About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Marketing and Sales DivisionMarketing and Sales Division
Accomplishing the goals of the Medium-term Business Plan is the primary objective of
this division. Our main activities are planning and implementing strategies for capturing
orders for the whole Group while working with in-house companies.
One of our priorities is the receipt of large orders involving the Expressway Renewal
Project. Maintaining a relatively consistent level of quarterly construction sales is anothergoal. This requires the proper overall balance of orders while receiving small and midsize
orders from national and local governments concerning the policy of Building National
Resilience. I believe the business climate for new orders will be favorable in FY2024, withsome variations among different regions of Japan. We will continue to be selective
about the orders we receive by emphasizing profitability while optimizing theassignments of engineers as needed. We will also take on new challenges involving
technological advances and diversification of types of work in the field of infrastructure
maintenance. Activities are aimed at upgrading our technologies and our construction
capabilities as well as the skills of our people. Another key role of this division across theorganization is digital transformation initiatives for building an even stronger base forour business operations and managing construction sites more efficiently.

Digital Transformation Activities
The DX Promotion Office was established within the Marketing andSales Division in 2021 to keep up with the rapid speed of digitization.
Leading and supporting cross-departmental digitization to increase
the efficiency of construction site management and strengthening thebase for business operations are the main roles of this office.

Takayasu Shimada
Director of Business Strategies,
SHO-BOND Holdings Co., Ltd.
Managing Director and General Manager ofMarketing and Sales Division,
SHO-BOND CORPORATION

Risk and Opportunity in the Japan Construction Business[ Risk factors ]● Shortage of construction workers due to Japan’s
falling population● Risk involving accidents and other aspects of safety● Quality management risk involving defects andother problems● Intense competition for orders in the Expressway
Renewal Project[ Opportunities ]● Growing demand for long-life construction due to accelerated
measures to address aging infrastructure.
● Growing demand for reinforcement due to the greater severity
and frequency of natural disasters● Increasing importance of infrastructure preventive
maintenance technologies

A Stronger Foundation
Activities of the DX Promotion Office are centered on the effective
utilization of data accumulated within the Group and the use of AI.
The development of AI Shindanshi, an AI system that reproduces theadvanced deterioration diagnosis technology of the Group’s
engineers, was finished in FY2022. In the future, SHO-BOND hopes to
use AI Shindanshi to help local governments, private-sector
companies, and organizations in other countries that have a shortageof engineers to place construction orders.
Data science and AI programming training programs are helping
to increase the speed of the digital transformation at the Group.

Using AI Shindanshi at a job site

Strengths● Comprehensive infrastructure maintenance capabilities from a broad range of perspectives● Accomplishments spanning 65 years as a specialist in the field of infrastructure maintenance● Construction skills and technologies available to provide the best methods for repairing various types of damage

Materiality
Activities of the Marketing and Sales Division reinforce the comprehensive maintenance system
by utilizing the strengths of the entire organization of the SHO-BOND Group. In addition,
digital technologies are improving the efficiency and productivity of on-site management.

Events in other countries to explain AI Shindanshi’s features

Higher Efficiency to Respond to the New
Overtime Restrictions

Major Activities
For large-scale construction projects of ¥2 billion or more, theLarge-Scale Construction Management Committee conducts
pre-order examinations within the Group. The approaches to using a
JV and challenging projects are also discussed. In FY2023, orders
were down significantly, partly due to a decline in bridge repair
work from some expressway companies. Despite this downturn,there was a construction gross profit mainly because of the receiptof additional orders caused by a large volume of design changes atongoing projects.

31

SHO-BOND 2023 Integrated Report

In FY2024, we will work on complex construction and JV projects
while maintaining our selective stance regarding new orders, aiming
to achieve our construction order plan of ¥81 billion. I believe the key
to accomplishing this goal are effective information acquisition andoptimized resource allocation.
To motivate employees to develop innovative materials andincrease sales, we have established several award systems. In addition,
we have built integrated sales channels within the Group to maximize
sales of construction materials.

An example of an AI Shindanshi display

Starting in April 2024, construction companies in Japan will have tocomply with a limit on overtime working hours. In the constructionindustry, companies are using IT to manage construction sites more
efficiently. This will require verifying and using new software as well
as developing applications specifically for the characteristics of theinfrastructure maintenance business.
Space is extremely limited at infrastructure maintenance job sites
because work must be done in tight spaces at a diverse array of
existing structures. Furthermore, this type of work is characterized byconstantly changing processes for completing projects. As a result,the use of machines and unified work processes is usually notpractical. At the Group, the digital transformation does not entail
large-scale initiatives like automated construction work and urban OS(a platform for data). The objective is to create a unique-style of thedigital transformation that unifies the common parts of various sitesof SHO-BOND.

