Integrated Report 2022

Building links to the futureCorporate Philosophy

Editorial Policy

Contribution to society and the public, and sound management

In fiscal 2021, we began publishing an integrated

Corporate Philosophy

report to communicate to stakeholders our efforts

Management Vision

to realize the YBHD Group’s corporate philosophy

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

of “Contribution to society and the public, andManagement Visionsound management.”

Roles of YBHD Group

Growth Strategies for Value Creation
Message from the President��������������3
History of the YBHD Group ���������������7

Going forward, we will continue to deepen our

YBHD Group Today / Our Businesses �����������9efforts and will enhance the content of the report,

Value Creation Process ��������������� 11with the hope that it helps stakeholders toManagement Resources��������������� 13

understand the YBHD Group.

Core Business (Bridges)��������������� 15
Core Business (Engineered Structure Systems) ����� 19

Roles of YBHD Group
Creating value for society and the public by building and protecting high-quality products and connecting themto future generations
● Contributing
to the improvement of regional convenience and the development of social life and logistics
through infrastructure 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 by transferring technology and knowledge through our overseas business● Consolidated
subsidiary

Financial and Non-Financial Highlights��������� 21

PeriodFiscal 2021 (April 2021 to March 2022)
Published
September 2022
Guidelines referenced

Group companies and their businesses
EquitymethodaffiliateGroupmanagement

BridgeBusiness

Precision
Engineering
Real Estate
Equipment
Business
Business
Business●●

International Integrated Reporting Council (IIRC)●“International Integrated Reporting Framework”

New Medium-Term Management Plan
Sixth Medium-Term Management Plan
—Moving to the Next Phase of Growth—�������� 23
Business Strategy (Bridge Business)���������� 27
Business Strategy (Engineering Business) ������� 31
Business Strategy (Precision Equipment Business) ���� 37
Business Base Strategies��������������� 39

Foundation of Value Creation

Japan’s Ministry of Economy, Trade and Industry

Toward the Realization of a Sustainable Society

Guidance for Integrated Corporate Disclosure and—The YBHD Group’s ESG Initiatives—������������ 43●Yokogawa Bridge Holdingsー

Yokogawa Bridge〇

Yokogawa System Buildings〇●

Company-Investor Dialogues for Collaborative Value

List of Materiality Items and KPIs ����������� 45

Yokogawa NS Engineering

〇

●

●

Creation (Guidance for Collaborative Value Creation)

Narasaki Seisakusyo

〇

●

●

Global Reporting Initiative

Complying with TCFD Recommendations—Toward the Realization of a Decarbonized Society—�� 47

Yokogawa Techno-Information Service〇〇

GRI Global Standards for Sustainability Reporting

Environmental Initiatives��������������� 51

Yokogawa New Life
YCE

●

●

●

●

●
●
〇

●

ー

●

Corporate Governance���������������� 57

The YBHD Group’s initiatives, focusing on the Group’s

Compliance�������������������� 63

financial and ESG information

Risk Management������������������ 65

Inquiries about the report

Data Section

General Affairs Department, Yokogawa Bridge Holdings Corp.

Financial Information����������������� 67

Tel: +81-3-3453-4111

Location Information����������������� 73

Email: contact@ybhd.co.jp

List of Group Companies��������������� 74

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

WebsiteCompany Profile and Information Related to
the Company’s Shares ��������������� 78

Precision equipment
manufacturing business

Production of high-precision frames for manufacturing equipment for LCD panels,
OLED panels, and semiconductors

please visit the website of●Software development

http://www.en.ybhd.co.jp/●

Leasing some real estate owned as logistics warehouses, etc.

ー●Segment structure
BridgeBusinessEngineering
Business

Precision
Equipment
Business

Social Initiatives������������������� 52

Scope

Yokogawa Techno Philippines, Inc.

New bridge construction
business●

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

Maintenance business●

Maintenance and repair of existing bridges

Overseas business●

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

Engineered structure
system business●

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

Civil engineeringbusiness

Design and manufacture of tunnel segments● Design and manufacture of offshore and port structures●●

Information processing
business

Real EstateBusiness

1

C o n t e n t s

Yokogawa Bridge Holdings Integrated Report 2022

● 

For more information,
Yokogawa Bridge Holdings Corp.

Yokogawa Bridge Holdings Integrated Report 2022

2

Message fromthe President

We will build a management foundation that is resilient toGrowth Strategies for Value Creation

changes in the business environment and accelerate ourgrowth strategy that focuses on both people and technology
to translate ESG initiatives into sustainable growth.
Kazuhiko Takata

President and Representative Director
Yokogawa Bridge Holdings Corp.

Aims of the Sixth Medium-Term
Management Plan
We are sowing the seeds and nurturing the buds forthe future as we strive for sustainable growth.
The YBHD Group is responsible for the development ofvarious kinds of infrastructure that form the basis of
economic activities and human life. Since its
establishment 115 years ago in 1907, the YBHD Grouphas been fulfilling its mission based on its solid
technological capabilities under the corporate
philosophy of “Contribution to society and the public,
and sound management.”
Over this long period of time, however, the businessenvironment surrounding the Group has continued tochange significantly, and in recent years, the changes
seem to have become particularly intense. In order toadapt to these changes in the environment and toachieve sustainable growth for the YBHD Group far into
the future, even 200 years after its founding, we haveestablished a long-term vision that covers all Group
companies. Our overarching policy is to support Group
performance by reinforcing our solid bridge businesswhile expanding our engineering business and continuing
to aggressively take on challenges in new fields.
Backcasting from this long-term vision, the Sixth
Medium-Term Management Plan (“Sixth Plan”), whichstarted in fiscal 2022, outlines our growth strategy for the
next three years and the strengthening of our current
management foundation.
The three-year period of the Sixth Plan is a time to lay
the foundation for the realization of the four points in the
YBHD Group’s management vision and to simultaneously

3

Yokogawa Bridge Holdings Integrated Report 2022

work on strengthening the bridge business and expanding
the engineering business in line with our long-term vision.
We will also look to create new businesses that anticipate
future market trends and develop a managementfoundation that can respond to an ever-changing
business environment. We have purposely designated the
Sixth Plan as a period of foundation building because webelieve that while drawing a roadmap for continuous
growth toward the distant goal of our 200th anniversary,
we must have a period during which to plant the seeds of
new business creation and nurture their buds. Eachmeasure in the Sixth Plan is designed with a medium- tolong-term perspective and with the goal of the upcoming
Seventh Medium-Term Management Plan in mind, andwe are determined to make this period of foundationbuilding meaningful so that we can make further progress
as we move from the Fifth to the Sixth and from the Sixth
to the Seventh Medium-Term Management Plans. In orderto share a common direction with each and every
employee toward our goals, we have set the slogan for
the Sixth Plan as “Moving to the Next Phase of Growth.” I
hope that everyone who works for the Group will take thisslogan to heart and never be satisfied with where they aretoday, but will continue to tirelessly take on new
challenges.

Summary and Results of the Fifth
Medium-Term Management Plan
Although different from how we had envisioned it, weachieved our goals by and large.
While we slightly missed our sales targets under theFifth Medium-Term Management Plan ended in fiscal

2021, we achieved our profit targets, especially in fiscal
2020 and fiscal 2021, when we exceeded the targets
for two consecutive years despite suffering from the
COVID-19 pandemic. The initial plan was to grow theengineered structure system business significantly,
developing it into a driver of growth for the entire
Group, but among all our businesses, it did not growas expected, partly because of the impact of the
COVID-19 pandemic on customers’ capital investment.
However, this was offset by the strong performance ofthe bridge business, which was a major factor inachieving our targets. Although slightly different fromthe vision of growth in the engineered structure systembusiness that we had imagined when we first
formulated the Fifth Plan, I believe that we achieved asatisfactory result.

Technology Innovation in the Environmental
Field as a Driver of Growth
We will contribute to a decarbonized society byactively promoting technological development thathelps to solve environmental issues.
In December 2021, the YBHD Group announced its
endorsement of the Task Force on Climate-related
Financial Disclosure (TCFD) recommendations andpublicly proclaimed both internally and externally that it
will appropriately disclose climate-related financial
information. The infrastructure development for which
the Group is responsible has always been closely
related to weather and natural disasters. Especially inrecent years, the demand for infrastructure that cancope with climate change, such as disaster prevention,

disaster mitigation, and carbon neutrality, has been
expanding, making it increasingly important for us to
support the TCFD recommendations, including in terms
o f b u s i n e s s c o n t i n u i t y. I n c o n j u n c t i o n w i t h t h e
declaration of support, we first laid the foundation for
our TCFD compliance by organizing and disclosing ourgovernance and risk management systems, and thenconducted a simple scenario analysis to identify climatechange-related risks and opportunities for the Group,
followed by an impact analysis. We will continue toclosely monitor the rapidly changing global situation
related to climate change and enhance the content ofour disclosures in line with TCFD recommendations.
I believe that this was an appropriate response to thecurrent situation, as companies listed on the Prime
Market, which the Group selected in conjunction withthe reorganization of the Tokyo Stock Exchange market
in April 2022, are strongly urged to disclose climaterelated financial information based on the TCFD
recommendations. On the other hand, I believe thatsolving climate change and other environmental
problems is something companies must universallycommit to; it is something that is essential for the
YBHD Group to continue its business as a member ofsociety and for us to continue on our main path.
The worldwide goal to avoid the risk of climate change
is to achieve a “decarbonized society,” that is, to achievecarbon neutrality. In the Environmental Initiatives sectionof the Sixth Plan, the YBHD Group has set, as specifictargets, reducing CO2 emissions (Scopes 1 and 2) fromits business activities by 20% by fiscal 2024 and 50%
by fiscal 2030 compared with fiscal 2020 and achieving

Yokogawa Bridge Holdings Integrated Report 2022

4

Message from the President

People: The Most Important Factor in
Running a Company
We are focusing on training workers, ensuring healthand safety, and promoting diversity.
At the YBHD Group, we are proud to say that people
and technology have been the two wheels upon which
the Group has grown since its founding. Sparing no
expense in investing in people and securing exceptional
human talent are indispensable elements for the Group’s
sustainable growth. It is no exaggeration to say that forcompanies like the YBHD Group, which wins public
works projects through bidding, the amount of work it
can get depends on the number of people it has withoutstanding skills. It is not enough just to have the rightpeople; many skills can only be acquired through timeconsuming education and a lot of experience, so it isnecessary to develop human talent in a well-planned
manner. The key to the “expansion of the engineered
structure system business,” which is a goal of the Sixth
Plan, is naturally human talent. I believe that the mostimportant thing in running a company is its people.

5

Yokogawa Bridge Holdings Integrated Report 2022

In a business such as ours, where we are engaged ina variety of manufacturing activities at construction sites
and factories, ensuring the safety of workers is of theutmost importance, and we always place the highest
priority on eliminating accidents. We will continue to
implement measures to physically ensure safety, such as
thorough routine safety measures and improved
scaffolding, while at the same time focusing on DX forsafety, which can prevent human error with the help ofdigital technology. The general idea of DX (digitaltransformation) is to use digital technology to transformbusiness structures in order to increase sales and sales
volume, but in the case of the YBHD Group, we also
want to use the power of digital technology to improve
human safety. As the health of workers is very importantto prevent human error, I would like to promote healthmanagement and focus on initiatives related to themental and physical health of employees and theimprovement of the workplace environment.
The human resource strategy in our Sixth Plan is tostrengthen the Group’s competitiveness by having humantalent with diverse values play an active role. In Japan, thedecline in the working population due to the falling birth rate
and aging population has already become a social issue.
The utilization of foreign employees is an urgent issue for
the Group in order to confront this issue. The YBHD Group
has an overseas subsidiary in the Philippines, Yokogawa
Techno Philippines, Inc., an engineering company that
employs about 200 local engineers. Plans are currently
underway to select some of these 200 engineers to workat our Group companies in Japan. Until recently, COVID-19
has made it difficult for local recruits in other countries tocome to Japan, but now that restrictions on travel fromabroad are finally being eased, I believe that our plans willproceed smoothly. I expect that by creating a system thatenables people who have dreams of working in Japan tosucceed here, the diversity of the YBHD Group will beenriched as a result, and the unique values that eachindividual brings will strengthen the competitiveness of theGroup as a whole.

Building a Highly Resilient Management
Foundation
We are strengthening risk management to respond to
new risks and changes in the environment.
One of the basic policies of our Sixth Plan is to“establish a strong management foundation that looks
ahead 100 years.” We will actively promote ESGfocused management, building a highly resilient
management foundation that can flexibly respond tochanging social conditions in order to fulfill our social
responsibilities.
In governance, we plan to implement a variety ofmeasures, but first and foremost, as a Prime Marketlisted company, we will build a strong governancesystem that complies with our revised Corporate
Governance Code, such as by conducting effectivenessevaluations of the Board of Directors and enhancing
cooperation with outside corporate officers. Something
we intend to place particular emphasis on is thebolstering of risk management, including information
security measures.
In the past few years, the business environment
surrounding the Group ha s been changing a t an
unp re c e d e n t e dl y f ur i o u s p a c e a n d h a s b e c o m ecomplicated by risks that cannot be predicted in advance,such as infectious disease outbreaks, sharp exchange
rate fluctuations, and increasing geopolitical risks,
including conflicts. In order to continue proper corporate
operations under these circumstances, I believe thathighly resilient management is necessary to overcome
any risks that may arise at any time, no matter how great
the social changes may be. “Resilience” has various
shades of meaning, such as adaptability, toughness,
suppleness, and the ability to recover or spring back. I
am particularly concerned with the meaning of the ability
to recover or spring back from a crisis. Various risks will
eventually go away over time. If you ask me what would
be needed to get our business back on track when acrisis is over, and the situation is about to change again, I
would answer without hesitation, “solid technology tokeep the business going.” If you have solid technology,
you can make it the core of your business when you aim
to make a leap forward during the recovery, and it also
increases the likelihood of the innovations needed for new
business. Therefore, in terms of risk management, I
believe that having solid technological capabilities isdeeply linked to highly resilient management. I believe thatthe reason the YBHD Group has remained a leader in thebridge industry for more than 100 years is that we
possess solid technological capabilities based on steel
structure technology and have continuously improved ourtechnological capabilities.
This solid technology includes not only on-site
technology in the bridge business and the engineereds t r u c t u re s y s t e m b u s i n e s s , b u t a l s o t h e d i g i t a ltechnology required for DX. Under our Sixth Plan, weare planning to invest 7 billion yen, or more than onethird of the total 18 billion yen in investments planned
for the entire medium-term management plan, in DX

and IT-related areas. I already mentioned that we will be
adopting DX for occupational safety, but we also plan
to focus on other areas, such as ICT enhancements toincrease productivity, strengthening core systems
related to finance, and enhancing information security.
In particular, we would like to make our information
security even more robust in light of the current climateof heightened vigilance on a global scale.
As a growth strategy in our Sixth Plan, we believethat without the realization of DX, it will be difficult toachieve our goals themselves. Thus, there is an urgent
need to develop digitally literate human resources who
can take charge of the DX strategy. In order to raise thelevel of digital literacy throughout the company, we plan
to first provide DX training to managers and careertrack employees, and then select about 50 of them
who are considered to have particularly high literacy tofurther develop their specialized skills.

Growth Strategies for Value Creationc a r b o n n e u t r a l i t y b y f i s c a l 2 0 5 0 . A s shor t-term
measures, we will increase our purchases of electricity
derived from renewable energy sources and promote
the installation of solar panels for private consumption
on the roofs of buildings at our business sites. As for theY B H D G ro u p ’s p a t h t o c a r b o n n e u t r a l i t y, w h i l emeasures to reduce CO 2 emissions from businessactivities can be taken by the Group on its own,
reduction of CO2 emissions related to the production
and transportation of raw materials (Scope 3) requires
efforts to become carbon neutral from the level ofmaterials purchased. Therefore, we would like toexplore collaboration with various partner companies
throughout the supply chain.
In addition, the YBHD Group has identified materiality(key issues) and established new key performanceindicators (KPIs) for the environment, society, andgovernance (ESG). We will advance the creation of a
resilient social environment while minimizing all impacts
on the natural environment, including not only climatechange but also waste reduction and water
conservation. Furthermore, we plan to actively promote
the development of technologies that help to solve
environmental issues, such as offshore wind power
generation and more efficient water treatment facilities,
and to use these technological innovations as a driving
force for future growth.

To Stakeholders
We will translate ESG initiatives into sustainablegrowth for the YBHD Group.
The YBHD Group has always provided a variety ofsocial and economic value to its stakeholders and local
communities. In order for the Group to continue to beneeded by society and to achieve sustainable growth,a l l e m p l o y e e s m u s t re a ff i r m t h e s i g n i f i c a n c e o fsustainable management and translate ESG initiatives
into sustainable growth for the YBHD Group. We aredetermined to operate openly, listen to everyone’s
voice, and never shut ourselves away inwardly when
faced with rapid changes in the business environment.
And we will keep doing our part to help solve social
issues by making steady progress based on our two
wheels of people and technology.

Yokogawa Bridge Holdings Integrated Report 2022

6

History of the YBHD Group
1907

1960

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

An era of rapid growth
Yokogawa builds skyscrapers

1990

2000

2010

Linking Japan’stransportation arteries

Advanced technology

Linking and connecting
large spaces
Growth Strategies for Value Creation

1907
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 kindin Japan to be built using welding
reinforcement

1940

1968

On the Kachidoki Bridge, the45.7-meter central spans opened toallow ships to pass.

As a trailblazing manufacturer of steel
structures, the company provided
the structural framework for the
Kasumigaseki Mitsui Building(now the Kasumigaseki Building),
Japan’s first skyscraper.

1913
The Yatsuyama Bridge, then thelargest overpass bridge ever built in
Japan

1993

2001

2011

A new Tokyo landmark: The Rainbow Bridge

Toyota Stadium, which was built using Yokogawa
System Buildings Corporation’s YMA moveablebuilding system

Spacious, beautiful, and comfortable – the new,completely transformed Osaka Station

1937
The upper truss of the Yu River
Bridge in Datong, China. This was
the first time the company had
undertaken reconstruction work on a
bridge that had been destroyed.

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

1998

1970
World Trade Center Building (Tokyo)
Also in 1970: Keio Plaza Hotel

The world’s longest suspension bridge: the Akashi
Kaikyo Bridge

2016
2003
The Rokujizo section of the Kyoto Municipal
Subway Tozai Line used composite segments
supplied by Yokogawa NS Engineering Corp.

An engineered structure carefully tailored to suit
its purpose and usage – Nasu no Megumi Mekke!

1928
Manseibashi Overpass, Japan’s first
curved railway bridge

1938
The company was responsible for
producing the steel frame used in the
Dai-Ichi Life Insurance head office

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

building, which was the most imposing
building of its kind in Japan at the time.
In the immediate post-war period, theGeneral Headquarters (GHQ) of theSupreme Commander for the AlliedPowers (SCAP) was located in thisbuilding.

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

1999
The world’s first triple suspension bridge, consisting

2018of three long successive suspension bridges:
Kurushima Kaikyo Bridge

Japan’s largest solid-rib arch bridge: Tenjo Bridge

2009
Stonecutters Bridge in Hong Kong, the world’s
largest composite cable-stayed bridge

1907 Dr. Tamisuke Yokogawa founded Yokogawa Bridge Works in Nishi-ku, Osaka City.

1991
1963 Yokogawa Construction Co., Ltd. was founded.

2007 Yokogawa Bridge Holdings Corp. was founded.
2015 Yokogawa Construction Co., Ltd. was merged into Yokogawa
Yokogawa Bridge Works Ltd. was renamed Yokogawa Bridge Corp.
Bridge Corp. (with Yokogawa Bridge Corp. as the surviving company).
2001 Yokogawa System Buildings Corp. was founded.
2003 Yokogawa acquired a controlling share in Narasaki Seisakusyo Co., Ltd., which became a Group company.
2009 Yokogawa acquired a controlling share in Yokogawa Sumikin Bridge Corp., which became a Group company.
2019 Yokogawa Sumikin Bridge Corp. was renamed
Yokogawa NS Engineering Corp.

1984
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.

7

Yokogawa Bridge Holdings Integrated Report 2022

1991

Yokogawa Techno-Information Service Inc. was founded.
Yokogawa New Life Corp. was founded.
2000 YCE Corp. was founded.
Yokogawa Bridge Holdings Integrated Report 2022

8

YBHD Group Today
From 2020

Expanding into the future
Growth Strategies for Value Creation

Intersection of the Tomei and Shin-Tomei,
Japan’s main arteries
2021 Shin-Tomei Expressway, Gotemba JCT
The YBHD Group will continue to actively pursue technological innovation and businessexpansion as a comprehensive steel structure company, aiming to create a social
infrastructure that people can use with safety, comfort, and peace of mind.

Our Businesses

As a leading company in the bridge industry, we are constantly engaged in the development of cutting-edge technologies and have been involved in the construction ofmany of Japan’s leading bridges. In response to the aging of existing facilities and the need to develop infrastructure that is resilient to natural disasters, we haveestablished a total maintenance business system that covers everything from inspections and surveys to design, manufacture, and on-site construction in maintenanceand repair work, thus contributing to the maintenance of safe and high-quality social infrastructure along with new bridge construction.

Net sales and orders received (FY2021)

Real Estate Business
600 million yen

Precision Equpment
Business
5.4 billion yen

Engineering
Business
Civil engineeringbusiness / Construction
and machinery steelbusiness

Precision
BridgeEquipment
Business
Business
76.4 billion yen 5.5 billion yen

Net sales

Consolidated
YoY

136.9
Up

Yokogawa Bridge Holdings Integrated Report 2022

BridgeBusiness
87.5 billion yen

Order balancebillion yen

0.6%

Engineering
Business
Civil engineeringbusiness / Construction
and machinery steelbusiness

15.6 billion yen

9

We promote social infrastructure development with our comprehensive technicalproposal capabilities, covering the entire process from design to manufacture,erection, repair and reinforcement, rebuilding, and renewal.

