Integrated Report
2023

SHO-BOND Holdings Co., Ltd.

Corporate Philosophy
With a sense of mission ofInheriting and passing on social
infrastructure to the next generationin good condition,
we will contribute to the realization of a

A Construction Company
that doesn’t Construct
We create the future of social infrastructuressafe and affluent society by utilizing ouradvanced technological development
capability as a leading company in the
structure maintenance business.

01

SHO-BOND 2023 Integrated Report02About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

At a glanceContents

Integrated Report
2022.7.1- 2023.6.30

01

Corporate Philosophy

03

Contents

The content of this report is composed in Japanese. The Company
provides the English version for your reference and convenience only
without any warranty as to its accuracy. In case of any discrepancy
between the English version and the Japanese original, the latter

Number of Employees:

04

At a glance05

Broad Range of Structures We Work On

07

The Beliefs of the Founder

09

History of SHO-BOND

11

Comprehensive Maintenance System

13

Business Environment

15

Materiality

17

The Value Creation Process

19

Top Message

25

Medium-term Business Plan

27

CFO Message

29

Financial and Non-financial Highlights

Marketing and Sales Division

33

East Japan In-house Company

34

West Japan In-house Company

35

Engineering Division

37

Construction Division

operations create and our commitment to sustained growth.

39

Technical Research InstituteThis publication is based on the International <IR> Framework of the40

Tsukuba Training Center

IFRS Foundation and the Guidance for Collaborative Value Creation of41

Maintenance Technology Inc./Kyna-Tech

42

SHO-BOND MATERIAL CO., LTD.

43

Overseas Businesses

Editorial policy
We decided to begin issuing this report from the fiscal year that
ended in June 2022 to explain to stakeholders the value our businessthe Ministry of Economy, Trade and Industry. For more information
about SHO-BOND, including news releases and other recent
announcements, please visit our website.

Period covered by this publication
FY2023 (July 1, 2022 to June 30, 2023)
This report uses the latest information that was available at the dateof publication.

Business Foundation
45

Sustainability of SHO-BOND

47

Efforts for Environment

49

Efforts to Develop Talent and Improve theWorkplace Environment

51

Feature: SHO-BOND Training Programs

53

Efforts for Health and Safety

57

Corporate Governance

61

Risk Management

62

Compliance

Organizations covered by this publication
SHO-BOND Holdings and its consolidated subsidiaries and affiliates

Date of issue
December 2023

Note regarding forward-looking statements
Plans, forecasts, strategies, and other forward-looking statements inthis report are based on information that is currently available and on
judgments believed to be reasonable by certain assumptions. Actual
results of operations may differ from these forward-looking
statements due to numerous risk factors and uncertainties.

03

SHO-BOND 2023 Integrated Report985 (consolidated basis) Number of Group Companies: 18

KEY FIGURES

9Consecutive
Years of Sales
and Earnings
GrowthOperating Profit Margin

21.6%

ROE

13.4%

Business Strategies
31

shall prevail.

The SHO-BOND Group is a leading company in the structure maintenance business that has been specializing in
the field of repair and reinforcement of social infrastructure since its establishment.

About UsManagement Strategies

Note regarding English translation

At a glance

14

Consecutive
Years of
Dividend
Increase

Total Return Ratio

PBR

Equity Ratio

79.1% 3.07times 80.2%
Percentage of Construction
Sites where “8 Days Off in
4 Weeks” is Achieved

Turnover Rate

Average Annual Days Off

94.3% 3.5% 134.5 days
(As of June 30, 2023)

Company Information
63

11-Year Data

65

Company Profile/Stock Information

04

About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Broad Range of Structures We Work On

Broad Range of Structures We Work On
We play an important role in the sustainability of cities
by repairing and reinforcing a diverse array of structuresthat form the essential fabric of social infrastructure.
BridgesTunnels

Seismic retrofitting
Prevention of concrete degradation

Prevention of ceiling and wall spalling
Stop groundwater leaks

Road structures
Repair of expansion joints
Noise reduction

Harbor Quay

Railways

Irrigation Channels

Protection from salt damage
Prevention of concrete degradation

Repair of damage at elevated railways
Seismic retrofitting

Prevention of cracking
Prevention of water leaks

Water Supply and
Sewer Systems

Buildings

Silo

Seismic retrofitting

Repair of wall surface degradation

Protection from corrosion

05

SHO-BOND 2023 Integrated Report06About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

The Beliefs of the Founder

The Beliefs of the Founder“Change in itself is progress” is a mantra often used by our company’s
founder Mr. Ueda.
Mr. Ueda used this phrase repeatedly when telling everyone at the
SHO-BOND Group about the importance of aiming for ambitious goals andconstantly making improvements to achieve progress.

