NEXCO CENTRAL (Central Nippon Expressway Company Limited)




October 26, 2011 Kaneko Chairman and President Regular Meeting

Conference Summary

【MC】

We have been waiting for you. We have just begun the 72nd regular press conference.

 

[Chairman and President Kaneko]

 

Thank you very much for your busy place.

Today, I would like to apologize before the regular meeting.

Today, by the Income Tax Law on suspicion of violating of our employees Central Nippon Expressway Company Limited received a criminal investigation, that our employees have been arrested is that very regrettable, Expressway, including the customers you are reading We deeply apologize to the people.

We are also investigating the facts within the company, but in the future we will cooperate fully with the investigation, confirm the facts, and respond strictly and appropriately.

If you have any questions regarding this, I will accept it later.

 

 

I would like to explain the current business situation.

September revenues were ¥ 40,401 million, up 9.5% year-on-year. On the other hand, traffic in September averaged 1.83 million a day, down 7.6% from a year earlier. The reason for the increase in toll revenue compared to the same month of the previous year and the decrease in traffic volume is due to the freezing of the free social experiment and the termination of the special discount on holidays in rural areas of 1,000 yen.

For the construction status and ETC status, refer to the document you have.

Next is the situation of the service area. Sales in the service area in September were 12,535 million yen, 96.1% year-on-year. We believe this is the result of Typhoon No. 15 passing across the Central Japan area, affecting the launch of customers.

The current state of business in September is simple, but that's it.

Continuing on, from the Tomei Expwy OtowaGamagoori IC which we announced at the regular meeting last month, we are working on a traffic jam countermeasure for the Toyota JCT.

As a flash report, the traffic conditions from the operation start date to October 25 (Tue) yesterday are provided in the documents at hand. Compared to before the start of operation, the traffic volume was almost the same level, but the congestion scale (congestion volume) was confirmed to be 68% lower. After confirming the effect for a certain period, the results will be announced again.

In addition, the lane width is narrow in this section, and the regulation speed is 60 km/h. We are implementing various traffic safety measures, but we ask that you follow our regulated speeds and drive safely.

 

Next topic. At the beginning of October, NEXCO CENTRAL, Expressway in the jurisdiction, six people have died in a traffic accident, which is a sharp increase compared to the average year. Expressway In order to reduce traffic fatal accidents, we conduct traffic safety education activities for customers, continuously develop various traffic safety measures, and study new traffic accident prevention measures. We will inform you as we will promote countermeasures.

We hope that customers can drive safely.

 

These are the topics we have prepared today.

 

【MC】

Now, I would like to receive your questions from now on.

 

[Reporter]

Please tell me the history of Mr. Yamada who was arrested.

 

[Chairman and President Kaneko]

Regarding Maki Yamada's career at the Company, I joined the Japan Highway Public Corporation on April 1, 1988. Since then, I have been transferred to the Nagoya Management Bureau's Ichinomiya Management Office, Nagoya Construction Bureau's Nagoya Construction Office, Mino Construction Office, and Ichinomiya Construction Office. He has been in the land section since he was transferred to the Mino Construction Office in April 1991, and has since been almost engaged in land operations.

After Ichinomiya Construction Office, I am in charge of the site until March 1999 at Kakegawa Construction Office of Shizuoka Construction Bureau and until March 2004 at Numazu Construction Office. After that, he was transferred to the Shinshiro Construction Office of the Chubu Regional Head Office office, and was engaged in general affairs and land until June 2007. From July 2007 to June 2010, he worked at the Nagoya Regional Head Office Toyoda Construction Office, then from 2010 to January 2011 at the Numazu Construction Office of the Tokyo Regional Head Office, and from January 2011 General Manager of the Nagoya Regional Head Office Office I have moved to the planning department. Such a career.

 

[Reporter]

Please tell us about Yamada's work and personality

 

[Chairman and President Kaneko]

I myself don't know much about it, but when I listen to my colleagues around me, I've heard that she wasn't something special or something strange.

 

[Reporter]

It was said in some reports that the quarry company had a "confirmation note" with them, but it is a common case for NEXCO CENTRAL, whether it is an individual decision, or a construction office decision, and a "confirmation note". Please tell me the positioning of.