Bridge Business

158.1
YoY

Down

billion yen

16.6%

16.7 billion yen
Engineering
BusinessEngineering
BusinessEngineered structure
system businessEngineered structure
system business38.7 billion yen

48.2 billion yen

Engineering Business Engineered structure system businessIn the market for low-rise, large-space buildings such as factories, warehouses,
and sports facilities, our “yess buildings” are high-quality products that can beproduced quickly and at low cost and have taken the leading position in thesystem buildings industry.

Our “yess” buildings, which utilize Yokogawa’s proprietary steel structural technology, are engineered structures with first-rate design and flexibility. They range frombuildings with standard dimensional specifications to highly flexible custom-made specifications, depending on the purpose and use. With high quality, low cost, andquick delivery, our engineered structure system business has steadily increased its share in the industry and continues to grow as our second core business after thebridge business.

Engineering Business C ivil engineering business /Construction and machinery steel business

Applying advanced technology and expertise developed in the bridge business,
we are developing our civil engineering business, construction business, special
structures business, and machinery steel business.

Our civil engineering business focuses on port and offshore structures for earthquake and tsunami protection, and the steel segment business addresses the utilizationof underground space, such as major urban ring roads. In our special structures business, we are engaged in integrated design, construction, and maintenance services
related to “movable buildings,” such as retractable roofs for swimming pools and stadiums. We are also active in a variety of other fields related to the construction
business, such as work on steel frameworks for high-rise buildings, etc., the construction of stadiums, and producing steel machinery for water gates (floodgates) andship-lifting equipment.

Precision Equipment BusinessWe are entering higher-value-added fields by leveraging the advanced design,
structural analysis, and metal fabrication technologies we have cultivated inbridge manufacture.

In the precision equipment manufacturing business, we provide a stable supply of high-precision products with excellent cost performance for use in the production of
precision machinery manufacturing equipment for semiconductors, LCD panels, etc., through our integrated production management system from structural frame
design to manufacturing. In the information processing business, our products, such as APOLLO, which is a total system for steel bridge design, and the CA* (Caster)series manufacturing simulation system, have gained the top share in the steel bridge industry.

Yokogawa Bridge Holdings Integrated Report 2022

10

For 115 years since its establishment, the YBHD Group has contributed to society through social

Value Creation Process

infrastructure development and technological innovation. By further bolstering the Group’s strengths, wewill take on the challenge of creating new value adapted to the drastically changing social environment.

Corporate
Philosophy
P13-14

Outputs

P1

Human capital*

Outcomes

Growth Strategies for Value Creation

InputsContribution to society
and the public,
and sound management

Stakeholders

1,962
Qualified personnel 1,226
Employees

Bridges in Japan* Including equity method affiliates.

Shareholders and investors
Customers
Business partners

Business
environment
Social change

Employees

Intellectual capitalPartner companies

177
400

Patents
R&D spending

Bridges outside Japan

million yen● Declining birth rate andaging population● Digitization● W orkstyle and lifestylechanges

Social issues● Infectious disease

outbreaks● Climate change● Increasing natural
disasters● Aging infrastructure● Decarbonized society

Industry issues● Shortage of workers● Work-life balance

Economic value provided
Manufacturing Capital

Production bases
7
Production capacity of the main plant
Osaka Plant 60,000 t/year
Chiba / Mobara plants 90,000 t/year

Business Strategy

158.1

Order value

billion yen

Distributors

Over

1,300

Engineering Business

Stockholders’ equity 103.3
billion yen

Interest-bearing debt

Engineering Business

Civil engineering business / Construction
and machinery steel business
P33-36

Precision Equipment
Business

Financial capital

9.4

Bridge attachments

Growth Strategy

P37-38

Management
visionSixth Medium-Term
Management Plan:
Moving to the Stageof Further Growth● Net income● Earnings per share● Equity ratio

Engineered structures

Power consumption

25.56

P67-72136.9 billion yen
14.7 billion yen
14.9 billion yen
11.0 billion yen
267.54 yen
62.5%
28.0%

Social value provided

Realization of• long-term protection ofbridges•m ultifaceted steel structureengineering•c reation of a resilient social
environment andharmonious coexistencewith the natural environment•c onstruction of a robust
operational foundation
as well as the pursuit ofsustained expansion

onment / Society /(key issues) / Envir
Materiality
P51
P52-56
P44-46● Payout ratio

P21-22

P23-26

P1

Underground tunnels● Contribution to society through thedevelopment of social infrastructure, etc.

● Greater customer satisfaction● Support for employee skill

development● Accumulation of technical capabilities

and know-how

Construction● Revitalization of local economies

through employment● Consideration for the global

environment

billion yen

Natural capital● Operating profit● Ordinary profit

P27-30

P31-32Social capital● Net sales

Bridge BusinessEngineered structure system business● Prevention ofoccupational accident

Local communities

GovernanceP57-66

SDGs
Special-purpose buildings

million kWh

Steel consumption 128,000
tons

Machinery steel

Roles of YBHD GroupP1

Information processing

Reinvestment in capital
11

Yokogawa Bridge Holdings Integrated Report 2022

Yokogawa Bridge Holdings Integrated Report 2022

12

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

1,962*
Qualified personnel 1,226
Employees group-wide

attend training sessions and seminars, including thoseneeded to obtain related qualifications. The expertise ofeach and every employee, deepened in this way, is thesource of the Group’s high technical capabilities.
As of March 31, 2022

Qualified personnel

* Including equity method affiliates.

For the YBHD Group to achieve sustainable growth, it
is essential to improve the technical capabilities of
employees – our human talent. Orders for public works
projects, in particular, require experienced, qualified
personnel, so we need a large number of highly
specialized engineers. In order to support and promoteautonomous career development, the Group has a selfreporting system in which employees meet with theperson in charge of their department to talk abouttransfer or skill development desires. We use thissystem to conduct job rotations and appropriate
personnel assignments according to aptitude. We also
actively provide support for employees who need toIntellectual capital177
R&D spending 400 million yen
Patents held

The YBHD Group has built many pioneering buildingsof various types. The Saikai Bridge, which we worked
on in 1955, was Japan’s first large and long fixed-archbridge. The Kasumigaseki Mitsui Building (now theKasumigaseki Building), which we built in 1968, wasJapan’s first skyscraper. In addition, as a leading bridgecompany, we have taken on the challenge of building
other Japan-first and even world-first bridges, such as
Kurushima Kaikyo Bridge, which is the world’s first
triple suspension bridge, and Akashi Kaikyo Bridge,
which boasted the world’s longest span at the time it
was built.
To f u r t h e r e n h a n c e t h e t e c h n i c a l c a p a b i l i t i e s
accumulated through such abundant achievements
and experience, our Technical Research Laboratory
and operating companies work together, and we focus
on R&D through joint research with universities andresearch institutes.

Persons

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

Production bases
Production capacity of the main plant

The YBHD Group has its own production bases, such aslarge plants that manufacture bridge parts, where
employees and skilled production department craftsmen
fabricate and assemble parts.
The Osaka Plant, which is our main plant, is locatedin the Sakai Senboku Coastal Industrial Zone. As aplant with state-of-the-art equipment, it is responsible

for the production of various large steel structures.
In the engineering business, we operate the industry’s
only plants dedicated to engineered structures (Chiba
Plant and Mobara Plant) at full capacity to further
increase our market share in the field of engineered
structures. → See P73 for information on our bases.

expansion in collaboration with more than 1,300 affiliatedbuilders nationwide.

Professional engineers

157

First-class architects

38

First-class civil engineering management
engineers

756

Social capitalFirst-class architectural construction
management engineers

127

Order value in FY2021

First-Class Construction Accountant

20

Second-Class Construction Accountant

128
1,226

Total

→ See P54-56 for our human resources initiatives.

As of March 31, 2022

Joint research achievements
PeriodParticipants

Research topic

Nov. 2012– Mar. 2019

Nippon Steel, Yokogawa Bridge
Holdings, Yokogawa NS Engineering

Research on expansion devices used forbridges and other structures

Dec. 2013– Mar. 2016

Yokogawa Bridge, Metropolitan
Expressway, Kawada Industries,
Kawada Construction

Research on rapid construction updating
techniques for existing RC slabs

Dec. 2014– Mar. 2017

Hanshin Expressway, Hanshin
Expressway Technology Center, YCE,
Yokogawa Bridge

Joint research on structural improvementof closed cross-section ribbed 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 ofsteel 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 with bridge
collapse prevention function

Apr. 2017– Mar. 2021

Yokogawa Bridge, Oxjack

Development of earthquake-resistantequipment (grippers) in the 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

Apr. 2019– Mar. 2021

Yokogawa Bridge, Nikkei Engineering,
Yokogawa Bridge Holdings

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

Apr. 2019– Mar. 2022

Yokogawa Bridge, Nikkei Engineering,
Yokogawa Bridge Holdings

Research on a reverse-side soundabsorption feature for “cusa” aluminumalloy permanent scaffolding

Sep. 2020– Mar. 2021

Yokogawa Bridge, Osaka Prefecture
University

Development of damping assessment
method for highly damped structures

Apr. 2011– Mar. 2022

Yokogawa Bridge, Osaka Prefecture
University

Development of highly damped structures

158.1 billion yen
Distributors nationwide Over 1,300(Engineered structures affiliated builders)

In the bridge business, we have received orders for
new construction, maintenance work, and overseas
construction from various clients such as the Ministry ofLand, Infrastructure, Transport and Tourism (MLIT),
local governments, highway companies, and privatecompanies, based on the relationships of trust we havecultivated up to the present.
In the engineered structure system business, we aref ocusing on cus tomer de v elopment and mark e t

Financial capital As of March 31, 2022

103.3 billion yen
Interest-bearing debt 9.4 billion yen

Stockholders’ equity

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

Natural capital

As of March 31, 2022

25.56 million kWh
Steel consumption 128,000 tons

Power consumption

Osaka Plant

Growth Strategies for Value Creation

Human capital

Manufacturing capital

Breakdown of consolidated orders received
Overseas 0.1%

Private companies
53.6%

Railway-related 1.1%

Ministry of Land,
Infrastructure,
Transport andTourism 10.3%
Local governments
5.2%

Highway companies
29.7%
Other national institutions
0.0%

maintaining a balance between financial trustworthinessand 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 through free cash flow and indirect
procurement, and financial stability and liquidity aresupplemented by commitment line agreements.
→ See P67-72 for financial information.

The YBHD Group strives to use resources efficiently by
quantitatively ascertaining and scrutinizing resourceand 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 renewableenergy and the development of environmentally friendly
products and construction methods.
→ See P51 for our environmental initiatives.

→ See P40 for our R&D initiatives.

13

Yokogawa Bridge Holdings Integrated Report 2022

Yokogawa Bridge Holdings Integrated Report 2022

14

Core Business

Bridge blocks painted in the plant are transported to the construction site.

Bridges

Building Strong Bridges Bridge Building Process
its comprehensive technical and management capabilities in all processes of bridge design, production, and construction.

Order

Design

Mfg.

Mfg.

Mfg.

Mfg.

Mfg.

Arrangingmaterials

Cutting /Machining

Welding /Assembly

Temporaryassembly

Painting

Transportation

Growth Strategies for Value Creation

The YBHD Group accurately meets diverse requests and contributes to the development of social infrastructure by exercising

After temporary assembly, the blocks are
dismantled and painted. Some bridges use
weather-resistant steel materials that do
not require painting.
Assembled blocks are then fully or partiallyassembled temporarily into the bridge’s
finished shape to check that there are noerrors in shape and dimensions, thus
making sure that there will be no problems

After creating comparative designs

in on-site construction. There are two kinds

to select the form of the bridgeof temporary assembly: actual temporary

most suited to the road plan andassembly, in which the blocks are actuallyconditions, a detailed design isassembled, and simulated temporary

made, including the creation ofassembly using a computer-based 3D

detailed drawings. In addition, ameasurement system.

design review is conducted toverify the validity of the design.

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

The procured steel plate is cut into thedesigned 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 methodof joining the blocks that make up a bridge.
For this reason, bolt holes are drilled at the

Individual steel plates thathave been machined, sucha s b y d r i l l i n g h o l e s , a reassembled by welding toc re a t e t h e s h a p e o f t h e
blocks that will make up
the finished bridge.

joints of the cut steel plates.

15

Yokogawa Bridge Holdings Integrated Report 2022

Yokogawa Bridge Holdings Integrated Report 2022

16

Core Business

Bridges

Temporaryfacilities

Groundassembly

Girderconstruction

Const.

Const.

Deck

Painting

Completion

Growth Strategies for Value Creation

Construction site experts gather to build the bridge with great care for safety.
Depending on the type of bridge, topography, environment, and other conditions onsite, the way the bridge is supported during construction and the block transportationequipment will change. Moreover, there are about 20 methods to erect bridges. In
order to stick to the schedule for completion while ensuring safety as the top priority,
it is necessary to respond quickly to daily changes in circumstances. Every timesomeone has a question, no matter how small, we stop the work and check anddiscuss it as many times as needed until everyone is satisfied.

Const.

Erection

Building Strong Bridges Bridge Building Process

Individual blocks are assembled on the groundor on temporary facilities into a size suitable forerection. The blocks are joined by welding and

The joints between the blocks are painted.

bolting.

Temporary facilities are set up to support the

A deck is built on top of the erected

bridge during construction. The temporary
facilities are dismantled after all erection work
is completed.

17

Yokogawa Bridge Holdings Integrated Report 2022

Photo provided by East Nippon Expressway Company Limited.

steel girders so that vehicles can travel

Once completed, the bridge will provide a route over which people, goods, hearts,

Using cranes, etc., the assembled blocks are lifted into

on it. The material is mainly reinforced

place one by one in the order in which they are to be

concrete, but there are also steel decks

and cultures pass. It will continue to support safe and secure lives by connecting

installed and built into a bridge.

manufactured from steel plate in plants.

people and communities.
Yokogawa Bridge Holdings Integrated Report 2022

18

Core BusinessEngineered Structure Systems

South Regional Final Disposal Plant Chura Green Nanjo

Ichinomiya Logistics Center, Mylogi Co., Ltd.

Niigata Plant, Chiyoda Shoes Co., Ltd.

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

Building Large Spaces Factory and Warehouse Building Process
spaces that are manufactured and constructed by applying Yokogawa’s own structural specifications to the engineering ofengineered structures. This enables the construction of high-quality buildings, mainly plants and warehouses, with shortdelivery times at low cost by standardizing parts such as beams, pillars, roofs, exterior walls, fittings, etc.

ClientAffiliated builder

Yokogawa System Buildings

Everything from estimates to construction

Design and production(contact point)(manufacturer)

In addition to direct sales activities,
we are developing this business by leveraging our network of more than 1,300 affiliated builders nationwide.
What are “yess” building sales and construction partners (affiliated builders)?
Affiliated builders nationwide serve as direct contacts for clients, and the YBHD Group’s Yokogawa System Buildings support
the builders. To facilitate clients’ business expansion and ensure that their capital investment goes smoothly, we provide
support together with affiliated builders, from consultation to construction and maintenance.

T h e d e s i g n a n d p ro d u c t i o n s y s t e m f o r “ y e s s ”
buildings is based on the steel bridge structuretechnology we have cultivated in the bridge business.
T h i s i s a c h i e v e d t h ro u g h t h e S C A P Y 3 D & Y M D
System, which is a structural design and production
design system exclusively for “yess” buildings thathas been independently developed by Yokogawa
System Buildings.

Ordertaking

Four systems

19

Mobara Plant, Yokogawa System Buildings

Rational construction methods thatstandardize members and joints enable
construction in a short period. Moreover,since “yess” buildings can have pillarless
spaces of up to 60 meters, they can beused in various fields, such as sports
facilities and stores, in addition to factories
and warehouses.

We have established a system toproduce “yess” buildings in the
only plant in Japan dedicated tosystem buildings. This allows us toprovide a stable supply of highquality materials in a short time andat a low cost.

DesignProduction

Const.

Completionto create “yess” buildings

Frame system for“yess” buildings

Roof system for“yess” buildings

Wall system for “yess”
buildings

Accessories for“yess” buildings

Our proprietary design method
enables weight savings andlarge spans in the frame used
for pillars and beams.

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

We have a large lineup fromwhich selections can bemade according to theapplication and design.

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

Yokogawa Bridge Holdings Integrated Report 2022

Growth Strategies for Value Creation

Yokogawa Engineered Structure System (“yess”) is an architectural brand that specializes in buildings with large, pillarless

Yokogawa Bridge Holdings Integrated Report 2022

20

Financial and Non-Financial Highlights(Items without notes are consolidated.)
Net sales / Operating profit / Operating margin

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

62.5%

59.6

10.2

10.0

9.8

11.3 t-CO2/
100 million yen

Waste generation (steel) / Recycling rate
100

100

100

100%
8,162t

58.6

7.4
141.9

131.0

9.3
138.1

7,424

56.3

78.8

13.7

10.5

12.8

15.9

2017

2018

2019

2020

Net sales

Operating profit

101.1

136.9 billion yen

136.0

54.4

84.2

89.4

2018

2019

7,032

107.7 billion yen
14,534

13,863

13,31820192020

15,503t-CO2

6,267

14.7 billion yen
2021

2017

2020

EquityOperating margin

2021

2018

CO2 emissions

Equity ratio

2021

2018

2019

2020

Waste generation (steel)

CO2 emissions intensity

2021

Recycling rate

Growth Strategies for Value Creation

10.8%

11.7

10.5

Equity / Equity ratio* CO2 emissions per 100 million yen in sales

Net income attributable to owners of the parent company / Return on equity

Orders received

Number of employees/Percentage of female employees

Employment rate of persons with disabilities

189.6
12.8
11.9
9.2

10.6%

148.7

124.3
11.2

9.3

14.6

10.4
83.2

15.6

158.1 billion yen

153.2
127.5

91.7

11.0 billion yen

1,891

1,962

2.17

2.21

2.23%

2020

2021

14.6%

14.0
87.5 billion yen

1,800

1.99

1,749

69.4

9.0
7.5

2017

2018

2019

2020

2021

Net income attributable to owners of the parent company

Return on equity

Dividend per share / Earnings per share / Payout ratio

60.3

57.3

51.1

57.1

2017

2018

2019

2020

Bridge BusinessEngineering Business65.0 billion yen

2021

2018

Employees

Precision Equipment Business

Capital investment / Total dividends

2019

226.93217.61

2021

2018

Percentage of female employees

Employment rate of persons with disabilities* Average for five operating companies

Number of occupational accidents

Average overtime work hours per month7267.54 yen

3.1 billion yen

10.1

6

6

30.6
26.4

182.33
19.0
16.5

1.5

22.00
2017

30.00

2018
Dividend per share

37.00

2019

52.00

2020

Earnings per share

75.00 yen

2021
Payout ratio

Yokogawa Bridge Holdings Integrated Report 2022

2020

2021

1

2018

2019

Capital investment

2020
Total dividends

2021

2018
Fatal accidents

0

0

0

2019

2020

2021

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

21

23.4h

4.7 billion yen

0.9

2017

23.1

6.0

1.2

9.7

4

2.1

7.6

7.3

17.0

2019

* Including equity method affiliates.

28.0%
273.09

2020

2018

2019

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

Yokogawa Bridge Holdings Integrated Report 2022

22

—Moving to the Next Phaseof Growth—

The YBHD Group plays a role in the development of the social infrastructure that forms the foundation of people’s
lives. For the 115 years since its establishment in 1907, it has been contributing to society through infrastructuredevelopment and technological innovation under the corporate philosophy of “Contribution to society and the
public, and sound management.” During this time, the business environment surrounding the Group has changed
significantly. In order for the YBHD Group to continue to embody its corporate philosophy over the next 100 years
and to conduct sustainable management aimed at the next phase of growth, we have formulated the Sixth
Medium-Term Management Plan (“Medium-Term Plan”) for the three-year period from fiscal 2022 to 2024.

Review of the Fifth Medium-Term Management Plan (Status of Achievement)
Basic Policies

Progress and Achievements

Pursue maintenance, expansion, and optimizationof the bridge business by reinforcing capacity in1
the bridge maintenance business in addition to
new bridge construction

Strong orders for new bridge construction and maintenance, such as projects to
expand highways to four lanes and major upgrade projects; performance outpaced
targets, with record earnings and orders in FY2020

Establish a dual-plant framework and strengthen
2 profit/loss management to drive further growth in
the engineered structure system businessWork on establishing the dual-plant system generally proceeded as planned; orders
started recovering in the second half of FY2021, but earnings underperformed targets
due to the impact of the COVID-19 pandemic

segments

Also, pursue expansion of the overseas bridge,

4 aluminum products, and precision equipment
manufacturing businesses

Yokogawa’s

120th anniversary
Net sales

Engineering
Civil engineering /Construction and machinery steel

The overseas bridge business was weak due to the COVID-19 pandemic, butearnings were firm in aluminum products and precision equipment manufacturing

Engineering
Engineered structure system

Western extension of the Osaka Bay Road / Four-lane highway conversion projects
Major upgrade projects

Bridges

Segment
BridgesEngineered
structure system
Engineering
Civil engineering /Construction andmachinery steel
Precision Equipment

23

Yokogawa Bridge Holdings Integrated Report 2022

Medium termLong term

Growth in new construction order volume,
driven by projects to expand highways tofour lanes and the start of orders for thewestern extension of the Osaka Bay Road

Moderate decline in new construction ordervolume; continued steady level ofmaintenance projects such as earthquakeproofing and major upgrade work

Private-sector investment contracted due tothe pandemic, but the market is recovering
based on moves to bring supply chains backto Japan

Rising investment in warehouse and logistics
facilities spurred by growth in the
e-commerce market, as well as upgrades toaging facilities and consolidation /redevelopment of existing facilities

Firm demand for tunnel segments, supportedby planning and implementation of major
infrastructure projects such as the maglev
Chuo Shinkansen high-speed rail line

Increase in demand in the carbon neutralrelated market for civil engineering steel
structures such as offshore wind turbines

Flat demand in the mainstay market for LCD
and OLED panel manufacturing equipment

Continued growth in demand forsemiconductor production equipment

Strengthen further

Five-year national resilience acceleration plan; disaster prevention / mitigation

Basic Policy
business and the construction and machinery steelbusiness, we expect demand for new civil engineering
structures, supported by carbon neutrality strategies, inaddition to demand for underground structures forrailroads, etc. Demand in the precision equipment
business is also expected to increase as the economy
recovers from the COVID-19 pandemic. Meanwhile, thepromotion of DX and efforts to address ESG issues areb e c o m i n g i n c re a s i n g l y i m p o r t a n t f o r b u s i n e s scontinuity.

