B road Range of St ru c t u res We Work O nInheriting and passing on social infrastructure
to the next generation in good condition
We play an important role in the sustainability of cities by utilizing technologies acquired
during more than 60 years in the infrastructure maintenance business for repairing andreinforcing a broad range of structures that are vital parts of the social infrastructure.

● Prevention of ceiling and wall peeling● Repair of expansion joints■ Bridges■ Tunnels■ Road structures● Prevention of concrete degradation● Stop groundwater leaks● Noise reduction■ Harbor Quay

■ Railways■ Irrigation Channels■ Water Supply and Sewer Systems■ Buildings■ Silo● Protection from salt damage● Repair of damage at elevated railways● Prevention of cracking● Protection from corrosion● Seismic retrofitting● Repair of wall surface degradation● Prevention of concrete degradation

05● Seismic retrofitting

SHO-BOND 2022 Integrated Report● Seismic retrofitting● Prevention of water leaks

SHO-BOND 2022 Integrated Report06History of SHO-BOND

History of SHO-BOND

Showa Kogyo Corporation was established in Setagaya-ku, Tokyoon June 4, 1958 by Akira Ueda, who was 31 years old.
Initially, the main business was construction involving rigid PVCpipes. In 1959, Showa Kogyo quickly repaired cracks at thespillway of the Yakuwa Dam by using PVC boards and epoxy
resin. This accomplishment led to the development in September
1959 of a high-strength epoxy resin adhesive (currently equivalentto #101 adhesive). This was followed by the development ofadhesives for specific applications that used the registeredtrademark “SHO-BOND”. Production of these adhesives started inNovember 1959.
In 1960, the head office moved to Chiyoda-ku, Tokyo and thesale of “SHO-BOND” and construction processes using thismaterial started. To sell this product for civil engineering
applications, whole numbers were used for the ratios of baseagents and hardeners for all versions of SHO-BOND. Synthetic
resin adhesives were soon widely used at construction sites inJapan.

June 4, 1958

The special website for SHO-BOND’s 60th anniversary(Japanese version only)

https://www.sho-bond.co.jp/60th/

Started operations as Showa Kogyo Corporation.

1963

The company was renamed SHO-BOND Co., Ltd. and the development of new products and construction methods started for the useof high-polymer materials at civil engineering and construction projects.

1964

SHO-BOND participated in the repair of cracks in the deck slab of the Showa Ohashi Bridge in Niigata, which collapsed during anearthquake shortly after the bridge was completed.
1964

1965

Tokyo Olympics

After a trial installation of the Cut-off Joint, an expansion device for highway bridge developed by SHO-BOND and Japan Highway
Public Corporation, this innovation was used nationwide at expressway construction projects.
1965Completion of the Meishin Expressway

SHO-BOND split into two companies: SHO-BOND CORPORATION and SHO-BOND Chemical

1977

Relocated the Central Technical Research Institute to Omiya (now the city of Saitama) and started strengthening R&D capabilities toreinforce SHO-BOND’s reputation as a technology-oriented organization. The institute develops new products and construction
methods that combine chemical and civil engineering technologies.

Sustainability(left) The manufacture of“SHO-BOND”
adhesives(right) A SHO-BOND
adhesive test at theInstitute of Industrial
Science, the Universityof Tokyo

The corporate DNA as a company specializing
in infrastructure maintenance1961 Founder Akira Ueda transports building
materials to a dam construction site
during a blizzard

We, SHO-BOND have dedicated ourselves to the comprehensive
maintenance of concrete structures and this commitment will notchange. We will steadily establish a sound foundation for business
operations in this field. We do not deviate from the mission, do notbranch out into other businesses in response to short-term trends,
and concentrate on serving society.

07

SHO-BOND 2022 Integrated Report

1981 The SHO-BOND BICS (Balloon Injection forConcrete Structures) Method for repairingcracks in concrete was used at theJapan-U.S. large earthquake resistanceexperiment at the Building Research Instituteof the Ministry of Construction.

