June 28, 2012 Regular Meeting of President Kaneko

[Moderator]

We have been waiting for you. We are now starting the 80th regular press conference.

 

[President Kaneko]

Thank you for your always busy meeting.

The first is about the new execution system.

At the general meeting of shareholders held yesterday, I and other directors and corporate auditors were elected, and the executive officer was elected at the board of directors meeting held after the general meeting of shareholders, as shown in the materials distributed to you. .

With this new execution system, we will continue to strive to deliver excitement and satisfaction to our customers with the full aim of becoming the world's best Expressway company in fiscal 2015. We look forward to your support and encouragement.

In addition to the announcement of the new executive structure, we have published the CSR Report 2012.

I would like to take this opportunity to explain to you again the management policy for fiscal 2012.

See pages 7 and 8 of the "CSR Report" handed out. Here is the corporate vision of NEXCO CENTRAL Group. The corporate slogan of "management philosophy" and "to impress people through the road to the world", and the fundamental part of management aiming to be "the world's best Expressway company" in 2015, remain unchanged. Our management policies for fiscal 2012 include: steadily implementing measures aimed at becoming the world's number one Expressway company, delivering excitement that exceeds expectations and earning unwavering trust, and daring challenges in new business areas. We are working on various measures.

Since last year, we have set a total of 24 key performance indicators KPIs as specific indicators aiming to be the world's best Expressway company in 2015, and we can do it every month, sometimes every three months or half a year, We are verifying the results. Pages 7 to 10 show the actual values for the previous year and the target values for the current fiscal year.

If you look at the results column for fiscal 2011, the green mark that achieved the target is likely to stand out, but the fatal accident rate in the second line from the top is the red mark that failed to achieve the target. There were some items that did not achieve their goals. In order to achieve the targets for fiscal 2015, we will repeat verification and practice this fiscal year and boldly take on new business areas.

As for the “impression” shown in the corporate slogan, we have also set a new “impression index” target value at the bottom of page 7 to visualize emotions. Again, we will work together to achieve our goals.

The “CSR Report 2012” distributed is an introduction to the progress of such management plans and our daily challenge to become “the world's best Expressway company”. I hope that you will read it and help to deepen your understanding of the NEXCO CENTRAL Group.

 

Next is the current state of business in May.

May revenue was 41,803 million yen, up 21.7% from the same month last year.

The year-on-year increase was due to the effects of the end of the special discount for local holidays in the local area of 1,000 yen, the free social experiment, and the opening of Shin-Tomei Expressway.

On the other hand, the average number of traffic in May was 18.12 million a day, a 3.8% decrease from the same month last year.

Highway expressways increased 3.9% year-on-year, but were down year-over-year due to the effects of free-of-charge social experiment freezes, mainly on toll roads. Was opened in April this year Shin-Tomei Expressway is, on average one day Shin-Tomei Expressway is 43,300 units, Tomei is 43,900 cars in parallel, with 87,200 units together, and about 20% of the increase compared with the same year the same period of the previous opening I am.

 

Regarding the status of the construction business, in fiscal 2012 we plan to open five sections of the new Shin-Tomei Expressway that have already been opened.

Of these, the 6km section between the OgakiNishi IC and Yoro JCT on the Tokai-Kanjo Expwy is currently undergoing intensive work on paving, signs, facilities, etc. with the aim of completing the "Gifu Seiryu National Athletic Meet" to be held in September this year. I am doing it.

Once the official opening date and time has been decided, we will notify you again.

 

Regarding ETC usage, the average daily usage rate in May was 89.5%.

Regarding the service area business, sales in the service area in May were ¥ 16,617 million, 110.6% of the previous year. Of this, Shin-Tomei Expressway Tomei was 3.1 billion yen and Tomei was 1.4 billion yen in parallel, an increase of 2.2 billion yen compared to Tomei in the same period last year. I think this is because traffic volume has increased by about 20%, as explained earlier, and many customers have visited the new service area. In addition, Shin-Tomei Expressway before and after the traffic volume of the opening section of also increased, Shin-Tomei Expressway service area also overall sales of Tomei other than the parallel section and has increased.

One month after the opening of the NEOPASA, the number of very popular visitors at NEOPASA reached 5.96 million, and the total number of visitors by the end of May was 8.33 million.

