Construction in Japan East Japan In-house Company

Managing Director and General Manager of the East Japan In-house Company
SHO-BOND CORPORATION■ Empowering Female Engineers and Non-Japanese Employees■ Business Locations /Area

East Japan In-house Company

SHO-BOND CORPORATION
Kita-Nihon
Regional Office■ Hokkaido Branch■ Minami-Tohoku Branch■ Kita-Tohoku Branch

Shutoken Hokuriku
Regional Office■ Tokyo Branch■ Chiba Branch■ Kanto Branch■ Hokuriku BranchGroup Companies■ TOHOKU KAKOCORPORATION■ KAKO CORPORATION■ KANTO KAKO

6 group companies

47.5
1.1

16.0

2.6
12.7

2.3
12.4

Construction Sales: East Japan In-house Company(Billion yen)
40

36.8
30

1.1

16.1

28.2
4.1

33.2
20

7.7

29.3

31.5

10

0

10.2

11.8

5.5

5.4

6.9

8.4

FY2018FY2019FY2020

FY2021

National government

31

11.2

37.1

1.9

1.3

14.5

10.1

11.0

19.6

Expressway companies

Note: As of June 30, 2022
A non-Japanese employee and female engineers

T o p i c s

4.4
FY2022
Private sector

0

11.6

10.5

10.8

10.5

5.5

5.5

6.7

7.9

FY2018FY2019FY2020

FY2021

National government

As part of our human resource development efforts, we have dispatched more than 10 veteran engineers to
act as instructors for construction management training aimed at less-experienced employees and workers
from partner companies. The in-house instructors are leveraging their experience to create their own courses
and study programs and these have been well received by the trainees.

Recycling Work Clothes and Helmets
We are carrying out an initiative for recycling unneeded work clothes, helmets, and other equipment. The
clothes, helmets, and equipment collected at each of our business locations are put to good use as anindustrial resource.
FY2022 Collection Results (East Japan In-house Company)
Work clothing: 298 pieces
Helmets: 27
Other (cold weather protection, etc.)

In-house Newsletters
12.8

8.8

Local government

SHO-BOND 2022 Integrated Report

10

37.0

2.3

3.2

20
12.3

7

Company Information

30

33.8

Non-Japanese employees in training

Corporate GovernanceConstruction Orders: East Japan In-house Company

32.4

2

Dispatching Instructors to the Tsukuba Training CenterWe take on construction orders from expressway companies, national and local governments in a well-balanced manner. In particular, we receive a lot of orders
from local governments in the capital region, including the Tokyo. In regard to expressway construction, we have been driving growth in orders since FY2022,
after the Tokyo Olympics. We have also been trying out new technologies through joint ventures with partners, including major construction companies andbridge manufacturers.

4.8

Non-Japanese employees recruited (2020 to present)

Sustainability

CORPORATION■ YOKOHAMA KAKOCORPORATION■ NIIGATA KAKOCORPORATION■ Kyna-TechConstruction Orders and Net Sales

36.5

We are actively employing female engineers at construction sites and some ofthem take a lively part in on-site jobs balancing work and family life. Currently,
we have nine female engineers on staff, one of whom is non-Japanese.
We are also actively working to recruit and develop non-Japanese humanresources so that we will be able to respond to future changes in the businessenvironment. We have already launched an initiative to recruit non-Japaneseengineers and we are actively engaged in developing them, including atpartner companies. This development is not only being carried out throughon-site instruction, but also through measures such as educational support
that enables them to gain official Japanese qualifications.

Business Strategies

390 employees

7 branches

40

Management Strategies

We have formulated an action plan for creating a safety culture within the in-house company and we are
implementing initiatives in accordance with this plan.
This includes making communication the highest priority, so we are implementing measures forenhancing both organizational and individual capabilities of ensuring safety on construction sites.
Specifically, we are working to deepen mutual understanding between the in-house company, ouremployees, and partner companies by carrying out conversation-based patrols and issuing in-housenewsletters.

Overview of East Japan In-house Company(Billion yen)
50

In order to build a foundation for the future, we think it is important to cultivate people, both our own employees and those of partner companies, so we arefocusing our energy on safety initiatives and the development of human resources.

■ Creating a Safety Culture

Noriyuki Hosaka

The East Japan In-house Company is an organizational framework
covering North and East Japan, as shown on the map to the right. We
have great expertise in the repair and reinforcement or seismic retrofitting
work of a broad range of road structures and buildings. We also have a
specialist company under our umbrella (Kyna-Tech) that possesses uniquecore technology of a high-frequency core drilling method, which is 2.5
times faster than conventional method. It plays an active role in projects
both within and outside the Group. We have also started building aframework for carrying out high pressure water jet work as a new business
area.
Some of the areas we cover experience heavy snowfall, so in order tokeep sales steady, we need to be strategic in how we accept orders, suchas taking on large-scale urban construction projects and orders from local
governments and the private sector to offset the suspension of work on
expressways in these regions during the winter.
We strive to take on difficult large-scale expressway construction
projects in urban areas as a joint venture with bridge manufacturers. In
addition to securing profits, we engage in these projects to improve thetechnical abilities of our young engineers. Also, as the number oflarge-scale projects we receive is growing, we are using the Tsukuba
Training Center and other resources to cultivate the employees of partnercompanies as well.

