November 24, 2011 Kaneko Chairman and President Regular Meeting
Conference Summary
【MC】
We have been waiting for you. We have just begun the 73rd regular press conference.
[Chairman and President Kaneko]
Thank you very much for your busy place.
The first is the current status of our business in October.
Revenues in October were 41,652 million yen, up 12.8% from a year earlier.
The breakdown is as follows: Expressways increased by 37,877 million yen, 10.1%, and general toll roads increased by 3,865 million yen, 48.1%.
On the other hand, the average number of traffic in October was 1.853,000 a day, down 4.7% from the same month last year.
Breaking down, highways average 1.47 million units per day, up 1.2%, while toll roads are 383,000 units down 22.0%.
The reason for the increase in toll revenue compared to the same month of the previous year and the decrease in traffic volume are due to the freezing of the free social experiment and the end of the local holiday maximum discount of 1,000 yen.
This month's ETC discount was 28.2 billion yen, a decrease of 7.7% compared to 30.6 billion yen in the same month last year.
The discount rate is about 40.4%.
Next is the construction situation.
Between Gotemba JCT and Mikkabi JCT (162km) of the Shin-Tomei Expressway-Tomei Expressway, we are currently working diligently on pavement work and facility work, and will complete countermeasure work for three newly confirmed landslides by the end of this year. We are working on the progress of construction as much as possible, and as of the end of October, we have reached about 70% progress.
Next is the usage status of ETC.
From November 4 to November 10, the latest average number of vehicles used decreased 2.3% compared to the previous month from October 7 to October 13, but the daily average utilization rate from 87.8% to 88.3 % And 0.5%.
Looking at weekdays and weekends and holidays, the average usage rate on weekdays increased 0.4% from 88.1% to 88.5%, and the average usage rate on weekends and holidays increased 0.3% from 87.5% to 87.8%.
The cumulative number of vehicle-mounted units installed at the end of October increased 0.8% from the end of September, or 290,000 units, to approximately 35.99 million units.
Next is the situation of the service area.
In October, service area sales were 13,467 million yen, 101.0% of the previous year. Looking at roads in such a situation, Nagano Expressway performed well at 108.9% and Meishin Expressway performed well at 108.1%.
Nagano Road thinks that the stage of NHK's serial TV novel "Ohisama" is in Nagano Prefecture and there were many tourists.
Meishin Expressway believes that EXPASA Taga continues to perform well.
By segmenting sales, the “Food & Beverage Division” decreased 93.0% year-on-year, down 103 million yen.
Further breakdown of the “Food & Beverage Division” is as follows: “Food & Beverage Division” decreased by 197 million yen (94.5% YoY) and “Merchandise Division” was 93 million yen (101.4% YoY) It is increasing.
Next, in the “Services segment (rest-in, bath)”, sales increased by ¥ 10 million, 143.2% year-on-year.
Lastly, in the “GS Division”, refueling volume was slightly lower than last year at 99.4% compared to the previous year, but due to a unit price difference of 13 yen, sales were 232% at 107.5% compared to the previous year. It has increased by one million yen.
Next topic.
It is a situation between Tomei Expwy Otowa Gamagori IC and Toyota JCT that started provisional three lane operation from October 21.
The traffic conditions for the month up to November 20 are available in your documents. Compared to before the start of operation, it was confirmed that the traffic volume was almost the same level, but the traffic congestion scale (congestion volume) was reduced by about 99% and the accident was reduced by about 46%.
In this section, various safety measures have been implemented in line with the three-lane operation, and traffic accidents are on a downward trend.However, the lane width is narrow and the speed limit is 60 km / h. We ask you to protect your car and drive safely.
In addition, traffic accidents on Expressway have rapidly increased since October in NEXCO Central Japan Jurisdiction. In October, there was a very painful accident that caused a subsequent vehicle to crash into a customer who was repairing a puncture on the shoulder of the Tomei Expwy, and several people died at the same time. When stopping on the shoulder of a road, customers must evacuate to a safe place such as the outside of the guardrail before performing repairs themselves, and inform subsequent vehicles of the information. Please report to our Road Control Center.
In order to reduce traffic fatal accidents, we will continue to conduct traffic safety education activities for customers, promote traffic safety measures such as continuous development of various traffic safety measures, pavement repairs, and road surface repairs. However, since the New Year's holidays will be greeted in the future, we hope that customers can drive safely.
The following is a case where our former employee was charged with violating the Income Tax Law.
At an emergency press conference on November 15, as reported by the Investigation Committee, the former employee received a report on the findings of the facts regarding a violation of the Income Tax Law. The Commission will continue to discuss recurrence prevention measures along with fraud investigations.
Regarding measures to prevent recurrence, we believe that there was a problem with the employee compliance and check system processes. (1) Thorough company-wide compliance, strengthening of organizational governance, (2) Optimization and approval of land compensation work It is necessary to formulate based on the review of authority, and (3) the review of human resources. In addition, we would like to announce the measures to prevent recurrence and the dispositions of the parties concerned when the full details of all cases have been clarified.
On the other hand, measures to prevent any recurrence that should be taken immediately after the inspection in December last year include (1) adding a hotline for compliance attorneys, (2) re-enforcement of basic matters of land negotiations and compliance with internal regulations, and (3) employment. We are already conducting surveys on the status of work implementation for employees whose years have exceeded a certain period.