32

About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

East Japan In-house Company /West Japan In-house Company

East Japan In-house Company

West Japan In-house Company

During the current Medium-term Business Plan, our central goal is to build a robust
foundation for the future to become a company that can keep pace with changes in thebusiness climate. Under this basic policy, we have established and are pursuing a businessstrategy named “Triple P”: (1) large-scale projects (Projects), (2) unified actions throughout
our company (Policy), and (3) education and training programs (Progress). We will leverage
our technologies and aim for more progress that connects to future generations.
One aspect of these activities is joint ventures with bridge manufacturers to take onlarge expressway projects. This collaboration started in the Tokyo area and has been
producing benefits. We plan to expand collaboration activities to the Tohoku region
next. Progress will require a construction framework and technologies capable ofhandling large projects. The employees of partner companies are receiving construction
management training at SHO-BOND’s Tsukuba Training Center. In addition, we will
increase the emphasis of R&D activities on improving the efficiency of construction
processes and the quality of our work.

West Japan In-house Company is now in its fourth year of operation. Initially, ourprimary goal was fully utilizing the advantages of the in-house company structure to
improve order management and organizational operations to handle even larger
projects. Today, we are investing in human resources with emphasis on “maintaining
growth,” “strengthening our base,” and “educating employees.” I believe thatcreating and providing more pleasant and productive workplaces for each employee
will strengthen our base of operations and lead to further growth.
Large-scale orders from expressway companies are regarded as a project for theentire in-house company. These projects require an optimal construction frameworkand staffing. To accomplish this and provide outstanding quality, we will coordinate
closely with deployment technicians and partner companies, regardless of thejurisdictional areas of the three branch offices.

Noriyuki Hosaka
Senior Managing Director and General Managerof the East Japan In-house Company,
SHO-BOND CORPORATION

Major Activities

Major Activities

Recruiting and training people from other countries is an importantpart of “Triple P” activities concerning education and training
programs. There are currently five non-Japanese employees at the East
Japan In-house Company. They are assigned to three departments
including construction, sales, and technology, with the expectation tocope with future changes in the business environment and play wide
range of important roles, including in Japan and overseas.
An order for maintenance of the Tengu Bridge on the Tohoku
Expressway received by a SHO-BOND joint venture with a bridge
manufacturer demonstrates the benefits of measures taken forlarge-scale projects. The project involves a rigid frame bridge with
V-shaped piers in a mountainous location. We are making the best of

our technical skills and know-how to meet the demands of seismic
reinforcement to preserve the attractive profile of the bridge andensure the ease of subsequent maintenance work.

Non-Japanese employees

Human resource investments are one of the highest priorities of WestJapan In-house Company. Training programs and support for earning
professional qualifications are two major activities. Training by senior
employees in various fields is conducted face-to-face and online toachieve a better understanding. For qualification-earning support, wehave designed a system that allows employees to receive support andhelp from individuals who have passed the exams already.

Topic
SHO-BOND CORPORATIONThe East Japan In-house Company has a strong commitment to R&D
to improve construction site efficiency and quality. One highlight isthe development of a temporary support jack with a movement
restriction function, resulting from cooperation between job site
personnel and the Technical Research Institute. The jack is used toreplace bearings between the piers of a bridge and its deck. This
innovation greatly reduces the risk of a bridge deck collapse in theevent of an earthquake during the jacking process. Furthermore,construction is faster and less expensive because several bearings canbe replaced simultaneously. Increasing the use of this jack is expected
to further differentiate SHO-BOND from competitors.

An installed jack featuring a movement
restriction function

SHO-BOND 2023 Integrated Report

This method enhances the motivation of both sides and contributes
to the advancement of the whole Group as well.
Furthermore, we aim to create a culture of safety with ourpartners by sending employees from SHO-BOND and partnercompanies to the Tsukuba Training Center to improve each other's
safety awareness and technical skills.

