October 02, 2007 Yano Chairman's second anniversary

1 Introduction

Hello everyone.
NEXCO CENTRAL Congratulations on the 2nd anniversary of the establishment.

On October 1, two years ago, the former Japan Highway Public Corporation was split and privatized, and the Company made a fresh start as a private company. Over the past two years, we have worked together to promote major changes in business content and business methods through privatization. I would like to thank all the employees for being confused by this rapid change, but having overcome this brilliantly and doing it really well.

2 History so far

Now, looking back, for half a year from the beginning of the establishment, we will demonstrate our independence as a private company, hold discussions with the country, and determine the routes and sections where our company will be the construction body. Expressway We have concluded an agreement with the holding mechanism that forms the basis of our business. At the same time, in April 2006, we formulated “Challenge V-Tomorrow's Tomorrow-” and our company truly started as a private company.
In fiscal 2006, based on this management plan, Expressway We have steadily advanced our business and related businesses. In the related business field, we established EXIS, our first subsidiary, and developed the business in earnest mainly in the service area business. Furthermore, we promoted the grouping of the four maintenance operations, and in October, two companies, Extor, were established. During this time, we have experienced the first financial results and the first consolidated financial results.
In this way, I think that the first year of establishment was the year of building the foundation of a private company while establishing unprecedented business model mechanisms and systems.
The second year was the year when we began to develop business in earnest on the foundation. I have been calling on you to become a “good company” and a “strong company” since you became chairman. In addition, for that purpose, five basic attitudes ---

—— I said repeatedly that I must continue these five.
I have ever been each Regional Head Office We visited the construction office and the maintenance / service center and exchanged opinions. While listening to honest and sincere opinions from everyone, the management philosophy of “good company and strong company” and “5 basic stances” I felt very reassuring that I was permeating.
And the results are beginning to become reality in various situations, albeit little by little.

The situation of 3 recent business

First of all, regarding the initial challenge II, based on the results of one year, new measures were added and the plan was completely reviewed through the PDCA cycle. In April this year, the “2007 New Management Plan Challenge V” was launched. Formulated.
In the Expressway business, following Chubu Odan Expressway(between Masuho and the Southern Alps) last December, Ken-O Road(Hachioji-Akiruru Noma) opened this June. . Between Masuho and the Southern Alps, the scheduled completion time can be advanced by three months, and between Hachioji and Akiruno, the opening ceremony can be reached by recovering from the delay in delivery from Ministry of Land, Infrastructure, Transport and Tourism. I'm done. This is the result of your efforts to "open early" and "reduce costs" with the cooperation of the local community.
In addition, pricing social experiments have begun to improve user convenience, such as eliminating traffic congestion, and TDM at Tomei Chuo Expressway and planning discounts for sightseeing have taken root as our own measures.
In terms of cooperation with local communities, smart ICs have been developed and are currently operating at six locations, but there are also plans to work on social experiments in the future, and we are looking forward to future developments.
In disaster recovery, I think we were able to fully demonstrate our “on-site capabilities”. Chuo Expressway was hit by heavy rain in Nagano Prefecture in July last year, and Seisho By-Pass was hit by high waves caused by typhoon 9 last month. , Together with Companies in our Group and local business entities, has been able to achieve early recovery through dedicated efforts and teamwork. I realized once again the problem-solving ability at the site, that is, the strength and strength of the field. Increase the labor of the stakeholders.
In addition, we have steadily implemented measures to develop convenience stores, cafe shops, etc., and to improve existing sales facilities in order to provide a service area that will please our customers.
In addition, for the construction of Daini Tomei, we launched the Daini Tomei Leading Project. At present, the entire company is discussing to consider the introduction of road transport systems utilizing the latest technology, advanced service and maintenance, the development of new rest facilities, and development projects that include the surrounding area. We are going to make a major direction this year.
One of the big topics of the past year has been "Hayaben."
“Hayaben”, packed with seasonal tastes in the area, was very popular with customers thanks to the efforts of the people involved. As a hit product that unraveled the needs of customers, many were featured in newspapers, magazines, television, and the media, and I think that many people had the impression of being an idea born of becoming a private company.
From a financing perspective, we obtained AAA (Triple A Rating and Investment Information Center) rating at the end of the fiscal year and issued the first government-guaranteed 25 billion yen bond after privatization. In this fiscal year, we plan to issue 50 billion yen as early as this month, and we are making significant progress in voluntarily procuring funds that do not depend on government guarantees.
A new measure is to enter overseas businesses.
We aim to cooperate and contribute to the international community through our overseas road business, and we are currently working on creating mechanisms and collecting information. Although it is still groping, it has been gradually producing results, such as participating in the research and design work of the Expressway construction project in Vietnam.
From the point of view of Internal Control , a five-headquarters system was established by introducing a headquarters system in the corporate division of the head office. In addition, we have built a risk management system to enhance and strengthen risk measures, and have been focusing on education and training to ensure thorough compliance.
In this limited time, it is very difficult to introduce all the achievements, but various measures have been progressing smoothly based on the "2007 New Management Plan Challenge V". This is simply the result of your everyday efforts, and we appreciate it as a result of privatization.

