May 21, 2008 Chairman Yano's regular press conference

(Moderator)

Then we will start a regular conference.

(Chairman)

Hello everyone.
There are some topics today, so I will explain them in order.

First is the business overview, April.
Fee income in April was minus 3.4% year-on-year. The breakdown is high speed minus 4.7% and general pay plus 11.9%. Highway sales declined due to an increase in discounts accompanying the spread of ETC. General tolls are due to the effects of opening the Ken-O Road.
The number of passing vehicles is 2.8%. High speed is plus 1.7%, general pay is plus 7.7%.
The ETC discount amount was 15.3 billion yen, an increase of 15.1% compared to 13.3 billion yen in the same month of the previous year. If there is no ETC discount, the revenue will be 63.3 billion, which is 0.5% higher than the same month last year. Therefore, the ETC discount rate for this month is 24.2%.

The construction situation has not changed.

The contract win rate for major works is 6 in April, with an average win rate of 84.29%.

Next is the use situation of ETC. It is 74.8% in April. As it was 69.2% in the same month of the previous year, it increased by 5.6%. Looking at the latest data, it is 76.4% in one week from May 9 to May 15. This is a slight increase from 75.3% almost a month ago. Weekdays account for 78.1% and weekends and holidays account for 71.2%, which means that there are many ETC users on weekends. The cumulative number of on-board units installed is about 19.5 million, which is about to reach 20 million soon.

SA sales were 99.3% of the previous year. The food and beverage department is 102.1%, the product sales department is 105.2%, the service department is 97.1%, and the gasoline department is 84.2%. As you know, the price of gasoline has fallen and the effect has come out. The other divisions seem to have made a good start.
The above is the current state of the business.

Next, I will explain the topics.
First, Tokai-Hokuriku Expwy It is the situation of 4 lanes. Today, I will make a press release from Regional Head Office, Nagoya, and I would like to explain the outline.
It has already been announced that this 4-lane section will be completed by the end of fiscal 2008 from Hirugatake PA to Gujo-Hachiman IC, but we have been proceeding with the construction. On the other hand, the whole line of Tokai-Hokuriku Expwy was decided to open on July 5th, and considering that many customers will be using this during the summer vacation, we will concentrate and centralize the construction, Yes, but we decided to open the traffic in four lanes before summer vacation. Starting from May 27, we will carry out lane switching work in line with the four-lane conversion under continuous day and night regulations. We apologize for any inconvenience caused during this time, but we would like to ask for your understanding and cooperation. For details, refer to the materials you have, and there is a map on the last page, but I just explained the open section this time, and then, in order, from Gifu Yamato IC Shirotori IC Are scheduled to be completed by the end of the year, and GujoHachiman IC to Gifuyamato IC are scheduled to be completed in fiscal 2009.
This is the first topic.

The second is the Higashi-Meihan Expressway Tomei Expressway, the Higashi-Meihan Road "GW half-price discount", and the half-price discount to eliminate traffic congestion. I will explain the results, though it is breaking news. The manager in charge, Mr. Komuro, will report.

 

(Manager)