Expansion into minimum-cost,
multi-story structures

Post-pandemic recovery
in construction investment

Sixth Plan
2021

In the bridge business, the long-term market trend is a
gradual shift to mainly reinforcement and repair work as
the number of new bridges being built declines. In themedium term, however, a significant number of large
orders are in sight for both new construction andmaintenance projects. In the engineered structure
system business, the market for warehouses andfactories is expected to remain strong, and the switch
away from conventional construction methods is
expected to progress further. In the civil engineering

Expand businessand move into
new fields

Develop new plans for shield tunneling business

Fifth Plan

Business Environment

Seawalls, port facility upgrades,
offshore wind turbines

Promote Groupwide DX

Precision Equipment

Earnings missed targets due to sluggish orders and production, reflecting delays inwork schedules for shield tunneling projects

Explore new
digital businesses

187.0 billion yen

Net sales
136.9 billion yen

Corebusinesses

Further grow the civil engineering steel structure

3 engineering business, as exemplified by tunnel

anticipate longer-term market trends in the years ahead
and will spend the next three years building a highly
resilient business base that can flexibly respond to
drastically changing social conditions.
The Sixth Medium-Term Plan designates the bridgebusiness and the engineered structure system businessas our two core businesses, and we will reinforce andgrow both of them. We will also make efforts to moveinto new civil engineering business fields, develop
technologies to reduce environmental impact, promote
DX, and further build up our business base.

The YBHD Group’s management vision is to realize thelong-term protection of bridges, multifaceted steel
structure engineering, the creation of a resilient social
environment and harmonious coexistence with thenatural environment, and the construction of a robust
operational foundation, as well as the pursuit of sustained
expansion. We envision growth as shown in the figure
below. The period of the Sixth Medium-Term Plan is atime to lay the foundation for the realization of ourmanagement vision, and we will do more to bolster ourbridge business and expand our engineering business.
We will also prepare to create new businesses that

New Medium-Term Management Plan

The engineered structure system business, which we expect to become a second key source of
earnings, missed its targets, but our core bridge business secured major bridge construction andmaintenance orders, and other segments broadly achieved their targets.

Longer-term Vision and Basic Policies of the Sixth Medium-Term Plan

Seventh Plan
2024

Realize management vision
2027 (FY)

Build a highly resilient business base

1 Further reinforce core businesses
Bridge business: Reinforce maintenance services, secure orders for major new projects
Engineered structure system business: D evelop various management systems to improve coordination between
orders and production and make additional capital investments toimprove productivity
2 Create and develop diverse businesses
Move into new fields such as seawalls, port facility upgrades, and offshore wind turbines
3 Establish a robust business base for the next 100 years
Develop new materials, construction methods, and other technologies with low environmental impact,
promote wider use of renewable energy, double investment in IT, and accelerate DX measures
Business Strategy

Business Base Strategies

BridgeP.27-30

Engineering Engineered structure system

P.31-32Core
businesses

Sixth Medium-Term
Management Plan

DX strategy

P.39

Technology strategy

P.40

Engineering Civil engineering / Construction and machinery steel P.33-36

Human resources strategy P.41

Precision Equipment

ESG initiatives

P.37-38

P.42

Yokogawa Bridge Holdings Integrated Report 202224

Sixth Medium-Term Management Plan
Earnings Targets in the Sixth Medium-Term Management Plan
Fifth Plan

Sixth Plan

FY2021targets

FY2019results

FY2020results

FY2021
results

FY2024targets

Net sales(billion yen)

160.0

138.1

136.0

136.9

187.0

Operatingprofit(billion yen)

14.0

12.8

15.9

14.7

18.3

230

218

273

268

290

10.6%

9% or
higherEPS (yen)

8% orhigher

ROE

10.4%

11.9%

* Cost of equity assumption is roughly 7.3%.

Net sales by segment
Precision
Equipment¥7.4 billion

Civil engineering / Construction andmachinery steel¥23.0 billion

Net sales in FY2024¥187.0 billion

Precision equipment, other¥6.0 billion

Operating income¥18.3 billion

Engineering¥54.4 billion
Civil engineering /Construction andmachinery steel¥15.6 billion

Operating income¥14.7 billion

Engineered
structure system¥38.7 billion

Key investments in the Sixth Medium-Term Plan

Bridge¥84.6
billionIT-related investment
To promote DX, we plan to put a total of 7 billion yen
into DX and IT-related investments over three years.
Particular emphasis will be placed on investments invarious management systems, including sales andproduction management systems for the engineered
structure system business, in order to cope withgrowth in orders and production.

Engineering¥95.0 billion

Net sales in FY2021¥136.9 billion

Engineered structure
system¥72.0 billion

Bridge¥76.4 billion

Under the Sixth Medium-Term Plan, we will make capital
investments focused on continued investment in theengineered structure system business, which is growing
significantly, expansion of IT-related investments toadvance DX, and investment in decarbonization.
Although final investment decisions will be made on afiscal year-by-year basis, we plan to make capital
investments totaling 18 billion yen over the next three
years.
Regarding cash flow, we forecast a cash inflow of 31.0
billion yen over three years. Of that amount, 18 billion yen
will be used for capital investments, and around 13 billion
yen will be allocated for shareholder returns, thereby
balancing the investment necessary for growth withreturns to shareholders.

Investment in facility upgrades and decarbonization
To expand the scale of our business and deal with theaging of facilities, we will make the necessary investments
to add capacity, rationalize and save labor, and maintainand upgrade various production facilities. We will also
rebuild our aging office buildings and research facilities.
In addition, we will invest 330 million yen in our
offices and plants to install solar power systems andutilize renewable energy to reduce CO2 emissions.

Projected cash flows under the Sixth MediumTerm Plan
Although we expect net sales to increase annuallyd u r i n g t h e S i x t h M e d i u m - Te r m P l a n p e r i o d , w e
anticipate a corresponding increase in tradereceivables. Accordingly, we project cash inflow to be
31.0 billion yen, slightly less than the total net income
for the three-year period.
Against this, we expect cash outflows to include 18
billion yen for capital investments and around 13 billion
yen for shareholder returns, including dividends andshare buybacks.

New Medium-Term Management Plan

In order to quickly increase ear nings, which had
remained sluggish during the Fifth Medium-Term Plan
period, we have set the following earnings targets forfiscal 2024, the final year of the Sixth Medium-Term
Plan: net sales of 187 billion yen, operating profit of
18.3 billion yen, and earnings per share (EPS) of 290
yen. With an average annual growth rate of 11% in net
sales, we plan to close in on 200 billion yen in net sales
in the final year of the plan.
Sales targets by segment are: 84.6 billion yen for thebridge business, up 11% from fiscal 2021; 72 billion
yen for the engineered structure system business of theengineering business, up 86% from fiscal 2021; 23
billion yen for the civil engineering business /construction and machinery steel business, up 47%
from fiscal 2021; and 7.4 billion yen for the precisionequipment business and others, up 24% from fiscal
2021. We will strive to expand the performance of all ofour businesses, including our core bridge business, but
in particular, we will aim to achieve our targets bysignificantly increasing performance in our other corebusiness, the engineered structure system business.
We assume that this will result in sales from theengineering business exceeding those from the bridgebusiness in the final year of the plan.

Investment Plans and Cash Flow Projections

Capital Policy
The basic goal of our capital policy in the Sixth
Medium-Term Plan is to “balance sound finances withcapital efficiency.” As of the end of the Fifth MediumTerm Plan, our equity ratio exceeded 60%, and while
the company’s financial soundness is well secured, we
intend to increase shareholder returns to maintainreturn on equity (ROE), which is an indicator of capitalefficiency, at 9% or higher. We will continue our policyof paying stable dividends while aiming to maintaindividend increases based on a payout ratio target of
30% or higher. We also expect to buy back a certain
number of shares as conditions permit.

Policy on cross-shareholdings
Yokogawa holds shares in other companies (crossshareholdings) when doing so is deemed beneficial
to increasing the Group’s corporate value over the
medium and long term by maintaining andstrengthening business relationships and businessalliances.

Verification of appropriateness of crossshareholdings

Major investment plan (three-year total)

In light of the aforementioned policy, the Board of
Directors annually reviews the appropriateness of holding
each individual security, including the possibility of sellingit, by comprehensively considering the necessity ofholding the security, investment efficiency, and otherbenefits and risks associated with holding the security.
We are working to further reduce cross-shareholdings
based on dialogue with the companies in which
Yokogawa holds shares.

Additional capacity

1.6

Rationalization, labor-saving

0.6

Maintenance, upgrades

4.2

Environmental initiatives

0.4

DX/IT related

7.0

Other

4.2

Total

18.0

PurposeEPS and dividend per share

227

268

Sixth Plan
Payout ratio: 30% or higher

218

11
2013
Payout ratio 11.1%

103

14

16

2014
14.2%

2015
15.5%

Third Medium-Term Management Plan

103
16

22

30

37

2016
15.5%

2017
9.7%

2018
16.5%

2019
17.0%

52
2020
19.0%

EPS

100

75

2021
28.0%

Fourth Medium-Term Management Plan Fifth Medium-Term Management Plan

Dividend per share

(Yen)
300

200

182
98

Cash outflow

Operatingcash flow

Capex(interest-bearing
debt to cover
any shortfall)

Yokogawa Bridge Holdings Integrated Report 2022

Shareholder returns
Approx.

13.0 billion yen*Three-year totals

02022 2023 2024 (FY)
30% or higher

Net income
Capital expenditure(billion yen)

Total dividends(billion yen)

12

3.6

8

2.4

4

1.2

Sixth Medium-Term Management Plan

0

2016

2017

Net income

25

18.0 billion yen

31.0 billion yen

Total amount of dividends
273

100

Amount (billion yen)

Cash inflow

2018

2019

2020

Capital expenditure02021 2022 (forecast) (FY)

Total dividends

Yokogawa Bridge Holdings Integrated Report 2022

26

Business Strategy

Bridge BusinessAs a pioneer in steel bridges in Japan, the YBHD Group has been continually developing cutting-edge
technologies for 115 years.
Our bridge business consists of three businesses: the new bridge construction business, the maintenancebusiness, and the overseas business.

Decrease in demand for new bridges ● Increase in demand for bridge maintenance
Expansion of BIM/CIM application ● Safety risks such as accidents ● Quality defects● Shortage of field engineers ● Impact of COVID-19

Risks andopportunities●●●

Strengths

Basic policy for bridge business

Environment of the bridge businessNew bridge orders are recovering from the drop inorders received in fiscal 2019, and we expect large
projects to be ordered during the Sixth Medium-Term
Plan period.
In the maintenance business, major upgrades andearthquake-proofing projects are in full swing, and thevolume of orders received is approaching that of new
bridge construction.
At the same time, we must respond to the ongoingshortage of human resources and workstyle reform.
The basic policy for the business can be summarized
as follows.
• Focus on securing orders for major new bridge
projects starting in the next few years; also, with
the new-build market likely to contract in thef u t u re , s t re n g t h e n t h e b r i d g e m a i n t e n a n c ebusiness to capture emerging demand for aging
infrastructure repair work
• Implement DX to achieve the new “3Ks” (kyuryo[wages], kyuka [time off], and kibo [prospects]) for
construction workers, and reinforce safety measures

With expectations of projects to expand highways to fourlanes and the ramping up of orders for the west extensionof the Osaka Bay Road, the total annual volume of orders
for new bridges is projected to recover during the Sixth
Medium-Term Plan period from the severe drop to
135,000-190,000 tons/year in fiscal 2019-2021.
The bridge maintenance market is expanding,especially in the area of deck replacement work, as
NEXCO and other highway companies are planninglarge-scale upgrade projects (worth 3 trillion yen) throughfiscal 2030. According to a summary by the Japan
Bridge Association, maintenance projects account for
50% of the orders received by member companies (interms of value), and efforts in maintenance projects,
including large-scale upgrading projects, are becoming
increasingly prominent. At the same time, budgets forthe maintenance and repair of bridges under thejurisdiction of local governments are also on the rise,with strong demand in the business expected for theforeseeable future. This business environment forbridges can be summarized as follows:• Projects to expand highways to four lanes, ramping up
orders for the western extension of Osaka Bay Road
→ Projected large increase in order volume for the
new bridge construction business• Ongoing major upgrade projects, mainly centeredon expressway operators→ Sustained strong levels of demand in the bridge
maintenance business
From a longer-term perspective beyond the Sixth
Medium-Term Plan period, we believe that it is necessary
to actively work on both new bridge construction andbridge maintenance while balancing the two.

Bridge Business net sales(billion yen)

+10.7%

76.4

0

27

2021

Yokogawa Bridge Holdings Integrated Report 2022

84.6

2024

(FY)

■ Address engineer shortage, improve productivity
All planning related to the bridge business is predicatedon ensuring safety and quality, and it is important toimprove worksite efficiency in order to reduce theworkload of managers. Meanwhile, the expansion of themaintenance business and the diversification of ordertypes, such as the ECI method*, as well as theincreasing difficulty of construction work, have made it amajor issue to secure capacity in design and planningdepartments. We will make wider use of ICT as a meansof maximizing productivity with a limited number ofpeople.
* Method in which the builder is involved from thedesign stage■ Tackle more technically challenging projects(earthquake-proofing truss and arch bridges)
Earthquake-proofing of special bridges (trusses, arches,etc.) and renovation work involving deck replacement
are projects requiring a high level of technical expertisethat the YBHD Group should undertake. At the sametime, as construction projects become larger and more
complex, it is difficult to handle them alone, thus
necessitating the possibility of tie-ups with othercompanies in the same or different industries. We will
incorporate each of these methods of supplementing
production capacity in order to respond to demand
actively.
■ Use large upgrade projects etc., to stand out inthe market
In order to stand out from competitors in maintenance,
repair, and large upgrade projects, we will push for the
early commercialization of a steel deck replacement
process (product name: STEEL-C.A.P. method), which
we are developing with Nippon Steel Corporation; andsmall replacement bridges (product name: NY Rapid

Bridge), which we are developing with Nippon SteelEngineering Co. Ltd., thereby contributing to businessexpansion in this field. In addition, “cusa” aluminumalloy permanent scaffolding can be used as temporary
scaffolding when replacing decks, and we have further
developed the product to add a sound absorption
feature. We now expect that “cusa” will be adopted for
intra-city highways in the future.

Large upgrade and renovation work

New Medium-Term Management Plan

Workforce consisting of a large number of qualified personnel
Advanced technical capabilities accumulated over many years● Corporate culture of taking on challenges ● Active use of state-of-the-art technology● Ability to respond to customer needs● Osaka Plant with an annual production capacity of 60,000 tons
● Possession of a full range of construction equipment ● Specialized department for BIM/CIM● 
Integrated management system from material procurement to design, production, and on-site
construction ● Proposal sales capabilities that take advantage of synergies across the Group●

Initiatives in the bridge businessNew bridge
construction on
an in-service road

Earthquake-proofing of a truss bridge

Large-scale upgrade and projects – projected market of ¥3 trillion
Deck replacement,
girder replacement, etc.

Repair work such as reinforcementof bridge piers, girders, decks

Functional improvements such as roadwidening and the addition of connecting roads

East Nippon Expressway Co.,
Central Nippon Expressway Co.,West Nippon Expressway Co.

Large-scale upgrade and repair projects (girder and deck replacement,
girder reinforcement) worth roughly ¥2.2 trillion

Metropolitan Expressway Co.

Large-scale upgrade and repair projects (bridge replacement, widening,deck replacement, deck, pier, and girder reinforcement) worth roughly ¥630 billion

Hanshin Expressway Co.

Large-scale upgrade and repair projects (deck replacement, deck, pier,and girder reinforcement) worth roughly ¥370 billion

Ministry of Land, Infrastructure
and Transport (existing bridges)

Replacement of reinforced-concrete decks: around 2,100 bridges;
repair steel decks: 370 bridges

Five-year program to accelerate disaster prevention / mitigation and national resilience set to get underway

Yokogawa Bridge Holdings Integrated Report 2022

28

Business Strategy

Bridge Business■ Develop technologies that help to reduce
environmental impact
Precast wall balustrade Rapid Guard Fence as well as theabove-mentioned STEEL-C.A.P. and NY Rapid Bridge
methods, are a lineup of rapid construction methods thatcan minimize congestion on heavy traffic routes and help
reduce environmental impact. We will focus on spreading
their use. We have also developed a pier construction
method with Kumagai Gumi Co., Ltd. that enables
construction in a shorter period of time than conventional
methods when removing and replacing existing bridges. In
addition, we are f ocusing on the development ofenvironmentally friendly technologies with various objectives,
such as a paint coat removal method that can reduce theoverall amount of waste, the application of which is
expanding, thus increasing its track record.

Overseas business

The Otochi Bridge, ordered by Kochi Prefecture, is abridge on Route 195 that spans the Nagase Dam Lake
upstream on the Monobe River. The bridge is a halfthrough-type steel Nielsen-Lohse bridge with a length of
201 meters, an arch span of 170 meters, and a steel
weight of 1,442 tons (including 564 tons constructed by
the YBHD Group). During erection, a special method
called the cable-erection diagonal suspension was usedwith a steel tower approximately 50 meters tall. The
adjacent old bridge (red), a Baltimore truss bridge, wasalso constructed by the YBHD Group in 1955.

In our overseas business, we are focusing on ODA
construction in fast-growing regions from Southeast
Asia to the African continent. Recently, the Nile River
Bridge in South Sudan was successfully completed
after three construction stoppages due to civil war andthe spread of COVID-19. We also completed theerection of the Kalna Bridge (photo), one of the largest
Nielsen-Lohse bridges in Bangladesh. This bridge is
expected to make a significant contribution tointernational logistics as part of Asian Highway 1, which
is an international highway. During the past two years,
w e h a v e b e e n a ff e c t e d b y t h e g l o b a l s p re a d o f
COVID-19, but we will continue to aggressively pursue
overseas projects while keeping a close eye on global
post-pandemic developments.

Interior view of “cusa” aluminum alloy permanent scaffolding

Crash performance tests of Rapid Guard Fence
Otochi Bridge (Monobe-cho, Kami City, Kochi Prefecture)

Construction Work of Matsuyama Expressway Kaminadagawa Bridge andOther One Bridge (superstructure of steel bridge)
Yurie Sano, Osaka Construction Headquarters, Yokogawa Bridge
This work is for the superstructures of the Kaminadagawa Bridge and Karasudani Bridge in support of theadditional lane project between the Iyo IC and Uchiko-Ikazaki IC. The purpose of this project is to eliminate
accidents, speed reductions, and traffic congestion by expanding a temporary two-lane section to four lanes,
as well as to enhance the road network’s ability to respond to large-scale disasters. The staff at this site
includes one man (the director) and two women, including myself, with the other being from Myanmar,
making it a real diversity promotion site. What I feel from a woman’s perspective about the on-site environment is that it is a mucheasier working environment than I had imagined, with infrastructure such as “comfortable toilets” in place. The Karasudani Bridge,
which is currently under construction, is located near the first-phase line of the Matsuyama Expressway, which is in service. The
work is being carried out at the height of approximately 30 meters. Therefore, we are paying close attention to the first-phase line
when erecting the girders and PC decks and also striving to prevent fall accidents while proceeding with the work.

Maintenance business
The Sogabegawa Bridge is located between the Otoyo
IC and Nangoku IC on the Kochi Expressway. It is a steel
3+4-span continuous truss bridge with a maximum spanof 143 meters, the largest of its kind on a route in
Shikoku. Since the bridge is required to function as an
emergency route in the event of an earthquake or otherdisaster, measures were taken to prevent the bridgefrom falling or collapsing, and seismic reinforcement was
implemented. The main measures included replacing
stringer supports, reinforcement of splicing plates, andinstallation of vibration dampers in the superstructure. In
the substructure, the RC bridge piers were reinforced
with continuous fiber sheets and concrete lining.
Although it was a challenging construction project, it wascompleted with no accidents or injuries.