 

[Chairman and President Kaneko]

After receiving an inspection last December, an in-house investigation committee has been set up to investigate the facts. The Investigation Committee is currently investigating the status of the "Confirmation Letter", including whether it was or not, and the organizational issues. Will be announced when it becomes clear.

 

[Reporter] Is it common to exchange "confirmations" in general land negotiations?

 

[Employees]

Regarding the acquisition of land, it is stipulated that after reaching an agreement with the landowner, a contract such as a land sales contract or a property transfer contract is signed, and it is common to proceed in a prescribed manner. , Tying a confirmation is not common.

 

[Reporter]

Do you know that there has been no confirmation letter in the past?

 

[Employees]

We don't know if there were any actual cases, but it is not a prescribed way to negotiate a site.

 

[Reporter]

I don't think it's a prescribed way.

 

[Employees]

At this time, it has not been confirmed whether such cases existed.

 

[Reporter ]

You are said to have been in charge of the land for a long time, but is it a common or exceptional thing in normal personnel changes?

 

[Chairman and President Kaneko]

At our company, relocations occur frequently. Special tasks such as land are highly specialized and you may experience that task for a long time.

 

[Reporter]

When the "confirmation letter" was exchanged, the president of the other quarry company stated that his boss, along with Mr. Yamada, were with him. And do you confirm that the "Confirmation Letter" physically exists?

 

[Chairman and President Kaneko]

Due to the investigation, I would like to refrain from commenting on the existence of the confirmation or who negotiated.

 

[Reporter]

Have you set up an investigative committee and your internal investigation has been in place for more than half a year, but do you not know the facts?

 

[Chairman and President Kaneko]

Comments will be withheld. Because the investigation is underway, it may affect the investigation.

 

[Reporter]

Since the investigation was conducted for violations of the Income Tax Law, the "Confirmation Letter" is not directly relevant.

 

[Chairman and President Kaneko]

We are investigating whether it is directly related or not, so I would like to refrain from commenting.

 

[Reporter]

The quarry company claims to have a "confirmation letter" and claims that it has a real name, and says that the chief of construction was also present. Is there any comment on that?

 

[Chairman and President Kaneko]

The comments made by the other party are based on your own judgment, so your comments will not change.

 

[Reporter]

You said you have started a research committee since last December. What kind of things can you investigate and what can be revealed now?

 

[Chairman and President Kaneko]

We are investigating what happened and interviewing him and the office where he worked. What we can now reveal is the same answer over and over again, but we are investigating and investigating internally. Some critics say that it's been a long time, but we're investigating at this point, so we'll talk to you at the right time.

 

[Reporter]

Is an internal survey an internal survey and what kind of members are they?

 

[Chairman and President Kaneko]

Outside lawyers, real estate appraisers, etc. The members of the Investigation Committee are internal and external. I would like to refrain from your name.

 

[Reporter]

Mr. Yamada has generally admitted that he was suspicious of the investigation by the Special Investigation Department. Is it OK to acknowledge that he received the money for the investigation inside the company?

 

[Chairman and President Kaneko]

I will refrain from commenting on that matter, as I will go into the content. Also, it has not been determined how he spoke to law enforcement authorities.

 

[Reporter]

What do you think about compliance as a company?

 

[Chairman and President Kaneko]

We regret that our employees have been raided and arrested for violating the Income Tax Law. I do not think very differently to the people who use the Expressway.

We have many questions, but now we want to cooperate fully with the investigation, confirm the facts inside the company, and dispose of it strictly and appropriately.

 

[Reporter]

The investigation is ongoing, but where was the governance problem in that it could still be fraudulent?

 

[Chairman and President Kaneko]

Regarding where the problem was, the Investigative Committee has just investigated the cause, leading to measures to prevent recurrence, and recognizes it as a compliance-related problem. First of all, I want to check the facts about where and how to fix them and how to fix them, and I would like to quickly take measures to prevent recurrence based on those facts.

 

[Reporter]

Following an inspection last year, the company reported in a newspaper report that there was no problem with the land transaction itself as a company. Is it OK that you still have the same perception today?

 

[Chairman and President Kaneko]

We are still investigating, but we believe there was no problem so far.

 

[Reporter]

Tell us a bit more about why you did not have a problem.

 

[Chairman and President Kaneko]

When it comes to content, as I have said many times, I would like to talk about compliance issues and any issues after clarifying the facts.