I am a Komuro in charge of the maintenance and service business.
"GW Half Price Discount" rates explain the results of TDM. Please refer to the image diagram on page 1 of the document. Toll TDM aims to alleviate traffic congestion by having customers in crowded times shift their time zone to relatively empty time zones before and after by discounting charges before and after that, and this GW period is Tomei and It was conducted in Higashi-Meihan Expressway. As shown in the table at the bottom of page 1, the traffic jam near the Yamato Tunnel on the Tomei In-bound Line, the Higashi-Meihan Expressway is This is aimed at traffic jams near the Yokkaichi IC on the In-bound Line.
As I mentioned earlier, we conducted TDM at a 50% discount and half price during relatively empty hours before and after the busy hours.
There is a diagram of the target toll booth on the second page, so I think it is easier to understand if you look at it. For Tomei, it is for those who enter between Shizuoka and Atsugi and leave Tokyo from Yokohama-Machida. Higashi-Meihan Expressway entered between Ise, Ise Nishi, or Omiya Ōdai between Yokkaichi and Yokkaichi intended for those who Nagoya-nishi from the east, Toyota-higashi or Toyokawa. The third page provides a summary of the preliminary results, but first, on page 3, Tomei Expressway However, I would like you to take a look at the four bar graphs in the middle. The red diagonal bar is last year's result, and the blue bar line is this year's result. The graph on the top left, the graph of average daily traffic, is down 4.6% compared to last year. This is thought to be due to the fact that the weather was not very good compared to last year. In addition, in the graph on the upper right, the cumulative traffic volume of the daily average discount target time zone has also decreased. The result is the graph on the lower left of the four, but unfortunately the amount of traffic congestion has increased by about 14% compared to last year. We believe that the biggest reason for this is that the traffic capacity of the Expressway itself has decreased due to the bad weather. The two bar graphs below show how it compares to the results of the calculation of what would happen if TDM had not been performed. The black bar is the result of calculating how much traffic jam would have occurred if TDM had not been performed, based on the questionnaire, and the blue one is the actual result.
As you can see, both the amount of traffic jam and the maximum congestion length have been reduced by about 14 ~ 18% by TDM.
Page 4 is a summary of the results of Tomeihan. As with Tomei, the four bar charts in the middle, the red bar is last year and the blue bar is this year, but the average daily traffic volume and the traffic volume during discount times are 17.8% and 15.4%, respectively, which is a considerable increase compared to last year. This is Shin-Meishin Expressway We believe that this is due to the fact that the number of customers using Tomeihan has increased considerably due to the opening of the line. In addition, the average daily traffic congestion in the lower left of the four bar graphs is unfortunately 20.2%, which is also a considerable increase compared to last year. The two graphs below are calculated from the questionnaire what would have happened if TDM had not been performed, as in Tomei, and the graph on the right, the average daily maximum congestion length has decreased slightly to 1.0%, and the traffic jam volume on the left has increased slightly to 3.6%, and there are days when it is effective to look at each day, Looking at the total result, it is a disappointing result that not much effect was seen.
That's all there is to it.

 

(Chairman)

As for the next topic, I will explain it in the materials at hand because it is a trial introduction such as a public offering type quotation consultation method.
In recent construction orders, there are some works for which it is difficult to formulate a Standard construction plan or for which it is difficult to set a Standard price, and this is one of the causes of what is said to be the failure, failure or failure of bidding. It has become.
As shown in this table, the total number of construction works executed in the competitive bidding in 2006 and 2007 was 659 cases, of which 62 cases were unsuccessful and 57 cases were unsuccessful, with a total of 119 cases. 18%. Moreover, the number of cases in 2006 was 36, but in fiscal 2007 it was 83, almost doubled.
The calculation points and steps are set up for works that have a Standard construction plan, but when you look at the projects that did not fall or were not established, you can see that there are no calculation points or steps for that work, or We also analyze that there are some reasons that the points of accrual and steps are not in line with the actual situation. The contract limit price has been used up to now for the purpose of grasping the Standard construction plan and progress of such construction, but it can be replaced with the contract reference price so that the contract can be made even if it exceeds the reference price. Today's explanation is that we decided to introduce a new bidding contract system on a trial basis.
The new system is divided into two parts, one is a public consultation type quotation consultation method, and the other is a construction technology competitive type comprehensive evaluation method. Although there is an open call for participants type in the picture, we will recruit participants and make an estimate with those who have confirmed their participation qualifications. The estimated price of the lowest price offerer, if this exceeds the contract reference price, conduct price consultation with the company to confirm the reason why it exceeded the contract reference price, do it, and then at the price after the consultation By signing a contract, this method is intended to be applied to construction work of less than 2.63 billion yen.
The next construction technology competitive comprehensive evaluation method is to submit a technical proposal and bid form from this competition applicant, and as a result of the examination of the technical proposal, bid for a company with a technical evaluation score of 50 points or more. This is a method of participation, and this has actually been tried since 2007. This time, in the case of construction with special conditions, the contract limit price was replaced with the contract reference price, and the technical evaluation point and the price evaluation point were added from those who offered the bid amount up to 120% of the price. It is a mechanism to make the person with the highest overall evaluation score the successful bidder. The idea is to make it easier to do by relaxing it from 120% to 100%. If the bid price of the company exceeds the contract price standard, the reason for the contract price exceeding the contract price is the same as before, but a price consultation is conducted to confirm the price, and then the price after the consultation. It is to sign a contract with.
The construction to be introduced by trial is to be introduced in order starting from the construction in which a bid is announced after June of this year.
This is an announcement from me today.

Next topic. We are now looking for participants in the "3rd Newspaper Bridge Contest". We would like to thank all the media, newspapers, and television companies for their patronage, and we have become quite widely known. Today Nagoya Regional Head Office Yoshioka deputy from the Regional Head Office because it is coming length, I would like to ask for explanation.

