May 13, 2022
For Immediate Release
Company name
Representative

Contact

Yokogawa Bridge Holdings Corp.
Kazuhiko Takata,President and Representative Director(Securities code 5911, Tokyo Stock
Exchange Prime Market)
Kiyotsugu Takagi,Director, Managing Executive Officer(Tel: 03-3453-4111)

Yokogawa Bridge Holdings Group (“the Group”)
Sixth Medium-Term Management Plan
In line with our corporate philosophy – Contribution to society and the public, and soundmanagement – Yokogawa Bridge Holdings Corp. (“the Company”) is aiming to become a corporategroup that plays a vital role in society and generates sustained growth by using human talent andtechnologies to build links to the future. To realize that goal, we have formulated the Sixth MediumTerm Management Plan (“the plan”), starting in FY2022 and running through FY2024. Below is asummary of the plan.
1. Review of Fifth Medium-Term Management Plan
Under the Fifth Medium-Term Management Plan (“the previous plan”), which ran from FY2019
through FY2021, net sales fell short of target, but we achieved our operating profit and earnings
per share (EPS) targets in two consecutive years (FY2020 and FY2021), supported mainly by
an improvement in profitability in the bridge business.
*Previous plan targets and earnings trends (underlines show achieved targets)
Targets
Net sales(billion yen)
Operating profit(billion yen)

FY2019FY2020

FY2021

160.0

138.1

136.0

136.9

14.0

12.8

15.9

14.7

230

218

273

268

8% or higher

10.4%

11.9%

10.6%

Earnings per share(EPS)(yen per share)
Return on equity(ROE)12. Overview of new plan
The Group’s management vision is to realize and sustainably expand four key elements – “Longterm protection of bridges,” “Multifaceted steel structure engineering,” “Creation of a resilientsocial environment and harmonious coexistence with the natural environment,” and“Construction of a robust operational foundation.” The Sixth Medium-Term Management Plan ispositioned as a period to build the foundations for achieving this vision. During the three yearsof the plan, we aim to further strengthen two core businesses – the bridge business, which offers
prospects for stable expansion in business volume, and the engineered structure systembusiness, a key driver of growth. Also, from a longer-term perspective, we will make preparations
to create new businesses and build a business base that can flexibly respond to far-reachingchanges in the social landscape.
(1) Basic policies
1. Further reinforce core businesses
2. Create and develop diverse businesses
3. Establish a robust business base for the next 100 years(2) Plan targets (FY2024)
Net sales¥187.0 billion

Operating profit¥18.3 billion

Earnings per share¥290(3) Strategy for core businesses (Bridge Business, Engineering Business [Engineered structuresystem business])
1. Bridge BusinessWe will focus on securing orders for major new bridge projects starting in the next few years,
and further strengthen the bridge maintenance business to capture emerging demand for aging
infrastructure repair work. In addition, we will implement digital transformation (DX) to reform
work practices and improve productivity.
2. Engineering Business (Engineered structure system business)
In FY2021, the engineered structure system business steadily returned to growth, securing
orders on an area basis of more than 1 million m2. By leveraging ICT to push forward DX, weaim to secure annual orders and production work of more than 1.3 million m2.
(4) Create diverse businesses
We will continue to secure orders and production work for tunnel segments, while also making
preparations to move into new areas such as seawalls, port facility upgrades and floating wind2turbines.
(5) Promote DX
Guided by the slogan – harnessing digital tools to transform, grow and support – we will promote
DX to realize the following five objectives.
a) Reform work practices, improve productivity and deliver the new “3Ks” at worksites (kyuryo[wages], kyuka [time off] and kibo [prospects])b) Use digital tools to reinforce safety measuresc) Use digital tools to preserve and utilize the skills of Yokogawa’s master engineersd) Use DX to support and accelerate growth in the engineered structure system businesse) Use DX to explore new business opportunities
We will expand IT investment and actively work to cultivate digital experts, such as byestablishing an in-house certification system.
(6) Capital investment
As key investment themes under the new plan, we will continue to invest in the rapidly growing
engineered structure system business, expand IT investment to drive DX, and invest in
decarbonization-related projects. Investment decisions will be made on an annual basis, but theplan’s three-year investment budget is ¥18.0 billion.
(7) Capital policy and shareholder returns
The basic goal of the Company’s capital policy is unchanged – to balance sound finances withcapital efficiency. To ensure finances are healthy, we are targeting ROE of at least 9% as ourbenchmark for capital efficiency. In terms of shareholder returns, we will continue to pay stabledividends while also targeting a continued upward trend in dividends, based on an upwardly
revised dividend payout ratio target of 30% or higher. We also plan to buy back a certain amountof shares, depending on conditions.
Previous plan

New plan

ROE target

8% or higher

9% or higher

Dividend payout ratio

15% or higher

30% or higher(8) Personnel plan
In line with business expansion, we aim to increase the Group’s headcount by around 200, fromroughly 1,950 currently to about 2,150 in the plan’s final year, and utilize Groupwide humanresources efficiently.

3(9) Address ESG issues (initiatives to achieve carbon neutrality)
Through the construction of public infrastructure and other Group businesses, as well as
initiatives to address various ESG initiatives, we will focus on tackling and resolving social issues
to help create a sustainable society.
We aim to reduce the Group’s Scope 1 and 2 CO2 emissions in domestic operations by 20% in
FY2024 and by 50% in FY2030 (vs. FY2020 levels), and achieve carbon neutrality in FY2050.
(10) Safety initiatives
Serious accidents are the biggest risk for the Group’s business and we will continue to put the highest
priority on ensuring safety at worksites. We will develop onsite installations that enhance site safety
and practicality, upgrade proprietary machinery and equipment, and conduct R&D related to the useof ICT.
3. OtherMore details about the new plan are due to be disclosed on the Company’s website on May 20,
2022.

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