Main Initiatives

What is the SHO-BOND Group?

Under the basic operational policy of “Build a robust foundation for the future to become a company thatcan keep pace with changes in the times,” we have established and are pursuing a business strategy
which leverages the technologies we have cultivated and facilitates further development that will connect
to future generations. We have named this strategy Triple P for its focus on three main areas: Project,
Policy, and Progress.

Local government

Expressway companies

5.7
FY2022Each of our regional offices creates its own in-house newsletter. The Kita-Nihon Regional Office’s newsletterhas been named Eco-Hiiki (Eco Promoter) and includes content that aims to strengthen ties with partnercompanies. The Shutoken Hokuriku Regional Office’s newsletter is called Anzen Dayori (Safety News) and itaims to inform staff of revisions to laws and regulations and foster a strong awareness of safety in accordancewith in-house rules. We will continue to issue newsletters as a tool for fostering communication within thein-house company and with partner companies.

Private sector

SHO-BOND 2022 Integrated Report32Construction in Japan West Japan In-house Company

Tsuyoshi Koga

■ Business Locations /AreaWest Japan In-house Company

Group Companies

Chubu
Regional Office■ Nagoya Branch■ Shizuoka Branch■ CHUBU KAKO

Kinki Regional Office■ Osaka Branch■ Kyoto Branch■ Kobe Branch■ KANSAI KAKO

Nishi-Nihon
Regional Office

CORPORATIONCORPORATION■ CHUGOKU KAKOCORPORATION■ SHIKOKU KAKOCORPORATION■ KYUSHU KAKOCORPORATION
5 group companies

35.6

29.3

1.2

24.8
1.0

20

10

0

5.3

30

1.5
30.0

20.2

20

29.0
25.0

25.2

1.0

1.1

8.8

16.6

11.5
7.5

6.6

10
4.7

6.9

7.6

8.9

FY2018FY2019FY2020National government

33

25.7

Local government

SHO-BOND 2022 Integrated Report

4.9

6.5

4.3

FY2021

FY2022

Expressway companies

Private sector

Komachi Tsuushin messages sent throughsocial media

0

7.1

11.9

5.2

1.5

19.7
13.7

6.7

6.0

Training for Young Employees
24.4

5.1

7.1

7.5

7.5

FY2018FY2019FY2020

FY2021

Local government

Expressway companies

T o p i c s

1.1

1.1

8.2

National government

35.4

As a leading company for repair and reinforcement work, we position human resource development,
particularly the development of young employees and passing down of skills, as an important issue.
We are focusing on developing young engineers by leveraging the experience of senior employees inconstruction, sales, and engineering departments to implement experience-based training programs.
Content includes operational methods used at construction sites and ways to solve technical issues. We
are also actively working to further advance this training by incorporating environmental improvements(including DX).

An experience-based training session

4.7

Company Information

30

34.7

39.8
0.6

The Nishi-Nihon Regional Office has started sending all team members
Komachi Tsuushin, which are communications aimed at improving safety
awareness. Female administrative staff, who usually stay at office, use
social media to send safety awareness messages to construction sites
every Monday. This raises their interest in the sites and fosters greater unity
among the entire team, including administrative departments. At the sametime, the regional office’s Safety Management Section is sending Safety
Alerts that inform workers of potential onsite hazards identified from theweekly construction schedule as a way to encourage the sharing of
information and realize a greater alertness to danger among all employees.
Through these daily initiatives, we aim to foster an organization-widesafety culture by facilitating communication and building trust.

Construction Sales: West Japan In-house Company(Billion yen)
40

1.5

40

■ Unique Communication that Improves Safety and Team Unity

Corporate GovernanceWe actively undertook large-scale construction orders from expressway companies to advance the Group’s aims of taking on larger construction projects andleveling off operation. We have even taken on two large-scale construction contracts with an initial value in excess of ¥7 billion. In addition to building a
construction framework suitable for handling large-scale projects, we have been improving the gross margin of construction work under strict cost control.

