NEXCO CENTRAL (Central Nippon Expressway Company Limited)




02 May 27, 2019 Miyaike President briefing

Conference Summary

[Moderator]

We have been waiting for you. Now, I am just starting the 145th regular interview.

[President]

[Introduction]
Before I introduce the topics, let me say a few words.
In this winter, snowfall tends to be less, especially in the plains, compared to the normal year, but from January 26 (Saturday) to 27 (Sunday), it has been snowing for up to less than 19 hours at Shin-Meishin Expressway in Mie Prefecture, etc. The road was closed, causing inconvenience and inconvenience to customers and local residents.
This suspension was not due to snowfall exceeding the ability to remove snow, but rather a `` road closure '' to ensure safety as soon as possible due to the occurrence of multiple stops on the road shoulder and accidents caused by vehicles with normal tires. .
Also, looking at last year's example, on March 21 (Wednesday), when winter was coming to an end, normal tire vehicles could not run at the exit ramp of Chuo Expressway Donohara Interchange (IC), and the exit of IC was closed. Has occurred.
In this way, even if it is not heavy snow, traffic may be closed.
Even when the amount of snowfall is small, running on snowy roads with normal tires can cause unexpected accidents and hinder traffic, and may lead to long hours of suspension.
When driving on snowy roads, we would like you to thoroughly wear winter tires and carry a tire chain, so we would like to ask the media to remind us again.

[Business status (January 2019)]
Please see document 1.
First of all, regarding the business situation, toll revenue in January was 52,975 million yen, an increase of 4.5% compared to the same month last year. In addition, the average number of traffic per day was 18.19,000 units, an increase of 4.6% compared to the same month last year. Was.
In January, toll revenue and traffic volume both increased, as the impact of snow closures was smaller than last year, and heavy traffic continued to be strong.
In terms of traffic, large vehicles increased by 6.1% compared to the same month last year. This increasing trend of large vehicles has continued for about two years.
About the construction situation, we introduce contents about opening this year later.

Next is the status of the service area (SA) and parking area (PA).
See the back of Document 1.
SA / PA sales in January were ¥ 16,483 million, an increase of 3.9% from the same month last year. Sales in the food and beverage business increased by 3.3% from the same month last year.
In January, similar to the business situation, the impact of traffic closures due to snow was smaller than last year, and the sales of three consecutive holidays from Saturday 12 to Monday 14 were strong. As a result, sales exceeded the previous year.
Sales in the gasoline division increased 4.8% year-on-year due to an increase in the sales volume of gas oil, despite lower sales prices compared to last year.
It is the first time in two years since November 2016 that the selling price has fallen from the previous year.

