Integrated Report 2021

Building links to the future

To Our Stakeholders

Aiming, as a leading company in the industry, to achievesustainable growth and solve social issues through humantalent and technologies that build links to the future
In line with our corporate philosophy of “Contribution to society and the public, and sound management,” theYBHD Group has been contributing to the development of Japanʼs urban and transportation infrastructure for
114 years since our forerunner, Yokogawa Bridge Works Ltd., was founded in Nishi-ku, Osaka City in 1907.
The Group has been a leading company in this industry for more than 100 years because we value people
and have used the skills of people to increase our corporate value. At present, we are leveraging our solid
technical capabilities based on steel structure technology, which is indispensable in the bridge business, toexpand into various fields, such as our engineering business centered on engineered structures for factory
and warehouse construction.
The business environment is changing dramatically with the intensification of social issues surrounding the
YBHD Group, including aging urban and transportation infrastructure, an increase in natural disasters causedby climate change, the impact of COVID-19 on economic activities, a declining birthrate and aging population, a shortage of human resources, and economic development in emerging countries.
Under these circumstances, the Groupʼs management vision is to realize the long-term protection ofbridges, multifaceted steel structure engineering, the creation of a resilient social environment and harmonious coexistence with the natural environment, and the construction of a robust operational foundation, as
well as the pursuit of sustained expansion.
Based on this management vision, our roles will include: creating value for society and the public bybuilding and protecting high-quality products and connecting them to future generations; contributing to theimprovement of regional convenience and the development of social life and logistics through infrastructuredevelopment; contributing to and driving the development of each business segment as a leading company;
and by transferring technology and knowledge through our overseas business, contributing to the development of the human talent that underpins national and regional economic development.
Going forward, we will keep doing our part to solve social issues while making steady progress, aiming toevolve into a corporate group that is needed by society and can grow sustainably through human talent andtechnologies that build links to the future.

Kazuhiko Takata

President and Representative Director
Yokogawa Bridge Holdings Corp.
Corporate philosophy
Contribution to society and the public, and sound management

Management vision
Realization of● long-term protection of bridges● multifaceted steel structure engineering● creation of a resilient social environment and harmonious coexistence with the natural environment● construction of a robust operational foundation
as well as the pursuit of sustained expansion

Corporate philosophy

Management vision

Roles of YBHD Group

Roles of YBHD Group
Creating value for society and the public by building and protecting
high-quality products and connecting them to future generations● Contributing to the improvement of regional convenience and the development of social life and logistics throughinfrastructure development● Contributing to and driving the development of each business segment as a leading company● Contributing to the development of the human talent that underpins national and regional economic development bytransferring technology and knowledge through our overseas business●1

Yokogawa Bridge Holdings Integrated Report 2021

Yokogawa Bridge Holdings Integrated Report 2021

2

Contents

Editorial Policy
Starting in fiscal 2021, we are publishing an integrated report

Going forward, we will continue to deepen our efforts andto communicate to stakeholders our efforts to realize thewill enhance the content of the report, with the hope that it

YBHD Groupʼs corporate philosophy of “Contribution tosociety and the public, and sound management.”

helps stakeholders to understand the YBHD Group.

PeriodScope

Fiscal 2020 (April 2020 to March 2021)

The YBHD Groupʼs initiatives, focusing on the Groupʼs financial and ESG information

Growth Strategies
Creation

Published
Inquiries about the report

September 2021

General Affairs Department, Yokogawa Bridge Holdings
Corp.
Tel: +81-3-3453-4111
Email: contact@ybhd.co.jp

Guidelines referenced●

International Integrated Reporting Council (IIRC)
International Integrated Reporting Framework●

Japanʼs Ministry of Economy, Trade and Industry
Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogues for Collaborative Value
Creation (Guidance for Collaborative Value Creation)●

WebsiteFor more information,please visit the website of
Yokogawa Bridge Holdings Corp.
http://www.en.ybhd.co.jp/

Global Reporting Initiative
GRI Global Standards for Sustainability Reporting

for

Value

Message from the President

5

Medium-Term Management Plan

11

History of the YBHD Group

13

Value Creation Process

15

Management Resources

17

Financial and Non-Financial Highlights

19

Business Overview

21

Special Feature
Yokogawaʼs Manufacturing

33

Group companies and their businesses
Consolidated Equity method
Groupsubsidiaryaffiliate
management

BridgeBusinessEngineering Precision Equipment Real EstateBusiness
Business
Business

Yokogawa Bridge Holdingsー

Yokogawa Bridge〇

Yokogawa System Buildings〇

Yokogawa NS Engineering

〇

●

●

Narasaki Seisakusyo

〇

●

●

Yokogawa Techno-Information Service〇

Yokogawa New Life

〇

YCE
ー

Yokogawa Techno Philippines, Inc.

●

●
●

●

●

●

●
●
〇

●

ー

●

●

Segment structure

Bridge BusinessEngineering BusinessNew bridge construction business●

Design, manufacture, and on-site construction of new bridges

39

Materiality (Key Issues)

43

Environmental Initiatives

45

Social Initiatives

46

Corporate Governance49

Compliance

54

Risk Management

55

Maintenance business●

Maintenance and repair of existing bridges●

Design, manufacture, and on-site construction of bridges outside Japan

Data Section

Engineered structure
system business●

Design, manufacture, and on-site construction of system structures (“yess buildings”)

Financial Information

57●

Design and manufacture of tunnel segments
Design and manufacture of off-shore and port structures

Location Information

63

List of Group Companies

64

Civil engineering business

Precision equipment manPrecision Equipment ufacturing businessBusiness
Information processing business3

R&D

Overseas business

Construction and machinery steel business

Real Estate Business

Foundation of Value Creation●

Construction of steel frameworks and forge work for high-rise buildings, etc.
Design, manufacture, and on-site construction of moveable building systems (YMA)● Water treatment equipment manufacturing business●●●

Production of high-precision frames for manufacturing equipment for LCD panels, OLED panels, andsemiconductors●

Software development●

Leasing some real estate owned as logistics warehouses, etc.

Yokogawa Bridge Holdings Integrated Report 2021

Company Profile and Matters
Related to the Companyʼs Shares

68

Yokogawa Bridge Holdings Integrated Report 2021

4

Message fromthe President
We will contribute to the realization of a sustainable society by working hard to further improve our technologies,
mainly by focusing on people, and by making eﬀective useof the technologies we have.

President and Representative Director
Yokogawa Bridge Holdings Corp.

Strengths of the YBHD GroupWe are continuing to lead the industry as the company
that has built the most bridges in Japan.
Since the founding of our forerunner, Yokogawa BridgeWorks Ltd., in Nishi-ku, Osaka City, in 1907, the YBHDGroup has been contributing continually to the developmentof urban and transportation infrastructure in Japan for 114
years as a corporate group that handles the manufacturing
and construction of steel structures such as bridges andsteel frameworks. For more than 100 years, the Group hasgrown as a leader in this industry because of our solid technical capabilities based on steel structure technology, whichis indispensable in the bridge business, and also because
we have worked continuously to refine those technicalcapabilities.
The YBHD Group has many businesses in which we areproud to be No. 1 in the industry. In particular, in the bridgebusiness, which has been our core business since our founding, we have held the No. 1 position in order volume as wellas production and construction volume for many years. It is
no exaggeration to say that we are “the company that has
built the most bridges in Japan,” and we have been involvedin the construction of many bridges that are well known inJapan. In the engineering business, which is our next corebusiness after the bridge business, our system structures
have the No. 1 share in the industry. Above all, our movablebuilding systems (YMA), which are special structures, far outstrip the competition in terms of originality and high technical5

Yokogawa Bridge Holdings Integrated Report 2021

competence; thus, they are spreading not only across Japanbut also globally. The high-precision steel frameworks of our
precision equipment manufacturing business, the strengthsof which are even higher technical and development capabilities, have an overwhelming competitive edge in the advanced
technology business field. In the information processing business, the Groupʼs bridge-related software has established aposition as a de facto standard in the bridge industry.
In the civil engineering and construction industries, technology is advancing rapidly and evolving constantly. Asa group that treats technical capabilities as a source ofgrowth, we are utilizing cutting-edge ICT to develop newtechnologies. For example, in response to the i-Bridge* initiative promoted by Japanʼs Ministry of Land, Infrastructure,
Transport and Tourism and the Japan Bridge Association, weare actively developing systems to make use of ICT. The useof 3D data in the field is now a trend in the industry, and the
YBHD Group has gone one step further and built a system
where it can be used at the construction stage in conjunction
with production and processing drawings. We believe that
if we can make this system usable all the way to the maintenance stage, it will make steel bridge maintenance easierand more reliable. In fiscal 2021, we established a Digital
Transformation (DX) Promotion Office to further promote
digitalization.
In the civil engineering business, we leverage our highgeneral engineering capabilities to provide a variety ofsteel structures, including off-shore and port structures.

The environmentally friendly water treatment technology ofNarasaki Seisakusyo, a group company, is highly regarded,
and R&D is currently underway to further improve its
performance.
Bridge construction, which the YBHD Group has always
excelled at, is precise, requiring accuracy at the millimeterlevel even for 1,000-meter-class bridges. Making use of oursteel structure manufacturing technology in the precisionequipment manufacturing business, we have been able torespond relatively easily to the micron- and nano-unit accuracy required in the production of frames for semiconductor
manufacturing equipment.
In collaboration with other industries, we are jointly developing a number of new products that are useful in measures
to extend the life of and maintain bridges, such as “cusa”
aluminum alloy permanent scaffolding co-developed with
Nikkei Engineering Co., Ltd. Since the use of lightweight,
corrosion-resistant aluminum alloy enables the permanent
installation of inspection walkways and scaffolding, we anticipate its further spread and market expansion in the future,
and we expect this to become a new specialty of the Group.
We value people and will increase corporate value
through the skills of people.
It is the power of our employees that underpins the maintenance and development of such high technical capabilities
and manufacturing. The YBHD Group has a tradition ofvaluing people since its founding. “Embody integrity!

Growth Strategies for Value Creation

Kazuhiko Takata

Create outstanding things!” These words of our founder,
Dr. Tamisuke Yokogawa, have been passed down for 100
years. In order to improve on the skills inherited from ourpredecessors and pass them on to future generations, we
actively conduct employee education aimed at enhancing
skills and knowledge. We will continue to make generous
investments that lead to the nurturing of people, hoping todevelop outstanding human talent. By making effective useof our extensive technical capabilities that have been further
advanced mainly by focusing on people, we will contributeto the realization of a sustainable society by building social
infrastructure that people can use with safety, comfort, andpeace of mind. We also aim to create new businesses byactively promoting new technical development.
In group management, we will leverage the characteristics of each operating company to complement and share
management resources, bringing together the Groupʼs total
strengths in an effort to increase corporate value over the
medium to long term, with a view to our next 100 years.
* i-Bridge
An initiative to utilize ICT in all processes from investigation and surveying to design, construction, inspection, and maintenance, in order to significantly improve the productivity
and safety of the bridge businessYokogawa Bridge Holdings Integrated Report 2021

6

Message from the President
Recognition of the Business Environment andCurrent Situation Surrounding the Company

ever, there is a need to further promote seismic reinforcement as
a way to bolster disaster prevention and mitigation measures.
We also hope to contribute by fully utilizing our technology inemergency measures to reinforce Japanʼs national resilience.
In response to these social conditions, the maintenancebusiness for existing facilities is growing in Japan. In particular, businesses such as large-scale highway renewal andrepair projects are expected to continue in the future.
In the bridge business, the number of new bridges had
been declining gradually, but there are plans for projects to
expand provisional two-lane sections of highways to four lanes
and to expand road networks such as the western extensionof the Osaka Bay Road. Since we can expect the amount ofbusiness to increase, we will maintain and expand our bridge

we will administer management resources such as engineers,
equipment, and production and construction systems in an
integrated manner, working to optimize their allocation.
Outside Japan, on the other hand, the need for bridge
construction is increasing with the economic developmentof emerging countries, and we regard this as an importantbusiness in the Groupʼs future growth strategy. Recently,
due to the COVID-19 pandemic and local political unrest,
infrastructure development overseas has been affected byconstruction interruptions in various countries and the forced
return of our personnel to Japan, but this is a business witha great social contribution significance in that it supports thedevelopment of those countries and regions. Going forward,
we will continue to expand our overseas business, to which
we will direct every resource while responding appropriately
to changing circumstances.

Progress of the Fifth Medium-Term
Management Plan
The current medium-term plan is generally doing well,and we will focus on resolving issues in each business infiscal 2021, the planʼs final year.
In our Fifth Medium-Term Management Plan (for the period
from fiscal 2019 to fiscal 2021; “Current Plan”), we haveestablished basic policies by area: bridge business, system
structure business, civil engineering business, and otherbusinesses. By analyzing the challenges in each businessand taking countermeasures, we aim to realize our management vision of long-term protection of bridges, multifaceted
steel structure engineering, and construction of a robust
operational foundation, and to pursue sustained expansion.
In fiscal 2020, orders received in the system structure business in particular were sluggish due to the COVID-19 pandemic,

7

Yokogawa Bridge Holdings Integrated Report 2021

falling short of the plan. However, an upturn in the bridge business helped us achieve our targets for operating profit andearnings per share one year ahead of schedule. Although sales
in fiscal 2021, the final year of the Current Plan, are expected
to exceed fiscal 2020, it will be difficult to exceed the operating
profit of fiscal 2020, which was higher than expected. Thus, weare anticipating higher sales but lower profit. Overall, the planis generally on track. In terms of targets, although the achievement of sales of 160 billion yen will be somewhat difficult, we
expect to achieve operating profit of 14 billion yen, given thework backlog. In fiscal 2021, the planʼs final year, we will con-and strengthening our profit-and-loss management framework. The establishment of the dual-plant system generally
proceeded as planned. As the economic downturn causedby the COVID-19 pandemic dragged on, orders received
slumped due to postponements and reworking of someprojects, but profitability improved with the strengtheningof profit-and-loss management, resulting in an increase inprofits in fiscal 2020. In fiscal 2021, we expect to start construction on projects that had been postponed, so we feelcertain that our business performance will recover.
The basic policy for our civil engineering business is totinue to work to resolve challenges in each business.
Working based on our basic policy to pursue maintenance,
expansion, and optimization of the bridge business by reinforcing capacity in the bridge maintenance business in addition to
new bridge construction, in fiscal 2020, our bridge business
was able to successfully secure orders for major highway construction projects as well as projects from the Ministry of Land,
Infrastructure, Transport and Tourism and local governments.
Notably, in fiscal 2020, we posted record orders received andoperating profit due to the completion of a concentrated cluster of major long-term construction projects. We expect sales
in fiscal 2021 to remain high. Although we think it will be difficult to exceed the profit of the previous year when there wasa cluster of project completions, we will continue to improve
production efficiency and optimize management resources inorder to keep capturing large-scale projects.
Our basic policy in the engineered structures business is
to pursue the further expansion of the engineered structures
business by establishing a dual-plant production systemfurther grow the civil engineering steel structure engineeringbusiness, as exemplified by tunnel segments. In this business, orders received and production remained flat in fiscal
2020, as work schedules for shield tunneling projects havegenerally been pushed back.
In other businesses, the COVID-19 pandemic had a considerable impact on businesses such as the overseas bridgebusiness, but sales and profits increased in the precision equipment business, such as the precision equipment manufacturingbusiness and information processing business. Other businesses are continuing to grow in line with our basic policy toalso pursue the expansion of the overseas bridge, aluminumproducts, and precision equipment manufacturing businesses.
Our basic capital policy of maintaining a balance between
financial soundness and capital efficiency remains unchanged,
as does our shareholder return policy of paying stable dividends
and flexibly acquiring treasury stock. Going forward, we hopeto keep increasing dividends while comprehensively taking into
account future capital requirements and other considerations.

Yokogawa Bridge Holdings Integrated Report 2021

Growth Strategies for Value Creation

We are aiming to further expand our business by
responding to the demands of society, including increasing national resilience.
Japanʼs urban and transportation infrastructure was rapidly
developed when the country entered its period of rapid economic growth, meaning that more than 50 years have passed
since its construction. Now, the number of facilities for which
aging is a concern is increasing, and countermeasures areneeded urgently. Moreover, large earthquakes that caused
unprecedented damage, such as the Great East Japan
Earthquake and the Kumamoto Earthquake, and flooding that
submerged urban areas have occurred frequently in recent
years. There is an urgent need to develop infrastructure that is
resistant to such natural disasters. The YBHD Group has beencommitted to disaster recovery support, but now more thanbusiness by reinforcing capacity in our bridge maintenancebusiness in addition to new bridge construction. In the engineering business, we are expecting large-scale projects suchas the maglev Chuo Shinkansen high-speed rail line and urban
redevelopment projects in the tunnel segment of our civil engineering business. In the system structure business, private
business fixed investment weakened due to the impact of
COVID-19, which also affected orders received. However, we
expect demand for construction of factories and warehouses
to grow as the economy recovers. We will aim to improve
profit margins and expand our business by increasing production capacity through a dual-plant system (in the cities ofSodegaura and Mobara in Chiba Prefecture) and by strengthening our profit-and-loss management framework.
In Japan, although there is uncertainty caused by COVID-19,
there is strong demand in all business domains, and we believethat the overall market will remain firm. In all our businesses,

8Message from the President

We aim to build a resilient management foundation thatcan even withstand unexpected risks.
The YBHD Groupʼs business risks vary by business domain.
In the bridge business, the majority of orders are fromnational and local governments. So, major changes in policies related to social infrastructure and rapid deterioration in
public finances may affect business performance, such as adecline in orders received and sales, especially if the numberof new bridges ordered in the future is significantly lower
than expected. While the bridge and civil engineering businesses are not easily affected by economic conditions, they
are susceptible to government policy. A risk in the engineered
structures business, on the other hand, is that it is sensitive
to the economic climate. This is why we intend to pursue
overall optimization, with the bridge, civil engineering, andengineered structures businesses complementing each other.
In addition, the shortage of workers in the construction
business and their aging have been long-standing concerns.
The aging of managing engineers and the decline in young
personnel with a preference for field work are serious issues.
Accordingly, we hope to secure personnel and enhancecareers throughout our construction departments by conveying the appeal of field work and carrying out personnel
rotations among various departments. In particular, active
education is important for the development of managing
engineers, for which we also need to strengthen measures
to support the acquisition of qualifications. When I was activein the field, I was taught that work is something you learn
by watching, but now the times have changed, so I think
we need the sympathy to teach in the most specific terms
possible. We will also proactively tackle workstyle reforms,
including system reforms that take work-life balance into
account.
We recognize that ensuring safety on construction sites
continues to be an important issue for us and a risk that9

Yokogawa Bridge Holdings Integrated Report 2021

Deepening and Promoting ESG Management
We will do our part for the SDGs and carry out ESG initiatives according to our materiality (key issues).
It is not sufficient for companies to just make a profit andreturn it to employees and shareholders; they must also
assume a variety of responsibilities as members of society.
At the YBHD Group, we actively promote measures thatemphasize ESG perspectives, and consider it essential towork to solve social issues through our business, including
with a view to helping to achieve the SDGs.
Since not all social issues are solvable in the short term,
I feel that there is a need for companies to take long-term,
sustained initiatives. In order to advance solutions to social
issues through our main business, it is necessary to incorporate elements such as a broad outlook and a long-term
perspective into our governance, and for each member of
the Group to share the same ideals.
The SDGs include goals deeply related to construction
and development projects, such as building disaster-resilient
infrastructure and developing sustainable cities and communities. These goals are very closely related to the Groupʼsbusiness and are also consistent with our corporate philosophy of “Contribution to society and the public, and soundmanagement.” In our case, a characteristic is that each andevery employee is strongly aware and proud of being responsible for public works that support peopleʼs lives, and whena new bridge is completed, we often receive words of thanksfrom local residents. Going forward, we hope to continue toconnect deeply with people living in the area and to connect our work to the development of social life and the local
economy.
Since our founding, the YBHD Group has been working
to solve societal issues in the field of social infrastructuredevelopment through the construction of bridges and otherstructures. Now, as we continue to expand globally, we mustbe fully aware of addressing social and environmental issues,
including the SDGs. Given this background, at a Board of
Directors meeting in September 2020, we established 18
material issues and added “creation of a resilient social
environment and harmonious coexistence with the naturalenvironment” as a new management vision. Accordingly, we
will work to create a resilient social environment while minimizing the burden on the natural environment. For example,
even if a natural disaster causes damage, if early recovery
is possible, the impact on the natural environment would
be that much less. Moreover, by providing highly durable
infrastructure, we believe that the period until construction
for maintenance and retrofitting can be lengthy, thereby also
reducing the burden on the natural environment. Rather thanbuilding things and forgetting about them, we believe that it
is our social responsibility to ensure that the things we build
can be used for as long as possible. So, we will focus on themaintenance business more than ever before.
As tackling climate change has become increasingly
important worldwide in recent years, one of the material
issues we identified is the reduction of the environmental
impact of business activities and promotion of the adoption ofrenewable energy. In the short term, we aim to further reduce
CO2 emissions, and we are currently working to quantitatively
ascertain CO2 emissions at each of our business and construction sites in Japan. In the medium to long term, we will
advance CO2 reduction, mainly through the development of
products with low environmental impact based on the data
gathered, aiming to actively contribute to the transition to a
decarbonized society with a view to expanding the use ofrenewable energy in the future.
Regarding the balance between the social and economic
value we provide to society, I hope that our officers andemployees will recognize anew their significance, including
the initiatives that we have taken for granted thus far as our
corporate mission, and I want us to translate initiatives in the
ESG field into sustainable growth for the Group. Focusing on
our 18 material issues, we will accelerate initiatives in eachGroup company and business division, encourage them totake on challenges in new business fields, and promote solutions to social issues through our business.