The actual completed structure

Sustainability■ Chugoku Branch■ Shikoku Branch■ Kyushu BranchBusiness Strategies

SHO-BOND CORPORATION

Construction Orders and Net Sales

43.5

A 3D model simulation

378 employees

8 branches(Billion yen)50

We are gradually introducing 3D-CAD to construction sites in order to raise
productivity and quality and to visualize construction processes. 3D models
enable users to check the condition of a structure from various angles, andthey can be used to improve construction quality by discoveringinconsistencies between drawings and the actual structure, as well as byidentifying any points of interference between newly added members andthe existing structure. Issues can be solved before work even begins byusing 3D model simulations at the design stage. This contributes to making
construction processes more efficient and to raising productivity. It is also
possible to use 4D models, which are 3D models with a time axis added, atthe same time. This enables the visualization of the entire construction
process, from the pre-construction stage to completion, facilitating ashared awareness among large numbers of people. In terms of safety, 4D
models can also be used to check each step of a work process in advanceto understand and predict potential hazards, thereby enhancing safety.

Management Strategies

Overview of West Japan In-house Company

Construction Orders: West Japan In-house Company

In order to further enhance the Group’s strengths and accelerate growth, we are working on upgrading the order receipt strategy and more activities for large
projects and construction work capability (the targets of the current Medium-term Business Plan). At the same time, we are advancing the following initiatives todevelop human resources and establish a robust safety culture.

■ Utilizing 3D-CAD at Construction Sites

Managing Director and General Manager of the West Japan In-house Company
SHO-BOND CORPORATION

The West Japan In-house Company comprises three regional offices(Chubu, Kinki, and Nishi-Nihon) and each of these regional offices isaffiliated to the Kako Group companies. We operate over a wide area
covering South and West Japan.
Each branch of SHO-BOND CORPORATION primarily undertakes
general construction contracts with a focus on large-scale projects. The
Kako Group companies receive orders from national and local
governments taking advantage of being based in the district, as well as
undertake subcontract work from major construction companies. We ask
our partner companies to take on work within the in-house company on across-regional basis and these partners are playing an important role instrengthening our overall construction framework.
When taking on large-scale projects, we compile information from eachregion under the company’s area, while cooperating with the head office,such as anticipated expressway construction orders and personnel
information, so that it is available on the in-house company-wide basis. For
human resources development, we approach skill improvement from apeculiar perspective. We carry out a questionnaire of all young trainees inadvance and then plan experience-based training programs that cover
topics identified through the results.

Main Initiatives

What is the SHO-BOND Group?

At the West Japan In-house Company, we aim to achieve further growth by positioning “maintaining
growth,” “employee education,” and “strengthening our base” as priority issues. Accordingly, we will
strengthen our foundation through investment in people. When we receive orders for large-scaleconstruction projects from expressway companies, we decide whether or not to take an order to establish
a proper workforce framework and personnel allocation.

FY2022
Private sector

SHO-BOND 2022 Integrated Report34

Feature

Various Repair and Reinforcement Construction Projects

Expressways

Ministry of Land, Infrastructure, Transport and Tourism■ Measures for Building National Resilience■ The Difficulty of Construction Work On

There are many structures that have been in use for over 50 years
and as they age, damage and deformities of these structures are
becoming apparent. Therefore, expressway companies arelaunching the large-scale renewal and repair project in order torestore these structures to their original state and even enhance
performance and functionality, thereby ensuring the long-termsoundness of the expressways. One of the main characteristics ofrenewal work is that it has a large impact on society because traffic
needs to be restricted and sometimes detours are set up for longsections of road during long construction periods. Also,
construction on expressways in urban areas is often difficult due torestrictions such as limited working space where the expressway
passes directly over a major arterial road.

Due to the social importance of expressways, carrying out
construction work while they are in operation involves various
restrictions, including in terms of safety and scheduling.
Advancing construction on a structure involves a wide range ofdifferent organizations, such as the organizations managing theroads leading in and out the section of road and other roads thatrun alongside it. Coordinating all these organizations requires a
great deal of time. Despite these difficult conditions, once work
has been safely completed and the structure is in sound condition
for use, it becomes social infrastructure that can be passed on to
next generation, which is enormously satisfying.

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is
carrying out many projects under its Fundamental Plan for National
Resilience, including measures to tackle aging infrastructure andstrengthen seismic functions. We are engaging in these projects,
primarily for seismic strengthening work. We are focusing on tacklingthese projects not only from a technical perspective, but also by
raising efficiency and productivity through the introduction of
construction DX. We are actively incorporating measures for
improvement of construction industry advocated by MLIT, and in
FY2022, we were evaluated highly by the ministry and designated as
a company of excellence in construction by its several regional offices.

Seismic strengthening work involves attaching aseismic devices
using anchor bolts, so there is a risk that boring will damage
important members within a structure. There are many instances
when construction cannot go forward according to the originalcontracted plans because the interior of the existing structure is
not visible. As a company specializing in maintenance, coming
together and leveraging our ingenuity to overcome successive
problems like these is worthwhile work. In FY2022, we received
several awards from regional offices of MLIT due to our efforts inthis area.