Seismic reinforcement work between the Otoyo IC and the Nangoku IC(Sogabegawa Bridge)

29

Yokogawa Bridge Holdings Integrated Report 2022

New Medium-Term Management Plan

New bridge construction business

Fully erected Kalna Bridge

Bridge peripheral business■ Metropolitan Expressway Kanagawa Kariba
Route “cusa”
Permanent scaffolding is being installed on existing bridges
on the Metropolitan Expressway for bridge inspection andother maintenance. As part of the project, the YBHD Group’s“cusa” aluminum alloy permanent scaffolding was adopted
for the Kanagawa Kariba Route. The target bridge is locatedon a river, and “cusa” was installed to function as inspection
scaffolding and bridge corrosion prevention. In this project,
the girder-to-girder type was to fit the underside of thebridge’s main girder, but we also have a suspended type thatcovers a bridge’s
main girder. It is
expected to be
used in long-term
bridge maintenance for its corrosion protectionof the entire girder,
inspection, andlandscape improvement.
Exterior view of “cusa” aluminum alloy permanent
scaffolding

Yokogawa Bridge Holdings Integrated Report 2022

30

Business Strategy

Engineering Business
The YBHD Group’s civil engineering sector consists of three businesses: the engineered structure system business, the civil engineering business, and the construction machinery and steel business. The engineered structure
system business has established itself as the No. 1 in the industry through production at a dedicated plant and byrealizing short construction periods. We are also applying the technology we have cultivated over many years inthe bridge business to work on the civil engineering and construction machinery and steel businesses.

Safety risks such as accidents ● Building market trends ● Shortage of field engineers
Political and economic situation at overseas bases ● Impact of COVID-19● Market expansion of sports business ● Underground use in metropolitan areas● Growing need for port facility upgrades ● Growing need for technologies related to carbon neutrality● 
Growing need for disaster prevention facilities and flood control techniques due to the intensification ofnatural disasters●

Risks andopportunities●●

Strengths

Basic policy for the engineered structure
system business

Environment of the engineered structure
system businessWe established a dual-plant structure at our Mobara
and Chiba plants during the Fifth Medium-Term Plan
(fiscal 2019–2021) in order to further expand ourengineered structure system business. However,
performance was below expectations due to theimpact of a declining market caused by the spread of
COVID-19 and other factors.
Under the Sixth Medium-Term Plan (fiscal 2022–2024), we plan to achieve a significant improvement inorders and production in markets that are expected torecover in the future. We intend to secure annual orders
and a production area of at least 1.3 million m2 andachieve sales of 72 billion yen in fiscal 2024 (up about
86% from fiscal 2021) by promoting DX, including theuse of ICT, in addition to the initiatives in order andproduction activities described below.

In the engineered structure system business, the market
declined significantly during the Fifth Medium-Term Plan
period due to a drop in private-sector investment causedby the spread of COVID-19 and the increase in the
consumption tax rate. However, there are signs ofmarket recovery beginning in fiscal 2021, partly due tothe government’s policy of bringing supply chains backto Japan. In the medium to long term, the market forfactories and warehouses, the core market for theengineered structure system business, is expected to
expand with recovery from the COVID-19 pandemic, theeffects of government policies, the growth of the
e-commerce market, as well as renewal due to aging
and the consolidation and redevelopment of existing
facilities. The peripheral markets of offices and stores are
expected to increase moderately. Although the timing of
economic recovery from the pandemic will result in arange of forecasts, we estimate that both the core andperipheral markets are on an expansionary trend.

Engineering Business (Engineered structure system) net sales

Trends in the market and engineered structure system(As of March 2022)
orders received (billion yen)+86%

FY2018 FY2019 FY2020 FY2021

72.0
38.7
0

31

2021

Yokogawa Bridge Holdings Integrated Report 2022

2024

(FY)

Market size (1 million m2)
Steel frame plant warehouses

16.60

14.50

13.70

14.80

Market size (buildings)
Steel frame plant warehouses

18,30017,30015,80023,000Orders area (1,000 m2)

961

772

798

1,008

Share of orders area

5.8%

5.3%

5.8%

6.8%

40,89437,56937,11348,278Order amount (million yen)

■ Initiatives to increase orders
We will step up proposal-based, face-to-face marketing
aimed at accurately identifying customer needs andproposing optimal plans through collaboration between
sales and technology. We will also strengthen ourpartnerships with builders through builder general
meetings and sales trips accompanying clients, and wewill continue to conduct effective advertising to increaseawareness of “yess” buildings.
In addition, cost reductions, including the use of ICT
and the adoption of new construction and process
management methods, will further strengthen thecompetitive advantages of “yess” buildings compared
to conventional building construction methods andother companies’ system structures.

New terminal constructed for Miyakonojo Daikyu Transportation Co., Ltd.

■ Reinforcement of plant and worksite production systems
In terms of plant production, we will advancerobotization and the system of round-the-clock
operations at our two plants in Mobara and Chiba andimprove coordination with other Group plants to secure
production volume aligned to increased orders.
Regarding on-site construction, we will cope with theincrease in production by developing on-sitemanagement support tools such as 3D drawings,
improving construction manuals, and cultivating andtraining new subcontractors.
In parallel with the above, we will establish various
management systems (sales management andproduction management systems) in order to improve
operational efficiency and productivity.

New Medium-Term Management Plan

Workforce consisting of a large number of qualified personnel
Advanced technical capabilities accumulated over many years● Corporate culture of taking on challenges ● Active use of state-of-the-art technology● Ability to respond to customer needs ● Collaboration with more than 1,300 affiliated builders nationwide● High productivity through the use of robots● The industry’s only dedicated plant with an annual production capacity of 90,000 tons
● 
Development and design capabilities in new fields, such as offshore wind turbines and port facility upgrades●

Initiatives in the engineered structure systembusiness

Fujisan Plant of Tomomasu Holdings Co., Ltd.

New Production Shop for GIS at the Maebashi Works, Nissin Electric Co., Ltd.
Masaki Taguchi, Tokyo Sales Department, Sales Division, Yokogawa System Buildings
I will introduce the New GIS Plant at the Maebashi Works of Nissin Electric Co., Ltd., which was completed in
February 2022.
Nissin Electric is an electric power equipment manufacturer with a history of more than 100 years. It isinvolved in a wide range of businesses, centered on products such as capacitors and gas-insulated
switchgear used for the stable supply of electric power to buildings, factories, etc., as well as photovoltaic
system-related products and electron irradiation devices.
The company has production facilities in Kyoto (Head OfficeWorks), where its head office is located, and Maebashi (Maebashi
Works). Recently, it planned a new plant to increase production ofgas-insulated switchgear at the Maebashi Works, for which it
adopted a “yess” building, which is a system structure product of
the YBHD Group.
It is a large production plant with a building width of ≈61 meters,a building length of ≈120 meters, and a building area of 7,660 m2.
The plan, which was challenging, required the installation of 10
overhead traveling cranes of various sizes, three jib cranes, a partial
two-story office zone, and panel supports for a dust-proof room.
Nevertheless, we were able to fully demonstrate a high degree of design
freedom despite being a system structure, which is a characteristic of“yess” buildings, and provide a building that satisfied the client.
Going forward, “yess” buildings will continue to contribute to theconstruction investment of Japanese companies.

Yokogawa Bridge Holdings Integrated Report 2022

32

Business Strategy

Engineering Business (Civil engineering business)

Basic policy for the civil engineering businessIn the civil engineering business, we will continue tosecure orders and production work for civil engineering
steel structures for road and railroad tunnel segments
and tsunami countermeasure projects for electric
power companies. We will also actively develop new
products and construction methods in fields where
future market growth is expected in order to expand“multifaceted steel structure engineering.”

Environment of the civil engineering business
The recovery in economic activity is forecast to spur
infrastructure development, especially road and rail
development associated with logistics, and demand fordeep underground tunnels is anticipated to increase inma jor citie s a s the use o f under ground spa c e ispromoted.
Flood control projects are projected to increase as
climate change driven by global warming leads to theannual occurrence of larger typhoons and serious
disasters caused by unexpectedly heavy rainfall. There
are also plans to move transportation infrastructure
underground to protect it from heavy snowfall in cold
regions. Investment in disaster prevention and disaster

Initiatives in the civil engineering business• We will maintain and expand the business scale bysecuring orders for large railway-related projects inwhich our proprietary tunnel segment products areincorporated into the design.
• For large projects such as seawalls, we will secure
re l i a b l e e a r n i n g s b y e s t a b l i s h i n g a d e s i g n ,production, and construction system incoordination with Group companies.
• We will develop new technologies in fields withgood growth prospects, such as offshore windturbines and port facility upgrades. With regard to
offshore wind turbines, we will collaborate withgeneral contractors and others in development inorder to rapidly launch businesses.

■ Tunnel segments
In the civil engineering business, we mainly
manufacture civil engineering structures using steel
materials. Typical civil engineering structures include
things called “tunnel segments” that lead tounderground spaces. These segments, which play apart in the construction of underground spaces, aremanufactured mainly as steel segments that can bebuilt in a short period using steel materials and provide
excellent flexibility and quality, as well as composite
segments integrated with concrete. Particularly, inrecent years, many segments have been used in largescale spaces and irregularly shaped tunnels, such as
for underground highways and subways in major cities.
The photo below shows the inner surface of a
subway tunnel built using our unique six-sided steel
shell composite segment. Taking advantage of its
feature of high strength, it was used for the large crosssectional area of the confluences near stations.
We conduct actual-size ring loading tests to confirm
high load performance.
We expect great demand for tunnel segments forunderground highways in the Tokyo metropolitan area
and railway-related projects such as tunnels for themaglev Shinkansen.

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

The picture below shows the construction of ahighway using a steel-concrete composite box culvert.
With its large cross-section, 18.4 m tall × 43.8 m wide, it
has eight lanes of road running through on two levels.
The construction required a very high level of technicalexpertise, as the above-ground location conditions
included a railway line.
Going forward, we will continue to contribute to theeffective use of underground spaces with a variety of
products, such as underground passageways where thewalls of the steel segments are used as is in the designand construction of the thick-walled tubular steel columns
that support station buildings built underground.

Steel-concrete composite box culvert highway■ Seawalls

New Medium-Term Management Plan

Temporary assembly of a steel tunnel segment

mitigation projects is also a continuing trend, and weanticipate increased opportunities to participate inprojects such as tsunami countermeasures.
At the same time, there is a growing trend toward
carbon neutrality investments to combat global
warming, with a particular interest in offshore windturbine projects.

By centrally managing every aspect, from technicalproposals to design, production, and construction, we
provide high-quality products such as seawalls that
protect nuclear power plants from tsunamis and steelconcrete composite box culverts that enable rapid road
construction.
Normal seawalls designed to stop tsunamis areconstructed by piling earth up to high levels. By contrast,
the steel seawalls and precast composite structure
seawalls that we manufacture appear to be concrete, but
their combination with steel materials makes it possible tocreate strong walls that can protect coastal areas withmuch smaller footprints than conventional seawalls.

Role of the Engineering Business and Our Involvement
Satoshi Haseyama, Steel Structure Engineering Sales Department,
Yokogawa NS Engineering

Thick-walled tubular steel columns supportinga station building

33

Yokogawa Bridge Holdings Integrated Report 2022

My department handles a variety of products ranging from bridgerelated products to other civil engineering and construction
material products, as well as large steel structures. I currently workon underground structures such as shield tunnel segments andthick-walled tubular steel columns for underground stations.
Because these products are used in underground spaces, many ofthese structures are not very visible and are not part of the landscape, unlike bridges.
However, as they are mainly constructed in major cities, the main feature that they shareis that they are connected to the lives of many people. They mainly play a role insupporting large-scale infrastructures such as roads and railroads, so I feel that I am able
to be involved in important projects through various products.

Actual-size ring loading test
Steel-concrete composite precast seawall

Yokogawa Bridge Holdings Integrated Report 2022

34

Business Strategy

Engineering Business (Construction and Machinery Steel Business)

Construction and Machinery
Steel Business
Construction business

New Tochigi Stadium(left: completed,right: under construction)

Machinery steel business

There is a trend for corporate real estate investment toflow into the sports and entertainment businesses, withinvestment in the construction of stadiums, arenas, andtheaters increasing.
The order format is shifting to the concession
method, in which the private sector takes the initiativein constructing and operating facilities. Since
profitability is required in post-construction operations,highly efficient and multifunctional structures are
attracting attention, with the need for retractable roofs
projected to increase. Accordingly, we will step up oursales efforts targeting the entertainment and media
industries, along with the aggressive information
dissemination we have been doing.
In addition, as facilities age, renovation and repair
work are becoming more extensive, and the market for
maintenance and repair work is also expected to
expand. Therefore, while conducting regular periodic
inspections, we will focus on strengthening marketing,thus leading to orders for large-scale repairs. We arealso concurrently planning, proposing, and negotiatinga maintenance support contract for the retractable roofof the main stadium at Kai Tak Sports Park in Hong
Kong, which is currently under construction. We
envision building a successful maintenance businessmodel for a 20-year operation.
T h e re w i l l b e a n e e d i n t h e m a r k e t f o r o n - s i t einstallation of photovoltaic systems in the coming two
to three years when companies are forecast to takeenvironmentally friendly measures to promote carbon
neutrality. However, since profit margins are expected
to be low due to increasing price competition, we will
maintain our technology and closely monitor industry
trends by conducting a limited number of alreadycontracted and special-order construction projects.

Our machinery steel business has three core products:
steel structures, environmental machinery, andindustrial machinery.
While our main steel structure products are
penstocks for hydroelectric power plants in Hokkaido,
we also manufacture floodgates and debris collectors,
which are important components for river infrastructure.
Regarding penstocks, in particular, we anticipate largescale renewal work for aging pipes, driven by thegrowing market need in recent years for environmental
friendliness, including carbon neutrality. We will meetthis growing market need.
Our development of environmental machinery, mainly
turbid water treatment equipment, began with theconstruction of the Seikan Tunnel connecting the islands ofHonshu and Hokkaido, and we have been accumulating
technologies for about 60 years since then. In recent years,
many of the YBHD Group’s thickeners and filter presses
have been used in tunnel construction for the Hokkaido
Shinkansen bullet train. The next-generation thickeners
under development in our new water treatment system canopen up new markets beyond the boundaries of existingproducts.

Our main industrial machinery products are shiplifting equipment. Our ship-lifting equipment is highly
regarded as indispensable for the maintenance offishing vessels in the Hokkaido and Tohoku regions.
Since 40 years have passed since the start of sales andthe equipment is aging, many renewals are planned atfishing ports. Furthermore, in fiscal 2021, we developed
new lift-type lifting equipment. We made various
improvements based on our 40 years of experienceand feedback from fishers. With the new development,
we expect renewal work to continue.
We have also added tidal floodgates to our productlineup as disaster prevention devices for inclusion inplans to improve national resilience.
These products are expected to further expand therange of areas in which the YBHD Group can play
active roles.

New Medium-Term Management Plan

We have participated in many large stadium construction
projects, including Japan National Stadium. For the New
Tochigi Stadium, we constructed the framework, including
the fabrication of the precast members that are the main
structure of the seating, and erected the steel frame roof.
Both the construction technology and workmanship werehighly evaluated by the client. Large-space buildings suchas stadiums require unique technologies such as the bent
and sliding construction methods. These are projects where
the YBHD Group comes into its own. We have also
participated in the construction of many noted skyscrapers
and have earned the trust of our customers as steel frame
construction specialists. Many skyscrapers, including
redevelopment projects in the Tokyo Metropolitan Area, areplanned for the future, widening the opportunities for the
YBHD Group to play active roles.

Special structures business

Penstocks

New water treatment system

Development of New Lift-type Lifting Equipment
Yuto Sasaki, Design Department, Narasaki Seisakusyo

Main stadium under construction at Kai Tak Sports Park, Hong Kong

We have delivered ship-lifting equipment to more than 80 fishing ports throughout Japan, primarily in
Hokkaido. I am currently involved in the development and design of new lift-type equipment.
The aim of our new ship-lifting equipment is to meet customer needs for improved safety, automation of operation,and compactness. In
June 2022, wereceived an order for
the first unit, which was our target.
Production and installation are scheduled tobe completed by the end of the fiscal year.
I hope to keep improving and developing
products that meet customer needs andaim to become an engineer who cancontribute to society.

Otemachi One building(left: completed,right: under construction)

35

Yokogawa Bridge Holdings Integrated Report 2022

Yokogawa Bridge Holdings Integrated Report 2022

36

Business Strategy

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 over many years in the bridge business; and the information processing
business, which provides strong support to design, manufacturing, and management operations not only within the YBHDGroup, but also for the wider steel bridge industry.
The precision equipment manufacturing business supports the production of the precision machinery manufacturing
equipment that is used in the production of semiconductors, LCD and OLED panels, etc., and ensures a stable supply ofsteel framework products that are the skeletons of high-precision equipment.
In the information processing business, we develop and sell software in the “3M” areas of modeling (information analysis
and design), manufacturing, and management nationwide.

Precision Equipment
Manufacturing Business

The worldwide demand for smartphones and TVs overthe next few years is expected to remain at the samelevel as the previous year’s results, with the market sizeof LCD and OLED panel production equipment also
expected to remain flat. On the other hand, the size ofthe semiconductor production equipment market isanticipated to continue growing moderately over the
medium term, although uncertainty remains given thecurrent global turmoil.

Initiatives in the precision equipment
manufacturing businessIn the precision equipment manufacturing business, wewill work on developing proprietary technologies,
centering on high-damping structure frameworks. We
will also actively engage in technological proposals
aimed at adding value to existing products and in thedevelopment and design of next-generation equipment.
We will also aim to improve manufacturing efficiency
and save labor, thereby enhancing the competitivenessof mass production systems.

In the information processing business, the realizationof the YBHD Group’s DX is a top priority. All businesses
and Group companies will work on DX, and we plan towork on BIM/CIM and digital technology-based safety
management as DX projects. We will also contribute to
the digitization of the industry and expand our
information processing business by commercializing our
results and by launching products.
For existing businesses, such as steel bridge design,
manufacturing systems, and structural analysis, we will
maintain and expand business by expanding functions
and reducing costs based on customer needs.

Environment of the information processing
business

improve our services to meet customer needs while
expanding product functions and upgrading services
based on the results of the Group’s DX.

Steel bridge construction simulator
It integrates steel bridge members, point cloud data obtained by laser scanners,
construction machinery, etc., to examine workability.

Similar to the YBHD Group, steel bridge fabricators andconstruction consultants, who are clients of our
information processing business, are gaining momentumin DX promotion and are investing more actively indigitization. High demand for the IT needed to transformbusiness operations is forecast to continue, and wemust meet the expectations of our customers.

Initiatives in the information processing
business
In the information processing business, we will invest
m a n a g e m e n t r e s o u r c e s o f Yo k o g a w a Te c h n o Information Service Inc., the Group’s information
processing company, as a top priority to realize DX.
For existing products and services, we will strive to

New Medium-Term Management Plan

In the precision equipment manufacturing business, wewill pursue continued business growth by strengthening
our efforts in the semiconductor manufacturing
equipment industry, which is forecast to grow, in
addition to securing firm orders in the LCD and OLED
panel manufacturing equipment industry.
We will focus on continuing to secure orders forexisting products and securing new orders for nextgeneration equipment by leveraging our accumulated
technological development capabilities, high-precision
processing technologies, and high-quality assurance
systems. We also aim to meet the needs of manycustomers in the precision equipment manufacturing
equipment industry by establishing a mass production
system, including the new Kishiwada Plant, which wasestablished in 2019.

Environment of the precision equipment
manufacturing businessInformation Processing Business

AR system for maintenance work
Using augmented reality (AR), members and building materials are projected
onto images of the construction site to verify workability.

Not Just for Bridges! Contributing to ICT for Pavement!
Kenshiro Ogura, Sales Department, Yokogawa Techno-Information Service
Izumi Plant (Izumi, Osaka Prefecture)

High-damping structure framework

Precision Equipment Business (Precision equipment
manufacturing / Information processing) net sales(billion yen)

+24.1%
6.7
5.4

Kishiwada Plant (Kishiwada, Osaka Prefecture)

037

Yokogawa Bridge Holdings Integrated Report 2022

2021

2024 (target)

We have long used digital camera measurement technology to measure bridge girder dimensions and pieranchor bolt positions. NIPPO Corporation, which is a leading road paving company, evaluated thistechnology and helped us arrange it for pavement use, thereby resulting in the Pavement Version VFORM.
This is an excellent product that saves
labor, improves accuracy, and increases
safety by changing the pavement finish measurement work thatused to be done by hand into a simple process of marking andphotographing with a digital camera.
Its effectiveness and novelty have been recognized by the
Ministry of Land, Infrastructure, Transport and Tourism. In April
2022, it was adopted as a finish control standard, and in May, it
was registered in NETIS (New Technology Information System).
In the pavement industry, where ICT has been progressing, weare working to make this product the de facto standard in theindustry as a product that will revolutionize the inspection andmeasurement process, which has not changed in several decades.

(FY)

Yokogawa Bridge Holdings Integrated Report 2022

38

Business Base Strategies
Technology Strategy

Cultivate DX specialists

DX Strategy

DX Visiona) U s e D X t o r e f o r m w o r k p r a c t i c e s , i m p r o v e
p r o d u c t i v i t y, a n d d e l i v e r t h e n e w “ 3 K s ” a tworksites (kyuryo [wages], kyuka [time off], andkibo [prospects])b) Use digital tools to reinforce safety measuresc) Use digital tools to preserve and utilize the skills of
Yokogawa’s master engineersd) Use DX to support and accelerate growth in theengineered structure systems businesse) Use DX to explore new business opportunities

Realize our DX vision
Upgrade core IT systems
Promote user-led DX at Group companies

Money

AssetsExpand IT-related investment

Build IT infrastructure

PeopleInformation

Cultivate DX specialists

Acquire knowledge and tech

Establish user rules for IT services
Implement IT security measures

DX Promotion
OfficeInformation
Planning Office

We define the YBHD Group’s “DX specialists” asindividuals who understand what DX is and have acertain level of IT knowledge and literacy or individuals
who are capable of carrying out IT-related projects. We
will begin cultivating them in fiscal year 2022.
We will conduct DX assessments (visualization of skills
and knowledge) and IT literacy education throughe-learning for employees in back office departments inorder to raise the overall level of IT literacy. We will also
select personnel with a certain level of DX skills andknowledge to receive specialized training in AI, data
science, no-code/low-code development, etc. In
addition, we have established a new internal
certification system for personnel who are recognized
as being able to solve business issues in their own
departments and work on business reforms by utilizing
the knowledge they have acquired through specialized
training. We aim to certify around 50 employees
Groupwide during the Sixth Medium-Term Plan period.

