April 25, 2007 Chairman Yano Regular Press Conference

(Chairman)

Hello everyone.
I would like to start with the current state of the business. In addition, there are several topics, so I would like to explain them one by one.
As for the business overview for March, the fee revenue is 52.9 billion, 96.6% compared to the same month last year, minus 3.4%. This is the discounted time zone Large I think that the effect of. The number of traffic on average is 1.17 million daily, an increase of 1.6% year-on-year. We think that the increase in the number of cars is also a trigger effect of discounts for time zones. Both high-speed and general toll roads have similar trends in tolls and traffic. Expressway The fee is minus 3.2% and the general fee is minus 5.4%. The number of traffic Expressway Is 1.7%, and general toll road is 1.2%.
Although this is the cumulative total for the year, this is still a preliminary report. The final value will be settled after some time, but the fee income is 610.3 billion yen, minus 2.0% from the previous year. The average number of traffic per day is 1,651 thousand, an increase of 2.7%. Each cause can be analyzed in the same way as in March. Breaking down the number of traffic by year, the highway is a positive 4.0% and the general toll road is a negative 2.6%. General toll roads decreased due to the free use of Toyokawa Bridge, Yuzaka Pass Road and Manazuru Road, and transfer to the public corporation.
Then, to explain supplementarily how much the ETC discount was made, I said that the fee revenue was 52.9 billion yen in March, but if you add the discount amount, it will be 67.4 billion yen. In other words, the discount amount is 14.4 billion yen, which means that the discount rate is about 21%. For the year to date, fee revenue is 610.3 billion yen, but the discount rate is 765.2 billion yen before the discount and 154.9 billion yen for the discount amount, approximately 20%. I think that this trend is getting stronger with the spread of ETC.

Next, regarding the construction status, the opening schedule for fiscal 2007 is 9.6 km for Ken-o Expressway and Ken-O Road, and 25 km for Tokai-Hokuriku Expwy between Hida Kiyomi and Shirakawa.
In addition, as already announced the other day, the name of the second Meishin scheduled to open in the spring of 2008 has been decided as "Shin-Meishin Expwy" after its opening.

This is the contract successful bid rate for the main types of work, but the successful bid rate in March was 84.85%. The cumulative total for the year was 82.13%.

Regarding the status of ETC, the usage rate for the latest period from April 13th to 19th is 70.3%, which is an increase of 1% compared to the previous month from 9th to 15th. It ’s about 70% in total. Breaking down, it is 73.3% on weekdays and 62.5% on holidays, so if you do not increase the usage rate of holidays, I think that you can not expect a significant improvement in the usage rate in the future, how can I increase this? I think that will become a future issue. The number of setups is 14.77 million.

As for SA, sales were 11,091 million yen, 98.6% of the previous year. The cumulative total for the year was 139 billion yen, an increase of 5% from the previous year. We said that sales were 98.6%, but the food and beverage, product sales, and service sectors exceeded 100%, but the gasoline sector fell to 92.5%, and overall, it was 98.6%. By the way, the food and beverage department is 100.7%. Among them, the restaurant corner decreased to 96.5%, and the snack corner increased to 101.8%. Product sales department is 100.9%, service department is 105.7%.

The above is the current state of the business.

The next topic is the Large of the service of # 8162 on Highway Telephone. We have provided the materials at hand, but from today we have unified the Highway Telephone number to "# 8162". Highway Telephone currently receive an average of about 5,000 calls per day. Until now, "# 8162" was available only in some areas, but now it can be used throughout our area. If you use the conventional Highway Telephone number and station number and use "1620" at the end, you can continue to use it.
The scope of information provision of “ Visual Highway Telephone ” on page 7 on the next page of the document has been Large this time.

Next is the expansion of home delivery services in SA and PA. This is to start the home delivery service in almost all SAs and PAs operated by Central Japan Exis from April 27. Of the 131 locations currently operated by Central Japan Exis, we will handle them at 128 locations. In the remaining places, we will implement them sequentially. Also, when sending local specialty products by Yamato Takkyubin, the price is much cheaper than the area's own fee system and the general agency fee system.

Next, we have no material, but we report that we have started an FM radio program. This is a materialization of the items described in the revised version of the 2007 new management plan “Challenge V”. From April 12:00 noon every Saturday at FM Aichi, music and seasonal driving spots Started a program to introduce. The title of the program is "NEXCO Central Japan Lovin'Drive". From May, we plan to offer FM radio programs in all regions under our jurisdiction.
Also, a mini TV program on the subject of traveling by car is scheduled to start broadcasting in June and is currently under preparation. I think we can report it when it takes shape.