■ Maintaining and Managing Structures through Cooperation with Bridge Doctors■ PR Representative for Expressway Renewal Work

In order to extend the service life of highway bridges, MLIT has
established the Bridge Doctor system, which aims to apply
technical guidance and advice from experienced academic
experts to infrastructure maintenance. We helped this initiative by
the attachment of sensors that continually monitor the damage
situation of a bridge and initial data collection. We are also
participating in social infrastructure maintenance andmanagement projects operated through industrial-governmentalacademic partnerships.

Business Strategies

Expressway renewal work is carried out on a section of a majortransportation network so it has a considerable effect on society.
Therefore, we work to gain the understanding of road andtransportation administrators regarding the importance of renewal
work, and request their cooperation with publicity activities aimed
at regular road users, including by posting notices of construction
work on electric signs and distributing leaflets. We also open
sections of our construction sites to visitors such as the press
and educational institutions in order to communicate the current
status of social infrastructure to wider society and promote theimportance of renewal work.

What is Already There

Renewal work underway
An inspection by a Bridge Doctor

Private Sector and Others■ Receiving Double Awards■ Work on Private Sector Structures■ Combining Construction with Service

There are approximately 730,000 bridges in Japan and about 90%of these are managed by local governments. Mino Bridge is a
116-meter-long steel stiffened suspension bridge which crosses the
Nagara River in Mino City, Gifu Prefecture. It started service in 1916,
giving it significant historical and technological value as Japan’s
oldest modern suspension bridge. We were able to participate in the
repair of the valuable bridge. Although the contract for this project
was with Mino City, as the bridge is an Important Cultural Property,
construction was carried out under designs and supervision by theJapan Cultural Heritage Consultancy, a design company entrustedwith the project by the Agency for Cultural Affairs.

As an Important Cultural Property, the bridge needed to be repaired
without any changes to its original form under the Act on theProtection of Cultural Properties. Therefore, during the work we had
to be extremely careful, keeping records of the position of every
member that was removed and the diameter of each rivet, as wellas carefully sorting the separated members by type and organizingthem in a way that made it clear where and how it should bereattached. This required a large amount of time and manpower,
but we were able to repair and restore the bridge without losing anyof its value as a cultural property. As a result, the Group received
double awards for the first time in our history, the Japan Society of
Civil Engineers’ 2021 Tanaka Award (Renovation Category) and a2021 Japan Construction Engineers’ Association Award.

We provide a one-stop service that delivers solutions to issues
such as damage to harbor facilities and buildings caused byaging, revisions to laws and regulations, damage from natural
disasters, and changes to a structure’s purpose. This service
covers everything from investigations and diagnoses to designand construction work. In our construction efforts, we have raised
the value and extended the service life of the buildings we haveworked on by making them safe, secure, comfortable, andresilient to disasters. We have also contributed to conserving
Japan’s beautiful cultural heritage by participating in therenovation of historic buildings.

A large proportion of renovation works are carried out while a facility
is still in use, so we take a customer-first approach. Compared to
new construction, renewal work requires that more attention is paid
to curtailing public nuisances, such as vibrations and noise, andcontrolling waste emissions, and there are many other challenges,
including a tendency toward longer construction schedules.
Despite such difficulty, we work closely with our customers toensure that construction moves forward without issue and that we
can safely hand over the completed structure. Seeing our customers
using their renovated buildings brings us the greatest joy.

Governments – The Repair of Mino Bridge as a Case Study■ Unravelling the History■ Valuing Relationships of Trust with Customers

Company Information

We take a wide-ranging approach to the private sector customersof our group companies and other partner companies, and if any
issues arise, we go to the site to survey the actual situation andoffer a variety of solution proposals. By building in-person
relationships with customers in this way, we are able to detect
any issues at an early stage, contributing to extending the service
life of facilities. The relationships of trust we build with ourcustomers are long-lasting, including providing maintenance andoperational management support after renewal work has been
completed.

This project was the first large-scale repair work carried out on
Mino Bridge since its designation as an Important Cultural
Property. When checking the specifications of the steel parts, oneof the main themes of the Japan Cultural Heritage Consultancy’s
work was checking the roots and repair history of each memberof the structure. We actively contributed to these investigations.
The investigation was a success, with the results revealing thatthe initial steel members that are still in use today were
manufactured at the Imperial Steel Works in Yawata.

Corporate Governance■ Overview of Construction Works for Local

Sustainability

Local Governments

Management Strategies■ Passing on Social Infrastructure to Next Generation

What is the SHO-BOND Group?