History of New Products and Construction Methods

Akira Ueda at SHO-BOND’s 30th anniversary

1962 Concrete successive pour
method using SHO-BOND#202 adhesive

1967 Installation of the Cut-off Jointat the Tomei Expressway
Nagoya Interchange

1968 Developed and started
sales of SHO-BOND Mini

1983 Developed the DD BICS
MethodSHO-BOND 2022 Integrated ReportCompany Information

The corporate DNA as an infrastructure maintenance specialist, based ongrowth prospects backed by the aging of Japan’s highway infrastructure, stilldefines the SHO-BOND Group today.

1977 The Central Technical Research Institutein 1977

Corporate GovernanceIn 1989, 31 years after its establishment, the stock listing was moved to thefirst section of the Tokyo Stock Exchange. This was the peak of Japan’s
bubble economy as many companies were diversifying operations. At theCompany-wide Sales Meeting, company president Akira Ueda declared thatthe company would focus exclusively on repair and reinforcement projects.

Business Strategies

1975

Management Strategies

Akira Ueda when Showa Kogyo was established

1958-

What is the SHO-BOND Group?

The Origin of “SHO-BOND”

08

2008-

1982

Established an agreement with Straub, based on Switzerland, to manufacture Straub couplings in Japan.

2008

Established SHO-BOND Holdings Co., Ltd.

1987

SHO-BOND was listed on the second section of the Tokyo Stock Exchange and moved to the first section in 1989 as progresscontinued as a provider of comprehensive maintenance services for concrete structures.

2011

The Great East Japan Earthquake of 2011 showed the effectiveness of seismic reinforcement work that was done after the Great
Hanshin-Awaji Earthquake. This disaster further increased the pace of work to make Japan’s infrastructure more resistant toearthquakes. SHO-BOND established 12 regional construction subsidiaries (the Kako Group) as a framework for receiving orders fromlocal governments.

1989

1995

Nikkei Stock Average reached an all-time high of ¥38,915

1995

The Great Hanshin-Awaji Earthquake

1996

The Technical Research Institute began operating. The development of new technologies and equipment at the institute for assessing
durability and other properties have helped make SHO-BOND’s construction methods and products even more reliable.

2005

Enactment of the Act on Promoting Quality Assurance in Public Works resulted in the use of a new evaluation method for the selectionof winning bids by taking into account various considerations other than price. This gave SHO-BOND a big advantage due to thecompany’s reliable technologies and long record of proven reliability at public-works projects.

2017

2011

The Great East Japan Earthquake

2012

Sasago Tunnel ceiling collapse on the Chuo Expressway

2013

Amendment to the Road Traffic Act, and compilation of the Basic Plan for Life Extension of Infrastructure (the First Year of Social Infrastructures Maintenance)

2015

Beginning of the large-scale renewal and repair projects of expressway companies

2016

Kumamoto Earthquake

Passing of Akira Ueda, founder and chairman.
2018

1995 Expressway columns reinforced shortly before
the earthquake were intact

SHO-BOND and MITSUI & CO., LTD. established SHO-BOND & MIT Infrastructure Maintenance Corp. (SB&M) to operate an
infrastructure maintenance business outside Japan.

2020

SB&M and CPAC, a member of the Siam Cement Group of Thailand, established CPAC SB&M Lifetime Solution Co., Ltd. in Thailand.

2021

Opened the Tsukuba Training Center, which is adjacent to the Technical Research Institute.

1996 The new Technical Research Institute2011 SHO-BOND’s work at the Kobe Ohashi Bridge
received a Technology Award from the Japan
Society of Civil Engineers Kansai Branch2011 Repairing Tohoku Shinkansen columns
damaged by the Great East Japan Earthquake2020 A trial construction project in Thailand

Corporate Governance1995 A section of the Hanshin Expressway destroyedby the Great Hanshin-Awaji Earthquake

2019

Sustainability

1991 Exterior work at the bridge over Nihonbashi

Reexamination of the Japanese government’s Fundamental Plan for National Resilience
Business Strategies

1982 Signing the coupling manufacturing agreementwith Straub

Management Strategies

Many elevated sections of the Hanshin Expressway collapsed during the 1995 Great Hanshin-Awaji Earthquake, but sections
supported by columns with seismic reinforcement using SHO-BOND’s steel plate jacketing method were not damaged. After thisdisaster, seismic reinforcement projects increased throughout Japan and SHO-BOND’s sales and earnings increased significantly.

