January 26, 2011 Kaneko Chairman and President Regular Meeting

(Moderator)

Thank you for waiting. The 63rd regular press conference is about to begin.

 

(Chairman and President)

Today we have 6 topics in total. First of all, I would like to ask questions from everyone.

First, let's talk about the current state of the business. Fee revenue in December was 37,913 million yen, down 1.8% year-on-year.
By breakdown, high-speed trains were 35,290 million yen, an increase of 0.4%, and monotsuchi were 2,623 million yen, a decrease of 23.9%.
On the other hand, the average number of traffic in December was 1,927 thousand units, an increase of 14.0% year-on-year.
The breakdown is that the daily average for high-speed vehicles is 1,448,000 units, an increase of 8.1%, and for Hirate is 480,000 units, an increase of 36.4%.
In terms of the number of passing vehicles, in addition to an increase due to free social experiments centering on general toll roads, the number of toll sections such as highways has also increased compared to last year, resulting in an overall increase of 14.0% compared to last year.
On the other hand, fee income was negative compared to last year due to the impact of the free social experiment.
The ETC discount amount for this month was 28.8 billion yen, an increase of 7.6% compared to 26.8 billion yen for the same month last year. The discount rate is about 43.2%.

Next is the construction situation. Mei-Nikan Expwy, commonly known as Mei-Nikan Expressway Nagoya-minami JCT-Tak Needle JCT, which we have been constructing, is expected to be open on Sunday, March 20th. Details will be explained later.

Next is the usage of ETC excluding the free social experiment section. The most recent daily 1/7 to 1/13 was 5.5% lower than 12/3 to 12/9, but the daily average occupancy rate was 88.7% to 89.4%, up 0.7%. I will. By weekday, the average usage rate on weekdays was 88.8% to 89.3%, an increase of 0.5%, and the average usage rate on weekends and holidays was 88.5% to 89.5%, an increase of 1.0%. doing.
The cumulative number of vehicle-mounted devices installed at the end of December increased by 0.9% compared to the end of November, increasing by 290,000 units to approximately 33.37 million units.

December service area sales were 12,650 million yen, 113.2% of the previous year's level. By road, Higashi-Meihan Expressway was particularly strong with 145.4% and Kisei Road 135.9%.
Higashi-Meihan Expressway believes that many customers used the EXPASA office at the time of returning home during the year-end and New Year holidays, and Ise and Kiseido are thought to be the effects of the free social experiment.
By sales, the “Food and Food Sales Division” increased 113.1% year-on-year to ¥ 1,031 million.
A further breakdown of the “Food and Beverage Sales Division” is that the “Food and Beverage Division” increased 112.9% year-on-year to 329 million yen, and the “Food and Sales Division” 112.7% year-on-year increased to 702 million yen. It has become.
Subsequently, in the “service sector (rest in, bath)”, it was 97.4% down from the previous year, down 1 million yen. In the “GS division”, the refueling volume was 110.8% year-on-year, exceeding the previous year's level, and the unit price difference was also +7 yen, so sales were 117.2% year-on-year, an increase of 448 million yen. I will.

The second topic is about the Wakasaji Highway Campaign from February 1st to May 15th.
This campaign is part of a comprehensive alliance agreement signed with Fukui Prefecture, and attracts guests to the Wakasaji area, which is associated with the three Asai sisters, and is used on the Expressway which was talked about in this year's taiga drama "E ~ Princess Warring States". For the purpose of promotion, "leaflet" with stamp rally postcard, which is a common complimentary ticket that can be used at 70 special facilities including 4 service areas and parking areas and special products of Wakasaji, is provided for each service of Expressway It is distributed in the area.
In this area, there is an anecdote of Kanesazaki Castle that is said to have been the topic of this year's taiga drama, the mother of Ichi Asai's three sisters, Ichi, and Ichinobu Oda's brother Azuma Nagamasa's betrayal. , The first Bodhi Temple, such as "Jokoji Temple", is a place that is very associated with the three Asai sisters. In addition, "Echizen Gani" and "Wakasa Fugu" are the specialty products and are in season.
By all means, we would like you to take the Expressway to a walk around the area associated with the three Asai sisters, and to enjoy gourmet food, go to "Wakasaji".

