NEXCO CENTRAL (Central Nippon Expressway Company Limited)




June 21, 2007 Chairman Yano's regular press conference

Conference Summary

(Chairman)

NEXCO CENTRAL Hironori Yano, Chairman and CEO

Hello everyone. In addition to the current state of our business, there are a few things I would like to report today, so I will explain each step in turn.
Before we first report the current status of the business, the Shimizu Bridge, where the Tomei Expwy managed by our company intersects the Nagoya Railway Mikawa Line, is where the concrete pieces of the bridge are located between the rails on the track. We apologize for any inconvenience caused and concern to the Nagoya Railroad and all parties involved.
Details are as announced yesterday, but we have already placed an order for concrete stripping prevention work on the bridge. We will start on-site construction next month.
In addition, in response to the occurrence of this event, emergency inspections will be promptly conducted in consultation with the manager at important intersections such as railroads, locations that may damage third parties, and approximately 6,100 locations within our jurisdiction. We will implement the necessary measures.
Above, I would like to apologize and report on future plans.

Now for the current status of the business, it is as per the materials you have.

First of all, it is the road business situation, but toll revenue is 1.0% less than the same month last year. We have been blessed with better weather than last year, but we think that we had some construction work at Meishin Expressway from May 21st to June 2nd, and we had a slight decrease in revenue due to that effect. The breakdown is 1.5% for high speed and 4.6% for general pay.
The number of passing vehicles increased by 4.0% compared to the same month the year before. The breakdown is 4.0% for high speed and 4.1% for general pay.
The difference between the toll revenue and the growth rate of the number of passengers is due to the increase in the discount amount due to the spread of ETC. By the way, the ETC discount amount for this month is 13.2 billion yen, and if there is no ETC discount, the fee income will be 64.5 billion yen. As a result, the ETC discount rate is approximately 20.5%.

The second is the status of construction. It is the same as those that will report the last time, but finally Ken-O Road opening of the day after tomorrow, was approaching in 23 days. The opening ceremony between Akiruno and Hachioji JCT will be held from 10:00, and it will be open from 15:00.

Regarding the contract rate of successful construction contracts for the main types of work, in May, the number was 4 and the successful bid rate was 80.65%.

It is the situation of ETC. The usage rate in June was 70.4%, which is a strong and flat level compared to the previous month. Looking at the breakdown, the trend of high weekdays has not changed, at 72.6%. Holidays are 64.0%. It is said that the usage rate is slightly higher on holidays, but it is still 64.0%.
The cumulative number of on-board units installed has slightly increased to 15.39 million.

SA sales were 98.6% year-on-year, down 1.4%. The food and beverage department accounted for 98.0%, the product sales department for 100.3%, the service department for 97.1%, and the GS department for 96.3%.

The above is the current state of the business. Here are some topics.

First, I would like to report that the business transfer to Nakanihon Extor Nagoya has been completed. As shown in the announcement material, this is a toll collection company, one of the two companies in Nagoya has completed the transfer of business from the existing company, and it will be fully operational from 1st July. I will. I was partially transferred on April 1st, but this means that the entire Nagoya area is covered.
A company called Extor also builds in Yokohama, and part of it was acquired in April, but it will be completed by the end of this fiscal year. I would like to make efforts to achieve this as soon as possible during the year. For the time being, the goal is to transfer the business during the year.
To recapitulate, the number of employees in Extall Nagoya will be 250 as of April 1, and will be 2,050 as of July 1.

Then Chuo Expressway and Kan-Etsu Expressway of connection, Ken-O Road is about the various services by the connection of. It is a joint announcement by the Ministry of Land, Infrastructure, Transport and Tourism in Eastern Japan and Central Japan, but it is not the same. One is 20 points of ETC mileage points. Although this has already been announced, today I am handing out a leaflet and I will do it like this. The other is the opening commemorative goods, and we are distributing materials with photos. I will do such things.

Next is the provision of TV programs. It is a document titled "Private Directions". Although it is a local station, TV broadcasting has started in June. Some FM radios have started broadcasting from April and the whole from May. The stations and broadcasting hours are as described here.

There is one more case, a Expressway bridge contest made from newspapers. I will explain this from the Nagoya Regional Head Office.
Introducing Inaba, Executive Officer and President of Nagoya Regional Head Office.


(Regional Head Office length)

Once again, I am Inaba, the president of Nagoya Regional Head Office. Thank you. Starting last year, we had everyone create a Expressway bridge using newspaper, and we planned a fun event like this, where we put weight on it and compete for weight. Many people participated.
Newspaper is surprisingly strong, and I would like you to understand that, so first of all, I made a sample, although it is a little larger. I would like you to see it first.