What is the SHO-BOND Group?

1982-History of New Products and Construction Methods

09

SHO-BOND 2022 Integrated Report

1997 Restraining Chain

2006 RAC-Sheet Method(prevents concretedegradation)

2006 Restraining Belt

2008 Shearing Stopper

2011 AI Joint2017 Clear Protect Method2020 CPJ-LSHO-BOND 2022 Integrated ReportCompany Information

1983 ST Joint10

Comprehensive Maintenance System

What is the SHO-BOND Group?

The SHO-BOND Group is a comprehensive maintenance company which specializes in repairing and reinforcing social infrastructures.
We provide extensive support in social infrastructure maintenance, with a focus on design and construction services as a construction company, together withservices ranging from R&D of materials and construction methods, to manufacturing and sales of developed materials and construction methods.
The country’s foremost and comprehensive maintenance system. This is SHO-BOND’s characteristic, our strength.

Business
https://www.sho-bondhd.jp/english/business/of new construction methods○ Technology Development Developmentand materials required by the times

We have a wide array of state-of-the-art research equipment specialized inrepair and reinforcement. Our researchers specializing in chemistry and civilengineering work together with external research institutes to develop newconstruction methods and materials that meet the needs of the coming age.

Technical Research Institute (SHO-BOND CORPORATION)

DesignInvestigation /Diagnosis

Management Strategies

proposals based on○ Investigation / Diagnosis / Design Exact
accurate investigation

We propose optimal design and construction methods by investigating anddiagnosing, combining abundant knowledge and state-of-the-art technology inresponse to various structural damage problems.

ConstructionWork

Maintenance Technology Inc.

Technology
Development

Global○ Construction WorkBusiness Strategies

Combination of chemical andcivil engineering technologies

Construction system that can handle
all types of construction

SHO-BOND CORPORATION handles large-scale, high-difficulty construction works, whileconstruction subsidiaries (the KAKO-Group), which have their head offices in variouslocations, handle small and medium-scale construction works. We undertake maintenanceworks nationwide, regardless of scale or whether we are a main contract or a subcontractor.

Manufacturing

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

Sales

Production system utilizing our factories
and contract manufacturing

Sustainability○ Manufacturing

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

SHO-BOND MATERIAL CO., LTD.

SHO-BOND Holdings Co., Ltd.

SHO-BOND CORPORATION
Technical Research Institute

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

Corporate Governance■ Group Companies
Sales of a wide variety of repair and reinforcement products

Product sales and construction work are the two pillars of our businesses. Witha lineup of organic, inorganic, and structural materials, our group companies
approach a wide range of customers to expand our sales channels.

Group companies

SHO-BOND MATERIAL CO., LTD.

Maintenance Technology Inc.
SHO-BOND (HONG KONG) Ltd.

SHO-BOND & MIT Infrastructure
Maintenance Corporation (SB&M)

11

SHO-BOND 2022 Integrated Report

CPAC SB&M
Lifetime Solution Co., Ltd.

○ GlobalCompany Information

Kyna-Tech

Bringing Japanese maintenance technology overseas

We take on the challenge of solving the social issue of aging infrastructure faced bymany countries by combining our technological expertise in infrastructure maintenancewith the network and business development capabilities of MITSUI & CO., LTD.

SB&M

SHO-BOND 2022 Integrated Report

12The Value Creation Process

What is the SHO-BOND Group?