[News related to opening]
Here are four announcements related to the opening.
First, the opening ceremony and the opening to the public for the press.
By last week, we announced the opening date and time of the four routes that will open in March.
Thank you very much for covering the press.
See Document 2-1. Here, the start time of the opening ceremony scheduled on the day of opening and the schedule of on-site release for the press related members scheduled before the opening day are arranged in a list.
Next, Document 2-2 is the announcement of the opening ceremony. Materials that describe the details of the meeting, such as the meeting time and meeting place, are attached to each route, so please check before you interview.
Regarding the Shin-Meishin Expressway and Tokai-Kanjo Expressway that will be opened on March 17 (Sun), a joint opening ceremony will be held at 9:00 at Suzuka Municipal Tsubaki Elementary School, and then a scissoring ceremony will be held at both Shin-Meishin Expressway and the Tokai-Kanjo Expressway And the beginning. See Document 2-2 for details.
In addition, on Thursday, the 21st week, the Shin-Meishin Expressway will open a site for the press to the press, and on the 23rd, a commemorative event for the general public will be held. We had you participate.
In addition, many members of the media also participated in the Chubu Odan Expressway which was released on the site yesterday, Tuesday. Thank you again.
In the future, the site of Shin-Tomei Expressway on March 5 (Tuesday) and the Tokai-Kanjo Expressway will be released on March 7 (Thursday). We are distributing the announcement of the site release of the Tokai-Kanjo Expressway as Document 2-3, so please check the contents and ask for coverage.
Next, I will introduce the effects of the Shin-Meishin Expressway and the maintenance of the Tokai-Kanjo Expressway.
Please see the booklet titled "Shin-Meishin Expwy, Tokai-Kanjo Expwy, opening March 17, 2019".
This booklet was published on Wednesday, 20th by the Shin-Meishin Expressway-Tankan Opening Effect Study Meeting, which was jointly established by Chubu Regional Development Bureau and local governments along with the Company.
I will briefly introduce the contents. Please look at page 2.
This is expected to have an economic ripple effect of increasing annual production from the Tokyo metropolitan area to the Kansai region by 155 billion yen, mainly due to improvements in corporate productivity due to reductions in travel time between regions.
Please look at page 4.
With the opening of this network, the formation of a double network is expected to enhance redundancy against road closures due to disasters and accidents, and to significantly ease traffic congestion on the Higashi-Meihan Expressway road, where traffic congestion occurs in the morning and evening, It is also expected to reduce traffic accidents.
See your booklet for more information.
Then, please refer to document 2-4.
With the opening of this Shin-Meishin Expressway, there are things that you need to be aware of when driving.
First, Kameyama-nishi the junction (JCT), lamp way is to contact the Nagoya district and Ise towards Shin-Meishin Expressway after the opening has also carried out the construction work, it will not be able to traffic.
Please use the Higashi-Meihan Expressway as before to travel between Nagoya and Ise.
This construction is scheduled to be completed in FY2019.
Next, lane operations will be changed at Yokkaichi JCT and Shin-Yokkaichi JCT.
If the car navigation system does not update the map data, the driving route may not be guided correctly.
Please follow the local signs and road signs to drive safely.
At the end of the opening, there is a preview of Suzuka PA (Pit Suzuka), which will open on March 17 (Sun) at the same time as the opening of the Shin-Meishin Expressway.
See Document 2-5.
We will hold a preview on March 14 (Thursday) for the press to open the doors to the public about the appeal of the newly opened Suzuka PA (Pit Suzuka).
You can quickly report on new rest facilities that customers will use before opening.
On the day of the event, there will be a unveiling ceremony for the F1 car scheduled to be displayed after the opening and sampling of the meal menu. Please take this opportunity to cover the event.

[We carry out disaster prevention drills at SA / PA / tollgates]
Please see document 3.
Eight years have passed since the Great East Japan Earthquake.
As part of our efforts to prevent the Great East Japan Earthquake from weathering, the Group will conduct company-wide disaster drills from March 1 (Fri) to 22 (Fri), with customer safety first.
This disaster drill has been held every year since eight years ago, but this year, with the aim of ensuring even more safety for customers, there were a total of 420 locations, including 164 SA / PA and 256 toll booths. We carry out training to have you participate in.
The training includes evacuation guidance for customers at SA and PA, and operation training for actually using the deployed emergency supplies.
As the number of foreign visitors to Japan is increasing year by year, this is the first emergency drill for our company to use multilingual broadcasting equipment (Japanese, English, Chinese, and Korean) to guide evacuation of customers. I was planning a training.
To the press, the training will be disclosed at the four SAs listed in Appendix 3.
I will inform you about the details again, so I would like you to take this opportunity to cover it.