To Stakeholders
I invite you to look forward to the future of the YBHDGroup, which is needed by society and will achieve sustainable growth.
This is our first time issuing an integrated report.
In recent years, more attention is being paid to companiesʼ
non-financial information, and the way corporate information
is disclosed is being reconsidered. Given this situation, the
YBHD Group believes that the integrated report is one of thebest communication tools to explain to shareholders, business partners, employees, and other stakeholders how wewill create value over the long term.
In this our first integrated report, we have organized currently obtainable data on our financial and non-financial
information and striven to present it clearly. With this report,
we will facilitate dialogue with stakeholders in an effort toenhance its content and establish a system for disclosing
information.
Also, since fiscal 2021 is the final year of our Current Plan,
we have established a new management vision and are currently formulating our next medium-term management plan.
We hope to make our next plan one that will resonate with
employees and the Companyʼs other stakeholders, while
receiving opinions from people outside the Company suchas outside directors, in light of the business and social environment that is changing due to things such as the impactof the COVID-19 pandemic. We will announce the new plan
once it is finalized.
Going forward, we will continue to contribute solutions tosocial issues while pushing forward steadily, aiming to evolve
into a corporate group that is needed by society and cangrow sustainably through human talent and technology thatbuilds links to the future.

Yokogawa Bridge Holdings Integrated Report 2021

Growth Strategies for Value Creation

Responding to Business Risks

urgently needs countermeasures. We will therefore continue
to make every effort to prevent accidents. Specifically, in
addition to disseminating case studies on past accidents, wewill accelerate more effective safety measures by promoting
work procedure improvements, safety equipment innovation, redundancy of safety devices, systemization of work
monitoring, thorough employee health management, etc.
Moreover, there have been cases of COVID-19 in domestic construction projects we were involved with. Given this,
we must assume that work processes could be affected andcosts could increase due to the interruption of construction
work or closure of business sites. We will therefore pay close
attention to infection prevention and respond appropriately
according to the situation, such as by consulting with ourclients.

10

Medium-Term Management Plan
Numerical targets

Performance trends in the Medium-Term Management Plan
15.9
131.0

102.7

105.7

88.2

113.4
8.0

6.5

6.4

58.6

69.3

13.7
73.9

6.9

141.9

138.1

10.5

12.8

152 billion yen

14.0 billion yen

73.3

81.2

78.3 billion yen

68.4

26.1

30.0

33.9

2013

2014

2015

Bridge business

2017

63.3

2018

4th Medium-Term Management PlanEngineering business68.1 billion yen

52.9

48.3

2019

2020

Net sales

160 billion yen 138.1 billion yen 136.0 billion yen 152.0 billion yen

Operatingprofit14.0 billion yen 12.8 billion yen 15.9 billion yen 14.0 billion yen

Earnings pershare

230 yen/share 217 yen/share 273 yen/share 242 yen/share

We achieved the Current Planʼsnumerical targets for operating
profit and earnings per sharein the planʼs second year. In
fiscal 2021, the planʼs final year,
although achieving sales of 160
billion yen will be somewhat
difficult, we expect to achieve
operating profit of 14.0 billion
yen.

FY2021(Forecast)

5th Medium-Term Management Plan

Precision equipment business

FY2021(forecast)

Capital policy and shareholder returns

Operating profit

Recognizing the distribution of profits to shareholders as oneof the most important measures, our basic policy is to continue to pay stable dividends, comprehensively taking into
account our business performance, capital requirements

associated with future business development, and otherconsiderations. Based on this basic policy, we anticipate thatthe annual dividend for fiscal 2021 will be 60 yen, an increaseof 8 yen and a payout ratio of 25%.

Basic policies and progress
The Fifth Medium-Term Management Plan (“Current Plan”)
that started in fiscal 2019 has four basic policies: realizationof long-term protection of bridges, multifaceted steel structure engineering, and construction of a robust operationalfoundation, which is our management vision, as well as the

pursuit of sustained expansion.
Even as the effects of COVID-19 continue to grow, the
YBHD Groupʼs business performance has been generally
on track; operating profit, ordinary profit, and net income forfiscal 2020 all reached record highs.

Progress in relation to basic policies

１

Pursue maintenance, expansion, and optimizationof the bridge business by reinforcing capacity in thebridge maintenance business in addition to new bridge
construction

With projects to expand highways to four lanes andmajor renewals, new bridge construction and maintenance were both strong, with orders received andperformance for fiscal 2020 hitting record highs.

２

Pursue further expansion of the engineered structures
business by establishing a dual-plant production
system and strengthening the profit-and-loss management framework

Establishment of the dual-plant system generally proceeded as planned, and while orders received slumped
due to the COVID-19 pandemic, profitability improved
with the strengthening of profit-and-loss management.

Further grow the civil engineering steel structure engineering business, as exemplified by tunnel segments

Although work schedules for shield tunneling projects
have generally been pushed back, we continued toconcentrate on capturing large-scale demand.

Also pursue expansion of the overseas bridge, aluminum products, and precision equipment manufacturingbusinesses

While overseas bridges and other businesses were
impacted by the COVID-19 pandemic, orders received
by the precision equipment manufacturing businessincreased.

３
４
11

Yokogawa Bridge Holdings Integrated Report 2021

Basic strategy for capital policy

Maintaining a balance between financial soundness and capital efficiency

Shareholder return policy

Paying stable dividends and flexibly acquiring treasury stock

Growth Strategies for Value Creation

3rd Medium-Term Management Plan

2016

50.9

FY2020(actual)

82.4

65.0

42.8

FY2019(actual)Target136.0

Numerical targets (updated January 2021)

Performance
FY2019FY2020

FY2021Equity ratio

58.6%

59.6%

Maintain at current level as it is sufficient

Return on equity

10.4%

11.9%

Maintain at approx. 10% level

Payout ratio

17.0%

19.0%

Consider rough target range of 20% to 30%

Toward the Sixth Medium-Term Management Plan
For the Sixth Medium-Term Management Plan (“Next Plan”),
which begins in fiscal 2022, we will analyze the businessenvironment not only for the engineered structures business,
which is a growth driver, but also the bridge business andother business from a medium- to long-term perspective inorder to achieve sustainable growth. Under the Next Plan,
we expect to aim for net sales above 160 billion yen, andin order to improve productivity, we will also make full-scale

efforts to go digital, led by the DX Promotion Division established in fiscal 2021.
Furthermore, as we go about formulating the Next Plan,
we will identify material issues as a Group from the perspective of ESG (environment, society, and governance), and holddiscussions within the Group on various issues to address forthe realization of a sustainable society.

Yokogawa Bridge Holdings Integrated Report 2021

12

History of the YBHD Group
1907

1960

1990

2000

2010

From 2020

Founding, through the war
years, to post-war recovery

An era of rapid growth
Yokogawa builds skyscrapers

Linking Japanʼstransportation arteries

Advanced technology

Linking and connecting
large spaces

1968
As a trailblazing manufacturer of steel
structures, the company provided
the structural framework for the
Kasumigaseki Mitsui Building (nowthe Kasumigaseki Building), Japanʼsfirst skyscraper.

1993
A new Tokyo landmark: The Rainbow
Bridge2001
Toyota Stadium, built using
Yokogawa System Buildings
Corporationʼs YMA moveable building system

2011
Spacious, beautiful, and comfortable̶the new, completelytransformed Osaka Station

Expanding into the
future1907
Dr. Tamisuke Yokogawa founded
Yokogawa Bridge Works Ltd., theforerunner of Yokogawa Bridge Corp.

1931
The Hiyamagawa Bridge on the Ou Main
Line, the first bridge of its kind in Japan
to be built using welding reinforcement

1913
The Yatsuyama Bridge, then thelargest overpass bridge ever built in
Japan
1937
The upper truss of the Yu River Bridge in
Datong, China; this was the first time thatthe company had undertaken reconstruction
work of a bridge that had been destroyed.

1928
Mansebashi Overpass, Japanʼs first
curved railway bridge

Sales over time

1938
The company was responsible for producing the steel frame used in the Dai-Ichi Life
Insurance head office building, the most imposing building of its kind in Japan at the time.
In the immediate post-war period, theGeneral Headquarters (GHQ) of the Supreme
Commander for the Allied Powers (SCAP) was
located in this building.

1948
The Chusetsu Bridge paved the way
for large-scale construction of roadbridges in the post-war era.

1955
The Saikai Bridge, which heralded
the trend towards larger, longer
bridges.

1998
The worldʼs longest suspension
bridge: the Akashi Kaikyo Bridge
1970
World Trade Center Building (Tokyo)
Also in 1970: Keio Plaza Hotel

1974
Supporting skyscraper construction
as a manufacturer of steel structures
Shinjuku Mitsui Building

1999
The worldʼs first triple suspension
bridge, consisting of three long
successive suspension bridges:
Kurushima Kaikyo Bridge

2003
The Rokujizo section of the Kyoto
Municipal Subway Tozai Line usedcomposite segments supplied by
Yokogawa NS Engineering Corp.

2009
Stonecutters Bridge in Hong Kong,the worldʼs largest composite cablestayed bridge

2016
An engineered structure carefully
tailored to suit its purpose andusage̶Nasu no Megumi Mekke!

2018
Japanʼs largest solid-rib arch bridge:
Tenjo Bridge(1 billion yen)
160

160

140
120

140
Engineering business
35.5% (48.3 billion yen)

120
Consolidated sales for FY2020

136.0 billion yen

100
80
60
40

Growth Strategies for Value Creation

1940
On the Kachidoki Bridge, the 45.7meter central spans opened to allow
ships to pass.

Bridge business
60.7% (82.4 billion yen)

100
80

Precision equipment business
3.4% (4.6 billion yen)

60

Real estate business
0.4% (0.6 billion yen)

40

0

0
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20

20

19
60
19
61
19
62
19
63
19
64
19
65
19
66
19
67
19
68
19
69
19
70
19
71
19
72
19
73
19
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80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89

20

The background photo shows the Kototoi Bridge, the furthest upstream of the six main bridges over the Sumida River, in 1928.
At the time, this was the largest bridge in Japan.

13

Yokogawa Bridge Holdings Integrated Report 2021

Yokogawa Bridge Holdings Integrated Report 2021

14

Value Creation Process
Business environment
Social change

Social issues● Declining birth rate and aging population● Infectious disease

Industry issues

outbreaks● Digitization● Workstyle and lifestyle changes

Stakeholders● Aging infrastructure● Shortage of workers● Decarbonized society● Work-life balance● Climate change

1,891
1,044

Employees
Qualified personnel

Employees

Local communities

Outputs

Outcomes

Corporate philosophy

Economic value provided

Contribution to society and the public, and sound management P1

P19-20Management vision● Net sales

P1● Operating profit

Realization of● Long-term protection of bridges● Multifaceted steel structure engineering● Creation of a resilient social environment and harmonious coexistence with the natural environment● Construction of a robust operational foundation
as well as the pursuit of sustained expansion● Ordinary profit● Net income

Bridges in Japan

Bridges outside Japan● Earnings per share● Equity ratio● Payout ratio

Roles of YBHD GroupP57-62136.0 billion yen
15.9 billion yen
16.0 billion yen
11.2 billion yen
273.09 yen
59.6%
19.0%

Growth Strategies for Value Creation

Human capitalBusiness partners

Global environment

accident

P17-18Workforce consisting of a large number ofqualified personnel
Technical capabilities accumulated
through abundant achievements andexperience
Corporate culture of embracing challenges
as a leading company

Customers● Prevention of occupational● Increasing natural disasters

InputsShareholders and investors

P1Intellectual capital214
400 million yen

Patents
R&D spending

Growth strategy
Fifth Medium-Term Management Plan

P11-12Business strategy

Manufacturing capital
7
Osaka Plant
60,000 t/year
Chiba/Mobara plants 90,000 t/year

P7-8

Engineered structures

Seawalls

Production bases

BridgebusinessEngineeringbusiness

P21-24

P25-30

P31-32Social capital
Order value
Distributors

189.6 billion yen
Over 1,200

Financial capital
94.8 billion yen
16.5 billion yen

Stockholdersʼ equity
Interest-bearing debt

R&D

Precisionequipment
business

P39-42

Materiality (Key Issues)Special-purpose buildings

Underground tunnels

Bridge attachments

Information processing

Social value provided● Contribution to society through devel-

opment of social infrastructure, etc.
● Greater customer satisfaction● Support for employee skill development● Accumulation of technical capabilities
and know-how● Revitalization of local economies
through employment● Consideration for the global environment

P43-44

Environmental Initiatives

Social Initiatives

P45

P46-48Natural capital
Power consumption
Steel consumption

15

24.23 million kWh
115,000 tons

Yokogawa Bridge Holdings Integrated Report 2021

GovernanceP49-56

Yokogawa Bridge Holdings Integrated Report 2021

16

Management Resources
The YBHD Groupʼs strengths are: a workforce consisting of a large number of engineers; technical capabilities accumulated
through abundant achievements and experience; and a corporate culture of embracing challenges as a leading company. In order
to bolster these further, we are working to enhance our management resources such as human capital and intellectual capital.

Human capital
Employees group-wide
Qualified personnel

1,891
1,044

Qualified personnel (engineers)

As of March 31, 2021

Persons
Professional engineers

157

First-class architects

37

First-class civil engineering
management engineers

737

First-class architectural construction management engineers

113
1,044

Total

various large steel structures.
In the engineering business, we operate at full capacity
the industryʼs only plants dedicated to engineered structures (Chiba Plant and Mobara Plant) to further increase ourmarket share in the field of engineered structures.

Social capitalin collaboration with more than 1,200 affiliated builders
nationwide.

billion189.6 yen
Distributors nationwide Over 1,200(Engineered structures affiliated builders)

Breakdown of consolidated orders received
Overseas 3.0%

→ See P47-48 for our human resources initiatives.

In the bridge business, we have received orders for new construction, maintenance work, and overseas construction fromvarious clients such as the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT), local governments, highway
companies, and private companies, based on the relationships of trust we have cultivated up to the present.
In the engineered structure system business, we arefocusing on customer development and market expansion

214
R&D spending 400 million yen

Nov. 2012– Mar. 2019

Nippon Steel, Yokogawa Bridge
Research on expansion device used
Holdings, Yokogawa NS Engineering for bridges and other structures

Dec. 2013– Mar. 2016

Yokogawa Bridge, Metropolitan
Expressway, Kawada Industries,
Kawada Construction

Dec. 2014– Mar. 2017

Hanshin Expressway, Hanshin Joint research on structural improveExpressway Technology
ment of closed cross-section ribbed
Center, YCE, Yokogawa Bridge steel plate reinforcement

Sep. 2015– Dec. 2016

The University of Tokyo, Yokohama
National University, Maebashi Institute ofTechnology, Yokogawa Bridge Holdings

Performance evaluation of blast
furnace slag concrete for increased
durability of steel bridge RC slabs

Apr. 2016– Mar. 2019

Nippon Steel Engineering,
Yokogawa NS Engineering

Structure proposal for small andmedium span bridges and research on
replacement and renewal techniques

Apr. 2016– Mar. 2021

Yokogawa Bridge, Oxjack

Research on power dampers withbridge collapse prevention function

Yokogawa Bridge, Oxjack

Development of earthquake-resistant equipment (grippers) inthe direction of the bridge axis

Jul. 2017– Jul. 2019

Yokogawa Bridge,
Metropolitan Expressway

Research on the structure andconstruction method of slab connectors in existing RC slab renewal

Feb. 2018– Mar. 2022

Nippon Steel,
Yokogawa NS Engineering

Research on steel plate structure for rapid renewal of existing
RC slab bridges

Natural Capital As of March 31, 2021

Apr. 2019– Mar. 2021

Yokogawa Bridge, Nikkei
Engineering, Yokogawa Bridge
Holdings

Research on floor panel span
extension in “cusa” aluminumalloy permanent scaffolding

Power consumption

Sep. 2020– Mar. 2021

Yokogawa Bridge,
Osaka Prefecture University

Development of damping assessment
method for highly damped structures

PeriodApr. 2017– Mar. 2021

As of March 31, 2021

Participants

Research topic

Research on rapid construction
updating techniques for existing
RC slabs→ See P39-42 for our R&D initiatives.

Yokogawa Bridge Holdings Integrated Report 2021

→ See P63 for information on our bases.

Order value in FY2020

Intellectual capital

The YBHD Group has built many and various kinds of pioneering buildings. As a fixed-arch bridge, the Saikai Bridge,
which we worked on in 1955, was Japanʼs first large andlong bridge. The Kasumigaseki Mitsui Building (now theKasumigaseki Building), which we built in 1968, was Japanʼsfirst skyscraper. In addition, as a leading company, we havetaken on the challenge of building other Japan-first and evenworld-first bridges, such as the Kurushima Kaikyo Bridge,
the worldʼs first triple suspension bridge, and Akashi Kaikyo
Bridge, which boasts the worldʼs longest span.
To further enhance the technical capabilities accumulated
through such abundant achievements and experience, ourTechnical Research Laboratory and operating companies
work together, and we focus on R&D through joint researchwith universities and research institutes.

Osaka Plant

The YBHD Group has its own production bases, such aslarge plants that manufacture bridge parts, where employees
and skilled craftsmen in production departments machine
and assemble parts.
The Osaka Plant, our main plant, is located in the Sakai
Senboku Coastal Industrial Zone. As a plant with state-ofthe-art equipment, it is responsible for the production of

Joint research achievements

Patents held

17

7
Osaka Plant
60,000 t/year
Chiba/Mobara plants 90,000 t/year
Production bases

Financial Capital As of March 31, 2021

94.8 billion yen
Interest-bearing debt 16.5 billion yen

Stockholdersʼ equity

In order to support business continuity as a builder of bridges
that require 100 years of durability, we strive to ensure financial soundness with a basic capital policy of maintaining a

24.23 million
kWhSteel consumption 115,000 tons

Ministry of Land, Infrastructure,
Transport and Tourism 7.9%

Local governments
7.8%

Growth Strategies for Value Creation

For the YBHD Group to achieve sustainable growth, it isessential to improve the technical capabilities of employees,
our human talent. Orders for public works projects in particular require experienced qualified personnel, so we needa large number of highly specialized engineers. In order tosupport and promote autonomous career development, theGroup has a self-reporting system in which employees meetwith the person in charge of their department to talk abouttransfer desires or skill development. We use this system toconduct job rotations and appropriate personnel assignment
according to aptitude. We also actively provide support for
employees to attend training sessions and seminars, including to obtain related qualifications. The broad expertise ofeach and every employee, deepened in this way, is thesource of the Groupʼs high technical capabilities.

Manufacturing Capital

Private companies
36.1%

Railway related 1.7%

Highway companies
43.5%

balance between financial soundness and capital efficiency
and a basic shareholder return policy of paying stable dividends and flexibly acquiring treasury stock. We secure
operating capital and funds for capital investment throughfree cash flow and indirect procurement, and financial stability and liquidity are supplemented by commitment line
agreements.
→ See P57-62 for financial information.

The YBHD Group strives to use resources efficiently by quantitatively ascertaining and scrutinizing resource and energy
usage at its business sites in Japan.
In addition, we will drive the reduction of environmental
impact by actively working on the use of renewable energy
and the development of environmentally friendly products
and construction methods.
→ See P45 for our environmental initiatives.

Yokogawa Bridge Holdings Integrated Report 2021

18

Financial and Non-Financial Highlights(Items without notes are consolidated.)