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

Business Model
Our VisionOutcomes

Fulfill our mission as a company
Financial capitalSocial Issues

Increasingly severe andfrequent natural disasters
Realization ofa decarbonized society

Heightened geopolitical risks
and changes in
economic conditions inJapan and overseas

Manufactured capital● The Group’s strength for comprehensive

infrastructure maintenancethat combines chemical and civil engineering
technologies to create new materials andconstruction methods

Investigation /Diagnosis

capabilities and knowledge centered on
Technical Research InstituteSocial and relationship capital

Product sales● Strong network with partner companies

Natural capitalMission● Curbing of greenhouse gas emissions(Reduction of environmental impact)

Globalit is that makes us SHO-BOND”¥87.5 billion● Profit attributable to owners of parent

Shareholder returns

Construction work

● Sales

Inheriting andpassing on social
infrastructure tothe next generationin good condition¥12.0 billion

Profitability

Technological development

Financial soundness

Productivity improvement
through technology
development

Sound governanceand measures formore improvements

● ROE

12%

● Total return ratio

75%

Medium-term Business Plan (FY2022 - FY2024)

Materiality
Comprehensive maintenancesystem backed by
the organizational capabilities

Corporate Governance● Engagement with stakeholders

Manufacturing& Sales“Honing our inherent strengths what

● Experienced and highly skilled engineers

as maintenance specialists

and livable cities

Improvement of economic value

Human capital● Multi-skilled workers with strengths● Creation of sustainable

TechnologyDevelopment

Construction Work● Accumulated technological development

preventive infrastructure maintenancesecure national, regional, andeconomic society with resilience

DesignIntellectual capital● Measures against aging through● Establishment of a safe andComprehensive Maintenance● Construction methods andmaterials specialized in repair
and reinforcement

Place priority on
profitability and efficiency

Resolution of social issues

Contribution tothe development ofsustainable cities● Maintenance work with

reduced environmental impact
Contribution to societyInternal

activities

Sustainability

Declining birthrate,
aging population,and decreasing workforce

with high profitability

Be a technology-orientedorganization

Business Strategies

Accelerated aging
of infrastructure● Sound financial basespecializing in maintenanceManagement Strategies

InputsContribution to society

Company Information

13

SHO-BOND 2022 Integrated Report

SHO-BOND 2022 Integrated Report

14Business Environment

Accelerated Aging of Infrastructure
Number of Bridges by Year of Construction
Total: Approx. 500,000 bridges

Average age:

43 years(As of 2022)

150,000

Percentage of Structural Infrastructures Built More Than 50 Years Ago
2040

30%

75%

Examples of aging infrastructure

Number of Tunnels by Year of Construction
Total: Approx. 10,000 tunnels

Average age:

35 years(As of 2022)

2,500Road bridge[730,000 bridges]

2,000

120,000

Concrete peeling andexposed reinforcing bars
1,500

60,0001,000

30,00050001921 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
MLIT

Expressway
companies

Prefectures

0Aging bridge bearing

Tunnel[11,000 tunnels]

22%

53%

21%

66%

Business Strategies

90,000Management Strategies

2020

What is the SHO-BOND Group?

Most of the infrastructure in Japan was built after the high economic growth period, and its aging is expected to accelerate in the future.
In response to these social issues, national and local governments are taking action nationwide to formulate plans for appropriately maintaining, managing, andrenewing infrastructure and extending the service life.

1921 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

Municipalities

MLIT

Expresswaycompanies

Prefectures

Municipalities

Harbor quay

[61,000 facilities]

Sustainability

Notes:
1. Prepared by SHO-BOND based on MLIT data
2. Number of managed facilities by road administrator
3. In addition to the above, there are approximately 230,000 bridges and 400 tunnels whose construction year is unknown.

