same month last year. In addition, the average number of traffic per day was 1,955,000 units, an increase of 0.6% compared to the same month last year. Was.
In December, the snowfall affected the Tokai and Hokuriku regions from the 28th to the 29th, but the use of large vehicles continued to be strong, and both toll revenue and traffic increased slightly.
In terms of traffic, large vehicles have increased 2.3% compared to last year. The increasing trend of such large vehicles has continued for about two years.

Next is the construction situation.
Attachment 1 describes the sections that are scheduled to be newly opened or completed with four lanes in FY2018.
Of these, some four-lane operation was started in December last year. Between the Tokai-Hokuriku Expressway Shirotori Interchange (IC) and the HidaKiyomi IC, there was no traffic congestion during the year-end and New Year holidays that occurred every year. The effect of the 4-lane system is being realized.
In each of the other sections, road construction has been largely completed, and pavement work, signage work, information boards, and other equipment work are underway.The aim is to open by March, and the construction is in the final stage. You.
We'll let you know once the prospect of opening is up, so stay tuned.
Before opening, the site will be open to the public for the press. Once the details are decided, we will inform you again, so please join us.

Next is the status of the service area (SA) and parking area (PA).
See the back of Document 1.
SA / PA sales in December were 17,532 million yen, up 2.8% from the same month last year. Sales in the food and beverage and food sales department increased 1.5% from the same month last year.
In December, similar to the business situation, the snowfall affected the Tokai and Hokuriku regions from the 28th to the 29th, but the holidays were one day more than the previous year, so the sales were mainly in the Shin-Tomei Expressway area. Sales were higher than last year due to favorable performance.
Sales in the gasoline business increased 4.8% year-on-year due to higher selling prices and higher diesel oil sales volume compared to last year.

[We will hold campaigns and events to commemorate the 50th anniversary of the opening of the entire E1 Tomei Expwy]
Next, there is a topic on a campaign event that will be held to commemorate the 50th anniversary of the opening of the Tomei Expwy.
See Appendix 2-1.
Tomei will celebrate the 50th anniversary of opening the whole line on May 26. To celebrate this, we will launch campaigns and events to express our appreciation to our customers and customers along the Tomei Line.
The campaign includes a drive plan on page 1 that includes fixed-rate use of Expressway and accommodation gift vouchers for accommodations and admission tickets for sightseeing facilities, etc. We carry out campaign to give mileage points by lot.
As for the event, as described on page 2, the 50th anniversary fair to be held at "KITTE Marunouchi" near Tokyo Station, commemorative events at 6 locations including Ebina SA (Out-bound), sports cars at Ashigara SA (In-bound) In addition to the test-ride experience event, we plan to solve puzzles and tramples at SA and PA.
The details of the “50th Anniversary Time Capsule Project” will be announced on Wednesday, January 30.
In addition, sales of special menus at SA and PA and sales of products commemorating the 50th anniversary of opening the whole line are also planned.
Today, we will announce this information at any time by opening the Tomei 50th Anniversary website.
In addition, this 50th anniversary website introduces the history of Tomei's 50 years and the roles and maintenance effects it has played so far.
On page 4 you can find a summary schedule of the campaigns and events just introduced.
This year, we will develop a project to excite the 50th anniversary of the opening of the Tomei Line, so please come and visit us.
Please look at page 5. Toward the 50th anniversary of the opening of the Tomei Line, we are renewing commercial facilities and toilets for SA and PA.
Please refer to page 5 for repainting the exterior walls of commercial facilities and page 6 for renewal of interiors, so please see the implementation area and implementation status.
See page 7 for toilet renewals and new facilities.
We will continue to work on renewal and other measures in order to make it more convenient and comfortable for our customers.

