NEXCO CENTRAL (Central Nippon Expressway Company Limited)




March 19, 2010 Chairman Yano's regular press conference

Conference Summary

(Moderator)

Now it ’s time, so I ’ll start the regular press conference right now. Well, then, I'm looking forward to working with you.


(Chairman)

NEXCO CENTRAL Hironori Yano, Chairman and CEO

Hello everyone. Thank you. There are a total of 8 cases today, 5 of which are announced today. We will start with the current state of our business. Fee income decreased 14.0% year-on-year. High-speed is reduced by 13.8%, Isshu is reduced by 16.7%. Although it is a passing number, it increased by 5.7%. High speed increased by 4.9% and Isshu increased by 8.9%. The reason why the number of passing cars increased and toll revenue decreased was the same as before, and the decrease in revenue was due to a significant increase in the discount amount. This is the same reason for both high speed and Ichiyu. The ETC discount amount is 25,536 million yen, which is a 69.8% increase compared to 15,037 million yen in the previous year. The ETC discount rate is 44.1%. If there is no ETC discount, the fee income will be 57,913 million yen, up 9.9% year-on-year. We will explain the number of high-speed traffic by vehicle type, which is always reported. First of all, it is 107.8% for light vehicles, 102.4% for medium-sized vehicles, 106.5% for medium-sized vehicles, 117.4% for large-sized vehicles, 128.1% for oversized vehicles, and 104.9% in total. Compared to last year, it has risen, but since last year it was when the traffic volume fell, compared to February last year, 114.0% for light vehicles, 102.0% for medium vehicles, 89.3% for medium-sized vehicles, large vehicles 91.7%, oversized car 92.2%, total 100.3%. For mid-sized cars and above, the level is about 90% compared to the previous year. Next is the vehicle mileage. Compared to last year, light vehicles such as 113.5%, regular vehicles 109.6%, medium-sized vehicles 107.1%, large vehicles 113.0%, oversized vehicles 121.3%, total 110.5%. Compared to the year before last, minicars etc. were 121.0%, regular cars 111.6%, medium-sized cars 88.3%, large-sized cars 89.3%, oversized cars 92.3%, totaling 103.9%. This is also about 90% for medium-sized vehicles and above, which is similar to the traffic volume by vehicle type.

The situation of the next construction is the same as last year, so I will omit it.
Next, regarding the status of ETC, the average daily usage rate was 86.3%, and the same month last year was 79.2%, so this means an increase of about 9%. Taking the last week, 86.5% from February 12th to 18th, 86.0% from March 5th to 11th. I think it can be said that weekdays have fallen slightly and holidays are flat. The weather has been declining due to factors such as the weather, but we think it will be flat. Regarding the number of in-vehicle devices installed, about 30.08 million units, excluding re-setup, exceeded 30 million units. If you include re-setup, it will be 36.4 million.

Next is the situation in the service area, which is 112.5% of the previous year. The total for food and beverage and product sales is 106.5%. Of this, the food and beverage department accounted for 104.8%, and the product sales department accounted for 107.5%. Rest in and bath service departments are 92.0%. In the GS division, sales increased to 137.4% due to both the high unit price of 21 yen and the volume of 118.7%. In the advertising department, the amount is 206.0%, which is not large, but it will increase frequently. This concludes the February report of the current business situation.
Next, I will report the traffic conditions after the opening of the Ebina JCT-Ebina IC on the Ken-O Road O Expressway from the person in charge.

 


(Water TL)

Let's start with Traffic T as the traffic conditions after the opening of the Ebina JCT-Ebina IC on the Ken-o Expressway. We are summarizing the traffic conditions for 2 weeks after the opening of the 1.9 km extension section opened on February 27. The comparison before opening is compared with the week before opening. First, regarding traffic volume, the average daily traffic volume for two weeks is approximately 9,700 vehicles / day. Of these, about 9,200 on weekdays and about 10,800 on holidays. The breakdown is about 5,100 units / day from Tokyo and 4,600 units / day from Nagoya. In addition, out of approximately 9,700 vehicles / day, the use of one section from the adjacent Atsugi IC and Yokohama-Machida IC is approximately 3,400 vehicles / day, which is about 40% of the total.
With this opening, the number of ICs in Tomei has increased by one, but the traffic volume before opening the Atsugi IC was 79,200 vehicles / day, 71,300 vehicles / day after opening, a decrease of 7,900 vehicles. Similarly, the number of Yokohama-Machida ICs is 83,700 units / day before opening and 80,800 units / day after opening, a decrease of about 2,900 units.
As mentioned above, it's easy, but it's a two-week breaking news.