The Tengu Bridge on the Tohoku Expressway

Topic

33

Tsuyoshi Koga
Senior Managing Director and General Managerof the West Japan In-house Company,
SHO-BOND CORPORATIONGroup Companies

Kita-Nihon
Regional Office

Hokkaido Branch /Minami-Tohoku Branch /Kita-Tohoku Branch

TOHOKU KAKO CORPORATION

Shutoken Hokuriku
Regional Office

Tokyo Branch /Chiba Branch /Kanto Branch /Hokuriku Branch

KAKO CORPORATION /KANTO KAKO CORPORATION /YOKOHAMA KAKO CORPORATION /NIIGATA KAKO CORPORATION / Kyna-Tech
7 branches

Overview of West Japan
In-house Company
The West Japan In-house Company has
three regional offices (Chubu, Kinki, andNishi-Nihon) and each office is affiliatedwith KAKO-Group companies. Operations
cover south and west Japan. Sales in
FY2023 were ¥36.2 billion and there
were 393 employees as of the end ofJune 2023.

6 group companies

Overview of East Japan
In-house Company
The East Japan In-house Company
consists of the Kita-Nihon Regional Office
and Shutoken Hokuriku Regional Office.
The operations of the regional offices
include KAKO-Group companies and the
Shutoken Hokuriku Regional Office also
encompasses Kyna-Tech. Overall, thiscompany is responsible for operations in
Hokkaido, Tohoku, Kanto, and Hokuriku.
Sales in FY2023 were ¥38.2 billion andthere were 405 employees as of the endof June 2023.

SHO-BOND CORPORATIONGroup Companies

Chubu Regional Office

Nagoya Branch /Shizuoka Branch

CHUBU KAKO CORPORATION

Kinki Regional OfficeOsaka Branch / Kyoto Branch /Kobe Branch

KANSAI KAKO CORPORATION

Nishi-Nihon
Regional Office

Chugoku Branch /Shikoku Branch /Kyushu Branch

CHUGOKU KAKO CORPORATION /SHIKOKU KAKO CORPORATION /KYUSHU KAKO CORPORATION
8 branches

The West Japan In-house Company held its first symposium for
women in administrative positions. Participants came from the three
regional offices and the General Affairs Department of the head
office. Based on the results of a preliminary questionnaire,participants shared thoughts about working more efficiently, dealing
with various issues, working styles and career paths for women, andother subjects. There was also an opportunity to talk with thein-house company general manager. Participants reported learning
about the operations of other offices and changing their thinking
about career advancement after listening to the general manager
and the female General Affairs Department manager. More of these
activities will take place to enable women to realize their fullpotential and career goals.

5 group companies
The symposium for women in
administrative positions

34

About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Engineering Division

Engineering Division

The roles of this division are collecting information about infrastructure maintenancetechnologies, developing new technologies, and overseeing the activities of technology
units throughout the SHO-BOND Group.
Constantly upgrading the technological skills of employees is essential as the Grouptakes on projects that are even larger and more complex. Advances are backed bymeasures for the fusion of existing technologies at the Group and digital technologies
through digital transformation. I think the Digital Transformation Technology
Committee, which was formed two years ago, is steadily producing benefits in terms ofimproving the technical level of employees. The development of new technologies takes
place mainly at the Technical Research Institute. We are creating organic/inorganic
materials and innovative construction methods in which these materials are utilized
while targeting the needs of job sites. We also aim for the realization of a decarbonizedsociety through our unique technological development activities.

SHO-BOND Innovations
Labor-Saving Surface Coating Method Using
Water-Based Resin (NEO LINER EX METHOD)

Hiroshi Takemura
Director, General Manager of Engineering Division,and Director of Technical Research Institute,
SHO-BOND CORPORATION

Strengths● Combining chemical and civil engineering technologies to create new technologies● Construction methods and materials specialized in repair and reinforcement● Accumulated technological development capabilities and knowledge centered on the Technical Research InstituteMateriality

Starting with the unique perspective of the fusion of chemical and civil engineering
technologies, the Engineering Division utilizes 3D technology, AI, and many other advanced
technologies. All activities have the goal of more efficient construction processes and higher
productivity throughout the Group. The division has started programs involving the SDGs,
such as research involving environmentally responsible organic materials.

