September 20, 2007 Chairman Yano's regular press conference

(Moderator)

Now we will start the regular interview.

(Chairman)

Hello everyone.
Before the regular meeting, I would like to apologize for the beginning.

I would like to take this opportunity to deeply apologize for the fact that our employees finally caused a property accident due to drunk driving on the evening of September 18. The outline of the facts is as announced yesterday, and the details are being interviewed today by the person calling at the Ichinomiya police station. Employees who are constructing and managing the Expressway, and who are in the position of administrator, drunk during the working hours and drove the vehicle means that customers who use the Expressway a daily basis, and everyone in the area I deeply regret that I was really sorry to all of the people and the people of the world.
Moreover, this accident is at the forefront of the penalties for drunken driving being strengthened by the revised Road Traffic Law, and when the fall national traffic safety campaign is about to begin tomorrow. I regret it.
The Company intends to promptly and rigorously respond to this matter by listening to the opinions of the Human Resources and Ethics Committee, which is composed of outside experts. At the same time, we are determined to make every possible effort to prevent recurrence, comply with laws and regulations, and enforce thoroughness of Tsunaoki.
By the way, today in the morning, I issued a strict notice to the whole company under my name. Going forward, we will strive to eradicate drunk driving thoroughly through our respective employee systems. In addition, early next week, we will thoroughly implement this in a meeting place where executives from all companies, including presidents of subsidiaries and affiliated companies, and candidates for president of a new company that will be created, gather together. I want to come.
Once again, we would like to apologize to our customers and all of our citizens.

Before entering the regular conference, if you have any questions about the current situation, I would like to accept it directly.

(Moderator)

So if you have any questions, please.

(Reporter)

I don't think there are some things I don't know about the details of this case, so I don't know what it is, but this time, I heard that it was an accident after drinking a lot of it during my duties. If there seems to be something addictive or malicious, please let me know. Also, please give us your candid comment again on drinking and accidents during this work.

(Chairman)

I do not know whether or not he is an addict, but a long time ago, he said that he had a little body damage due to alcohol and stopped drinking after that, in fact, after the incident, the scene I'm hearing from the person in charge. But I don't know the details beyond that.
As I said, it's a regrettable event, and I think we should do our best to prevent it from happening again. I think this is a basic matter for promoting compliance, which is the most important thing for the company, so I would like to thoroughly convey the meaning to the company and carry it out.

(Moderator)

Do you have any other questions?

(Chairman)

If you don't have any particular questions right now, I'll have a question and answer session later, so I'd like to ask a question there, is that okay?

Then, although there are some parts that I have announced in advance about topics etc., there are also contents that I will explain for the first time today. There are many projects today, and I'm really sorry, but I would like to take your time.

First of all, the current situation of the business, but the fee income in August was minus 0.4% compared with the same month of the previous year. High speed is minus 1.2%, general pay is plus 8.9%. Passenger cars increased by 4.4% compared to the same month the year before. The breakdown is +3.8% for high speed and 6.9% for general pay.
The difference between the toll revenue and the growth rate of the number of passing vehicles is the same phenomenon as every month, but it is due to the increase in the toll revenue discount due to the spread of ETC. The total ETC discount amount for August was 15.1 billion yen, an increase of 12.1% from the same month last year. Partly because there were many users, the ETC discount rate was 19.5%. This is in contrast to toll revenue without the ETC discount.

The construction situation has not changed from the previous month. Later, I will explain the topics of the construction business and maintenance service business again.

The percentage of successful contracts for construction contracts for major works is 85.44% in August, and the cumulative total for the year was 84.70%.

Next is the situation of ETC. It is 72.3% from September 7th to 13th. A month ago, it was just the height of the Obon Festival, and the usage rate was low at this time of year, at 62.0%. It is 72.3% in September, but it is 75.0% on weekdays and 65.5% on holidays. Although the situation is similar to that of August, except for August, we believe that the overall ETC usage rate is increasing.

