March 18, 2009 Chairman Yano's regular press conference

(Moderator)

Then we will start a regular conference.

(Chairman)

Hello everyone.
There are many topics today. I would like to explain as briefly as possible.
Now, let's start with an overview of the business for February.
Fee income in February was -12.7% year-on-year. The breakdown is -12.8% for highways and -12.3% for general pay, which are almost the same trends. Expressway tolls due to the "emergency comprehensive measures to realize peace of mind" that has been implemented since last fall, and the spread of ETC is progressing, so the discount amount will be reduced accordingly. We believe that sales are declining due to the impact of the increase and recession.
The number of traffic is minus 0.6% compared to the same month of the previous year. The breakdown is minus 0.9% for highways and plus 1.0% for general charges. There is a gap between income and the number of people passing by, but the cause is as I mentioned earlier.
The discount amount of ETC this month is 15 billion yen, which is an increase of 8.2% compared to the same month of the previous year. If we calculate that there is no ETC discount, the toll revenue is 52.7 billion yen, which is 7.6% less than the same month of the previous year even if there is no discount. The ETC discount rate is 28.5%.

Situation of the construction, but is as described herein, later, but I will explain again, Tokai-Kanjo Expressway from Mino Seki JCT of Seki-Hiromi 2.9km until the IC is now to be opened on April 18.

Next, regarding the usage status of ETC, comparing the latest March 6th to 12th with one month ago, as shown in the material, the usage rate was almost flat at 79.0% to 79.4%, slightly increased. is. The cumulative number of on-board units installed is approximately 22.96 million.

Regarding the status of SA, this month it is 94.5% compared to the previous year. The cumulative total for the year has managed to maintain a little over 100%, but February was a bit difficult. Last year was a leap year, so we didn't have enough days, but sales were 98.5% in the food and beverage department and 105.5% in the product sales department, and the total of both was 102.8%. The service department accounted for 92.6% and the GS department accounted for 70.7%, showing a slight recovery, but the situation is still down 30%. The advertising sector is 133.3%.

A supplementary explanation will be given regarding the number of vehicles passing at the beginning. We provide information on traffic volume by vehicle type every month, but I would like to tell you what is happening on average per day. Light vehicles increased by nearly 10% to 109.5%. Ordinary cars are 103.2%, which is good so far, but medium-sized cars are 86.8%, large cars are 80.9%, and oversized cars are 74.6%, a decrease of 25%, and the total is slightly over 99%. .. In the case of total monthly traffic, last year was 29 days and this year is 28 days, so the numbers will decrease little by little when compared. Therefore, we use daily average numbers.

The above is the current state of the business.

Next is the topic. First, I would like to explain again about the reduction of Expressway We made a press release on the 13th, and we have already explained the contents, but we are preparing with the contents of the materials attached here. I will omit the explanation of the details, but the discount measures will be implemented sequentially from the 28th of this month. We would like to estimate the impact of this discount and take measures as firmly as possible, including the problem of traffic congestion. For example, we are planning to put a lot of effort into preventing congestion and accidents compared to last year's Golden Week. For example, the installation of LED sign cars to prevent speed reduction is 1.6 times, and the provision of traffic jam information by LED sign cars and LED display boards and the implementation of traffic jam end warning are also 1.6 times. Then I was wondering if the rest facilities would be quite crowded, for example, installing temporary toilets in the rest facilities, which is three times as much as Golden Week. I would like to arrange the parking lot organizers of the rest facility thickly, and I am thinking of taking measures such as extending the business hours of the rest facility stores by 1.5 times.
In addition, it is expected to be used a lot on Saturdays and Sundays, so I would like to promote a campaign in collaboration with related organizations for tourism. This year is the opening of Zenkoji Temple. With that in mind, we are planning various events, such as selling accommodation products in the surrounding area. Since Tomei is 40th anniversary, we are planning a commemorative event. We have concluded comprehensive agreements with each prefecture and are trying to promote tourism measures together in addition to measures in the event of a disaster. Our company spans 11 prefectures in 1 metropolitan area, and so far we have comprehensive agreements with 6 prefectures. Shizuoka Prefecture will be added to it next week, and it is planned to be in other prefectures soon, so I think that we will proceed sequentially, but we are not doing it alone, but local governments, tourism associations, related travel agencies It means that we will do it while cooperating with such as.
I also think that information services are very important. There is a WEB site called "High-speed weather" that responds to inquiries from customers, but we would like to improve the charge search system for this site and gradually update information related to traffic congestion. The charge search system can be used for charges from March 24th to 28th. In addition, we have extended the reception hours of the SA concierge, and there is a free-call telephone counter called the Customer Center, but we are energetically enhancing the system. With this kind of thing, I would like to do everything possible. We would like to thank all of you for your cooperation in various aspects as the new measures begin.

