Financial Results Briefing for FY2023
Yokogawa Bridge Holdings Corp.

May 21, 2024

Table of Contents

1

Progress of the 6th Medium-Term Management Plan

2

Toward Enhancing Corporate Value

3

Consolidated Settlement of Accounts for FY2023

4

Business Forecast for FY2024

5Appendix

1

Progress of the 6th Medium-TermManagement Plan
Kazuhiko Takata

President and Representative Director2

Progress of the 6th Medium-Term Management Plan

Summary for FY2023 ①✓ Net sales were flat year-on-year. By segment, the Bridge Business posted a record
high, while the Engineering Business and Precision Equipment Business sawsluggish growth.

✓ Operating profit remained high. By segment, the Precision Equipment Business wassluggish, but profitability improved in the Engineering Business, mainly in theEngineered Structure System Business, and the Bridge Business showed steadyprogress in construction ordered.

✓ Net profit reached a record high due to the recording of a gain on sale ofinvestment securities.

3

Progress of the 6th Medium-Term Management Plan
Summary for FY2023 ②Bridge Business✓ While the orders for new domestic bridge construction were sluggish due to the backlog of plans,
we were able to win several large projects for both New Bridge Construction and Maintenance,
mainly in the second half of the year, and results were generally in line with our expectations.
✓ Although the orders placed for New Bridge Construction in FY2024 are expected to remain
sluggish, we will increase orders by enhancing the certainty of orders and strengthening ourresponse to maintenance work.

Engineered Structure System✓ Orders were sluggish due to the postponement or revision of capital investment plans, mainlyfor small and medium-sized factories and warehouses due to rising construction costs, but
inquiries remained steady throughout the year.
✓ We will steadily capture demand due to the return of the supply chain to the domestic market
and the 2024 problem, and will restore the business to our original growth trajectory bystrengthening efforts in stores and offices and direct sales to clients.
（10,000 ㎡）
1,100
1,000
900
800
700
600
500
400
300
200
100
0

Engineered Structure System

Warehouses
Factories
Orders area

2013

2014

2015

2016

2017

2018

2019

2020

2021

Statistical name “Statistical Survey of Construction Starts and Statistics on Building Starts”
From the title “By Structure, Use, and Size (Steel Construction)/Number of Buildings, Floor Area,” “Factories and Workshops” and “Warehouses” floor area

2022

2023

2024
Forecast4

Progress of the 6th Medium-Term Management Plan

Full-Year Forecast for FY2024✓ Net sales are expected to an increase, while operating profit is expected to decrease slightly due
to an increase in selling, general and administrative expenses and other expenses.
✓ By segment, the Bridge Business will perform well in terms of both net sales and operating profit. In
the Engineered Structure System Business, we expect an increase in sales due to the recovery oforders, but profits are expected to a decrease due to an increase in fixed costs and a lapse in theeffects of price increases.
✓ Further reduction of cross-shareholdings is planned, and a certain level of extraordinary
income is expected.
Bridge BusinessNet sales (100 million yen)

Engineering Business
Other Businesses

1,870

1,640

1,700

631

675

950

974

981

846

FY2023 Results

FY2024 Forecast

FY2024 Medium-Term Management
plan targets

5Progress of the 6th Medium-Term Management Plan

6th Medium-Term Management Plan（FY 2022〜FY 2024）FY 2022
Results

FY 2023
Results

FY 2024
ForecastFY2024
Medium-TermManagement
plan targets

Net sales

1,649

1,640

1,700

1,870

Operating profit

152

159

155

183

EPS

273

291

287

290

ROE

10.1%

9.9%

9% or higher

9% or higher

Dividend payout
ratio

31.1%

32.6%

38.3%

30% or higher(100 million yen)(100 million yen)

(yen)

6

Progress of the 6th Medium-Term Management Plan

Shareholder Returns
FY2023✓ Shareholder returns increased by changing from previous “stable dividends” to“progressive dividends.”✓ Dividend increased from 90 yen/share to 95 yen/share. Dividend payout ratio
is 32.6%.
✓ As in FY2022, 1 billion yen’s worth of treasury shares were acquired.

FY2024✓ Dividend to be increased to 110 yen/share (+15 yen vs. FY2023), with an
expected dividend payout ratio of 38.3%.
✓ Considering flexible additional returns while taking into account ROE
9585
and stock price.

11075527.5
2008.38.25

999101114

16

16

Dividend per share

2230

372025.3

Forecast7

Toward Enhancing Corporate Value

8

Toward Enhancing Corporate Value
Current Analysis and Assessment✓ ROE achieved a return on capital that exceeds the cost of shareholders’ equity (around 8%).
✓ PBR is on the verge of 1× due to the rise in the share price.
✓ PER is below the industry average. It is assumed that the reason for this is that the growthpotential has not been sufficiently evaluated by the market.
PBR

ROE
11.9%

* Referring to the most recent data andusing the CAPM, the cost ofshareholders’ equity is estimated to
be about 8%.