 

[Reporter]

Shin-Tomei Expressway is currently under construction and there will be a section open next year. Please tell me if this incident will affect the time of opening. In addition, such a case occurred, but I think there is a mechanism to check and monitor problems with stakeholders and other business partners, but please tell us if there was such a system, system etc. Please give me.

 

[Chairman and President Kaneko]

Regarding the first point, there is no problem with the 162km distance from the Shin-Mikkabi Gotemba JCT to the Shin-Tomei Expressway JCT announced in August. The area west of Mikkabi is also a new Shin-Tomei Expressway with high expectations from customers, so we will do our utmost to open it at the promised time. I was asked if there was another system related to the in-house check function related to compliance. However, unfortunately this has happened, so I think this is not enough and I think we need to strengthen it in the future. I think that where and how to do it will be after all the facts have been clarified.

 

[Reporter]

What check function would have worked in this case? Did your business report something, your boss always got a report, or what didn't work? .

 

[Chairman and President Kaneko]

I think there are various processes, but we will not answer any questions at this moment.

 

[Reporter]

If there is a check system, I think it should be said.

Does that mean you don't know the president? I think it's true that there are certain things. If you have to ask you from earlier, I will say that from the known total, Shin-Tomei Expressway but I think it is better that there was, because such does not mean that thankfully be made in bad faith based, there Should be clear and take a sincere attitude as a company? Can you say at least the process?

 

[Chairman and President Kaneko]

What kind of attitude as a company can be recognized as a sincere attitude, at least what I think as a company or as a company is to clarify the facts and review the existing systems and processes etc. I think it is important to show it in the recurrence prevention plan. Since I have been arrested, I do not think it will take a long time to elucidate the facts, so I would like to explain at that time.

 

[Reporter]

Are you sure that the company did not notice the employee's fraud this time?

 

[Chairman and President Kaneko]

I did not notice.

 

[Reporter]

Why do you now think you didn't notice?

 

[Chairman and President Kaneko]

It is where and how it was now, including that area. This happened many years ago. We recognize that it is a problem that we did not understand until the inspection last December.

 

[Reporter]

It's been a long time since the inspection came in, but could you tell us if there was something that the president himself thought was a problem?

 

[Chairman and President Kaneko]

I think there are many. I think there are various issues, such as processes, compliance, human resources, and education issues, so I would like to include them in preventing recurrence.

 

[Reporter]

Please tell us about the role of the employee in question in trading. Please tell me what kind of charge you were in.

 

[Chairman and President Kaneko]

The person in charge of the site.

 

[Reporter]

Are you in charge of multiple contacts?

 

[Chairman and President Kaneko]

Above is a manager. On top of that are the deputy director and director.

 

[Reporter]

Was Mr. Yamada in charge of the actual negotiating role?

 

[Chairman and President Kaneko]

That's right.

 

[Reporter]

Did Yamada's subordinates never engage in direct negotiations?

 

[Chairman and President Kaneko]

I have heard that there are no subordinates.

 

[Reporter]

When you met the other party, was Yamada alone going and talking?

 

[Chairman and President Kaneko]

I'm listening like that.

 

[Employees]

We are investigating what happened in this case, so it is a general story, but the basics of land negotiations are not going alone but going with two or more people.

 

[Reporter]

The president's answer was that Mr. Yamada was alone, is that different?

 

[Chairman and President Kaneko]

I don't know exactly how many times we've negotiated, but I guess there was one or more.

 

[Reporter]

I think land negotiations can be difficult and easy to get together, but did you recognize that negotiations on land with a quarry company were difficult for the company to talk about?

 

[Chairman and President Kaneko]

I have various properties, but I think that this property is in a difficult category.

 

[Reporter]

Regarding the progress of the investigation committee in the company, at the regular interview in June, I was asked how it was going, but `` I do not think that it will take time, I guess it will happen, "but is it behind schedule than originally expected? If so, what is the cause?

 

[Chairman and President Kaneko]

Until now, the in-house investigation committee has been completed three times, and I think that the fourth one will be held soon. I don't think there will be another long-term investigation. I guess it will be closed for the fourth time or after that.

 

[Reporter]

I guess Yamada will disclose the survey results and accompany it, but when is the target?