Build IT infrastructure
We will expand IT investment to actively introduce new
networks, PCs, and other IT equipment, as well as newtechnologies, products, and services that support
information sharing and teamwork.
We will also build a new core IT system and promote
digitization and system linkage of peripheral operations
so that we can respond quickly and flexibly to drasticchanges in the business environment. We will support
the realization of work-style reforms and productivity
improvement by establishing a base for DX promotion
in back office departments. This includes thedigitization of order forms, invoices, and other orderrelated tasks, the establishment of a data utilization
platform for data-driven management, a further shift topaperless systems for internal documents, and an
improvement of workflow.

Basic Policy on R&D
W ith a view to strengthening competitiveness inexisting markets, expanding into new markets, being
environmentally friendly, and promoting Construction
DX, we have established the following basic policy in
the Sixth Medium-Term Plan.
a) Raise technology level to maintain competitivenessb) Develop technologies to support moves into newmarketsc) P rovide environmentally friendly technology tosupport society’s decarbonizationd) A ctively promote Construction DX to improve
quality, productivity, and safety

Technology strategies in each businessI n t h e b r i d g e b u s i n e s s , t e c h n o l o g i e s re l a t e d t omaintaining and upgrading aging bridges are becoming
increasingly important. Accordingly, we will focus, inparticular, on the development of methods to replacegirders and decks, such as the NY Rapid Bridge andthe STEEL-C.A.P. method, as well as technologies forhigher durability, repair, and reinforcement related tofatigue and corrosion. The market for bridge-related
Business segment
BridgeEngineering

Yokogawa TechnoInformation Service Inc.

Utilize know-how as
the Group’s information
processing company tosupport Groupwide DX

Precision
Equipment

New bridge construction /MaintenanceYokogawa Bridge Holdings Integrated Report 2022

Loading test of composite girders using the STEEL-C.A.P. method

Technology strategies in Sixth Medium-Term Management Plan

Basic policy on R&D• Further develop technologies to support maintenance and upgrade work
• Increase added value in bridge-related products and develop new productsa)a)Engineered structure
system• Reduce costs and improve functionality to boost sales (streamline designs, adopt
multi-story structures)a)Civil engineering /Construction andmachinery steel• Expand applications for civil engineering steel structures (port facility upgrades,
offshore wind turbines, etc.)• Promote R&D in environmental technologies (next-generation water-processing
facilities)• Commercialize Phovare – Pitch Hovering Arena

b)
c)
b)

Precision equipment
manufacturing• I m p ro v e p e r f o r m a n c e o f h i g h l y d a m p e d s t r u c t u re s f o r s e m i c o n d u c to r
manufacturing equipment

a)

Information processing• Increase competitiveness by adding / improving functions of software-aided
design and manufacturing• Support DX rollout at Group companiesa)d)• Actively promote the use of Construction DX at production sites• Reduce environmental impact in business activitiesd)c)Groupwide technology strategy

39

New Medium-Term Management Plan

In order to achieve sustainable corporate growth andcreate new value in the midst of the drasticallychanging social conditions around the YBHD Group,
we will seek to achieve our vision by developing a DX
platform through the concentrated investment ofmanagement resources and the establishment of an
implementation system under the slogan “Harnessing
Digital Tools to Transform, Grow, and Support.”

The YBHD Group conducts R&D with the objective of“creating technologies that enhance the Group’s
corporate value and contribute to sustainable growth,
thereby leading to business expansion.” Our units for
conducting R&D are the Technical Research Laboratory
and the development and engineering departments ofeach operating company. The Technical ResearchLaboratory is mainly responsible for basic technology
research, while each operating company develops new
construction methods and adds or improves thefunctionality of existing products related to its own
business. We currently have an Engineering Management
Office to oversee these technology development efforts
overall, but we plan to start a Groupwide organization tolead our medium- to long-term technology strategy forthe entire group in order to further improve the efficiencyof technology development.

products such as “cusa” is also expanding, and we willcontinue to develop and improve these products tomeet customer needs.
In the engineering business, our engineered structure
system business will aim to improve productcompetitiveness in order to increase market share, reduce
costs by streamlining designs and manufacturing, andaccelerate R&D to expand features such as multi-story
structures. Our civil engineering / construction andmachinery steel business will aim to commercialize andlaunch products for civil engineering and building
structures such as port facility upgrades, undergroundrivers, and offshore wind turbines, as well as environmentrelated technologies such as next-generation waterprocessing facilities in order to meet social demands fordisaster prevention and mitigation, greater national
resilience, and reduction of environmental impact.
In the precision equipment business, we intend toenhance product value by improving and adding
functions to existing products based on the latest market
and customer needs, and to invest management
resources intensively in Groupwide DX support, which isa key issue in the Sixth Medium-Term Plan.
Common issues throughout the Group include thepromotion of Construction DX at production sites andthe reduction of environmental impact in businessactivities. We will aggressively pursue this in all of ourbusiness segments, including the use of new ICT andnew materials.

Yokogawa Bridge Holdings Integrated Report 2022

40

Business Base Strategies

Human Resources Strategy
In view of the fact that the construction industry’s
shortage of workers is becoming even more serious
due to Japan’s declining birth rate, aging and declining
population, and young people’s avoidance of theindustry, we will consider necessary measures from alonger-term viewpoint based on three basic policies:
improve business efficiency across the whole Group;
attract, retain, and train human resources, and secure
work for employees; and reform work practices.

Basic Policies

Train human resources
We will also consider and implement measures tocreate next-generation leaders by emphasizing talentmanagement, with the aim of invigorating personnel
rotations, especially among young employees, for the
purpose of developing multi-skilled human resources
and for optimizing the allocation of personnel acrossthe Group.
In order to promote the further success of overseas
personnel, we will work to strengthen cooperation
between each operating company and Yokogawa Techno
Philippines, Inc. In addition, we will continue to actively
recruit female staff in general roles and provide them with
opportunities to develop their skills while striving to createa rewarding work environment where they can develop
their careers on their own initiative.

Attract human resources
While implementing stable new graduate recruitment
and mid-career recruitment with clear recruitment
targets, we will focus on securing and maintaining workfor employees and encourage the passing on oftechnical skills and know-how to ensure competitivenessover the medium to long term.

ESG Initiatives
Seeking to realize a sustainable society, we will advan0ce
the development of sustainable cities and communities
through the improvement of social infrastructure, which is
the YBHD Group’s business, in an effort to solve various
issues faced by local communities. Furthermore, we will
help to solve social issues such as global warming,
effective use of limited resources, declining birth rate andaging population, and reform of work practices, which
are required regardless of industry.

3 Governance
As a Prime Market-listed company, we will establish astrong governance system that complies with therevised Corporate Gover nance Code, including
implementation of board effectiveness evaluations andenhancement of cooperation with outside directors.
In addition, in order to respond to the accelerating
digitalization of society, we will actively promote DX andexpand the adoption of new IT services while ree x a m i n i n g a n d c o n t i n u o u s l y s t re n g t h e n i n g o u rmeasures for information security, the risks of which arefeared will increase.

Focus initiatives under the Sixth MediumTerm Plan
1 Environment
To achieve carbon neutrality by 2050, we will switch to a
CO2 emission reduction plan for purchased electricity
and install solar power facilities. By carrying out theseclimate change countermeasures, we plan to reduce
CO2 emissions in our business activities (Scope 1 and 2)
by 20% from the fiscal 2020 level by fiscal 2024. We will
also work with relevant parties to reduce CO2 emissions
during the manufacturing process of steel and other raw
materials (Scope 3). As part of our long-term efforts, wewill actively engage in the development of technologies
for reducing environmental impacts, including theeffective use of low-carbon materials, offshore windturbines, and more efficient water processing facilities.
Furthermore, as a countermeasure against natural
disasters, which have been increasing in recent years,
we will focus on developing disaster-resistant products
and providing upgrading services and maintenance forurban infrastructure.

Environment● Capture demand from national

resilience plans
Develop underground river structures,seawalls, and bridge deck replacement
methods● Develop green energy and technologies with low environmental impact
Make effective use of offshore windturbines, next-generation water
treatment facilities, low-carbon
materials, etc.
● Reduce CO2 emissions

Switch to renewable energy, installsolar power facilities, etc.
FY2024 20% reduction
FY2030 50% reduction
FY2050 C arbon neutral

New Medium-Term Management Plan

Amid the chronic shortage of human resources in theconstruction industry, we will consider individual
measures in accordance with the policy below in orderto implement proactive personnel measures, such as
employment promotion, improvement of compensation
and working environment, and human resource
development through invigoration of personnel rotation,in order to attract the human resources needed for thecontinuation of the Group’s business.
a) Improve business efficiency across the whole Groupb) A ttract, retain, and train human resources, andsecure work for employeesc) Reform work practices

We will examine new work practices with an eye tocorrecting long working hours, responding to life after
the pandemic, and balancing career development andlife events. In addition, to prevent the loss of personnel,
both young and experienced, we will consider expanding
benefit programs and continuously improving
compensation for senior employees.

* vs. FY2020, Scope 1, 2

● TCFD-based information disclosure

Social● Promote diversity● Reform work practices● Train human resources, pass on

Chronic labor shortage due to Japan’s aging / shrinking population
Basic Policies● 
Improve business efficiency across the whole Group● 
Attract, retain, and train human resources, and secure work for employees● 
Reform work practices
Attract human resourcesP ass on technological skills and know-howHire people with the goal of maintaining the Group’s
longer-term competitiveness● 
Further improve the retention rate
Create motivating workplaces●

Personnel plan
Increase Group headcount by around 200 toroughly 2,150 by FY2024 in line with businessexpansion

41

Yokogawa Bridge Holdings Integrated Report 2022●

Train human resourcesE nhance personnel assets
Step up training initiatives

Create a diverse workforceH ire people from different backgrounds (new graduates, mid-career)● W ork with overseas Group subsidiaries to train and utilize talented personnel● Explore career design paths for female staff in general and managerial roles●

2 Social
As the aging of urban and transportation infrastructure
becomes a social issue, we will contribute to safe andsecure city and community development andmaintenance by providing high-quality and highly
durable infrastructure. We also help to build a strong,risk-resistant economic foundation by providing andmaintaining a high-quality logistics network to prepare
for new risks that could have a significant impact on
economic activities. In the event of large-scale natural
disasters, in particular, such as an earthquake ortorrential rain, we will conduct emergency inspectionsof our products, and we will also establish a system toprovide prompt support to affected areas based on
disaster-relief support agreements.
Meanwhile, in light of the fact that new working
practices, such as teleworking, have taken root due tothe spread of COVID-19, we will examine ways ofworking that can cope with various situations, as well
as develop an environment and systems that enable
diverse human resources to play active roles.

technical skills● Support disaster recovery

Carry out emergency checks andprovide temporary bridges● Eliminate serious workplace

accidents and incidents
Enforce safety measures, improve
on-site installations, and use DX to
improve safety

Governance● Reinforce risk management

Group internal control system,
voluntary audits● Enforce compliance
Compliance Committee, internal
whistleblower system● Strengthen the corporate
governance system
Evaluate board effectiveness, improvecooperation with outside directors● Implement IT security measures
Reevaluate and strengthen current
measuresYokogawa Bridge Holdings Integrated Report 2022

42

Striving to Help Realize a Sustainable Society—YBHD Group’s ESG Initiatives—
In its Sixth Medium-Term Management Plan, the YBHD Group incorporated environmental, social, andgovernance (ESG) initiatives as a business base strategy. Accordingly, it will carry out specific measures to help
realize a sustainable society and enhance corporate value over the medium to long term.

Promotion Structure
Sustainability policies and measures are considered by
the Sustainability Committee, which was established as
an advisory body to the Board of Directors, andimportant policies and measures are reported to theBoard of Directors for deliberation and decision after
submission to and discussion by the Management
Committee. The Sustainability Working Group, which isa subordinate body of the Sustainability Committee,
incorporates the decided policies and measures intobusiness activities and promotes specific initiatives incoordination and

Assigning of priority order to materiality candidate items

Blue: Opportunities   Black: Risks

Environment
1 Responding to the material risk associated with climatechange and natural disasters
2 Responding to the demand for development of disaster-resistant products

Impact on stakeholders

Materiality examination scope

⓾


123
456
789


3 Responding to demand for retrofitting services and maintenance associated with National Resilience Promotion

4 Ensuring the stable supply of products

Holding company: Yokogawa Bridge Holdings Corp.
Board of Directors
Supervision

Management Committee Chair: President
Direction andsupervision

Submission anddiscussion

Sustainability Committee Committee Chair: Executive officer
Instructions andcoordination

5 Quality assurance
6 Support for disaster recovery

Submission anddiscussion

Reporting

Guidance, supervision,
Measurement andand coordination
Reporting
Each operating company
Coordination and Collaboration
Customers and business partners

Yokogawa Bridge Holdings Integrated Report 2022

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

SocialSustainability Promotion Structure

Sustainability Working Group43

2. Prioritizing and weighting of materiality candidate items

7 Safeguarding occupational health and safety
8 Responding to global health issues

High

Foundation of Value Creation

Disclosure of Information
We will strive to disclose information to stakeholders in a timely and appropriate manner and ensure transparency.

1. Selection of materiality candidate items for examination

Impact on YBHD

Sustainability Promotion Structure(1) Among the various sustainability issues, we will identify those that the YBHD Group should give priority to as
materiality (key issues) and reflect them in our medium-term management plan. Each materiality will be
reviewed as necessary.
(2) Materiality identification will be discussed by the Sustainability Committee and approved and monitored by
the Board of Directors.
(3) T he Board of Directors will monitor the progress of goals and initiatives with respect to individualsustainability issues.

Materiality Identification Process

High

Basic Sustainability Policy
Basic Approach
Under the corporate philosophy of “Contribution to society and the public, and sound management,” the YBHDGroup aims to realize its management vision of “long-term protection of bridges,” “multifaceted steel structureengineering,” “creation of a resilient social environment and harmonious coexistence with the natural environment,”
and “construction of a robust operational foundation,” as well as the pursuit of sustained expansion. Based on thisvision, our basic sustainability policy is to contribute to the development of society by creating and protecting highquality products and passing them on to future generations.
We will actively and proactively work to resolve social, environmental, and other sustainability issues with a view
to not only reducing risk but also increasing corporate value over the medium to long term, based on ourrecognition that this will lead to new revenue opportunities.

9 Securing talent and promoting diversity⓾ Strengthening of talent management Labor productivity enhancement Respecting the human rights of our employees, and the employees of partner companies and suppliers Prevention of overwork and promotion of work-life balance, and realizing equivalent compensation forequivalent work
Governance Fair transactions and prevention of corruption Information security management

Yokogawa Bridge Holdings Integrated Report 2022

44

List of Materiality Items and KPIs
From an ESG viewpoint and in light of the various Sustainable Development Goals (SDGs) and the direction of the YBHDGroup’s business, we have identified materiality (key issues) that should be prioritized by the Group and are working
actively to resolve various issues in society to help realize a sustainable society.
In fiscal 2022, we revised the materiality items, combining two items in the area of recruitment, two items in the area ofworking conditions, and two items in the area of fair business practices into one item each, identifying 15 material issues
and setting 32 key performance indicators (KPIs).
ESG

Materiality (Key Issues)

MeasuresEstablishing systems to facilitate business
continuity

1 Responding to material risk associated withclimate change and natural disasters

Specific Content
BCP formulation and continued effective utilization and training

Implementation of BCP training

20 times per year

More than 20 times per year

CO2 emissions reduction●

Promoting the adoption of renewable energy

CO2 emission reduction rate, short-term target (20% in FY2024)(Base year: FY2020, Scope 1 and 2)

Up 16.4%

ーContinuation of a 100% steel recycling rate

100%

100%

R&D expenses

0.4 billion yen

0.8 billion yen

Bridge maintenance business net sales

24.0 billion yen

More than 24.0 billion yen

Capital expenditures (totaling at least 18.0 billion yen in FY2022–2024)

4.7 billion yen
1,962** Including equity method
affiliates.

ー

2 R esponding to demand for development ofdisaster-resistant products

Developing products and construction
methods that will contribute toward
reducing the damage suffered in a natural
disaster●Development of earthquake-resistant products● evelopment of products and construction methods that facilitate earlyDrecovery in the event of an unanticipated disaster3 Responding to demand for the retrofitting
services and maintenance associated with
National Resilience Promotion

Developing technologies and products
relating to the improvement, maintenance,
and upgrading of the highway network● evelopment of technologies for enhancing and upgrading theDfunctionality of existing infrastructureD evelopment of maintenance-friendly aluminum and stainless steel
products

4 Ensuring the stable supply of products

Strengthening production and construction
systems

5 Quality assurance

Preventing the reoccurrence of quality
non-conformance incidents

6 Support for disaster recovery

Strengthening systems for providing rapid
supportInfectious disease response measures andputting in place the environment neededfor employees to maintain and improvetheir healthSocialR educing wastage of materials and improving the recycling rate
Develop products and provide technologies with minimal environmental
impact● Reusing materials and reducing electricity consumption at all facilities●●●

Strengthening BCP-related investment, facilities, and personnel●

 uality management system utilization and continuous improvement
QReflecting information obtained at every stage, from planning and design
through to manufacturing and construction, and information obtained
through inspections and diagnostics

Construction grades for bridge businessB uilding the systems needed to allow high-priority response in the eventof an incident and the provision of related equipment

Conducting disaster response training

●

●

●

R educing the incidence of fatal accidents to zero through measures toeliminate the danger from tasks that involve working at heightsP utting in place the environment needed for teleworking and flexible
work hours and implementing these measures● Promoting health management that makes effective use of “collabohealth” (collaboration between Health Insurance Society providers,companies, and employees)

Average of 80 points or
higherFatal accidents

Response training: once ayear
Support for disasterrecovery: 5 cases0

Number of accidents causing four or more days of lost worktime

60Frequency rate

0.84

ー

Severity rate

0.13

ー

Average number of lost workdays per casualty

156

ーApplication for the Health & Productivity Management Outstanding Organization Recognition
Programー

Apply

Response training once a
year
0

●

Employment rate of persons with disabilities (average for 5 operating companies)

9 Securing talent and promoting diversity

Percentage of female employees out of all employees

14.6%

15% or higher

5.7%

ー

100%

100%

36

36 or more⓾ Strengthening of talent management

Support for self-directed career development

Target: 256 people
Support implementation
rate: 100%

Target: 267 people
Support implementation
rate: 100%

 Labor productivity enhancement

Effective utilization of technology (with ICT
as the core element) and business process
improvement

Steady increase in the rate of male employees taking childcare leave
Return-to-work rate after childcare leave (= actual number of employees who returned to work /number of employees scheduled to return to work after childcare leave × 100)
Utilization of foreign human resources (including transfers and trainees from Group companies)
Support for acquisition of necessary qualifications* according to the type of job* Professional engineer / First-class architect / First-class civil engineering management
engineer / First-class architectural construction management engineer / Construction
accountant (1st and 2nd classes)
Establishment of an internal certification system for DX personnel and certification of about 50
employees (50 in FY2024)
Expansion of the area of ordered engineered structures through promotion of DX (1.3 million m2
or more in FY2024)ーー

1.01 million m2ーPercentage of harassment training provided through e-learning

36%

100%

Percentage of construction sites implementing 7 days off in a 4-week schedule: 100% (FY2022),
8 days off in a 4-week schedule: 100% (FY2023
and FY2024)

7-days-off in 4 weeks
Implementation rate: 80.3%

7-days-off in 4 weeks
Implementation rate: 100%

Effective utilization of diverse human talent●●E ffective utilization of site visits, internships, and the holding of seminars
in schools and collegesP roactive recruitment and effective utilization of human talent regardlessof nationality, gender, or age, including persons with disabilities andsenior citizensJ ob rotation using a self-directed application system, and appropriate
personnel allocation● Support to help employees secure professional qualifications andimplement various types of training● Respecting the human rights of ouremployees, and the employees of partnercompanies and suppliers

Thorough implementation of mutual respect Prevention of overwork, the promotion ofwork-life balance, and realizing equivalent
compensation for equivalent work

Steady efforts to reduce working hours andthe promotion of leave-taking
Commitment to fair remuneration

 Fair transactions and prevention ofcorruption Information security management

45

Average of 83.1 pointsー

Recruitment plan: 75 hires
Actual: 66 hires, 88%
achievement rate
2.23%

Promotion of recruitment activities

Governance

Personnel (2,150 in FY2024)

Yokogawa Bridge Holdings Integrated Report 2022

Thorough implementation of complianceand transaction record management
Thorough implementation of effective
corporate governance and risk management

Preventing the leaking of corporate
business secrets

Related SDGs●●

D evelopment of new, labor-saving construction methods, promotion of R&D,
and promotion of digital transformation (DX)Implementation of the YBHD Code of Corporate Behavior and continuing
educationA ctive promotion of incentive systems and of the various types of leavesystem● Establishment of internal systems in relation to various laws●

Achievement of recruitment plan for the fiscal year

Recruitment plan: 55 hires
Achievement rate: 100%
2.3% or higher●F ormulation of manuals and rules, compliance with their stipulations,and related education

Number of serious noncompliance incidents

0

0

●

A uditing of compliance status and appropriate utilization of the internal
whistleblowing system

Conducting independent audits in all departments of each Group company based on the Group’s
internal control system and auditing regulations, as well as the identification of events and theimplementation of preventive, remedial, and recurrence-prevention measures

Once a year

Once a year●A ppropriate operation of the Compliance Committee and Sustainability
Committee

Auditing department personnel and implementation rate of education on internal controls

Personnel: 31
Education implementation
rate: 100%
Twice a year●

Further improvement of the system for appropriate risk management

Conducting meetings between the Group’s auditors and the head of the Audit Office

Personnel: 26
Education implementation
rate: 100%
Twice a year●

Improvement of the rules for preventing data leaks, and implementationof related training

Number of serious information security incidents

00Implementation of training on data preservation in the event of a disasterOnce a year

Once a year
Yokogawa Bridge Holdings Integrated Report 2022

Foundation of Value Creation

8 Responding to global health issues

Thorough prevention of serious accidents

FY2022 Targets●●

7 Safeguarding occupational health and safety

FY2021 Results●

Reducing the environmental footprint ofbusiness activities

Environment

KPI (Key Performance Indicator)

46

Complying with TCFD Recommendations:—Toward the Realization of a Decarbonized Society—

The international community as a whole urgently needs to make the transition to a decarbonized society, as
climate change is resulting in more frequent extreme weather events and more severe flooding. As acorporate group responsible for social infrastructure development, the YBHD Group has traditionally worked
to solve various issues arising from climate change through its business, including the development ofdisaster-resistant infrastructure, long-term protection of bridges, and support for disaster recovery.
The Group recognizes climate change as an important management issue and identified “responding tomaterial risk associated with climate change and natural disasters” as a materiality (key issue) in 2020.
Furthermore, in December 2021, we announced our support for the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations, and in May 2022, we set out a goal of achieving carbon neutrality by
reducing CO2 emissions (Scope 1 and 2) in our business activities to zero by fiscal 2050. To achieve this goal,
we have established a mid-term target of a 50% reduction* in Scope 1 and 2 CO2 emissions in fiscal 2030 anda short-term target of a 20% reduction* in fiscal 2024.
In the future, we will further advance efforts to achieve carbon neutrality and will disclose the results andother information in accordance with the framework of the TCFD recommendations. In addition to the YBHDGroup’s efforts, we will contribute to the realization of a decarbonized society through dialogue andcollaboration with investors and other stakeholders.
* The base year is fiscal 2020.

