June 28, 2010 New President Kaneko Press Conference

(Moderator)

Thank you for waiting. Today, at the 88th Member of the Board of Directors meeting, a new structure was appointed. I, Kaneko, have been appointed as President and Chairman, and I would like to give you a speech to welcome you to the new position.

(Chairman)

Nice to meet you all. My name is Kaneko. I would like to introduce the new structure of the board of directors appointed at today's Member of the Board of Directors meeting for Central Nippon Expressway Company Limited. At today's 5th Ordinary General Meeting of Shareholders, Member of the Board of Directors and Audit & Supervisory Board Member were elected, and at the subsequent Member of the Board of Directors and Audit & Supervisory Board Member meetings, Member of the Board of Directors, the representative of Central Nippon Expressway Company Limited, and Audit & Supervisory Board Member, the full-time director, were elected as shown in the handout you have received. First of all, I, Goichi Kaneko, have been appointed as the representative Chairperson of the Board and president. Please accept my best regards. Member of the Board of Directors Mr. Yoshikawa Ryoichi and Mr. Yutaka Harada were elected to the position of "Representative " and Mr. Tatsuji Takahashi was elected to the position of "Full-time Audit & Supervisory Board Member". In addition, Fumio Kawaguchi and Hiroshi Ishizuka were appointed as part-time Audit & Supervisory Board Member members, although they had some business today and were not present at the press conference.
I would like to make a few brief remarks. The Expressway business is of a very public nature, and I feel a sense of responsibility and social mission to support the infrastructure that is the main artery of Japan. I have seen the turbulent times of Japan's economy and society from the perspective of the manufacturing industry, having gained much experience in the field both in Japan and abroad during my tenure at Sumitomo 3M Co. I will be involved in the management of Expressway Corporation from today. Although our business fields are different, we share the same perspectives that are essential for corporate management, and I would like to bring together the experience and technologies of our group with the highest priority on customer first, safety, security, and comfort, and to promote tireless reforms with a focus on a field-oriented approach. The social, economic, and other business environments related to Expressway are changing drastically, but we will always take a medium- to long-term perspective and aim to become a company that contributes to the Japanese economy and society by responding flexibly and quickly under any circumstances, and to be the best Expressway company in the world. I myself, though I can only do a small part, am determined to work together with the board of directors, executives, and front-line employees to create a better and stronger company, inheriting the corporate culture and corporate culture built by former Chairman Yano, for the benefit of all of our stakeholders. Your support and understanding in this endeavor would be greatly appreciated.

 

(Moderator)

So I'd like to take your questions.

(Reporter)

In your position as chairman and president, when did you hear your appointment and when did you decide?

(Chairman)

I think I was asked in the middle of May. I don't remember the official date, but soon after, I met the Minister.

(Reporter)

As mentioned in the greeting to the employees earlier, I think my career is far from the road. How did you receive the story, and what did the president himself feel like you were asked for?

(Chairman)

I'm not sure what I was asked to do. I think it may be that since I stepped down as Member of the Board of Directors of my previous company, I was a special advisor, but for the past year and a half I've been involved in activities outside the company rather than within the company.
Regarding your first question, Expressway companies, particularly in Central Japan, are building the infrastructure that serves as the main artery for the movement of people and goods in Japan. In fact, I believe that new roads are still being constructed every day. Personally, I believe that, broadly speaking, this kind of manufacturing, and the current situation in Japan, which can sometimes feel suffocated, can be contributed to in no small way through road projects, particularly by linking local and regional areas with the central government, and by providing various services to revitalize the region. My main reason for joining is that I would like to once again contribute to these areas together with everyone at the company.

(Reporter)

You said that you have been doing external activities for a year and a half. What kind of activities were you doing?

(Chairman)

I was doing CSR activities all the time. In particular, I've been here for the past two or three years as the Vice Chairman of the CSR Committee and the Keio Doyukai.

(Reporter)

As I mentioned in the question I mentioned earlier, when I was met and consulted with the minister, one point was what the minister said and requested, and it was said that I would aim for the world's best Expressway company. I think there are many aspects to sales, can you tell us a little more?