4 Future management policy

By the way, in the third year, I have no intention of changing “a good company and a strong company” and “five basic attitudes” even if the business environment changes. This is the principal of management, and I think it is most important for us to continue to penetrate it for the sustainable development of the company.
Based on this management philosophy, there are five points that we would like you to pay special attention to as "challenges" when conducting business for the third year.
The first point is "speed up".
As I have said repeatedly, every time there is an opportunity, we need to demonstrate our agility and flexibility in all fields and execute each measure at a high speed. To do so, it is important to act with the PDCA cycle and "quality, cost and delivery time" in mind.
The second point is "group management."
Just today, the "Central Japan Highway Patrol Nagoya" was newly established and is now a member of the Group. In addition, other maintenance companies are being enthusiastically grouped, and a group system for four operations will be established within the fiscal year. As the number of Companies in our Group increases, the importance of group management is further increasing. It is necessary to strengthen information sharing and cooperation through personnel exchanges and group meetings, etc., and to increase the overall power of the entire group.
The third point is "integrated operation of the organization".
It is very encouraging and grateful that Regional Head Office have been actively involved in related businesses such as the SA business and the card business recently. In July, we established an organization in charge of the related business in the Regional Head Office, but this is evidence that the soul has begun to enter with its form. With the help of everyone who supports the front line, I would like to develop related businesses as profitable businesses of the company. There are still many issues to be solved for the integrated operation of an organization. Some projects across the organization are one of them. Here is the key to the privatized company's dynamic development to make this a success. I ask you to cooperate beyond the organization.
The fourth point is "environmental efforts".
Initiatives for environmental protection are now a top priority in corporate activities for many companies. We also compiled and published an environmental report for the first time in August. With this opportunity, I hope that employees will once again raise their awareness of the environment and take action in all areas. "Environmental Initiatives" are our commitment to work as part of Corporate Social Responsibility (CSR).
The fifth point is "human resource development".
NEXCO Central Japan is a company where human resources are the greatest treasure and develop with human resources. We have been able to recruit new employees since last year, and the education and training system has been revised substantially to be suitable for a privatized company and to help employees develop their careers. The company's original strength is OJT, which nurtures people through work, and we plan to enhance OffJT. Needless to say again, the success of OJT depends on the manager's enthusiasm for training his subordinates. But keep in mind that the key is your will. In the thesis, there is also a saying, "I do not enlighten if I do not get angry, do not emit?", But it is most important for the person to get excited regardless of age, gender and position. I would like to take the time to develop human resources for the future of the company.

5 At the end

I have talked about our attitude toward the third year. I invite all employees and Companies in our Group to keep these things in mind in their workplaces and put them into practice.