 

(Sub-Regional Head Office length)

I am Yoshioka, Deputy Director of Regional Head Office, Nagoya Regional Head Office. Next, I would like to explain the recruitment of participants for the "Expressway (Bridge) Contest made with the 3rd newspaper."
The subtitle of the material at hand says, "Aim, 40kg! Only a newspaper can withstand the weight." This is a contest last year, and although I will explain the event later, a record of 37 kg in the load bearing section in general Came out. There are three bridges decorated by the window, but the one in the middle is that. I got a record of 37kg, so I decided to try to exceed that record this year, so I gave a subtitle like this.
The purpose and purpose of the contest is that, in NEXCO Central Japan, the “Expressway (Bridge) Contest for the 3rd Newspaper” will be held for the purpose of getting to know the road and familiarize yourself with it. We are looking for participants. In this contest, Expressway 's bridge is made using the newspaper that anyone can easily obtain and process as a material, and the design and strength of the work compete. I hope that you can feel the mechanical technology of bridges and others through your work and get interested in Expressway. We also hope that the reuse of newspapers that are discarded after being read will lead to the effective use of resources.
As for the schedule for this year's contest, we will be recruiting from tomorrow to early September, as you can see from the materials you have. The competition and awards ceremony is scheduled for October 18. The venue is as stated.
There are 3 competitions, load bearing, lightweight, and design. The load-bearing section competes for how much weight it can bear. The lightweight section is a competition for how to make a bridge that can bear a 1kg weight lightly. The design department competes not only for beauty, but also for originality, functionality, and planning ability. There are 6 divisions in each event, which are divided into divisions for junior high school students and younger and general divisions. The awards and supplementary prizes are as stated, but I would like you to see the bottom, but as a participation award, all the entries will be presented with a book coupon. In addition, for those who have a premium Drivers' card, which is our membership card, 1,000 shopping points will be given in addition to the book coupon.
I'll omit the explanation on the following pages since the production conditions etc., but I will briefly explain the holding situation of the color printing contest last year. The recruitment period was one month later than this year, from the end of June to the end of August. Awards are as stated.
The number of works submitted is as stated, and a total of 90 bridges were submitted. From elementary school and junior high school students to the elderly, there are also people who participated as parents and children. Applications from people ranging from Hyogo prefecture in the west to Saitama prefecture in the east.
Last year, the recruitment started about a month later than this year, so it is almost the beginning of summer vacation, so there is not enough time to encourage participation in school etc. It was after I thought about my summer vacation homework, so I didn't always participate in the junior high school and below.
For cooperation and support, we received a great deal of support from the news media, the Board of Education, and the educational foundation. Thank you very much.
Then, although there is a picture below, I have prepared a video, so I would like you to see the situation of the contest last year.

(Introducing the video of the contest situation last year)

Three works are exhibited there. The work in the front is the best work in the general section of the design section. The best work in the load-bearing section in the middle. Also, the back is the best work of the design department, junior high school students and younger. that's all.

 

(Chairman)

Thank you very much. I also looked at the 37 kg weight of the general load bearing section, but this is very heavy. I wonder if it will hurt my back if I do it in a roundabout way. I often thought that it would not be supported by such a light bridge. I am doing this with the support of everyone. I'm glad that everyone at school was able to recognize them.

Then, the next topic, "39 Tomei Campaign", this is what we have already announced. I think it's a good opportunity, so I will explain it. On May 26th, Tomei will celebrate its 39th anniversary in all. Therefore, we would like to thank our customers for their daily use of the "Thank You" Tomei Campaign. Our Yokohama Regional Head Office, Nagoya Regional Head Office, our subsidiary Nakanihon Exis, and our patrol company are working together, and on Saturday, May 24, we had a customer appreciation event on six service areas of the Tomei Expwy I will do it. In addition, as an ETC mileage point service, you can apply for it on the homepage or postcard during the application period from May 26 to June 30, and lottery 3,900 ETC mileage from customers who meet certain conditions We will give you 390 points. Then, at some restaurants and shops in each service area and parking area, some products are offered at a "thank you" price of 390 yen. We have the materials we have published so far, so please refer to them.