■ Large-scale Expressway Renewal and Repair Project

Reinforcement work in progress

Mino Bridge (Photos: Japan Cultural Heritage Consultancy)

35

SHO-BOND 2022 Integrated Report

SHO-BOND 2022 Integrated Report36Manufacturing and Sales of Construction Materials SHO-BOND MATERIAL CO., LTD.

Overview of SB&M

Shigeru Naraoka

President and Representative Director
SHO-BOND MATERIAL CO., LTD.

Group Product Sales(Billion yen)
10

7.8
5.9

5.7

8.2

6.5

Approaches for solving issuesof customers / administrators in Japan and other countries

0

FY2018 FY2019 FY2020 FY2021 FY2022

Activity Report

Sales ofproducts

SHO-BOND

Challenges
andInnovation

Diversifying Product Sales Methods

MITSUI & CO., LTD.

Investigation
andDiagnosis

Proposals

Sales ofconstruction
methods
TechnologicalsupportInheriting andpassing on social
infrastructure to
the next generationin good condition

Export of maintenance technologies
New markets – Challenges and Innovation Demand for needs
Customers / Administrators

GlobalActivity Report

Construction site (CPJ-L)

Scenes of operations in Thailand

Company Information

Example of a Straub pipe coupling(Straub Grip G-type)

In FY2022, SHO-BOND and Mitsui, as well as SB&M and CPAC, worked together both in Japan andoverseas to advance business while leveraging their respective strengths.
Travel and behavioral restrictions during the protracted COVID-19 pandemic significantly impacted
our Thai and other overseas businesses. Even seconded employees of the Thai joint venturecompany could not visit sites or customers. However, we utilized web meetings connecting multiple
locations and developed sales operations by exchanging ideas between local and Japaneseemployees. We also secured repair projects for ports and cement factories with the support of thesales network of SCG, CPAC, and MITSUI & CO. (THAILAND) LTD.
Similarly, overseas business development in countries other than Thailand has made steadyprogress through the Web, taking advantage of Mitsui’s overseas network of offices in 62 countries
worldwide.
While overseas businesses faced difficulties, our sales activities in Japan increased even underbehavioral restrictions. We have been getting more and more positive feedback by responding flexibly
to customers’ needs, for example, by conducting online sales to new customers through Mitsui’s
network and repeating site visits to lead up to mockup (trial construction) and product sales.
SB&M will continue to make steady progress toward business growth by leveraging the strengthsof a joint venture and combining the capabilities of the Group and its partner companies.

Corporate GovernanceTaking Advantage of the Joint Venture’s Strengths toMove Forward Despite the COVID-19 Pandemic

Stainless Steel Mechanical Pipe Joints (Straub Pipe Couplings)
We have been manufacturing and selling Straub couplings for 40 years, from 1982 to 2022, as
mechanical pipe joints for air conditioning and sanitary equipment piping. Over this period, we havedeveloped lightweight, improved fastening, high pressure-resistant, and other products in response tonumerous requests from our customers. These have greatly pleased workers and clients on actual
construction sites by saving labor and shortening construction schedules. We will continue striving tomeet the expectations of our customers.
As a measure to grow sales in new fields, we have jointly developed a fire-resistant coupling for
flammable gas pipes with the Japan Gas Association and five gas companies, and this is now being
launched to market. The product has been highly evaluated by gas-related work sites and has received
the Japan Gas Association’s 2022 Award for Engineering in recognition of its excellent workability. Also,
our couplings are made from stainless steel, giving them long service lives and semi-permanent
recyclability. This contributes to lowering environmental impact, including reduction of industrial waste
and CO2 emissions.

Customers / Administrators
Multifaceted (market sectors / customers)
approach for sales

Technologies

Network in Japanand other countries

In February 2022, we independently acquired a construction license in order to expand sales of new
products and meets customer requests that we carry out work onsite. This has enabled us to take on
construction service contracts so that we have been accepting construction orders that incorporate
sales of our products. In particular, we had been having trouble growing sales of CPJ-L, a concrete witha low-elasticity latex and ability to harden very quickly that we added to our lineup in October 2020, as it
was difficult to meet customer needs through just product sales. However, being able to mix and apply
the product onsite ourselves using a specialized mixer has led to a large increase in sale volumes.
Furthermore, we are also able to leverage our advantage of selling adhesives for pouring concrete toconstruction joints. Going forward, we will develop sales of products paired with onsite construction
across Japan.