The corrosion of rebar and degradation of concrete, causing pieces tofall off, are problems with the aging infrastructure constructed in Japan
during the rapid economic growth period. Over the years, surface
coating and spalling-prevention methods have been used. However,the numerous and time-consuming steps required by these processes
make them unsuitable for bridges and other locations with time
restrictions. A new method that can be completed faster was needed.
SHO-BOND responded to this challenge by creating a
revolutionary labor-saving coating method with fewer than half thesteps required by conventional methods. Moreover, the use of thesame substance for surface coatings and spalling prevention reduces
the amount of unused and discarded materials. Using a weatherresistant water-based resin (NEO LINER EX), that can integrate anintermediate coating and top coating, shortens the process. Thismethod is also environmentally friendly because it reduces odors andvolatile organic compound (VOC) emissions.
This new coating method has much potential as a technique forextending the lives of concrete structures in a labor-saving andenvironmentally responsible manner.
NEO LINER EX LINING METHOD
for surface coatings

NEO LINER EX SHEET METHOD
to prevent spalling
NEO-LINER EX

NEO-LINER EX

NEO-LINER EX SHEET
NEO-LINER EX

NEO-PRIMER EX

NEO-PRIMER EX

Concr

ete

Concr

ete

Major Activities
The scale and technological complexity of infrastructure maintenancework is increasing in Japan as progress continues with the Expressway
Renewal Project. To perform this type of work even better, SHO-BOND
established a committee to study and review how to deploy digitaltechnology in the infrastructure maintenance field and started a
program where employees can learn 3D CAD, finite element method(FEM) analysis and other advanced skills to raise the technical skills of
all employees and improve productivity. Next, we plan to learn how to
improve construction planning and management using 3D point
cloud data, AR, VR, and other technologies, as well as FEM nonlinear
analysis. At the same time, programs for earning professional
qualifications have been strengthened. There are also many types oftraining programs for mid-career and young employees, female
engineers, and other categories of employees.
For the deployment of AI, we developed a system called AI
Shindanshi, which is an AI diagnosis system incorporating AI that canhelp engineers without maintenance knowledge check the level ofdegradation of concrete structures. In the future, we will develop
other AI assistant tools for engineers at job sites.
In addition, by cooperating with the Technical Research Institute,
we are developing DIY construction methods and materials that allow

35

SHO-BOND 2023 Integrated Report

property management personnel and others at local governments
and companies to perform small repairs on their own.

SHO-BOND Group R&D Flowchart
Engineering Division
Technical Research Institute

Customers’
needs
Requests for
improvements

Commercialize
Joint research
projects

SHO-BOND MATERIAL CO., LTD.

Thickener Permeable Rust Prevention Agent for Rebar(SBLN GEL)
Less than 10 years from now, more than 60% of the highway bridges
in Japan will be at least 50 years old. Maintenance for a longer life isurgently needed. As one way to meet this need, SHO-BOND
developed SBLN GEL, a thickener permeable rust prevention agent
containing a large amount of lithium nitrite, which is effective atpreventing the rusting of rebar. The gel-like substance can be simply
applied to concrete. SBLN GEL then soaks into the concrete, resulting
in a large volume of lithium nitrite reaching the rebar quickly.
Corrosion of the rebar can be prevented for a long time, even in
concrete structures vulnerable to salt damage and carbonation. SBLNGEL received building construction technology certification from theJapan Construction Information Center (JACIC) in March 2023. Thereare expectations for this new technology to play an important role inextending the lives of many buildings and civil engineering structures.

Application of SBLN GEL on a concrete structure

Augmented Reality (AR) for More Efficient andLabor-Saving Construction Management
As the digital transformation of the infrastructure sector advances, theMinistry of Land, Infrastructure, Transport and Tourism made the useof building/construction information modeling (BIM/CIM) mandatory
in the 2023 fiscal year. As the use of BIM/CIM grows, almost anyone
at a construction site will soon be able to easily read blueprints andother drawings. At the Group, technicians are using 3D scanners tomeasure structures, generate point cloud data as polygon meshmodels, and create 3D data of fabricated parts to be installed on
existing structures. By displaying these data on-site using AR
technology, we can make construction management tasks more
efficient. For example, AR display at construction sites makes it
possible to confirm if different materials are interfering with eachother and to simulate the transportation of manufactured parts. In
repair and reinforcement projects, where the placement of largematerials and items with complex shapes at the construction site isoften required, AR simulations conducted before the actual work arevery helpful. AR displays that include results of FEM analysis give jobsite personnel a picture of how installation parts will function. Displays
also provide visualization of tasks requiring caution during construction
to make everyone aware of the need for safety measures.