 

[Chairman and President Kaneko]

I think that the end of the investigation is one goal. I do not know how long the investigation will take. I don't expect it to take months.

 

[Reporter]

Does it point to prosecution? Or will we go to court for a long time after that, but is it okay not to be sentenced but to be charged?

 

[Chairman and President Kaneko]

Although we will dispose according to internal regulations, we usually think that prosecution is not the standard.

 

[Reporter]

Earlier, we mentioned that we will make efforts to achieve the target of Shin-Tomei Expressway Tomei in Aichi Prefecture as well, but we have heard that the section of Otowa is delayed, but at this time we make an effort What is the goal other than doing it?

 

[Chairman and President Kaneko]

It is the time when the opening is promised in the year of 2014. I want to protect that time. As you pointed out, it is true that it was several months late because of this. I would like to make some effort to make it work within the company so that it can be opened at the time I just mentioned.

 

[Reporter]

If you are unable to pay the amount required by the landowner in a general land acquisition, will you pay for it differently after paying the maximum amount you can pay?

 

[Employees]

Compensation for land will be calculated appropriately based on the compensation standards set by the government, and you will need to understand the calculated amount and have a contract. You will not pay for another name.

 

[Reporter]

Are the national compensation standards set by the MLIT?

 

[Employees]

There is a summary of compensation standards previously approved by the government in the Cabinet, and the concept is indicated therein.Based on that, each public utility, including the government, sets compensation standards and calculates the compensation amount accordingly. I am.

 

[Reporter]

What is the maximum payable for a site clerk in accordance with national standards?

 

[Employees]

We are not investigating this case, so we will not answer it.

 

[Reporter]

In general, what is the highest level of land negotiations, the highest standard, and when compensation costs are high?

 

[Employees]

The amount of compensation is calculated based on the results of an on-site survey and the application of compensation standards, so there are no arbitrary factors.

 

[Reporter]

What kind of field survey is conducted?

 

[Employees]

Generally, if you have buildings or trees on the land you want to acquire, we will calculate the cost of relocating them. In the case of a building, the size and structure, components, and in the case of wood, the type and size of the trunk circumference are surveyed and calculated.

 

[Reporter]

Is there a general standard for quarry rights for plants?

 

[Employees]

As for the plant, it is more special than a general building, but the basic flow is the same.

 

[Reporter]

What about quarry rights?

 

[Employees]

The rights are different from those of the property, but we do a survey and calculate based on them.

 

[Reporter]

Is the transfer cost included in the compensation cost or paid separately?

 

[Employees]

Compensation for land is a two-part contract consisting of buying and selling land to buy land and moving the property. If you do not have a property, just buy and sell land. The contract is two-fold, but it is the same negotiation and the flow of contract at the same time.

 

[Reporter]

There was a description of a difficult property, but was there any case of relocation of the quarry so far?

 

[Employees]

We do not know at this time.

 

[Reporter]

Why do you judge it as a difficult category of property?

 

[Chairman and President Kaneko]

There are many facilities such as plant facilities, quarrying rights, etc., which means that it is more difficult than general properties.

 

[Reporter]

It was said that it was a few months late, but earlier interviews said the construction had no effect. Is it OK that the construction was delayed?

 

[Chairman and President Kaneko]

The promise of completion in 2014 is unchanged.

 

[Reporter]

There was some delay, but do you want to make it in time?

 

[Chairman and President Kaneko]

We want to do our best for opening in 2014.

 

[Reporter]

Mr. Yamada was the person in charge, but in general, I think that the person in charge will collectively talk with the other party in the process of acquiring the land, but ultimately conclude, Which department will eventually go up?

 

[Chairman and President Kaneko]

I myself believe that the same process is not the same for large and difficult properties, but that it must fulfill more checking functions. Therefore, in the measures to prevent recurrence, we will review the check function and so on. The checking function is not enough and I think it should be strengthened.

 

[Reporter]

Did you agree with the idea that the land office in charge of the headquarters would eventually go up and the agreement would be concluded after approval?

 

[Chairman and President Kaneko]

We are currently investigating how far this has been decided and how much has been talked about, including that, so I would like to talk about it as soon as I understand it.

 

[Reporter]

As you can see from the paper on the decision, do you know how long it takes?

 

[Chairman and President Kaneko]

It takes time and is under investigation now.