Salt damage

194.6 trillion yen

MLIT
Railway companies

38.4 trillion yen

MAFF

29.3 trillion yen

Expressway companies

19.4 trillion yen

282

trillion yen

Note: Based on FY2019 and FY2020 estimates. The maximum
amount of infrastructure maintenance/renewal expenses during thenext 30 years is estimated based on the preventive maintenanceconcepts of various organizations. These expenses for MLIT areabout 50% higher after 30 years when this estimate is based on
the corrective maintenance concepts. (Source: National
government materials, newspaper articles and other sources)

15

SHO-BOND 2022 Integrated Report

Middle East

Sewer pipe

2%[480,000 km]

5%Africa35%

3%

North America& Canada

15%

Latin America

18%

Sewer pipe corrosion

Approx.

200trillion yen

Asia &Oceania

39%

per year[46,000 facilities]

Europe22%

Rivermanagement
facility

10%

Company Information

2018-2048

Estimated Market Size of Overseas
Infrastructure MaintenanceCorporate Governance

Estimated Costs of Domestic
Infrastructure Maintenanceand Renewal

38%

Source: Prepared by SHO-BOND based on MLIT data

SHO-BOND 2022 Integrated Report16

Financial and Non-financial Highlights
Non-financialOrders (¥bn)

Number of Employees

Net Sales (¥bn)
96.1

84.4
74.4

67.9

6.5

5.7

5.9

FY2018FY2019FY2020Constructions

59.7

60.8

5.9

5.7

67.6

7.8

FY202153.8

FY2022

ProductsFY2018

72.2FY2019

19.1%

FY2020

FY2021FY2018FY201912.9

FY2020787818848

FY2019FemaleFY2020

FY2021

FY202213.4%

FY20182.8%
1.5%

FY2019FY2022

99.4%

FY2021

FY2022(Voluntary turnover rate)

Percentage of Construction Sites where“8 Days Off in 4 Weeks” is Achieved

100.0%
77.1%

79.5%

FY2019FY2020

85.9%

89.6%

11.1%

48.3%
11.3

FY2018FY2020Percentage of Female

98.9%

2.2%
1.2%

12.4

9.08.1FY2019FY2020

FY2021

Profit Attributable to Owners of Parent

FY2022FY2018FY2019FY2020

FY2021FY2022

Dividend (¥bn) / Purchase of TreasuryShares (¥bn) / Total Return Ratio

82.8%

FY2017FY2018FY2021(According to the Japan Federation of Construction Contractors)

ROE

Lost Time Injury (LTI) Frequency Rate

Lost Time Injury (LTI) Severity Rate

9.3

80.2%

Corporate Governance

81.4%

10.6%

17.3

Operating Profit Margin

82.5%

10.7%

93.7%

15.7

FY2021

10.7%

103

10.8%

Percentage of Employees
Taking 100 or More Days Off per Year

19.6%

Net Assets (¥bn) / Equity Ratio
81.4%

FY2018
Male

13.0%

7.3

Operating Profit

10.6%

98951Sustainability

11.7

FY2022

Products

Profit Attributable to Owners of Parent(¥bn) / ROE

10.2%

10.8

94916

Business Strategies

19.3%

91764

733

73.0

881

2.3%

21.3%
18.1%

8.2

8610.5%

61.1

55.1

Constructions

Operating Profit (¥bn) /Operating Profit Margin

819

6.5

87.9
66.7

81.2

855

Turnover Rate

Management Strategies

77.9

80.1

74.5
7.8

68.6

62.0

8.2

What is the SHO-BOND Group?

Financial

75.1%
3.0

FY2018FY2019Net Assets

1783.678.1

74.1

FY2020Equity Ratio

SHO-BOND 2022 Integrated Report

91.0

FY2021

45.0%47.5%

50.1%

94.2

FY20224.494.3

3.43.6FY2018FY2019Dividend

FY20205.7

FY2021

Purchase of Treasury Shares

3.29

6.3

1.48

FY2022
Total Return Ratio

FY20182.01
0.90

FY20190.21

FY2020

FY2021

0.67

FY2022(Lost work time of 4 or more days)

0.15

FY2018FY2019FY20200.09

0.12

FY2021

FY2022Company Information

46.1%(Lost work time of 4 or more days)

SHO-BOND 2022 Integrated Report18