(Chairman)

Let's get into the topics. As we announced today, we are planning a bus tour with the theme of "Environment-friendly activities can be seen up close". It is planned to start for one year from April with the cooperation of four companies and organizations based in Chubu. Applications will be accepted from March 24th at "High Speed Weather". Each of these four companies / organizations has a deep interest in the natural environment and is actively engaged. In the case of our company, we would like to look at the Tokai-Hokuriku Expressway Hida Tunnel evacuation pit, ventilation equipment that considers the surrounding environment, solar power generation and wall greening of the 2nd ring of Nagoya. Then Tokai-Hokuriku Expressway highway oasis adjacent to the Kawashima PA of Aqua Totogifu (Gifu world freshwater fish Aquarium) and Toyota Shirakawa-Go Eco-Institute Nature guide, Centrair is a tour of the facilities that are friendly to the natural environment. Chubu Electric Power Co., Ltd. will take a look at "Bluebonnet," a local symbiotic facility that utilizes the green areas of thermal power plants. The charge for April implementation is 6,980 yen. We plan the business, and we will implement it with the cooperation of the four groups I mentioned. There are plans for April and May-June in the materials, but in April we plan to see Aqua Totogifu and Toyota Shirakawago Natural School, and our Hida tunnel evacuation pit and ventilation equipment. The plan for May-June is planned to be the construction site of Centrair, Bluebonnet and our Nagoya 2nd Ring. This is an environmental theme tour plan.

Another project announced today is a plan to release original new products such as the lover's sacred place "Sleeping Forest Mimizu". At present, there are six places in our jurisdiction that have been designated as sacred places for lovers. Therefore, we will sell "Sleeping Forest Mimizu" and "Signed Hand Towel" only at the lover's sacred place. This is a planned product by our female and young employees, and we have been planning it since last year, and this is the first one. I also hope that many will continue to appear in the future. 6 places are counted as 1 place because it is a combination of Lake Hamana SA and top and bottom. There are 2 locations on the Suwa Lake SA vertical line, 1 location on the Ariiso Sea SA Out-bound line, and 2 locations on the Sugitsu PA vertical line, for a total of 6 locations. Sales will start from March 19th.

We will continue to announce today, but we are announcing what will be the run as SA and PA are improving Oita. This time, the renewal of some of the Ashigara SA top and bottom lines and the renewal of PAs at seven locations will be included. The Ashigara PA In-bound line will open gradually on April 28th and the Out-bound line will gradually open from the 10th. The Ashigara SA vertical line is called "Ashigara Spring" "Ashigara Water and the Green Story", and Mt. Fuji and water are for sale here. Specific stores are also listed in the materials. In-bound If you use the line, famous stores such as "Okowa Yonehachi" and "Kakijiro" will be opened. Out-bound The line also has a famous "Donku" for mini croissants, and Japan's first dog cafe in the service area, "Hula dog café restaurant & goods". Recently, many people travel with their pets, so I hope it will flourish. PAs that will be reopened from March to April are also listed. It starts from Kohoku PA and extends to Kanda PA, but "Hanamaru Udon" of Byobuseyama PA is a famous Sanuki Udon shop, which is the first store to open at Expressway. You will be able to open a store in our jurisdiction before NEXCO West Japan. Then, as a distinctive feature, Hokuriku Expressway Kanda PA In-bound "Genge" is a store made in tie-up with local Nagahama farmers and youth conference halls. It is a plan that mixes both Standard and characteristic store openings.
Our aim is to try to shift the focus from the transit service area to the stay service area. This is something that customers decide, but our store planning is based on that. In the future, after the Ashigara SA, large-scale renovations of the Meishin Taga SA Out-bound line and the Higashi-Meihan Gozai SA upper and lower lines will begin, but these are scheduled to open in 2010.

As for today's announcement, the Expressway lunch "Hayaben" will be renewed in the spring menu. We will report this to everyone each time, we have been making new menus for spring, summer, autumn and winter four times a year for 5 years, but this spring menu is April 3rd Renewal from. Reservations will start from March 27th. We have 21 kinds of bento that are full of seasons and local colors. The local landlords, Mr. Itamae, and Mr. Itamae worked very hard on their efforts, and thanks to them, they have been well-received. We would like to create products that do not disappoint customers' expectations.

There is one more thing to announce. It means Large the points of gasoline discount with a premium driver's card. We announced that we have introduced such a service at 7 places before, but we will add 7 more places and 14 places in total, from April 1st. This premium Drivers' and I will use the card with the credit, is what high-octane, regular, light oil that discount up to 3 yen per liter. The contents of the service are the same as before. If you pay with credit, you will get a discount of 3 yen and points. 1 point for every 200 yen. Then, if you show your card and pay in cash, you get the same 2 yen discount as before. For those who join on the spot, we also offer a cash discount of 2 yen. The new GS that will start the service is as described on the page on the back, there are 2 locations in Tomei, 4 locations in Chuo Expressway Expressway and 1 location in Ise Expressway.