3D CADNot visible

VisibleAR image

Products and construction methods
Customers

SHO-BOND Group
construction sites

36About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Construction Division

Construction DivisionThis division is responsible for working with the regional offices that manage
construction sites to continue making improvements to the quality of our work andsafety at these sites. Construction staff assigned to construction sites are more than halfof the 985 employees of the SHO-BOND Group. These people perform the critical role ofinteracting directly with customers to complete projects that meet customers’
expectations and generate earnings for the Group.
Construction know-how acquired over many years of performing small repair andreinforcement projects is a major strength of SHO-BOND. As a specialist in maintenance,
we have decades of experience with earning a suitable profit from performing small
jobs. This gives us a corporate culture that differs greatly from those of otherconstruction companies. Construction projects have been becoming larger and longer
year after year. Nevertheless, small jobs are at the heart of repair and reinforcement
work. We are utilizing the expertise we acquired from these jobs to maintain a highprofit margin as we handle many large projects. I want to be certain to pass this
distinctive tradition on to our young engineers to maintain and strengthen ourcompetitive edge as a leader in the field of repairs and reinforcement.

SHO-BOND Construction Sites
Replacement of Bridge Bearings

Tsuneyuki Ashizawa
Senior Executive Officer,
General Manager of Construction Division,and Director of Tsukuba Training Center,
SHO-BOND CORPORATION

Strengths

Bearings are a vital component of bridges
that link the deck of a bridge with its
piers. Timely replacements are essential
because the potential inability of oldbearings to withstand a major earthquake
could cause a bridge to collapse. For
safety, replacements must be done inaccordance with an earthquake-resistantplan. To replace bearings without
disrupting traffic on a bridge, work mustbe performed safely while raising the deckusing jacks and other equipment. Projectsof this type require highly advanced skills.

● A strong team of engineers capable of earning profits from even small projects
A bridge with new bearings in place● Large network of partner companies with experienced people covering a diverse array of construction skills● Close relationship with factories that fabricate steel components one by one to match the requirements of individual projects● Low cost of construction by performing projects requiring specialized skills without using subcontractors

Materiality
The Construction Division uses expertise accumulated over many years as a specialist in
infrastructure maintenance to create construction plans that are safe and efficient. In addition,
we perform special construction internally and use other strengths to hold down the cost of
construction and raise productivity. Our mission is to use the best methods for maintenanceand repair projects of all sizes, from large expressway bridges to small pedestrian bridges, tocontribute to the development of sustainable cities.

As concrete ages, water, salt and othersubstances can seep in through cracks,
causing corrosion and expansion of rebar
within the concrete. If nothing is done,
this can result in an accident when chunksof concrete fall off. The Group has
performed a large number of projects thatinvolve the application of sheets toprevent this problem.

Applying a sheet to prevent chunks of concrete
from breaking off and falling

Major Activities
All companies of the Group place priority on passing on repair andreinforcement technologies backed by many years of experience to thenext generation of construction engineers. The Tsukuba Training
Center offers many types of training programs for newly hired
employees, partner company employees and others. In FY2023, we
conducted more than 100 training programs. Successful repair andreinforcement work requires the efficient planning and execution forsmall projects. Giving engineers the skills to carefully plan andconstruct each stage of a project and make it profitable will lead tothe efficient management of large-scale construction projects.
Furthermore, as many employees are assigned to large projects, each
person’s role must be clearly defined. The site manager is responsible

One step of the bridge-bearing
replacement process

Prevention of Concrete Spalling

for the oversight and guidance of younger engineers. To pass on
construction skills efficiently, education programs are customized tomatch specific projects. Cost reduction in repair and reinforcement
projects is another priority. One way is to perform internally specialized
construction methods for repair and reinforcement tasks. Furthermore,
we analyze a broad range of construction processes to determine
cost-reduction methods for each one that can be used throughout theGroup. For example, the group company Kyna-Tech makes it possible
to perform work requiring high-pressure water jets internally.
Furthermore, we will use IT tools more widely to increase efficiency
and productivity, as well as to comply with the upper limit on overtime
work in construction industry that will begin in April 2024.

Removal of Old Bridges

A section of spalling concrete

Of the enormous number of expressway
overpasses in Japan, many were built morethan 50 years ago and retrofitting isneeded for safety during an earthquakeand other reasons. In some cases, overpass
bridges that are no longer needed areremoved instead. The SHO-BOND Group
uses its infrastructure repair andreinforcement technologies to dismantle
and remove these bridges safely andefficiently.

Removal of an expressway overpass bridge

37

SHO-BOND 2023 Integrated Report38About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Technical Research Institute /Tsukuba Training Center

Technical Research Institute

Tsukuba Training Center

Overview of Technical Research InstituteMotivation for Establishmentof structural deterioration and damage, improving fatigue durability
against large vehicles, and researching and developing effective
reinforcement technology for earthquake disasters. The researchfacility 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 consistsof researchers with backgrounds in chemistry (organic materials) andcivil engineering (inorganic materials and structures).

