December 20, 2006 Chairman Yano's regular press conference

Hello everyone.
Thank you for visiting us at the end of the year.
In addition to the business overview that I always report today, there are some topics, so I would like to explain them all together and then ask questions.

First of all, I would like to give you an overview of the business. In November, the fee income was minus 0.3% overall. The high speed is minus 0.1%, and the one is minus 2.9%. The number of passing cars is 4.1%. High speed is plus 4.3% and Ichiyu is plus 3.0%. The increase in traffic volume and the decrease in toll income are due to the Large of time discounts due to the spread of ETC.

Regarding the construction situation, Chubu-OdanExpwy opened from Masuho to the Southern Alps last Saturday. It is in operation for 6 km.
Although it is a future opening plan, I have not written it in the document, but it is about 28.8 gods, about 18.8 km from Kinki Expressway Kameyama Higashi JCT ~ Koka-Tsuchiyama.
Under the current agreement, it is scheduled to open at the end of 2008, but as a result of reviewing the local construction process, we will move forward one year ahead of next year, and next year, we will proceed with the project with the completion target in the spring of 2008. Since this is also connected to western Japan, I hear that we are proceeding with the completion of Koka-Tsuchiyama from Western Japan to Otsu JCT at the same time. Therefore, from Kameyama East IC to Otsu JCT all at once.

Returning to the materials, it is the contract rate of successful construction contracts for the main types of work. In November, it was 76.42%. The cumulative total for the year was 108.81.93%. Actually, the data for the last month had a total of 79 cases up to October, but due to a calculation error, the correct number was 96.

Although it is the situation of ETC, the daily average utilization rate is plus 1.3%. It is 68.3%, a little higher than one month ago. The number of setups is 13.22 million, but including re-setup, it is 14.97 million. I also heard that the number of units exceeded 15 million in December.
Regarding the situation of SA, it is 105.1% compared to the previous year, and the cumulative total is 104.8%. In general, each department exceeded the same month last year, with 104.7% in the food and beverage department, 106.6% in the product sales department, 103.0% in the service department, and 102.8% in GS.

The above is a report on the business overview.

Next, I would like to report that I have obtained Triple A with the preliminary rating for long-term individual bonds. It is as per the materials at hand, and was obtained from the Rating Investment Information Center R&I. Eligible bonds are funds used for road construction and are bonds that will be underwritten by JHF when road assets belong to JHF.
Regarding corporate bonds, we have budgeted 25 billion yen as a business plan for 2006, but the details are from now on, and I will report again as soon as the contents are decided.

Next, although there are no materials available, I would like to talk about the card business, which has been a hot topic before. We would like to issue a membership card in February next year, and we are now in the final stages. The partner company is UFJ NICOS Co., Ltd. This is a credit card company. The other is BitWallet Co., Ltd., which is a provider of electronic money "Eddie". However, we have not yet finalized the issue of the issue. We plan to announce the joint announcement of the three companies in January, so I would like to inform you later.

Next, we will introduce a CS evaluation system to our service areas. We would like to introduce a CS evaluation system to our subsidiary Central Nippon Exis Company Limited to improve the service level of each SA store. We will be conducting various investigations from now on, and we will set up a CS evaluation committee that includes third parties, and will conduct individual CS evaluations. We are considering announcing excellent stores on our website, etc. Regarding the external members of the CS Evaluation Committee, please refer to the documents on hand.

Next is the sale of the Hida tunnel penetration memorial product. The Hida tunnel will penetrate on January 13th, when the new year starts. To commemorate that, we will release the original product "Inviting Sarubobo" from the day after the penetration ceremony. It is a lucky doll that Hida's popular "Sarubobo" holds an amulet bag containing a penetrating stone, which is an amulet for passing the exam. I have a sample, so I hope you can see it. I hope it can be used as an amulet for examinations and easy delivery.

Next, I would like to report that I filed one lawsuit for payment of tolls to unauthorized persons.
This person was late in payment of about 3.5 million yen including toll fee and surcharge, and I urged him several times, but he filed a lawsuit to the Yokohama District Court because he could not speak. This person was arrested and fined in May of this year. I urged him many times, but because there was no reaction, I decided that it would not change even if I continued any arbitrary negotiations on payment, so I filed a suit.

Then, finally, from January 2nd to 4th, we are planning measures to eliminate traffic congestion on the Tomei Expressway In-bound line. The content has already been announced, but we would like to ask for your cooperation in order to eliminate the traffic jam on New Year, and I would like to explain again.
I made this plan at our Yokohama Regional Head Office, and today the president of the Regional Head Office, Yoshikawa, is here, so I will explain it.

 

(Moderator)

Yoshikawa, the Yokohama Regional Head Office president, is a doctor of engineering and specializes in such traffic analysis.