Next is the maintenance effect of the Tokai-Hokuriku Expwy It is a summary of how it has been since it opened on July 5th last year, and the points are as described in the material, but the average is about 7,000 units. Please refer to the attached materials regarding the status of various changes. Due to the traffic volume of each road network and seasonal fluctuations, the traffic volume drops a little in winter. For example, as you can see on page 10, the number of skiers in the Oku Mino area is increasing. This is because the number of skiers, especially from the Hokuriku region, is increasing. It is known that the number of ski resorts in Gifu prefecture is increasing compared to last year, even though the number of ski resorts in Nagano prefecture is flat. Also, it's getting warmer, and the school is on spring break, Golden Week, and the tourist season is about to begin, so I'd like to make various preparations for such things. There are various materials such as changes in traffic flow, round-trip traffic in the Hida area, round-trip traffic in the Hokuriku area, and conversion from general roads, so please refer to them. Today, this is the material released together with the Regional Development Bureau.

Then, it just was a little talk, Tokai-Kanjo Expressway from Mino Seki JCT of Sekihiromi IC between, 2.9km is now to be opened at April 18, 18. Prior to that, Sekihiromi IC from 15:00, so we would be grateful if you could do it. This content was announced by the Chubu Regional Development Bureau and the Nagoya Regional Head Office Tokai-Kanjo Expressway next 2.9km is opened, about 48% of the total will be opened. In the future, there remains a big issue of how to extend to the west, but the situation is progressing one by one.

In addition, we will present mileage points to commemorate the opening of the Tokai Kanjo Expressway. This Regional Head Office but I will talk about it.
As I mentioned earlier, it will open on April 18th, but from that time until June 30th, 100 mileage points will be given to 1,000 people, which is a lottery. 100 points is equivalent to 800 yen.

Next, this is also announced today, but the Tomei Ogasa PA will be renewed and reopened. Expressway called "Fujinoya", but I think that it is good for people who like soba, because the all-you-can-eat soba set is 880 yen because it mainly focuses on 100% soba. I will. The store is scheduled to open on April 1st.

Next is the repair plan based on the emergency safety inspection. I reported at the press conference in January, and at that time I was asked "What are your plans for the future?" I was able to sort out that, so I would like to explain it all together today.
The emergency safety inspection was completed by November last year. We are steadily proceeding with necessary repairs that are highly urgent. For items that are particularly urgent, we repaired them during fiscal 2008, and after that we investigated 1,121 points that needed repair, so we are planning to do this one by one. The details will be explained by Mr. Minemura, the director in charge.

 

(Minemura Conservation and Service Manager)

Then, I will explain based on the materials distributed. Please see the page with the photo on the back.
As the chairman said earlier, there are 1,121 civil engineering structure damage countermeasures. This is roughly divided into two. There were 235 locations where it was determined that damage would be seen throughout the structure, not just the damaged area on the right. Regarding this, as shown in the photo on the right, we are planning to put a fiber sheet on the entire surface to prevent concrete fragments from falling and to take measures to increase the durability of the entire structure. .. There are 886 other places. This is divided into two. There are 140 first aid measures on the right net. For the time being, there are crossing structures, railroads, roads, etc. underneath, so for the time being, we will put up a net and take measures in places where we can not immediately move to full-scale measures. The other 746 locations were where we determined that the damage would be limited to that particular area. Therefore, we have just decided that the structure will be preserved by taking the partial measures, but it is a judgment at this stage. Of these, 583 are generally proud that this measure will be okay, but I would like to see the situation of the remaining 163 over the years. Therefore, the remaining 163 locations and 140 locations that have undergone emergency repairs via the Internet, a total of 303 locations, are planning to take measures one by one while observing the situation after a few years.
Please see the table page for such classification. At the bottom of the table, we will complete this year at 111 locations, which is about 10% of the total. If we add up to 668 locations next year, about 70% will be completed here. And we are planning to complete all of them in 2010, and we would like to deal with the 303 places we left earlier. In addition, although it is titled "1st bullet", this is for the place where the damage is relatively advanced in the regular inspection that we usually carry out, and there were about 7,200 places. The first step was to inspect the 7,200 locations. They have already been inspected, but we are still inspecting about 28,700 remaining relatively undamaged areas. We plan to complete all of this inspection by the end of next year. that's all.