0.91 times
0.84 times

10.6%

10.4%

0.96 times

10.1%

0.77 times

9.9％
0.74 times

2020.32021.32022.32023.32024.32020.32021.3

Share price and market capitalization
Market capitalization
Share price
1,968 yen

2,051 yen2022.32023.3PER

TSE Prime
construction average
14.8 times

2,949 yen

1,942 yen

2,164 yen2024.311.1 times

127.2 billion yen
93.4 billion yen
93.4
billionyen
89.6 billion yen
88.4 billion yen

9.0 times

9.9 times

10.0 times

7.5 times

7.3 times

10.1 times
7.9 times

8.0 times

2020.32021.32022.32023.32024.32020.32021.32022.32023.32024.3

9Toward Enhancing Corporate Value✓ Improve PBR by working to increase ROE, control the cost of shareholders’ equity, and increase
expected growth rate.

InitiativeProgress and achievements
 Bridge Business performed better than expected. Established

Execution of the 6th Medium-Term

1 Management Plan

“Floor Slab Renewal Promotion Office” at operating companies tostrengthen support for maintenance projects (FY2023)

 Overall performance is expected to be lower than expected due tosluggish orders in Engineered Structure System business anddelayed progress in large projects in Civil Engineering businessand improvement of2 Maintenance
ROE Achieved return on capital in excess of cost of shareholders’equity, maintaining a level above the 6th Medium-Term
Management Plan target (9% or more) Introduced a progressive dividend with a minimum dividend
payout ratio of 30% (FY2023)

3 Expansion of shareholder returns

 Maintain trend of dividend increases
 Acquired 1 billion yen’s worth of treasury shares (FY2022 andFY2023)

 Established the “New Project Promotion Office” to develop

4 Challenge in new business fields

technologies and products for new projects such as offshore wind
power generation at operating companies(FY2024)1010

Toward Enhancing Corporate Value
Initiative
5 Reduction of cross-shareholdings

Progress and achievements
 Sold 5 issues for 1.9 billion yen (FY2022)
 Sold 7 issues for 3.1 billion yen (FY2023)
 Further reductions planned for FY2024
 Plans to shift to a Company with Audit and Supervisory

Enhancement of corporate

6 governance structure

Committee
 Plans to have a majority of independent outside directors
appointed

7 Utilization of intellectual property
Revision of executive compensation
8 plan and introduction of restricted
stock incentive plan for employees

Strengthening of information

9 dissemination(All of the above are to be submitted to the Annual General Meeting ofShareholders in June 2024)
Establish Integrated Risk Management Committee (FY2024)

 Establish an Intellectual Property Office to promote themanagement and utilization of intellectual property and apply it tobusiness strategies and R&D to enhance competitiveness (FY2024)

 Reflect the total shareholder return (TSR) of the Company’s

shares in executive compensation and further deepen valuesharing with shareholders through the granting of shares toemployees (FY2023)

 Revamp corporate website and enhance disclosure of IR
information, including disclosure in English (FY2024)

 Start recorded video streaming of financial results briefings(FY2024)

1111

Topics
Construction of the first steel bridge using green steel in the domestic bridge
industry✓“Fukuoka 201 Shin-Asakura Bridge (in-bound line) outside superstructure construction work”✓reduces CO2 emissions by 100% through applying the mass balance method*¹.
In addition to achieving carbon neutrality in the construction of this bridge, we will continue towork with related parties to reduce CO2 emissions.

(ordered by the Kyushu Regional Development Bureau of the Ministry of Land, Infrastructure, Transport andTourism) was the first bridge industry project in Japan to use green steel, a steel material that*¹Green steel with mass balance method applied:
Steel products that are supplied with certificates that pool the GHG or CO2 emission reductions from additionality reduction projects implemented by the steelmaker within theorganization and allocate the reductions to any component

Challenge in new business fields (Floating Offshore Wind Turbine business)✓ Yokogawa NS Engineering conducted a full-scale construction test of a large spar type floatingstructure as a NEDO Green Innovation Fund*² project, commissioned by Toda Corporation.
✓ Narasaki Seisakusyo has joined MOPA*³ to search cross-industry collaboration.
Muroran Plant

Shukuzu Plant
Japan‘s first floating offshore wind Turbine facility put topractical use in Goto City, Nagasaki Prefecture(Referenced from Toda Corporation official website)

Muroran Port*²A fund established by the New Energy and Industrial Technology Development Organization (NEDO) to provide 10 years of continuous
support to companies which committed to ambitious goals for achieving carbon neutral by 2050, from R&D and demonstration to socialimplementation.
*³Association aiming to turn Muroran Port into a base for offshore wind power generation, with a focus on local companies that wish to utilize
offshore wind power to revitalize industry in the Muroran area (in Hokkaido)