On the other hand, Tomei is working on creating a sales floor different from New Tomei, and will Shin-Tomei Expressway out the uniqueness of Tomei, so please use Tomei as well.

The sales for each of our divisions are as shown in the materials at hand.

 

The first topic of the month is the introduction of a rental bike that we will start as a new business.

Kizuki Rental Service Co., Ltd., which operates the rental bike business with the Company, will open a rental bike NEOPASA Shimizu store on July 21 for the first time in Japan, where you can rent a motorcycle at the Plat Park on the Expressway.

We provide a service where you can actually enjoy motorcycles at the Plat Park in the Shimizu parking area, which was created based on the concept of a gathering place for people who enjoy lifestyles through cars and motorcycles. We offer a wide variety of vehicles from overseas brands such as "Harley" and "Ducati" to domestic brands.

It is possible to use it empty-handed, such as customers who have spared their lives such as child care has settled down, customers who want to try new motorcycles and unusual motorcycles, customers who are too far from home and round trip by bike. By all means, please enjoy a new travel style with rental bikes.

Reservations will be accepted tomorrow. We offer a rental motorcycle basic charge at half price to the first 10 customers who made a reservation by phone. In addition, a preview will be held for the press on July 20. Rental bike test rides are also available, so please have a look.

 

The next topic is the introduction of the campaign in the service area for summer vacation.

"Fairy Tale Stamp Quest Campaign" will be held from July 14 (Sat) to September 23 (Sun) in 51 service areas and parking areas managed by NEXCO CENTRAL.

This campaign is a tie-up to commemorate that the popular manga "Fairy Tale" serialized in Weekly Shonen Magazine will be turned into a movie for the first time.

If you collect and apply for receipts of more than 3,000 yen, such as stamp rallies and shopping in the service area and meals, wonderful prizes such as "fairy tail original goods" and "local gourmet" will be won by lottery for 1,500 people. In addition, a smartphone-only stamp rally using the AR application will be held at the same time.

The “Fairy Tail Original Goods” we have prepared this time are limited editions of NEXCO CENTRAL, so they are rare items that cannot be obtained anywhere else.

During the summer vacation this year, I would like you to participate in the stamp rally and go around the service area and win wonderful products.

 

The following is an introduction of the travel guide book "Kotori" Shin-Tomei Expressway Tomei x Fujinokuni.

Please see the booklet that you handed. A booklet tied up with the popular travel guide book "Kotori", which has gained enormous support from traveling women in their 20s and 30s, "Kotori" Shin-Tomei Expressway Tomei x Fujino Kuni "from tomorrow Shin-Tomei Expwy of NEOPASA and Tomei Expwy and distributed free of charge in limited quantities in 24 places, such as the service area.

"Kotori" is a guidebook with a cumulative total of more than 7.5 million copies issued by Shobunsha, which is familiar with maps and travel magazines. "Kotori Trip Shizuoka / Hamamatsu", which introduces a travel plan that makes driving fun using Shin-Tomei Expressway, rice unique to NEOPASA, menus that can be taken out, and goods, will be released nationwide tomorrow. This booklet is an excerpt from the booklet.

Along with the distribution of this booklet, original stamps were designed in each of the 13 service areas and parking areas of Shin-Tomei Expressway that designed the special products and landscapes of each area. At the end of the booklet, you can collect it as a memorial of your trip. Customers who have collected more than 7 stamps will be presented with the Kotori Trip Original Bookmark, which smells like oranges, to the first 10,000 people.

Please take this opportunity to rediscover the charm of Shizuoka and enjoy the service area and parking area of Shin-Tomei Expressway.

 

The next topic is about the plan discount announced by the Nagoya Regional Head Office on June 12.

NEXCO CENTRAL will commemorate the Gifu Seiryu National Athletic Meet and Gifu Seiryu Tournament, which will be held in Gifu Prefecture from September 29 to October 15, this year by improving customer service and promoting tourism using Expressway We have launched the “Gifu Drive Plan for Hayaburi Seiryu Nation” with the aim of revitalizing the local economy.