SA sales have fallen considerably by 87.5% year-on-year. The cumulative total for the year is 97.0%. The reason why August was low was that the gasoline sector was 64.8%, and the price difference with the city was large last August, and there was a special situation where cars rushed to the gas station on the Expressway was. The food and drink department alone accounted for 99.4%, the product sales department 103.2%, and the service department 98.0%. The above is the current status of the business.

The second is the information about the second Tomei groundbreaking ceremony. I think you are handing out the documents in the name of the Nagoya Regional Head Office, but the groundbreaking ceremony for the second Tomei area of Aichi Prefecture will be held from 10:30 on November 11. We would like to inform all reporters who would like to be interviewed on the day, so please contact us in advance. I would like to confirm the detailed contents in the attached materials, but if you have any questions, I will accept them later.
In relation to construction, we are also announcing an event on September 30 called "Shin-Tomei Expressway construction site walking". This is a project planned by JR, but in a broad sense it is one of our 2nd anniversary events. I will explain the 2nd anniversary event together later.

The third topic is our approach to the "Fall 2007 National Traffic Safety Campaign". The subtitle is "Notice for high-speed driving!!", but the content is as per the materials you have. With the safety campaign being held nationwide from 21st to 30th, I would like to call on all seatbelts to be worn. In addition to this, Regional Head Office has its own menu for traffic safety awareness.
Forty-eight caution points for high-speed driving were decided in consultation with the police. It is intended to widely notify customers through the homepage and guides so as to call their attention.
We are holding traffic safety campaigns in various places every Regional Head Office, and we are encouraging safety awareness with information provision equipment, trying to wear seat belts on all the road information boards, Highway Telephone and posters I am thinking about various things. We will inform you about 48 caution points on the guide and homepage, but as we can see here, if you can raise a little caution by letting as many drivers as possible know it, it will be I think that will significantly improve road safety.
Regarding posters, not only our own, but also other Expressway companies, Cabinet Office, Ministry of Land, Infrastructure, Transport and Tourism, we are making attachments, and examples of homepages are for various places I understand.
Some of the efforts by Regional Head Office have been done before, but the fallen object prevention PR using the highway bus of Yokohama Regional Head Office has been implemented from July of this year. .. Hachioji Regional Head Office The Expressway driving point for silver drivers has been implemented since 2005.
Nagoya's Regional Head Office initiative is a new initiative, and we have started calling for it around the middle of last month. It's about delivering a traffic safety seminar. The tutor fee is free, and I will visit and explain anytime, anywhere. We are soliciting for requests from various places such as schools and neighborhood associations, and we are currently receiving several inquiries, so I think it will be realized. Also, Kanazawa Regional Head Office had a hard time because of heavy snowfall in the previous winter, so I made a "careful map" in the winter before, but because it is warm, it will not be very active. I didn't, but I would like to continue working on this winter.

Next is "Efforts to alleviate congestion when the 2007 F1 Grand Prix is held." The F1 Grand Prix is scheduled to be held at Fuji Speedway at the end of September. The 28th is the practice day, the 29th is the qualifying, and the 30th is the final, so a considerable number of people are expected, so at Ashigara SA adjacent to Gotemba IC, directly targeting specific F1-related buses It allows people to come and go and come to the venue. In the rail & ride method, JR Shin-Fuji Station and Odakyu Shin-Matsuda Station, and in the Park & Ride method, an off-site parking lot is created outside the Numazu IC, and buses move from there. The tour bus is another thing, and it goes through the Tomei Expressway. If you go out of Gotemba IC and go to the speedway, there is no place to stop the bus, so we will do this. The method of park and ride has been used in various places such as Ise Jingu, so I'm thinking of making use of that idea here to help alleviate congestion.

The 5th is the new product of "Hayaben" autumn, which will be released from September 22nd, next Saturday. There are 4 new products and 4 price changes, as shown in the list. I am grateful that the number of people who can buy the speed dial valve is not limited to the collapse of the name. The landlady who cooks food is also very enthusiastic, and I am eager to use it more and more, so I will introduce it.