 

(Chairman)

Next, I will report on the status of speed control measures for ETC lanes. It's been three months since November 25th last year, and thanks to you, it's been going well, and we're seeing good results in various aspects such as accidents and speed. Looking at the occurrence of traffic accidents, it has decreased by 55% compared to before the countermeasures were implemented. In terms of speed change, the average speed has decreased by about 6 km / h, and the proportion of vehicles that are significantly overspeeded has been reduced by about 71% overall. So far, there has been no congestion due to this measure. We asked our customers to take a questionnaire, and as you can see in the material, they have a positive overall view. We believe that the situation has begun to stabilize within the jurisdiction of NEXCO Central Japan, and we will report if a new situation arises in the future, but we would like to end the monthly reports so far. thinking about.

Next, we decided to add new catalog sales of alcoholic beverages at five PAs on Chuo Expressway Starting from the 19th, there are places such as Hatsukari, Shakado, Sakaigawa, and above and below Yatsugatake. It has already been implemented in Dangozaka on the Chuo Expressway Hokuriku Expressway, but it is a progress report that this project is gradually expanding.

Next is the SA / PA Spring Festival of "Doraemon". It's very popular with small children, isn't it? We have already announced on March 6th, but we are planning to carry out a stamp rally and a gift campaign from 19th. This is the pamphlet you handed out.

This is the last topic. Hamanako SA has been certified as a "lover's sanctuary", and the ceremony will be held on April 5th. Regional Head Office which hosts the event, but I talked about it today.

That is all for my opening explanation.

 

(Moderator)

If you have any questions, thank you.

(Reporter)

I would like to ask about the current state of the business. You mentioned that there was also the impact of the recession, but please analyze the cause again for the fact that large vehicles accounted for 80.9% and oversized vehicles accounted for 74.6%. Then, could you tell us how the new ETC discount starting on the 28th will change the logistics in the future?

(Chairman)

We believe that the decrease in traffic is clearly the result of the recession. After all logistics is down. The effect is in the numbers. I think that rate discounts are an effective economic measure that supports such a situation to some extent, but after all the economic downturn, that is, the stagnation and decline of logistics, cannot be supported by rate discounts alone. Of course, gasoline prices have settled down here, so I think that's also supporting them, but I think the impact of the economy is still significant. On the other hand, it can be considered that the positive effects of ordinary cars and light cars are clearly affected by the past rate measures. From now on, when the economy is sluggish and the employment problem becomes more serious, going out on Saturdays and Sundays may have a slight impact, let's say that the purse string becomes stiff, and that kind of impact may come out. No, so I would like to see the future trends.

(Reporter)

From March 28th, the maximum price for regular cars and below will be 1,000 yen on holidays, and the discount for trucks will be 30% or more on weekdays. How much is expected to increase the number of passengers in response to these? Please let me know if you have any prospects.

(Chairman)

I've never made such a drastic price cut, so to be honest, I can't say that I'm going to get angry with past examples. Therefore, it is hard to guess, but we expect a wide range of traffic volume increase of at least 5% and at most 15%. However, as I said earlier, economic trends are the key, so the positive and negative aspects will offset each other, so in a sense you will not know what the number will be. However, as I explained earlier in the measures against traffic congestion, we are starting preparations on the assumption that it will increase and become crowded. After that, I would like to take measures by watching the transition.

(Reporter)

I would like to ask you two points about speed control measures for ETC lanes. It is said that the average speed has decreased by about 6 km / h, but how many kilometers did it actually decrease? And how many kilometers does "significant overspeed" mean?

(Chairman)

The next question is 40 km / h. From the person in charge, the specific number of kilograms reduced from how many kilograms.

(Yokota ETC Planning Team Leader)

The average of all cars is 36.4 kg before the measures and 30.2 kg now. The result is a 6.2 kilogram drop.

(Reporter)

I would like to ask about an emergency safety inspection. With the plan in place, what is the scale of the project cost expected for repairs in the future?

(Chairman)

It is about 6.5 billion yen in the three years from 2008 to 2010. I'm hungry like that.

(Reporter)

How is the outlook for 2011 and beyond?

(Chairman)

From 2011 onward, it will be sequential, but of course I would like to make a plan while reviewing it every year, and at the moment I have not made an estimate of the amount. The more you use the road, the more it gets older day by day. However, it can be made to last longer by proper treatment. From that point of view, we have to investigate regularly every five years and take the next step, so we will continue to do so.

(Reporter)

Regarding emergency safety inspections, what kind of damage can be seen in specific areas where progress is being made?

(Chairman)

That point is from an expert.