As for the next topic, I would like to explain to you again about the "Integration and Strengthening of Overseas Business" that was announced on the 24th. So far, we have been coordinating with each company regarding the joint system of the four companies in the overseas business, but the preparation room will be set up on February 1st. In the future, the Preparation Office will formulate business plans for new overseas business companies and prepare for their establishment.
The outline of the preparation room and the purpose of establishing the new company are described in the materials. In order to promote the overseas business as an all-Japan company with a joint system of four companies, we will consider it with a sense of speed and continue to inform everyone of the situation at a turning point.

Next is the fourth topic.
Announced on January 13, "Mei-Nikan Expressway for the opening of (cans to the niece)", we will explain again. Please see the press release materials and the opening brochure.
The construction of the Mei-Nikan Expwy, which has been under construction by the Company, commonly known as "Mei Niwa Mei-Nikan Expressway", 12.7km between Nagoya-minami JCT and Takanee JCT is expected to be open on Sunday, March 20.
In accordance with this opening, Higashi-Meihan Expwy of Nagoya-nishi also Takabari JCT between about 30km from JCT, Mei-Nikan Expressway and change it to.
Also, due to the extension of the service opening, we will revise the charges for Meikan. This time, we will set a charge according to the distance, considering the fairness of the burden between customers.
For example, for the ETC car ordinary car, Mei-Nikan Expressway 500 yen in the case of less than use distance of 30km, in the case of more than 30km will be 600 yen. In addition, for the ordinary car of cash vehicle or the like, from the inlet Mei-Nikan Expressway 500 yen If the available distance is less than 30km, in the case of more than 30km will be charged 600 yen at the entrance toll gate.
For more details, please refer to the attached materials.
In addition, to celebrate the opening of the event, a "PR event before opening" sponsored by NEXCO Central Japan at Kariya Highway Oasis on the 19th of next month. The Nagoya City "Mei-Nikan Expressway Yume Walk" will be held on March 6th, so we hope you will join us.

Followed by the Mei-Nikan Expressway will introduce the topics related to the environment.
Since the section to be opened this time has many residential areas in the vicinity, a sound insulation wall that reduces the sound from the car, a back surface sound absorbing plate that reduces the reflected sound from the back of the viaduct, and a special sound absorbing louver in the cut section are installed, We are working to preserve the living environment for everyone along the road.
Next, for the use of natural energy, about 14,000m of solar panels were placed on the louvers in the excavation area. ² , Extended for about 6km.
We will use solar power for lighting the excavated section to reduce the environmental impact.
Annual power generation is approximately 2.18 million Kwh, CO ₂ The reduction effect is about 925 tons per year, about 87ha in forest conversion, and equivalent to about 18 Nagoya Domes, which covers about 40% of the electricity consumed in this section. The effect of reducing electricity bills is estimated to be about 35 million yen per year.
Then, using the transition between the trench and the bridge, CO ₂ We have greened the walls with the aim of fixing the vehicle and improving the driving landscape. About 3,200 green plants were planted on the fern and ivy.
Also, during the construction period, we worked to protect the living environment of everyone around us by installing sound insulation walls, adopting low-noise and low-vibration construction machinery, and taking measures to prevent dust from sprinklers.
We will continue to contribute to the environment and a sustainable society through the development of Expressway networks.

Lastly, I would like to talk about the winter Expressway snow road information service.
This winter, there is a lot of snow mainly on the Sea of Japan side, and during the year-end and New Year holidays, it was heavy snow in the San'in region and Kyushu region, which was unprecedented, but from January 16 to 17 the other day. As the Japan Meteorological Agency announced, it recorded 11 centimeters of snow in Nagoya, and there was heavy snow in the Pacific region around Nagoya.
At Tomei Expwy, Higashi-Meihan Expwy, Isewangan Expwy, and Tokai-Kanjo Expwy, which are managed by our company, there was a road closure due to snow, and we apologize for the inconvenience.
When there are road closures due to snow and tire restrictions for winter, we receive many inquiries from our customer center.However, we use the snow road information of winter Expressway on the Internet and mobile phones. We have opened a website called "Yukiiro.com". In addition, traffic information is also announced using information provision tools such as iHighway and Highway Telephone.
For details of "Yukiiro.com", we have handed out leaflets. The leaflet has a QR code of the mobile site, so please try it once. We also have a computer on the back, so please take a look at the contents of the site when you leave.
Last but not least, as mentioned in the leaflet, at Expressway in winter, we ask that you prepare winter equipment such as studless tires and tire chains for safe driving. The above is the topics prepared for today.