I like the phrase “change in itself is progress.”
Periods with no difficulties at all will always come to an end.

Corporate Credo– Make thoughtful decisions– Take responsibility for your actions

Change produces challenges as well as progress.
History has demonstrated that only companies able to alter
themselves to reflect changes in the business climate areable to compete and survive.
Excerpt of Mr. Ueda’s 1990 New Year message– Unify the workplace– Contribute to society
The credo of the SHO-BOND Group was established in June 1979 by
Akira Ueda, who was then the company president. The credo wasannounced at a SHO-BOND annual conference attended by all
employees to celebrate the company’s 21st anniversary. When making
the announcement, Mr. Ueda also stated that the company put agreat emphasis on the company’s benefits, which are supposed to
guide employees in making optimal decisions. Only a prosperous
company can invest more in promoting employees’ happiness.
Today, more than four decades after this event, SHO-BOND has
grown as a listed company with a commitment to the happiness of
employees as well as shareholders, customers, and all otherstakeholders. As expected, the Group’s focus goes beyond profit andencompasses elements including governance, internal controls,
transparency, and ethical conduct in our operations.
The thoughts at the time of its establishment and its modern
significance resonate with each other, and the company credo has
become the behavioural principle of all our executives and employees
to this day.

The publication to celebrate SHO-BOND’s 40th anniversary included
the following reflections of Mr. Ueda in the past four decades.
“For the past 40 years, I have always demanded and put into
practice ‘high expectations’ when it comes to my company. In otherwords, I have set high goals and put them into practice based on thetwo slogans ‘Change in itself is progress’ and ‘company’s benefits are
the standard for decision-making.’ I have gritted my teeth and wantto encourage you all.”
By remaining true to his beliefs, Mr. Ueda saw his new company
grow from five people at a single factory to Japan’s leading company
in the field of infrastructure maintenance.

Mr. Ueda giving a speech at the 1972 Division
Managers Conference

The SHO-BOND Group will continue to take on new challenges
with the founder’s spirit of passion for constant progress.

07

SHO-BOND 2023 Integrated Report08About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

History of SHO-BOND

History of SHO-BOND

1958-

Fusion of technologies in the fields ofchemistry and civil engineering
Our company was originated from Showa Kogyo Corporation,
established on June 4, 1958. Initially, our business was construction
using PVC components, but in the process, we discovered and put
into practical use the repair performance of concrete with epoxy
resin, which opened up a new market of synthetic resin adhesives forcivil engineering works.
The effectiveness of the company’s new method for repairingconcrete was demonstrated during work to repair damage to theShowa Ohashi Bridge caused by the 1964 Niigata Earthquake. This
was the start of the company’s reputation as an expert in repair andreinforcement work. In March 1965, trial installations started for the
Cut-off Joint, an expansion device
for highway bridges developed
and patented jointly with Japan
Highway Public Corporation. This
innovation was subsequently usedfrequently throughout Japan for
The Showa Ohashi Bridge in Niigata collapsed
the construction of expressways.

1995-

2019-

The rapid growth of seismic retrofitting
after the Great Hanshin-Awaji Earthquake
The powerful earthquake that devastated the Kobe region in January
1995 caused many deaths and severely damaged structures, such as
the collapse of expressway bridges. However, there was no damage
to the piers that SHO-BOND had reinforced shortly before thisdisaster. The reliability of SHO-BOND’s seismic retrofitting method was
widely recognized, resulting in a rapid increase in orders for theseprojects in all areas of Japan. As a result, our sales and earnings
increased significantly.
In 1996, operations began at the new Technical Research Institutein the city of Tsukuba in Ibaraki prefecture. Research involving devices
for earthquake resistance produced new products including the
Restraining Chain.

in 1964 during a powerful earthquake

1975-

Emergence of a comprehensive
maintenance system
Piers of the expressway bridges reinforced shortly before the 1995

In 1975, SHO-BOND was split into two companies: SHO-BOND
CORPORATION and SHO-BOND Chemical, which clarified our path to
growth as a special construction company.
The Central Technical Research Institute was relocated in 1977
and concentrated on creating products and construction methods
combining chemical and civilengineering technologies. These
activities reinforced SHO-BOND’sreputation as a technologyoriented organization. Reforming
its organization gave SHO-BOND
comprehensive maintenancecapabilities encompassing thedevelopment of technologies,
supply of construction materials,
and construction.