2

Demand for needs

Sustainability

1

Japan

Business Strategies

5

SB&M was established in April 2019 with a 51% investment by SHO-BOND Holdings Co., Ltd. and a 49% investment by MITSUI & CO., LTD. It is the first joint
venture company in the history of SHO-BOND. A total of nine employees seconded from both companies work together to develop new businesses incooperation with SHO-BOND Group companies and Mitsui. The company’s business represents a new challenge for the SHO-BOND Group. We are working tocreate new business areas both in Japan and overseas.
In November 2020, the company established a joint venture company (CPAC SB&M Lifetime Solution Co., Ltd.) with the Concrete Products and AggregateCo., Ltd. (CPAC), a subsidiary of the Siam Cement Group (SCG), a major conglomerate in Thailand, to develop infrastructure maintenance business inSoutheast Asian countries starting from Thailand.
SB&M is working to expand sales of products and construction methods, listening to structural maintenance issues of customers in Japan and overseas andtaking a problem-solving approach. Based on SHO-BOND’s technology, the company handles a wide range of products, including structural repair resin,
earthquake-resistant equipment and expansion equipment for bridges, and various pipe joints. It also introduces high-quality repair products from overseas into
Japan.
At the Thai joint venture company, two seconded employees are currently playing a leading role to transfer SHO-BOND’s technology. Thailand isexperiencing a stage where aging infrastructure issues are beginning to surface. We are conducting educational activities to raise maintenance awareness andsales activities to show maintenance benefits from the perspective of life cycle costs. SB&M cooperates with SHO-BOND Group companies to support local
businesses.
The company is also considering the development of new overseas businesses to contribute to other countries by exporting the technologies and knowledge
it has cultivated and gained in Japan.

Management Strategies

Overview of SHO-BOND MATERIAL CO., LTD.
SHO-BOND MATERIAL CO., LTD. is a core Group company that engages in the manufacturing and salesof construction materials. We were established in July 2016 through the merger of SHO-BOND Chemical
and SHO-BOND Coupling to become both a manufacturer and seller of resin products, construction
materials, and pipe joints. We produce new construction materials and methods that accurately respondto changes in the maintenance market and the needs of our customers by combining chemical and civilengineering technologies within a comprehensive framework spanning from design and development
through to manufacturing and sales. The product improvement and new construction method ideas wegain from hundreds of SHO-BOND CORPORATION construction sites across Japan are the driving force
behind our product development capabilities. We continuously evolve our resin products and construction
materials alongside construction sites and boast a broad lineup of products tailored for the various effects
of deterioration and damage that afflict structures.

SHO-BOND & MIT Infrastructure Maintenance Corporation (SB&M) combines SHO-BOND’s technological capabilities with the networkand business development capabilities of MITSUI & CO., LTD. (Mitsui) to provide solutions using SHO-BOND’s technology for
infrastructure and private facilities owned and managed by customers in Japan and overseas. The company builds and develops new
business foundations for the SHO-BOND Group and promotes activities that create a safe and secure social environment.

What is the SHO-BOND Group?

We are contributing to maintaining and updating social infrastructure by supplying products with excellent
performance in relation to cost that can meet customers’ needs and earn their trust. We work to build
frameworks for safe and efficient production activities, highly reliable quality assurance activities and theaccurate supply (delivery) of products.

Overseas Businesses SHO-BOND & MIT Infrastructure Maintenance Corporation

A port repair site in Thailand

37

SHO-BOND 2022 Integrated Report

SHO-BOND 2022 Integrated Report38Research and Development

Technical Research Institute
Cooperation Among Divisions and Group Companies
Led by the Engineering Division, which gathers information on issues faced by customers and the Group, the Group conducts research and development at theTechnical Research Institute and commercializes products at SHO-BOND MATERIAL CO., LTD.
Feedback

Overview of Technical Research Institute

Customers
SHO-BOND CORPORATIONGroup Companies

Provide repair and reinforcement
materials and methods

Engineering Division
Research and Development Meeting

Request for
research anddevelopment

Technical Research Institute

Progress report

SHO-BOND MATERIAL CO., LTD.
Commercialize

Development Examples
Specimen Preparation Building

Large Testing Laboratory

Main Building

Research Building

1

Training Building

Wheel load running test

Exposure Testing Area

Inorganic Materials Research Building

Outdoor Exhibition Site

2nd Wheel Load Running Test Laboratory

2

Technical Research Institute (SHO-BOND CORPORATION)
Example of EPMA analysis

Aerial view of the Technical Research Institute and Tsukuba Training Center

Illustration of SHO-BOND New Clear Cloth Method

Life Extension Methods for Small and Medium-sized Bridges(CPJ-L, SBJT, and SB Primer)

Before construction

CPJ-L demo attended by customers

Bending test of deck slabs repaired byresin injection

Received the Special Award at
the First Infrastructure Maintenance Awards from JSCE

AI-based Repair Design Productivity Improvement System (AI Sindanshi *)Traditionally, causes of deterioration of concrete structures have been identified
based on detailed site investigation and material analysis results of samples takenfrom deteriorated parts. In addition, the repair method had to be selected fromvarious choices corresponding to the identified causes of deterioration according tosite conditions.
As a tool to improve the productivity of this process, we have developed an
artificial intelligence (AI) system for diagnosing deterioration and selecting repair
methods (AI Shindanshi). The basic system is constructed by deep learning by AI
based on abundant in-house repair work examples. The system enables theidentification of deterioration factors and the immediate proposal of optimal repair
methods simply by providing deterioration images and location information of thetarget structure. We plan to utilize “AI Shindanshi” as a tool for making technicalproposals in planning for extending the life of structures of customers and otheractivities to contribute to improving business efficiency.
*AI Shindanshi (“AI診断士 ”) is a registered trademark of SHO-BOND CORPORATION in Japanas of March 2023.