 

(Moderator)

So I'd like to take your questions.

(Reporter)

Regarding the overseas business, the story of the new company has been talked about for a long time, but I do not understand the merit of the new company. I understand that you cooperate and cooperate in ordering, etc., but in Vietnam, your company is ahead of other companies. How do you think the benefits will come out, and how do you think about that?

(Chairman and President)

From the end of last year, December 26th to 30th, I went to Vietnam and had a chance to visit the site and meet local government officials. I felt various things in that, but the local demands are very diverse. This is three companies than we do one company, in some cases we use each of the three companies' specialty fields, this time it is not three companies but four companies including the Metropolitan Expressway, we are NEXCO, cities between cities. I think it would be more convenient to utilize the experience of Shutoko within the area, and of course it is not only convenient, but I think it would be advantageous for actually doing business. In any case, the intention of this time is that it is easy for not only Expressway but also other institutions to set up an all-Japan system including the government when we actually go out with the three companies on the Metropolitan Expressway. .

(Reporter)

If so, is it easy to say that there is also a technology of the Metropolitan Expressway as a sales talk?

(Chairman and President)

That's right.

(Reporter)

If you received an order from a new company, what will happen to your back to Central Japan?

(Chairman and President)

This time, we will establish a preparation room on February 1st, and hope to establish the new company by the end of the year. In the meantime, the preparatory office will be specialized in preparing to create a new company. For example, what we have been doing in Central Japan and Vietnam until now is that we will actually do it. think. In the future, that may mean a move to a new company.

(Reporter)

Isn't it just when a new company is established?

(Chairman and President)

I don't know yet. As for the direction, as I have just mentioned, I would like to consider depending on the situation at that time.

(Reporter)

What happens when?

(Chairman and President)

This also depends on the situation at that time.

(Reporter)

You said that you went to Vietnam at the end of the year and met an important person. How do you feel about the achievements of the president?

(Chairman and President)

There are two. We visited two sites in Hanoi, which we are targeting now, and Ho Chi Minh, which could be a target in the future. From a business perspective, I got the feel that it was sufficient. One is from the viewpoint of traffic volume, the other is the existing road itself, and the other is that Vietnam already has the custom of running on a road for a fee.
I also talked to the top government officials. Specifically, we talked about the plans we are thinking about and got their approval. However, I think there are a number of issues, and I think we have to work on them. I think that I was able to exchange opinions frankly with the top MOT in Vietnam.

(Reporter)

Actually, it means that the request was made by the other party, what kind of content is it?

(Chairman and President)

There are many, but the biggest is the financial aspect. I was told to present my plan. I think we will have to work hard from now on. NEXCO Central Japan has a large road cost and risk when it comes to overseas road business. I think the future challenge is how to disperse this risk, and the most important issue is how to raise funds.

(Reporter)

What is your feeling about the schedule of the business that is drawing attention in Vietnam?

(Chairman and President)

Our road construction plan is almost complete. One issue is how to launch this locally. The other is financing. This is a coordination with the domestic and government, but I would like to proceed as soon as possible. We will continue to talk about this both domestically and internationally, but since there are rivals overseas, we would like to proceed as quickly as possible.

(Reporter)

Where do you think your competitors are in other countries?

(Chairman and President)

The first is Korea. Although we are not targeting South Korea at the point we are currently targeting, we are developing land like a diperoper around Hanoi / Ho Chi Minh City, so I think it will compete somewhere in the future.

(Reporter)

I think that there are various frameworks such as PPP for financing, but do you have any requests or requests to the country?

(Chairman and President)

I can't talk about the details in detail, but I am talking about it.

(Reporter)

This means continuing to talk with both domestic and overseas, but is this talking to financial institutions both in Japan and overseas in terms of financing? .

(Chairman and President)

We are talking about government financial institutions.

(Reporter)

Do you include overseas funds?

(Chairman and President)

Regarding funding, there are currently no overseas markets. First, we are in the process of solidifying our foothold in Japan.

(Moderator)

So, if you have no other questions, this will open a regular meeting. Thank you very much.