 

[Reporter]

It is impossible, even though there is paper. Because there is paper and stamps, you know who pushed this case. I can't really understand that I can't answer that.

 

[Chairman and President Kaneko]

The elucidation of such a thing will respond in a clear manner as soon as all is understood by the investigation.

 

[Reporter]

That's a situation you don't want to put out

 

[Chairman and President Kaneko]

It is not a situation that I do not want to put out, but that it is under investigation now. It is not a matter of feelings of wanting to give out personally or not, but we are currently investigating and we would like to cooperate with it as a top priority, and we also have an internal investigation committee It has been pointed out that it takes time, but it is still not enough to find out if everything has been elucidated.

 

[Reporter]

I would like to ask you about the general story of land acquisition, but I think that the answer was that there was no arbitrary factor in the numbers based on the national calculation standards earlier However, if your company suggests how much this land is and the other side does not sell it for that amount, if you answer like that, is that it is over?

 

[Employees]

It is not an end, but a negotiation of persistence until you understand.

 

[Reporter]

Does that mean that there is no way to negotiate the amount of money, there is no promise of what to do with the items that are shown this time, and if you just ask for it, do you negotiate to lower your head?

 

[Employees]

Since we have calculated properly based on the standards, we will fully explain the contents and understand.

 

[Reporter]

Is it OK that there is no change in the amount once paid?

 

[Employees]

There is no change in response to such requests from landowners.

 

[Reporter]

Doesn't it mean you don't add money at the other party's request?

 

[Employees]

Although it is a general theory, since the amount of compensation is determined by calculating the amount of compensation in-house and applying procedures such as approval, it is necessary to show the amount to the landowner and understand it.

 

[Reporter]

Do you mean you haven't added anything before?

 

[Employees]

I don't know everything about past examples, but I've explained the general approach.

 

[Reporter]

I think that if you can't agree with them, it will be land expropriation. Is there an example of land expropriation in NEXCO Central Japan this time?

 

[Employees]

There is an example of taking an expropriation procedure if you cannot understand Shin-Tomei Expressway.

 

[Reporter]

Is the expropriation case for a business site like this one?

 

[Employees]

Since the content is about land compensation, I will refrain from explaining it.

 

[Reporter]

Regarding the above-mentioned decision, apart from whether it is a difficult negotiation this time, if it is a normal negotiation, who will start negotiations at the stage of decision?

 

[Employees]

I will talk about the procedure for calculating the compensation amount in general terms, but as I mentioned earlier, there are two land contracts: a land sales contract and a property transfer compensation contract. Regarding land, the actual area surveyed to determine the area to be acquired, and the unit price of the land is determined based on the appraisal of experts such as real estate appraisers, the unit price is determined, and the land purchase price is calculated. It becomes. As I explained a little earlier about compensation for properties, the flow is to investigate the actual quantity and type of the property and all such things and apply compensation standards to calculate the amount.

 

[Reporter]

At what stage is the decision made?

 

[Employees]

Regarding the decision on the compensation amount, the final decision-making authority rests with the Regional Head Office president. In fact are you work in the field will be the construction office, but, it formulated a proposal in the construction office Regional Head Office in response to a review of the Regional Head Office will flow that length is determined.

 

[Reporter]

I'm Yamada, how much authority do you have? For example, do you have the authority to select a surveying company or to what extent did you have the authority?

 

[Employees]

Regarding the determination of the compensation amount, as explained earlier, the office makes a plan, makes a decision in the office up to the office manager, makes a decision at the Regional Head Office and determines it, but as a person in charge, It seems that it is common to make drafts. The draft is made, and the decision is taken by the director, ultimately the office manager, and escalated to the Regional Head Office for examination.

 

[Reporter]

How far did Yamada get involved?

 

[Employees]

I will refrain from commenting on how this was, but in general, I am working on the process in which the person in charge creates a draft and gets the consent of the officials.

 

[Reporter]

Is the proposal of the person in charge generally going? You mentioned that the land business was highly specialized.

 

[Employees]

Of course, if the content is inappropriate during the screening of the officers or the screening at the Regional Head Office it may be corrected, and if the proposal is appropriate, the original draft may be approved.

 

[Moderator]

The question seems to be interrupted, so the regular press conference is over.