Photo data

Structural specifications
Location information

Refer to meteorological observatory information,
ASR aggregate distribution, separation distancefrom shore, latitude, etc.

Specification data

Location information(latitude and longitude: GPS)

Total judgment
AI-based image diagnostics

AI-based data diagnostics

Company Information

SHO-BOND 2022 Integrated Report

rete

Corporate Governance

39

Conc

After construction

3

JSCE Infrastructure Maintenance Awards website (Japanese version only)
https://inframaintenance.jsce.or.jp/hyousyou/announcement1/

New Clear Cloth Primer

Small and medium-sized bridges are important infrastructure for community roads regardless of
their traffic volume. However, they are often managed by local governments lacking both financial
and human resources, requiring general-purpose construction equipment, workability, andeconomic efficiency. To meet these needs, we have developed life extension methods that satisfy
these requirements and provide sufficient durability. This method involves removing the existing
pavement from the concrete deck slab, applying a highly permeable primer (SB Primer) and anadhesive for jointing (SBJT) to the top surface of the concrete deck slab, and then placing paving
and reinforcement material, a low-elasticity latex modified fast curing concrete (CPJ-L) mixed witha small mixer. The main material, CPJ-L, has various features, such as fast curing that leads to ashorter road closure time, durability, and load resistance. We expect it to become an effective
tool for local governments to promote longer bridge life.

Various Research and Development Themes
In recent years, we have been working on the following researchand development themes:● Concrete coating methods with few work processes that canbe easily conducted by non-skilled workers, and one-pack type
coating materials that are easy to handle● A method to ensure that anticorrosive agents for reinforcing
bars penetrate from the surface of the concrete to the interior
as a preventive maintenance to be applied before thedeterioration of structures● Special anchors for adhesive injection and special concrete
placing systems for the surface replacement to repair deckslabs that have deteriorated significantly due to repeated heav ytraffic loading
In addition to these themes, we are constantly conducting
research and development on several other themes.
In Februar y 2022, the Institute received the Special Award at
the First Infrastructure Maintenance Awards from the Japan
Society of Civil Engineers (JSCE) for its longstanding researchand development activities that have contributed to thedevelopment of infrastructure maintenance.

New Clear Cloth Resin
New Clear Cloth Putty

Sustainability

Tsukuba Training Center

New Clear Cloth Resin
New Clear ClothBusiness Strategies

With the aging of infrastructure constructed during the period of high economic growth, concrete pieces
falling from elevated bridges and other structures have become apparent, and anti-falling measures havebeen implemented. In addition, since the Sasago Tunnel Ceiling Collapse, inspections have become
mandatory every five years, and facility managers are required to conduct a close visual inspection. For
this reason, there is a need for a method that allows direct visual inspection of concrete conditions evenafter anti-falling measures are implemented, but the transparency has been insufficient with existing
methods.
To meet this demand, we have developed a high-performance anti-falling method that is transparent
and has excellent visibility of the substrate. The method combines excellent transparency withload-bearing performance and deformation performance to support falling objects and demonstrates
sufficient performance even in the temperature range of -30 to 50°C. We expect this method willcontribute to the maintenance and management of concrete structures and the prevention of third-party
damage.

Training Bridge

1st Wheel Load Running Test Laboratory

A High-performance Anti-falling Method with Excellent Transparency (SHO-BOND New Clear Cloth Method)

Management Strategies

The SHO-BOND Group has contributed to society through the research and development of its own repair technology, believing that the combination ofchemical and civil engineering technologies is important for effective infrastructure maintenance. Technical Research Institute played a central role in this effort.
In 1996, the year after the Great Hanshin-Awaji Earthquake, SHO-BOND opened its third research laboratory (with a site area of approximately 22,000 m²) inTsukuba Science City. We named the institute the Technical Research Institute based on the philosophy of raising repair skills to the level of scientific research.
The institute focuses on clarifying the mechanisms of structural deterioration and damage, improving fatigue durability against large vehicles, and researchingand developing effective reinforcement technology for earthquake disasters. The research facility specializing in the repair and reinforcement of structures andequipped with a lot of state-of-the-art equipment is unique in Japan, and many materials and construction methods developed have been adopted as standards
for repair methods. The research staff consists of researchers with backgrounds in chemistry (organic materials) and civil engineering (inorganic materials andstructures).