12

Photo Report

Misato Nagareyama Bridge

13

Photo ReportWEINS PARK Ebina U-BASE building

14

Photo Report

Yanagawa Transportation Co., Ltd. Chiyoda Warehouse15

Consolidated Settlement of Accountsfor FY 2023
Hidenori Miyamoto

Director and Managing Executive Officer16

Consolidated of Orders Received by segment(million yen)

FY 2022

Precision
Equipment

ChangeNew bridge Construction

68,86759,018(9,849)

Maintenance

13,227

24,856

11,629Overseas

(199)

2,369

2,569

Subtotal

81,89586,245

4,349

Engineered structure
system52,65738,411(14,245)

Civil engineering

9,412

11,6952,282

Architecture, machineryand steel structure

9,312

6,514

(2,798)Subtotal

71,382

56,621(14,761)

Precision equipment
manufacturing

2,824

2,110(713)

Information processing894

732(161)

Subtotal

3,718

2,843(875)

156,996

145,709(11,287)

BridgeEngineering

FY 2023

Total

17

Orders Received by customer (Consolidation)

FY 2022（Full year）

FY 2023（Full year）

18

Orders Received by customer (Bridge)

FY 2022（Full year）

FY 2023（Full year）

19

Summary of Consolidated Settlement of Accounts(million yen)

FY 2022

FY 2023

ChangeNet sales

164,968

164,076(892)

Operating profit

15,21815,946728

Ordinary profit

15,45215,857

404

Profit attributable toowners of parent

11,243

11,854611

20Consolidated Net Sales by segment(million yen)

FY 2022

Precision
Equipment

ChangeNew bridge Construction

57,61264,904

7,292

Maintenance

26,75927,443684

Overseas

2,646

5,063

2,416

Subtotal

87,01897,411

10,393Engineered structure
system54,593

46,903(7,689)Civil engineering

10,1798,718(1,460)Architecture, machineryand steel structure

8,161

7,510(651)

Subtotal

72,933

63,132(9,801)

Precision equipment
manufacturing

3,520

2,154

(1,366)

Information processing

867

787(80)Subtotal

4,388

2,941

(1,446)628591(36)164,968

164,076(892)

BridgeEngineering

FY 2023

Real Estate
Total21

Consolidated Business Results by segment

FY 2023(million yen)

1Q

2Q

3Q

4Q

Full
Year

Net sales

22,41023,56325,872

25,56597,41187,018Operating profit

1,349

1,587

3,310

2,568

8,816

8,954

Net sales

16,72618,012

16,24812,145

63,132

72,933Operating profit

2,539

2,554

2,464

838

8,398

6,785

Net sales

738

554

618

1,029

2,941

4,388

Operating profit

41(42)

(29)

140

109

633

Net sales

151

149

146

144

591

628

Operating profit

98989789384

368

Corporate expenses

(464)

(447)

(448)

(403)

(1,763)(1,523)

Total Operating profit

3,565

3,751

5,395

3,234

15,946

15,218BridgeEngineering
Precision
Equipment
Real EstatePreviousYear

22

Consolidated statements of income(million yen)

FY 2022

FY 2023

ChangeNet sales

164,968

164,076(892)

Gross profit

25,472

26,828

1,355

Selling, general andadministrative expenses

10,254

10,881

627

Operating profit

15,21815,946728

Non-operating income

563

487

(76)

Non-operating expenses

329

576

247

Ordinary profit

15,45215,857404

Extraordinary income

1,144

1,946

801

Extraordinary expenses

69271

202

Profit before income taxes

16,527

17,531

1,004

Profit attributable toowners of parent

11,243

11,854611
23

Consolidated balance sheets(million yen)

As atMarch 31,2023

As at
March 31,2024

Current assets

133,354

146,255

12,901

Non-current assets

61,10164,5903,488

194,456

210,846

16,389Current liabilities

50,66038,297(12,362)

Non-current liabilities

26,14344,525

18,38176,80382,822

6,018

117,653

128,023

10,370

194,456

210,846

16,389Total assets

Total liabilities
Net assets
Total liabilities and net assets

Change24

Consolidated statements of Cash flows(million yen)

FY 2022

FY 2023

ChangeCash flow from operating activities(4,350)(1,637)

2,712

Cash flow from investing activities(1,844)

(972)

872

Cash flow from financing activities

7,850

2,516

(5,334)

Effect of exchange rate change
on cash and cash equivalents

28(60)(89)

Net increase (decrease)

1,684

(154)

