NEXCO CENTRAL (Central Nippon Expressway Company Limited)




May 20, 2010 Chairman Yano's regular press conference

Conference Summary

(Moderator)

Thank you for waiting. The 55th regular press conference is about to begin.


(Chairman)

NEXCO CENTRAL Hironori Yano, Chairman and CEO

You very much Hello.
First, I will report on the current state of the business. Also, including this, there are 7 cases today.
First of all, Expressway situation, toll revenue in April was minus 0.4%. The high speed is minus 0.8%, and the one is plus 2.9%. As for the number of traffic, plus 5.2%, highway plus 4.6%, and monopoly plus 7.7%. The relationship between this toll revenue and the number of vehicles passed is the same as last month.

This month's ETC discount amount was 16.6% higher than the previous month. The ETC discount rate for this month is 44.3%. If there is no ETC, the fee income will be 65,896 million yen, a year-on-year increase of 6.4%.
The construction situation has not changed from last month.

The traffic volume by vehicle is reported every time, but compared to this year (2010) and 2009, light 109.1%, medium 102.5%, medium 106.8%, large 113.2%, extra 123.0%, total 104.6% %is. Compared to fiscal 2008, light is 112.8%, medium 101.3%, medium 92.5%, large 93.0%, extra 94.5%, total 100.5%. For medium-sized and larger models, it means that they have not returned to 100% compared to the fiscal 2008 level. On the other hand, the mileage / km is 100.0% for light vehicles, 102.7% for medium vehicles, 107.8% for medium vehicles, 111.9% for large vehicles, and 121.3% for oversized vehicles, which is a total of 105.6%. Compared to fiscal 2008, 120.3% are light, 111.1% are medium, 94.0% are medium, 96.7% are large, and 100.7% are extra large, for a total of 106.8%. None of them are the same as last month.

Although it is the situation of ETC, the average daily usage rate is 86.4% on a monthly basis. The same month last year was 81.8%, so it is about a 5% increase. Most recently, April 9-15, 86.4%. 86.4% from May 7th to 13th, so it has been flat for the past month. It means that it is flat on both weekdays, weekends and holidays. The number of in-vehicle devices installed is 3,089,000, which means that the total number of on-board devices will be 37.6 million including re-setup.

Although it is the situation of the service area, sales are 106.1% of the same month of the previous year, and if you look at the breakdown, the food and beverage sales department is 100.7%. 97.6% of food and drink is a little sluggish. Among them, 100.4% are snacks, but 86.2% of restaurants are struggling. Merchandise sales are 102.6%. The service division is 85.7%. This is a rest-in or bath. Since it is a small-scale business, there are large ups and downs. Although it is gasoline, it is 126.1%. The unit price is 20 yen and the quantity is 100.3%, so if you multiply both, the sales will be 126.1%. The advertising department is 187.5%. This is also a department with a small absolute number, and I don't think there is a tendency to see it just by looking at the months. The above is a general overview of our business.

Next, I will report on the traffic conditions during Golden Week. I reported the breaking news on the 6th of this month, but I will report it because I have summarized the contents with analysis this time.
This will be reported by Mizukami, who is in charge.

 


(Water Traffic Team Leader)

Based on the materials at hand, the first is the traffic situation. The graphs in the data show small cars and all cars this year from 2008 to last year and this year, but on an average of 8 days for the whole period, compared to last year's Golden Week, both small cars and all cars increased by 3%. Compared to 2008 before the start of the special holiday discount, the increase in size is approximately 31% and that of all cars is approximately 23%. And when comparing the traffic congestion situation with a traffic jam of 10 km or more, it is the same 151 times this year compared to 2009, which is unchanged. If the traffic exceeds 30km, it will decrease by 22%, and the number of times will decrease by 5 times. Comparing this with 2008, traffic congestion of 10 km or more increased by 96%. There was a 13% increase in traffic over 30 km.
To summarize, the traffic congestion of more than 10 km was concentrated in the first half of the consecutive holidays last year. The first half of the year was concentrated on May 2, 3, and 4th last year. This year the peak shifted to the second half. In the latter half, we are shifting to the 3rd, 4th, and 5th. And as the peak shifts to the second half, traffic congestion is increasing from April 28th to 30th before the consecutive holidays. Regarding this tendency, it is estimated that the traffic volume fluctuated due to the following factors. First of all, this year, special discounts for holidays were applied before consecutive holidays, so I suspect that the traffic concentration on the first day of consecutive holidays may have been dispersed before the consecutive holidays. Last year, the second half of the consecutive holidays, especially May 5th and 6th, on last May's day, the weather collapsed around here and it was raining. . It is a situation that the traffic volume increased during the consecutive holidays and the second half. It's easy to say, but there are some traffic conditions during Golden Week.