Kobe earthquake were not damaged by the powerful tremors

Challenge overseas business2011-

A construction site of the Expressway Renewal Project in 2018

Unprecedented disasters highlight theneed for infrastructure maintenance

In April 2019, SHO-BOND and MITSUI & CO., LTD. established
SHO-BOND & MIT Infrastructure Maintenance Corporation (SB&M) to
operate an infrastructure maintenance business overseas. The aim is
to use SHO-BOND’s proven technologies to help solve problems inother countries involving aging infrastructure.
In Thailand, SB&M and CPAC, a member of the Siam Cement
Group, established CPAC SB&M Lifetime Solution Co., Ltd. in 2020. In
the United States, SB&M invested in Structural Technologies, LLC, an
infrastructure repair maintenance company, in July 2023.

Catastrophic disasters that occurred in Japan after 2010 further
highlighted the importance of seismic retrofitting and repairing aging
infrastructure. During this period, there was a large volume ofinfrastructure maintenance work in all areas.
Many maintenance and reinforcement projects have been
implemented in accordance with the Fundamental Plan for National
Resilience following the 2011 Great East Japan Earthquake. Currently,
activities are underway based on the Five-Year Acceleration Plan for
Disaster Prevention, Disaster Mitigation, and Building National
Resilience that began in 2021.
The collapse of the ceiling of the Chuo Expressway Sasago Tunnel
in 2012 again underscored the urgent need for repairing Japan’s
aging infrastructure. Based on a Japanese government Basic Plan forLife Extension of Infrastructure, the Expressway Renewal Project
started in 2015 and will continue until 2030.
To meet the demands of this new business climate, SHO-BOND
established the in-house company structure, strengthened theorder-taking and construction system through close collaboration
with partner companies, and increased emphasis on R&D for creating
new technologies. To build a stronger base for these activities,
training programs, reinforcement of the culture of safety, and othermeasures were given even more emphasis. Due to these initiatives,
sales and earnings increased along with the growth of theinfrastructure maintenance market.
2011 The Great East Japan Earthquake

The 2020 online signing ceremony with CPAC
for establishing a jointly-owned company

2012 Sasago Tunnel ceiling collapse on the Chuo Expressway
2013 · Amendment to the Road Act, and compilation of
the Basic Plan for Life Extension of Infrastructure
The First Year of Social Infrastructure Maintenance· Enactment of the Basic Act for National Resilience

(¥bn)
100

The 2023 signing ceremony with Structural Technologies
for an investment by SB&M

2015 Beginning of the Expressway
Renewal Project

1995 The Great Hanshin-Awaji Earthquake

80

The Central Technical Research Institute was moved to Omiya(now the city of Saitama) in 1977

60

Net Sales

40

1964 Niigata Earthquake

20

1960

09

SHO-BOND 2023 Integrated Report

1970

1980

1990

2000

2010

2020

0

10

About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Comprehensive Maintenance System

SHO-BOND CORPORATION / KAKO-Group / Kyna-Tech

Comprehensive Maintenance System

Construction
Work

Construction system that can handle
all types of construction

SHO-BOND CORPORATION handles large-scale, high-difficulty construction
works, while construction subsidiaries (the KAKO-Group), which have theirhead offices in various locations, handle small and medium-scaleconstruction works. We undertake maintenance works nationwide,
regardless of scale or whether we are a main contractor or a subcontractor.

The SHO-BOND Group is a comprehensive maintenance company which specializes in repairing and reinforcing social
infrastructures. We provide extensive support in social infrastructure maintenance, with a focus on design and construction
services as a construction company, together with services ranging from R&D of materials and construction methods, tomanufacturing and sales of developed materials and construction methods. The country’s foremost and comprehensive
maintenance system. This is SHO-BOND’s characteristic, our strength.
Maintenance Technology Inc.
Investigation /Diagnosis /DesignConstruction Division > P37
East/West Japan In-house Company > P33-34

Exact proposals based on accurate investigation

We propose optimal design and construction methods byinvestigating and diagnosing, combining abundant knowledge
and state-of-the-art technology in response to various structural
damage problems.

