May 17, 2006 Chairman Kondo regular press conference
Conference Summary
Hello everyone. We start regular press conference in May.
How was the consecutive holidays? Time is early. Next month, I think we can talk to everyone about the financial results for the first year-six months.
I will talk about three points today.
The first point is the current state of the business. Please listen while looking at the distributed materials.
First, Expressway Is the situation.
The status of sales.
The fee revenue in April was about 50 billion yen. Compared to the same month last year, it is a considerable decline. It is slightly over 3% depressed.
However, the number of traffic is increasing. About the difference, ETC is popular Large I hope you understand that the discount effect has come out.
Specifically, the discounted portion of the fee income is about 7.8 billion yen. Without it, it means that there was toll revenue commensurate with traffic volume.
This reduction in revenue is not factored into the 45-year redemption plan. In other words, the decline in toll revenue was within the expected range. There will be no impact on the redemption plan.
The construction situation is the same as last month.
Next is the status of construction contract bidding rates for the main types of work.
The cumulative total for April was 81.33%. Since the number of cases is small, it will not be understood until it is analyzed how it will affect the whole. In light of the fact that the average for the six months since the new company was established was 85%, I can at least say that the trend toward a lower rate of successful bids continues.
I told you last month that the successful bid rate was 85% in the last six months. We are currently working on this type of analysis. I think we can talk with some materials next month.
Next is the status of ETC.
The most comparable period is between April 21 and April 27, but the ETC usage rate was 62.7%.
Numbers during consecutive holidays are written in parentheses. This period is usually Expressway Many customers, including customers who do not use, have used it. The usage rate has fallen to the 50% level, but it has risen by over 1% at 61.8% in early April and 62.7% in late April. Excluding the factors, this trend continues. The most recent number on weekdays in May is over 67%. The utilization rate of ETC is steadily increasing.
The number of new setups during the month of April was 430,000 units nationwide.
We talked about the previous “Challenge V”, but at the end of this fiscal year, that is, at the end of March next year, we have set a goal of “to make ETC usage rate 73%”. Since it is 63% now, it will increase by 10% over the past year.
If you look at the numbers alone, it will be easy. However, it is not always a simple issue. I think that a considerable campaign is necessary. I am currently conducting a campaign and hope to start our own card business within the year. Including such things, we will further promote the campaign and increase the number of setups. As a result, we want to achieve a utilization rate of 73% at the end of March.
The status of the service area.
Sales in April were approximately 10.3 billion yen.
Compared to the same period last year, the food and beverage department increased 2.2% and the product sales department increased 3.5%. I think it's proportional to the economic situation and traffic growth.
Based on the current total sales, the sales target for “Challenge V” announced last month is almost the number that can be achieved. However, to achieve the third year of “Challenge V”, it is necessary to set a fairly ambitious goal. Going forward, we will endeavor to expand sales campaigns and introduce new business formats.
Currently, we are working on more ambitious goals for this year based on the final year of Challenge V. Work to introduce target management plans by organization and by individual is still underway throughout the company. We will incorporate ambitious numbers in that.
The GS (gas station) department fell considerably in April. It is a negative 1.4% compared to the same month last year.
The unit price has risen considerably, but the sales volume has further decreased. Perhaps this is a national trend. Although it cannot be verified until next month, I think it is the result of a decline in overall demand due to price increases.
However, for now, I can't say anything definitive, but there are reports that sales volume has increased considerably in May. I'm looking forward to the May numbers.
In the future, we will consider measures to encourage more customers to use more gas stations, such as reviewing the management system of gas stations.
The current state of the business is second only.
NEXCO Central Japan Highway Guide and Road Emergency Dial numbers Large is. I think the materials are distributed at hand.
“# 9910” is the emergency dial, and the NEXCO Central Japan Highway Guide number is “0570-090333”.
We have a 24-hour service to answer this number. Expressway If you are a customer and would like to ask a question or inquire about traffic conditions, please call this number.
When you want to ask something, some customers may stop by the road, cross the road on foot, and go to the toll booth office. Such a thing is very dangerous.
Expressway Is very convenient, but it is very dangerous to leave the car. If you have any problems, you can not use the phone if you are driving, so if you are a passenger, please stop your car in the service area otherwise I would like you to use a number.
Do not get out of the car on the street, or get off around the toll booth and walk Expressway I would like to ask you not to cross.
If you have found a broken car on the road, "your car has broken down", or "found a fallen object", you should use "# 9910". Of course, you may call the NEXCO Central Japan Highway Guide. Immediately, we have a system in place to contact necessary places such as the traffic control room. However, if you know both phone numbers, it would be greatly appreciated if you use them properly.
These two numbers are being used by a large number of customers, but I would like to hear more from customers. We would also like to contact you in a timely and appropriate manner.
We will communicate this number thoroughly through various measures. I would like to ask all of you for your cooperation, and I would like you to use this number yourself.
It is the third.
