July 21, 2010 Kaneko Chairman and President Regular Meeting

(Moderator)

Thank you for waiting. The 57th regular press conference is about to begin. As we all know, I am Goichi Kaneko, who was appointed Chairman and President of the Company at the General Meeting of Shareholders on June 28 and the Board of Directors meeting held subsequently. Kaneko will meet from today.
Since this is my first meeting today, there are materials that summarize our corporate vision, so Kaneko will explain it. As I will explain in PowerPoint, we have handed out our company newsletter, "To Michi no Tomorrow." You can listen to the explanation as you read it, as the contents to be explained will be described on pages 6-7. After that, we will start a regular regular conference. Thank you.

(Chairman and President)

I'm Kaneko. As I just heard from the moderator, I took office on June 28th. Today is 3 weeks and 3 days. There are still a lot of things that I have to study, but I would like to briefly explain what I realized in these 3 weeks and 3 days.First, I went to each Regional Head Office and the construction site in about 3 weeks and 3 days. It was. It's a new miso again, but I was impressed by the technological capabilities we possess, the capabilities of our employees, and their sense of mission. I think that how to maximize the use of these assets and how to expand them is an increasingly important issue, and I have great hope. This is the first point. The second point is that I have been working in Tokyo for a long time, so I feel that Nagoya is really hot.

Now for the first time, I would like to briefly talk about our corporate vision. On the first slide, our corporate vision of NEXCO Central Japan Group is to be "the world's best Expressway company", and we would like to realize it by aiming for "a better company and a stronger company". I will. As for the timing, we are aiming for five years, which is not too long. The world's number one Expressway company is the technological strength, management ability, motivation, and passion of the group employees that I just mentioned. It is a company. From now on, I would like to make more concrete discussions within the company that can be measured numerically in terms of both quantity and quality, and when I am the number one in the world, quality is very important. .. The quality of the company, the quality of service, and the quality of employees. A better company is a company that is trusted and appreciated by society by constantly innovating and fulfilling its corporate social responsibility, and a company that employees and their families can be proud of and proud of. Wants to be the best Expressway company in the world based on the definition of a company that has high competitiveness and technological capabilities, keeps a profit in any environment and continues to make a profit, and a company that continues to grow. I think this way. The management policy will continue to be the basic policy of the five-year plan, while advocating “promotion of CSR management and the challenge to leap forward” as before.
The next slide, which is not yet finished, is a diagram of the idea I mentioned. The current point is the starting point, the vertical axis is the degree of growth, and the horizontal axis is the time axis. About 5 years later, we will become the world's best Expressway company by creating a stronger company than the current one. We would like to use this as our immediate vision and target value. And it would be a little further in the future, it was a dream of employees 10 or 15 years later, or why Nakanihon Expressway became privatized, what should a true private company be? On the other hand, I have a dream toward the realization of these in the upper right. The idea is that the best Expressway company in the world may be on the way. In the future, we would like to promote internal discussions on such dreams including all employees and what kind of company we aim to be in the future.
On the next slide, we list six as our more specific basic stances as a management philosophy. The most important things are (1) customer first, and (2) gaining the trust of society, (3) staying innovative, (4) focusing on the environment, (5) Stand on the scene, think and act, (6) Value teamwork. Up to now, we have declared 6 basic postures in addition to 5 basic postures.
Next is the challenge of promoting CSR management and making a leap forward. Today's company does not mean that if only your own company, your employees, and your customers are happy, your company will run well. As stated here, if all stakeholders, that is, customers, local communities, business partners, citizens, the international community, and all of our employees can be satisfied from their respective positions, the degree of trust of the company We believe that it will be connected to, and we will earn the trust and satisfaction of all stakeholders.
Lastly, there is a chart for creating a company in the future, to put it a bit more, how to achieve the dream. A corporate culture that inherits the assets, know-how and human resources of the company. We will grow, change, and innovate in order to innovate, take good points to create our new corporate culture, and grow toward our dreams. It is a vision to go.
I'll give more details when I have time, or as time goes by, this topic will be a little more packed, so I would like to announce it again at that time.