This product is a “Tokyo departure and arrival area course” that includes a set of unlimited rides in Gifu Prefecture and a round trip to the Expressway from the Tokyo area to Gifu Prefecture, and an “all-you-can-ride course in the tour area” where all Expressway in Gifu Prefecture are unlimited. We prepared two courses.

Applications have already started to be accepted on the NEXCO CENTRAL Official Website, and will be available from July 12.

We have prepared a pamphlet with sightseeing spots in Gifu and coupons at a discount. We hope that you will use it for watching the Gifu Seiryu National Athletic Meet, summer vacation trips, etc., and create fun summer memories.

 

The next topic is about our environmental initiatives.

The Shin-Tomei Expwy, which opened in April, worked to create a new habitat and habitat by minimizing and reducing the impact on the local ecosystem in construction, as it passes through areas rich in nature. As a result, fireflies were confirmed to fly this June, and an ornamental event was held.

In places where fireflies were found before construction, we worked to create new habitats for fireflies, such as improving the habitat of Kawana, the bait of fireflies, using natural revetments.

For example, the Out-bound line of the Fujieda parking area was developed as a parking area where fireflies fly, and fireflies were raised and released with the cooperation of local firefly associations and elementary schools. At the firefly viewing event held in June, we could see the fireflies flying daily.

We will continue to maintain and manage the fireflies' habitats and cooperate with the local community, and will continue to promote “consideration for the local environment”.

 

Lastly, the investigation committee is currently investigating and verifying cases related to scandals by former employees of our company. Based on income tax law violations and fraud cases, we are conducting sitewide surveys on land compensation, and it is currently taking a lot of data. We will always announce the announcement date as soon as possible, but we will contact you as soon as the date is confirmed.

 

That's it for the topics we prepared today.

 

【MC】

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

 

[Reporter]

In the rental bike business, is it OK for customers on the Expressway and those who entered the parking area from outside?

 

[President Kaneko]

Since the location is the Park Pratt, Expressway customers were likeness Day will be off at once interchange from the main line, you will be asked to stop the car to Pratt Park parking lot. If you are from Nagoya, you will have to pay once at Shin-Shimizu IC and come to Plat Park.

 

[Reporter]

Rent a motorcycle out of the general road first, then you can ride on the Expressway or continue on the general road?

 

[President Kaneko]

exactly.

 

[Reporter]

How did you start thinking about this new business?

 

[Employees]

Our Business Creation Department is exploring new business areas, one of which is the rental bike business. Since February of this year, I have traveled to various companies and have been thinking about ways to use the Expressway space to add convenience and added value to customers.

In the rental bike business, the market has been growing at a very high pace, growing by about 180% over the past three years. Especially because demand is growing, I thought it would be interesting if there were rental bikes in the service area of the Expressway. We talked to Kizuki Rental Service about this and discussed how to make it a reality.

 

[Reporter]

Please tell us the reason for the limited period and the prospect of expanding to places other than NEOPASA Shimizu.

 

[Employees]

This is the first attempt in Japan. I think there is a motorcycle rental business in the service area of Expressway from a global perspective. Therefore, we will verify whether there is really demand in the last five months and whether it will be viable as a business, and if it is popular with customers and there is demand, we would like to implement it as a full-fledged business You. Other than NEOPASA Shimizu, for example, there are good sightseeing spots along Chuo Expressway, so I would like to expand horizontally.

 

[Reporter]

Doesn't it mean that we do business as there is demand?

 

[Employees]

The rental bike business at Expressway has no experience or predictability of demand. If there is no prospect of commercialization in the last five months, full commercialization is difficult.

 

[Reporter]

Does the price include insurance?

 

[Employees]

Optional insurance is included in the price, and personal and objective compensation is included in the price. Vehicle insurance is available as an option separately. Helmets and gloves are also available as separate options.

 

[Reporter]

Yesterday, in Shizuoka City, there was a safety council of Shin-Tomei Expressway, and I think that Shizuoka Prefectural Police had submitted four items to your company. I think they were measures to prevent invasion of wildlife, troubles at toll booths, natural disasters, and reverse running. What are your thoughts on how to approach the proposal?

