February 25, 2019
For Immediate Release
Company name
RepresentativeContact

Yokogawa Bridge Holdings Corp.
Hisashi Fujii,President and Representative Director(Securities code 5911, First Section,
Tokyo Stock Exchange)
Kiyotsugu Takagi, Director and Headof President’s Office(Tel: 03-3453-4111)

Yokogawa Bridge Holdings Group
Fifth Medium-Term Management Plan
Yokogawa Bridge Holdings Corp. (“the Company”) has established the Fifth MediumTerm Management Plan (for the period from fiscal 2019 to fiscal 2021; “the New Plan”),
which comes into effect from fiscal 2019, in preparation for realization of the long-termvision and sustained expansion of the Yokogawa Bridge Holdings Group (“the Group”). A
summary of the New Plan follows.
1. Long-term management vision
The Group has set its corporate philosophy as “Contribution to society and the public
and sound management” and aims for realization of long-term protection of bridges,
multifaceted steel structure engineering, and construction of a robust operationalfoundation as well as sustained expansion.
2. Progress with the current Fourth Medium-Term Management Plan and basic conceptbehind the New Plan
The Group was able to fully achieve the numerical targets in the Fourth MediumTerm Management Plan (for the period from fiscal 2016 to fiscal 2018; “the CurrentPlan”) in its second year as a result of greater-than-expected improvement in businessperformance. The Company has established the New Plan with the basic concepts of1) pursuing further the objectives of the Current Plan and 2) aiming to achieve
numerical targets that exceed the financial results during the term of the Current Planby such means as concretely proceeding with a shift in business development fromnew bridge construction to bridge retrofitting in the Bridge Business and strengtheningof the Civil Engineering Business.
1

Current Plan’s Numerical Targets and Results (Underlining indicates achievement of target)
TargetNet sales(billion yen)
Operating profit(billion yen)

FY2016FY2017FY2018(actual)(actual)(forecast)

125.0

113.4

131.0

145.0

7.5

8.0

13.7

11.0

125

102

226

195

Earnings pershare(yen per share)23. Outline of the New Plan
(1) Basic policies
1) Pursue maintenance, expansion, and optimization of the Bridge Business bystrengthening responsiveness to the bridge retrofit business in addition to new bridgeconstruction.
2) Pursue further expansion of the engineered structures business by establishing adual-plant production system and strengthening the profit-and-loss management
framework.
3) Further grow the Civil Engineering steel structure engineering business, as
exemplified by tunnel segments.
4) Also pursue expansion of the overseas bridge, aluminum products, and precisionequipment manufacturing businesses.
(2) Numerical targets (fiscal 2021)
Net sales¥160.0 billion

Operating profit¥14.0 billion

Net income per share¥230/share(3) Business strategy for the core businesses (Bridge Business and Civil EngineeringBusiness)
1) Bridge Business・Although sluggish growth in orders for new bridge construction is forecast due toa decrease in new route planning, the Group will seek to maintain and boost
business performance by bolstering efforts targeting large-scale renewal andrepair work. The Group will engage in integrated management of engineers,machinery and equipment, construction capacity, and other management
resources in new bridge construction and bridge retrofitting and pursue
optimization of resource allocation.
・In the overseas business, the Group will aim to further increase orders received
for ODA projects in Myanmar, Bangladesh, and other markets.
・The Group will further expand sales activities for aluminum products (inspection
passageways and permanently installed worker platform panels), which are highly
rated for corrosion resistance and workability and are being increasingly adopted.
2) Civil Engineering Business・The Group will aim for sales and profit increases for a third consecutive year fromthe engineered structures business, a major growth driver. To that end, the Group3

will work to bring online as soon as possible a new plant planned for completion inAugust 2019 (Mobara City, Chiba Prefecture), while also strengthening the profitand-loss management framework.
・In the Civil Engineering business, we will focus on capturing demand for tunnelsegments (underground structures) as well as offshore structures for disaster
preparedness and mitigation use.
(4) Safety
The occurrence of a serious accident is the greatest business risk facing the Group,and the Group will continue efforts to maintain safety in on-site construction as thehighest priority. The Group will pursue and implement more effective safety measures,such as providing information about past accident cases, enhancement of workprocedures, ingenuity in safety equipment and facilities, duplication/redundancy ofsafety devices, and systemization of work supervision.
(5) Personnel plan
In response to business growth, the Company anticipates an increase in employee
headcount by some 250 persons to approx. 2,100 persons from the current level ofapprox. 1,850 persons and will pursue effective utilization of human resources on aGroup-wide basis.
(6) Capital investment
In addition to a new engineered structures plant currently under construction, theCompany is planning investment for updating the Bridge Business plant, andinvestment for productivity improvement, etc. Although ultimately the Company will
make investment decisions in each fiscal year, capital expenditures of approx. ¥18.0billion are anticipated over a three-year period. Of that amount, approx. ¥9.0 billion isplanned during the year of completion of the new plant (fiscal 2019).
(7) Capital policy and shareholder returns
100-year durability is required of bridges, a core business of the Group, and theCompany considers it extremely important for bridge construction companies to ensure
financial soundness to facilitate continuity of operations. For this reason, theCompany’s basic capital policy remains the same: Maintaining a balance between
financial soundness and capital efficiency. Through this basic policy, the Company willcontinue its shareholder return policy of paying stable dividends and flexibly acquiring
4

treasury stock. Simultaneously, the Company has set the following targets (lower limitvalues) in the New Plan.
Financial soundness:

Equity ratio of 50% or higher

Capital efficiency:

ROE of 8% or higher

Shareholder returns:

Dividend payout ratio of 15% or higher(8) Sustainable Development Goal (SDG) initiatives
In keeping with the philosophy “Service to society and the public and soundmanagement,” for many long years the Group has contributed to society through thedevelopment of high-quality, safe societal infrastructure, engaging in the constructionof numerous bridges, buildings, and other structures. The Group will continue toengage in a variety of initiatives aimed at helping to realize a sustainable society.

5