Request for ideasof research anddevelopment

What is the SHO-BOND Group?

As a leading company in the structure maintenance business, we are contributing to realizing a safe society through our advanced
technological development capabilities. Our development themes are based on the diverse needs of customers in various fields andour construction sites. In cooperation with public and private research institutes, we use open innovation research and development
methods to enhance the results and speed up the process.

AI-based countermeasure method selection

Diagram of AI diagnosis
SHO-BOND 2022 Integrated Report40Investigation / Diagnosis / Design Maintenance Technology Inc.

Motivation for Establishment

Overview of Maintenance Technology Inc.

Providing Learning Opportunities Based on Practical Training

Maintenance Technology Inc., established in 2011, is the only company in the Group
engaging in construction consulting services. As of July 2022, the company has 23
employees and three sales offices: Tokyo, Nagoya, and Osaka. The breakdown of thecompany’s operations is 75% consulting services and 25% operations within the Group.
The consulting services include investigation, diagnosis, analysis, and repair design ofbridges, tunnels, and other public structures. The operations within the Group mainly
include a shape measurement of structures using 3D scanners, a photographic
measurement using digital cameras, and an analysis of SHO-BOND resin products.

Full view of Tsukuba Training Center

Concept of the Facilities

Site investigation

Introduction of Operations
The following are two representative operations of Maintenance Technology Inc.
1

Business Strategies

The concept of the facilities is to provide classroom lectures on the intentionof adopting each construction method and material, points to note inconstruction, safety, and others, and then to provide practical training
during the training period to consolidate the knowledge. With an eye on
training not only for our employees but also for employees of domestic andoverseas partner companies that have little experience in repair work, we
use the same repair objects and materials in the practical training as thoseat the construction site so that they can experience the feeling of the site.
The main facilities are a seminar room, a construction training room, asafety training room (with a real scaffold, mannequins, danger experienceequipment, and VR danger experience equipment), and a full-scale training
bridge (a two-span simply supported three I-girder bridge).

Management Strategies

Recently, a wide variety of structural repair methods, including preventive
maintenance, anti-deterioration, seismic reinforcement, and component
replacement methods have been developed. Materials have also become
diverse, including concrete, steel, resin materials, and new materials suchas aramid and carbon fiber. Familiarity with these methods and materials isessential to ensure construction quality. In addition, the Group’s abundant
proprietary methods and materials are valuable assets, and we consider it
an important task to ensure that these technologies are passed on to thenext generation. In order for all employees to master these technologies,
we decided that a full-scale training center would be necessary because
the existing classroom lectures and on-the-job training at construction sites
were insufficient. For these reasons, in October 2021 we established the
Tsukuba Training Center with an area of approximately 5,000m2 near theTechnical Research Institute.

What is the SHO-BOND Group?

Tsukuba Training Center

Structure Measurement and 3D-CAD Data Preparation Using 3D Scanners

Repair and reinforcement work consists primarily of installing or replacing members on
existing structures. For this reason, accurate measurement is often difficult when existing
structures have complex shapes or narrow spaces. In response to this problem,
Maintenance Technology Inc. has begun using a recently developed high-performance 3D
scanner device to measure the dimensional relationships of existing structures accurately,safely, and quickly. We also convert the point cloud data obtained from 3D scanners into
3D-CAD data to check the degree of interference between members and the scope of
construction.

Training bridge■ Training building (total floor space of approx. 1,000m²)

Structure measurement using a 3D scanner● Seminar room: A classroom for up to 54 participants● Construction training room: A seminar room where participants can learn how tohandle repair materials

2

safety activities

As the scale of construction projects increases, it is difficult to ensure measurement accuracy using the conventional method of manually measuring the drilling
position of concrete. Accordingly, we calculate 2D and 3D coordinate positions using photographic measurement technology with a digital camera to accurately
determine the coordinate positions to be found, such as the drilling position of concrete. Based on the measurement results, members are manufactured infactories.

● Safety training room: A seminar room where participants can experience the significance of■ Training bridge (10m x 20m)

Classroom seminar

Photographic Measurement Using Digital Cameras

Morning meeting practiceCompany Information

Photographic measurement
Practical training in applying organic materials

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SHO-BOND 2022 Integrated Report

Practical training in installing bridge fall prevention equipment(at the training bridge)

Corporate GovernanceHanging experience of a safety belt

Sustainability

Overview of the Facilities

Practical training in finding rebars location

The above two measurement operations involve technologies for accurately measuring existing structures, which are very important for repair and reinforcement work.
We will stay up-to-date with the latest trends in new technologies, and contribute to improving the construction quality on sites.

SHO-BOND 2022 Integrated Report42