 

[President Kaneko]

We have been working on countermeasures for the four items requested. We are. The number of wildlife infestations was about four per day immediately after opening, but has decreased to about two since June. Fences have been destroyed, and animals have come in through grooves that we had not anticipated, so we are taking measures to prevent invasion, but I think these results may have come out little by little. I heard that they also talked about prevention of reverse running, people entering, abnormal weather and disaster countermeasures. We are going to review these regulations and standards. We have taken measures such as putting a net or covering the surface with concrete if the trouble caused by falling rocks etc. immediately after opening.

 

[Reporter]

In the CSR Report 2012, you mentioned that the rest facilities will be disaster prevention bases. Will this be implemented in all service areas and parking areas?

 

[President Kaneko]

The scale is different, but we are proceeding. For example, Shin-Tomei Expressway has installed heliports on our premises at 12 of 13 service and parking areas. There is also a city fire department helipad nearby for another location. Therefore, all 13 locations have heliports. In addition, we have a large parking lot space, so it can be used as a base for rescue vehicles such as SDF, firefighting, police, etc., or as an evacuation place for customers and locals, but the scale is slightly different, but all I would like to proceed with the service area and parking area.

 

[Reporter]

Regarding tax evasion and fraud cases of former employees, he said in a February interview that there was no time between the decision and the publication of the investigation results. You mentioned at a March conference that you were already in the final summary. Just three days have passed since the judgment was made yesterday, but it has been a long time since we take common sense. At a conference last month, you mentioned that one employee was not disciplinary and dismissed, and that it was not a calm down, but that he was involved in some form or was acquiesced in a former employee's criminal offense, or that he was completely different. I understand that an appropriate case may have come up as a result of the investigation. That's why it's been taking a long time, and I think the president's story at regular meetings is changing little by little.

 

[President Kaneko]

I will announce the details in detail again, but it is certain that the contents of the survey have changed little by little. At a regular interview in April, I mentioned about 15,000 cases, but we are currently examining a fairly large amount of data, mainly on compensation.

I always say that I will announce as soon as possible, but that is still the case. The first thing is to understand the actual situation, and we are also studying measures to prevent recurrence that will never happen again.

 

[Reporter]

Is it OK to recognize that one person, a former employee, you mentioned last month was disciplined and fired and it is no longer a matter of calmness?

 

[President Kaneko]

It is a company with a long history, including the time of the Japan Highway Public Corporation. We are going to reconsider the way of working and the processes we have been doing for a long time.

 

[Reporter]

In other words, even if you couldn't say the degree or details, was there anything else that was inappropriate besides the case?

 

[President Kaneko]

We will announce the details again.

 

[Reporter]

This time, the president of the Expressway company was changed. With the presidents of the five companies being replaced, only President Kaneko was left. Did you have any explanation from the government?

[President Kaneko]

There was no particular.

 

[Reporter]

President, why do you think you have remained?

 

[President Kaneko]

I became president at the same time as everyone who quit this time, but I often met and discussed various things. Different types of management are the same as different personalities. However, I think there was no doubt that we wanted to work harder for the company and make the Expressway better.

 

[Reporter]

As a company dealing with social infrastructure, it seems that the change in two years is a little too early, but what do you think of it as it is not a general matter.

 

[President Kaneko]

I think it is very difficult to determine what year is appropriate. The first two years may be short, but I do not know if the second or the third is good. Expressway construction takes time. For example, it takes 19 years like Shin-Tomei Expressway, so I think you will have to touch the baton somewhere.

 

[Reporter]

Finally, what is your ambition for the second term?

 

[President Kaneko]

First, there is a section of 353km that has been approved for construction, and this will be completed sooner and at lower cost. In addition, the roads in operation are aging. We call it a 100-year road plan, but we will continue to use it in good condition, or to reinvent it as a next-generation road using new technologies that enable autonomous driving.

The second is Large. In general, 14,000 km of Expressway or 353 km of our business is planned to be completed around 2020. Our role after that is to connect the region with the center and contribute to the Japanese economy as much as possible by revitalizing the region or extending it. In order to fulfill such a role, we believe it is important to keep the company, including the export of social infrastructure. The major issue is how we will expand into such fields, including new businesses.

Third, as I wrote in the CSR Report, is the steady recovery of trust. I think this scandal has damaged many people's trust. I believe that restoring trust as soon as possible is one of our major challenges in fiscal 2012.

 

【MC】

It seems that the question has been interrupted, so this will end the regular press conference.