Lastly, I would like to report on the examples of environmentally friendly efforts that I have reported every time. Our company has been accumulating its technologies for ecological conservation and local seedling cultivation, and we are going to promote this even for areas other than Expressway. The council was formed in May of last year, and you are proceeding with planning while consulting various things at a council that is also a member of the local group, the city, or the partnership office of the Ministry of the Environment, The four items (of the material) are the first to be introduced today. On March 13th and 14th, 80 members and other members participated in the planting site of Toda River Green Space and Nagoya and Higashiyama Forest in Nakagawa Ward, and conducted a field survey of plants and animals. After confirming the habitat of various wild animals and examining the soil, we found that soil improvement was necessary for clay soil. COP10 will be held in Nagoya this October, but as a partnership project, we plan to plant regional seedlings in the Todagawa Ryokuchi, Nagoya and Higashiyama Forest. We are currently preparing the seeds by collecting seeds and growing the seedlings at the NEXCO3 company's greening technology center in Shiga Prefecture, and planting about 1,000 seedlings in the entire plan.

 


(Moderator)

So I'd like to take your questions.


(Reporter)

Please tell us how much the total cost of NEXCO Central Japan will be for the renewal of the service area and parking area.


(Chairman)

I'll do a little research and report it later.


(Reporter)

This means that the service area will be converted to a stay-type service area, but this time Ashigara means that the renewal is complete, or will it be a form of adding a shopping center etc. to make the stay a little longer?


(Chairman)

Out-bound The line will be renovated. Only a part of the whole I have explained today. In-bound Also do the wire. There will be 5 large-scale renovations of SA. Top and bottom of Ashigara, top and bottom of Goshosho, Taga of Meishin This is Out-bound only. There will be a total of 5 locations, all of which will be completed by the end of 2010, but we are planning to make a major renovation and renovate both inside and outside. These five locations have been decided as a plan for the time being.


(Reporter)

Ashigara Out-bound of the dog cafes Expressway because the first store openings, including the other NEXCO Expressway you sure you want that the first time?


(Chairman)

That's right. There are dog runs everywhere, but the dog cafe is the first place where both the owner and the dog can eat together.


(Reporter)

Is it just a dog?


(Chairman)

I don't think cats will run around so much, so I think it's okay, but I'll investigate later to explain if it would be okay if I put them in a basket.


(Reporter)

It is Mimizu in the sleeping forest, but this was introduced as a planned product of the young group, but this is what youth is pointing to, and this is the first time this time, but what will you do in the future? Please tell us as far as you can see if you are planning a product.


(Chairman)

Age is not limited, but people in their 20s and 30s cooperate. There are no specific plans for future product development, but we are planning to have a wide range of consideration. Not only products, but whether the whole appearance of the service area is good, whether the whole service that invites customers and hospitality is this, I have you consider including such software aspects. . Also, do you have any new ideas for the new Shin-Tomei Expressway service area under construction or are there any new ideas for the next major renovation? It has received. In addition, we will announce if it is decided each time.


(Reporter)

Based on the ideas and opinions of young employees in their thirties, is it possible to think of cases such as the opening of a new store with Ashigara, or something like that?


(Chairman)

I hope you will be born. This time, this is only Mimizu, but I don't think I have entered the new store announced today. I would like you to participate in what we are going to do.


(Reporter)

Expressway is the number of passengers passing through in February, but it is said that the large size is returning considerably compared to a year ago.


(Chairman)

Looking at only large vehicles, December's 103.0%, January's 107.2%, and this month's 117.4% were higher than the previous year. Oversized vehicles account for 108.6% in December, 115.6% in January, and 128.1% in February. As you know, the Lehman shock was in September, and this effect had to come out, but I have to look at the data a little more, but maybe from November. I think the impact has started to appear in October, but it has already been clearly impacted in December, so I think it was the actual situation that the number of traffic itself had fallen. From the perspective of our logistics, I feel that it has not improved so much. Compared to the situation a year ago, there are improvements as I reported today, but I feel that it is still a long way to go.


(Reporter)

Although it has nothing to do with the materials released today, it is said that Daini Keihan Road will be opened tomorrow. Will there be any changes in the usage of Expressway under the jurisdiction of Central Japan in connection with this?


(Chairman)

I think we have to look at this a bit, but I think it will have some effects. It's hard to say at this point what kind of impact it will have, but I think we can announce it next month if there are major changes.


(Reporter)

Regarding the government's Expressway maintenance and toll measures, it seems that it is conspicuous that there are some cases where it is necessary to review the long-term maintenance here and there is no need to reconsider it, and there are some differences in the Expressway measures. Do you have any idea, for example, that you would like to make a common request, make some suggestions, or take action from the NEXCO side regarding future Expressway tolls and maintenance measures at the NEXCO Group? Also, if you have any findings regarding the recent governmental Expressway measures.


(Chairman)

I don't particularly think about taking action at this stage. Various themes have been taken up and appeared in articles in newspapers, and I am one of the readers, I wonder what it means, but after all a concrete idea came out and opinions were given. I think it will be demanded, but at that time I would like to make an opinion. I don't know the content and time, so I can't say anything at the moment.


(Chairman)

The investment amount announced today (of Ashigara) is 2.2 billion.
I wonder what the store policy (of the dog cafe) is. For those of us who are in the service area, I think that the largest dog can be accommodated, so it may be nice to have a small dog, but this is due to the store's own policy. I'll think about it, so I'll do some research and contact you later.


(Moderator)

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