Net sales / Operating profit / Operating margin

Equity / Equity ratio

CO2 emissions / CO2 emissions intensity(Scope 1 and 2 for bases and construction sites in Japan)
10.2

11.7％
％

10.5

10.0

59.6％
％

Waste generation (steel) / Recycling rate
100

100

100％

9.8 t-CO₂/1 million yen
7,424 t

58.6
9.3

7.4
7.1
113.4

141.9

131.0

7,032

56.3
138.1

136.0 billion yen
53.3

78.8

54.4

101.1 billion yen

84.2

89.4

2018

2019

6,267
14,534

13,863

13,318 t-CO₂

2019

2020

68.3
8.0
2016

13.7

10.5

12.8

2017

2018

2019

Operating profit

2020

2016

2017

EquityOperating margin

Net income attributable to owners of parent / Return on equity

2020

2018

Equity ratio

CO₂ emissions

Orders received

2018

2019
Waste generation (steel)

CO₂ emissions intensity

Number of full-time employees / Percentage of female full-time employees

2020
Recycling rate

Employment rate of persons with disabilities

189.6 billion yen
1,891

12.8
148.7

％
11.9％
9.2

124.3
83.2

2.21％

2.17

14.0
1,800

1.99

69.4

62.2

9.0

127.5 billion yen

91.7

11.2 billion yen
9.3

15.6％
％

14.6

10.4
113.7

6.5

153.2

Growth Strategies for Value Creation

Net sales

15.9 billion yen

1,749

7.5
4.3

46.3

2016

2017

2018

2019

Net income attributable to owners of parent

2020
Return on equity

2016

60.3

57.3

51.1

57.1 billion yen

2017

2018

2019

2020

Bridge businessEngineering business

Precision equipment business

2018

2019

Full-time employees

2020

2018

2019

2020

Employment rate of persons with disabilities

Percentage of female full-time employees* Average for five operating companies

Dividend per share / Earnings per share / Payout ratio
17.0
15.5

226.93

Capital investment / Total dividends

％
19.0％

Average overtime work hours per month7

2.1 billion yen

273.09 yen
16.5

Number of occupational accidents

6

217.61

30.6
26.4

182.33
1.2
9.7

0.9

102.98
0.6

16.00

22.00

2016

2017

Dividend per share

30.00

2018

37.00

2019

Earnings per share

7.3

1.5
10.1

7.6
6.0 billion yen

52.00 yen

1

3.3

2020
Payout ratio

2016

2017

2018

Capital investment

2019
Total dividends

2020

2018
Fatal accidents

0

0

2019

2020

Accidents causing lost worktime (four or more days lost)* Total for four operating companies involved in manufacturing

19

Yokogawa Bridge Holdings Integrated Report 2021

23.1h

4

2018

2019

2020

Average overtime work hours per month* Average for five operating companies

Yokogawa Bridge Holdings Integrated Report 2021

20

Business Overview

Bridge BusinessBusiness strategy

Bridge BusinessAs bridge professionals, the YBHD Group has created value
for society and the public by building, protecting, and passing on to future generations high-quality bridges that canwithstand the test of time. Going forward, we will continue tobe a leading company in steel bridge construction and aim to
be a comprehensive bridge engineering company that also
manufactures concrete structures. Further, we will expand
our business overseas in regions where significant growth isexpected in the future, mainly in Southeast Asia, Southwest
Asia, and Africa.

As a pioneer in steel bridges in Japan, the YBHD Group has been
continually developing cutting-edge technologies for 114 years.
Our bridge business consists of three businesses: the new bridge
construction business, maintenance business, and overseas
business.

●●

Decrease in demand for new bridges
Increase in demand for bridge maintenance

Increase in computer-aided construction
Safety risks such as accidents● Quality defects● Shortage of registered engineer

Strengths●●

Corporate culture of taking on challenges
Active use of state-of-the-art technology● Ability to respond to customer needs● State-of-the-art production plant (in Osaka) with an annual
production capacity of 60,000 tons

●

●

●

●

●

Impact of COVID-19

Workforce consisting of a large number of qualified personnel
Advanced technical capabilities accumulated over many years

Possession of a full range of construction equipment
Department specializing in computer-aided construction● Integrated management system from material procurement
to design, production, and on-site construction●●●

Business situation
In the bridge business, the trend away from new construction
towards greater emphasis on the maintenance and retrofitting of existing bridges, or in other words from “flow” towards“stock,” is accelerating. In recent years, there has been growing
concern that much of the infrastructure built throughout Japan
during the era of rapid economic growth is starting to become
old and decrepit. In response, plans are being formulated andimplemented to facilitate a large-scale renewal and renovation
program, with a particular focus on expressway bridges, alongwith large-scale repair work on the bridges of the Tokaido
Shinkansen high-speed rail line. The YBHD Groupʼs efforts
to respond to the new trend in this business environment are
creating results, including orders for large-scale maintenanceprojects with contract amounts exceeding 10 billion yen
each, such as the renewal of bridges between the Ikeda and
Takarazuka interchanges on the Chugoku Expressway (orderedby West Nippon Expressway Co., Ltd.) and the replacement of
Anogawa River Bridgeʼs deck slabs (ordered by East Nippon
Expressway Co., Ltd.) in fiscal 2020. In addition, orders for new
bridge construction remained strong, resulting in a record highin orders received for the bridge business.

Proposal sales capabilities that take advantage of synergies
across the GroupAs for overseas markets, while there is strong demand forinfrastructure in emerging countries, risks related to the overseas
business are increasing, such as the global spread of COVID-19 andthe deterioration of law and order in some countries. With regard tothese issues, we will move forward with our business while putting
the first priority on ensuring the safety of personnel posted overseas.
Regarding human talent, which is one of the YBHD Groupʼsstrengths, we are trying to pass on skills from veterans to young
employees as the shortage of registered engineer becomes an issue.
Also, with BIM/CIM, i-Construction, and other computer-aided construction using ICT increasing rapidly, we haveestablished a department specialized in computer-aided
construction in order to better address this trend.
Net sales and orders received (left axis) and operating
profit (right axis) in the bridge business

70

6

0
2018

2019

2020

Net sales
New bridges

Maintenance2018

Yokogawa Bridge Holdings Integrated Report 2021

Project owner20192020 (FY)

Overseas

Operating profit

As the highways and bridges that served as the social infrastructure that has long supported Japanʼs postwar economy
become older, there is a growing demand for maintenanceand repair technology and improved maintainability. Building
on our many years of experience and achievements as a leading bridge company, our engineers with advanced expertiseare developing maintenance and repair methods with higher
safety, workability, and durability. In addition, we have a large
number of original products that help improve the maintainability and seismic performance of existing bridges. Throughthese technologies for extending the life of bridges, we will contribute to the maintenance of high-quality social infrastructure.

Overview
Large-scale renewal(2) Metropolitan Expressway

Project

Cost

extension

Notes

Bridge slab replacement

Approx. 230 km Approx. 1,650 billion yen

Girder replacement

Approx. 10 km

Large-scale repairs

Girder reinforcement, etc.

Approx. 150 km Approx. 260.0 billion yen

Large-scale renewal

Haneda Route, Shibuya Route,
Inner Circular RouteApprox. 8 km Approx. 380.0 billion yen Fiscal years: 2014 – 2040

Large-scale repairs

Shibuya Route, Shinjuku Route, etc.

Approx. 55 km Approx. 250.0 billion yen Fiscal years: 2014 – 2024

Large-scale renewal

Whole bridge replacement (twolocations)

0.5 kmApprox. 48.7 billion yen Fiscal years: 2020 – 2028

Bridge girder and slab replacement (three locations)

0.9 kmApprox. 34.4 billion yen Fiscal years: 2016 – 2029

Bridge slab replacement (fourlocations)

3.1 kmApprox. 48.8 billion yen Fiscal years: 2015 – 2029

Bayshore Route, Ikeda Route, etc.

57 km Approx. 217.6 billion yen Fiscal years: 2015 – 2029

(1) East, Central, and West
Nippon Expressway(3) Hanshin Expressway

0

Orders received

Contributing to the longevity of social capitalstock through the development of new technologies and products

Main business overview (disclosure basis)(1 billion yen)
12

(1 billion yen)140

ICT: Information and communications technology
BIM/CIM: The introduction of 3D modeling from the investigation, planning, and design stages, and their utilization while enriching information at each stage of subsequent construction andmaintenance. Also, the effort to improve operational efficiency and sophistication in a series of construction production and management systems by sharing information among
concerned parties throughout a project.
i-Construction: Initiatives to improve productivity by adopting the use of ICT on construction sites

21

Although plans for new road construction are on the decline,
there is demand for new bridges as part of improvements in
the road network to increase national resilience, new projects
on the Osaka Bay Road, and projects to expand temporary
two-lane sections of expressways to four-lanes. In maintenance work, there are large-scale renewals and renovationsof expressways as well as maintenance and repair of a hugestock of existing bridges, and the amount of business related
to bridges, counting both new bridges and maintenance, isincreasing. In response to expanding business volume, wewill further enhance our abundant human capital and optimally allocate personnel, and we will provide a stable supplyof high-quality products through integrated managementfrom material procurement to design, production, and on-site
construction. In the diversifying maintenance business,
we will propose construction methods that can efficiently
achieve the performance required with our organizational
responsiveness.

In response to frequent disasters, we will work together withresearch institutes of the national government, road companies, universities, and industry associations to improve theperformance of bridges.
In case of disaster, we have established a system that can
respond to emergencies, including investigations of the safetyof damaged bridges. In response to changes in the service
environment, such as the increase in vehicle size and traffic
volume in the future, we will draw on our abundant experience and knowledge gained from our past achievements topropose appropriate reinforcement and functional improvement methods, to improve the safety, load carrying capacity,and functionality of bridges. Based on our achievements over
the years, we will continue to contribute to society by building and protecting bridges that can be used safely and withpeace of mind over the next 100 years.

Growth Strategies for Value Creation

Risks and opportunities

Providing a stable supply of high-quality products
through the enhancement of human capital andorganizational responsivenessResponding to increasingly severe disasters andfuture changes in the environment to ensure safety
and peace of mind over 100 years

Large-scale repairs(4) Ministry of Land,
Infrastructure, Transport
and Tourism

Five-year accelerated measures
All related measuresfor disaster prevention and miti(123 measures)
gation and national resilience(5) Kinki Regional
Development Bureau,
Hanshin Expressway, etc.

Large-scale renewal

Western extension of the Osaka
Bay Road−

Approx. 100 billion yen

Materials disclosed on
Jan. 22, 2014

Approx. 15 trillion yen Fiscal years: 2021 – 2025

14.5 km Approx. 500.0 billion yen Fiscal years: 2016 onward

Yokogawa Bridge Holdings Integrated Report 2021

22

Business Overview

New bridge construction business

Maintenance Business
Repair work on Kanmon Bridge
Opened in 1973, Kanmon Bridge is a suspension bridge (witha maximum effective span length of 712 meters that was
the longest in the East at the time) connecting Shimonoseki,
Yamaguchi Prefecture, and Kitakyushu, Fukuoka Prefecture.
As more than 40 years had passed since it went into use,refreshment work has been carried out since fiscal 2011 fromthe viewpoint of preventive maintenance. The YBHD Group is
performing stiffening girder repair work and cable repair work
(both ordered by West Nippon Expressway). In the stiffening
girder work, we are re-painting the center span (Moji side),
replacing stringer supports, replacing bolts, etc. In the cable
work, we are re-painting the main cable and hanger ropes
for the entire bridge, replacing hand ropes, and installing air
feed equipment as a countermeasure against the rusting ofcables.

of international logistics and economic activities in South

Overseas business

Sudan, where the effects of civil war still remain (see column).
The Kalna Bridge will be built at the Madhumati RiverIn our overseas business, we are focusing on ODA construction in emerging countries in the region from Southeast Asia
to the African continent. Recently, in addition to the construction of bridges on National Highway N-70 in Pakistan, we
have a track record of renovation work that includes Chroy
Changwar Bridge in Cambodia (photo on left). Meanwhile,
major projects that we are currently working on include
the Nile River Bridge in South Sudan and the Kalna Bridgein Bangladesh. For the Nile River Bridge, a Langer bridge
will be built over the Nile River, which divides South Sudan
east-west. It is expected to contribute to the revitalization

crossing as part of Asian Highway 1, an international highway
crossing Bangladesh. It will be a Nielsen-Lohse bridge with
an effective span length of 150 meters (photo on right). In
addition, in Tanzania, we are proceeding with the construction of Gerezani Bridge, which will be an overpass. In thisway, we are carefully moving ahead with overseas projects
despite being affected by the global spread of COVID-19,
and we will continue to develop our overseas business tocontribute to the development of local infrastructure.

Installation of panel scaffolding for repair and painting of Chroy Changwar Bridge

Temporary assembly of Kalna Bridge at in Vietnam production plant

Growth Strategies for Value Creation

Kesennuma Bay Bridge Kawaguchi Area Upper Works
Kesennuma Bay Bridge Kawaguchi Area Upper Works,
ordered by the Tohoku Regional Development Bureau of the
Ministry of Land, Infrastructure, Transport and Tourism, is abridge that constitutes a part of the Sanriku Coast Expressway/ Kesennuma Bay Bridge, an earthquake reconstruction road.
It is a steel 7-span continuous box girder bridge with a bridge
length of 473.5 m, a width of 12.67 m, a steel weight of 2,955
t, and a maximum effective span length of 90.5 m. 2 spansthat include the span with the longest effective span length
were installed using the incremental launching method. Sincea large curvature occurs in girders with a long span, we dealt
with this using a curvature handling device, a technology patented by the YBHD Group, and completed the construction
safely. It was opened to traffic on March 6, 2021.

Bridge Business

Installation of work scaffolding on a main cable using a vehicle for work at height
Incremental launching construction (The part that is temporary support diagonally upwardat the end of the girder on the left side of the photo is the “curvature handling device.”)

Shinmachigawa Bridge
Shinmachigawa Bridge, ordered by the Shikoku Regional
Development Bureau of the Ministry of Land, Infrastructure,
Transport and Tourism, is a bridge located in the central portion of
the Tokushima-Nanbu Expressway (2.4 km extension between
Tokushima Okinosu and Tokushima Tsuda interchanges). It is asteel 3-span continuous steel deck plate box girder bridge witha bridge length of 500.0 m, a width of 28.6 m, a steel weight of
9,364 t (including 2,842 t constructed by the YBHD Group), andan effective span length of 250 m. For a continuous box girder
bridge, this effective span length is one of the longest in Japan.
Japanʼs largest floating crane (load: 4,100 t) was used to erect
the bridge, which was conducted with the large block erection
method. It was opened to traffic on March 21, 2021.

“cusa” on Joyo Elevated Bridge No. 2During construction to open the entire Shin-Meishin
Expressway, a “cusa” aluminum alloy permanent scaffolding
was installed at Joyo Elevated Bridge No. 2, which crosses
the Kintetsu Railwayʼs Kyoto Line. Since maintenance work
above the railway would be difficult when it is in service, thisproduct, which can cover the girders completely with panels
to enable safe work at all times, was adopted. The aluminumalloy panels are lightweight and the main installation work
was done by manpower. In addition to its function as permanent scaffolding, cusa is expected to be utilized in many
ways as a bridge maintenance technology, such as an anticorrosive function for the girders and providing strength toprevent concrete from falling off below the girders.

South Sudan Nile River Bridge Project
Yoshinori Hidai, Overseas Business Dept., Yokogawa Bridge

This project will to build a new bridge to replace anaging existing bridge over the Nile River flowing outside Juba, the capital of South Sudan. It is being
carried out as a grant aid project by the Japanese government through the Japan International Cooperation
Agency (JICA). The bridge has a length of 560 meters, and the main riverpart is a Langer bridge, a kind of arch bridge, built in four consecutive
spans. Although it began in 2015, construction was interrupted threetimes due to multiple civil wars and the spread of COVID-19. This bridge
is called the Freedom Bridge locally, and I hope that it will contribute to thedevelopment of South Sudan as much as possible.

Girders and cusa (gray section above the railway) under construction

Large block erection using a crane vessel

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Yokogawa Bridge Holdings Integrated Report 2021

Yokogawa Bridge Holdings Integrated Report 2021

24

Business Overview

Engineering BusinessEngineering Business
The YBHD Groupʼs civil engineering business consists of threebusinesses: engineered structure system, civil engineering, andconstruction machinery and steel. The Engineered structure
system business has established itself as the No. 1 in the industry
through production at a dedicated plant and by realizing short
construction periods. We are also applying the technology wehave cultivated over many years in the bridge business to workon the civil engineering and the construction machinery andsteel businesses.

Safety risks such as accidents● Building market trends● Shortage of registered engineer● Political and economic situation at overseas bases● Impact of COVID-19● Growing need for disaster prevention facilities and flood
control techniques due to the intensification of natural
disasters
Market expansion of sports business● Underground use in metropolitan areas●

Strengths
Workforce consisting of a large number of qualified personnel● Advanced technical capabilities accumulated over manyyears
● A corporate culture of taking on challenges● Active use of state-of-the-art technology●●

Ability to respond to customer needs

Collaboration with more than 1,200 affiliated builders
nationwide● The industryʼs only dedicated plant with an annual production capacity of 90,000 t● High productivity through the use of robots●

ing efforts in the fields of design, production, and on-site

In the engineered structure system business, which is a pillar of
the YBHD Groupʼs growth, we operate the industryʼs only dedicated engineered structure manufacturing plant at full capacity
to further increase our market share in the field of engineered
structures. In the civil engineering business and the construction machinery and steel business, we will create new value inbuildings and contribute to infrastructure development.

construction. Specifically, we will aim to reduce costs andimprove safety by streamlining materials, specifications, andstructures in the course of technological development.
Furthermore, we will improve profitability by increasing theaccuracy of estimates and quotes, improve the accuracy ofprocess control, and improve field profits through efficient
on-site staffing by developing various construction tools.

Engineered structure system business
Aiming for a further increase in market sharethrough wider penetration by the “yess”(Yokogawa Engineered Structure System) brand

Trends in the market and orders received for yess buildings(As of March 2021)

The functions required of buildings vary depending on their
type. Low cost and short construction periods are especially
important factors in the construction of buildings such as
factories and warehouses. With engineered structures, bystandardizing the parts that make up a building, we haveachieved low costs and short construction periods throughthe “systemization” of total building production from design
to on-site work. Yokogawa System Buildingsʼ “yess buildings” are engineered buildings that provide high quality
with short construction periods at a low cost thanks to theGroupʼs unique steel structure technology. We have established ourselves as No. 1 in the field of engineered structures.
Area of new starts for steel frame plants, warehouses,
and works nationwide, and the share of “yess buildings”（%）(1 million m²)

There are various functions required of buildings dependingon the type, and among them, in buildings such as plants
and warehouses, short construction periods and low costs
are especially required. The YBHD Group has realized
shorter construction periods and lower costs by using longer
and lighter parts that apply our steel bridge technology cultivated over many years, as well as by developing “yessbuildings” based on our unique systemization from design
to construction.
Moreover, for 114 years since the Groupʼs founding, wehave been working on many innovative structures with comprehensive engineering, drawing on technologies built up in
various fields such as architecture, bridges, and electricalcontrol. These technologies are diverse, ranging from thoseused in the civil engineering business, which builds off-shore
and port structures for disaster prevention and contributes
to the fulfilment of underground tunneling projects that
respond to the growing density of cities, to those used in theconstruction machinery and steel business, which contributes to infrastructure development by applying steel bridge

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Yokogawa Bridge Holdings Integrated Report 2021

30

6

25
4

20
15

2

10
5

0

0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020

Business situation

construction and other technologies, including special structures that create new value by making buildings themselves
movable.
These technologies have received high ratings from various quarters as technologies unique to the YBHD Group,
which has been manufacturing steel structures for many
years.

Area of new starts for steel frame structures nationwide

Net sales and orders received (left axis) and operating
profit (right axis) in the engineering business(1 billion yen)

(1 billion yen)

70

5.0

35

2.5

0

2018

2019

2020

Net sales
Engineered structure system

Civil engineering

2018

2019

Share of yess buildings

In collaboration with more than 1,200 affiliated builders (sales
and construction agents) nationwide from Hokkaido to Okinawa,
we will focus on developing potential customers and expanding
sales channels, while at the same time enhancing our technical support system to boost our technical proposal capabilities,
increase customer satisfaction, and increase orders received.