Returning to the main topic, there are about four.
The first is the current business situation for June 2010. Fee income in June was 35,866 million yen, a decrease of 0.4% year-on-year. The breakdown is that the Expressway expresses 32,691 million yen, a decrease of 0.6%, and the general toll road 3,175 million yen has an increase of 1.5%.
On the other hand, the average number of traffic in June was 1,702 thousand units, an increase of 3.7% year-on-year. The breakdown is 1,343 thousand daily Expressway, an increase of 2.8%, and general toll roads 359 thousand daily, an increase of 7.6%. Expressway, although the number of passengers increased, toll revenue declined slightly compared to the same month last year due to the increase in discounts. With regard to general toll roads, both the number of vehicles and toll revenue increased.
This month's ETC discount amount was 26.9 billion yen, a 9.9% increase from the same month last year of 24.5 billion yen. The ETC discount rate is approximately 42.9%.
Next, regarding the status of ETC, the average daily number of passengers is a positive 4.8% compared to June 11th to 17th from the latest July 9th to 15th. The average daily usage rate is 86.5% to 82.8%, which is a negative 3.7%. The decrease in usage rate seems to be due to an increase in the number of customers who do not have ETC. By weekday, the average usage rate on weekdays was 3.8%, down from 86.6% to 82.8%. The average usage rate on weekends and holidays was 86.3% to 82.6%, which was also a negative 3.7%, decreasing on both weekdays and weekends and holidays. In addition, the cumulative number of vehicle-mounted devices installed at the end of June was a positive 0.9% compared to the end of May, a total of 290,000 units, or 31.4 million units.
It is the situation of the service area. As you can see, sales are 98.5% of the same month last year. The amount is 164 million yen. The food and beverage sales department accounted for 95.6% of the same month last year. The service division is 85.1%, which is a minus of about 5 million yen. Although it is the GS department, it is a positive value of 109.5%. This is because the unit price of gasoline is higher than last year. The above is the situation of the service area.
That is all for the current business situation.

Next, as the first topic, I would like to report on the second reopening of the Tomei Expwy Ashigara Service Area.
I think you have the materials and photos at hand, but the Tomei Expwy Ashigara service area (upper and lower lines) will be reopened on August 12th. The first phase renewal was already open in April, but this time we are announcing the second phase renewal.
In-bound line is the ramen shop "Sosai Menka no Nomi", which was first produced at a Expressway store by Minoru Sano, a heavy-duty ramen world. 4 stores will open. Out-bound lines include Tonkatsu Shinjuku Saboten, the first Expressway store, and the Ginza Cozy Corner, which has a wide selection of sweets, as well as 10 stores that will welcome 17 customers as a new face of Ashigara SA. ..
Regarding the purpose of promoting such renewal, in NEXCO Central Japan, from the “passage type SA” which was only the transit point of the movement so far, it will be a commercial complex by providing stores that meet various needs of customers. We are aiming to become a “stay type SA” that is selected as a destination by constructing facilities. And for those who live in the neighborhood, you can use it from the Platt Park installed on the general road side.
In addition to the Ashigara SA this time, we are also proceeding with business at the Higashi-Meihan Expwy Gozaisho SA (upper and lower) and the Meishin Expwy Taga SA (Out-bound), all of which are scheduled to open in 2010.
In addition, these renewal works are CO ₂ We also implement environmental considerations such as reductions. For example, LED lighting to save electricity, water-saving toilets to save energy, heat pump air conditioning to save energy, double glazing, rooftop greening and heat-insulating pavement insulation, idling stop power supply station and EV quick charging station CO ₂ We are also working on environmentally friendly areas such as emission control. I think you have a photo of the image at hand. I also went to the scene, but the scene is much more beautiful than the image photograph. I hope you can use it.

Next, I would like to report the results of the "2nd Customer Service Contest" that was announced in June.
At NEXCO Central Japan's rest facility, about 8,000 staff members work. Grand Prix to be the apex of its 8,000 people, Meishin Expwy Yoro of SA In-bound there in, Kozuki working in shopping corner (Kozuki) Nana's has been awarded. In addition to the Grand Prix, we have also decided on the winners in the three categories of food, beverage, product sales, and specialty stores.
The customer service contest is held for the purpose of improving CS and customer satisfaction by having the tenants and staff work hard to improve the customer service level. We believe that it is important for a company to make our customers happy to use the rest facilities by improving their CS.