The sixth is the current status of becoming a subsidiary. We are currently in the process of reorganizing maintenance operations into a group subsidiary. I will occasionally explain it here as well, but I have repeatedly said that we will make it a subsidiary and transfer operations during the current fiscal year, and that we will do it during the current fiscal year, but it is starting to grow little by little. ..
First, we will establish a company called Central Japan Highway Patrol Nagoya on October 1st and start operations. This is the first subsidiary of a traffic management business.
Another, this is a well-established company, but it's Central Japan Extort Yokohama. This is because we started a company in October last year and have actually started operations on Chuo Expressway etc. from April 1st, but after receiving a new transfer of one company's business, this October Start business. It means that the content you are working on gradually expands.
As a whole, we plan to reorganize the operations of the 30 main companies that carry out 4 maintenance operations into 10 subsidiaries. If you look at the attached materials, 1 is Nakanihon Highway Patrol Nagoya, and it means that 390 employees will do it. And in Central Japan Exhaust Yokohama, one company joined from October 1st, and it has a system of 600 people. There is still one company left, and I am planning to receive the transfer during the current fiscal year, but since that company has about 550 people, it means that when all of them gather, it will be about 1,150 people. Then, Appendix 3 shows the breakdown from 30 companies to 10 companies. Of these, the companies surrounded by bold lines have already been established or are scheduled to be established in October. I would like to make one note regarding other points, but regarding the maintenance and inspection work, I was planning to go with one company at the press conference in January, but I could tell that there may be two companies system depending on the situation. However, after various examinations, I decided that the scope of one company was too wide, so I decided to go with two companies, Tokyo and Nagoya. Therefore, toll collection, traffic management, and maintenance inspection are done by one company each. From the idea that higher regional degree of adhesion is more of maintenance and repair, policy as expected from the original Regional Head Office 4 in units Divide into two. It means that we will have a total of 10 companies. I would like to proceed steadily.

The seventh is the 2nd anniversary event. We are going to do it mainly from 6th to 8th of October, but the main venue will be "Oasis 21" in this city, which will be held for 7 days and 8 days. Other SAs are planning to hold various events on a Regional Head Office basis, and the specific plan is written on the attached sheet. However, in "Oasis 21", two days such as 7th and 8th are used for such talent. I'm going to get them to do it, and I'll do what I showed in the material at the main SA of each Expressway that will be the satellite venue. We will hold various other events as well, and we will omit detailed explanations, but we would like to make our users and citizens familiar with our situation again at the second anniversary.

The eighth is a bid status report for the construction technology competitive comprehensive evaluation method. This is 5I announced it on the 14th of March, but I will try such a method on a trial basis, that is, make a public announcement as shown in this picture, perform a technical examination, and bid for those who got a certain score or more there We will give you a comprehensive evaluation. In that case, the technical evaluation score is half and the price evaluation score is half, and the system is such that both are combined to give a score.

What actually happened is described in the “Attachment Bid Results”. Up to now, there have been 6 projects that have completed bidding, but 2 of them are under low bid investigation or technical proposal discussion, so we will report the results of 4 bids today. In both cases, items for shortening the process have been set as technical proposal items for construction, and the weight has been increased. For example, regarding the second Tomei Expwy Nakanogo viaduct construction at the bottom of this table, the company that submitted a technical proposal to shorten the process by 240 days compared to the Standard construction period of 1,650 days has a high technical evaluation. The result is that I got points. As you can see by looking at this table, looking at the comprehensive evaluation score including the price evaluation score, the highest scorer of the technical evaluation score is 2 in the upper and lower integrated work and 1 in the PC bridge upper work. It became a successful bidder. In one steel bridge superstructure construction work, the lowest price presenter is the winning bidder.
Since there are still few participants in the first half of this fiscal year, we would like to continue trials and evaluate the situation.