The SHO-BOND Group has contributed to society through theresearch and development of its own repair technology, believing thatthe combination of chemical and civil engineering technologies isimportant for effective infrastructure maintenance. Technical ResearchInstitute played a central role in this effort. In 1996, the year after theGreat 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 ResearchInstitute based on the philosophy of raising repair skills to the level ofscientific research. The institute focuses on clarifying the mechanisms

Specimen Preparation Building

Large Testing Laboratory

Main Building

Research Building

Providing Learning Opportunities Based on
Practical Training

Training Center with an area of approximately 5,000m2 near theTechnical Research Institute.

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 such as aramid and carbon
fiber. Familiarity with these methods and materials is essential toensure 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 the next 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 lecturesand on-the-job training at construction sites were insufficient. For
these reasons, in October 2021 we established the Tsukuba
Full view of Tsukuba Training Center

Training Bridge

Concept of the Facilities

1st Wheel Load Running Test Laboratory

Wheel load running test

Training Building
Exposure Testing Area

Inorganic Materials Research Building
Outdoor Exhibition Site
2nd Wheel Load Running Test Laboratory

Tsukuba Training Center

Technical Research Institute (SHO-BOND CORPORATION)
Aerial view of the Technical Research Institute and Tsukuba Training Center

Example of EPMA analysis

Various Research and Development Themes

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

In recent years, we have been working on the following research anddevelopment themes:● A transparent concrete spalling prevention method that uses a single
pack (pre-mixed) resin which is easy to use and has low cost andoutstanding workability● Development of a surface thickening method combining apermeable water resistance material, an adhesive, and low-elasticity
latex-modified fast-curing concrete (CPJ-L)● Wheel Load Running Test is conducted to confirm the fatigue
durability of bridge deck slabs after significantly thickening theirsurfaces, which have been weakened by years of heavy vehicle traffic

Overview of the Facilities■ Training building (total floor space of approx. 1,000m2)● Seminar room: A classroom for up to 54 participants● Construction training room: A seminar room where participants canlearn how to handle repair materials● Safety training room: A seminar room where participants canexperience the significance of safety activities

CPJ-L demo attended by customers

Wheel Load Running Test attended by customers

NEO-LINER EX demo attended by customers

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

In addition to these themes, we are constantly conducting researchand development on several other themes.
In February 2022, the Institute received the Special Award at theFirst Infrastructure Maintenance Awards from the Japan Society of
Civil Engineers (JSCE) for its longstanding research and development
activities that have contributed to the development of infrastructure
maintenance.

39

SHO-BOND 2023 Integrated Report■ Training bridge (10m x 20m)

Practical training in jacking up bridges

Practical training in tightening
high-strength bolts

Practical training in making a photographic
record of construction work

Practical training in installing seismic
retrofitting equipment

Practical training in marking

40About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Maintenance Technology Inc. / Kyna-Tech /SHO-BOND MATERIAL CO., LTD.

SHO-BOND MATERIAL CO., LTD.

Maintenance Technology Inc.
Overview
Maintenance Technology Inc., established in 2011, is the only
construction consulting company in the SHO-BOND Group. The
company has sales offices in Tokyo, Nagoya, and Osaka. The workforce
was 23 at the end of June 2023. The main activity is investigation,
diagnosis, analysis, repair plans, and other services involving bridges,

tunnels, and other public-sector structures under requests from otherconstruction consultants. We also measure structures, analyze resin
products, and perform other services to improve the quality of work at
our construction sites.

Operations

SHO-BOND MATERIAL is a manufacturer and trading company that supplies a large
lineup of products used in repair and reinforcement projects. The manufacture and saleof these construction materials is a key element of the SHO-BOND Group’s operations
along with the core construction business.
We are focusing on developing and expanding sales channels in new market sectors
and getting more customers to accomplish the current Medium-term Business Plan’s goalof penetrating and upgrading SHO-BOND technologies by taking on new challenges.
Besides standard products, we are focusing on developing customized products toprecisely meet customers’ requirements, as well as developing and modifying couplings(pipe joints) to cover a broad array of needs.
The demand for structure maintenance will continue to grow. It is our mission to
respond to a diverse array of needs related to emergency measures and permanent
responses to aging infrastructure and intensifying natural disasters internationally and tohelp protect these vital lifelines by solving the issues of our customers.