Kyna-Tech > P41

SB&M

DesignGlobalBringing Japanese maintenancetechnology overseas
We take on the challenge of solving the social issue of aging
infrastructure faced by many countries by combining our technologicalexpertise in infrastructure maintenance with the network and businessdevelopment capabilities of MITSUI & CO., LTD.

ConstructionWork

Maintenance Technology Inc. > P41

Investigation /Diagnosis

Engineering Division > P35

Technical Research Institute (SHO-BOND CORPORATION)
Technology
Development

Development of new construction methods
and materials required by the times

We have a wide array of state-of-the-art research equipment specialized
in repair and reinforcement. Our researchers specializing in chemistry
and civil engineering work together with external research institutes todevelop new construction methods and materials that meet the needsof the coming age.

Overseas Businesses > P43

Group companies

Technology
Development

Sales

Sales

Sales of a wide variety of repair andreinforcement products
Product sales and construction work are the two pillars of ourbusinesses. With a lineup of organic, inorganic, and structural materials,
our group companies approach a wide range of customers to expand
our sales channels.

Marketing and Sales Division > P31

SHO-BOND MATERIAL CO., LTD. > P42
Engineering Division > P35
Technical Research Institute > P39

SHO-BOND MATERIAL CO., LTD.
Manufacturing

Production system utilizing our factories
and contract manufacturing

While manufacturing resin-based materials, which are our roots, in
our factories, we develop and design structural construction materials
in the Technical Research Institute and contract manufacturing topartner companies (fabless). We have an efficient and asset-light
production system.

Manufacturing

Group Companies

SHO-BOND Holdings Co., Ltd.

KAKO-Group (Construction Subsidiary)
TOHOKU KAKO CORPORATIONKAKO CORPORATIONYOKOHAMA KAKO CORPORATIONKANTO KAKO CORPORATIONNIIGATA KAKO CORPORATIONCHUBU KAKO CORPORATIONKANSAI KAKO CORPORATIONCHUGOKU KAKO CORPORATIONSHIKOKU KAKO CORPORATION
KYUSHU KAKO CORPORATION

SHO-BOND CORPORATION
Technical Research Institute Tsukuba Training Center

Kyna-Tech
Maintenance Technology Inc.

SHO-BOND MATERIAL CO., LTD.

SHO-BOND (HONG KONG) Ltd.

SHO-BOND MATERIAL CO., LTD. > P42
SHO-BOND & MIT Infrastructure MaintenanceCorporation (SB&M)

11

SHO-BOND 2023 Integrated Report

CPAC SB&M
Lifetime Solution Co., Ltd.

12

About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Business Environment

Business Environment –Accelerated Aging of Infrastructure–
Most of the infrastructure in Japan was built after the high economic growth period, and its aging is expected to accelerate in
the future. In response to these social issues, national and local governments are taking action nationwide to formulate plans forappropriately maintaining, managing, and renewing infrastructure and extending the service life.

Number of Bridges
by Year of Construction

Total:Approx. 520,000 bridges

44 years

Average age:

Number of Tunnels
by Year of Construction

Percentage of Structural Infrastructures Built More Than 50 Years Ago

2020

2040

30 %

75%

Examples of aging infrastructure

Total: Approx. 10,000 tunnels
Average age:

(As of 2023)

36 years(As of 2023)

150,000

2,500

120,000

2,000

90,0001,500

60,0001,000

30,000500

Road bridge[730,000 bridges]

Concrete spalling and exposed
reinforcing bars

0

1921

1930

1940

1950

1960

1970

1980

1990

2000

MLIT

2010

0

2020

Expressway companies

Aging bridge
bearing

1921

1930

Prefectures

1940

1950

1960

1970

1980

1990

2000

2010

Tunnel2020[11,000 tunnels]

Municipalities

22 %

53%

21%

66 %

Notes: 1
 . Prepared by SHO-BOND based on MLIT data
2. Number of managed facilities by road administrator
3. In addition to the above, there are approximately 210,000 bridges and 300 tunnels whose construction year is unknown.