Governance
The Sustainability Working Group, which is a suborganization of the Sustainability Committee, is
responsible for promoting the implementation ofpolicies and strategies decided by the Management
Committee and the Board of Directors. The
Sustainability Working Group consists of the generalm a n a g e r s i n c h a rg e o f g e n e r a l a ff a i r s a t e a c hoperating company and handles the promotion of CO2
emission reduction measures at operating companies,
monitoring progress, and other practical matters.
Agenda items discussed and decided by theManagement Committee and the Board of Directors
are incorporated into the initiatives of the businessexecution divisions of each operating company. We
will strive to reduce 2 emissions in our supply chain(Scope 3) in coordination and collaboration with therelevant parties. The Management Committee and
Board of Directors monitor, direct, and supervise thestatus of efforts to address materiality, including
climate-related issues, at least once a year.

Track record of decisions made on climate change
In fiscal 2021, the Sustainability Committee met three times, and theissue of climate change was brought up to the Management
Committee and the Board of Directors.
Board ofDirectors

Matters on climate change issues discussed,
decided, and reported
Determination of materiality related to climatechange▪ Responding to material risk associated withclimate change and natural disasters▪ Responding to demand for development ofdisaster-resistant products▪ Responding to demand for retrofitting services
and maintenance associated with National
Resilience Promotion▪ Support for disaster recovery● 

FY2020Initiatives to disclose information based on TCFD
Recommendations● Declaration of CO2 reduction targets● Efforts to reduce CO2 emissions● 

FY2021

47

Yokogawa Bridge Holdings Integrated Report 2022

We conducted a scenario analysis to determine how
climate change would affect the Group’s operations
and finances. The scope of the analysis covered theGroup’s major businesses (Bridges, Engineering, andPrecision Equipment), and the period of the analysis
was from the present to around 2050.
The bridges and engineered structures provided by the
YBHD Group use steel, cement, and other materials that
emit a large amount of CO2 during their manufacture. CO2
emissions are also generated from the transportation ofthese raw materials and building materials, and from theoperation of heavy machinery during construction. In
addition, as requests for environmental considerationfrom local governments and private-sector companies,
which are our main customers, are increasing year by
year, we are developing technologies such as low-carbon
construction methods and low-maintenance products,
and pursuing a 100% recycling rate for steel materials
throughout the Group.
Given these business characteristics, we haveidentified the following as major risks: increased
construction and procurement costs due to tighter
regulations on CO2 emissions and the introduction ofa carbon tax; damage to our own facilities andsupply chain disruptions due to increased and more
severe extreme weather events; and a decline inlabor productivity at construction sites due to chronic
temperature increases.
As for opportunities, we have identified the
expansion of the market for national resilience,d i s a s t e r p re v e n t i o n , d i s a s t e r m i t i g a t i o n , a n dmaintenance, as well as the increasing demand forenvironmentally friendly bridges and buildings.
Going forward, we will further refine our analysis,
including quantitative analysis of the financial impactof particularly important risks and opportunities, andreflect them in our medium-term management planand business strategies.
Process for identifying climate-related risks and opportunities
STEP 1

Identify the risk and opportunity factors affecting
business at each stage of business activities for eachtarget business

STEP 2For each risk and opportunity factor identified, consider
the specific nature of its impact, the likelihood of being
impacted, the magnitude of the impact, and when theimpact might occur, and identify the final business impact

Major risks and opportunities arising from climate change and their impact on business
Risks/opportunities and impact
on business

Category

MagniAffectedTime
tude ofbusinesses*1 frame*2
impactDetails

Carbon tax on CO2 emissions during factory production and on-site
Increase in operating and procurement
construction, as well as increased operating and procurement
costs due to introduction of carbon pricing
costs if the carbon tax is passed on to material prices.
Shrinkage of construction market due tointroduction of carbon pricing and tighter Shrinking market for bridges and buildings that use steel andMarketRisks
regulations (decrease in construction and cement, which emit a lot of CO2 during manufacturing.
capital investment)
Increased prices due to the introduction of new technologies toIncrease in steel prices and shortages
Transition Technoloachieve decarbonization of the steel manufacturing process
Risks due to introduction of low-carbon
gyand steel shortages in Japan due to the export of low-carbon
technologies
steel overseas.
Increased demand for bridges that are easy to maintain.
Opportu- Increased demand for environmentally
Increased demand for engineered structures with shortnity
friendly bridges and buildings
Products
construction periods and lower steel usage.
andImproved competitiveness through the use of low-carbon
services Opportu- Improved competitiveness throughmaterials and increased productivity to meet the demand fornity
low-carbon construction
CO2 reduction.
Increased incidents of heatstroke andIncreased incidents of heatstroke due to rising temperatures,
reduced work efficiency due to rising
Chronic
Risks
leading to lower productivity and difficulty in securing personnel.
temperatures, and increased costs for
Additional safety measures are required, incurring costs.
heatstroke countermeasures
Extreme weather conditions impacting
Typhoons and torrential rains frequently cut off procurement
Risks procurement networks, disrupting or
networks, limiting operations and leading to shut down ofdelaying construction
factories and construction sites.
Acute
Damage to own facilities due to extreme
Flooding and strong winds caused by extreme weather conditions
Risks
weatherdamage the company’s own sites.
Expansion of national resilience, disaster Increased demand for construction of highly durable, easy-toOpportuPhysicalprevention, mitigation, and maintenance maintain bridges and disaster-resistant civil engineering steelnitymarkets
structures.
Increased demand for bridges and civil steel structures that
Opportu- Increased demand for highly resilientnity
structures
can be easily restored from damage.
AcuteDemand for bridge replacement to address flooding risks, andOpportu- Demand for relocation from areas with low
increased demand for engineered structures due to relocationnity
elevation and high risk of floodingof facilities.
Increased demand for technologies such as robotization andOpportu- Increased demand for unmanned
remote management to safely and quickly carry out disasternity
construction in the event of a disasterrecovery activities.
Policy andregulations

Risks

B, E, PE

Mediumterm

MediumB, E

Mediumterm

Medium

B, E

Long term

Large

B, E

Medium
term

Small

B, E

Medium
term

Small

B, E

Now

Large

B, E, PE

Now

Large

B, E

Now

Large

B, E

Now

Large

B, E

Mediumterm

MediumB, E

Mediumterm

MediumB, E

Mediumterm

MediumFoundation of Value Creation

In its Basic Sustainability Policy formulated in 2021,
the YBHD Group declared that it will actively andproactively work to resolve social, environmental,
and other sustainability issues. The Sustainability
Committee, which is a cross-Group body, looked atwhether climate change is a Group materiality (keyissue), and it was decided as such by the Board of
Directors.
The Sustainability Committee reviews agenda items
on basic management policies, business activities,
and corporate governance policies and strategies
related to sustainability, including climate change, and
ESG more broadly. Important policies and measures
are reported to the Board of Directors for deliberationand decision-making after discussion by theManagement Committee. The Sustainability
Committee is chaired by an operating officer of amajor operating company and consists of executives
and operating officers from each operating company.

Strategy*1: B: Bridge Business, E: Engineering Business, PE: Precision Equipment Business*2: Time frames considered are now, short term (2-3 years), medium term (around 2030), and long term (around 2050).
Yokogawa Bridge Holdings Integrated Report 2022

48

Risk Management

Measures to address climate change
Achievement of CO2 reduction targets
Cooperation with industry associations and suppliers in their efforts to reduce CO2 emissions● Cooperation with steel manufacturers in the development of decarbonization technologies● A pplication of new materials such as FRP-balsa materials, lumber, and low-carbon concrete to theGroup’s business fields● I n the precision equipment manufacturing business, commercialization of structures made of materials
other than steel, mainly for the semiconductor industry●●

Responding to policy, legal, market,
and technology risks associated withthe transition to a low-carbon society

Introduction and use of ICT for working environments and health management
Promotion of labor savings through robotization of welding operations and use of ICT● Provision of air-conditioned clothing, etc., in the workplace● Strengthening BCP-related investment, facilities, and personnel● BCP formulation and continued effective utilization and training● U tilization of products and construction methods that facilitate early recovery in the event of an
unanticipated disaster●●

Responding to physical risks due torising temperatures, more frequent
extreme disasters, etc.

Provision of Disaster-prevention Pre-cast Sea-walls to reduce the damage caused by tsunamis andstorm surges● P rovision of internal water pressure-compatible tunnel segments for underground rivers that are
prepared for heavy rainfall disasters● Provision of technology for replacing aging road bridge decks● Provision of maintenance-related products made of aluminum and stainless steel● Provision of hybrid steel and wood products● R esponding to increased orders and production expansion by developing a DX-based production
management system and sales management system● A pplication of effective elemental technologies such as electric furnace steel, low-carbon concrete,and environmentally friendly paints; use of the new technology of decarbonized processing machinery(electric and hydrogen); and the promotion of technological developments such as pre-casting andrapid construction methods to shorten construction periods on site● A ccurately identifying demand for bridge replacement and facility relocation, and strengthening
technical proposal capabilities● D evelopment of technologies that contribute to improving safety and workability at disaster sites bypromoting construction DX● 

Responding to business opportunities
created by climate change mitigation
and adaptation to a low-carbon society

In response to “physical” risks to our own sites due
to extreme weather, we will prepare for early recovery
from damage by formulating a business continuity
plan (BCP), continuing its effective utilization andtraining, and strengthening our BCP investments,
facilities, and personnel. In addition, the increase inheatstroke incidents due to rising temperatures is afactor in the decline in productivity and the shortage ofworkers, making it essential to address this issue fromthe perspective of safety. Currently, air-conditioned
clothing is provided at workplaces, and in the future,
we will advance manpower saving through the use of
ICT and robotization.

In addition, in preparation for the occurrence oflarge-scale natural disasters such as storms andfloods due to climate change, we have developed abusiness continuity plan and conduct emergency
drills to minimize the impact of such disasters.

Indicators and Targets
In May 2022, we announced our long-term goal of“achieving carbon neutrality by 2050” as a response
to climate change, along with establishing short- andmedium-term CO 2 emission reduction targets as
milestones toward achieving this goal.
T h e s e t a rg e t s a r e p o s i t i o n e d a s o n e o f t h e“business base strategies” to “establish a robust
business base for the next 100 years” as set out inour Sixth Medium-Term Management Plan (fiscal
2022–2024), which started in fiscal 2022, and will bepromoted strongly throughout the Group along with
the Medium-Term Management Plan.
At the same time, we will work with suppliers,
customers, and other stakeholders to reduce Scope
3 emissions.

CO2 emissions

CO2 emissions reduction target(t-CO2)

FY2020

FY2021SCOPE 1

2,539

4,856

SCOPE 2

10,77910,647SCOPE 1 and 2 total

13,31815,503SCOPE 3

332,518

361,007

SCOPE 1, 2, 3 total

345,836

376,510

Scope

SCOPE
1&2

Base year Target year

FY2020TargetFY202420% reduction

FY203050% reduction

FY2050Carbon neutrality

Development of an FRP sandwich deck

Foundation of Value Creation

To address risks associated with climate change
related to “transition” such as stricter regulations topromote a low-carbon society and market contraction,
we will steadily reduce CO2 emissions (Scope 1 and 2)
in our business activities to achieve our CO2 reduction
targets. In fiscal 2021, we established CO2 reductiont a rg e t s a n d w o r k e d t o s a v e e n e rg y, c o n s e r v eelectricity, and install solar power generation facilities.
We will also work to reduce CO2 emissions from the
manuf a c tur ing pro c e s s o f s t e el and o ther r a w
materials (Scope 3) by supporting technologicalinnovation in cooperation with related parties, and wewill promote the development of new structural forms
with a view to making use of new materials.

The Sustainability Committee identifies risks arising fromclimate change and assesses their impact on our business.
The identified risks, as well as countermeasures, areexamined under a system in which the Sustainability
Committee and the Sustainability Working Group, which isin charge of practical matters, work together. Particularly
important issues are reported to the Board of Directors fordeliberation.

(Construction of a pedestrian bridge in Imanoura Park, Iwata City, Shizuoka Prefecture)
Ryojiro Kato, Technical Research Laboratory, Yokogawa Bridge Holdings Corp.
Pedestrian bridges in Japan are showing deterioration due to deck corrosion. There are also many roadbridges in Japan with narrow sidewalk widths or no sidewalks. Thus, there is a growing need to add
sidewalks to these existing road bridges or to widen them to improve convenience and safety for residents.
Against this background, Yokogawa Bridge has developed “FRP sandwich decks” for sidewalks incollaboration with Yamaha Motor Co., Ltd.
FRP sandwich decks are made with balsa wood, which is a lightweightwood familiar to people who make model airplanes, as the core material, and reinforced withglass fiber reinforced plastic on the top and bottom. Compared to conventional decks, it is lighterand more durable, and the fast-growing balsa wood, which is systematically planted, fixes CO2 inthe deck, thus contributing to the SDGs and carbon neutrality.
This FRP sandwich deck was used for a pedestrian bridge in Imanoura Park in Iwata City, Shizuoka
Prefecture. Although there have been cases of its use as road bridge decks overseas, this is only thesecond case in Japan. After confirming its performance through various tests, construction work was
Imanoura Park Pedestrian Bridge
carried out, and the bridge was successfully opened to traffic on March 27, 2022.
Solar power facilities installed in the new No. 2 Experimental Building of theTechnical Research Laboratory

49

Yokogawa Bridge Holdings Integrated Report 2022

Installed watertight panels at the entrance to the Osaka Plant building in
preparation for flooding damage due to heavy rains, etc.

Yokogawa Bridge Holdings Integrated Report 2022

50

Environment

SocialEnvironmental Initiatives

Social Initiatives

Business activities consume energy (including electric
power) and resources, and generate both greenhousegas emissions and waste. We have been working toclarify this environmental footprint in terms of inputs andoutputs as a basis for implementing activities to reduce
our environmental footprint.
InputsEnergy● Electric power● Gasoline● Diesel● Kerosene
● Gas
Water
Main construction
materials (steel)

25.56 million kWh
498 kL795 kL110 kL
691,000 m3
72,000 m3
128,000 t

Outputs
CO2 emissions
Construction waste
Steel-related emissions
Steel recycling rate

15,503 t
8,989 t8,162 t100 %Reducing theEstablishingenvironmental footprint systems to facilitateof business activities business continuity

Measures

KPI

FY2021 results FY2022 target

Conducting BCP training

20 times peryear

20 or moretimes per year

CO2 reduction rate short-term target(20% reduction in Scope 1 and 2 by
FY2024, base year of FY2020)

Up 16.4%

ー

100%

100%

Continuation of a 100% steel recycling rate

We are responding to the risk of natural disasters, which
are becoming more frequent due to the worsening climatechange, to ensure the safety of our employees and toensure business continuity.
Establishing systems to facilitate business continuity● Formulation and effective implementation of business
continuity planning (BCP) that specifies the need for
close coordination between the Group’s production sites● Continued implementation of training based on
emergency scenarios● Disaster recovery assistance program for employees● Implementation of emergency response inaccordance with disaster management
cooperation agreements
Reducing the environmental footprint of business activities● Reducing CO2 emissions (making a proactive contribution
toward the transition to a post-carbon society)51

Yokogawa Bridge Holdings Integrated Report 2022

Responding to demand for thedevelopment of disaster-resistant products
Measures

FY2021 FY2022
results target
0.4
0.8
R&D
billionbillionexpenses
yen
yen
KPI

Developing products and construction methods thatwill contribute toward reducing the damage sufferedin a natural disaster

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

Responding to demand for retrofitting
services and maintenance associatedwith National Resilience Promotion
FY2022targetDeveloping technologies and products
24.0
Bridge maintenance 24.0
relating to the improvement, maintenance,
billion yen
business net sales billion yen
and upgrading of the highway networkor moreMeasures

KPI

FY2021
results

Development of technologies for enhancing andupgrading the functionality of existing infrastructure● Development of highly durable aluminum andstainless-steel products● Development of bridge deck upgrading methods
for large-scale highway structure renewal andrepair projects, taking into account both society’s
needs and environmental considerations● Development of TUF segments with high bearing
capacity, thus making them suitable for use in very
deep excavations, for use in the shield method,which reduces the impact of an excavation on thesurface, and makes it possible to reduce the areaof ground affected by the excavation●

understanding with our stakeholders.

Ensuring the stable supply of
products
We strive to ensure the stable supply of high-quality
products
Measures
Strengthening
production andconstruction
systems

KPI
Capital expenditures (totaling atleast 18.0 billion yen in
FY2022–2024)
Personnel (2,150 in FY2024)

FY2021
results

FY2022 target

4.7 billion yen

ー1,962*ー

Organization of a dedicated unit for quality assurance
Quality management system utilization andcontinuous improvement● Reflecting information obtained at every stage, fromplanning and design through to manufacturing andconstruction, and information obtained throughinspections and diagnostics●●

Support for disaster recovery* Including equity method affiliates.

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

Basic Principles
Yokogawa Bridge Corp. will contribute towards therealization of a sustainable society through theprovision of high-quality infrastructure-related products
and by reducing the environmental footprint of ourbusine s s a c t i v i t ie s, in line w i t h our c or p or a t ephilosophy of “Contribution to society and the public,
and sound management.”
Basic Policies
1. W
 e will meet customers’ 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 theenvironment.
3. We will help to safeguard the environment in ourbusiness activities by formulating measures withrespect to the prevention of global warming,
prevention of pollution that might affectneighboring residents or the natural environment,
the three “Rs” (Reduce, Reuse, and Recycle), andappropriate disposal of waste, etc.
4. We will continuously work to improve our quality
and environmental management systems inorder to enhance our operations, the quality ofour products and customer satisfaction, and to
reduce our environmental footprint.

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

KPI

FY2021 results

FY2022 target

Response
Response training: once a year
Strengthening systems for Conducting disaster
Support for disaster recovery: training once a
providing rapid support
response training
5 casesyear

Emergency inspections in the event of a natural
disaster, such as a major earthquake● Bearing capacity evaluation and earthquake
resistance evaluation of structures, and considerationof methods for extending structure lifespans● Timely provision of equipment such as temporary
bridges and machinery● Provision of rapid support based on disastermanagement cooperation agreements●

Organization of the Disaster Response Headquarters

Yokogawa
Bridge Holdings
Disaster Response
Headquarters

Disaster Recovery
Measures Section

Foundation of Value Creation

Responding to the material risk
associated with climate change
and natural disasters

Promoting the adoption of renewable energy, suchas photovoltaic electricity generation systems, etc.
(to further increase electricity self-sufficiency)● Aiming to eliminate waste of materials and improve
the recycling rate
● Developing products with minimal environmental
footprint and providing related technologies● Promoting reuse of equipment and promoting energysaving and resource conservation activities at all facilities● Promoting the “greenification” of factory grounds
and company building rooftops●

sustainable development of society through a variety of business activities, working from a platform of mutual

Disaster Response
Headquarters Deputy Director

Materials flow (as of FY2021)

Seeking to create a future in which both people and the planet can thrive, we contribute towards theDisaster Response
Headquarters Director

Faced with the increasingly serious issues of global warming, deforestation, various kinds of pollution, etc., inorder for future generations to be able to enjoy a healthy planet, the YBHD Group is adopting an approach thatgives due consideration to the global environment, by implementing corporate activities aimed at reducing theGroup’s environmental footprint. We are also striving to build resilient infrastructure in order to safeguard bothpeople’s lives and business activity from the impact of natural disasters such as earthquakes, mega-typhoons,
torrential rains, etc. Through these initiatives, we are aiming to help realize the “creation of a resilient social
environment and harmonious coexistence with the natural environment” and to contribute towards theachievement of a sustainable society.