Structure measurements and 3D CAD data generation
using a 3D measuring instrument

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

Repair and reinforcement work consists primarily of installing or replacing various materials
in existing structures. Obtaining accurate measurements is often difficult because existing
structures have complex shapes and narrow spaces. We use a recently developed wide-area
3D measuring instrument capable of measuring existing structures quickly and accurately.
Furthermore, we also perform tasks such as converting point cloud data obtained from 3D
measurements into 2D and 3D CAD formats, enabling us to check data for components infabrication and component interference levels.

Risk and Opportunity in the Construction Materials Manufacturing and Sales Business[ Risk factors ]● High cost of energy, construction materials, and raw materials● Damage and disruption of operations caused by natural and
The status of measuring anchor bolt drilling positions
using a 3D measuring instrument

other disasters at factories of SHO-BOND MATERIAL and its
contract suppliers● Measures needed to cope with the restriction on overtime work
concerning logistics starting in Japan in 2024

[ Opportunities ]● Growing demand for extending the life of infrastructure as
the pace of activities for repairing and reinforcing aging
infrastructure increases● Growing demand for reinforcement work as the frequency
and severity of natural disasters increase● Demand for environmentally friendly products

Strengths

Kyna-Tech● As a specialist in repairs and reinforcement, the company has a diverse lineup of products for many types of degradation and damage● Group-wide development capabilities for customizing products to meet specific market demands● Asset-light manufacturing through a Fabless framework (for structural construction materials and pipe joints)● Flexible environmental response, such as using non-hazardous organic materials and plant-based ingredients for the fabrication of

Overview
Kyna-Tech became a wholly owned subsidiary of the SHO-BOND
CORPORATION in 2016 through acquisition, as part of the Group’s
strategy to increase profitability and diversify its operations. The
company is based in Saitama and had a workforce of 22 as of theend of June 2023. As a specialty construction company, Kyna-Techproducts to reduce CO2 emissions.
enhances the Group’s profitability through its expertise in advanced
machinery construction technology, including high-frequency coredrilling and water jets. Moreover, conducting water jet construction
in-house leads to cost reductions and contributes to the profitabilityof the entire Group.

Major Activities
In addition to conventional products, we are also focusing on sales of
new products and construction methods released in the past few
years. Shipments of CPJ-L, a low-elasticity latex-modified fast-curingconcrete for repairing the upper surface of concrete deck slabs,
increased significantly, mainly due to highway repair work by NEXCO.
In the future, we will expand the sales of CPJ-L nationwide, including
the national and local governments. The Galette Sandwich Method isused to repair concrete block walls along railway lines without
removing the existing wall. This reduces waste materials andaccommodates restrictions on time and workspaces that are common
at railway projects. An increasing number of companies have become
regular users of this method, indicating that sales will continue togrow. Regarding couplings, we are working on enhancing ourlarge-diameter couplings and increasing inventories, focusing on theneed for repairing water and sewage pipes and water pipe bridges,
and for emergency response after water leaks.
We are currently working on solving various challenges, such aslarge-scale renovation of expressways and railways, by not only
developing by ourselves but also collaborating with our customers. We

Operations
High-frequency core drilling at concrete structure
Making anchor bolt holes using high-frequency core drilling is one of the primary activities
of Kyna-Tech. When reinforcing an existing concrete structure, holes are drilled for theplacement of reinforcing components to increase earthquake resistance. Kyna-Tech’s
high-frequency core drill can make holes up to 15 meters deep and in a direction that is
not possible with conventional machinery. Furthermore, holes are made about 2.5 times
faster. Another advantage is being fitted with a safety device, which eliminates the risk ofdamaging rebar in the concrete structure. Our outstanding technology is essential for
supporting the safety and security of infrastructures.

A railway concrete block wall reinforced
using the Galette Sandwich Method

A utility water pipe bridge
using SHO-BOND MATERIAL couplings

are looking forward to the products that we plan to release in the next
few years, and we aim for further growth with the Group companies.

Overview of SHO-BOND MATERIAL CO., LTD.
SHO-BOND MATERIAL CO., LTD. is a core company of the SHO-BOND
Group. It was established in July 2016 by the merger of SHO-BOND
Chemical and SHO-BOND Coupling and became a manufacturer andtrading company that produces and sells resin products, construction
materials, and couplings.

The use of high-frequency core drilling for anchor bolt holes

41

SHO-BOND 2023 Integrated Report42About Us

Management Strategies

Business Strategies

Business Foundation

Company Information

Overseas Businesses

Overseas Businesses
Scene at the Site

SHO-BOND & MIT Infrastructure Maintenance Corporation
SHO-BOND & MIT Infrastructure Maintenance Corporation (SB&M) will leverage the synergy between SHO-BOND’s technologicalcapabilities and MITSUI & CO., LTD. (MITSUI) ’s network and business development capabilities to provide solutions for infrastructure
and private-sector facilities in Japan and overseas, build and develop a new business foundation for the SHO-BOND Group andpromote activities that create a safe and secure society.