 


(Chairman)

Next, we decided to introduce a cost-on method for procurement of construction materials. This is one of today's announcements. Hibino is in charge of this matter because it is a new method that starts from a bid for a part of construction materials by competitive bidding.

 


(Hibino Technical Management Team Leader)

I am Hibino from the Technical Management Team. Take a look at the back side of the materials you have, and first explain the cost-on method. The upper one is the cost-on method, and the lower one is the conventional material procurement method. Previously, each construction company procured construction materials individually, and each construction company also decided its suppliers and prices. Regarding the cost-on method, we will procure materials to be used in multiple construction projects collectively in a competitive bid, decide the supplier and price in advance, and reflect the content in the contract conditions before construction. It is a method of contracting a construction company by competitive bidding. By doing so, we believe that we can expect to reduce material procurement costs by taking advantage of economies of scale.
Returning to the surface, we are considering three types of materials to be targeted this time. All of these are considered on the Shin-Tomei Expwy, including tiles for tunnel interior boards, tunnel lighting fixtures, and metal sound insulation boards for sound insulation walls. For example, the number of tiles is about 200,000m. 2 In June, we will announce the procurement of about 10 million pieces. After August, we will announce the bids for 7 tunnel interior plate constructions that reflect the procurement source and price in the contract conditions decided by the bid result. Similarly, there are about 25,000 tunnel lighting fixtures and about 70,000 m of metal sound insulation boards. 2 We are targeting a quantity of about 50,000 sheets. For details of each material, please refer to the materials of the bid announcement that will be announced in the future. In addition, we plan to Large this method to other materials in the future. That's it for the explanation.

 


(Chairman)

Next, we will enter into an agreement with the University of Tokyo to collaborate to promote joint research. This is also today's announcement. The University of Tokyo has a mechanism called Proprius 21, and we have signed a contract for such a project. What does this mean? A mechanism for jointly searching for optimal research themes and partners between companies and universities to formulate a joint research plan before deciding on a specific theme for the joint research. There is. I will enter here and consult from now on, but during the one year contract until March next year, I will decide a concrete joint research theme during this period and start it. Last month, we talked about a comprehensive agreement with Nagoya University, and on May 13, we signed the agreement between President Hamaguchi of Nagoya University and President Takahashi of the Company. This is a plan to strengthen cooperation.

Next, a part of the Meishin Expwy Taga service area (Out-bound) will be newly opened. This is also one of today's announcements. We haven't finished all the renovations yet, but it means that part of the construction will be completed at the Taga SA Out-bound, and 10 stores will open in the newly built building on June 24 at 8 am. After this, the second and third bullets of Taga SA are being renewed, but there are shops that are developing mainly in Shiga Prefecture, souvenir shops with sweets, underground department stores, etc. We would like to open a new store with the cooperation of famous stores that are also opening. We are aiming to become a commercial complex by changing from transit type SA to stay type SA, which is the first step. In the future, we plan to open five locations within 2010, including one above and below Ashigara SA of Tomei Expressway, above and below Gozaisho SA of Tomei Osaka, and this time. The name of the store to be opened and the overall building are as described in the materials.

Then, premium Drivers' card SA · PA point 20 times campaign, which is also There is a Today's announcement projects. The Company issued we have premium Drivers' that if you will use the card credit is usually, but is that available per 2 points, to put up 20 points for the period between July 15 from June 1 It is a thing. This is a 10% reduction.

Lastly, there are two examples of environmental measures that we introduce every time. The first case is the recycling of tempura waste oil, and I summarized the usage situation in 2009. This is a waste oil of the tempura oil used in SA, which is recycled and used as biodiesel fuel. It started in December 2006. In fiscal 2009, 17 vehicles, including marked vehicles and road cleaning vehicles, used 38,200 liters of biodiesel fuel. Until fiscal 2008, but had been used in the Fuji Metropolitan Hikone conservation and Service Center, fiscal 2009 it Large by we, Shizuoka, Fukuroi, Otsuki, Kofu, the Fu of Matsumoto in seven locations from two places Large I am doing it. Approximately 72 tons of CO due to not using light oil 2 It is estimated that the amount of emissions has been reduced. This is equivalent to 6.8 hectares of forest CO 2 The amount of absorbed forests is about 1.4 times larger than the area of the Nagoya Dome. Although it is still small, I think that the results of recycling are coming out year by year, and I would like to continue implementing it in the future.
The other environmental issue is COP10, which is Saturday, May 22, next Saturday, which is the International Biodiversity Day set by the United Nations. We plan various events on this day, and we will actively participate. Various exhibitions will be held at Oasis 21 in the city on the 22nd and 23rd, but we are committed to biodiversity efforts, regional seedlings and highway compost, and the protection of rare organisms under the Shin-Tomei Expressway We would like to exhibit and participate in the contents we are working on, such as Midori no Sato. With regard to tree planting, we plan to have nursery school children and their families at Toyota Junction join us to plant saplings on the embankment slope, entitled Highway Midorinosato Project. We will plant trees from 10:00 on the 22nd. This activity is also registered in Green Wave 2010, which is planting trees all over the world.
That's all for the explanation from me.