(Chairman)

When I met the minister and told me that I would accept it, the minister said, "I want to make this company an even more energetic company with the vitality of the private sector." Thank you. That is the first point.
I think there are two things in the world. One is quantitative, for example, the total length of the Expressway that is being operated, or in some cases sales, but it is quite difficult for sales to decide on the road toll by this company alone. can not. I think it would be hard to measure the world with such quantitative data, but I think that scale is one in a way.
Another important thing is quality. It is qualitative. For example, the quality of service, the quality of the company itself, I think this is quite consistent with CSR management. Or we want to be a company that is as good as any other Expressway company in the world, in terms of the quality of our employees.

(Reporter)

In the past, your company asked me this question because it was near the Tokyo IC, but one was if I had an impression of the Expressway when using from Tokyo and such an idea Please let me know if you have a good idea for yourself. The second is that we are very sorry as soon as we take office, but a Expressway social experiment has been started today, but would you like to make any observations?

(Chairman)

As you know, my former company location was the starting point of Tomei Expressway. Therefore, I used to commute every day. As an initial impression, I think that the service is considerably better than before. There is a service area of Ebina near me, but quite a lot of people come whenever I drop in. In the future, I would like to further enhance the service. We are a Expressway company, not an amusement park, but we would like to create a SA where you can come again with a sense of wanting to go.
A little dissatisfied is traffic. I don't know how traffic jams occur because I haven't learned enough yet, but I myself have had a problem as a user. I am thinking how to do it in the future.
This is a so-called free social experiment that started at midnight today, but the first report has arrived at my hand. It is 188km in nine sections within our service area. So far, there has been no particular congestion or trouble at the toll booths or on the main line under our jurisdiction, and we believe that we have successfully started. The Ministry of Land, Infrastructure, Transport and Tourism has just announced the traffic forecast, but in our jurisdiction, the traffic volume after the start of the Masuho IC-Minami Alps IC on the Chubu Odan Expressway, and the 9-hour traffic volume from 0 to 9 o'clock is the week before. Compared to 275%. In addition, the traffic volume of about 30% is increasing on average for the eight sections. I asked the person in charge that it was the expected amount, so I was able to start safely and I was relieved.

(Reporter)

You mentioned that you worked on innovation at the previous company, but what exactly did you do? Also, please tell us how you intend to make use of what you have done as a private method to road companies.

(Chairman)

Although it is the original company, we swear innovation as a keyword or a vision. Since we are originally a technology company, we need to make such innovations and reforms before we can stand up as a company, but we will try to innovate and reform not only the technology department but the whole company. Was. As is often said in Fabre's insects, animals do not survive strong animals, not smart smart animals, but animals that can respond to change will survive. I think it is the way of thinking of innovation and reform or the way of life itself. Even at our Expressway company, a new business that has never existed before is based on safety, security and comfort first, but it is also about building a solid road, but this space is still I think it will be necessary to push forward with the development of new businesses, and in some cases, overseas, by taking advantage of this. We also believe that innovation is necessary within the company in terms of revitalization and efficiency.

(Reporter)

As for the story about making it free, what are your expectations and challenges?

(Chairman)

Since we started a free social experiment from today to March 31st, we intend to continuously change changes in Expressway, traffic volume and congestion, and report it to the country as data, After that, I would like to consider together how to work with the country.
The challenge to date was the immediate task of whether or not it could be introduced, and the system was successfully introduced. The challenges ahead have only just begun, so I would like to take regular data and work with the country to consider the future direction.

(Reporter)

I will ask you two points. Please tell us about your CSR management, especially about what you think about the environment and service areas since you came to this company.
Also, regarding the Expressway toll system, the 2,000 yen upper limit system is under continuous deliberation, but please tell us about your approach, policy, and thoughts on this.