02020 (FY)

Orders received
Construction and machinery steel

Operating profit

ClientAffiliated builder (contact point)
Everything from estimates to construction

Yokogawa System Buildings (manufacturer)
Design and production

2018

2019

2020

performance

performance

performanceMarket size (1 million m )Steel frame plant warehouses

16.6

14.5

13.7

Market size (buildings)
Steel frame plant warehouses

18,30017,30015,800Orders area (1,000 m2)

961

772

798

Share of orders area

5.8％

5.3％

5.8％

40,89437,56937,113

2

Order amount (million yen)

Civil engineering business
Providing disaster-resistant off-shore and port
structures, and taking up the challenge of building
underground tunnels

Growth Strategies for Value Creation

Risks and opportunities●

We will also continue our standardization and streamlin-

Business Strategy

In the civil engineering business, we have established an unrivaled advanced business structure covering everything frommaterial development to design, production, and construction by making full use of the YBHD Groupʼs management
resources: technical proposal capabilities, product development capabilities, and production capabilities.
By leveraging the know-how that we have cultivated in thebridge business, we are taking on the challenge of developing
new earthquake- and tsunami-resistant off-shore and port
structures. In the construction of disaster prevention facilities
to counter increasingly severe disasters and renewal work foraging roads and other infrastructure, optimal structures are
required given various site conditions such as needs related
to space-saving and rapid construction.
By centrally managing every aspect from technical proposals to design, production, and construction, the Group
provides high-quality products such as seawalls that protect nuclear power plants from tsunamis and steel-concrete
composite culverts that enable rapid road construction.
Normal seawalls stop tsunamis by piling earth up high. In
contrast, the steel seawalls and precast composite structure
seawalls that the Group manufactures appear as concrete
seawalls, but their combination with steel materials createsstrong walls that can protect coastal safety with a very smallsite area compared to conventional seawalls.

Yokogawa Bridge Holdings Integrated Report 2021

26

Business Overview

Engineering Business

Construction and machinery steel businessContributing to a wide range of infrastructure
improvement projects by applying steel bridge
construction technology to other sectors

Steel-concrete composite precast seawall

Here, we introduce WAM All Athlete Station, an indoor
sports facility run by Asano Enterprise in Takamatsu, Kagawa
Prefecture, as an example of a engineered structure madeinto a sports facility.

Kyoto Office of Otomo Logistics Service Co., Ltd.

This is the Kyoto Office, located in Yawata, Kyoto
Prefecture, of Otomo Logistics Service Co., Ltd.
The building is a 149.6-m wide × 66.88-m deep logistics
warehouse with an area of more than 10,000 m2. On the
WAM All Athlete Station

The building, 37.8 meters long × 30.6 meters wide, is acustom type with pillars at the location of the roof ridge. It has
a 25-meter pool with eight lanes, a training gym, and a twostory office. It is a full-fledged sports facility equipped withstarting blocks for official competitions̶a first for a privately
run facility in Kagawa Prefecture̶as well as the latest equipment, such as a water purification system and a hyperbaric
chamber. Engineered structures are widely used not only forfacilities such as plants and warehouses, but also for storesand sports facilities.

foreground side, 25.5 meters of the 66.88-m depth are alean-to style format with a two-story office and truck pit. The
back 41.38 meters are a warehouse space with no indoor
pillars. The spacing between steel columns in the direction of
the crossbeams is all a wide 8.4 meters except for the officearea. Including the Kyoto Office, Otomo Logistics Service
Co., Ltd. has constructed 21 yess buildings nationwide.
These buildings are structures with large spaces, whereyess buildings excel. They provide high quality, short construction periods, and cost performance, earning high ratingsfrom customers.

Growth Strategies for Value Creation

Furthermore, we will contribute to society through infrastructure development and the improvement of national
resilience by aggressively taking on the challenges of the steel
segment business in response to the trend towards utilizationof underground space, such as for major urban ring roads,
which are becoming deeper with larger cross-sections.
In highly developed metropolitan areas, the maglev
Shinkansen, the Tokyo Outer Ring Road, and even reservoir facilities for flood control measures are being developed
underground, advancing the effective use of multilevel underground spaces.
The Group meets the diverse needs of customers witha variety of products, centered on segment products thatcover the inner surface of tunnels and including thick-walledtubular steel columns that support the huge load in underground spaces.
We began selling segment products in the 1960s and havebeen actively engaged in the development of new technologies, such as the six-sided steel shell sandwich composite
segment, which is a proprietary product, and the TUF segment, jointly developed with Hazama Ando Corporation.
Based on the relationships of trust we have cultivated withour customers over many years, we aim to further develop
our business by proposing new technologies, such as theestablishment of a manufacturing system linked to on-sitemeasurement technology.

By applying the advanced technology and revolutionary solutions that we have cultivated at bridge erection sites to thebuilding construction sector, we have won high praise for ourwork on steel frameworks for high-rise buildings, etc., andon the construction of large structures such as dome-type
sports stadiums.
Retractable roofs for swimming pools and stadiums, andspecial structure technologies that make buildings movable
were created through comprehensive engineering that leveraged our technologies in various fields such as architecture,
bridges, and electrical control, built up over the 114 years
since the Groupʼs founding. With few companies able totackle these kinds of structures, we have won high praisefrom various quarters for technologies unique to the YBHDGroup that can handle all kinds of buildings, such as drive
systems and opening/closing patterns tailored to the sizeand purpose of the structure.
Our special structures movable system has been adopted
in more than 150 facilities, ranging from sports facilities suchas swimming pools to cultural facilities and large domes.

Engineered structure system business

Noevir Stadium Kobe retractable roof

In our machinery steel business, we are actively conducting sales with the aim of securing an increase in orders
for products such as penstocks, water gates (floodgates),
ship-lifting equipment, and water treatment equipment.
We are working actively on technological development tomeet changes in customer needs for our original products̶
ship-lifting equipment and water treatment equipment̶tofurther develop our business.

Temporary assembly of a steel tunnel segment

Kanku Ice Arena
Kazuyuki Kurata, Osaka Construction Dept.,
Yokogawa System Buildings Corp.

The Kanku Ice Arena, built inIzumisano, Osaka Prefecture, is abuilding that makes the most of thefeatures of yess buildings, with a pillarless span of 56.7 m × a depth of
66.0 m.
During construction, the wind from Osaka Bay was
blowing constantly, and we worked carefully to keep the
major beam erection work during the steel frame construction from being shaken by the wind. From the middleof the construction work onward, we held daily meetings,
coordinated where work intersected with other companiesʼ work, and handled visitors from various fields.
In a follow-up after building completion, I was moved tosee a well-known athlete practicing in the rink, and I wasproud to think that all kinds of drama will play out in thisbuilding that I worked on.

Future underground tunnel projects
Hokkaido Shinkansen construction
Chuo Shinkansen construction
Tokyo Outer Ring Central JCT construction

27

Metropolitan Expressway tunnel construction
Osaka Subway tunnel construction

Yokogawa Bridge Holdings Integrated Report 2021

Flap gate (floodgate) in Kenbuchi, Hokkaido

Yokogawa Bridge Holdings Integrated Report 2021

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Business Overview

Engineering Business

Civil engineering business

Ship-lifting equipment

Ship-lifting equipment refers to a facility in which a ship isguided over a set table, and then the table and the ship areraised together. The YBHD Groupʼs ship-lifting equipment
has been installed at more than 80 fishing ports nationwide,
mainly in Hokkaido. It can launch and lift ships out of thewater in a short time, and also meets the needs for highsafety and labor savings.

Highway tunnel

The picture above shows the construction of an undergroundhighway using a steel-concrete composite box culvert. It is alarge cross-sectional structure, 18.4-m tall × 43.8-m wide, witheight lanes of road running through on two levels. The construction required a very high level of technical expertise, as thelocation conditions above-ground included a railway line.
Going forward, we will continue to contribute to the effective
use of underground spaces with a variety of products, such as
underground passageways where the walls of the steel segments are used as is in the design, and thick-walled tubular
steel columns that support station buildings built underground.

Kawaguchiko Stellar Theater

The photo above shows the Kawaguchiko Stellar Theater inFujikawaguchiko, Yamanashi Prefecture.
It opened in 1995 as an outdoor music hall with approximately 3,000 seats in a 72-meter diameter semicircle. In
2007, the YBHD Group installed a movable roof, transforming the building into an all-weather outdoor music hall.
When it was constructed, few performances were planed
due to the vulnerability of performersʼ musical instruments torain and dew and the risk of poor weather, so it continued to
draw only about 10,000 visitors per year. After the retractableroof was installed, the worry of wind and rain was eliminatedwhile maintaining the openness of an open-air venue. With
this, the number of concerts by famous performers fromJapan and overseas increased dramatically, and the annual
number of visitors now exceeds 70,000.

Growth Strategies for Value Creation

In the civil engineering business, we mainly manufacture civilengineering structures using steel materials. Typical civil engineering structures are things called “tunnel segments” thatlead to underground spaces. These segments, which play apart in the construction of underground spaces, are manufactured mainly as steel segments that can be built in a shortperiod using steel materials and provide excellent flexibility
and quality, as well as composite segments integrated withconcrete. In particular, in recent years, many segments havebeen used in large-scale spaces and irregularly shaped tunnels, such as for underground highways and subways in theTokyo metropolitan area.
The photo below shows the inner surface of a subway
tunnel built using our unique six-sided steel shell sandwich
composite segment. Taking advantage of its high strengthfeatures, it was used for the large cross-sectional area of theconfluences near stations.
We conduct actual-size ring loading tests to confirm highload performance.
We
expectgreat
demand for tunnel segments for undergroundhighways in the Tokyo
metropolitan area andrailway-related projects
such as the maglev
Completed subway tunnel
Shinkansen.

Construction and Machinery
Steel Business

Penstocks

Penstocks are facilities that supply water to hydroelectric
plants, one of the sources of renewable energy. The YBHDGroup will contribute to the realization of a sustainable society through the recovery of clean energy.

An underground passageway where the exterior wall of steel segments is visible

Development of a new water treatment system

Actual-size ring loading test

Tetsuya Kuroda, Machinery Steel Dept., Narasaki Seisakusyo
Co., Ltd.

Expertise not only in bridges but also underground spaces
Shota Okamoto, Underground Space Technology Dept., Yokogawa NS Engineering Corp.

Currently, I am involved in the development and design of segments that are indispensable for building underground spaces such as roads, subways, water and sewerage systems, and multipurpose utility conduits. Thereis no fixed solution to challenges in this work. For tunnels, the design conditions are different at every site
depending on construction methods and the surrounding environment, such as ground and underground water.
We look for solutions through trial and error to make the structure high quality and easy to construct, according
to each condition. I find this job satisfying and interesting because my ideas are adopted and used to create actual structures. I
hope to continue it with pride and master it. I aim to become an engineer with such diverse perspectives who knows voices andthoughts of staff in the factory and site.

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Yokogawa Bridge Holdings Integrated Report 2021

Turbid water is always generated at civil engineering andbuilding construction sites. Construction turbid watermust be treated appropriately according to the standards
specified by law. We have been working on this issue forhalf a century and sell turbid water treatment equipment. I
am currently involved in the development of a new water treatment system that
improves turbid water processing capacity. The new water treatment system
combines sedimentation separation technology that sinks grime and floatation
separation technology that floats grime. We are currently developing productsthat meet customer needs. Going forward, we will continue to contribute to
the realization of a sustainable society through water treatment technology.

Yokogawa Bridge Holdings Integrated Report 2021

30

Business Overview

Precision Equipment Business

Precision Equipment Business
Our precision equipment business consists of two businesses: the precision equipment manufacturing business, which uses various steel structure technologies that we cultivated overmany years in the bridge business; and the information processing business, which provides
strong support to design, manufacturing, and management operations not only within the
YBHD Group but also for the wider steel bridge industry.
The precision equipment manufacturing business supports the production of precision
machinery manufacturing equipment that is used in the production of semiconductors,
LCD and OLED panels, etc., and ensures a stable supply of steel framework products thatare the skeletons of high-precision equipment.
In the information processing business, we develop and sell software in the “3M” areas ofmodeling (information analysis and design), manufacturing, and management nationwide.

The precision equipment manufacturing business develops,
designs, manufactures, and sells relatively large high-precision steel frameworks for private customers in the high-tech
sector. Frameworks manufactured by the YBHD Group play
an important role as the skeleton of high-precision equipment,such as devices for manufacturing LCD and OLED panels for
TVs and devices for manufacturing semiconductor components such as IC chips. Recently, there has been a growing

Precision equipment manufacturing businessWe have put in place an integrated production management
system from frame product design to manufacturing, quality assurance, and shipment, with the aim of providing ourcustomers with a stable supply of high-quality, high-precision
products with excellent cost performance. In addition, with
the Groupʼs proprietary high-damping structure frameworks,
we aim to meet various needs by providing a technologythat improves the accuracy and speed of high-precisionequipment, which cannot tolerate minute vibrations that areinvisible to the human eye. Going forward, we will continue toaim to develop products in a wider range of fields.

demand to switch smartphone screens from LCD panels
to OLED panels, so orders received for products for OLED
panel manufacturing equipment are on the rise. Our Izumi
Plant in Izumi, Osaka Prefecture, which is a manufacturingbase, has facilities such as a large five-face machining centerand a 3D measuring machine. It manufactures high-precisionframeworks that need micron (1/1,000 mm) level accuracy. In
2019, our Kishiwada Plant in Kishiwada, Osaka Prefecture,
went into operation as a second plant. It has a mass production system for a wide variety of products.

Frequency

Damping ratio

We develop and sell software in the “3M” areas of modeling (information analysis and design), manufacturing, andmanagement. Our products̶which include the APOLLO
system, a total solution for bridge design incorporating linear,analysis, design, drawing, and materials calculation functions, CasterJupiter, a 3D full-scale system that supports the
production of steel bridges, and CA* (Castar), a CAM system
for steel structures̶have earned a large market share and astrong reputation in the steel bridge sector. Further, we offer
an impressive line-up of 3D measurement systems, and areable to meet customersʼ needs by providing products that
support steel bridge design, construction, and management
operations. Going forward, we will contribute to the industry
by providing value-added solutions that meet the needs ofthe times.

Growth Strategies for Value Creation

Business situation

Information processing business
Providing value-added solutions that meet theneeds of todayʼs era of cutting-edge technology

Business strategy

Vs. normal

Normal structure

375 times

Super high damping

Time waveform

Izumi Plant (Izumi, Osaka Prefecture)

Acceleration (m/s2)

Kishiwada Plant (Kishiwada, Osaka Prefecture)

Normal structure
Super high damping

Damping ratio

timesTime (s)High-damping structure framework and vibration damping effectLarge five-face machining center

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Yokogawa Bridge Holdings Integrated Report 2021

3D measuring machine“Anchor version VFORM,” an example of 3D measurement of anchor bolt position

A 3D model using CastarJupiter data

Yokogawa Bridge Holdings Integrated Report 2021

32

Special Feature

Bridge blocks after finished painting in the plant are transported tothe construction site.

Yokogawaʼs Manufacturing

Building Strong Bridges Bridge Building Process
The YBHD Group accurately meets diverse requests and contributes to the development of social infrastructure by exercising its comprehensive technical and management capabilities in all processes of bridge design,
production, and construction.
Construction

Manufacturing
Order

DesignArrangingmaterials

Cutting /machining

Welding /assembly

Temporaryassembly

Painting

Transportation

Erection

Deck

Painting

Completion

After doing comparative designs
to select the form of the bridge
according to the road plan andconditions, a detailed design ismade, including the creation ofdetailed drawings. In addition,a design review is conducted toverify the validity of the design.

Order

Design

Mfg.

Mfg.

Mfg.

Mfg.

Mfg.

Arrangingmaterials

Cutting /machining

Welding /assembly

Temporaryassembly

Painting

Special Feature

Assembled blocks are fullyor partially assembled into
the bridgeʼs finished shape
to check that there are noerrors in shape and dimensions, making sure that
there will be no problems in
on-site construction. There
are two kinds of temporary
assembly: actual temporary assembly in which
the blocks are actuallyassembled, and simulated
temporary assembly using
a computer-based 3D measurement system.

Transportation

After temporary assembly, theblocks are dismantled again
and painted. Some bridges
use weather-resistant steel
materials that do not require
painting.

Materials are procured based on the design.
The main material is steel plate.

The procured steel plate is cut into
the designed shape. Steel bridges are
manufactured in blocks that can betransported from the plant to the construction site. It is common to use bolts
as the method of joining the blocks thatmake up a bridge. For this reason, bolt
holes are drilled at the joints of the cut
steel plates.

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Yokogawa Bridge Holdings Integrated Report 2021

Individual steel plates thathave been machined, suchas the drilling of holes, areassembled by welding tocreate the shape of theblocks that will make up thefinished bridge.

Yokogawa Bridge Holdings Integrated Report 2021

34

Special Feature

Yokogawaʼs Manufacturing

Photo provided by East Nippon Expressway Co. Ltd.

Building Strong Bridges Bridge Building Process
Manufacturing
Order

DesignArrangingmaterials

Cutting /machining

Welding /assembly

Construction
Temporaryassembly

Painting

Construction site experts gather to build the bridge with great care forsafety. Depending on the type of bridge, topography, environment, andother conditions on site, the way the bridge is supported during construction and the block transportation equipment will change. Moreover,there are about 20 methods to erect bridges. In order to stick to theschedule for completion while ensuring safety as the top priority, it isnecessary to respond quickly to daily changes in circumstances. Everytime someone has a question, no matter how small, work stops and it ischecked and discussed as many times as needed until everyone agrees.

Transportation

Erection

Deck

Painting

Completion

Individual blocks are assembled on
the ground or on temporary facilities
into a size suitable for erection. The
blocks are joined by welding andbolting.

Const.

Erection

Temporaryfacilities

Groundassembly

Girderconstruction

Const.

Const.

Deck

Painting

Special Feature

Once completed, the bridge will be aroute over which people, goods, hearts,and cultures pass. It will continue tosupport safe and secure lives by connecting people and communities.

Completion

The joints between the blocks are painted
on-site the same as in the plant.

Temporary facilities set up
to support the bridge during
construction. The temporary
facilities are dismantled after
all erection work is completed.

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Yokogawa Bridge Holdings Integrated Report 2021

One by one, the assembled blocks are lifted into placeusing cranes, etc., and assembled into a bridge.

A deck that vehicles can travel on is built on topof the erected steel girders. The material is mainly
reinforced concrete, but there are also steel decks
manufactured from steel plate in plants.

Yokogawa Bridge Holdings Integrated Report 2021

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Special Feature

Yokogawaʼs Manufacturing

New Shimodaira Plant, Taisei Co., Ltd.

Ichinomiya Logistics Center, Mylogi Co., Ltd.

Niigata Plant, Chiyoda Shoes Co., Ltd.

Nasu no Megumi Mekke!, Nasu Rindo-ko Lake View

Building Large Roofs Warehouse Building Process
Yokogawa Engineered Structure System (“yess buildings”) is an architectural brand that specializes in large,
pillarless spaces that are manufactured and constructed by applying Yokogawa’s own structural specifications
to the engineering of engineered structures. This enables the construction of high-quality buildings, mainly
plants and warehouses, with short delivery times at low cost by standardizing parts such as beams, pillars,roofs, exterior walls, fittings, etc.
In addition to direct sales activities, we are developing this business by leveraging our network of more than 1,200 affiliated builders nationwide.
What are yess building sales and construction partners (affiliated builders)?
More than 1,200 affiliated builders nationwide serve as direct contacts for customers, and the YBHD Groupʼs Yokogawa System Buildings supports the builders. To
facilitate clientsʼ business expansion and ensure their capital investment goes smoothly, we provide support together with builders, from consultation to construction
and maintenance.

Order-taking

Yokogawa System Buildings (manufacturer)
Design and production

DesignThe design and production
system for yess buildings is basedon the steel bridge structure technology we have cultivated in thebridge business. This is achieved
through the SCAPY3D & YMD
System, a structural design andproduction design system exclusively for yess buildings that has
been independently developed by
Yokogawa System Buildings.

Construction

Completion

Mobara Plant

We have established a system to produce
yess buildings in our own dedicated plant,
the only one in the system building industry.
This allows us to provide high-quality materials in a short time and at a low cost.

Four systems
to create yess buildings

37

Production

Frame system for yessbuildings

Roof system for yessbuildings

Wall system for yessbuildings

Accessories for yessbuildings

Our proprietary design
method enables weight savings and large spans in theframe used for pillars andbeams.

Metal roofs set with insulation
ensure high insulation at low
cost.

We have a large lineup fromwhich selections can be madeaccording to the applicationand design.

We provide a full range ofaccessories such as shutters,
fittings, cranes, etc.

Yokogawa Bridge Holdings Integrated Report 2021

Special Feature

Affiliated builder (contact point)
Everything from estimates to construction

ClientReasonable and economical
construction methods enable
construction in a short period.
Moreover, since yess buildings
can have pillarless spaces of up
to 60 meters, they can be usedin various fields such as sports
facilities and stores in addition
to warehouses.

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38

R&D
NY Rapid Bridge is a new type of composite deck bridge

Research and development in the YBHD Group focuses on the acquisition and innovation of basic technologies for steel structures related to the bridge business and applies our elemental technologies to thecivil engineering business and precision equipment business to advance product development and new
development. We also conduct research and development leading to business and product commercialization involving unique technologies owned by each Group company in fields such as the environment
and information processing.

suitable for small- and medium-span bridges with demanding girder height and crossing conditions. Since “steel girder+ deck concrete” are erected in the form of product blocks
that are manufactured as units in the plant, it is possible toreplace a bridge with rapid construction.

