August 22, 2006 Chairman Yano's regular press conference

Hello. Today, I would like to explain two points first.
One is the overview of the business in July. The other is to launch a new lunch box called "Hayaben" on the Expressway, so I would like to explain that.

First, I will give you an overview of the business in the order of the materials you have.

First of all, Expressway, but overall toll revenue in July was down 5.1% year-on-year. The breakdown is minus 6.0% for expressways and plus 4.6% for general toll roads. The reason for the decrease in sales of Expressway is the time zone discount amount of Large due to the spread of ETC, and the influence of long rains and road closures.
For those who have one, the network effect has appeared on the Tokai Kanjo Expressway or Isewangan Expressway Road, which has led to an increase in sales.
The number of traffic is minus 0.9% compared to the same month of the previous year. High speed is plus 1.6% and Ichiyu is minus 10.0%. I think that the reason why the highway increased a little is due to the time zone discount due to the spread of ETC and the economy Large, but I think that it was sluggish due to the long rain and the road closure.
The decrease of 10% in Ichiyu is due to the fact that roads such as Toyogawa Bridge and Manazuru Road have been made free of charge or taken over by the public corporation, and the number of routes themselves has decreased.

The construction situation is the same as the previous month.

Regarding the status of successful bid rates for construction contracts for major types of work, it was 88.01% for the entire July and 87.2% for the cumulative total for the year.
For pavement work, the winning bid rate is 96%. The contents of these seven cases are the work of cutting or overlaying the old paved road surface that has deteriorated, and the work of reinforcing and improving the floor slab of the bridge with special concrete. As you know, there are very special environmental conditions such as time constraints and construction yard restrictions, the specialization of machines is progressing, and the estimation standard required for estimation has been announced, and the material unit price Since the materials are also available on the market, I think that highly accurate estimates will come out.

Next is the situation of ETC. Taking the period from August 4th to 10th, compared to the previous month from July 7th to 13th, the number of units used is + 10.5%, and the ETC usage rate is -2.2%. The cumulative number of on-board units installed at the end of July is expected to be + 4.0%, or about 450,000, compared to the end of June.

The status of the service area. Sales have fallen slightly to 97.6% year-on-year. The food and beverage department accounts for 96.9%, and the product sales department accounts for 97.6%. The gasoline sector accounted for 98.4%, which was negative for July.
Since the beginning of August, the gasoline stations have been in a situation where there are lines, and sales have increased significantly.

This is the overview of sales.

Next, I would like to see the materials that are also distributed here, but we have decided to release a new brand lunch box named "Hayaben" at Expressway. JR and railroads have "ekiben", and airplanes have "soraben", but Expressway decided to go with "fast valve", so this holiday season , We are currently selecting several locations around October, and I would like to start selling there. This is an attempt for the autumn holiday season. We would like to sell a slightly luxurious bento by consulting with a famous restaurant in the area or a bento company and receiving supervision from that restaurant. Among them, I would like to work on women as one important target.

That is all for my initial report.

 

(Moderator)

So do you have any questions?

 

(Reporter)

Will other companies also develop "quick valve"?

 

(Chairman)

Only in Central Japan. This is our own measure, and we do not know the trends of other companies. I applied for trademark registration in July, and I think it will take more than half a year to complete the registration.

 

(Reporter)

Do you think that other companies will not allow the use of "quick valve"?

 

(Chairman)

No, that's not the case. If the name spreads, sales will increase, which has a synergistic effect, so if you have such a request, feel free to use it. At least in principle, I want to do that.

 

(Reporter)

How much do you think the price is?

 

(Chairman)

We are thinking about 1,000 to 3 to 4,000 yen. It's a little expensive to say 3 to 4,000 yen, but I'd like to make several types with a wide range.

 

(Reporter)

Do you sell different bento boxes in several places?

 

(Chairman)

I think I'll make several different prices and put them in the first few places, but I haven't decided on the details.

 

(Reporter)

The sales of SA are lower than the previous year. What is the cause?

 

(Chairman)

I think there are many possibilities, but I think the Chubu region was greatly affected by the Expo. Compared to last year, the numbers are going to be tough. I think that is the biggest factor.