It's like this. I hope you can see it nearby. It is made entirely of newspapers and glued together. In terms of how much load it can withstand, I would like you to see how people are going on. Please.

新聞紙で作る高速道路(橋)コンテスト デモンストレーション

The materials are only newspapers, so I hope you can read the details. Thank you very much.
Now let's give you an overview of what the actual contest looks like. I hope you will see the materials at hand. This was the second time, as we conducted it last year. There were 88 applications last year, and the maximum load capacity was about 11 kg. Here are the works from last year.
This is the standard for building a bridge, but the length between the parts that support the bridge is 70 cm, and the material is only newspaper and the adhesive that connects it. The total weight, including the adhesive, is 100 grams. The load is placed in the middle part of the bridge.

Next is the purpose of the contest. We are Expressway is why are the center of the work, but the love in many ways on the road, I was thinking lot about and I would like you to have a familiarity. I thought that by making something like this, I would like to help that. In addition, newspapers tend to be read recently and thrown away immediately, but when I was a child, I used to wrap lunch boxes and other things. It is also a very important resource if you change the perspective. We chose the newspaper as a material that anyone can obtain, in the sense that we can convey to everyone the importance of valuing things.
The application period is from 21st June to 2nd August, 31st August. The competition will be held on September 22nd at Sakae Nadia Park. Contact information is described in the materials, so I hope you can apply here. that's all.


(Moderator)

Then, thank you if you have any questions.


(Reporter)

Regarding the acquisition of the business of Central Japan Exhaust Nagoya. I am the recipient of the business transfer, but please tell me whether these companies will survive after transferring the business including Yokohama. And what about the treatment of surplus? And while you are promoting the so-called family company as a subsidiary, I remember that in the past, security companies and other companies had entered the toll collection business, but it is difficult to make a new entry by making it a subsidiary. There is a fear that it will not happen. What are your thoughts on this?


(Chairman)

Each company has a different business. It means separating and leaving the company. We are proceeding with the plan on the assumption that we will contribute the surplus as originally planned.
As a company that plays an important role in the NEXCO Central Japan Group in the future, we will do it as a target of consolidated management, and people are the property. I think that the difficulty of hiring people will not change at all, and I would like to properly manage the number of people while responding to future changes in labor conditions. Since this is a business with a strong regional character, I think it has the effect of promoting local employment. Therefore, I think it will be necessary to work in close cooperation with everyone in the community.
We believe that all the problems of family companies will be resolved as we become a subsidiary.


(Reporter)

Since you are doing other business, it means that there are places where the company remains, but is there a company that will disappear due to this business transfer to toll collection subsidiaries in Nagoya and Yokohama?


(Chairman)

Let the president answer.


(President)

If you are doing the work to succeed the business and the company is doing business separately after this, there are places where you can continue the business, and there are places where you do it as a result of liquidation. There are various possibilities, but each company will make its own decisions, so we are in the stage of coordinating with the other party to ensure succession of the business.


(Reporter)

It means that you will contribute the surplus, but is it all right?


(President)

Contribution of surplus is 20% of the total amount. Originally, it was 10%, but there was a statement from the Minister of Foreign Affairs that 10% was not enough, so we requested that the other person take out 20%. Some companies are already in the process of obtaining consent and making contributions.


(Reporter)

What is the treatment when liquidating?


(President)

I don't know about how much assets will remain after contributing 20% of the surplus, since it depends on the company. Anyway, 20% is to contribute.


(Reporter)

I would like to ask the chairman, but in the answer regarding new entrants, there was a talk that I would like to work with the community. Is it an idea to have local companies enter the toll collection business?


(Chairman)

I don't think of entering a company. Rather, we are thinking of having local people participate in the form of employment.


(Reporter)

Regarding the question from the previous question, is it that you do not know which companies will disappear and which ones will not?


(Moderator)

At present, each company may have its own judgment, but it is not understood.


(Reporter)

As for personnel, it goes without saying that they will be directly transferred to the collection business.


(Chairman)

We confirm the intention with each and every one of us. People are transferred only to the so-called toll collection work, but of course the company's consent, but since we have obtained each person's consent, the transfer will be completed this time. is. It means that each company will decide on the remaining business.


(Moderator)

If there are no other questions, we will end the 20th regular press conference. Thank you very much.


(Chairman)

Thank you very much.