The next report is about COP10 as an environmentally friendly initiative.
We are participating in the COP10 partnership business as an environmentally friendly initiative. As part of our management policy of "strengthening regional cooperation" or "contributing to the environment and sustainable society," we are participating in and cooperating with events related to COP10.
In May, we participated in the "Memorial Festival" half a year before COP10 was held.
Recently, as COP10 partnership business, "Ken-O Road" made at the 5th newspaper Fair Ekorodo Exhibition "and the Expressway has registered the (bridge) Competition". In your hand, but I put a picture of last year's situation, for more on the article, "Ken-O Road Fair Ekorodo Exhibition", Ken-O Road in the Hachioji junction of, the natural environment conservation efforts, It will be introduced by exhibit panels and videos.
And at the bottom of the document, the "5th newspaper Expressway (bridge) contest" is a contest to build strong and beautiful bridges with familiar newspapers. The design theme for this year's Design Department is "Environmentally Friendly" Bridges. For these reasons, we have been holding COP10 for about three months, but we would like to continue to support COP10.
The above is four reports from me.

 

(Moderator)

So I'd like to take your questions.

(Reporter)

First of all, how should I call you?

(Chairman and President)

Kaneko-san is fine. I'm trying to go along with it in-house. Even the president is fine.

(Reporter)

In the corporate vision, you talked about quantification, but it is possible to imagine it in terms of quantity, length, and management profits. Please tell us the image of the president when quantifying quality.

(Chairman and President)

For example, taking the quality of employees as an example, the degree of activation of female employees, such as the percentage of women in managerial positions, can be clearly quantified. thinking about. It is to follow in time, or to set a goal for a wonderful company. Since I used to work on Six Sigma at my previous company, I think that how to quantify things that are difficult to quantify is an important part of the discussion among employees. I think it is important to check whether the important part of digitization is really progressing.

(Reporter)

Please tell us what you have in mind when you aim to be the best in the world, and if you have such resources, you can make use of them in such places.

(Chairman and President)

It's still 3 weeks and 3 days, so I felt it, but I think one is the service area. I think we can provide various services. We would like to increase the number of repeaters who stay and stay nearby. Of course, safety, security, and comfort are important, but I think we can not only pass, but also grow as a business. Another point is the technology part, and we have decided to support not only domestic but also overseas, Vietnam and Malaysia, but we are still consulting with the Ministry of Land, Infrastructure and Transport, but still overseas I think there is room to grow, and there is room to wait to use our technology. I think it can be fully deployed to that person.

(Reporter)

I think that Malaysia is currently limited to exchanging human resources, but are you promoting business like Vietnam?

(Chairman and President)

As you pointed out, that is the situation at the current level, but I think that it will be like Vietnam in the future, but first I will try to lay the groundwork for personnel exchanges.

(Reporter)

I think that the day you were inaugurated was the day you started the free trial, but after the three weeks since your inauguration, I would like to ask if you have any numerical changes in the number of units.

(Chairman and President)

The national average for one week announced by the Ministry of Land, Infrastructure, Transport and Tourism increased to 179% and to 149% for NEXCO Central Japan. The most recent example is that during the three consecutive holidays, it increased to 208% in the national average of 50 sections compared to before the free social experiment. In NEXCO Central Japan, it was slightly lower, at 177%. Regarding the traffic congestion I was worried about, the reality was that there was not as much traffic as I expected.In our 9 sections, 17 days were 3 sections, 18 days were 4 sections, 19 days were 5 sections, 1km The above traffic jams occurred 24 times in total. I think that we have made a good start without major accidents and troubles caused by this free use. The Ministry of Land, Infrastructure, Transport and Tourism is the main player in the free trial, and we are continuing this with the aim of reducing logistics costs and revitalizing the local economy, and we will continue to do so. I would like to collaborate with and conduct a survey.

(Reporter)

Do you think the free experimentation will change the length of the traffic jam or something like that?

(Water TL)

Regarding the length of the traffic jam, I previously reported that there were 24 traffic jams of 1km or more this time, but last year's 3 consecutive holidays there were 7 traffic jams in the same free section. . Therefore, although it is increasing in terms of the number of times, it is a situation that can not be discussed unequivocally as the length of the free section is originally short.

(Moderator)

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