September 19, 2008 Chairman Yano's regular press conference

(Moderator)

Then we will start a regular conference.

(Chairman)

Hello everyone.
Thank you for visiting us before the storm.
There are many projects today, and it will take some time to explain, but thank you.

First is the overview of the business for August.
Toll revenue in August was down 7.4% year-on-year. The breakdown is minus 8.1% for highways and plus 0.3% for general pay. We believe that highways were affected by soaring crude oil prices and bad weather, especially on holidays. Ordinary toll also is why there was a similar situation, but the Shin-Meishin Expressway involved in-service Isewangan Expressway to an increase in the traffic volume of the road, and was the result in slightly higher sales.
The number of traffic was minus 4.2% compared to the same month of the previous year. Highways are minus 5.0%, and general charges are minus 1.2%.
This month's ETC discount amount is increasing, and if there is no ETC discount amount, the fee income is 73.9 billion yen, the discount amount is 16.2 billion yen, and the ETC discount rate is about 22%.

The construction situation has not changed from the previous month.

Regarding the construction contract successful bid rate for the main types of work, there were 7 in August, and the average successful bid rate was 78.03%. The cumulative total for the year is 85.45%.

Next is the usage status of ETC. Comparing the period from September 5th to 11th and August 8th to 14th, the usage rate in September was 75.6%, which is the same as in June and July. August was 71.1%. The usage rate on weekdays and holidays shows the same tendency, but in August, the situation similar to that on holidays is occurring on weekdays, so the overall usage rate is decreasing.

Regarding the situation of SA, although the traffic volume is decreasing, the sales are increasing slightly, and it was 101.3% compared to the previous year. The food and beverage department is 103.7%, the product sales department is 103.9%, the service department is 91.7%, the gasoline department is 95.1%, and the advertising department is 200.0%, which is a small amount, accounting for 101.3% overall.
The above is the current state of the business.

Next, I will explain the topics.
The first is "emergency comprehensive measures to realize peace of mind." This is the one announced on September 9th, and is being distributed again. As you probably already know about the scheme and contents, we are currently soliciting public comments and opinions from the 9th to the 22nd, and after this is over, we will make a reduction plan and the Minister of Land, Infrastructure, Transport and Tourism. It means to enter the procedure to obtain the consent of. Before that, as a social experiment, a part of it has already started on September 16th. The holidays will start tomorrow, but we would like to realize full-scale implementation according to the prescribed procedures.

The second is the traffic situation six months after the opening of Shin-Meishin Expressway. I am reporting this from time to time, and what I handed out today was announced today at 11:00 under the joint name of the West Nippon Expressway Company and the Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism. It's not new news for you, and again, it's up to you.
As you can see here, the situation is almost the same as when it first opened, and the average daily traffic volume is about 29,000 vehicles. There is about 10,000 traffic passing through Toyota JCT and Kusatsu JCT, but about 80% of them are using the new Meishin Expressway, and the traffic congestion on national roads has eased. However, on the other hand, as you know, congestion and congestion are increasing at Higashi-Meihan Expwy in our jurisdiction, and the demand for promoting the construction of the new line from Yokkaichi to Kameyama has become very strong. It is a situation that there is.
There are various things such as the increase in the number of tourist bus users, the voices of companies saying "I'm glad that the punctuality has increased and the reliability of the road has increased", the peace of mind for emergency medical care, the function of the alternative route of the Meishin Expressway, etc. It has been evaluated. I wrote a lot, but on the first map, the traffic volume of Meishin is decreasing and Shin-Meishin Expressway is increasing, the traffic conversion situation and traffic congestion situation I mentioned earlier, Yokkaichi I would like you to take a look at the data that supports what I said at the beginning, such as the increase in traffic congestion.

Third, we are renovating the 36.8km concrete pavement from Nirasaki on Chuo Expressway We are proceeding with the business to further improve the service by stacking asphalt pavement on top, but the situation is that we are working toward completion in 2009, one year ahead of the initial 2010. We have been working hard to improve driving performance, comfort, and the surrounding environment by improving the flatness of the pavement, reducing vibration during driving, reducing noise inside the vehicle, and reducing noise in the surrounding area. I think

The fourth. This is a continuation of last year's implementation to alleviate congestion when the F1 Grand Prix is held. This year's Grand Prix will be held at Fuji Speedway from October 10th to 12th, but this year we will also offer a service that allows you to come and go directly to the specific F1-related buses at Ashigara SA. I made it. 220,000 people are expected to visit, and 1,400 buses will move, so we achieved results last year, so it was decided that "by all means, this year as well", and in that respect as well. We are making preparations while discussing with the people concerned if there is something useful.

The fifth is "Watch out for tunnel driving". We are handing out pamphlets to you. This is the third guide and pamphlet of this type, following the year-round version of the "Highway Driving Care Guide" and the winter road-specific "Winter Road Driving Care Guide". Tokai-Hokuriku Expressway, a long tunnel of 10.7km, has opened, so I took this opportunity to take care of the tunnel driving. I hope you can see the contents, but as before, I would like to distribute it to the Bus Association, Trucking Association, driving school, etc. By the way, the first high-speed driving caution guide printed 170,000 copies, and the winter version printed 100,000 copies. I will print 50,000 copies this time, and if necessary, I will reprint.