External
Response Section
Financial Management Section
Logistical
Support Section

Quality assurance
Measures

KPI

Preventing the reoccurrence
Construction grades forof quality non-conformancebridge businessincidents

FY2021
results

FY2022 target

Average of
83.1 points

Average of 80
points or
higherYokogawa Bridge Holdings Integrated Report 2022

52

SocialSocial Initiatives

Safeguarding occupational
health and safety●

Health and Safety System (Yokogawa Bridge Corp.)

System Framework Diagram (Construction Health and Safety Management System)

To eliminate serious accidents, we are taking various
initiatives to safeguard health and safety in cooperation
with our partner companies.
Measures

KPI

Fatal accidents
Number of accidents causing fouror more days of lost worktime
Thoroughprevention ofFrequency rateserious accidents Severity rate
Average number of lost workdays per
casualty●

FY2021
results0

President
Health and Safety
Management Committee

FY2022 target

System Manager(Safety and Quality Management Headquarters Director)

0

6

0

0.84
0.13

ー
ー

156

ー

Safety and Quality
Department Manager

FY2022 Company-wide Health and Safety Policy“Safety and quality” are the foundations on which our company was built.
The health and safety policy outlined below has been announced withthe aim of ensuring safety and creating a comfortable working
environment based on the principle of respect for human rights andthe principle of compliance with relevant laws and regulations.
1. Eliminating serious accidents and incidents
2. Compliance with occupational health and safety legislation andinternal rules
3. Creating a healthy and comfortable working environment

Measures to prevent serious accidents and incidents

System Committee(Construction Health and
Safety Coordination Meeting)Work Site
Manager

Auditing Section
Manager

Planning Headquarters Manager
Design Headquarters Manager(Construction Division Manager)

Construction
Department Manager

Planning Department Manager
Design Department II Manager
Sales and Technology Department Manager

Construction Section Manager andMaintenance Section Manager

Planning
Section Manager

Work Site
Manager・・・

Prevention of occupational accidents
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 chantactivity and of safety education● Arrangement of safety monitors and safety belt
monitors, and adoption of the “safety bloc system”●●

Commended for Quick Response in the Fukushima Offshore Earthquake Restoration Project
The Fukushima Offshore Earthquake that occurred late at night on March 16, 2022, caused significant
damage to the elevated facilities of the Tohoku Shinkansen Line, and in some sections, Shinkansen
trains were also derailed, causing tremendous damage.
In the early hours of the following day, March 17, the YBHD Group received
a request from Totetsu Kogyo Co., Ltd. for emergency support. We went tothe site and took emergency measures for the First Kosaka Kaido Bridge andits viaduct, which was the most damaged among the severely damaged
facilities in various locations and was estimated to be critical to the full
opening of the line.
With the cooperation of East Japan Railway Company and other relatedcompanies, the YBHD Group’s planning, sales, equipment, and construction
divisions worked together to carefully and quickly carry out the restoration
work, thereby helping to restore the entire Tohoku Shinkansen Line on April 14.
In recognition of these efforts, Totetsu Kogyo presented us with the
President’s Commendation, and East Japan Railway Company presented us
with the Shinkansen General Manager’s Commendation.

53

Yokogawa Bridge Holdings Integrated Report 2022

Infectious disease response measures Application for the Health &and putting in place the environment Productivity Management
needed for employees to maintain and Outstanding Organization
improve their health
Recognition Program

FY2021 FY2022
results target
ー

Apply

Group Health Declaration

Tokyo Construction Headquarters Director
Osaka Construction Headquarters Director
Construction Division Manager

Work Site
Manager

KPI

In the midst of severe changes in its businessenvironment, the YBHD Group views the healthof e mploy e e s a s on e of it s mos t import a n t
management resources and promotes initiatives
to support the health of employees and thefamilies who support them. The Group aims todevelop its business and contribute to society
through workplaces where employees can work
vigorously and reach their full potential.
Infection prevention measures, including daily
temperature checks, the use of mouthwash, wearingof masks, and disinfecting hands, etc., at factories
and work sites● Putting in place the environment needed forteleworking and flexible work hours● Promoting health management that makes effective
use of “collabohealth” measures to improve
employees’ health through collaboration between
the company and its Health Insurance Society● In order to realize the health management objectives
stated in the Health Declaration, we havee s t a blis h e d a He a lt h Promot ion Commit t e econsisting of our corporate officer in charge ofhuman resources, human resources personnel ofeach group company, medical staff (industrial
physicians and nurses), and our Health InsuranceSociety as a “health promotion system.” Thecommittee shares and analyzes health issues andplans health projects, which are then approved by
the Board of Directors and the Health InsuranceSociety, after which various organizations jointly
implement the activities.
●

Securing talent and promoting
diversity
We are implementing various measures to realize therecruitment, cultivation, and retention of outstanding
human talent
Measures

KPI

FY2021 results FY2022 target
Recruitment plan: Recruitment plan:
75 hires
55 hires
Achievement of recruitment plan for Actual:
66 hires Achievement
the fiscal year
Achievement
Promotion
rate:
100%
rate: 88%ofrecruitment Employment rate of persons withdisabilities (average for 5 operating
2.23%
2.3% or higher
activities
companies)
Percentage of female employees out
14.6%
15% or higherof all employees
Steady increase in the rate of male
5.7%
ー
employees taking childcare leave
Return-to-work
rate
after
childcare
Effective(= actual number of employees
utilization of leave
who returned to work / number of
100%
100%
diverse
employees scheduled to return to
human
work
after
childcare
leave
×
100)
talentUtilization of foreign humanresources (including transfers and36
36 or moretrainees from Group companies)

Promotion of recruitment activities that effectively
utilize site visits, internships, and the holding of
seminars in schools and colleges● Formulation and implementation of a General
Employer Action Plan pursuant to the Act on
P r o m o t i o n o f W o m e n ’s P a r t i c i p a t i o n a n d
Advancement in the Workplace● Promoting the recruitment and retention of female
engineers, establishing the infrastructure needed forfemale employees to be able to work comfortably infactories and at construction sites (for example,
through the provision of comfortable toilets), andproviding safety belts that are designed to fit
women’s bodies more comfortably● Expansion of women-friendly working environment
measures and systems● Proactive recruitment and effective utilization ofhuman talent regardless of nationality, gender, or age,
including persons with disabilities and senior citizens● Japanese language training for foreign employees●

Foundation of Value Creation

As basic strategies for preventing serious accidents and incidents,
we will continue to hold meetings of the Safety System Improvement
Committee, which is chaired by the company president, and we willthoroughly implement the following measures:
1. M
 ake improvements in relation to multi-level subcontracting
2. M ake 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 partnercompanies (and operatives)
4. Promote the cultivation of partner companies’ foremen and ofyoung operatives
5. Promote the development of technology in relation toscaffolding systems, installation methods, etc., so as toenhance the safety of construction work

Safety Section
Manager

We support the health of employees and their families(who support them) by putting in place the environment
needed for teleworking and flexible work hours and by
making effective use of “collabohealth” measures.
Measures

Various levels of system managers

Company-wide Health and Safety Policy (Yokogawa
Bridge Corp.)

Responding to global health issues

Utilization of Foreign Human Resources
Yokogawa Techno Philippines, Inc. is a company based in the Philippines. The Philippines has alarge number of young people, which is said to be a demographic bonus, and the environment
in the country is such that people are seeking opportunities to utilize their language skills andwork on a global scale. Yokogawa Techno Philippines employs nearly 200 talented engineers
and is a major pillar of practical support for the technologies of YBHD Group companies.
Physical exchanges that were interrupted by the COVID-19 pandemic have been resumed, andmany engineers from the Philippines have crossed the sea to further the scope of their activities
in Japan while learning technology and Japanese.

Yokogawa Bridge Holdings Integrated Report 2022

54

SocialSocial Initiatives

Strengthening of talentmanagement
Measures

KPI
FY2021 results FY2022 target
Support for acquisition of necessary
Target: 267
qualifications* according to the type of job Target: 256
Support forpeople* Professional engineer / First-classpeopleself-directed
SupportSupportarchitect / First-class civil engineering
careerimplementation implementation
management engineer / First-classdevelopment
rate: 100%
rate: 100%architectural construction management
engineer / Construction accountant

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

Labor productivity enhancement

discrimination on the grounds of place of origin,nationality, race, ethnic background, beliefs, religious
faith, gender, age, disability or academic background.
● Implementation of human rights training
All employees receive compliance training, and arethoroughly familiarized with the Charter of Corporate
Behavior and its provisions relating to respect forhuman rights and the prohibition of discrimination.

Prevention of overwork andpromotion of work-life balance,and realizing equivalent
compensation for equivalent work
We are putting in place a working environment thatmakes working more convenient for all employees.
Measures
KPI
FY2021 results FY2022 target
7 days off in 4 7-days-off in 4
Steady efforts to reduce Implementation rate of 7
weeks
weeks
working hours, anddays off in 4 weeks at
implementation Implementation
promotion of leave- taking construction sites: 100%
rate: 100%
rate: 80.3%

Measures

KPI
FY2021 results FY2022 target
Establishment of an internal
Effective
certification system for DX personーー
utilization ofnel and certification of about 50
technology (with employees (50 in FY2024)
ICT as the core
Expansion of the area of orderedelement) andbusiness process engineered structures through 2
1.01 million m2
ーpromotion of DX (1.3 million m or
improvement
more in FY2024)



onLT+xj$B`"uJ_1<=702>A+ #

Hrbd+Z'DkD+s)
"Z'D:6UXF+KbdlhUeMC

To fulfill our roles and responsibilities as an enterprise
engaged in providing society with infrastructure and thefoundations for daily life as well 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 whichpeople can live safely and with 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 thatthey can develop a more in-depth understanding ofbridges and buildings● YBHD staff give “visiting classes” in which they visit
schools etc.
Site tours with BIM/CIM
experience

Aiming to realize the transfer of technology andknow-how, collaborating on cultivating the humantalent needed for economic development, andcontributing towards employment creation andeconomic development● Stimulating economic development and creating
employment opportunities through infrastructure
improvement via ODA

tIW|eM+$<4,A/eM~i+s)
dwcP;-A5+^& #Site tours for local students

#vVRQE+g$Y]zq@.?-98?A3+f[ #M CmRQEgO%( 

We implement measures that embody respect not only
for the human rights of Group employees, but also forthe human rights of all stakeholders.
Measures
KPI
FY2021 results FY2022 target
Percentage of harassment
Thorough implementation
training provided through36%
100%
of mutual respecte-learning

Yokogawa Bridge Holdings Integrated Report 2022

Strengthening development assistance fordeveloping nations

Working together with the local communityeMh*%$

aU'edw  l{Iq! #eMGSaUeM eM  
'\&y!N}+pJ #Respecting the human rights ofour employees, and theemployees of partnercompanies and suppliers

55

Assistance for developing nations and a contribution to
local communities through support for culture and thearts and through volunteering

Creating employment opportunities through theestablishment of local operating companies indeveloping nations

Supporting Fujikawaguchiko Town’s Music Town Development Project
The Mt. Fuji Kawaguchiko Piano Festival was held for the first time from September 23 to 26, 2021, as part of the Music Town
Development Project of Fujikawaguchiko Town, Yamanashi Prefecture, with concerts featuring Nobuyuki Tsujii and other worldclass pianists.
The event allowed people to enjoy world-class music in the great outdoors while feeling the power of Mt. Fuji. Not only was thefestival a great success, with fans visiting from all over Japan, but it also contributed to the promotion of local culture, education,and the arts through programs for families and children, including by inviting Mr. Tsujii to give a music class at an elementary school(Photo 1) and by holding a free picnic concert in a town park (Photo 2).
The YBHD Group is supporting this project through a corporate hometown tax payment (a donation), which was inspired by theconstruction of a retractable roof for the Kawaguchiko Stellar Theater (Photo 3), the main venue of the festival.
The second event, in 2022, is scheduled for September 22 to September 25.
https://pianofes.stellartheater.jp/

12

Foundation of Value Creation

P ro m o t i n g n e w, l a b o r- s a v i n g c o n s t r u c t i o nmethods, and related R&D● Promoting measures to use IT for enhancing
operational efficiency, develop various types ofsystems, effectively utilize robotic process automation(RPA), and use ICT to realize i-Construction● Promoting digital transformation (DX)

Respect for human rights and prohibition of
discrimination
The YBHD Charter of Corporate Behavior clearlystipulates the requirement to respect the humanrights of each individual employee, and prohibits
discrimination on unreasonable grounds that do not
relate to the conducting of business, such asSocial contribution activities

●

●

●

●

in addition to regular care provision by in-houseoccupational health physicians and nurses● Implementation of overwork prevention training● Work-life balance measures (accommodation expenses
subsidy system, travel expenses subsidy system for
employees returning home, commemorative holidays,
telecommuting system, reduced working hours system,
implementation of “No Overtime Days”, etc.)● Free association and collective bargaining
All Group companies have good labor relations, anddiscussion of various issues proceeds smoothly.
● Formulation of internal systems in accordance withlaws such as the Act on Improvement etc. of
Employment Management for Part-time and Fixedterm Workers and the Act on Proper Technical Intern
Training and Protection of Technical Intern Trainees

3

Workstyle Reform Promotion Message

Formulation of the 2-day Weekend Action Plan torectify the problem of excessively long working
hours at work sites● Promoting the active utilization of the EAP external
consultation window (for mental health consultations)●

Yokogawa Bridge Holdings Integrated Report 2022

56

GovernanceCorporate GovernanceDirectors, Auditors, and Executive Officers

Our approach to corporate
governanceDirectors

Kazuhiko Takata
President andRepresentative Director

Yoshida Akihito

Director & Executive Officer

In line with our corporate philosophy of “Contribution tosociety and the public, and sound management,” theYBHD Group aims to make a positive contribution tosociety by carrying out “monozukuri” manufacturing withintegrity and by providing high-quality, safe social
infrastructure.
Utilizing the YBHD Group’s wealth of human talentand high-level technological capabilities to realize
sustainable growth and enhance corporate value overthe medium to long term has won us the trust of our
stakeholders. In continuing to implement our corporate
activities going forward, while remaining aware of our
responsibilities as a good corporate citizen, complying
with laws, regulations, social norms, etc., and earning
the trust of the people who work for us, we will strive to
make ourselves an enterprise that helps people to livewith safety and peace of mind. To realize this vision, we
will implement thorough corporate governance basedon the following five core principles:

Kiyotsugu Takagi Hidenori Miyamoto
Director & Managing
Executive Officer

Director & Managing
Executive Officer

Kazuya Kuwahara Akira Kobayashi
Director & Executive Officer

1 Respecting shareholder rights and ensuring
meaningful shareholder equality.
2 Striving to engage in appropriate consultation
with shareholders and other stakeholders.
 isclosing corporate information in an
3D
appropriate manner and ensuring transparency.
4E nsuring that the Board of Directors fulfils its
roles and responsibilities appropriately, andimplements transparent, responsive decisionmaking.
5 Striving to engage in constructive dialog withshareholders regarding the company’s
strategy for long-term, stable growth.

Director & Executive Officer

Skills Matrix for Directors and Auditors

Yasunori Kamei
Outside Director

Kazunori Kuromoto Reiko Amano
Outside Director

Directors
Standing Audit &Supervisory Board Member

Teruhiko Oshima

Standing Audit &Supervisory Board Member

Masashi Shishime

Outside Audit & Supervisory
Board Member

Kazunori Yagi

Outside Audit & Supervisory
Board Member

Tomozo Yoshikawa

Outside Audit & Supervisory
Board Member

Corporate
Management

Kazuhiko Takata○

Kiyotsugu Takagi○

Hidenori Miyamoto○

Yoshida Akihito○

Kazuya Kuwahara○

Akira Kobayashi○

Yasunori Kamei○

Kazunori Kuromoto○

Reiko Amano○

Outside Director

Auditors

Ryogo Hirokawa

Name

Finance &Accounting○

Auditors

Teruhiko Oshima

Human
Resources &
Labor

○

Sustainability

Sales &
Marketing

R&D and DX

Safety, Quality &Production

○

○

○

○

○

○

○
○

○

○
○
○

○

○

○

○

○
○
○

○

Ryogo Hirokawa

Executive Officers

Legal & Risk
Management

○

○

○

Foundation of Value Creation

Position

Skills, Experience, and Expertise

○
○

○

○

○

○

○

○

○

Masashi Shishime
Kazunori Yagi

○

○

○

Tomozo Yoshikawa

○

○

○

* Yasunori Kamei, Kazunori Kuromoto, and Reiko Amano are Outside Directors.
* Masashi Shishime, Kazunori Yagi, and Tomozo Yoshikawa are Outside Audit & Supervisory Board Members.

Isao Saito

Executive Officer

57

Hirohito Kaji
Executive Officer

Yokogawa Bridge Holdings Integrated Report 2022

Yuzuru Nakamura
Executive Officer

Yokogawa Bridge Holdings Integrated Report 2022

58

GovernanceCorporate GovernancePresidents of Group operating companies. In addition,
four Presidents of Group operating companies who are
not YBHD Directors are present at YBHD Board meetings.
Furthermore, the Board’s three Outside Directors have thestatus of independent corporate officers in accordancewith Tokyo Stock Exchange (TSE) regulations.

Governance Structure

Holding Company (YBHD)
Shareholders Meeting

Board of Directors

YBHD Code of Corporate Behavior

ComplianceAppointment,
removal, andoversight

Appointment
and removal

Nomination Advisory Committee
Remuneration Advisory Committee

Recommendations, etc.
Recommendations, etc.

Representative
Directors

Sustainability Committee
Safety and Quality Committee

Recommendations, etc.

Instructions
and orders

Management Committee
Executive Officer
Instructions
and orders

Operational
departments

Reporting
ReportingCompliance Committee
Reporting
Auditing

Consultation window

Reporting

Audit & Supervisory Board

Coordination

RemovalReporting

Audit OfficeInternal auditing

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

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

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

Representative Directors

AuditorOperational departments

Overview of the corporate
governance system
YBHD is a company with a Board of Directors, an Audit& Supervisory Board, and a Financial Auditor. It
conducts group management under a holding structurewith YBHD as the holding company.
We have adopted an executive officer system toclearly separate business operations from oversight,
increase the flexibility and adaptability of business
operations, and respond quickly and flexibly to changes
in the business environment. In addition, the Board of
Directors (three Outside Directors out of nine Directors),
more than one-third of whom are independent Outside
Directors, and the Audit & Supervisory Board (three
Outside Auditors out of five Auditors) oversee and audit
the decision-making process of the Board of Directors
and the execution of duties by the Directors, thereby
reinforcing the Group’s governance.

Yokogawa Bridge Holdings Integrated Report 2022

Furthermore, with regard to the Group’s business
operations, by requiring operating companies to seek
prior approval for major decisions and provide periodic
progress reports on the state of implementation, we areable to manage operations in a way that effectively
coordinates the activities of each operating company,
while striving to further the development of the Group
as a whole and enhance corporate value.

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 Group’s overall
operational strategy and plans, evaluates performance
implementation, reviews, and makes decisions regarding
important managerial matters at operating companies
and other important operational issues, and oversees
individual Directors’ fulfilment of their duties.
Four of YBHD’s Directors also serve concurrently as the

The Board of Directors’ Optional Committees
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 ofRepresentative Directors, Directors, Members of the
Audit & Supervisory Board, and Executive Officers,
based on consultation with the Board of Directors,
the Nomination Advisory Committee deliberates
nominations of candidates for the positions of
Director, Member of the Audit & Supervisory Board,and Executive Officer and the appointment ofRepresentative Directors, Executive Directors, andExecutive Officers as well as matters relating tosuccession planning for the President, and submits
its views, reports, etc., to the Board of Directors. The
Nomination Advisory Committee consists of one
Representative Director and three independent
Outside Directors.
● Remuneration Advisory Committee
With the aim of strengthening the independence,
objectivity, and accountability of the functioning of theBoard of Directors in relation to matters relating to
Directors’ 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 Executive
Officers, and submits its views, reports, etc., to theBoard of Directors. The Remuneration Advisory
Committee consists of one Representative Director
and three independent Outside Directors.
● Sustainability Committee
The Sustainability Committee considers the linking of the
YBHD Group’s business activities to sustainability andthe fleshing out of the Group’s non-financial information
disclosure and submits its recommendations, etc., to theBoard of Directors.
● Safety and Quality Committee
The Safety and Quality Committee analyzes the safety
and quality management operations of each operatingcompany, examines the effectiveness and other aspectsof various measures, and makes recommendations for
improvement to the Board of Directors.
● Compliance Committee
The Compliance Committee deliberates basic policies
and important matters relating to the promotion ofcompliance, as well as performing deliberation, etc.,from a neutral standpoint in regard to the handling ofwhistleblowers’ reports, and submits its
recommendations, etc., to the Board of Directors.
●

Management Committee
To help ensure that the company’s operations proceeds m o o t h l y, t h e M a n a g e m e n t C o m m i t t e e , w h o s emembership comprises all Board members other than
Outside Directors, as well as the Standing Audit &Audit & Supervisory Board
The Audit & Supervisory Board, whose membershipcomprises two Standing Audit & Supervisory Board
Members and three Outside Audit & Supervisory Board
Members, for a 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, theManagement Committee, and the Representative
Directors, and exchange information with the Audit Office(which functions as the internal auditing department) andthe Financial Auditor, in order to develop a clear picture of
the decision-making process. They express their views
when necessary, and they receive reports on the current
state of operational implementation, finance, compliance,internal auditing, etc. Furthermore, the Audit & Supervisory
Board’s three Outside Audit & Supervisory Board
Members have the status of independent corporate
officers in compliance 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, we haveanalyzed and evaluated the Board’s overall effectiveness.
More specifically, we administered a questionnaire survey
to all Directors and Audit & Supervisory Board Members,
and to the Presidents of all of the Group’s operatingcompanies. Based on the results obtained in this survey
and on the opinions expressed by external assessment
organizations, we performed an analysis and evaluation of
the overall effectiveness of the Board of Directors.
The survey results showed that the overall level ofsatisfaction with the Board’s discussions, composition,etc., was high, from which it was determined that theBoard had maintained its effectiveness in terms ofapproving important managerial matters and exercising
appropriate oversight of operational implementation.
On the other hand, as an issue that will need addressingin the future, it was determined that the discussion of asustainable medium- and long-term growth strategy for
YBHD needed to be continued and expanded.