 

(Regional Head Office length)

I am Yoshikawa, the president of Yokohama Regional Head Office. Let me explain.
During the New Year's return home U-turn, traffic jams occur every year, especially in the Yamato tunnel near the Yokohama-Machida IC. This year, we forecast a traffic jam of 30 kilometers on the 2nd and 25 kilometers on the 3rd. Therefore, as traffic demand management, TDM, we have a plan to manage the traffic demand by offering a limited early morning discount for New Year from January 2 to 4 for the Tomei In-bound. It was
Congestion is that the victim and the perpetrator are the same, and if the number of victims decreases, the number of perpetrators decreases. The point is that if the user manages to think that he/she does not want to be a victim, he/she will not be a perpetrator.
I will tell you the contents. This (while showing the panel) shows the traffic situation last year. The blue line is the traffic volume that flowed in one hour. Congestion has started at 10 o'clock. The red line shows the estimated traffic volume assuming that there is no congestion and traffic flows freely. This red line is the so-called traffic demand. It means that such traffic would have flowed if there was no congestion.
Looking at these data for the Yamato Tunnel, the traffic volume when traffic congestion occurs is about 4,869 per hour. Comparing this black line, it is about 350 more at 10 o'clock.
Once a traffic jam occurs, the traffic volume to be handled will decrease by about 200 vehicles per lane. Since there are 3 lanes, traffic of 600 cars will drop.
Generally, it is easy to think that the maximum traffic volume is a line of cars, but the maximum traffic volume is when the traffic is smooth just before the traffic jam occurs. Generally speaking, it is 4,869 units. Once a traffic jam occurs, it will drop to 4,200-4,400 vehicles. The starting point of this TDM is how to reduce the traffic volume so as not to cause this congestion.
The amount of traffic that exceeds the ability to handle is only about 600 vehicles, but this causes congestion until about 11:00 pm. In order to manage to move this red part forward, that is, to move early, this time, from 6 o'clock in the morning, for cars entering from Shizuoka IC to Atsugi IC and leaving from Yokohama-Machida IC to Tokyo IC If you can enter or leave by 9am, you will get a 50% discount only for ETC cars.
When it comes to Shizuoka, 75% of the cars passing through the Yamato Tunnel in front of the Yokohama-Machida IC are in high speed between Shizuoka and Atsugi.
And one more. There are some places where there are likely to be bottlenecks on the way. There is also a Matsuoka bus stop near Fuji IC and Numazu IC. Considering that there will be no traffic congestion, we decided to give discounts to cars entering between Shizuoka and Atsugi and leaving between Yokohama-Machida and Tokyo.
Anyway, with the help of everyone, I would like the general public to be familiar with it and take such actions.
that's all.

 

(Moderator)

If you have any questions, thank you.

 

(Reporter)

There was a story about the second famous god earlier, but the fact that the Kameyama east to Koka-Tsuchiyama is about 1 year earlier, I would like to tell you specifically about the reason why it was earlier, and 1 section and the other section of the second famous god Please tell us what is the outlook for the opening of Daito Tomei?

 

(Chairman)

As a reason for the side of Central Japan, it took some time to acquire some land at Kameyama Higashi JCT, but as a result of the local people working together, acquisition proceeded earlier than planned As a result, a situation was created in which the work could be started all at once, which made it possible to accelerate the completion time. I think Western Japan also had its own problems. Including site issues. I also managed to get the prospect out of it, so I decided to do this all at once.
Other regions, but for the time being, there is no change. As I have announced so far.

 

(Reporter)

It means that the Hida tunnel will be penetrated next month, but I would like to reiterate that impression and what is expected of this "Sarubobo". Regarding TDM, I would like to ask if there is an idea that if this initiative is successful, it will be further expanded.

 

(Chairman)

The fact that the Hida tunnel could be penetrated is truly invaluable. It took me a lot of trouble on the way, and it took nearly four years longer than originally planned, but that was a good learning experience for us, and we were able to overcome the difficulties very well. I think Speaking of the feeling of penetration, there is no longer a long road tunnel overlooking the Japanese tunnel. It is the second longest road tunnel in Japan and the seventh longest in the world road tunnel, and it has a truly historical significance. Even with the technology of TBM used there, it is difficult to cover 1,000 meters of soil. It is called construction under adverse conditions, and in a sense, I think it was a historic experience for our company. I would like to express my sincere gratitude for this penetration and would like to thank all those who cooperated. As for amulets, the tunnel penetration was really achieved with the support of many people, including local people. It took a long time for the tunnel to penetrate, so I think that the stones collected there will help protect the examinees from praying for success and prayers for future mothers to have a safe delivery. Since it is a specialty of Hida, I would like it to become a symbol of the work we are doing together with the community. This is the first time we are implementing measures for traffic congestion during the New Year. If this goes well, I would definitely like to continue next year, and if there is a better way, I would like to adopt it. We would like to publicize ourselves in the service area and in various places, and ask the drivers to cooperate with us, but we cannot say that it is better than the press, so it means news. It's too late, but I would like to ask many people to know it with the cooperation of everyone. Since it is to get the cooperation of our customers, we made a discount, but the original purpose is to eliminate traffic congestion. Although it may not be resolved, I would like to work towards reducing traffic congestion.

 

(Reporter)

Although it is not the relationship announced today, the interim financial results have not been announced yet. What is the reason behind this delay?

 

(Chairman)

We may not have contacted you yet, but we plan to announce the interim results on the 22nd. There are various prior adjustments with the accounting audit corporation and others, and it has finally been completed, and we are ready to make an announcement soon.

 

(Reporter)

There may be an explanation on the day of the announcement, but where did you find it difficult?

 

(Chairman)

I don't think it was particularly difficult to coordinate with audit firms.
In other words, it is the first full-scale settlement of accounts on a consolidated basis, and the fact is that we have been carefully and cautiously because of the full-scale settlement of accounts in the new securities report. .. The more you get used to it, the faster it may become. I would like to make such an effort, and I would like the accounting department to do so, but it took a little time because I worked hard with the intention of announcing the first financial statement in a true sense. I think there is something that happened.

 

(Moderator)

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

 

(Chairman)

Thank you very much.