Next is the sixth, "Tokai / Hokuriku ETC tour plan". Regional Head Office on September 10th, but since it will be implemented from October 1st, it will be near, so I would like to inform everyone. These planned discounts have been gradually known recently, and the Tokai-Hokuriku Expressway Dozen Memorial ETC Tour Plan" that is being implemented from July 5th to September 30th has reached about 15,000, 8 The number of usage is about 12,000 by the 31st of March. It will be the 26th plan including this announcement so far, but the usage has gradually increased, and it has increased from 1,000 to 2,000 and from 2,000 to 3,000, and as I mentioned earlier, all commemorative ETC. The tour plan has already received more than 12,000 uses. We are working to encourage drivers who use the road to use it as conveniently as possible when traveling with their families, but I think it has finally become known.

The seventh is the new news that we will announce today, which is to publish a book called "The Story of the Hida Tunnel that Penetrates the Unexplored Region." We gave it as a souvenir to everyone who came at the opening ceremony on July 5, but it was so well received that it was widely accepted by the general public about road construction episodes, hardships, and technological innovation. I decided to sell it at a selling price of 840 yen so that I could deepen my understanding of the Expressway getting to know the story. The same is true for the travel industry, and we do not have a network to sell these books ourselves, so we are thinking of selling them as the first book at the "Highway weather" internet shop. As it is also in other materials, it will be placed in some SAs and PAs in the Nagoya and Hokuriku areas so that it can be purchased together with other souvenirs, and it will also be sold directly at the head office.

Next is new news to be announced today. Expressway introduction of the autumn menu for the highway lunch box "Hayaben", we are planning to do a campaign to commemorate the 2nd anniversary of Kayaben. It will be renewed to the autumn menu from tomorrow. It started selling in November, but it will soon be two years. During this time, we were able to sell about 110,000 meals. From October 11th to December 5th, around the sales start date, we will hold a "Hayaben 2nd Anniversary Campaign". Those who apply will be given a gift by lottery. Please refer to the material for the contents of the speed valve.

Next is the customer appreciation event. Customer appreciation events will be held at the Nagoya venue "LACHIC" and the Tokyo venue "Tokyo Midtown". I talked about holding the event at the last press conference, but this time, as you can see in the attached sheet, the details have been finalized. Then, at the bottom of page 3 of the attached sheet, "Autumn Holiday Festival" -A shopping ticket will be presented by using SA / PA!-", So we will do something new like this as a continuation of the previous campaign. is.

The last is the introduction of free calls to the customer center. We have already announced this in the press release on July 23, but since the introduction is finally approaching from October 1, we are handing out a card that is one of the public relations materials. I would like to promote the introduction of free calls in various places such as posters. I think that the number of cases will increase if we make free calls, but I would like to strengthen the system as much as possible and make efforts to respond to it.

This concludes my explanation.

 

(Moderator)

Then, thank you if you have any questions.

(Reporter)

You explained earlier about the decrease in toll revenue in August, but is the weather factor a major factor in the 4.2% decrease in the number of passengers, or is it that you have been withheld?

(Chairman)

It is the same as what I said as a factor of the decrease in toll revenue. We analyze that there are two points: soaring crude oil prices and bad weather on holidays.

(Reporter)

From this Tuesday, Expressway discounts have been implemented in the form of a social experiment preceded, but what does this discount mean for your company's management, and the response and achievements so far since Tuesday? I'd like to ask.

(Chairman)

We have heard requests for price reductions in various parts of our jurisdiction, and we have consistently made a return with an ETC discount. That's a 22-25% discount. I'm thinking of doing this on my own, but it's impossible to do more than that from the physical strength of management, so this time I will use the national financial resources of 100 billion yen to discount the rate. Will be done. The production will start in October, but I think it is very good in terms of improving services, including the social experiment in the previous stage. It does not mean that it will be a direct benefit to our management itself, but rather, I think that the necessary expenses will increase in various ways due to these new measures, but we will dare to absorb it with our own power. I am thinking. To summarize briefly, I think it is a very good measure to meet the expectations of drivers and locals. It does not directly affect the management itself.
After that, it was about achievements, but in the current situation starting from Tuesday, it is not possible to know whether the results are numerical. I think it's about to come. I would like to inform you if I can talk to you next time in a month, and if there are any changes, I would like to report.

(Reporter)

I'm looking at the Hida Tunnel book, but how many copies did it print?

(Chairman)

The first edition is 3,000 copies.

(Reporter)

Is it 3,000 copies including those distributed at the time of opening?

(Chairman)

No. The amount sold this time is 3,000. The ones that were distributed before were not priced.

(Reporter)

Is the content the same? It was written by Mr. Terada that he was able to put together various things inside and outside the company.

(Chairman)

Yes, it is. Mr. Terada played a central role in gathering the voices of various stakeholders.

(Reporter)

Regarding the number of vehicles passing by, could you tell us the number by vehicle type?

(Chairman)

By vehicle type, August is 101.8% for light vehicles, 94.4% for ordinary vehicles, 92.8% for medium-sized vehicles, 96.2% for large vehicles, and 97.6% for oversized vehicles, for a total of 95.0%. This is a summary of national expressways, so it is different from the minus 4.2% in the material at the beginning of today, but you can see the general tendency.

(Reporter)

Regarding the price reduction, this is a one-year time limit. We have a budget of 100 billion yen this year, but please tell us your opinion whether you are planning to continue it from next year onward, or if you think that it is unavoidable to finish in one year because it is an emergency measure.

(Chairman)

I would like you to continue if you can. However, it can change again due to changes in social conditions, so I think it will be one of the issues for future discussions whether it will be decided for the number of years from the beginning and whether such measures can be taken permanently. However. I want you to continue in a year.

(Moderator)

If you have no other questions, this is the end of the 35th regular press conference. Thank you very much for your busy schedule today.

(Chairman)

Thank you very much.