(Chairman)

Regarding the first point of CSR, recently various CSRs have changed, but for me, CSR is something that we incorporate into our main business and is the main business itself. I think there is a lot to do in that. For example, the construction of the new Expressway, and how to protect the natural environment at that time, would be the theme of CSR. Or, I don't know how many people and how to work, I still don't know how many female employees are in this company, but I think there are various ways to revitalize female employees, outside and inside the company. Either way, I myself do not think that CSR is too large to plant trees in dry areas of the desert, for example. One or two examples I just mentioned in the main business that we are doing, but I think it is how to do such things properly. The world, especially Europe, is moving a little ahead, so I'd like to look forward and move forward.
Although we are talking about fees, we are fully aware that this is a deliberation, but we have heard that the decision will be made comprehensively at Ministry of Land, Infrastructure, Transport and Tourism in the future based on the deliberations of the Diet. . Therefore, I want to watch the transition. And as soon as the content of the new fee system is determined, we want to be able to respond promptly.

(Reporter)

Former Chairman Yano was very enthusiastic about overseas business, but while President Kaneko has been in charge of overseas business, he taught me what impressive and how to take advantage of Mr. Yano in taking over. please.

(Chairman)

I had a great experience. In 1997, the location was Bangkok, Thailand.On the 1st of July, the Asian currency crisis occurred, and one and a half years later, Japan also experienced a storm of crisis and the economy fell to zero growth. I guess. At that time, I was the Finance Officer for Asia Pacific. Simply put, Asian countries were importing significant quantities from the United States. Until now, in relation to the Thai baht, what was bought locally at 100 and sold at 170-180, but the purchase price became 200-250 at a stroke, and it was very difficult to sell at 170-180. The mission was to survive the crisis. Thanks to us, we've created an international team, and as a result we have converged in a year and a half, and when I left Asia Pacific finance, I was able to recover quantitatively, even before the crisis began. It was a great deal, but it was my precious experience. Our company has opened an office in Vietnam and has a representative. In addition, we have an agreement with Malaysia. My strengths are many times in Vietnam, Malaysia, China and Singapore. The locals know what the road conditions are and how other transportation is going, so I think that I can adapt quickly, and when it comes to overseas business, I will talk about communication I want to make use of my experience.

(Reporter)

I'm sorry for the general question, but please give me a hobby or an inscription.

(Chairman)

My hobby is sports, but I'm older. I used to play baseball, but now I can't run, so I'm playing golf now. I don't have anything special about the inscription, but I always believe that what I can do and if I can do it is my belief.

(Reporter)

This time, I think that the correct expression is privatization from the top, from the two-person system of Chairman Yano and President Takahashi, what do you think about this?

(Chairman)

This decision was made by the Minister, and it is not for me to interfere, so I will accept it. Frankly, I think it will be difficult for me to do all the work that was previously shared between the two of you by myself, but Member of the Board of Directors and staff are all gaining strength, and I am confident in what we have done so far, so although I personally think it will be difficult in many ways, I am not worried at all. I will leave it to the staff to handle.

(Reporter)

What is your impression of the company called Central Japan Expressway?

(Chairman)

There are good points and points that need to be improved in the future. The good news is that you are an expert and probably already the best in the world for technical things. The second point is that we have a strong sense of mission. The challenge is to be more aggressive. This may be wrong because I've only met for a few days yet, or maybe I'm just coming from outside and have been shy, I want you. Innovation is not determined from the top, but each one is free to say what they want. It is that such a thing is rare. This is the challenge.

(Reporter)

How do you see the impact of this free trial on the upside and downside?

(Chairman)

I'm sorry to talk with the feeling, but one is free and will increase the number of customers, as I mentioned earlier, 30%, increasing in the first 9 hours. The Expressway toll for this amount will be zero, but the increase in traffic volume in terms of services, the increase in profits, and another major purpose is revitalization of the region. It may be difficult to measure this, but I think there are two sides. I think this is the same as why the country did this. However, it is still in the experimental stage, so I think what will happen depends on the stage after the experiment and what to do based on the investigation.

(Reporter)

It was an unusual transfer this time, but please tell us if you received a request and decided immediately or surprisingly

(Chairman)

When I got to talk, I wondered why. Of course I thought a little. It means that you did not respond immediately, but left for a day and responded.

(Moderator)

This concludes the inaugural press conference. Thank you very much.