R&D system

Technology development in the bridge maintenance business
Large-scale renewal and repair projects, mainly on expressways, are at their height, and there is a growing demand fortechnologies that are effective in improving safety at construction sites and shortening construction periods. As newtechnologies to respond to this demand, we developed a
new method for cutting and removing existing decks, a new
pre-cast wall balustrade Rapid Guard Fence, a deck replacement method STEEL-C.A.P. (co-developed with Nippon
Steel Corporation), and a small- to medium-span bridge
replacement method NY Rapid Bridge (co-developed with
Nippon Steel Engineering Co., Ltd.).

Slab panelWallbalustrade

Intermediatecross beam

Steelgirders
SupportSubstructure

Overview of NY Rapid Bridge

Rust and corrosion prevention for existing steel members
are also important themes. We are expanding the application of a paint removal method using IH (electromagnetic
induction heating) and also conducting R&D into renewal
technologies for various anti-corrosion methods.

Mobile scaffold for scaffolding disassembly

Improving the maintainability of new bridges
In order to improve the maintainability of new bridges, wehave devised a new bridge structure that makes it easy toinspect bridges with a small number of main girders. The
connection structure between the main girders is simplified
and a flat floor is provided to improve convenience for the
movement of people and the carrying of equipment. Other
technology development we are pursuing includes a method
for improving fatigue strength of welds by heat treatmentusing electromagnetic induction, and the streamlining of amethod to improve the anti-corrosion performance of highstrength bolted joints that can be performed in a continuous
process from rust removal to the laying of an anticorrosive
undercoat.

Foundation of Value Creation

Yokogawa Bridge Holdingsʼ Technical Research Laboratory
carries out investigative research on basic technologies anddevelops technologies before they are commercialized intoa business. Each operating company conducts development for the improvement of its own products and businessfeasibility studies. Yokogawa Bridge Holdingsʼ Engineering
Management Office oversees all technology development in
the Group and manages the direction, budget, and implementation status of technology development. By actively
using the new technologies we have developed, we will
provide workable and durable social infrastructure, thereby
helping to improve productivity and reduce maintenancecosts in the future.
At the Technical Research Laboratory, a full-time researchstaff supports basic research, technical support for actual
construction, and research and development across theentire Group.

R&D in the bridge business(two main girder
members)

Product block(drop-in slab)

Product block

Product block

Pre-cast wall balustrade Rapid Guard Fence

The STEEL-C.A.P. method replaces existing RC decks
with high-performance steel decks, and by engineering aconnection between the steel girders and steel deck, thework of removing concrete on the girders, which is usuallynecessary, can be omitted, making rapid construction possible. We are developing this as a method applicable evenon heavy traffic routes where road regulation conditions areespecially tough.
Replacement steel deck

Left-behind concrete
Load testing of rigid connection of superstructure and substructure for
Tamagawa Sky Bridge

Shear resistance members
Existing steel girder

Transverse rib connecting member

STEEL-C.A.P. method for replacement steel deck39

Yokogawa Bridge Holdings Integrated Report 2021

Expanding the application of a paint removal method (application to a main cable of the Kanmon Bridge)

Development of a mobile scaffold for scaffolding
disassembly
We have developed a mobile scaffold for scaffolding disassembly to make scaffolding disassembly safer, and confirmed
its effectiveness on actual bridges. The structure allows
middle bridge piers to pass through so that it can be appliedeven with continuous girders, and the floor surface is madeof “cusa” aluminum alloy permanent scaffolding panel material to reduce weight and improve safety. It can be expected
to be applied to scaffolding disassembly work in ultra-highplaces where vehicles for work at height cannot be used. In
addition, we have developed a device that sounds an alarm
when the safety belt hook is not in use, which is effective
in preventing human error fall accidents, and confirmed its
effectiveness in performance tests. We will always use thelatest elemental technologies to improve work safety in our
measures to prevent occupational accidents.

Bridge structure for easy inspection

Yokogawa Bridge Holdings Integrated Report 2021

40

R&D

R&D in the engineeringbusiness
Technology development for system structures
For system structures (product name: yess buildings),
we have developed and started selling Rapid A (Ace), a
standardized product for small buildings with areas fromapproximately 200 m2 to 600 m2. In addition to its use in

Research on increase the fatigue strength of welds

Research on improving the anti-corrosion performance of high-strength bolts

Adding features to permanent inspection
scaffolding

New water treatment system

Technology development for the use of underground space
Currently, construction work on railways and road tunnels
is advancing, mainly in urban areas. Many of these underground spaces have a large cross-section and are very deep,and since huge force acts on the tunnels, their lining musthave high strength and bearing force. As a product thatmeets these needs, we have developed a composite segment that fully integrates steel and concrete: Tough United
Full (TUF) Sandwich Segment (co-developed with Hazama
Ando Corporation). Going forward, we will continue to further
evolve this technology, aiming to expand its use in underground spaces in the future.
Outer flange

Permanent scaffolding is becoming widespread on expressway and other bridges for the purpose of inspection andmaintenance and to increase the longevity of bridges, andthe adoption of “cusa” aluminum alloy permanent scaffolding
has also increased. Now, as an additional feature for “cusa,”
we have developed a reverse side sound absorption feature that attaches under the scaffolding floor. We will meetthe need for additional features of inspection scaffolding on
bridges where sound absorbing plates are installed.

Uses thick-walled parts

Shape retainer

Stud dowels
Skin plate
Uses thick-walled parts

APOLLO, a total system forsteel bridge design

System development for productivity
improvement
There is growing demand to respond to efforts to improve
productivity through i-Construction, promoted by the Ministryof Land, Infrastructure, Transport and Tourism. The YBHDGroup is working to develop systems to further improve productivity and quality using technologies such as VR/AR/MR,
utilizing 3D model data output from a steel bridge design
system and steel bridge production information system, and3D point cloud data measured by laser scanners.

Foundation of Value Creation

snowy areas and as logistics warehouses, we are also working to expand application to food plants, offices, stores, etc.
In order to expand applications, we are continuing to workon the improvement and development of roof structures andstructural members, the improvement of exterior members,
and the development of exterior-related products. On topof that, we are also standardizing designs and production
information in line with the expansion of these products andspecifications, and we are also working on improvements
such as improving members and reviewing construction procedures so that we can enhance workability and safety on
construction sites.

Inner flange
Uses thick-walled parts
Skin plate
Uses thick-walled parts

Ring coupling box
Segment coupling box

TUF Segment

R&D in the Precision
Equipment BusinessStandardized yess building Rapid A (Ace)

Development of a new water treatment system
We have developed a new water treatment system that continuously performs precipitation and flotation processing. In
prototype performance testing, we confirmed that the processing capacity is two to three times higher than that ofconventional equipment, and that high-quality treated waterwith less turbidity can be obtained.

Functional improvements to comply with regulatory revisions and meet user requests

Simulation of crane erection of a steel bridge

APOLLO, a total system for steel bridge design complying
with revisions to the Specifications for Highway Bridges, anational standard related to road bridges, is in full-scale utilization. For this reason, we are continuing to make functional
improvements to comply with revisions to the relevant provisions of the Specifications for Highway Bridges and meetuser requests.

“cusa” aluminum alloy permanent scaffolding panel

41

Yokogawa Bridge Holdings Integrated Report 2021

Yokogawa Bridge Holdings Integrated Report 2021

42

Materiality (Key Issues)
Assigning of priority order to materiality candidate items
Environment

1. Selection of materiality candidate items for examination
2. Prioritizing and weighting of materiality candidate items

Impact on stakeholders

1 Responding to material risk associated with climate change and natural disasters
2 Responding to demand for development of disaster-resistant products
3 Responding to demand for retrofitting services and maintenance associated with National Resilience Promotion

Materiality examination scope

High

⓾⓫⓬
⓭⓮⓯

Social4 Ensuring the stablesupply of products
5 Quality assurance
6 Support for disasterrecovery
7 Safeguarding occupational health and safety

Materiality Identification Process

Blue: Opportunities Black: Risks

8 Responding to global health issues
9 Promoting the recruitment of diverse, outstanding personnel⓾ Strengthening of talent management⓫ Labor productivity enhancement⓬ Respecting the human rights of employees andof partner company and supplier personnel⓭ Diversity promotion⓮ Prevention of overwork andpromotion of work-life balance⓯ Equivalent competition forequivalent work

High

Governance

3. Determination of materiality based on deliberation by an intra-group, cross-departmental
body (the Sustainability Committee) and review by members of senior management

123
456
789
⓰⓱⓲

Impact on YBHDThe YBHD Group undertakes business activities that involve the building of social infrastructure and the realization of technological innovation, based on our corporate philosophy of “Contribution to society and the public, and sound management.”
The past few years have witnessed dramatic changes in society, while environmental problems have grown steadily more serious.
In response, the YBHD Group utilizes the process outlined below to identify the materiality (key issues) that we need to prioritize addressing as a Group, based on an ESG (Environmental, Social, and corporate Governance) perspective, and in linewith the United Nationsʼ Sustainable Development Goals (SDGs) and the Groupʼs business strategy. Going forward, we will
actively work to tackle various social problems as we strive to help realize a sustainable society.

⓰ Fair transactions⓱ Prevention of corruption⓲ Information security management

ESG

SectorMateriality

MeasuresEstablishing systems to facilitate business continuity

Climate change andnatural disasters

1 Responding to material risk associated withclimate change and natural disasters

Specific Content

Related SDGs

● BCP formulation and continued effective utilization and training● CO2 emissions reduction

Reducing the environmental footprint of business activities● Promoting the adoption of renewable energy● Reducing wastage of materials and improving the recycling rate

● Development of products with minimal environmental footprint, and provision of related technologies● Reuse of materials, and reducing electricity consumption at all facilities

Environment
Responding to National
Resilience Promotion
needs

Provision of high-quality
products
Disaster recovery
supportOccupational health andsafetySocialRecruitment, cultivation,and retention of outstanding human talent

Human rights

Working conditions

Governance

Developing products and construction methods that will contribute toward reducing the damage suffered in a natural disaster3 Responding to demand for retrofitting services and maintenance associated with National Resilience Promotion

Developing technologies and products relating to the improvement, maintenance and upgrading of the highway network

4 Ensuring the stable supply of products

Strengthening production and construction systems

5 Quality assurance

Preventing reoccurrence of quality non-conformance incidents● Development of earthquake-resistant products● Development of products and construction methods that facilitate early recovery in the event of an unanticipateddisaster● Development of technologies for enhancing and upgrading the functionality of existing infrastructure● Development of maintenance-friendly aluminum and stainless steel products● Strengthening BCP-related investment, facilities, and personnel● Quality management system utilization and continuous improvement● Reflecting information obtained at every stage from planning and design through to manufacturing and construc-tion, and information obtained through inspections and diagnostics● Building the systems needed to allow high-priority response in the event of an incident, and provision of related

6 Support for disaster recovery

Strengthening systems for providing rapid support

7 Safeguarding occupational health and safety

Thorough prevention of serious accidents

8 Responding to global health issues

Infectious disease response measures and putting in place the environment needed for employees to maintain and improve their health● Putting in place the environment needed for teleworking and flexible work hours, and implementing these measures

9 Promoting the recruitment of diverse, outstanding personnel

Promotion of recruitment activities● Effective utilization of site visits, internships, and the holding of seminars in schools and colleges⓾ Strengthening of talent management

Support for self-directed career development⓫ Labor productivity enhancement

Effective utilization of technology (with ICT as the core element)
and business process improvement● Development of new, labor-saving construction methods, promotion of R&D, and promotion of digital transfor-⓬ Respecting the human rights of employees and of partner company and supplierpersonnel

Thorough implementation of mutual respect● Implementation of the YBHD Code of Corporate Behavior, and continuing education⓭ Diversity promotion

Effective utilization of diverse human talent⓮ Prevention of overwork and promotion ofwork-life balance

Steady efforts to reduce working hours, and effective healthmanagement● Active promotion of incentive systems and of the various types of leave system⓯ Equivalent compensation for equivalent work

Commitment to fair remuneration● Establishment of internal systems in relation to various laws

⓰ Fair transactions

Thorough implementation of compliance and transaction record
management● Formulation of manuals and rules, compliance with their stipulations, and related education⓱ Prevention of corruption

Thorough implementation of effective corporate governance andrisk management● Appropriate operation of the Compliance Committee and Sustainability Committee⓲ Information security management

Preventing the leaking of corporate business secrets● Improvement of the rules for preventing data leaks, and implementation of related training

equipment● Reducing the incidence of fatal accidents to zero through measures to eliminate danger from tasks that involve

working at height● Promoting health management that makes effective use of collabohealth (collaboration between Health Insurance Society providers, companies, and employees)● Job rotation using a self-directed application system, and appropriate personnel allocation● Support to help employees secure professional qualifications, and implementing of various types of training

mation (DX)● Proactive recruitment and effective utilization of human talent regardless of nationality, gender, or age, including

persons with disabilities and senior citizens● Auditing of compliance status and appropriate utilization of the internal whistleblowing system

Fair business practices

Information security

43

2 Responding to demand for development ofdisaster-resistant products

Foundation of Value Creation

Materiality

Yokogawa Bridge Holdings Integrated Report 2021

● Further improvement of the system for appropriate risk management

Yokogawa Bridge Holdings Integrated Report 2021

44

SocialSocial Initiatives

Faced with the increasingly serious issues of global warming,
deforestation, various kinds of pollution, etc., in order for future
generations to be able to enjoy a healthy planet, the YBHDGroup is adopting an approach that gives due consideration
to the global environment, by implementing corporate activities aimed at reducing the Groupʼs environmental footprint. We
are also striving to build resilient infrastructure, to safeguard
both peopleʼs lives and business activity from the impact ofnatural disasters such as earthquakes, mega-typhoons, torrential rains, etc. Through these initiatives, we are aiming tohelp realize the “creation of a resilient social environment andharmonious coexistence with the natural environment,” and tocontribute towards the achievement of a sustainable society.

Seeking to create a future in which both people and the planet
can thrive, we contribute towards the sustainable developmentof society through a variety of business activities, working froma platform of mutual understanding with our stakeholders.

Climate change and natural
disasters

Responding to material risks relating to earthquakes, tsunamis, storms and floods, and othernatural disasters and aspects of climate change
Establishing systems to facilitate business continuity
Formulation and effective implementation of business
continuity planning (BCP) that specifies the need for close
coordination between the Groupʼs production sites● Continued implementation of training based on emergency scenarios● Adoption of a disaster preparedness expenditure support
system and post-disaster recovery support system for
employees● Implementation of emergency response in accordancewith industry associationsʼ disaster management cooperation agreements, etc.
●

Reducing the environmental footprint of businessactivities● Reducing CO2 emissions (making a proactive contribution
towards the transition to the post-carbon society)● Promoting the adoption of renewable energy, such as
photovoltaic electricity generation systems, etc. (to realize
further enhancement in the renewable energy self-sufficiency rate)● Aiming to eliminate waste of materials and improve therecycling rate

Responding to National
Resilience Promotion needs
Responding to the growing demand for durable products,
products with superior disaster-resistance, and productsthat are easy to maintain, we are striving to develop products
and services that meet these needs.

Provision of high-quality products
We strive to ensure the stable supply of high-quality products

Developing Disaster-prevention Pre-cast Sea-walls to
reduce the damage caused by tsunamis and high tides.
● Provision of earthquake-resistantproducts such as“Powerchain”, which
can prevent bridge
superstructure components from falling
off in the event of anearthquake, and canmitigate
powerful
impact forces.
●

Earthquake-resistant “Powerchain” productResponding to demand for retrofitting services
and maintenance associated with National
Resilience Promotion
Enhancing the functionality of existing
infrastructure anddeveloping technology to upgrade it● Developmentofmaintenance-friendly
aluminum and stainless steel products

Strengthening investment for business continuity planning(BCP) facilities and personnel● Quality and environmental strategy (Yokogawa Bridge Corp.)●

1. We will meet customersʼ needs and comply with relevant laws and regulations in regard to products.
2. We will identify and comply with applicable laws, regulations, and agreements in regard to the environment.
3. We will help to safeguard the environment in our business activities by formulating measures with respect tothe prevention of global warming, prevention of pollutionthat might affect neighboring residents or the naturalenvironment, 3R (Reduce, Reuse, Recycle) activities,
appropriate disposal of waste, etc.
4. We will continuously improve our quality and environmental management systems using the PDCA cycle,
in order to enhance our operations, the quality of our
products, and customer satisfaction, and to reduce ourenvironmental footprint.

Organization of a dedicated unit for quality assurance
Quality management system utilization and continuous
improvement● Reflecting information obtained at every stage from planningand design through to manufacturing and construction, andinformation obtained through inspections and diagnostics● Development of bridge deck upgrading methods, etc., forlarge-scale highway structure renewal and repair projects,
taking into account both societyʼs needs and environmental considerations.
● Development of TUF Segments for use in the shield method,which reduces the impact of excavation on the surface, andmakes it possible to reduce the area of ground affected by
the excavation; the superior durability of TUF Segments
makes them suitable for use in very deep excavations.
●

Business activities consume energy – including electric power – and resources, and generate both greenhouse gas emissions and waste. We have beenworking to clarify this environmental footprint in terms of inputs and outputs, as a basis for implementing activities to reduce our environmental footprint.
INPUTS
Energy● Electric power● Gasoline● Diesel● Kerosene
● Gas
Water
Main construction
materials (steel)45

24.23 million kWh
87 kL
50 kL
280 kL
744,000 m3
90,000 m3
115,000 t

Yokogawa Bridge Holdings Integrated Report 2021●

Bridge business●

Civil engineering business●

Precision equipment
business●

Real estate business

OUTPUTS
CO2 emissions
13,318 t
Construction waste
121,381 t
Steel-related emissions
7,424 tSteel recycling rate
100％

Disaster recovery support
We believe that the YBHD Group has a mission to build andmaintain disaster-resistant structures and infrastructure, andto upgrade existing structures and infrastructure to makethem even safer and provide greater peace of mind.

Support for disaster recovery●

Disaster Recovery
Measures Section
External Response
SectionFinancial Management

Section

Logistical Support
SectionOccupational health and safety

Basic Policies●

Materials flow (as of FY2020)

YBHD
Disaster Response
Headquarters

Yokogawa Bridge Corp. will contribute towards the realization of a sustainable society through the provision ofhigh-quality infrastructure-related products and by reducing
the environmental footprint of our business activities, in linewith our corporate philosophy of “Contribution to society andthe public, and sound management.”●“cusa” aluminum alloy permanent scaffolding
panelsOrganization of the Disaster Response Headquarters

Ensuring stable supply and quality of products

Basic Principles

Responding to demand for development of disaster-resistant products

Bearing capacity evaluation and earthquake resistanceevaluation of structures, and consideration of methods forextending structure lifespan● Timely provision of equipment such as temporary bridges
and machinery● Provision of rapid support based on disaster management
cooperation agreements●

We implement a wide range of measures with the aim of creating a working environment in which all Group employees
can work conveniently and safely.

Foundation of Value Creation

We are striving to ensure the safety of our employees andmaintain business continuity by responding effectively tothe risks posed by the frequent natural disasters that haveaccompanied climate change, an issue that has become
increasingly serious.

Developing products with minimal environmental footprint
and providing related technologies● Promoting reuse of equipment, and promoting energy-saving and resource conservation activities at all facilities● Promoting greenification of factory grounds and company
building rooftops●

Disaster Response Headquarters Deputy Director

Environmental initiatives

Disaster Response Headquarters Director

Environment

Safeguarding occupational health and safety●

Company-wide Health and Safety Policy (Yokogawa
Bridge Corp.)
FY2021 Company-wide Health and Safety Policy“Safety and quality” are the foundations on which ourcompany was built.
The health and safety policy outlined below has beenannounced with the aim of ensuring safety and creating a
comfortable working environment, based on the principleof respect for human rights and the principle of compliance with relevant laws and regulations.
1. Eliminating serious accidents and incidents
2. Compliance with occupational health and safety
legislation and internal rules
3. Creating a healthy, comfortable working environment

Measures to prevent serious accidents and incidents

As basic strategies for preventing serious accidents andincidents, we will continue to hold meetings of the Safety
System Improvement Committee, which is chaired by thecompany president, and we will thoroughly implement thefollowing measures.
1. Make improvements in relation to multi-level subcontracting
2. Make improvements in relation to the fleshing out of
operating procedures and ensuring that personnel
are thoroughly familiar with them
3. Focus on having reliable access to first-class partner companies (and operatives)
4. Promote the cultivation of partner companiesʼ foremen and of young operatives
5. Promote the development of technology in relation toscaffolding system, installation methods, etc., so as
to enhance the safety of construction work

Emergency inspections in the event of a natural disastersuch as a major earthquake
Yokogawa Bridge Holdings Integrated Report 2021

46

SocialSocial initiatives●

Health and Safety System (Yokogawa Bridge Corp.)