Finally, we will inform you about the CSR round-table conference. We have been holding “Environmental Roundtable” so far, and last year we made the first environmental report. From this fiscal year, we will Large develop this into a "CSR Report". The environmental report prepared last year is the base, but we are trying to summarize it from the perspective of how we will fulfill our social responsibility through our business to our stakeholders. In line with that, the name of the environmental conference was changed to the CSR conference. The environmental report was released in late August last year, but this year we plan to release this CSR report on the same day as the general meeting of shareholders scheduled for late June. The round-table conference will be held in Tokyo on May 30th. We will have a briefing after the round-table conference. Thank you.

That's all for my opening explanation.

 

(Moderator)

Then, thank you if you have any questions.

(Reporter)

We will ask you about the bidding system. From a bidder's point of view, is this new bidding system different from the technology proposal type bidding, which allows you to bid with your own technology?

(Chairman)

Let me explain this matter from an expert. Mr. Inokuma, please. General Manager of our Technology Development Department.

(Manager)

I have a question about how it compares with the technology proposal method, but there are two types that I have introduced today. The second of these materials, the construction technology competitive comprehensive evaluation method, is the one who receives the technical proposal, and the ratio is 50:50 with the price point. We will ask you questions in this technical proposal, but we will ask you for specific methods of erection, shortening the construction period, and consideration for the environment and safety. We believe that the bidders will receive technical suggestions from the content.

 

(Reporter)

Is it a common practice to adopt the technology proposal type in public works projects in a broad sense? Isn't this the first time or something like that?

(Manager)

We have been doing a comprehensive technology evaluation method since before, and we have also introduced this construction technology competitive comprehensive evaluation method from FY2007. However, as a special point this time, we had set a contract limit price up to now, and it was not allowed to exceed it, but there are situations where it will not fall, and we always assume it. Even if it is not a Standard construction method, if there is a good one, it will be adopted even if it is a little higher, so we have established a method that can contract even if the contract limit price is exceeded. You may.

(Reporter)

In that case, general contractors and others would form bids after forming a council to spread the technology. I think it was in the form of bidding with Standard technology, but I think it is easier to bid with unique technology.

(Manager)

Yes. We think that we can offer more and more unique technologies.

(Reporter)

Is it okay for your company to re-bid in the event of failure or failure, because the costs related to bidding have increased considerably due to re-integration, etc.?

(Manager)

Yes. The data also shows that the ratio is about 18%, but various preparations for rebids are required for those works. We are reviewing the points that should be reviewed including the total, and the current situation is that it takes procedural time and effort such as re-notification.

(Reporter)

Standard It is difficult to make a construction plan like Standard, but it is difficult to set the price. What kind of construction is applicable?

(Manager)

What kind of construction will be applied will be announced in future announcements. For example, it is difficult to formulate a Standard construction plan because there are multiple new bridges on existing roads. In a case where we can build it, we will consider a Standard plan by referring to past cases, but it is possible that there are new proposals that are not always done exactly. Also, at the toll booth, we are trying to establish an underground passage for safety, but it is necessary to construct while passing the car, which is a new type of construction for us, so it is difficult for us to make a construction plan. is. And although it is difficult to set the Standard price, the main assumption is to install it between the bearing, the bridge girder and the pier of the bridge, but this replacement work and the expansion device at the joint of the bridge It is difficult to set the price for things such as construction that need to be replaced while being transported. We also make various assumptions and calculate the amount, but if we conduct various surveys including hearings, it seems that the money may not be suitable for such situations.

(Reporter)

Please tell us if there are any characteristics by type of work regarding the status of failure/failure, and why the two types are separated by 2.63 billion yen. In addition, the number of failures/failures in fiscal 2007 more than doubled, is there any impact on the business plan?

(Manager)

Civil engineering work, steel superstructure work, road repair work, pavement work, and construction work were the most common types of work. The division of 2.63 billion yen is the number of divisions that may or may not be a general competitive bidding under the WTO and government procurement agreement. As I mentioned in the first question, there are situations in which we are re-biding, so there is a delay and time.

(Reporter)

Was the traffic volume affected due to the revival of the provisional tax rate for road-specific financial resources?

(Chairman)

The overall trend is as I explained earlier. It had a considerable impact on gasoline sales. Toll fees are generally within the range of assumptions. Although the traffic volume is increasing, I think the reason for the decrease in income compared to last year was that ETC was the most popular. I don't think the big causal relationship has changed. Sales of gas stations have fallen considerably. I think this is how we will recover in the future.

(Moderator)

If there are no other questions, we will end the 31st regular press conference.
Thank you for being busy today.

(Chairman)

Thank you very much.