(Manager Minemura)

This inspection is triggered by the fall of concrete pieces, so we emphasize that point. For example, if concrete cracks and water enters from there, the reinforcing bars inside will rust. As the rust progresses, the volume of the reinforcing bar increases, and the outer concrete is pushed out and falls. Looking up at this state from below, you can see that the rusted reinforcing bars are exposed. In addition, concrete is "neutralized" by removing the original alkaline component by carbon dioxide just by touching the air. As a result, the reinforcing bars, which are normally protected by alkaline components, oxidize and rust, resulting in the same condition as before. These two are typical examples.

(Reporter)

For example, in the table of the material, there are 4 bridges as a full-scale measure for this year's bridges, but what exactly is it?

(Manager Minemura)

I don't have a specific bridge name right now, so I'll let you know later.

(Reporter)

Is the figure of 5% to 15% that you mentioned in the increase in traffic volume with the discount from the 28th compared to the usual year?

(Chairman)

Think of it as a comparison before and after implementing the measures.

(Reporter)

You mentioned earlier that you are studying tourism measures with local governments in connection with the discount from the 28th. Is there any concrete movement?

(Chairman)

Zenkoji Temple, which I mentioned earlier as an example, is about to enter the tourist season, so we are enthusiastically proceeding with negotiations with each prefecture and tourism association. We will introduce it when the plan is materialized. We have provided more than 20 times as a "planning discount", such as excursions to Mt. Fuji, the Hokuriku region, and the Yamanashi / Nagano region. Based on that, everyone in each prefecture is also interested, so I think there will be a reaction.

(Reporter)

How much do you expect SA sales to increase as traffic volume increases by 5% to 15% with a discount from the 28th?

(Chairman)

We are currently planning a business plan for next year, and a new medium-term plan will be completed soon, so we plan to announce it in early April. Certainly, even if traffic increases, sales will not increase so much if SA is too crowded. This is a difficult place, and I hope that the parking lot and toilet environment will be improved so that customers can flow well. After all, even if there is a lot of traffic on the main line, sales will not increase unless you stop by, and it is necessary to increase the attractiveness of SA in order to stop by, so we are taking various measures for that. , I think it will be effective if they are combined. Basically, I'm thinking that SA sales should increase, but it's hard to make a plan to increase it by 10% compared to this year, and it's about to increase a little. Depending on the SA, we will proceed with major remodeling plans, so I think that it will be effective again if they are materialized. I don't think that the rate policy will immediately increase sales significantly.

(Reporter)

It was said that it will increase by about 5% to 15%, but what percentage will it increase during regular Golden Week?

(Chairman)

It would be nice if there was something that could show the growth during the regular Saturdays and Sundays of last year and Golden Week, so please let us know later along with the previous case.
Although traffic volume has increased by 5% to 15%, we are trying to take measures such as 1.5 times for some things compared to last year's Golden Week. I am prepared to wait with that kind of system.

(Reporter)

Tokai-Hokuriku Expressway, I think that the evaluation that the traffic volume has increased considerably from the initial forecast and that the new discount starting this time will also increase the usage considerably, please tell us about the outlook. ..

(Chairman)

As of September last year, the average daily number was 9,000. On Saturdays and Sundays, the number exceeded 10,000, and on some days it reached 20,000. After that, the usage decreased as the cold season came, and the average after opening was 7,000 units, but it will develop in a good direction with the addition of price measures and positive factors of gasoline price in the warm season. I'm expecting it. The initial planned traffic volume was about 3,000 vehicles a day in the first year and 2008, so I think that the current 7,000 vehicles will nearly triple the traffic volume. Next year, when we have settled down, we are forecasting about 5,000 vehicles, so I think we can expect considerably more traffic than that. Thanks to you, we were able to complete a new highway, and this increase in traffic is also working positively for the company as a whole. After all, the roads should be connected to one. The two are to network. I feel that doing so will have a really big effect. As you can see in the material, the traffic volume on the Hokuriku Expressway has decreased a little due to the increase in the Tokai-Hokuriku Expressway Even so, the fact that the overall traffic volume has increased means that Expressway is progressing, and the same is Shin-Meishin Expressway although about 30,000 vehicles are used daily. , About 15,000 units have been converted from Meishin, and the remaining 15,000 units are a net increase. I think that it is proof that if roads are connected to form lines and then networked to form a surface, it will be beneficial in various aspects such as daily life and industry.

(Moderator)

If you have no other questions, this is the end of the 41st regular press conference.
I will inform you about the two questions I mentioned earlier. (Details of the answer later [PDF])
Thank you very much for your busy schedule today.

(Chairman)

Thank you very much.