 


(Moderator)

So I'd like to take your questions.


(Reporter)

You say that you will implement the cost-on method by collectively procuring construction materials. How much cost do you expect to achieve by doing this?
Also, I heard that you are going to research the content of your joint research with the University of Tokyo. What kind of fields do you want to work with as a company?


(Chairman)

Hibino will answer in the first half.
For the second half, the most familiar theme is civil engineering. I think the joint research on technology mainly on civil engineering that captures a wide range of environment, etc. is the closest, but this Proprius 21 (Proprius 21) is wide and it is possible not only for technical fields such as humanities, but while studying well I want to find out.
I'd like to start from a convenient location.


(Hibino Technical Management Team Leader)

Although it is an effect of cost reduction, it is not possible to answer unconditionally because the amount related to this material procurement will be bid in the future, but so far, the average successful bid rate when materials are included in the construction is 80 ~ It was about 90%.
Considering that this time's bulk procurement will bring further economies of scale, we are expecting at least 10% to 20% or more cost reduction in procurement of each material.


(Chairman)

I would like to try it out and report again.
This is from June, so I would like you to hear the report by the end of this year.


(Reporter)

Are there any precedents in other companies related to cost-on?


(Hibino Technical Management Team Leader)

There are cases in which this system is used by other organizations and road companies, and we would like to work with reference to such cases.


(Reporter)

The other day, Minister Maehara said that he would forgo implementing the new tariff system from June, but the chairman's view on that and, again, this new tariff system, the price will be raised for short distance users. There are some suggestions, but what do you think?


(Chairman)

We understand that the new fee system will be a little later, and that social experimentation for making it free will come first. We are preparing for that. Since this means conducting social experiments in addition to the conventional discounts, we would like to proceed with system and other preparations so that it can be implemented in late June on such a premise.
For other new tariffs, this will need consensus in the broader sense, so we will make every effort to implement it at a fixed stage. It's about waiting for results.


(Reporter)

Please tell us what kind of things you talked with locally that had an impact on your business when the chairman visited Vietnam earlier this month.


(Chairman)

Maybe the original purpose was to confirm the will between the two governments, and Minister Maehara went there, so I think it was the purpose of this time to exchange opinions between the governments on various projects.
Among the various projects, there are railroads, our Expressway there are many, but I also accompanied and participated in a place where opinions were exchanged.
Regarding the Expressway project, it does not mean that specific projects have progressed there, but rather, we have been in Vietnam for a while, which we have been doing for a long time, so we talked with the other party. That's why.
So, I met VEC (Vietnam Expressway Corporation) as a business partner, and I will discuss it separately with them and freely discuss what to do from now on. It was
I also met MOT (Ministry of Transport), the government agency in charge of actual Expressway construction, and I met with the people there. I had the opportunity to meet with Minister Maehara and the following Ministers and Deputy Ministers, but apart from that, I also exchanged opinions with Deputy Ministers and below of MOT.
Then there is the Ministry of Planning and Investment (MPI). I am called the Ministry of Planning and Investment, and I met with Mr. Maehara with the Minister and Deputy Minister there, but I heard about the future investment plan in Vietnam separately from the Deputy Minister, and as we, I talked about the plan I have now.
I'm glad I went to Vietnam after a long time and communicated with all the important people.
It is a young country as a whole, and the average age is young, or it is finally young, but I think that it is a country with tremendous enthusiasm, I strongly thought that it would be good to use it in terms of Expressway I came home.
After all, I think that it is always important to do social infrastructure that there is a relationship between governments and a relationship of trust. It's a bit different from selling ordinary commodities, so it takes time, and it takes a lot of money to procure funds, so it's encouraging from the side of our business to have good relations between governments. In that sense, I am glad that I participated in the upcoming mission.


(Reporter)

Do you have any specific agreement on the project?