[E1 Tomei Expressway The 50th anniversary of the opening of the whole line has been summarized the maintenance effects]
Next, I would like to introduce the effect of maintenance for 50 years after the opening of the Tomei line.
Please see Document 2-2.
Regarding the effects of the 50 years since the opening of the Tomei line, we announced it yesterday by compiling the Tomei-Shin Tomei Economic ripple effect study group consisting of experts, but regarding the effects on the Japanese economy as a whole from 1969 to 2018 If we evaluate the economic ripple effect of improving the productivity of companies by shortening the time required between regions caused by the development of Tomei over the past 50 years, it will be about 60 trillion yen.
Tomei, together with Meishin, is responsible for about half of the volume of cargo that passes through Japan's high-standard highways, and since the opening of the entire line in 1969 to the present day, it serves as Japan's main artery and supports the logistics of daily life for everyone in the region. I came.
With the opening of the Tomei Expressway, more than 90% of the freight transportation between Tokyo and Osaka/Aichi has shifted to trucking, and about 70% of that trucking is carried out by the Tomei Expressway.
Looking at the contribution to commerce, the distribution network expanded due to the development of Tomei, and the wholesale sales amount in the area along the Tomei area grew about 8 to 9 times, which was higher than in other areas.
In terms of contribution to industry, the value of product shipments in the areas along the railway line has increased by about 7 times compared to before opening, supporting the Japanese manufacturing industry.
The above is a summary of the maintenance effects of the opening of Tomei, but the presence of Shin Tomei is indispensable as it further enhances the effects of Tomei.
New Tomei (Shizuoka Prefecture section) was opened in 2012 as a world-leading expressway project, and a double network with Tomei was formed, eliminating the chronic saturation of Tomei and strengthening redundancy. The effect of is demonstrated.
Shin-Tomei is also expected to be a highway that supports next-generation logistics systems, such as double linked trucks and unmanned truck platooning.
The Tomei Group will continue to provide safe, secure, and comfortable expressways along with Shin-Tomei so that Tomei will continue to be a highway that supports people's daily lives in the future, by strengthening functions through renewal work and other means. I will.

[About the occurrence of fatal traffic accidents in 2018]
Here is a report on the fatal traffic accidents that occurred in our jurisdiction in 2018.
Please see document 3-1.
In the year from January to December of last year, a total of 36 fatal accidents occurred in our jurisdiction, and 38 people died.
This has resulted in a decrease of four cases and eight deaths since last year (2017).
The number of fatal accidents was the lowest in the last five years, and the second lowest since privatization in 2005. The lowest was 35 cases in 2009, with 38 people.
We are implementing various measures in both hardware and software in cooperation with the police, etc., but we believe that this was the result of the cooperation of the media to raise awareness.
One of the characteristics of the accidents last year was that the number of accidents that collided with a vehicle stopped on a Expressway increased by one year from last year to 14 cases, accounting for about 40% of all fatal accidents. You.
Of these 14 cases, rear-end collisions with vehicles stopped at the end of traffic congestion accounted for 10 cases, accounting for about 70%, and collisions with vehicles that had to be stopped due to accidents etc. Has also occurred.
Rear-end collisions are likely to occur in traffic jams or near the tail.

The measures we take to prevent rear-end collisions with the last vehicle in a traffic jam are described on page 2 of the document.However, traffic information is provided just before the last traffic jam, and a sign that alerts you to hazards is displayed. We arrange cars, post enlightenment posters at SA and PA, and distribute flyers. We will continue to work with the police to prevent accidents, so we would like to hear from the press as well.
As we distribute "request to have you use Expressway safely" as document 3-2, we hope that you can refer to alert.
In recent years, there has been a lot of news about "tilting driving".
If you encounter "drift driving" and get stuck, please evacuate to a safe place such as SA and call 110.
As mentioned above, we would like to ask for your continued cooperation in raising awareness of traffic accident prevention.

[Agreement on cooperation between Central Nippon Expressway Company Limited and Hokuriku Electric Power Company]
The next topic is the conclusion of a mutual cooperation agreement between Hokuriku Electric Power Company and the Company in the event of a disaster.
See Appendix 4.
We have concluded cooperation agreements with the national government and local governments along Expressway in order to promptly promote mutual cooperation such as securing emergency transportation routes and rescue activities in the event of a disaster. Following the Chubu Electric Power concluded in July, a mutual cooperation agreement for disaster preparedness was concluded today with Hokuriku Electric Power.
The main contents of the agreement are the following four points.
(1) Mutual sharing of damage and recovery status during disasters
(2) Traffic of Expressway such as emergency vehicles during a disaster
(3) Provision of information on the status of damage that emergency vehicles and other vehicles found while traveling Expressway
(4) Strengthening mutual cooperation through cooperation training and liaison meetings
We will continue to strengthen cooperation with other organizations in the event of a disaster and contribute to the local community through quick recovery activities.