The fourth topic premium Drivers' and did those that card members-only campaign, but I think that has been handed out a brochure to your hand, make a campaign referred to as the spring of SA · PA happiness campaign in the members-only. Premium in the period from April 28 to May 31, Drivers' when it is 1,000 yen or more shopping per at Edy cards, to present 15% of the available amount in Edy, a service called is.

Next is the plan discount. One is the Tomei GW night discount. This was announced on April 6th, and from April 28th to May 6th, the night time zone was discounted by 50% to alleviate the traffic congestion that led the vicinity of the Yamato Tunnel in Tomei. It is a plan to do. On New Year's Day, January 2, 3, 4 and 3 days were held. It is called TDM, Traffic Demand Management, and traffic demand management. Regional Head Office I think the chief came here and explained. In that case, I would have said that it was 1 win, 1 loss and 1 division in 3 days, but this time I would like to take a longer period. I think that there will be an effect of alleviating traffic jams, and of course there may be cases where the effects cannot be measured if there are sudden accidents, but if you try to do it, it will soon be in the implementation stage.
The other is the Fuji Tour Weekday Drive Campaign. Announced on April 10th, this is a gift of 300 mileage points, and local special products will be attached by lottery.
Another. This was announced on April 16th. The ETC weekend free pass in the three prefectures of Hokuriku, which has been implemented before, will be extended from the viewpoint of supporting the restoration of the recent Noto Peninsula earthquake. Regarding this point, together with the situation of regional support for NEXCO Central Japan in the event of the Noto Peninsula earthquake, Regional Head Office I would like to report from Nagano Hino. Mr. Hino, thank you.

(Regional Head Office length)

This is Hino of Kanazawa Regional Head Office. Regarding the restoration support for the Noto Peninsula earthquake, I would like to explain according to the materials at hand.
The outline of the earthquake and the state of our roads were as follows: The earthquake occurred at 9:42 on March 25, the epicenter was off the coast of Noto Peninsula, the magnitude was 6.9, and the strongest was Noto in Ishikawa Prefecture with a seismic intensity of 6 or more. . Other seismic intensities are as described.
Regarding the situation of our roads after the earthquake, we immediately closed the road between KanazawaNishi IC and Toyama IC between Oyabe JCT and Fukumitsu IC after the earthquake. Since there were no abnormalities, we closed the road at 11:15.
The following is an overview of NEXCO Central Japan's recovery support from the disaster to today.
First, for one month from the day of the disaster, the government provided free rescue vehicles free of charge, and took measures to free vehicles that carry relief supplies. This has been extended until the end of May. This applies to all sections of all toll roads nationwide. By April 23, there are approximately 630 units handled within the Kanazawa Regional Head Office.
Secondly, we received a request from Ishikawa Prefecture, but a water flow test was needed to quickly restore the water supply cutoff point of the water pipe. We needed water suitable for drinking for water flow, so we supported one 10-ton sprinkler truck that could carry drinking water. There was no sprinkler for drinking water in the Kanazawa Regional Head Office, so it was immediately borrowed from the Nagoya Regional Head Office and played an active part in water tests during the nine days from March 30 to April 7. Because of this, I would like to upgrade to a vehicle that can handle drinking water when updating the watering truck at our Regional Head Office in the future.
The third is fundraising activities in the service area. In the service area with all information, we accept donations from people who use the Expressway.
Fourth, the reputational damage caused by the earthquake disaster, the start of tourists, or reservations, etc. were greatly affected, and we wanted to provide some kind of support to them. You. The ETC weekend free pass, which was initially until April 16, has been extended to May 21 beyond the consecutive holidays. During consecutive holidays, it can be used on any day of the week for two days regardless of Friday, Saturday, Sunday and month. Additional recruitment etc. is going well. After April of 14 days, to 15 days Hokuriku Expressway"in Hokuriku Expressway but gave a event called Spring Festival", where Hokuriku three prefectures of tourism PR of flyers and road Distribute something like recovery situation can be seen in the did. At the same time, a signboard stating “Noto is in good business” will be posted on all SAs from April 14th, and appeal to customers that Noto is OK.
On April 17, an executive committee called "Welcome Noto" was established in Ishikawa Prefecture. As a part of the campaign business, the Company has put a sightseeing poster since late April in major SA and PA in the Chukyo and Kansai areas as a part of the campaign business, as it wants to carry out a large campaign to dispel the reputational damage of the Noto Peninsula earthquake. I would like to support you to come to Hokuriku Noto area.
In addition to this, I have offered to Ishikawa Prefecture not only NEXCO Central Japan but also the NEXCO Group for technical support.
Earlier, we talked about fundraising activities from the general public, but the chairman will give the donation as NEXCO Central Japan or donations raised from employees to Ishikawa Prefecture after the consecutive holidays.