[We will be recruiting all of the construction management work for the 2019 order]
See Appendix 4.
We outsource the work of assisting the supervision work at the construction order preparation stage and construction stage, and this is called construction management work.
In the construction management work outsourced this year, we had to place an order every time the work started, but the increase in domestic construction business and the shortage of technicians qualified as construction managers Therefore, about 70% of bids are not established.
On the other hand, our business volume is increasing, such as the Expressway renewal project, which is going into full swing, the seismic reinforcement project to respond to natural disasters, and the 6-lane business of Shin-Tomei Expressway. Security is a major issue.
Given this situation, we have decided to make a public call for all construction management operations starting in fiscal 2019 on March 1.
This also has benefits for the contractor, such as making it easier for the contractor to make an annual order plan and participating in bidding, and securing the preparation period for staffing after receiving orders at the beginning of the fiscal year. I believe.
Prior to the general recruitment on March 1, we will post the outlook for ordering construction management work in fiscal 2019 and the medium-term plan for the three-year work implementation system from fiscal 2019 to fiscal 2021 on our official website today. I would like you to refer to bid participation.
The shortage of staff around public works projects is not only a problem for the Company, but as the birthrate and aging population continue to worsen, it is expected that the problem will become even more serious in the future. I will proceed steadily.

[Renewal of work clothes]
Finally, we will introduce the renewal of work clothes.
Regarding our work clothes, we announced in June 2017 about the renewal of women's work clothes, but we have decided to completely renew work clothes worn by all employees at the site etc. I will introduce it.
Please see document 5-1.
Even after our privatization, we used work clothes of the Japan Highway Public Corporation, but as part of work style reform, we aimed to enhance safety and functionality in order to create a safer and more comfortable work environment. I decided to completely renew work clothes for the first time in about 30 years.
Regarding the renewal of work clothes, a female workforce has become about 16% of all employees due to the promotion of diversity. Therefore, the Work Wear Review Committee was established, centered on young employees, including women. Discussions were repeated.
In February of this year, the use of "full harness type fall prevention equipment", which further enhances the safety of work at heights, has been standardized.
The details of the renewal of work clothes will be explained in detail after the conference by the person in charge, so please be sure to interview us.

[Moderator]

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

[Reporter]

This year's Golden Week is approaching about two months later, but it is predicted that traffic congestion will increase more than usual due to the 10 consecutive holidays. Please tell us what measures are being considered for this.

[President]

Every year, we publish traffic congestion forecasts before Golden Week, but we are preparing to use this information as a reference when traveling on the Expressway this year. I want to let you know as soon as possible.

[Reporter]

Tell us if you are preparing for the 10 consecutive holidays during Golden Week, such as securing staff, in a situation where various companies and industries are having trouble responding in various ways.

[President]

In terms of congestion measures, we will provide information so that we can inform you of the traffic congestion forecast I mentioned earlier as soon as possible and make a plan to avoid traffic congestion. Expressway is a “natural” road, so we would like to take measures to avoid inconveniencing customers.

[Reporter]

For example, is there a shortage of people in SA or PA, or is there a request for support from a temporary agency to secure the number of toll booths?

[President]

At the moment, we are not thinking about that in preparation for this Golden Week.

[Reporter]

With regard to the forecast of traffic congestion during Golden Week, please tell us how much traffic congestion on the Higashi-Meihan Expressway road will be reduced by opening a new section of Shin-Meishin Expressway this time.

[President]

We anticipate that traffic on Higashi-Meihan Expressway will be significantly eased with the opening of Shin-Meishin Expressway. Depending on the concentration of traffic during consecutive holidays, traffic may be congested, but it is predicted that the opening of Shin-Meishin Expressway will reduce annual traffic congestion at Higashi-Meihan Expressway by about 90% So I think Shin-Meishin Expressway is very effective.

[Reporter]

Meishin is often crowded, but how about there?

[President]

Regarding Meishin, we have not yet taken measures around Ichinomiya JCT, so we expect that the congestion situation will not change significantly. About this, we push forward examination in local study meeting and want to push forward neighboring traffic jam measures as soon as possible.

[Reporter]

It is stated in the materials that the Shin-Meishin Expressway is expected to have a spillover effect of 155 billion yen annually as a result of the new opening, but please tell me how this figure was calculated.

[President]

The opening of the Shin-Meishin Expressway shortens travel time and increases corporate productivity, as well as the location of factories and the increase in tourists. As a result of calculating such a thing using an economic model, such a figure was calculated.

[Moderator]

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