March 26, 2008 Chairman Yano Regular Press Conference

(Moderator)

Thank you for gathering during the end of the year.
Then we will start a regular conference.

(Chairman)

Hello everyone.
Today, I am sorry that there are many cases. There are lots of proposals from various departments within the company that we would like to take this opportunity to introduce to you. Not only the announcements for the first time today, but there are many other issues, but I hope you can listen to them.

First, an overview of the business. Regarding road conditions, toll revenue in February was minus 4.2% compared to the same month last year. The breakdown is -5.3% for high speed and + 7.6% for general pay. The high speed is due to the heavy snowfall in February, and the impact of this and the steady spread of ETC. General tolls are due to the opening of the Ken-O Road.
The number of traffic is also 3.4%. High speed is minus 3.7% and general pay is minus 2.1%.
The ETC discount amount is 14 billion yen, 24.5% discount compared to 57.2 billion fee income without ETC discount.

Construction situation. Shin-Meishin Expressway you know, Shinmeijin was opened one month ago, but I would like to report on the traffic situation after that from the Nagoya Regional Head Office president later.
The construction of the main body of the Hida Tunnel was completed at the end of the year, and the paving work inside the tunnel was also completed in mid-March, although the question was always raised on the Tokai-Hokuriku Expressway. I think it can be said that it is proceeding smoothly. I saw it about 10 days ago after a long time, but I thought so too.
At present, what kind of construction is being done is installing emergency equipment and lighting equipment in the tunnel. From April, we will proceed with testing on a single unit starting with the equipment that has already been installed, and plan to conduct comprehensive tests from around May. With regard to sections other than the Hida Tunnel, pavement work and facility construction are almost complete, and a comprehensive test of the facility is being conducted.
We would like to report the date of opening as soon as it is decided. I guess the press conference next month was at least April 23 at the latest, but on that day, if I can do it as soon as possible, I'll try to announce it earlier. The contract rate for construction contracts for the main types of construction was 92.14% in February. The cumulative total for the year is 86.47%.

Next is the situation of ETC. If you look at the data for a particular week, 75.2% for the current month, we have written here both March 7-13 and February 8-14, but they are almost flat. Due to various weather conditions, I am taking a break. The trend of high usage on weekdays and low usage on holidays is still the case.

SA sales are 99.2%. The breakdown is 95.6% in the food and beverage section, 97.9% in the merchandise section, 96.4% in the service section, and 106.3% in the gasoline section.
The above is the current business situation.

Next, the topics are explained.
Shin-Tomei Expressway I would like to report on the Dream Road Roundtable. There is a document at hand, but we performed on March 14. I am asking the teachers who are looking for their opinions on building the world leading Expressway. As shown on page 4, at the earlier round-table conference, we exchanged opinions to determine a basic strategy. The teachers' opinions appear on pages 5 and 6. Opinions were received regarding whether various new measures using ITS could be implemented here, such as clean, ecological, safe and secure roads, and stress-free roads, and whether people and things could be separated. You. In addition, we received various opinions, such as the issue of fatal accidents, long-term fuel efficiency improvement, fuel cells, and improvement in international competitiveness. We would like to incorporate them into the final plan in April. You.
If you look at page 9, you will find a big time schedule. It is divided into 2020 and after. Fiscal 2020 is the time when the agreement stipulates that all lines will be opened. Up to that point, we have short-term target services and then long-term targets. It is about to do various measures as written here. The demonstration experiment is on the left, but in fiscal 2009, the next fiscal year, it will be the construction section of Shizuoka Prefecture, but we will use it to conduct demonstration experiments of various measures described here. I will try it.
We have set various goals, but as we wrote on page 10, the goals are written on the left for safety and security, the environment, various lifestyles, and the realization of a vibrant society. To the right is how much you can do as an achievement plan. From the 11th page onwards, the image comparison of the current Tomei and Shin-Tomei Expressway. The whole big schedule is written on page 14.
This is the content of Shin-Tomei Expressway dream road round-table conference.