 

(Reporter)

It is said that sales of GS have increased significantly since the beginning of August. How much has it increased?

 

(Chairman)

I will inform you about the whole month next time, but it will be the number of the peak Obon festival, but sales in 10 days from 9th to 18th are 176.8% compared to the same period of the previous year. Food and beverage sales were almost flat at 99.5%. It means that GS has increased by nearly 80%.

 

(Reporter)

How many gas stations are there?

 

(Chairman)

Everything in our jurisdiction. We will inform you about the number of locations later.

 

(Reporter)

What is your annual target sales for bento boxes?

 

(Chairman)

For the time being, it is about 400 million yen. We may change the existing ones to quick valves, but the goal is about 400 million yen. Annual sales of bento boxes such as rice balls and sandwiches are about 4 billion yen, so I think we should aim for about 10% of that.

(Reporter)

Do you make your own small store and sell this bento, or do you sell it at an existing store?

 

(Chairman)

I haven't decided exactly what to do. It may be enough to set up a special store. When you start, see the reaction, and the amount you can purchase increases, I think that you need a special place, so I would like to consider that area as well.

 

(Reporter)

Have you decided where to make the first store?

 

(Chairman)

Right now, we are considering "in several places". I haven't asked where it will be, but I would like to consult with each area and decide by looking at various conditions, such as "There are many cars to stop by" in time for the holiday season two months later. .. At the stage of next month, I think we can talk about where to do it.

 

(Reporter)

Do you give your lunch a regional character? For example, do you make an eel lunch box at Lake Hamana and sell only that? Or will the same bento be sold in Shinshu?

 

(Chairman)

Since we will consult with local lunch boxes and famous restaurants, I think it will be regional.

 

(Reporter)

It is said that you cooperated with JTB Chubu in application registration. How did that happen?

 

(Chairman)

The basic idea is that tourism will increase in the future, and in that respect, JTB is the most influential tourism expert, and has been selected as a consultant and has borrowed various wisdom. In the process, we talked about bento boxes, and we came up with the name "fast bento" and decided to "register" it. This is an idea that was decided after consulting with both parties.

 

(Reporter)

Do you plan to do it comprehensively instead of consulting with JTB Chubu only about bento?

 

(Chairman)

We haven't materialized the discussion in a wide range yet, but I think there is a good chance that the discussion will spread as a result.

 

(Reporter)

What role does JTB Chubu play in bento boxes?

 

(Chairman)

We are on an equal footing with us to think together and acquire rights together. It is a professional vendor who actually makes bento boxes. I am in the position of a joint right holder.

 

(Reporter)

It is the time when Tokai-Hokuriku Expressway was opened, and it was said in the interview that it was March 2008, but I would like to ask you to tell us the specific time again.

 

(Chairman)

The exact date and time has not been decided, but I would like to open it in March 2008, the end of next year. If it is possible to move forward, I would like to do that as well, but considering the current schedule, I think March next year is just the right time.
Talking about the progress of the actual work, the Hida Tunnel is 10.7 km long, but with 1,200 m left, the construction is proceeding smoothly. If it is left as it is, it will penetrate by the end of this year, and from next year it will start interior work such as maintenance of internal road surface and wall surface, installation of related equipment. I think it will take a year. We would like to open it in March and make it available to everyone.

 

(Reporter)

You say that gasoline sales are strong, but I think that gasoline prices are rising and there is a tendency to refrain from using cars. What are your thoughts on the impact?

 

(Chairman)

The number of cars passing by is only a slight increase, but I think that there is a change that drivers who used to use gasoline in the city are now using GS on the Expressway. I think the price is the main reason.

 

(Reporter)

In the long run, I think that the high price of gasoline will affect the overall use of highways, but what about that?

 

(Chairman)

There is a good chance that the driver's way of thinking and behavior will change, such as refraining from driving, switching from a large car to a small car, or moving by sharing, and one of them may be a decrease in traffic volume. Hmm. That is one of our considerations.

 

(Moderator)

If there are no other specific questions, today's regular press conference will end.

 

(Chairman)

Thank you very much.