(Chairman)

The story has not progressed to that point. I've said that I'm interested in various businesses, but I'm afraid that it won't come true, and I think it will take more time.
Also, once a specific project has been decided, I would like to make an opportunity to explain it here as well.


(Reporter)

Expressway In connection with the new tariff system, Minister Maehara said that it will be implemented in June, and Mr. Ozawa pointed out that it is turning over, not only road companies but also traffic Relationships and JRs and related organizations seem to be swayed a lot, but I think that your company is calm according to the plan. How do you see the political situation, or the policy changing over and over?


(Chairman)

I think how difficult it is to create a consensus based on new measures.
In that sense, I can fully understand that it takes time, so I think it is good that various opinions are expressed at the Diet and openly discussed.
I think it is our job to prepare the necessary things while assuming such things.


(Reporter)

Regarding the new construction of the Taga service area, it is said that it will be converted to a stay type service area, but I would like to ask you again to comment on the impact on profits and the merits of users regarding the conversion to a stay type service area. .


(Chairman)

I can't say how much sales will increase yet, but I think this will be an opportunity for customers to stop by at the attractive service area to buy and eat. I will. I think that there will always be a reaction, as it means that we will embody the ideas we have gained while conducting various customer surveys.
For example, this is the Out-bound of Taga, but the newly built area has a net increase in area, which is 1.6 times the sales floor area up to now.
After that, we are planning Gozasho SA and Ashigara SA, but we are considering Large the sales floor area by 20 to 30% respectively.
In addition to that, we want to take a bold step here to change what we think we were missing.
For example, expand the parking lot. In Taga, the space for small cars will be increased from 81 to 199, and for large cars it will be increased from 58 to 81.
After that, I called Plat Park, and I occasionally talked about it here, but when people outside the area parked their cars outside the service area, walked in, and went shopping and eating. , I call this "Burk", but in the case of Taga, I will increase this parking space from 5 to 17.
Then, the toilets are always crowded by women, but we will increase this from 40 to 60. This way of thinking is applied to all other locations and Ashigara, and instead of just increasing the number of toilets, we aim to make toilets easier for women by listening to the opinions of women outside and inside the company. We also want men to have good clean toilets.
We have been promoting Plat Park so far, but there was a limit to the number of parking lots on the outside in the existing layout, and the number was inevitably small, but we strengthened this considerably and made it a regional center. This is our long-cherished desire, and we aim to be a regional center, not just for customers who drive on the road.
For example, Ashigara SA In-bound status quo in the I do not Stop only two, to 47 units. As for Ashigara SA Out-bound, I would like to do my best by making two units into 31 units. If that kind of thing touches the hearts of our customers, I think that many people will surely come and use it.
I think I can report what the result was when I actually tried it.
We have to carry out 5 large-scale improvements in 2010, and we must analyze the results properly, so I would like to make an opportunity to report it.
Since then, there are plans for large-scale improvements, and I think that there is a new SA / PA of Shin-Tomei Expressway ahead, so I will continue to think about the enhancement of SA / PA services. I am.


(Reporter)

Please tell us about the expectations and attention of the section that will be implemented in the free social experiment starting next month, and what kind of points do you think are affecting the roads that are not implemented such as Tomei.


(Chairman)

Since this is a social experiment, I think it is necessary to understand and analyze the effects of the experiment. I think that is more important than anything else.
As for the parts other than the social experiment section, there is a possibility that the traffic volume may be affected, so I would like to analyze this as well, but it is difficult to predict how much it will affect so far.


(Reporter)

If so, are they positive or negative?


(Chairman)

I think this is an increasing impact. For example, Kiseido or Iseido, I think that if there is more traffic coming in from there towards Nagoya, there will be problems such as traffic jams.
I think that each individual route has a different appearance, so it is necessary to analyze each one individually.
Fuji-Yoshida and Otsuki, heading for Lake Kawaguchi, this may also affect traffic.
So I think that there are various factors such as regionality, seasonality, etc., but I would like to analyze them properly and connect them later.


(Reporter)

Is the new traffic congestion point the most noticeable?


(Chairman)

I think that there is such a problem as an issue, but is that a problem? Can it be absorbed? There is a major highway, and it makes a lot of difference whether 10,000 units increase, 1,000 units or 5,000 units, so it's not clear if 10,000 places will suddenly reach 20,000 units. .
Rather, there is an element that increases short-distance users. That's the effect of that route alone. I wonder what that effect will be when it enters the network, and how far it can be absorbed in the current situation, but I would like to investigate without much prejudice.
At the end, you may not understand unless you try it.


(Moderator)

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