Expressway Renewal Project[ Current Progress ]Act revision

Budget size

2014
Revision of Act on State’s Special Financial Measures on Road
Construction and Improvement Projects
Toll collection period for expressways
2005

Harbor quay
[61,000 facilities]

2015-2030
Expressway Renewal Project(Total 6 expressway companies)

5.4 trillion

Extension to
Total

¥

Total

¥

Salt damage

2065

2050

2023
Revision of Act on State’s Special Financial
Measures on Road Construction and
Improvement Projects
Toll collection period for expressways

2023
Additional Plans(Total 5 expressway companies)

Re-extension to
2115

2065

2005

¥

1.5 trillion

6.8 trillion is required in addition to the above

Sewer pipe
[480,000 km](The National Diet Record of April 5, 2023)

5%

35 %

Source: Prepared by SHO-BOND based on MLIT data

[ Percentage of total length covered by the project ]Sewer pipe corrosion

14%
Current Renewal Project4.03 trillion

5%¥(1,360km)

Additional Plans

20%

Current Renewal Project

930 billion¥(64km)The Three NEXCOs

10,000 km

1.00 trillion¥(500km)Additional Plans

300 billion¥(22km)

Metropolitan
Expressway

327 kmCurrent Renewal Project

420 billion¥(91km)

7%

Additional Plans

200 billion¥(22km)

35%
Hanshin
Expressway

Rivermanagement
facility

258 km9%[46,000 facilities]

10%

38 %

Source: Prepared by SHO-BOND based on MLIT data

13

SHO-BOND 2023 Integrated Report14About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Materiality

Materiality

Materiality Matrix

The SHO-BOND Group has designated four Materialities based on social demands and the expectations of stakeholders. The
Materialities are our priorities in order to achieve sustainable growth with our stakeholders as the Group plays a role in solving social
issues while continuing to increase corporate value. The Group will continue to leverage business activities for constant progressconcerning these Materialities in order to contribute to long-term sustainable growth and the development of a sustainable society.

To identify materiality, a materiality matrix was created by evaluatingsocial issues from the standpoints of the importance to stakeholders
and the importance to business operations. Then 22 social issues thatwere very important from both standpoints were selected as theissues that the SHO-BOND Group should target.
To determine importance to stakeholders, evaluations were

performed by using the perspectives of shareholders and otherinvestors in Japan and other countries, local governments, government
agencies and other sources of orders for the SHO-BOND Group,
manufacturers of building materials, chemicals and other materials
procured by the group, construction firms and other subcontractors,
residents near business sites and other members of society, government
actions and policies, and other stakeholders. For importance tobusiness operations, evaluations were performed by the group’s senior
management, including outside directors, and employees.

To identify materiality, we first identified 55

22 Social issues

social issues to be examined. This processincorporated the SHO-BOND Group’s

Process to Identify Materiality
In April 2020, the SHO-BOND Group identified materiality with theparticipation of employees, senior management and prominent
individuals outside the group.
The SHO-BOND Group will continue to upgrade Materiality
initiatives with the input of the group’s internal and external
stakeholders.

of stakeholders and other factors.

Identificationof socialissuesCorporate values/business strategy issues
Global framework/principles/guidelines*

1

Japanese government policies*2

E Environment
Importance to stakeholders

policies, social demands, the expectations● Establish a resilient● Employee retention and● Strengthen corporate● Assessment of● Leverage comprehensive● Improve economic● Strengthen risk

● Proper management of● Ensuring occupational● Measures involving Japan’s● Compliance with laws

resources

environmental impact
of projects

waste materials● Measures to combat
climate changethen chosen as the priority social issues.

maintenance resources tocontribute to society

health and safety● Develop and use
technologies forsocial issues● Activities to increase
productivity● Recruiting and training
programs

sound labor relations

governancemanagement

performancefalling population● Develop sustainable cities● Health and safety ofcustomers and consumers● Community relationships

and regulations● Fair business practices● Information security

measures● Proper management ofintellectual property

Corporate Philosophy

perspectives of stakeholders and thegroup’s businesses. The top 22 issues were

infrastructure

Importance to business operations

The 55 issues were ranked by using theEstablishmentof priorities

G Governance● Sustainable use of

Evaluation by ESG assessment companies*3

55 issues

S Social

With a sense of mission of “Inheriting and passing on social infrastructure to the next generation in good condition,”
we will contribute to the realization of a safe and affluent society by utilizing our advanced technological development capability
as a leading company in the structure maintenance business.

The 22 issues were divided into four groups
based on their characteristics in order toestablish a materiality proposal.

Materiality
proposal

22 Social issues

The suitability of the materiality proposal,
including the process used to create theConfirmationof suitability

proposal, was checked with theparticipation of senior management andthe input of prominent individuals outside
the SHO-BOND Group.