We want to be an open corporate body with the most advanced information disclosure. In that sense, we promised to appoint a person in charge of information disclosure in the Challenge IV, but we have appointed and announced an information disclosure person on the 16th of this month.
I will introduce. My name is Sadahito Kato.
If you have any questions, I would like to contact or consult Kato's information disclosure specialist.
As a company, I would like to make every effort to disclose information as one of the most important management issues.
Mr. Yamamoto, who is here as an officer in charge of information disclosure, Mr. Hishida, General Manager of the General Affairs Department, and Mr. Kato, who I introduced earlier. I am involved in the disclosure of all kinds of information including financial information.
In principle we want to disclose all information. We will exclude exceptions regarding matters related to personal information and the fact that it is desirable not to disclose for the time being in business activities, but in principle we will disclose otherwise.
The disclosure method will also be devised in the most understandable way. I would like to point out and receive guidance.
From me, these are 3 points. We will accept any questions.
(Reporter)
You mentioned earlier that you are going to consider management strategies at the end of the gasoline story. Is there anything in mind?
(Chairman)
All gas stations are basically outsourced, and tenants enter.
First of all, regarding the relationship with the tenant, we will consider whether it should be as it is or whether there is room for improvement. Much effort Expressway Since there is a gas station in the space, the first point is that we want to think together about ways to make more customers use it.
Then another is the price issue.
Currently, the price is uniform throughout the country. The system does not require a uniform price setting, but because it has decided a uniform upper limit price nationwide, as a result, it has become a uniform national price near the upper limit price. Will this be desirable in the future?
As you know, the price of gasoline is intensifying due to competition and intensifying depending on the region or timing. At the same time, we would like to consider whether there is a better way to participate in market competition appropriately.
We are not thinking of “this should be”. We are just starting to consider starting from zero base.
However, I think this study will take several months. I think it will be necessary to listen to the opinions of tenants, the opinions of the people in the industry, and the opinions and requests of customers.
We are better for you Expressway I would like to consider how the gas station above should be.
(Reporter)
In the situation of the service area, the issue for the final year was the introduction of a new business format. I would like to ask you about what the current content is and how long will it be introduced.
(Chairman)
As for the business format, I'm talking about “Challenge V”.
For the time being, what I want to do now is to sell fresh vegetables together with the local people in the service area. In addition, we will increase convenience stores that are highly requested by customers. In “Challenge V”, we have declared that we will respond systematically from the first year. I want to do these things steadily.
I also think there is a lot of room for improvement in the food and beverage sector. I wonder if there is an area where you can cooperate with your current tenant, or you can collaborate with people other than your current tenant.
In addition, the current product sales department. Convenience stores are also included, but I think that the product lineup may be enhanced in response to customer requests.
In the service field, we are currently doing 2 hotels, massages and barbers. How do you spread these things? Or how will the content be improved? Whether or not the improvement or expansion is done with the current tenant or not. That means that we are also considering that.
We want to achieve at least some places in the first year. The timing will be announced as soon as it is ready. I think I can tell you something from this month to next month at the earliest.
(Reporter)
When is the final settlement of accounts as you said in June?
(Chairman)
I'm working on a big deal now. I want to harden it by early next month if possible.
(Reporter)
Will the announcement be around mid-June?
(Chairman)
I would like to decide the timing of the announcement based on the intentions of shareholders. I want to finalize my financial results by at least the beginning of June, so I would like to make an announcement as soon as possible.
(Reporter)
Regarding the information disclosure you mentioned earlier, you were in charge of the person in charge of the introduction, but do you mean that you are in charge, including at the branch office?
(Chairman)
each Regional Head Office Has a department dedicated to public relations. Each office also serves as a public relations representative. Therefore, if you can contact each branch, you will be able to respond appropriately.
Regarding the work of the information disclosure specialists introduced here, it is to summarize the work, and then give advice. And it is the duty to proactively and proactively respond to the areas where there is room for ingenuity and supervision at the head office.
Although it is possible to respond properly at the field office, I would like to improve the way of responding in the future.
(Reporter)
Regarding the status of the successful bid rate, you will announce the analysis results by type of work next month. Please tell us how you are analyzing.
Can you tell us that as a result of introducing a new bidding system, the winning bid amount and the winning bid rate have decreased? Or will it only be issued after carefully examining the number of successful bids?
(Chairman)
There are basically two things to consider.
One is how to think about the actual situation. The one with the successful bid rate decreasing, the one not changing much. Then, were there any problems with individual bids? What are the factors? How effective is the competition principle? An analysis of these facts.
The other is whether there is room for improvement and ingenuity based on the analysis of bidding work in the future. If so, what does it mean? I think that I would like to make proposals on such measures.
I think I can report something about these two points.
(Reporter)
Will the report be announced along with the financial results?
(Chairman)
No, I don't necessarily think about it.
We think about the bid result analysis as soon as possible, so if it is completed before the financial results announcement, we will announce it without waiting for the financial results. If it is not done at the time of financial results announcement, I will do it as soon as possible after that.
See you next month.