Risk and Opportunity in Overseas Businesses[ Risk factors ]● Country risk due to economic and political instability● Uncertainty involving laws and regulations and logistics forshipments of products● Rising cost of materials and exportation and uncertainty about
foreign exchange rates● Cost competition with local companies and other entrants[ Opportunities ]● Increasing public awareness worldwide of the need formaintenance of aging infrastructure● Joint activities with other Japanese companies for the
dissemination of infrastructure technology proven in Japan● Growing need for protection against earthquakes, floods,
and other natural disasters around the world

Strengths

ThailandUSA

Thailand is located in Southeast Asia with a land area of about
514,000km 2 (about 1.4 times that of Japan) and a population of
about 66.09 million (about half that of Japan). Many Japanesecompanies, primarily manufacturers, have operations inThailand. In Bangkok, the capital city where approximately 10%of the country’s population is concentrated, much of theinfrastructure was constructed at least 30 years ago, and the
problem of deterioration is becoming apparent.
CPAC, with which we established a joint venture in
November 2020, is a core company in the building material
business under the umbrella of Siam Cement Group (SCG), oneof Thailand’s leading conglomerates. CPAC SB&M’s office is in
the Bang Sue district, about 17km away from Bangkok’s
Japanese quarter. SCG’s head office building is also in this area
and in front of it is Bang Sue Grand Station, one of the largest
terminal railway stations in ASEAN.
We look forward to using Thailand as a base for the growthof the infrastructure maintenance business throughout
Southeast Asia.

A large percentage of the U.S. infrastructure was constructedmany decades ago with some parts dating back to the 1920s
and about 40% of the bridges in the United States are morethan 50 years old. Over the years, many large bridges havecollapsed. Today, there is widespread awareness of the need formaintenance. In some regions, particularly the West Coast,
there is also a need to reinforce structures to resist earthquakes.
ST, in which we invested in July 2023, is affiliated with
Structural Group, Inc. (SGI), the third-largest concrete
construction company in the U.S. by revenue, and specializes inbridges. SGI has a management philosophy of “Making
structures stronger and last longer” and has a high affinity with
SHO-BOND.
SHO-BOND plans to use its relationship with ST to utilize
technologies created and proven in Japan at infrastructure
maintenance projects in the United States.

CPAC Head Office

Structural Technologies Corporate Headquarters

A construction site meeting

A Structural Technologies construction site● The technology development capacity of the SHO-BOND Group for the development and modification of construction methods andproducts to match the requirements of specific countries and regions● The global business network and overseas development and management capacity of MITSUI, in 63 countries and 128 business sites

Major Activities
SB&M was established in April 2019 with a 51% stake in SHO-BOND
and a 49% stake in MITSUI, with the aim of “creating a sustainableinfrastructure society in Japan and overseas with the technology of
SHO-BOND.” By leveraging the resources of the SHO-BOND Groupand MITSUI, in November 2020, we established a joint venture CPAC
SB&M Lifetime Solution Co., Ltd. (hereinafter referred to as CPAC
SB&M) with a local company in Thailand, and in July 2023, weinvested in a U.S. infrastructure repair maintenance company
Structural Technologies, LLC (hereinafter referred to as ST). Currently,
we are developing infrastructure maintenance business in the ASEAN
region and the United States, with the two bases in Thailand and theUnited States. In addition to supplying construction materials for JICA
projects in the ASEAN region and providing on-site construction
guidance by our engineers, as part of JICA’s international cooperation,
we accept trainees from overseas at the SHO-BOND CORPORATION’s
Technical Research Institute and Tsukuba Training Center to provide
lectures, practical training, and tours on the importance ofinfrastructure maintenance and repair methods.
As the need for structural repair, reinforcement, and seismic
countermeasures is attracting attention worldwide, we will create
greater synergies and expand our business by combining theknowledge and experience accumulated from operations in Thailand
and the United States with SHO-BOND’s technology development
capability and the business development capability of MITSUI. In
addition, amid an increasingly serious global environmental problem
and growing shortage of construction workers, we are also
promoting business development related to work efficiency throughdigital technology.

43

SHO-BOND 2023 Integrated Report

JICA trainees at the Technical Research Institute (above) and
SHO-BOND engineers guiding a construction site in Laos (below)

44