Identificationand disclosureof materiality

Comprehensive maintenancesystem backed by theorganizational capabilities

Productivity improvement
through technology
development

Sound governance andmeasures for more
improvements

Contribution to thedevelopment ofsustainable cities

Contribute to the developmentof social infrastructure by using
partner companies interactions
and the group’s aggregate
resources for all maintenanceprocesses, whether large or small.

Improve productivity by
combining chemical and civilengineering technologies tocreate new technologies andby conducting training andeducation programs.

Make sound and transparent
governance to maintain thefoundation for relationships
with all stakeholders.

Position the social
infrastructure maintenancebusiness as a key componentof the development ofsustainable cities that areenvironmentally responsible.

● Establish a resilient● Develop and use technologies● Strengthen corporate● Sustainable use of resources● Assessment of environmental

infrastructure● Leverage comprehensive
maintenance resources tocontribute to society● Ensuring occupational healthand safety

for social issues● Activities to increase
productivity● Recruiting and training
programs● Employee retention and soundlabor relations● Improve economic performance

governance● Strengthen risk management● Compliance with laws
and regulations● Fair business practices● Information security measures● Proper management ofintellectual property

Final conceptual diagram of materiality,

impact of projects● Proper management ofwaste materials● Measures to combat

climate change● Measures involving Japan’s

falling population● Develop sustainable cities● Health and safety of customers

and consumers

with external input, and approval by the● Community relationships

Board of Directors.

Internal activities*1 GRI standard, SASB standard, SDGs, ISO26000,
10 Principles of the UN Global Compact, OECD
Guidelines for Multinational Enterprises, and others

Effects of business activities on society*2 Policies of the Ministry of Land, Infrastructure, Transport
and Tourism for public works projects and other policies

15

SHO-BOND 2023 Integrated Report*3 MSCI, FTSE, Robeco SAM and others

16About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

The Value Creation Process

The Value Creation Process

MissionInheriting and passing on social infrastructure
to the next generation in good condition

Our mission is to pass on social infrastructure to the next generation in good condition while bringing out the best in the distinctive
comprehensive infrastructure maintenance business model.
We are dedicated to playing a role in maintaining a safe and affluent society for everyone. Through a continual approach to the four
components of our Materiality, we provide solutions for social issues and create economic value, as well as promote the long-term
growth of corporate value.

Our Vision● Fulfill our mission as a company specializing in maintenance● Be a technology-oriented organization

Outcomes

that combines chemical and civil engineering technologies
to create new materials and construction methods● Place priority on profitability and efficiency

Resolution of social issues

Design● Measures against aging through preventive

infrastructure maintenance● Establishment of a safe and secure national,

Construction
Work

Social Issues
Investigation/
Diagnosis● Accelerated aging of infrastructure● Increasingly severe and frequent

regional, and economic society with resilience

Comprehensive
Maintenance Systemnatural disasters＞P11● Realization of a decarbonized society

Technology
Development● Heightened geopolitical risks andchanges in economic conditions inJapan and overseas● Curbing of greenhouse gas emissions(Reduction of environmental impact)

Effects of businessactivities on society● Declining birthrate, aging population,and decreasing workforce● Creation of sustainable and livable cities

Comprehensive
maintenance system backed
by the organizational
capabilities

Materiality ＞ P15

Sales

Creation of economic value¥83.9 billion● Sales
Contribution to thedevelopment ofsustainable cities

Business Environment > P13● Profit attributable toowners of parent● ROE● Total return ratio

Manufacturing¥12.9 billion
13.4%
79.1%

(FY2023)

Internal activities
Productivity improvement
through technology
development

Sound governance andmeasures for more
improvements

InputsFinancial capitalIntellectual capitalSocial and relationship capital● Sound financial base with high● Accumulated technological● Engagement with stakeholders

profitability

Manufactured capital● The Group’s strength forcomprehensive infrastructure
maintenance● Construction methods andmaterials specialized in repair
and reinforcement

17

SHO-BOND 2023 Integrated Reportdevelopment capabilities andknowledge centered on TechnicalResearch Institute

Human capital● Experienced and highly skilled

engineers● Strong network with partnercompanies

Natural capital● Maintenance work with reduced

environmental impact

Reutilization● Multi-skilled workers with strengths

as maintenance specialists

18