Finally, regarding the planned discount, this is already announced on September 7, and I am handing it out today just in case, but with a weekend free pass in Hokuriku 3 prefectures Lake Hamana Kanzanji hot spring discount plan. The 3 prefectures of Hokuriku are going to do it in 3 days, and the discount is 44.1%. Lake Hamana is a project affiliated with JTB, and this is the first time we have been affiliated with a travel agency to offer discounts.
I would like to continue to think about various things in the future, but it seems that the planned discounts that we are doing are gradually beginning to be known, and in recent examples, the number of accepted cases has exceeded 1,000. Is coming. For example, Fuji Tour had 1,500 registrations. Shinshu has about 1,050 projects. I'm wondering if it's gradually becoming known. I would like to give back to customers in this way as much as possible, so I would like to announce it whenever a new project comes out.
It's been a long time, but that's all for my explanation.

(Moderator)

If you have any questions, including the initial report, thank you

(Reporter)

About Fuji Speedway. The main roads in the vicinity of this circuit are poor, and congestion is expected every time it is held, but I have heard that the second Tomei pass near this Fuji Speedway. It is not something that can be done only by Central Japan Expressway, but I think the role played by the Second Tomei Expressway in accessing the Fuji Speedway will grow. What are your thoughts on efforts to reduce congestion?

(Chairman)

I haven't made any clear decisions for F1 yet. Since it is held once in a while, for example, we can't always keep the SA opening open, so I'm still thinking of a useful method in case of trouble. This is not limited to F1, but as I introduced a little while ago, there is a New Year's visit to Ise Jingu. We had a park and ride for 3 days this year. The effects have been extremely effective, and Ise Jingu's Omiya Tsuji and Ise Mayor are very pleased, but from the 4th day when it was finished, it was very crowded. There was a question that I couldn't do it, and I'm currently thinking about it. There are similar events in various places like this, and New Year's Day is like an annual event, so I can predict it, so I would like to work with the locals so that it can be useful in such places. I will.

(Reporter)

I would like to confirm with the matter you mentioned at the beginning, but please tell us what you want to ask specifically about the contents notified to employees today and when do you think about disposing of it later?

(Chairman)

What I published for the company today was posted on the company-wide bulletin board on the intranet. Do you have a copy? Then please give me a little.
Since it is an in-house document, it says that it is quite tough, but I think that the purpose can be understood.
Then, although it is a disciplinary measure, I think that the police's interview will be over, so I will listen carefully and it is our own investigation, but this is also being advanced, but after further thoroughness, the Human Resources and Ethics Committee I want to open it as soon as possible and make a conclusion. I haven't been prepared to say what time it will be, but I'd like to show the attitude of the company in less time.

(Reporter)

Regarding the reorganization of the Companies in our Group, it is said that you are currently proceeding with the goal of the end of 2007, but of the 10 companies that can be reorganized, can you tell me something like the process of the company that will be established in the future? Or?

(Chairman)

I established the Central Japan Highway Patrol Nagoya this October, and I think that the following will come together during the first three months of the year. This is a story of the other person, and at this stage we have our own hope, but it is not certain that we will do it at any point, so please do not bother me a little. Therefore, I cannot announce a clear date. In any case, however, it will be completed by the end of the fiscal year, and the business will be transferred to create a system that enables group management both in name and reality. Depending on the company, it is possible that the company started after the business transfer will be on or after April 1. Even if the company's system is established within the fiscal year, I think that it will be the next fiscal year that the system will be completed in this fiscal year and the content of consolidated management will be enhanced and consolidated financial statements will be made. Also, I would like to make an announcement as it becomes concrete.

(Moderator)

Unless you have any other questions, the 23rd regular press conference will end.
As I mentioned earlier, Chairman Yano will give an instruction to employees at this venue from 9:30 am on October 1st, the second anniversary of the company. We are pleased to inform you that this pattern will be open to the public.
Thank you for being busy today.

(Chairman)

Thank you very much.