[Development of “TOKE Pack”, a simple emergency pothole repair material that is not affected by weather]
Finally, there is the topic of technological development.
Please see document 5.
On the pavement of roads, holes called potholes occur in some parts of the pavement surface due to repeated driving of vehicles.
When potholes occur, as a temporary measure until full-scale repairs can be made, we perform temporary repairs by filling the holes with room-temperature asphalt mix.
For emergency repairs, we use two types of repair materials depending on the size of the pothole.
Relatively small potholes are repaired using a pouch-shaped repair material made of about 500g of room-temperature mixture packed in non-woven fabric.
For large potholes where pouch-shaped repair materials cannot be used, room-temperature mixture packed in 20 to 25 kg bags is used to repair.
However, when repairing using a pouch-shaped repair material packed in non-woven fabric, it is necessary to spray an adhesive called emulsion in advance, and there was a problem that the sprayed emulsion would wash away during rainy days, making repairs impossible.
In addition, room-temperature mix material packed in bags of 20 to 25 kg does not require adhesive, so potholes can be repaired even in rainy weather, but the problem is that it takes time to lay the room-temperature mix material and compact it with a machine. had.
Therefore, we developed TOKE Pack, a product that can quickly repair potholes regardless of the weather.
This product was jointly developed by our Companies in our Group, Central Nippon Highway Maintenance Hokuriku Company Limited (Mainte Hokuriku) and Toa Road Industries Co., Ltd.
The ``Overview of this product'' is listed on page 2, and the newly developed ``TOKE Pack'' is a product packed with room-temperature composite material using a water-soluble film as the exterior material. As shown on page 3, the exterior film easily melts and disappears when it comes into contact with water, so there is no need for emulsion adhesives, which is required when packaging with non-woven fabric, allowing for quick emergency repairs even in rainy weather. have become.
Please see page 4. Comparing the work time between the conventional method and using TOKE/Pack, it was found that when using the conventional bagged room-temperature mixture, it took about 5 minutes to repair; When using "TOKE Pack," repairs can be completed in about one minute, and we have confirmed that this leads to improved safety for customers and workers.
For more details, the person in charge will give a demonstration and explain the functions in detail after the press conference, so please feel free to contact us.
In the future, we plan to promote the use of this product within NEXCO CENTRAL Group, as well as roll it out to other Expressway companies and local governments that manage public roads.
Additionally, we are actively pursuing technological development through open innovation. Our official website also solicits information and proposals that will lead to the development of new technologies under six themes, including "Technologies related to Expressway Renewal Project that reduce life cycle costs and ensure quality."
We would like to ask you to provide us with information, so please cooperate with us.
Our company will continue to work together as a group to advance technological development.

[Moderator]

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

[Reporter]

Regarding "TOKE / Pack", please tell us the development points and product sales points.

[President]

Particularly in the Hokuriku region, many potholes occur due to the effects of snow and other factors. The product introduced today was developed so that potholes can be repaired quickly and easily. The point of development is that the room temperature mixture is still used, but the packaging bag dissolves in water. The point is that this bag melts well and blends with the asphalt around the pothole, so that it can be repaired quickly without using an emulsion.

[Reporter]

What has been improved?

[President]

In a word, it is a bag. In the past, a nonwoven bag was used, but by wrapping it in a water-soluble bag, the pothole can be repaired even if it is wet if pressed down from the top, allowing for quick work. Furthermore, if you work for a long time, you have to restrict traffic, but especially in the Hokuriku region, there are many bad weather conditions such as snowfall and fog, and such conditions In other words, because traffic regulations cannot be imposed, we have developed a product that can respond quickly.

[Reporter]

Is "TOKE pack" actually used?

[President]

I have already used it on a trial basis.

[Employees]

It has been used in about 50 places and has been confirmed to be effective.

[Reporter]

It means that you will deploy it to other companies, but will you sell it?

[President]

That's right. Expressway companies develop technology and utilize each other mutually, and I think that it is also effective on general roads managed by local governments, so I would like you to use it.

[Reporter]

Regarding data on traffic fatal accidents, it is said that there are 14 collisions with vehicles stopped at the end of traffic congestion, etc.Currently, there is also a story that Shin-Tomei Expressway has been made and traffic congestion itself is decreasing. did. Under these circumstances, if you look at this, the number of rear-end collisions that have increased in the last five years has increased.

[President]

The cause of traffic congestion is mainly due to traffic concentration and construction regulations.There is a tendency for fatal accidents to hit the end of traffic congestion, but it is difficult to analyze the relationship between accidents and traffic congestion. You. If traffic congestion is expected in advance, we are working to prevent accidents by strengthening the provision of information by installing temporary information boards.

[Reporter]

About "TOKE / Pack", please tell me the price.

[Employees]

A 500-gram bag contains 20 pieces and is sold for 5,200 yen (excluding tax).

[Reporter]

Regarding the relationship of the 50th anniversary of the opening of the Tomei Line, Tomei will be extended in Shizuoka Prefecture together with Shin-Tomei Expressway Tomei, so the effects on various aspects such as industry and tourism will be Would you please comment? Also, part of the period overlaps with the destination campaign of JR, but if you have any ideas for tie-ups, please let us know.

[President]

Comments will be described later.

[Employees]

There are no tie-ups with JR about campaigns or events at this time.

[Moderator]

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