This meeting was held on March 13th. Last year, we incorporated the opinions of the teachers of this environmental roundtable and published our first environmental report, but we decided to make it a CSR report from next fiscal year. The environmental report is the best source, but we have decided to publish a CSR report that considers what we can do for many other stakeholders. Along with that, the environmental roundtable has been renamed the CSR roundtable. The CSR report is expected to be issued at the end of June this year. Last year's environmental report was in August, but we are going to move it forward a little.
The details of the environmental roundtable are as described in the materials, but Shin-Tomei Expressway, whose construction is currently progressing from various angles such as environment, landscape, cost reduction, etc., is actually a member of this construction site. We had you see and gave frank impression. In the long run, there was an opinion that it was necessary to seriously consider the issue of longer life. There are other opinions on page 5, but as you can see here, Shin-Tomei Expressway is also an important business in many ways in building roads. There was an opinion that I wanted it.
About other contents, it is written here, but if you add a few notes, there is a road safety seminar on page 8. This has already been implemented, but it was started by our Nagoya Regional Head Office, and our employees are dispatched to various places as lecturers. We decided to extend this to the whole company from the new fiscal year. Then, on page 11, there is the Highway Midori no Sato project, which is also progressing little by little, and when I first explained it to everyone, it was called Green foster parent. There was an opinion from the local people that it was strange, so I decided to take the letter parent and make it a green village project. There are many other examples, but I hope that a new CSR report can be created while incorporating these facts.

Next is the traffic situation one month after the opening of the Shin-Meishin Expressway. Here is the talk from the Inaba Regional Head Office president of Nagoya Regional Head Office.

(Inaba Regional Head Office length)

Hello everyone.
This is Inaba, head of Nagoya Regional Head Office. Thank you.
One month has passed since Shin-Meishin Expwy opened. We will report on the traffic situation in our jurisdiction.
First, regarding the traffic volume of the new Meishin Expressway, the average cross-sectional traffic volume per month was 28,000 vehicles. In the table, there are three sections from Kameyama JCT to Koka-Tsuchiyama IC, but it is 28,000 units in a month.
Next, the change of traffic volume of Meishin Expwy is tabulated. If you look at the table below, the traffic volume from Sekigahara to Yonehara JCT has decreased by about 25%, and the number is just under 14,000. Similarly, the traffic volume from Ogaki to Sekigahara is about 24%, and that from Ichinomiya JCT to Gifu Hashima is a 18% decrease. For Tomei Expressway, Toyota is 12% less than Toyota JCT, a decrease of about 8,000 units.
This section describes changes in cross-sectional traffic volume in major sections connecting the Chubu and Kinki regions. This is the first section (as shown in the figure), which is the section of Expressway in the form of 2, 3, 4, and 5, and represents the traffic passing through that section.
First of all, what I would like to talk about first is the opposite, but the fifth cross section, the traffic volume from this Toyota JCT to Okazaki. If you look at this, the traffic has hardly changed. This is the current route of Meishin Expwy and the new routes Meishin Expressway, Higashi-Meihan Expressway, and Isewangan Expressway. You can see here that the total traffic volume was almost unchanged even with the new road.
Then, about each section, the first section, this section. This is written in the upper left, but it means that the traffic of 15,000 vehicles has increased. In the past, traffic volume was 56,000 vehicles, but Shin-Meishin Expressway was newly opened, with 42,000 vehicles for Meishin and 29,000 vehicles for Shin-Meishin Expressway, for a total of 71,000 vehicles. As a result, the traffic volume of 15,000 vehicles has increased. Looking at Meishin alone, the traffic volume for 14,000 vehicles has decreased. It is estimated that probably 14,000 units have moved to Shin-Meishin Expressway.
It is also the second section. Meishin is a section of Sekigahara from Ogaki, and Higashi-Meihan is a section of Suzuka from Yokkaichi. Also in this section, the total traffic volume has changed slightly from 125,000 vehicles to 124,000 vehicles, but has remained almost unchanged. In comparison, Meishin has decreased by 13,000 units. Similarly, Tomei Osaka is the result of the corresponding increase in traffic volume.
Next section. Meishin is from Ichinomiya JCT to Gifu Hashima, Higashi Meihan is from Yatomi to Nagashima, and Isewangan Expressway is from Wangan Kiso Cape to Wangan Nagashima. As a result of adding three numbers, 176,000 units are almost unchanged at 177,000 units. Meishin has decreased from 75,000 to 62,000 and 13,000. Similarly, with the opening of Shin-Meishin Expressway, I think that the traffic of the current Meishin has shifted to the south side of Nagoya City.
The fourth section is the Tomei section, but 118,000 are 119,000, a little north of Toyota JCT. Here, the result is that Tomei decreased by 8,000 units and Isewangan Expressway increased accordingly.
These are the changes in traffic over the past month.
If you estimate, I think that the traffic of 10,000 thousands from Meishin may have been converted from Higashi-Meihan Expressway on the south side of Nagoya to Isewangan Expressway.
that's all.