Marantz, accept such a situation very seriously, in strict and properly addressed, Companies in our Group will strive to restore confidence of the united early.
【MC】
Now, I would like to receive your questions from now on.
[Reporter]
You will dispose of your employees after the entire picture has been elucidated. Do you also consider disposing yourself of President Kaneko?
[Chairman and President Kaneko]
We believe that strict disposal is required.
[Reporter]
Mr. Yamada was dismissed from discipline, but how many employees, including his boss at the time, are considering disposal?
[Chairman and President Kaneko]
I don't think it's time to say about the details of the disposal, the number of people, and the scope, but we take this matter seriously. Therefore, we believe that strict and proper disposal and measures to prevent recurrence are necessary.
[Reporter]
The announcement will be made when the full details of all cases are revealed, but it will be clear whether the full details will be revealed when the fraud case is charged or when the trial is over. please tell me.
[Chairman and President Kaneko]
I do not know the prospect of the trial. However, I don't think it is common sense to wait for disposal every year. The Company has also filed a complaint, and an investigation committee and prosecutors in the company are investigating. I think that the timing of the disposal will depend on the scope examined by the Investigation Committee and the investigation by the prosecution. In any case, I think the time of disposal will be within common sense.
[Reporter]
At this point, how many people have been called by the Public Prosecutor's Office and asked about the situation?
[Chairman and President Kaneko]
Perhaps employees or bosses who worked together at the workplace at the time? In addition, it explains the procedure of business, such as how land business is generally carried out.
[Reporter]
Regarding fraud, did you find out in an internal investigation or in a prosecutor's office investigation?
[Chairman and President Kaneko]
An internal survey did not reveal details.
[Reporter]
Is there any time to elucidate the whole situation, such as when to dispose or when a ruling is issued in a trial? When the ruling comes out, is it understood that the whole thing has been elucidated for the time being?
[Chairman and President Kaneko]
I don't know how long the ruling will take, and I can't just wait for the unknown and do nothing. There is no doubt that there was a hotbed and climate where this could happen, and there were problems with compliance and governance. I would like to launch “New NEXCO Central Japan” as soon as possible, so that this will not happen again. We can't say when it's time, but we want to get it right.
[Reporter]
You talked about rethinking your HR. For example, please tell us if there is any content that the president is currently thinking about.
[Chairman and President Kaneko]
There is a department that contacts external stakeholders. For example, contracts and land negotiations. As in this case, being in such a department for a long time is probably the potential for something to happen from contact with outsiders. In particular, for such departments, we investigate how long they have been working for them, and are considering rules such as changing departments regularly. I can't say in general, but after two years, I will move after three years. In addition, we are considering reassignment of personnel in the investigation committee's measures to prevent a recurrence.
[Reporter]
NEXCO Central Japan has sued Yamada for fraud. After the internal investigation committee, new facts have been discovered other than the complaint, and will there be any new complaints in the future?
[Chairman and President Kaneko]
If the company suffered any damage, I think it could be prosecuted.
[Reporter]
Is there anything you currently know?
[Chairman and President Kaneko]
There is none.
[Reporter]
I think this case occurred in a land negotiation transaction, but is this possible for other Expressway companies?
[Chairman and President Kaneko]
I don't know how other Expressway companies are conducting land negotiations. As you might guess, the standards for deciding the amount of compensation and the negotiation method are the same.
[Reporter]
Could a similar problem occur?
[Chairman and President Kaneko]
Although it is not unlikely, it depends on how thorough the compliance is, so it can not be said that other Expressway companies have the possibility.
[Reporter]
As for the target of the disposal, do you think that you should release it until next year or at least by this time, or do you think something as president?
[Chairman and President Kaneko]
As I said earlier, I can't say the time of the year, such as "January or February next year." Of course you can't get rid of half-hearted things, and that doesn't mean you have to wait years. My feeling is that I want to start out as a "new NEXCO Central Japan" as soon as possible.
[Reporter]
Is President Kaneko ever called or requested by the Special Investigation Division?
[Chairman and President Kaneko]
There is none.
[Reporter]
As for the Investigation Committee, once you have compiled the interim report, please tell us about your future plans, such as when to finalize the final report.
[Chairman and President Kaneko]
Although the report of the fourth Investigation Committee was announced, the Investigation Committee has continued. Since the Investigation Committee has not been able to investigate fraud cases, I would like to focus on that area. I can tell you about the content at a certain time.
[Reporter]
Is it ok to understand that strict disposal means that the president himself is included?
[Chairman and President Kaneko]
For all employees and officers.
[Reporter]
Tomei Expwy is about interim three lanes of Otowa Gamagori IC ~ Toyota JCT of, but the 3-lane is Higashi-Meihan Expwy of Yokkaichi but I think that even think now, please tell me if you have any progress and implementation time .
[Chairman and President Kaneko]
Discussions with Mie Prefecture are ongoing. This time, the effect between Otowa Gamagori IC and Toyota JCT has just emerged, so I would like to proceed with discussions with Mie Prefecture based on this result.
[Moderator]
It seems that the question has been interrupted, so this will end the regular press conference.