(Moderator)

Then we will continue to take questions. If you have any questions, thank you.

(Reporter)

About delivery service in the service area and parking area. This is an area-specific fee structure, but how much difference is there in each area?

(Chairman)

There is almost no difference except for Hokkaido and Okinawa. For example, the price is 500 yen per piece regardless of size. In the case of ordinary general agency, I do not know exactly how many centimeters, but 160 size is 2,210 yen in Hokkaido, 1,690 yen in Kanto, 3,790 yen in Okinawa. When it comes to agency work such as souvenirs, it costs 1,000 yen from Hokkaido, 500 yen from Kanto, and 1,100 yen from Okinawa. From Tohoku to Kyushu, there is no big difference from 500 yen to 700 yen. This is a service system.

(Reporter)

Is the target sales and transaction volume determined?

(Chairman)

As a general guess, in fiscal 2007, the total feel is about 40 million yen. There are now 128 locations, including those that have already been done. The top and bottom of Kameyama and Ureshino are also planning to start on June 1st.

(Reporter)

Regarding last year's fee revenue, the discount rate last year was about 20%. What was the discount rate last year?

(Chairman)

The previous year was about 17%. Last March was about 19% for a month.

(Reporter)

I think it is desirable that the number of traffic and toll revenue be positive compared to the previous year. What are your thoughts on last year's fee revenue falling below the previous year?

(Chairman)

I think this was influenced by the Expo. I think this is the result of the spread of ETC. The year of the Expo seems to have increased both in traffic and sales. The fact that the Expo was until September, had an impact in the first half of last year. For that reason, if the economy doesn't get better, it's no use as much as possible. However, if the current situation continues, we can expect an increase in traffic and sales. And I think that even if we are proceeding with the return of charges to customers using ETC, we can manage it. The income has never increased, but again, because of the public nature of our business, we have decided to do social return with ETC, especially in the charge part, so this discount is increasing year by year, Eventually, we have the goal of 90% ETC usage, but I think the net revenue will gradually decrease as the usage rate increases. I don't think that will be the case with regard to whether the total amount will decrease.

(Reporter)

Although it is different from today's announcement, the chairman recommends Yoshihito Iwai's "who the company is" to the employees as a recommended book, but the content of this book is your management How do you think you are involved with?

(Chairman)

I personally studied and there was a point that resonated very much, so I recommended that it should be helpful for executives to develop themselves. It is not a company recommended book, but it is my own recommended book, but Mr. Iwai said that the company belongs to many people who support the company, not just the shareholders. That is. In our management, the company belongs to stakeholders. Stakeholders are customers, employees, and, of course, shareholders, in the case of our company, shareholders are citizens. Then it is a business partner. Some customers are delivering, and others are borrowing money. Such a business partner in a broad sense. And it ’s a community. I think the company exists for these things. In that sense, Iwai-san's statement and the management policy of the company we are thinking of are quite similar, and there is a company for stakeholder in the 2007 new management plan of the next challenge IV. However, I intend to make it clear that CSR and corporate social responsibility are fulfilled from that perspective.
You know well.

(Reporter)

I read it before, so I wondered if the president read it.

(Chairman)

That person recently wrote three books, and all are good books.

(Reporter)

I think it is the same stance as Professor Itami of Hitotsubashi University.

(Chairman)

Prof. Itami is a person who should take care of his employees more and more, but he is a stakeholder, but rather, he is trying to emphasize that more with the word “humanism”. Iwani-sensei is probably wider.
I had a lot of discussions with Dr. Itami and I had a lot of discussions and I read a lot of the books that I read. I want to continue to do business for those people.

(Moderator)

If there are no other questions, today's regular press conference will be over. Thank you very much for today.

(Chairman)

Thank you very much.