(Chairman)

Next, I will explain about the Fuji Excursion Plan.
This is announced by the Yokohama Regional Head Office and the Hachioji Regional Head Office office today, and I think it is a good opportunity to distribute it at the same time.
From now on, I decided to do it under the brand "Fast Trip", and I thought about the Fuji Excursion Plan as the first project.
We have been doing various planning discounts so far, and this is the 18th case, but this time we will do it from April 19th to July 18th. We have provided it in this area before, but this time we have prepared two courses, "Gotemba / Kawaguchiko Course" and "Shizuoka / Yamanashi Wide Course". Last year, there was only "Gotemba / Kawaguchiko Course". Then, last year, I offered it as a mileage gift in a point system, but this time I will do it in the form of a fee like this. Also, last year it was only on weekdays, but this year it will be a little cheaper if you apply early, including holidays, and as you can see in this document, various plans such as various benefits and tie-ups with travel agencies are included. It has been.
Perhaps because our planning discounts are being done constantly, awareness has risen, and the number of people participating in it has increased every time we announce it, and 1,200 or 1,500 people are applying for each project. increase.
For the new year starting in April 2008, I would like to plan about eight in total, including the ones I have just mentioned.

Next, about smart IC of Kameyama PA and smart IC of Ataka and Nagasugi PA. Although this has already been announced, construction of Kameyama has been completed and will resume from the 30th. As for Ataka and Nagasugi, Ataka has begun operation on the 23rd, and Nagasugi will also start a social experiment on the 29th.
As you can see on the second page of the material, as you can see, the six orange locations are currently in full operation, the green locations are for ongoing social experiments, and the red locations are in preparation for social experiments. The social experiment will be conducted at one of the red and green locations, and Kameyama will resume operations. PR materials for other customers are also attached.

Next is the new uniform of the toll collection subsidiary. This is a new decision and we will start wearing it tomorrow.

(Model entry)
For this, I decided to use a new uniform. The company that collects this fee is called Central Japan Extorl, and one company was established in Yokohama and one in Nagoya on October 30. More than a year has passed since the opening of the business, and the uniforms have been redesigned using brand colors and logos. Also, with the spread of ETC, ensuring the safety of collection staff has become an important issue, so we have taken such points into consideration. The number of employees to be changed is 3,200. Then thank you very much. (Model left)

Next is the introduction of the electronic contract service. Actually, we had previously made electronic contracts for transactions within the group, but now we are considering expanding the range to Large for contracts with business partners other than Companies in our Group. You. Regional Head Office We will inform you of this in the public notice of bidding, etc., because this is an ordering project. Whether it is an electronic contract or a document contract as before is left to the choice of the business partner. The operation start is a project to make a public notice of tender after this April. This is today's press release.