(1,838)Cash and cash equivalents
at beginning of period

23,45825,143

1,684Cash and cash equivalents
at end of period

25,14324,988(154)25

Net Sales / Orders Received / Backlog of Orders
Bridge(100 million yen)

Engineering

Precision Equipment

Real Estate

2,400

2,228

2,155
1,977

2,000

1,649 1,640

1,600

1,581 1,569

1,369
870

1,200

974

875

818

764

1,457

1,577

1,526
1,414

862

800

400

544

729

631

650

713

2023

2021

2022

566

632

617

552

2021

2022

2023

0
2021

2022

Net sales

2023

Orders received

Backlog of orders
26

Business Forecast for FY 2024

27

Orders Received(100 million yen)
Bridge2,400

Engineering （Engineered structure system）
Engineering （Civil engineering/Architecture, machinery and steel structure）
2,000

Precision Equipment

1,600

1,532
1,275

917

1,569

1,457
1,000

875

818
862

694

800

400

1,847
1,581

1,243

1,200

1,896

372

482

526

592

409

375

163

136

199

167

187

182

218

2018

2019

2020

2021

2022

2023

FY 2024
Forecast

0384

28

The Amount of Total Orders / Orders Received( Bridge )(100 million yen)

(kｔ)

1,400

600

Orders received
1,200

1,000

1,275

Total orders
500

1,000
917

875

800

818

400862694300

600

197

238199166147400200138
10020002018

2019

2020

2021

2022

2023

FY 2024
Forecast029

Orders Area / Orders Received(Engineered Structure system )( million ㎡ )(100 million yen)700

2

Orders received
Orders area

592
526
482

409

375

384

372

350

1

1.01

0.96
0.77

0.90

0.86

0.80

0.5902018

2019

2020

2021

2022

2023

FY 2024
Forecast

030

Net Sales(100 million yen)
2,400

BridgeEngineering （Engineered structure system）

2,000

Engineering （Civil engineering/ Architecture, machinery and steel structure）
Precision Equipment
Real Estate1,649

1,600

1,419

1,381

1,360

870
812

824

1,700

1,369

1,200

733

1,640

974

981

764

800

400

399
234

545

469

500

381

334

387

147

148

156

183

162

175

2019

2020

2021

2022

2023

FY 2024
Forecast02018

31Forecast of Consolidated Business Performance

FY 2024

Net sales(million yen)

1st half

2nd half**

81,770

164,076

78,20091,800170,000

82,306*

Operating profit

Ordinary profit
Profit attributable toowners of parent

7,316

Full year

*

8,629

*

*

15,946

7,100

8,400

*

*

7,100

8,300

15,400

*

*

*

7,477
5,855

5,600

8,379
5,999

6,100

15,500*15,857
11,854

11,700* Result of FY 2023

32

Forecast of Consolidated Business Performance(Operating Profit and Loss by Segment)(million yen)

FY 2023
ResultFY 2024
ForecastNet sales

97,411

98,100Operating profit

8,816

10,300Net sales

63,13267,500Operating profit

8,398

6,800

Net sales

2,941

3,800

Operating profit

109300Net sales

591

600

Operating profit

384

300

Corporate expenses(1,763)(2,200)Total Operating profit

15,946

15,500BridgeEngineeringPrecision
Equipment
Real Estate33

The Amount of Total DividendsNet income
Capital investment（100 million yen）

160

Total dividends(100 million yen）

48

Net income
Capital investment
Total dividends

1203680

2440

1202018

2019

2020

2021

2022

2023

FY 20240Forecast

34

Net Income/ROE

ROE
（％）

Net income（100 million yen）

150

15

Net income
ROE

6th Medium-Term Management plantargets: 9% or higher

120

1290

960

630

302018

2019

2020

2021

2022

2023

FY 2024
Forecast

035

Appendix

Consolidated Net Sales and Orders Received by Segment（100 million yen）
Results of FY2022

BridgeNet SalesEngineering

New bridge constructionMaintenanceOverseas
SubtotalEngineered structure
systemCivil engineering
Architecture, machineryand steel structure

Subtotal
Precision equipment
Info. processing

Precision Equipment

Subtotal
Real Estate
Total

BridgeOrders
Received

Engineering

New bridge construction
MaintenanceOverseas
SubtotalEngineered structure
systemCivil engineering
Architecture, machineryand steel structure

Subtotal
Precision equipment
Info. processing

Precision Equipment

Subtotal
Total

Results of FY2023 Fo r e c ast o f FY2 0 2 4576
26726870

64927450974675
291
15981545

4695001018785817590729
35
8
436
1,649
688
132
(1)
818

631
21
7
29
5
1,640590
248
23
862

675
30
8
38
6
1,700
724
250
26
1,000526

384

592

94

116115

93

65103

713
28
8
37
1,569

566
21
7
28
1,457

810
30
7
37
1,847
36