System Framework Diagram (Construction Health and Safety Management System)
President
Health and Safety
Management Committee

System Manager

System Committee(Construction Health and
Safety Coordination Meeting)

Various levels of system managers

Tokyo Construction Headquarters Director

Construction Department
Manager
Safety Section
ManagerWork Site
Manager

Auditing Section
Manager

Planning Headquarters Manager
Design Headquarters Manager(Construction Division Manager)
Planning Department Manager
Design Department II Manager

Construction Section Manager andMaintenance Section Manager

Work Site
ManagerWork Site
Manager

Sales and Technology
Department Manager

Planning Section
ManagerOccupational accident prevention● Revision of operation standards to facilitate major accident prevention● Periodic checking of the effectiveness of measures
adopted to prevent the reoccurrence of accidents● Implementation of safety patrols by corporate officers● Continued implementation of the safety chant activity andof safety education● Arrangement of safety monitors and safety belt monitors,
and adoption of the “safety bloc system”

Responding to global health issues
Promotion of measures to support heath improvement for
employees and employeesʼ families (who support them), in
accordance with the Group Health Declaration● Infection prevention measures, including daily temperaturechecks, and the use of mouthwash, wearing of masks anddisinfecting of hands, etc. at factories and work sites● Putting in place the environment needed for teleworking
and flexible work hours● Promoting health management that makes effective useof “collabohealth” measures to improve employeesʼ healththrough collaboration between the company and its Health
Insurance Society●

Recruitment, cultivation,and retention of outstanding
human talent
We are implementing various measures to realize the recruitment, cultivation, and retention of outstanding human talent

Yokogawa Bridge Holdings Integrated Report 2021

Promoting talent cultivation through job rotation,and encouraging employees to obtain professional
qualifications● Appropriate personnel allocation using a self-directed
application system● Promoting employee education aimed at enhancing skills
and knowhow● Effective utilization of e-learning

Labor productivity enhancement
Promoting new, labor-saving construction methods, andrelated R&D● Promoting measures to use IT for enhancing operational
efficiency, develop various types of systems, effectively
utilize robotic process automation (RPA), and use ICT torealize i-Construction● Promoting digital transformation (DX)●

Human rights
We implement measures that embody respect not only
for the human rights of Group employees, but also for thehuman rights of all stakeholders

Respecting the human rights of our employees, andthe employees of partner companies and suppliers
Respect for human rights and prohibition of discrimination
The YBHD Charter of Corporate Behavior clearly stipulates the requirement to respect the human rights ofeach individual employee, and prohibits discrimination on
unreasonable grounds that do not relate to the conducting of business, such as discrimination on the groundsof place of origin, nationality, race, ethnic background,
beliefs, religious faith, gender, age, disability or academic
background.
● Implementation of human rights training
All employees receive annual compliance training, andare thoroughly familiarized with the Charter of Corporate
Behavior and its provisions relating to respect for humanrights and the prohibition of discrimination.
●

Diversity promotion
Formulation and implementation of a General Employer
Action Plan pursuant to the Act on Promotion of WomenʼsParticipation and Advancement in the Workplace● Promoting the recruitment and retention of female engineers, establishing the infrastructure needed for female
employees to be able to work comfortably in factories andat construction sites (for example through the provisionof comfortable toilets), and providing safety belts that aredesigned to fit womenʼs bodies more comfortably● Expansion of women-friendly working environment measures and systems●

Social contribution activities
Assistance for developing nations and a contribution to local
communities through support for culture and the arts andthrough volunteering

Strengthening development assistance for developing nations

●

・・・

●

47

Setting a target to increase the percentage of female
employees to at least 15% company-wide

Aiming to realize the transfer of technology and knowhow, collaborating on cultivating the human talent neededfor economic development, and contributing towards
employment creation and economic development● Stimulating economic development and creating employment opportunities through infrastructure improvement
via ODA● Creating employment opportunities through the establishment of local operating companies in developing nations●

Receiving the Award for Successful
Cultivation of Female Engineersfrom the Japan Association ofTechnology Executives (JAOTEX)Proactive recruitment and effective utilization of humantalent regardless of nationality, gender, or age, including
persons with disabilities and senior citizens● Japanese language training for foreign employees●

Working conditions
We are putting in place a working environment that makes
working more convenient for all employees.

Prevention of overwork and promotion of work-lifebalance, and realizing equivalent compensation forequivalent work
Formulation of the 2-day
Weekend Action Plan
to rectify the problem ofexcessively long working
hours at work sites● Promoting the active utilization of the EAP external
consultation
window(for mental health consultations) in addition toregular care provision by
in-house
occupational
health physicians andnurses● Implementation of overWorkstyle Reform Promotion Message
work prevention training,
and awareness verification● Work-life balance measures (accommodation expenses
subsidy system, travel expenses subsidy system for
employees returning home, commemorative holidays,
reduced working hours system, implementation of “No
Overtime Days”, etc.)● Free association and collective bargaining
All Group companies have good labor relations, and discussion of various issues proceeds smoothly.
● Formulation of internal systems in accordance with laws
such as the Act on Improvement etc. of Employment
Management for Part-time and Fixed-term Workers andthe Act on Proper Technical Intern Training and Protectionof Technical Intern Trainees●

Foundation of Value Creation

Safety and Quality
Department Manager●

Promotion of recruitment activities that effectively utilize
site visits, internships, and the holding of seminars inschools and colleges● Re-employment system●

Strengthening of talent management(Safety and Quality Management
Headquarters Director)

Osaka Construction Headquarters Director
Construction Division Manager

Recruitment of diverse, outstanding human talent

Overseas operations (South Sudan)

Working together with the local community
To fulfill our roles and responsibilities as an enterprise
engaged in providing society with infrastructure and thefoundations for daily life, as a corporate citizen that seeks
to work in harmony with the local community, we implement
measures to invigorate local communities, with the goal of
helping to create a society in which people can live safely andwith peace of mind.
● Clean-up activity in the vicinity of a YBHD facility● Fire prevention training in the local community● We invite children from local schools and other local residents to visit our factories and work sites, so that they
can develop a more in-depth understanding of bridges
and buildings● YBHD staff give “visiting classes” in which they visit
schools, etc.

Hands-on class involving
the making of miniature
bridge models

Site visit

Yokogawa Bridge Holdings Integrated Report 2021

48

GovernanceCorporate GovernanceDirectors and Auditors

Our approach to corporate
governanceDirectors

Chairman and
Representative Director

President andRepresentative Director

Hisashi Fujii

Kazuhiko Takata① Respecting shareholder rights, and ensuring
meaningful shareholder equality.
② Striving to engage in appropriate consultation
with shareholders and other stakeholders.

In line with our corporate philosophy of “Contribution tosociety and the public, and sound management,” the YBHDGroup aims to make a positive contribution to society bycarrying out monozukuri manufacturing with integrity, and byproviding high-quality, safe social infrastructure.
Utilizing the YBHD Groupʼs wealth of human talent andhigh-level technological capabilities to realize sustainablegrowth and enhance corporate value over the medium tolong term has won us the trust of our stakeholders. In continuing to implement our corporate activities going forward,
remaining aware of our responsibilities as a good corporate
citizen, ensuring thorough compliance, managing risk properly, and earning the trust of the people who work for us, wewill strive to make ourselves an enterprise that helps people
to live with safety and peace of mind. To realize this vision,
we will implement thorough corporate governance based on
the following five core principles.

③ Disclosing corporate information in an appropriate manner, and ensuring transparency.
④ Ensuring that the board of directors fulfils
its roles and responsibilities appropriately,
and implements transparent, responsive
decision-making.
⑤ Striving to engage in constructive dialog withshareholders regarding the companyʼs strategy
for long-term, stable growth.
Foundation of Value Creation

Governance Structure

Kiyotsugu Takagi

Hidenori Miyamoto

Director

Director

Kazuya Kuwahara

Akira Kobayashi

Holding Company (YBHD)
Shareholders Meeting
Appointment and removal
Views, reports, etc.

Outside Director

Outside Director

Outside Director

Yasunori Kamei

Kazunori Kuromoto

Reiko Amano

Auditors

Appointment,
removal,and oversightCompliance

YBHD Code of Corporate Behavior

Board of Directors

Nomination Advisory Committee
Remuneration Advisory Committee

Recommendations, etc.

Recommendations, etc.

Compliance Committee

Representative Directors
Executive Directors

Reporting

Reporting

Reporting
Auditing

Consultation window

Instructions
and orders

Exercise of voting rights, operational
management, auditing, guidance, etc.

Accounts auditing and reporting
Seeking pre-approval of major decisions,
reporting, explanation, etc.

Operating companies (Yokogawa Bridge Corp., Yokogawa System Buildings Corp., etc.)
Shareholders Meeting

Compliance49

Outside Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Ryogo Hirokawa

Teruhiko Oshima

Masashi Shishime

Kazunori Yagi

Tomozo Yoshikawa

Yokogawa Bridge Holdings Integrated Report 2021

Reporting

Audit OfficeInternal auditing

AuditorStanding Audit &Supervisory Board Member

RemovalAudit & Supervisory
Board

Coordination

ReportingOperational departments

Appointment,
removal,and
refusal of
re-appointment

Sustainability Committee

Board of Directors and Management CommitteeStanding Audit &Supervisory Board Member

Appointment
and removal

Financial Auditor

Managing Representative
Director

Representative Directors
Executive Directors
Operational departments

Financial Auditor(at some operating companies)

Managing Representative
Director

Yokogawa Bridge Holdings Integrated Report 2021

50

GovernanceCorporate Governance

Overview of the corporate
governance system

Board of Directors
The Board of Directors meets, in principle, on a monthly
basis, to carry out decision-making in relation to Groupmanagement. The Board formulates the Groupʼs overall operational strategy and plans, evaluates performance
implementation, reviews, and makes decisions regarding
important managerial matters at operating companies andother important operational issues, and oversees individual
Directorsʼ fulfilment of their duties.
Three of YBHDʼs Directors also serve concurrently as the
Presidents of major Group operating companies. In addition, five Presidents of Group operating companies who are
not YBHD Directors are present at YBHD Board meetings.
Furthermore, the Boardʼs three Outside Directors have thestatus of independent corporate officers, in accordance with
Tokyo Stock Exchange (TSE) regulations.

The Board of Directorsʼ Optional Committees●

51

Nomination Advisory Committee
With the aim of strengthening the independence, objectivity, and accountability of the functioning of the Board of
Directors in relation to the nomination of Representative
Directors, Directors, and Members of the Audit &Supervisory Board, based on consultation with the Board of
Directors, the Nomination Advisory Committee deliberates
nominations of candidates for the positions of Director orMember of the Audit & Supervisory Board and the appointment of Representative Directors and Executive Directors,
as well as matters relating to succession planning for the
President, and submits its views, reports, etc. to the Boardof Directors. The Nomination Advisory Committee consistsof two Representative Directors and three independent
Outside Directors.

Yokogawa Bridge Holdings Integrated Report 2021

Managing Executive Officers Committee
To help ensure that the companyʼs operations proceedsmoothly, the Managing Executive Officers Committee,
whose membership comprises all Board members otherthan Outside Directors, as well as the Standing Audit &Supervisory Board Members and the Presidents of operatingcompanies, meets, in principle, once a month, to receive anddeliberate on reports regarding important managerial matters at individual operating companies and other importantmatters relating to the implementation of business activities.

Audit & Supervisory Board
The Audit & Supervisory Board, whose membership comprises two Standing Audit & Supervisory Board Members
and three Outside Audit & Supervisory Board Members, fora total of five members, meets, in principle, once a month.
The Audit & Supervisory Board Members attend important
meetings such as regular meetings to exchange views with
the Board of Directors, the Managing Executive Officers
Committee, and the Representative Directors, and exchange
information with the Audit Office (which functions as the internal auditing department) and the Financial Auditor, so as todevelop a clear picture of the decision-making process. They
express their views when necessary, and they receive reportson the current state of operational implementation, finance,compliance, internal auditing, etc. Furthermore, the Audit &Supervisory Boardʼs three Outside Audit & Supervisory Board
Members have the status of independent corporate officers,
in accordance with Tokyo Stock Exchange (TSE) regulations.

Financial Auditor
YBHD has appointed Kyowa Accounting Group as its
Financial Auditor. Besides providing the Financial Auditor
with accurate management-related information as required,
YBHD also undergoes auditing by the Financial Auditor
throughout the fiscal year.

Evaluation of the Effectivenessof the Board of Directors
To enhance the functioning of the Board of Directors, wehave conducted analysis and evaluation of the Boardʼs overall effectiveness.
More specifically, we administered a questionnaire survey
to all Directors and Audit & Supervisory Board Members, andto the Presidents of all of the Groupʼs operating companies.
Based on the results obtained in this survey, and on the opinions expressed by external assessment organizations, we
performed analysis and evaluation of the overall effectivenessof the Board of Directors.
The survey results showed that the overall level of satisfaction with the Boardʼs discussions, composition, etc.,
was high, from which it was determined that the Board had
maintained its effectiveness in terms of approving importantmanagerial matters and exercising appropriate oversight ofoperational implementation.
On the other hand, as an issue that will need addressing in
the future, it was determined that discussion of a sustainablemedium- and long-term growth strategy for YBHD needed tobe continued and expanded.
On the basis of the results of the most recent evaluation of
the effectiveness of the Board of Directors and of the issues,
etc. identified, going forward, we will be expanding discussion of medium- and long-term management strategy, andwe will be striving to realize further enhancement of the effectiveness of the Board of Directors.

Policies for deciding on
remuneration
Policies for deciding on remuneration, etc.
for Directors and Audit & Supervisory Board
Members
Having put in place the remuneration governance outlined
below, the remuneration, etc. of company officers is decided
upon using the Remuneration Program, in accordance withthe resolutions passed at the Shareholders Meeting regarding the remuneration of company officers and with the basic
policy on the remuneration system for company officers.
① Remuneration governanceThe companyʼs policy regarding decisions on the amount of
remuneration to be paid to company officers and the methodof calculation is decided on by the Board of Directors, basedon deliberation and reporting by the Remuneration Advisory
Committee, which is chaired by an independent Outside
Director, and a majority of whose members must be independent Outside Directors.
a. Roles and responsibilities of the Remuneration
Advisory Committee
With regard to the basic policy governing the remuneration system for company officers and the remuneration
system, the framework for performance-linked remuneration, the amounts paid to individual company officers,etc., the Remuneration Advisory Committee undertakes

appropriate deliberation and decision-making, making
effective use of information collected by and advice
received from external remuneration consultants, and on
the basis of objective, vital information regarding the recent
state of company officer remuneration systems, key trends
in discussions of this area, trends in other companiesʼ systems, etc.
In the event that the Board of Directors reaches a decision that diverges from the content of reports submitted by
the Remuneration Advisory Committee, the Remuneration
Advisory Committee will ask the Board of Directors to collate and announce the reasons for this decision.
b. Composition of the Remuneration Advisory
Committee and Attributes of the Committee chair
The Remuneration Advisory Committee comprises fivemembers, of which a majority are independent Outside
Directors. The chair of the Remuneration Advisory
Committee is expected to strive for effective Committee
operation from the perspective of strengthening functionality in terms of independence, objectivity, and accountability,
and is appointed by the decision of the Board of Directors
from among those Committee members who are independent Outside Directors.
② Remuneration Program
The remuneration received by the companyʼs Directors(excluding Outside Directors) comprises basic remuneration(which is a fixed amount), performance-linked remuneration,and non-monetary remuneration. Performance-linked remuneration consists of an annual bonus, which is linked to theextent that company-wide performance targets for that year
have been achieved. Non-monetary remuneration consists ofshare-based remuneration, the aim of which is to ensure that
Directors share common interests with shareholders, and tostrengthen Directorsʼ awareness of the need to enhance corporate value. However, taking into account the roles that theyplay, the remuneration received by Outside Directors and by
Audit & Supervisory Board Members consists only of basic
remuneration.
With regard to the remuneration received by Audit &Supervisory Board Members, basic remuneration (only) is
paid, based on consultation within the Audit & Supervisory
Board, within the scope of the total amount of remuneration
approved by resolution of the Shareholders Meeting.

Foundation of Value Creation

YBHD is a company with a Board of Directors, an Audit &Supervisory Board, and a Financial Auditor. Within the YBHDGroup, a group-wide risk management system, compliancesystem, and internal auditing system have been established,
and Group governance is performed on a group-wide basis.
In addition, three Outside Directors and three Outside Audit &Supervisory Board Members oversee and audit the Board of
Directorsʼ decision-making process and the manner in which
Directors fulfil their duties.
Furthermore, with regard to the Groupʼs business operations, by requiring operating companies to seek priorapproval for major decisions and provide periodic progress reports on the state of implementation, we are able tomanage operations in a way that effectively coordinates theactivities of each operating company, while striving to further
the development of the Group as a whole and enhance corporate value.
Additionally, by having Directors of YBHD, the Groupʼsholding company, serve concurrently as Presidents of Group
operating companies, we are able to achieve appropriate
management in which operating company Presidents are
more aware of their responsibility to shareholders, also allowing us to pursue synergy.

Remuneration Advisory Committee
With the aim of strengthening the independence, objectivity, and accountability of the functioning of the Boardof Directors in relation to matters relating to Directorsʼ
remuneration, based on consultation with the Board of
Directors, the Remuneration Advisory Committee deliberates and makes decisions relating to the remuneration,etc. of Directors, and submits its views, reports, etc. to theBoard of Directors. The Remuneration Advisory Committee
consists of two Representative Directors and three independent Outside Directors.
● Compliance Committee
The Compliance Committee deliberates basic policies
and important matters relating to the promotion of compliance, as well as performing deliberation, etc. from aneutral standpoint in regard to the handling of whistleblowersʼ reports, and submits its recommendations, etc. to theBoard of Directors.
● Sustainability Committee
The Sustainability Committee considers the linking of the
YBHD Groupʼs business activities to sustainability and thefleshing out of the Groupʼs non-financial information disclosure, and submits its recommendations, etc. to the Boardof Directors.
●

a. Basic policies regarding the company officers remuneration system● The company officers remuneration system must allow theappropriate rewarding of outstanding management talentable to contribute towards the sustainable developmentof the company and long-term growth in corporate value.
● The company officers remuneration system must facilitate
the operation of a sound incentive function aimed at thecompanyʼs sustainable growth, which not only provides
motivation for the achievement of performance targets
but also reflects the latent risks of such achievement.
● The company officers remuneration system must provide support for encouraging the management team towork together with the aim of enhancing the companyʼs
corporate value and realizing company-wide strategic
objectives.

Yokogawa Bridge Holdings Integrated Report 2021

52

Governance

GovernanceComplianceCorporate Governance●As decisions relating to the company officers remuneration
system and determinations made regarding its utilizationmust be made through objective, transparent procedures,such decisions must be made following deliberation by
an independent Remuneration Advisory Committee, andon the basis of the reports received from this Committee.

c. Content of performance-linked remuneration, andpolicies regarding the determination of performance-linked remuneration
The key performance indicator (KPI) for the annual bonus
shall be consolidated operating profit for that fiscal year.
The reason for choosing this indicator is that consolidated operating profit is a financial indicator that effectively
shows the results achieved by enterprise activities in thecompanyʼs core business, and that the reasonableness ofthe payment made can be easily explained.
When evaluating operational performance, a payment
ratio is calculated according to the level of achievement ascompared to the operational performance target values,
set by the Board of Directors at the beginning of the fiscal
year following deliberation on and verification of their appropriacy by the Remuneration Advisory Committee, and thispayment ratio is used as the basis for the Remuneration
Advisory Committeeʼs calculation of the amount to be paid
and its evaluation and determination.
The annual bonus is paid at a specified time that is set
in advance. The payment ratio varies within a range of 0%
to 150%.
Regarding the KPI target value for performance-linked
remuneration in FY 2020, the consolidated operating profit
target was set at 13 billion yen, and the actual result was
15.9 billion yen.
d. Content of non-monetary remuneration, and policies regarding the determination of non-monetary
remuneration
The purpose of share-based remuneration is to enhancecommitment to boosting medium- and long-term performance and increasing corporate value by making clearer
the connection between the companyʼs share price andDirectorsʼ remuneration, and by ensuring that Directors
share the benefits and risks of changes in the share pricewith the companyʼs shareholders. Directors receive points(with each point being equivalent to one share in the company) for each year of service, and on leaving the company
they are given a number of shares based on the number

53

Yokogawa Bridge Holdings Integrated Report 2021

e. Policies regarding the determination of the shareof overall remuneration held by each type of
remuneration
A policy has been decided on regarding the determination of the share of overall remuneration provided to
Directors (excluding Outside Directors) for each type of
remuneration, with deliberation to be conducted by the
Remuneration Advisory Committee.
When deciding on the share in question, a managersʼ
remuneration database run by an external remuneration
consulting firm will be used as the basis for performing
benchmarking every year, taking other firms that operate
on a similar scale to YBHD as comparable enterprises, toverify the appropriateness of the decision, including thelevel of remuneration.
Regarding the share of overall company officersʼ remuneration held by each category of remuneration, thestandard amount of the annual bonus per fiscal year foreach company officer position is set within a range of
19-30% of the basic remuneration, and the value of thestandard points of share-based remuneration per fiscal
year is also set within a range of 19-30% of the basic
remuneration. By raising the share of the overall remuneration received by company officers in senior positions
for performance-linked remuneration and non-monetary
remuneration, the level of managerial responsibility can bereflected in the remuneration composition for each position. The standard amount of the annual bonus per fiscal
year for each company officer position and the value ofthe standard points of share-based remuneration per fiscal
year are weighted equally.
Schematic diagram showing the share of overall remuneration for Directors (excluding Outside Directors) heldby each category of remuneration

Basic remuneration

100
Fixed remuneration

Annualbonus

Share-based
remuneration

19～30
Performance-linked
remuneration

19～30
Non-monetary
remuneration③ Matters relating to the determination of the content
of the remuneration received by individual Directors
In order to ensure a high level of independence and objectivity in all decisions made in relation to the remuneration
system, starting from FY 2020 the Board of Directors has
entrusted the Remuneration Advisory Committee with decisions regarding the content of the remuneration received byindividual Directors.