Next is the launch of the Highway Medical Call Service. This is another new announcement. This service will be started from April 1 with the cooperation of the Expressway related Council for Social Contribution. It is provided at SA with 45 concierges under our jurisdiction. This is for those who use the Expressway to get emergency medical treatment or consult with emergency medical specialists, etc. by using a dedicated telephone from the SA when they feel sick. , A system to provide consultation free of charge 24 hours a day. During the time when the concierge is not working, the cashier at the shopping corner will take over the work so that the service can be provided 24 hours a day. You will be given a mobile phone and you will be able to reach the phone immediately with a simple speed dial, and a nurse or paramedic will respond, and a resident emergency physician will respond if necessary.

That's all for my opening explanation.

(Moderator)

Then, thank you if you have any questions.

(Reporter)

The provisional tax rate for gasoline tax is being discussed in the Diet. There are many views that the provisional tax rate will probably disappear temporarily, but what kind of response is GS on the Expressway thinking about?
And the first medical call service on an Expressway. I myself had the image that the Expressway was quite solid in dealing with accidents. Did you ever do this?

(Chairman)

If the bill to maintain the provisional tax rate is not passed on the assumption that the gasoline tax will be decided, it depends on how the former oil sales company will respond, but as ours Wants to make a proper decision based on the decision to sell petroleum so that the new selling price does not mislead customers. When I asked a lot, there were various problems, such as stock remaining at an old price, and there seemed to be various opinions on whether or not everything would be immediately cheaper. We would like to ask our customers to make sure they can publicize them so that misunderstandings do not occur, and to make the display on the stores clear. Also, we want to keep the price of gasoline at our gas station on the Expressway unchanged from the actual price one week ago as the upper limit, as before, but we have to be flexible while watching the situation I think that we have to go for it.
And about medical call service, we have been doing various things based on the funds contributed by the Social Contribution Council. AED installation, maintenance of ostomate toilets, stockpiling of emergency rescue supplies, etc., are part of that, or to extend these services as an extension. This is not only our company, but we are going to do it in about 200 service areas nationwide including East Japan and West Japan, so it is an emergency response so we can not predict how much you will use, After all, I feel sick and various things can happen, so I decided to start this service, which is the first Expressway service in such a case.

(Reporter)

Regarding the opening of the Tokai-Hokuriku Expressway, is it at least possible to open in late July?

(Chairman)

Yes. I say "around July", but I will open it in July. I'm trying to figure out which day of July now and let me know as soon as it is decided.

(Reporter)

Mr. Heita Kawakatsu of Shizuoka University of Arts and Culture is a member of the environmental roundtable. Mr. Kawakatsu is a very unique person, so I would like to ask what kind of opinion he had.

(Chairman)

I was praised for the first time I saw Shin-Tomei Expressway Tomei, so I felt a little bit better. I am very grateful to have said in a unique word like that teacher that I am really careful about the environment and landscape and that the highly engineering results are very aesthetic. Was. I have received many comments on future issues here, and I have forgotten a little about which opinions were for the future of CSR, but I would like to ask Mr. Moriyama to introduce the opinion of Dr. Kawakatsu.

(Moriyama leader)

Mr. Kawakatsu's opinion on CSR has received two points. The second point from the top of page 5 "Main Opinions" of the document at hand, "In the case of trees on the Expressway slope, if there is a tree before development, it will be necessary to subtract You need to be careful because it's leading. " He also commented, "Isn't it possible that if Central Japan invests in forests in the surrounding area, such as thinning and pruning, it will activate the forests and contribute to society?"

(Chairman)

Please introduce the impressions of the site visit to ensure accuracy.

(Moriyama leader)

Yes. It is page 4 of the material at hand. As mentioned earlier by the chairman, "In pursuing the type of bridge, pursuing mechanical beauty is actually reducing costs in terms of cost, material, construction period, various aspects, and reducing the amount of material. In some cases, and as a result it has become visually beautiful. "

(Chairman)

that's all.

(Moderator)

If there are no other questions, the 29th regular press conference will be over.
Thank you for your busy today.

(Chairman)

Thank you very much.