Our Approach to Compliance
YBHD Group companies and all persons working for them
are required to abide by the YBHD Code of Corporate
Behavior, and are expected to constantly be aware of theirsocial responsibility and public mission. In order to win a highlevel of trust from society, we comply with all relevant laws
and regulations, both in Japan and overseas, and we behave
as an ethical enterprise that respects corporate ethics andsocial norms.

Compliance Management
SystemCompliance Committee
We have put in place a system whereby the Compliance
Committee deliberates basic policies and important matters relating to compliance promotion, and the results of this
deliberation are reported by the Compliance Committee tothe Board of Directors. Persons who violate the YBHD Codeof Corporate Behavior, or who allow others to violate theCode, will be dealt with in accordance with the Companies
Act or other relevant laws, and with YBHDʼs Employment
Rules.

Internal auditing
With regard to the state of compliance with the YBHD Codeof Corporate Behavior and other internal rules, the Audit
Office (which has been established as an internal auditing
department independent of the companyʼs operational
departments), either acting on its own or in collaboration
with the auditing department of one or more Group operatingcompanies, implements efficient, effective auditing by performing compliance auditing, including attending meetingsand verifying accounting slips, by performing self-directed
auditing of all Group departments, and by implementing
activities to promote the utilization of the internal whistleblowing system and responding to reports submitted throughthe whistleblowing system, etc. In addition, the company
strives to strengthen the organization and authority of theCompliance Committee as necessary.

Internal whistleblowing system
YBHDʼs Directors promote the active utilization of the “Yellow
Card System,” an internal whistleblowing system which has
been put in place for reporting and consultation in relation
to violations of relevant laws, the companyʼs Articles of
Association, the YBHD Code of Corporate Behavior or internal rules, and in relation to misconduct or other complianceissues, or the possibility thereof. Improvements are made to
the system as necessary, and efforts are made to expand it.
The system is also included in compliance training, with theaim of spreading awareness of the system.

Fair Business Practices
Fair business transactions
The YBHD Groupʼs YBHD Code of Corporate Behavior
includes provisions that forbid, regardless of the circumstances, behavior that violates the Antimonopoly Act suchas cartels, bid-rigging, fixing the re-sale price, or abusing adominant position, and that specify the need to engage in
free, fair competition. We implement thorough compliancewith relevant laws and regulations, and perform thoroughmanagement of transaction records. More specifically, we
implement compliance education through the formulationof various types of manuals and rules and the provision ofcompliance training, and we have the Audit Office implement
audits and ensure appropriate operation of the internal whistleblowing system, and strive to safeguard its efficacy.
In May 2005, Yokogawa Bridge Corp. was involved in a
violation of the Antimonopoly Act relating to bid-rigging on
bridge construction, which attracted strong criticism fromsociety as a whole. The YBHD Group deeply regrets theoccurrence of such a serious incident. The incident broughthome to us the importance of compliance, and we havecommitted ourselves to ensure that no incident of this kind
will occur again in the future. Since then, we have worked toensure comprehensive implementation of the YBHD Code ofCorporate Behavior and to strengthen our internal auditing
system, putting in place the systems needed to ensure thatour business activities are in compliance with legal requirements. Going forward, the YBHD Group will continue to
implement measures relating to compliance.

Foundation of Value Creationb. Policies regarding the determination of basic remuneration (monetary remuneration)
Policies regarding the determination of the amount of basic
remuneration (monetary remuneration) to be received byeach individual shall be decided on after the Remuneration
Advisory Committee has deliberated and reported to theBoard of Directors.
When deciding on basic remuneration, a managersʼ
remuneration database run by an external remuneration
consulting firm will be used as the basis for performing
benchmarking for each company officer position every
year, taking other firms that operate on a similar scale to
YBHD as comparable enterprises, to determine a monthly
fixed remuneration amount.

of accumulated points. The number of points granted is
calculated by dividing the basic amount specified for the
position in question by the companyʼs share transfer rulesby the acquisition price of company stock held in trust.

Corruption prevention
When implementing political contributions or donations tovarious organizations, the YBHD Group complies with relevant laws such as the Public Offices Election Act and PoliticalFunds Control Act, and ensures in advance that internal
rules such as the Rules Specifying the Scope of Authority
are followed. Besides refusing to engage in bribery or illegal political contributions, YBHD has also clearly stipulated
that employees must think carefully before engaging in any
actions that could be misconstrued as indicating excessively
close relations with politicians or government officials, andemployees must not entertain or offer gifts to government
officials or persons with equivalent status.
To ensure the effectiveness of these measures, we have
put in place an appropriate risk management system, and wehave been working to strengthen compliance and the related
education and training system, for example though effective
utilization of the internal controls system, appropriate operation of the Compliance Committee, and compilation of amanual outlining the rules to follow in relation to election
campaigns and a manual on the prevention of bribery involving foreign government officials, etc.

Yokogawa Bridge Holdings Integrated Report 2021

54

GovernanceRisk Management
Our approach to risk management
With regard to the risk of loss in relation to our businessactivities resulting from accidents, quality issues, violations oflaws or regulations, etc., the Board of Directors, etc. spreads
awareness and conducts verification in regard to preventive and remedial measures, and when a report is received
about an incident, the Board aims to provide thorough guidance in regard to strategies to prevent reoccurrence, etc.
Furthermore, by having all departments within all Group
companies implement periodic self-directed auditing of thestate of management of the risk of loss involving their own
department, we are strengthening measures to prevent therisk of loss throughout the Group as a whole.

Preventive measures

Yes

Effective
Inadequate

No

Improvement
measuresMain risks and countermeasures
The risks that we have identified through self-directed audits,and other major risks that we recognize have the potential
to have a serious negative impact on the Groupʼs financial
status, operational performance, or cash flow status, are outlined below.
① Safety risks relating to accidents, etc.
The process of constructing steel structures such as bridges
can be broadly divided into three stages: fabrication at thefactory, transportation, and on-site construction work. At
each of these stages, the products that are being handled
are very large and heavy, and if an accident were to occur,
there is a risk that it could have a serious impact. To eliminate
the danger of a serious accident occurring, we are working toenhance the efficacy of our safety measures, by disseminating case studies of past incidents and accidents, improving
operational procedures, adopting innovative safety equipment, creating dual layers of safety provision, putting work
monitoring on a systematic footing, etc.

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Yokogawa Bridge Holdings Integrated Report 2021

② Reliance on public infrastructure projects
The largest share of work in the bridge business, which is
the YBHD Groupʼs main business area, derives from tenders
awarded by central government or local government authorities. Consequently, in the event of an unexpectedly large fallin orders for new bridges, due to a major change in societal
infrastructure policy or a dramatic worsening in government
finances, this would result in a fall in the volume of orders
received and in our sales revenue, which could significantly
impact our operational performance. To reduce this kind ofrisk, we are aiming to maintain, expand, and optimize ourbridge business by strengthening the responsiveness of ourbridge maintenance business in combination with new construction, while also proceeding with diversification in termsof our civil engineering business (particularly tunnel segments) and our steel structures business. At the same time,
we are also working to expand the amount of business we
do with private companies, with a particular focus on realizing growth in our system structures business.
③ Risks relating to trends in the construction market
The system structures business is a key pillar of growth for
the YBHD Group. Orders from private-sector companies
account for the largest share of this business, so in the eventthat private-sector capital investment falls as a result of an
economic downturn in Japan or overseas, this would resultin a fall in the volume of orders received and in our sales
revenue, which could significantly impact our operational
performance. For this reason, we are implementing measures to expand our sales network and reduce costs.
④ Risks relating to the regulatory framework
Although we conduct our business in accordance with relevant laws such as the Construction Business Act and the
Antimonopoly Act, both within Japan and overseas, in theevent of a violation of such laws, we could be liable to criminal penalties and administrative sanctions, which would
result in a fall in the volume of orders received and in oursales revenue, which in turn could significantly impact ouroperational performance. To avoid this kind of situation, the
YBHD Group positions compliance as the foundation forGroup operation, and is committed to engaging in businessactivities in an appropriate manner.

⑧ Risk relating to default
Although public-sector clients, where there is no risk ofdefault, account for the largest share of business in the
YBHD Groupʼs bridge business, which is the Groupʼs main
business area, in the civil engineering business and precisionequipment business, most of the clients are private-sector companies. Before engaging in a business transaction
with a private-sector company, the YBHD Group conducts
thorough credit checks in advance, and we also allocate
an allowance for doubtful accounts in relation to accounts
receivable.

⑥ Country risk
The YBHD Groupʼs bridge business has been expanding
overseas through participation in ODA projects, etc., mainlyin the Asia region. In addition, part of the design work for ourbridge business and system structure business is conductedby our subsidiaries in China and the Philippines. In the eventof a dramatic change in the political or economic situation in
one of these countries, it might become difficult to continue
operations, which could significantly impact our operational
performance. In order to be prepared for this type of risk,
besides striving to put in place methods for ensuring thesafety of our employees and establishing crisis management
systems for use in emergencies, we have also establishedbackup systems for our operations (including our domestic
operations), and we undertake planning to ensure effective coordination with the Japanese government, the local
Japanese embassy in other countries, and other related parties, as necessary.

⑨ Risk relating to the COVID-19 pandemic
There is a possibility that the spread of the COVID-19 pandemic may lead to work being interrupted or facilities having
to close, which would affect our operational processes andresult in increased costs. We are responding appropriately
to this issue by paying painstaking attention to infection prevention and consulting with clients as needed. We are also
implementing infection prevention measures and measures
to prevent the spread of COVID-19, for example by putting inplace an environment that supports teleworking and flexible
working hours.

⑦ Large-scale disaster risk
In the event of a large-scale natural disaster such as an earthquake, tsunami, or damage from storms or floods, factories
or work sites could suffer damage, which could significantly
impact our operational performance. In order to be prepared
for this type of risk and minimize negative impact, we haveformulated business continuity plans, and we implement
training based on emergency scenarios.

Information security
To prevent the leaking of corporate business secrets, etc.,
we strive to ensure compliance with the information security
items specified in the YBHD Charter of Corporate Behavior
and the Security Guidelines, and we are establishing necessary rules and implementing training, as well as providing
periodic training in dealing with targeted e-mail attacks.
Furthermore, when establishing Group information systems, we take all necessary measures to ensure safety, andimplement a range of measures to prevent data leaks. In theunlikely event that a data leak does occur, our IT systems
department will rapidly take all necessary steps to preventthe issue from spreading to affect important data assets
or persons and organizations outside the company, and torestore information system functionality. It will also take steps
to prevent reoccurrence.

Foundation of Value Creation

Risk awarenessSelf-directed auditing flow

Safety-related in-house education⑤ Responding to defects
Regarding defects in steel structures constructed by the
YBHD Group, we are statutorily liable for such defects
according to contract, and depending on the seriousness ofthe defects, there is a risk that YBHD could incur significant
costs in remedying the situation. To avoid this kind of situation, as an enterprise entrusted with the construction of
public assets, we are strongly aware of our responsibility toprovide high-quality products at a reasonable cost, and incarrying out our business we give painstaking attention toquality management, etc.

Training in progress
Evacuation drill

Yokogawa Bridge Holdings Integrated Report 2021

56

Financial information

Long-term financial results (nine years)(100 million yen)

2012

2013

2014

2015

2016

2017

2018

2019

2020

Net sales

887

882

1,027

1,057

1,134

1,310

1,419

1,381

1,360

Operating income

34

65

64

69

80

137

105

128

159

Operating income margin (%)

3.9

7.4

6.2

6.5

7.1

10.5

7.4

9.3

11.7

Ordinary income

36

65

66

69

81

138

106

129

160

Net income attributable to owners of the parent

19

42

42

43

43

93

75

90

112

Net assets

537

595

641

655

698

806

865

920

1,039

Total assets

1,016

1,040

1,167

1,149

1,281

1,449

1,496

1,525

1,696

Net assets per share (yen)1,227.76

1,370.27

1,485.09

1,532.44

1,650.17

1,907.50

2,037.61

2,159.88

2,451.96

Net income per share (yen)

45.23

99.50

98.40

103.19102.98226.93

182.33217.61273.09

4

4

5

6

6

9

12

15

21

Dividend (yen/share)

10.00

11.00

14.00

16.00

16.00

22.00

30.00

37.00

52.00

Dividend payout ratio (%)

22.1

11.1

14.2

15.5

15.5

9.7

16.5

17.0

19.0

Return on shareholdersʼ equity (%)

3.8

7.7

6.9

6.9

6.5

12.8

9.2

10.4

11.9

Shareholdersʼ equity

530

587

631

643

683

788

842

894

1,011

Shareholdersʼ equity ratio (%)

52.1

56.5

54.1

56.0

53.3

54.4

56.3

58.6

59.6

Capital expenditure

9

11

16

24

33

73

76

101

60

Depreciation and amortization

13

13

13

15

16

17

21

28

34

R&D expenses

2

2

3

3

2

2

2

4

4

1,529

1,567

1,626

1,649

1,663

1,687

1,749

1,800

1,891

Bridge business

632

586

693

684

650

739

733

812

824

Engineering business

230

261

300

339

428

509

633

529

483

Precision equipment business

15

25

25

26

47

53

44

32

46

Real estate business

9

8

7

7

7

7

6

6

6

Bridge business

27

42

43

46

38

85

60

83

114

Engineering business

11

23

22

26

40

48

43

48

45

Precision equipment business

-1

4

3

4

7

9

8

4

9

Real estate business

4

4

3

3

3

3

4

4

3

Bridge business

700

720

532

795

622

832

917

694

1,275

Engineering business

219

290

469

423

463

603

573

511

571

Precision equipment business

21

22

25

30

52

51

41

37

49

FY

company

Total dividends

Data Section

Number of employees (persons)Segment information
Net sales

Operating income

Order balance

57

Yokogawa Bridge Holdings Integrated Report 2021

Yokogawa Bridge Holdings Integrated Report 2021

58

Financial information

Consolidated financial statements, etc.
Consolidated financial statements(1) Consolidated balance sheet(2) Consolidated statement of income and consolidated statement of comprehensive income(Unit: million yen)Previous fiscal year
(March 31, 2020)

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts and other
Short-term borrowings
Current portion of bonds
Current portion of long-term borrowings
Income taxes payable, etc.
Advances received on uncompleted construction contracts
Provision for losses on construction contracts
Provision for bonuses
Other reserves
Other
Total current liabilities
Fixed liabilities
Corporate bonds
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Allowance for executives' retirement benefits
Allowance for stock-based compensation
Retirement benefit liability
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholder's equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

59

Yokogawa Bridge Holdings Integrated Report 2021

22,76965,666
2,748
2,709
△2
93,891

13,287
7,549
15,200240
599
36,877
1,096
60
1,156
13,935
306
6,032
382
20,656
58,691
152,583

19,60280,118
2,365
2,547
△0
104,632

14,4338,303
15,145580
609
39,072
1,417
56
1,474
17,282
398
6,331
503
24,51665,062
169,695(Unit: million yen)Previous fiscal year
(From April 1, 2019
to March 31, 2020)
Net sales

138,144

136,091

Cost of sales

117,205

111,287

Gross profit

20,93924,803

Selling, general, and administrative expenses

8,056

8,837

Operating income

12,883

15,966

Non-operating income
Interest income

1

5

Dividends income

300

292

Insurance income and dividends received

41

55

Equity in investment revenue of affiliates

39

93

Other

44

66

Total non-operating income

428

513

Non-operating expenses
Interest expense

89

102

Commitment fee

100

144

Group term insurance premiums

63

65

Prepayment of guarantee fee

53

36

Other

34

36

Total non-operating expenses

342

385

12,96916,094

Ordinary income
Extraordinary income
Income on selling property, plant and equipment
Gain on sales of investment securities

16,330
4,000
−
3,000
3,894
2,254
4,176
2,641
165
4,325
40,789

2,300
6,200
1,424
70
625
47
11,168320
22,15660,534

2,600
6,985
2,471
70
386
91
11,975381
24,96065,749

435

0

7

502

273

33

Proceeds from subsidies

−

97

Other

0

−

716

633

Loss on disposal of non-current assets

14

92

Losses on impairment of fixed assets

62−

Loss on disasters

74−

Loss on valuation of investment securities

64

111

Insurance income

Total extraordinary income
20,345
−
50
3,300
2,192
2,361
4,851
2,513
62
2,701
38,378Current fiscal year
(From April 1, 2020
to March 31, 2021)

Data Section

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed construction contracts and other
Inventories
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Shares of affiliates
Deferred tax assets
Other
Total investments and other assets
Total fixed assets
Total assets

Consolidated statement of income

Current fiscal year
(March 31, 2021)

Extraordinary loss

Loss on valuation of stocks of affiliates

22−

Total extraordinary loss

239

204

Net income before income taxes and non-controlling interests

13,446

16,523

Corporate, inhabitant, and enterprise taxes

3,542

5,307

576

△338

Deferred income taxes
Total corporate tax

4,119

4,969

Net income

9,327

11,554

Net income attributable to non-controlling interests
Net income attributable to owners of the parent company

322

265

9,004

11,289Consolidated statements of comprehensive income(Unit: million yen)

Current fiscal year
(From April 1, 2020
to March 31, 2021)

Previous fiscal year
(From April 1, 2019
to March 31, 2020)
Net income

9,327

11,554△2,5302,459△2,530

2,459

6,796

14,013

6,473

13,748322

265

Other comprehensive income
9,435
10,18569,592△3,61285,600
3,650
159
3,810
2,638
92,048
152,583

9,435
10,185
79,140△3,90094,860
6,110
159
6,269
2,815
103,945
169,695

Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

Yokogawa Bridge Holdings Integrated Report 2021

60

Financial information

Consolidated financial statements, etc.
(3) Consolidated statement of changes in shareholdersʼ equity(4) Consolidated statement of cash flows

Previous fiscal year (April 01, 2019 March 31, 2020)(Unit: million yen)

(Unit: million yen)Previous fiscal year
(From April 1, 2019
to March 31, 2020)

Shareholdersʼ equity
Share capital

Capital surplus

Retained earnings

Treasury shares

9,435

10,18561,997△3,693

Balance at the beginning ofcurrent period
Changes of items during period
Dividends of surplus
Profit attributable to ownersof parent
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items otherthan shareholdersʼ equity
Total changes during period
Balance at the end of period

0

−
9,435

0
10,185

7,594
69,592

Accumulated other comprehensive income
Valuation difference
Total accumulated
Revaluation reserveon available-for-saleother comprehensive
for landsecurities
income
6,181
159
6,341

△1,409
9,004
△0
81

△0
81

80
△3,612

7,675
85,600Non-controllinginterests

Total net assets

2,317

86,583△1,4099,004△2,530−△2,530320△081△2,210△2,530
3,650

−
159

△2,530
3,810

320
2,638

5,465
92,048Current fiscal year (From April 1, 2020 to March 31, 2021)(Unit: million yen)

Shareholdersʼ equity
Share capital

Capital surplus

Retained earnings

Treasury shares

9,435

10,18569,592△3,612

Balance at the beginning ofcurrent period
Changes of items during period
Dividends of surplus
Profit attributable to ownersof parent
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items otherthan shareholdersʼ equity
Total changes during period
Balance at the end of period

Balance at beginning ofcurrent period
Changes of items during period
Dividends of surplus
Profit attributable to ownersof parent
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items otherthan shareholdersʼ equity
Total changes during period
Balance at the end of period

61△1,741
11,289−
9,435−
10,185

9,548
79,140

Accumulated other comprehensive income
Valuation difference
Total accumulated
Revaluation reserveon available-for-saleother comprehensive
for landsecurities
income
3,650
159
3,810

Yokogawa Bridge Holdings Integrated Report 2021

Total shareholder'sequity85,600△1,741
11,289
△348
60

△348
60

△287
△3,9009,260
94,860Non-controllinginterests

Total net assets

2,638

92,048△1,741
11,289

2,459

−

2,459

177

△348
60
2,636

2,459
6,110

−
159

2,459
6,269

177
2,815

11,897
103,945

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Losses on impairment of fixed assets
Increase (decrease) in retirement benefit liability
Increase (decrease) in allowance for executivesʼ retirement
benefits
Increase (decrease) in allowance for stock-based compensation
Increase (decrease) in other provisions
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in provision for bonuses
Interest and dividend income received
Interest expense
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant, and equipment
Loss on disposal of fixed assets
Loss (gain) on valuation of investment securities
Non-cash portion of other income and expenses, etc. (net)Decrease (increase) in notes receivable, accounts
receivable from completed construction contracts and other
Decrease (increase) in costs on uncompleted construction
contracts and work in process
Decrease (increase) in accounts receivable-other
Increase (decrease) in notes payable, accounts payable forconstruction contract and other
Increase (decrease) in advances received on uncompleted
construction contracts
Increase (decrease) in accounts payable-other
Increase (decrease) in deposits received
Increase (decrease) in accrued consumption tax, etc.
Increase (decrease) in other assets and liabilities
SubtotalInterest and dividends received
Interest expenses paid
Income taxes, etc. paid
Payments for accident-related losses
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible fixed assets
Expenditures on purchase of investment securities
Proceeds from sales of investment securities
Payments for loans
Proceeds from collection of loans
Other expenditures
Other proceeds
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term borrowings
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Payments for purchase of treasury stock
Proceeds from sales of treasury stock
Dividends paid
Dividends paid to non-controlling interests
Cash flows from financing activities
Foreign currency translation adjustments on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13,446
2,818
62
202
61

16,523
3,447
−
803
△196

27
△246
△1,365
105
△302
89
△7
△425
3
64
△102
841

43
101
△674
127
△298
102
△502
20
47
111
△78
△14,451

△230

△187

△645
△1,079△12△4,015

374

△106

△25
297
△1,078△720
12,164303△66△2,909
△323
9,168

244
360
2,144
124
3,679
299
△102
△3,682−
195△8,716
493
△549
△98
109
−
0
△32
34
△8,761△5,577
36
△879
△303
770
△40
4
△60
63
△5,985△1,0006,200△5,971
2,300△2,300△081△1,408△2△2,10118△1,67524,41422,7394,000
3,848△3,362
300
△50
△348
60
△1,740△87
2,619
23△3,14722,73919,592

Yokogawa Bridge Holdings Integrated Report 2021

Data Section

Balance at beginning ofcurrent period
Changes of items during period
Dividends of surplus
Profit attributable to ownersof parent
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items otherthan shareholdersʼ equity
Total changes during period
Balance at the end of period△1,4099,004

Total shareholder'sequity77,924Current fiscal year
(From April 1, 2020
to March 31, 2021)

62

Location Information

List of Group Companies

A long-standing contribution to social and economic development through the improvement
and maintenance of social infrastructure“Embody integrity! Create outstanding things!”
This was the monozukuri approach to manufacturing espoused by our founder, Dr. Tamisuke
Yokogawa, which has been handed down andmaintained in our company for over a century.

Founded in 1907, Yokogawa Bridge Corp. has played an important rolein improving social infrastructure̶including bridge construction, bothwithin and outside Japan, and the manufacture of steel structures. Today,
Yokogawa Bridge Corp. operates as an integrated general engineering company, offering total solutions that encompass every stage fromdesign through to installation, repair and reinforcement, rebuilding, andrenewal. The company is focused on the new bridge construction business, the bridge maintenance business (demand for which is forecasted
to increase significantly), and the expressway large-scale upgrading andlarge-scale repair business. Other business areas include the constructionof special-purpose buildings, such as high-rise buildings, domes, etc., theconstruction of large, high-precision structures using ultra-precise finishingtechnology, and the development of products that help to enhance themaintenance of existing bridges. In overseas markets, Yokogawa Bridge
Corp. is focused on improving infrastructure in regions with significant
growth potential, such as Africa and Southeast Asia.

This philosophy, which extends throughout the
YBHD Group, helps to strengthen cohesion while
also driving YBHD to create even better products

New bridge construction businessCompany History
1907 Dr. Tamisuke Yokogawa founded Yokogawa Bridge Works in
Nishi-ku, Osaka City.
The Osaka Plant was established (closed in 1943).
1918 Yokogawa Bridge Works was reorganized as a joint-stock company.
1922 The new Tokyo Plant was established in the Shibaura district ofTokyo (closed in 1969).
1964 The Osaka Branch was established, and the Osaka Plant began
operation.
1969 The Tokyo Branch was established, and the Chiba Plant began
operation (closed in 1999).
1991 Yokogawa Bridge Works Ltd. was renamed Yokogawa Bridge Corp.
2005 The Bridge Stage Izumi Plant, located in Izumi City, Osaka
Prefecture, began operation.
2007 Yokogawa Bridge Holdings Corp. was established.
2007 Yokogawa Bridge Corp. became a wholly owned subsidiary of
Yokogawa Bridge Holdings Corp., and was delisted.
2007 A ceremony was held to commemorate the 100th anniversary of thecompanyʼs founding.
2019 The Kishiwada Plant was established in Kishiwada City, Osaka
Prefecture.

Construction business
Data Section

and market them not only in Japan, but throughout
the world.

Yokogawa Engineered Structure System (yess),which makes effective use of Yokogawaʼs uniquesteel structure technology, holds the highest
market share in the engineered structure market.
By expanding our domestic and international business network, we are contributing to theimprovement of societal infrastructure on a global scale.
Yokogawa Bridge Holdings Corp. (YBHD) came into being in August 2007 with the aim of integrating the YBHD Groupʼs multi-faceted capabilities
in a flexible manner and making a substantial contribution to society. YBHD responds to customersʼ diverse needs through our extensive domestic
and international network.

Main domestic
business locations
Branches
Muroran City,
Hokkaido
Kamisu City, Ibaraki
Prefecture
Minato-ku, Tokyo
Funabashi City,
Chiba Prefecture
Sakai City, Osaka
Prefecture

63

Main overseas business locations
Sales Offices
Sapporo City, Hokkaido
Sendai City, Miyagi Prefecture
Yokohama City, Kanagawa
Prefecture
Shizuoka City, Shizuoka
Prefecture
Nagoya City, Aichi Prefecture
Osaka City, Osaka Prefecture
Amagasaki City, Hyogo
Prefecture
Okayama City, Okayama
Prefecture
Hiroshima City, Hiroshima
Prefecture
Fukuoka City, Fukuoka
Prefecture
Naha City, Okinawa Prefecture

Yokogawa Bridge Holdings Integrated Report 2021

PlantsMuroran Plant (Hokkaido)
Kashima Plant (Ibaraki
Prefecture)
Chiba Plant (Chiba
Prefecture)
Mobara Plant (Chiba
Prefecture)
Osaka Plant (Osaka
Prefecture)
Izumi Plant (Osaka
Prefecture)
Kishiwada Plant (Osaka
Prefecture)

Equipment Centers
Hokkaido Equipment Center(Hokkaido)
Tone Equipment Center (Ibaraki
Prefecture)
Harima Equipment Center (Hyogo
Prefecture)

VietnamHanoi City
Hanoi Office

Research Facilities
Technical Research Laboratory(Chiba Prefecture)

Philippines Pasig City
Yokogawa Techno
Philippines,Inc.

Myanmar
Yangon City
Yangon Branch

Yokogawa System Buildings Corp. was launched around a core businessof engineered structures, a new style of building. Under the brand name“yess” (Yokogawa Engineered Structure System), the company has been
involved in the construction of over 10,000 buildings throughout Japan.
What makes “yess” special is that Yokogawa System Buildings Corp.
has Japanʼs only dedicated engineered structure factory, and a networkof more than 1,200 sales and construction agents (builders) throughout
Japan, enabling the company to rapidly supply high-quality products to
any location. These structures are used in a wide variety of applications,from factories, warehouses, and shops, to offices, sports facilities, and final
disposal sites. In its special-purpose buildings business, Yokogawa System
Buildings Corp. has been a pioneer in retractable roofs for swimming
pools, stadiums, etc., providing an integrated total solution for movablebuildings that includes design, installation, and maintenance. In the future,
Yokogawa System Buildings Corp. will continue striving to realize further

Engineered structure̶Factoryenhancements in the quality of its products and services, satisfying customer needs with an approach that emphasizes integrity while contributing
to society.
Company History
1989 An engineered structure division, the forerunner of todayʼs
Yokogawa System Buildings Corp., was established within
Yokogawa Bridge Works (now Yokogawa Bridge Corp.)
1990 The Sodegaura Plant (now Chiba Plant) was established.
2002 The division was spun off from Yokogawa Bridge Corp.
It began operation as a separate company under the name
Yokogawa System Buildings Corp.
2006 The facilities of the Chiba Plant were improved.
2008 The company acquire certification general appraisal certificationfrom The Building Center of Japan (BCJ).
2019 The Mobara Plant was established.

Special-purpose buildings̶Retractable roof

Yokogawa Bridge Holdings Integrated Report 2021

64

List of Group Companies

Industry-leading comprehensive capabilities that
extend from materials development, design andmanufacturing through to installation
Yokogawa NS Engineering Corp. was established as an engineering company that would combine the technology solution capabilities of Yokogawa
Bridge Holdings Corp. with the product development and production
capabilities of Sumitomo Metal Industries (now Nippon Steel Corporation).
By making full use of the operational assets of these two industry-leading companies, Yokogawa NS Engineering Corp. has been able to build
an unrivalled high-level business framework that covers everything frommaterials development to design, manufacturing and installation. Throughbridge construction and related products, steel segments for road tunnels
and other underground structures, harbor structures utilizing the jacket
method, etc., Yokogawa NS Engineering Corp. contributes to the construction of resilient infrastructure in Japan with its advanced technology
development capabilities, high productivity, and solid cost competitiveness.

Bridge businessCompany History
1977 Founded as the Engineering Division of Sumitomo Metal Industries(now Nippon Steel Corporation).
1989 Began operation in the Kashima Works as the Kashima Bridge
Girder Factory.
1999 The new Kashima Bridge Girder Factory was established in Kamisu
City, Ibaraki Prefecture.
2009 Sumitomo Metal Industriesʼ bridge business was spun off andabsorbed into Sumikin Bridge Co., Ltd.
2009 Sumikin Bridge Co., Ltd. was renamed Yokogawa Sumikin Bridge
Corp., to serve as a joint operating company for Yokogawa Bridge
Holdings Corp. and Sumitomo Metal Industries.
2019 Yokogawa Sumikin Bridge Corp. was renamed Yokogawa NS
Engineering Corp.

Bridge expertise combined with IT expertise

Structural analysis

Since its founding in 1984, Yokogawa Techno-Information Service Inc. has
focused on the development and sale of IT systems for the civil engineering and construction sector, and the provision of information processing
services. The application of information technology to the civil engineering and construction sector began in the 1970s with the adoption of CAD
systems, progressed with the introduction of construction CALS systems
in the 1990s, through to the recent adoption of CIM and i-Construction.
Yokogawa Techno-Information Service Inc. has kept pace with thesedevelopments, and has continued to evolve while striving to stay one stepahead. With a specific focus on bridges, the company has provided manyusers with a series of information systems for use in the design and manufacture of steel structures.

Using our wealth of experience and superior
technological capabilities to assist with structural
analysis
We provide high-quality services covering everything from model building
tailored to customersʼ needs, to the creation of reports. We are able toassist with structural analysis for steel bridges and also in other fields.

Steel bridge design
Underground structures̶Steel segments

Provision of a comprehensive range of services relating
to steel bridge design
Yokogawa Techno-Information Service Inc. provides a wide range of systems and services associated with steel bridge design, including preliminary
design, detailed design, and reconstruction design. These products andservices have proved very popular with architectural consultants, bridge
manufacturers, and other customers involved in bridge design.

Data Section

Aiming to use our advanced technologicalcapabilities to create bridges that satisfy local
communities and develop products to meet
diverse needs
Founded in 1935 as a shipbuilding firm, Narasaki Seisakusyo Corp. used
shipbuilding technology as a foundation for growing into a specialist manufacturer of steel bridges and machinery steel products (including steel
tubes, ship-lifting equipment, water gates, water treatment facilities, etc.),
and has expanded its business activities throughout Japan, with a focus
on Hokkaido and the Tohoku region. Going forward, Narasaki Seisakusyo
Corp. will strive to further enhance technology, safety, and quality in its
bridge business, while continuing to expand its business operations as
a leading Hokkaido-based company. In the machinery steel sector, thecompany will further refine its original products̶including ship-lifting

Water treatment and environmental products

equipment and water treatment facilities̶and will actively work to respondto diversifying needs on a nationwide basis.

Putting in place powerful support systems for all
Group companies

Company History
1935 Narasaki Shipbuilding Ltd. was founded in Tsukiji-cho, Muroran City.
1975 The Sakimori Plant began operation.
1984 The company name was changed to Narasaki Seisakusyo Co., Ltd.
1986 The companyʼs head office moved to its current location in
Sakimori-cho, Muroran City.
2003 Narasaki Seisakusyo Co., Ltd. became a subsidiary of Yokogawa
Bridge Corp.
2018 The new head office building was completed.

Yokogawa New Life Corp. provides high-quality back-office solutions for
the YBHD Group, including real estate property management, humanresource assignment, and salary calculation.

Real estate property management
Yokogawa New Life Corp. helps the YBHD Group to achieve stable earnings by playing an active role in the Groupʼs real estate strategy, in relation
to the operational management of real estate owned and leased by theGroup.

Human resources assignment
We utilize our high-level recruitment capabilities to provide human talentthroughout Japan, both within and outside the Group. To respond effectively to the rapid pace of change in todayʼs business world, we provide
powerful support for staff skill enhancement, and aim to provide companies
with human talent that matches their needs.

Salary calculation operations

Ship-lifting
equipment

Yokogawa New Life Corp. undertakes salary calculation on behalf of all
YBHD Group companies, thereby helping to reduce the burden on individual Group companies HR departments, and helping to enhance operational
efficiency by allowing them to focus on their core competencies.

Real estate management

65

Yokogawa Bridge Holdings Integrated Report 2021

Yokogawa Bridge Holdings Integrated Report 2021

66

List of Group Companies

Company Profile
Providing support for various aspects of bridge
preservation as a team that offers specialist
expertise in safeguarding bridges
YCE Corp. is a construction consultant firm for the YBHD Group. Since
its establishment in 2000, it has continued to grow steadily, and as Japanmoves away from the era of building new infrastructure to one in which thefocus will be on managing and upgrading existing infrastructure, the company is now entering a new stage of growth. Making effective use of thewide-ranging technology capabilities that we have accumulated in relation
to new bridge construction, as well as the reinforcement and renewal ofexisting bridges, we fulfill our social mission as construction consultants.

As of March 31, 2021

Inspections, surveys, and diagnostic operations
To ensure that structure maintenance is managed appropriately, we perform inspections, surveys, and diagnostics to check for abnormalities,
deterioration, damage, etc., on steel bridges, concrete bridges, tunnels,
and other highway structures. We also conduct services ranging from thirdparty damage precautions in case of accidents to emergency inspections
following earthquakes and other natural disasters.

Design, analysis and, review operations
With the goal of extending the lifespan of existing bridges and other structures, we conduct a wide range of planning and design work, from repair
and reinforcement design as well as seismic reinforcement design aimed at
improving earthquake resistance to large-scale renewal planning and preventive measure planning. We also undertake the 3D finite element analysis
and time history response analysis that this design work requires.

Company name

Yokogawa Bridge Holdings Corp.

Address

4-4-44 Shibaura, Minato-ku, Tokyo 108-0023, Japan

Established

August, 2007

Capital

9.4 billion yen

Number of employees

1,891 (consolidated)

Stock exchange listingFirst Section of the Tokyo Stock Exchange Securities Code 5911

Administrator of Shareholder Registry

Sumitomo Mitsui Trust Bank, Limited

Testing and measurement operations

Information Related to the Companyʼs Shares

Supporting the operations of Group companies
from outside Japan
Yokogawa Techno Philippines, Inc. (commonly known as YTP) began in2005 with the purpose of undertaking some of the technical work related
to the design, full-scale drawing, and structural analysis of steel bridges in
the Philippines. In January 2018, it became the Groupʼs eighth operatingcompany. Currently, YTP support the work of Group companies not only insteel bridges but also in a wide range of fields such as engineered structure
design and system development. Going forward, YTP will continue to collaborate in the Groupʼs development from outside Japan through humanresource development to cultivate many engineers based on the technologies and knowledge accumulated within the Group.

Total number of authorized shares

180,000,000

Total number of issued shares

45,564,802

Number of shareholders

7,832

As of March 31, 2021

Data Section

In order to verify planning and designs and put new technologies into practical use, we implement testing using Group facilities, and also perform
on-site load testing and other related tasks. We undertake remote monitoring using the Internet, and three-dimensional measurement using 3D
scanners, as well as utilizing audio-capable cameras to check for abnormalsounds, etc.

Major shareholders (top 10)
Shareholder

Shares (thousands)

Stake (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

4,570

11.02

Custody Bank of Japan, Ltd. (Trust Account)

3,077

7.42

Yokogawa Electric Corporation

2,234

5.39

Nippon Steel Corporation

1,987

4.79

Custody Bank of Japan, Ltd. (Trust Account 9)

783

1.89

Sumitomo Realty & Development Co., Ltd.

674

1.62

Yokogawa Bridge Holdings Employee Shareholding Association

592

1.42

Nippon Life Insurance Company

543

1.31

Custody Bank of Japan, Ltd. (Trust Account 5)

520

1.25

Mitsui Sumitomo Insurance Co., Ltd.

514

1.23

(Notes) 1. The Company, which holds 4,109,282 treasury shares, is excluded from the above major shareholders. Treasury shares (4,109,282 shares) do not include
company shares owned by the Employee Stock Ownership Plan Trust (150,900 shares) and company shares owned by the Stock Granting Trust for Officers(60,000 shares).
2. Stakes are calculated excluding treasury shares.

67

Yokogawa Bridge Holdings Integrated Report 2021

Yokogawa Bridge Holdings Integrated Report 2021

68

4-4-44 Shibaura, Minato-ku, Tokyo 108-0023, Japan
Tel: 03-3453-4111 Fax: 03-3453-4616
https://www.ybhd.co.jp/

27 Yamano-cho, Funabashi City, Chiba Prefecture 273-0026, Japan

4-4-44 Shibaura, Minato-ku, Tokyo 108-0023, Japan

Tel: 047-437-8000 Fax: 047-495-2910

Tel: 03-5442-1701 Fax: 03-5442-1702

http://www.yokogawa-bridge.co.jp/

https://www.yti.co.jp/

47-1 Yamano-cho, Funabashi City, Chiba Prefecture 273-0026, Japan

4-4-44 Shibaura, Minato-ku, Tokyo 108-0023, Japan

Tel: 047-410-3215 Fax: 047-410-3280

Tel: 03-3453-4113 Fax: 03-3453-4117

https://www.yokogawa-yess.co.jp/

https://www.ynl.jp/

16-5 Sunayama, Kamisu City, Ibaraki Prefecture 314-0255, Japan

47-1 Yamano-cho, Funabashi City, Chiba Prefecture 273-0026, Japan

Tel: 0479-46-6688 Fax: 0479-46-6684

Tel: 047-435-6535 Fax: 047-435-6538

http://www.ynse.co.jp/

http://www.yceng.co.jp/

385 Sakimori-cho, Muroran City, Hokkaido 050-8570, Japan

Unit 14C Marco Polo Ortigas Manila

Tel: 0143-59-3611 Fax: 0143-59-4688

Sapphire Road, Ortigas Center, 1600 Pasig City, Philippines

http://www.narasaki-ss.co.jp/

Tel/Fax: ＋632 958-4658
https://ytphil.com/