Yokogawa Bridge Holdings Integrated Report 2022

Foundation of Value Creation

Compliance

Board of Directors and Management Committee

Financial Auditor(at some operating companies)

Shareholders Meeting

Executive Officer

59

Appointment,
removal, andrefusal of reappointment

Financial Auditor

Appointment and removal
Views, reports, etc.

Supervisory Board Members, Executive Officers, and thePresidents of operating companies, meets, in principle,
once a month, to receive and deliberate on reports
regarding important managerial matters at individual
operating companies and other important matters relating
to the implementation of business activities. Important
documents, including minutes of Management Committee
meetings, are distributed to Outside Directors and Outside
Audit & Supervisory Board Members in order to provide
sufficient information to enable them to confirm thecurrent status of the company.

60

GovernanceCorporate GovernanceOn the basis of the results of the most recent evaluationof the effectiveness of the Board of Directors and of theissues, etc., identified, going forward, we will be expanding
the discussion of medium- and long-term management
strategy, and we 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
The company, having put in place the remunerationg o v e r n a n c e o u t l i n e d b e l o w, d e c i d e s u p o n t h eremuneration, etc., of company officers using theRemuneration Program, in accordance with theresolutions 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 governancea. Method of deciding on policies for deciding on
remuneration, etc.

b. Roles and responsibilities of the Remuneration
Advisory Committee
In order to ensure a high level of independence andobjectivity in all decisions made in relation to the
remuneration system, the company’s Remuneration
Advisory Committee has been entrusted by thecompany’s Board of Directors with decisions on thecontent of the remuneration received by individual
Directors. When deciding on remuneration, thecompany’s Remuneration Advisory Committee
undertakes appropriate deliberation and decisionmaking with regard to the basic policy governing the
remuneration system for company officers, theremuneration system, the framework for
performance-linked remuneration, the amounts paid
to individual company officers, etc. The Committee
makes effective use of information collected by andadvice received from exter nal remuneration
consultants, and on the basis of objective, vital
information regarding the recent state of company

61

Yokogawa Bridge Holdings Integrated Report 2022

c. Composition of the Remuneration Advisory
Committee and Attributes of the Committee chair
The Remuneration Advisory Committee comprises
four members, most of which are independent
Outside Directors. The chair of the Remuneration
Advisory Committee is expected to strive for effective
Committee operation from the perspective ofstrengthening 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 company’s Directors( e x c l u d i n g O u t s i d e D i re c t o r s ) c o m p r i s e s b a s i cremuneration (which is a fixed amount), performancelinked remuneration, and non-monetary remuneration.
Performance-linked remuneration consists of an annual
bonus, which is linked to the extent that company-wide
performance targets for that year have been achieved.
Non-monetary remuneration consists of share-based
remuneration, the aim of which is to ensure that
Directors share common interests with shareholders
and to strengthen Directors’ awareness of the need toenhance corporate value. However, taking into accountthe roles that they play, 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.

a. Basic policies regarding the company officers
remuneration system
The company officers remuneration system mustallow the appropriate rewarding of outstanding
management talent able to contribute towards
the sustainable development of the company
and long-term growth in corporate value.
● The company officers remuneration system must
facilitate the operation of a sound incentivefunction aimed at the company’s sustainablegrowth, 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 to work together with the aim of enhancing
the company’s corporate value and realizing
company-wide strategic objectives.
● As decisions relating to the company officers
remuneration system and determinations maderegarding its utilization must be made throughobjective, transparent procedures, such decisions
must be made following deliberation by anindependent Remuneration Advisory Committee
and on the basis of the reports received from thisCommittee.
●b. Policies regarding the determination of basic
remuneration (monetary remuneration)
The company’s policies regarding the determinationof the amount of basic remuneration (monetary
remuneration) to be received by each individual aredecided on after the Remuneration Advisory
Committee has deliberated and reported to theBoard of Directors.
When deciding on basic remuneration, amanagers’ remuneration database run by an external
remuneration consulting firm will be used as thebasis for performing benchmarking for eachcompany officer position every year, taking otherfirms that operate on a similar scale to YBHD as
comparable enterprises.
Basic remuneration is paid on a monthly basis.
c. Content of performance-linked remunerationand policies regarding the determination of
performance-linked remuneration
The key performance indicator (KPI) for the annual
bonus shall be the consolidated operating profit forthat fiscal year. The reason for choosing thisindicator is that the consolidated operating profit isa financial indicator that effectively shows the results
achieved by enterprise activities in the company’s
core business and that the reasonableness of thepayment made can be easily explained.

When evaluating operational performance, apayment ratio is calculated according to the level ofachievement as compared to the operational
performance target values, which are set by the
Board of Directors at the beginning of the fiscal year
following deliberation on and verification of theirappropriateness by the Remuneration Advisory
Committee, and this payment ratio is used as thebasis for the Remuneration Advisory Committee’s
calculation of the amount to be paid and its
evaluation and determination.
The annual bonus is paid every fiscal year at apredetermined specified time. The payment ratio
varies within a range of 0% to 150%.
Regarding the KPI target value for performancelinked remuneration in the current fiscal year, theconsolidated operating profit target was set at 14
billion yen, and the actual result was 14.7 billion yen.
d. Content of non-monetary remuneration andpolicies regarding the determination of nonmonetary remuneration
The purpose of share-based remuneration is toenhance commitment to boosting medium- andlong-term performance and increasing corporate
value by making clearer the connection between thecompany’s share price and Directors’ remuneration
and by ensuring that Directors share the benefits andr i s k s o f c h a n g e s i n t h e s h a re p r i c e w i t h t h ecompany’s shareholders. Directors receive points(with each point being equivalent to one share in thecompany) for each year of service, and on leaving
the company, they are given a number of sharesbased on the number of accumulated points. The
number of points granted is calculated by dividing
the basic amount specified for the position inquestion by the company’s share transfer rules by
the acquisition price of company stock held in trust.
Share-based remuneration is paid every fiscal
year at a predetermined specified time.
e. Policies regarding the determination of theshare of overall remuneration held by eachtype of remuneration

Foundation of Value Creation

The company’s policy for deciding the remuneration,etc., of individual Directors is decided by the Boardof Directors based on the deliberations and reportsof the Remuneration Advisory Committee, which ischaired by an independent Outside Director andconsists of a majority of independent Outside
Directors. In the event that the Board of Directors
reaches a decision that diverges from the content ofreports submitted by the company’s Remuneration
Advisory Committee, the Remuneration Advisory
Committee will ask the Board of Directors to collate
and announce the reasons for this decision.

officer remuneration systems, identifies key trends indiscussions of this area, trends in other companies’
systems, etc.
As a measure taken to ensure that the entrusted
authority is properly exercised, the company
endeavors to provide the Remuneration Advisory
Committee with sufficient objective information by
utilizing external remuneration consultants, as
described above, in order to guarantee effective
deliberation by the Remuneration Advisory
Committee while safeguarding the Committee’s
independence.
The involvement and participation of external
remuneration consultants in the Remuneration Advisory
Committee is limited to attending Remuneration
Advisory Committee meetings as necessary to provide
indirect support for effective deliberation andconsensus building. They do not makerecommendations to the Board of Directors regarding
the appropriateness of the content of reports.

The company has decided on a policy regarding thedetermination of the share of overall remuneration
provided to Directors (excluding Outside Directors)
for each type of remuneration, subject to deliberationby the Remuneration Advisory Committee.
When deciding on the share in question, amanagers’ remuneration database run by an external
remuneration consulting firm will be used as thebasis for performing benchmarking every year, taking
other firms that operate on a similar scale to YBHD
as comparable enterprises in order to verify theappropriateness of the decision, including the level of
remuneration.

Yokogawa Bridge Holdings Integrated Report 2022

62

GovernanceCorporate GovernanceCompliance
Regarding the share of overall company officers’
remuneration held by each category of remuneration,
the standard amount of the annual bonus per fiscal
year for each company officer position is set within arange of 19–30% of the basic remuneration, and thevalue of the standard points of share-based
remuneration per fiscal year is also set within a rangeof 19–30% of the basic remuneration. By raising theshare of the overall remuneration received bycompany officers in senior positions for performancelinked remuneration and non-monetary remuneration,
the level of managerial responsibility can be reflectedin the remuneration composition for each position.
The standard amount of the annual bonus per fiscal
year for each company officer position and the valueof the 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) held by each category of remuneration

Basic remuneration

Annualbonus

Share-based
remuneration

19~30
Performance-linked
remuneration

19~30
Non-monetary
remuneration

Our approach to compliance
YBHD Group companies and all persons working forthem are required to abide by the YBHD Code ofCorporate Behavior and are expected to constantly beaware of their social responsibility and public mission. In
order to win a high level of trust from society, we comply
with all relevant laws and regulations, both in Japan andoverseas, and we behave as an ethical enterprise that
respects corporate ethics and social norms.

Compliance management
systemCompliance Committee
We have put in place a system whereby the Compliance
Committee deliberates basic policies and importantmatters relating to compliance promotion, and the resultsof this deliberation are reported by the Compliance
Committee to the Board of Directors. Persons who violate
the YBHD Code of Corporate Behavior or who allow
others to violate the Code will be dealt with in accordancewith the Companies Act or other relevant laws and with
YBHD’s Employment Rules.

Internal auditing
100
Fixed remuneration

In order to ensure a high level of independence andobjectivity in all decisions made in relation to the
remuneration system, the company’s Board of Directors
entrusts the Remuneration Advisory Committee withdecisions regarding the content of the remuneration
received by individual Directors. As a measure taken to
ensure that the entrusted authority is properly exercised,
the company endeavors to provide the Remuneration
Advisory Committee with sufficient objective information
by utilizing external remuneration consultants toguarantee effective deliberation while safeguarding theCommittee’s independence.

63

Yokogawa Bridge Holdings Integrated Report 2022

Internal whistleblowing system
YBHD’s Directors promote the active utilization of the“Yellow Card System,” which is an internal whistleblowing
system that has been put in place for reporting andconsultation in relation to violations of relevant laws, thecompany’s Articles of Association, the YBHD Code ofCorporate Behavior or internal rules, and in relation to
misconduct or other compliance issues, or the possibility
thereof. Improvements are made to the system asnecessary, and efforts are made to expand it. The system
is also included in compliance training, with the aim of
spreading awareness of the system.

Measures

KPI
Number of serious noncompliance incidents

FY2021 results

FY2022 target

00

Once a year

Once a year

Personnel: 26
Education
implementation
rate: 100%

Personnel: 31
Education
implementation
rate: 100%

Twice a year

Twice a year

Conducting independent audits in all departments ofeach Group company based on the Group’s internal・Thorough implementation of compliance and transaction
record management
・Thorough implementation of effective corporate
governance and risk management

control system and auditing regulations, as well as
identification of events and implementation of
preventive, remedial, and recurrence-prevention
measures
Auditing department personnel and implementation
rate of education on internal controls
Conducting meetings between the Group’s auditors
and the head of the Audit Office

1 Fair transactions

2 Prevention of corruption

The YBHD Group’s YBHD Code of Corporate Behavior
includes provisions that forbid, regardless of thecircumstances, behavior that violates the Antimonopoly
Act, such as cartels, bid-rigging, fixing the re-sale price,or abusing a dominant position, and that specify the needto engage in free, fair competition. We implement
thorough compliance with relevant laws and regulations
and perform thorough management of transaction
records. More specifically, we implement complianceeducation through the formulation of various types ofmanuals and rules and the provision of compliancetraining, and we have the Audit Office implement audits
and ensure the appropriate operation of the internal
whistleblowing system and strive to safeguard its efficacy.
In May 2005, Yokogawa Bridge Corp. was involved ina violation of the Antimonopoly Act relating to bid-rigging
on bridge construction, which attracted strong criticism
from society as a whole. The YBHD Group deeply
regrets the occurrence of such a serious incident. The
incident brought home to us the importance ofcompliance, and we have committed ourselves toensuring that no incident of this kind will occur again in
the future. Since then, we have worked to ensurecomprehensive implementation of the YBHD Code ofCorporate Behavior and to strengthen our internal
auditing system, putting in place the systems needed toensure that our business activities are in compliance withlegal requirements. Going forward, the YBHD Group willcontinue to implement measures relating to compliance.

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

Yokogawa Bridge Holdings Integrated Report 2022

Foundation of Value Creation

3 Matters relating to the determination of thecontent of the remuneration received byindividual Directors

With regard to the state of compliance with the YBHD
Code of Corporate Behavior and other internal rules, theAudit Office (which has been established as an internal
auditing department independent of the company’s
operational departments), either acting on its own or incollaboration with the auditing department of one or moreGroup operating companies, implements efficient,effective auditing by performing compliance auditing,including attending meetings and 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 andresponding to reports submitted through thewhistleblowing system, etc. In addition, the company
strives to strengthen the organization and authority of theCompliance Committee as necessary.

Fair transactions and preventionof corruption

64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 of laws 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 anincident, the Board aims to provide thorough guidance inregard to strategies to prevent reoccurrence, etc.
Furthermore, by having all departments within all Group
companies implement periodic self-directed auditing of
the state of management of the risk of loss involving theirown department, we are strengthening measures toprevent the risk of loss throughout the Group as a whole.

Preventive measures

Risk awarenessSelf-directed auditing flow

Yes

Effective
Inadequate

No

Improvement
measures

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 the factory, transportation, and on-site
construction work. At each of these stages, the productsthat 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.
In the unlikely event of an accident, not only would theaccident cause direct damage, but it could also cause
the Group to lose social credibility and be subject toadministrative penalties, such as suspension frombidding, from various ordering agencies, which could
have a serious impact on the order receiving. To
eliminate the danger of serious accidents, we areworking continually to enhance the efficacy of our safetymeasures 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.

65

Yokogawa Bridge Holdings Integrated Report 2022

2 Reliance on public infrastructure projects
The largest share of work in the bridge business, whichis the YBHD Group’s main business area, derives fromtenders awarded by central or local gover nment
authorities. Consequently, a major change in societal
i n f r a s t r u c t u r e p o l i c y, a d r a m a t i c w o r s e n i n g i ngovernment finances, or other factors, could significantly
impact our operational performance, such as a decreasein the volume of orders received and in our sales
revenue, especially in the event of an unexpectedly large
fall in orders for new bridges in the future. To reduce thiskind of risk, we are aiming to maintain, expand, andoptimize our bridge business by strengthening the
responsiveness of our bridge maintenance business in
combination with new construction while also
proceeding with diversification in terms of our civilengineering business (particularly tunnel segments) andour steel structures business. At the same time, we arealso working to expand the amount of business we dowith 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 event that private-sector capital investment falls
as a result of an economic downtur n in Japan oroverseas, this would result in a fall in the volume of orders
re c e i v e d a n d i n o u r s a l e s re v e n u e , w h i c h c o u l dsignificantly impact our operational performance. For thisreason, we will continually implement 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 andthe Antimonopoly Act, both within Japan and overseas,in the event 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 andin our sales revenue, which in turn could significantly
impact our operational performance. To avoid this kind of
situation, the YBHD Group positions compliance as thefoundation for Group operation and is committed toengaging in business activities in an appropriate manner.
5 Responding to defects
According to our contracts, we are statutorily liable for
defects in steel structures constructed by the YBHDGroup. In the event that a defect is discovered for any
reason, we will take emergency measures to avoid any
risk, regardless of whether or not the customer makes adefect warranty claim, and will focus on investigating thecause of the defect and preventing its recurrence. Thus,

6 Country risk
The YBHD Group has been expanding overseas, mainlyin the Asia region, including in the bridge business throughparticipation in Official Development Assistance (ODA)
projects.
In addition, part of the design work for our bridgebusiness and system structure business is conductedby our subsidiaries in China and the Philippines. In theevent of 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 beprepared for this type of risk, besides striving to put inplace methods for ensuring the safety of our employees
and establishing crisis management systems for use inemergencies, we have also established backup
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, andother related parties, as necessary.
7 Large-scale disaster risk
In the event of a large-scale natural disaster such as anearthquake, tsunami, or damage from storms or floods,
factories or work sites could suffer damage, which
could significantly impact our operational performance.
I n o rd e r t o b e p re p a re d f o r t h i s t y p e o f r i s k a n dminimize negative impacts, we have formulated
business continuity plans, and we implement training
based on emergency scenarios.

Group conducts thorough credit checks in advance, and
we also allocate an allowance for doubtful accounts inrelation to accounts receivable.
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 and result in increased costs. We areresponding appropriately to this issue by paying
painstaking attention to infection prevention andconsulting with clients as needed. We are also
implementing infection prevention measures andmeasures to prevent the spread of COVID-19, forexample, by putting in place an environment that supports
teleworking and flexible working hours.

Information security
Measures

KPI

FY2021 results FY2022 target

Number of serious information
security incidents

Preventing theleaking of
Implementation of training on data
corporatebusiness secrets preservation in the event of adisaster00Once a year

Once a year

To prevent the leaking of corporate business secrets,
etc., we strive to ensure compliance with the informations e c u rit y it e ms s pe c ifie d in t he Y B H D C ha r t e r o f
Corporate Behavior and the Security Guidelines, and weare establishing necessary rules and implementing
training, as well as providing periodic training in dealing
with targeted e-mail attacks. Furthermore, whenestablishing Group information systems, we take allnecessary measures to ensure safety and implement a
range of measures to prevent data leaks. In the unlikely
event that a data leak does occur, our IT systems
department will rapidly take all necessary steps toprevent the issue from spreading to affect important data
assets or persons and organizations outside thecompany and to restore information system functionality.
It will also take steps to prevent reoccurrence.

Foundation of Value Creation

Main risks and countermeasures

Safety-related in-house education

depending on the seriousness of the defect(s), there is arisk that YBHD could incur significant costs in remedying
the situation. To avoid this kind of situation, as anenterprise 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.

Evacuation drill

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 Group’s bridge business, which is the Group’s
main business area, in the civil engineering and precisionequipment businesses, most of the clients are privatesector companies. Before engaging in a business
transaction with a private-sector company, the YBHD

Training in progress

Yokogawa Bridge Holdings Integrated Report 2022

66

Financial information

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

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Net sales

887

882

1,027

1,057

1,134

1,310

1,419

1,381

1,360

1,369

Operating income

34

65

64

69

80

137

105

128

159

147

Operating income margin (%)

3.9

7.4

6.2

6.5

7.1

10.5

7.4

9.3

11.7

10.8

Ordinary income

36

65

66

69

81

138

106

129

160

149

Net income attributable to owners of the parent company

19

42

42

43

43

93

75

90

112

110

Net assets

537

595

641

655

698

806

865

920

1,039

1,107

Total assets

1,016

1,040

1,167

1,149

1,281

1,449

1,496

1,525

1,696

1,725

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

2,608.54

Net income per share (yen)

45.23

99.50

98.40

103.19102.98226.93

182.33217.61273.09267.54

4

4

5

6

6

9

12

15

21

31

Dividend (yen/share)

10.00

11.00

14.00

16.00

16.00

22.00

30.00

37.00

52.00

75.00

Dividend payout ratio (%)

22.1

11.1

14.2

15.5

15.5

9.7

16.5

17.0

19.0

28.0

Return on shareholders’ equity (%)

3.8

7.7

6.9

6.9

6.5

12.8

9.2

10.4

11.9

10.6

Shareholders’ equity

530

587

631

643

683

788

842

894

1,011

1,077

Shareholders’ equity ratio (%)

52.1

56.5

54.1

56.0

53.3

54.4

56.3

58.6

59.6

62.5

Capital expenditure

9

11

16

24

33

73

76

101

60

47

Depreciation and amortization

13

13

13

15

16

17

21

28

34

36

R&D expenses

2

2

3

3

2

2

2

4

4

4

1,529

1,567

1,626

1,649

1,663

1,687

1,749

1,800

1,891

1,940

Bridge Business

632

586

693

684

650

739

733

812

824

764

Engineering Business

230

261

300

339

428

509

633

529

483

544

Precision Equipment Business

15

25

25

26

47

53

44

32

46

54

Real Estate Business

9

8

7

7

7

7

6

6

6

6

Bridge Business

27

42

43

46

38

85

60

83

114

110

Engineering Business

11

23

22

26

40

48

43

48

45

37

Precision Equipment Business

(1)

4

3

4

7

9

8

4

9

11

Real Estate Business

4

4

3

3

3

3

4

4

3

2

Bridge Business

700

720

532

795

622

832

917

694

1,275

875

Engineering Business

219

290

469

423

463

603

573

511

571

650

Precision Equipment Business

21

22

25

30

52

51

41

37

49

55

FY

Total dividends

Number of employees (persons)Segment information
Net sales

Operating income

Order balance

Yokogawa Bridge Holdings Integrated Report 2022

Yokogawa Bridge Holdings Integrated Report 2022

Data Section

67

68

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, 2021)
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

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

19,60280,118
2,365
2,547
(0)
104,632

23,45878,337
3,562
4,011
(7)
109,363

14,4338,303
15,145580
609
39,072

14,523
8,637
15,143554
596
39,456

1,417
56
1,474

2,091
54
2,145

17,282
398
6,331
503
24,51665,062
169,695

14,505
474
6,212
391
21,58363,186
172,549

Current fiscal year
(From April 1, 2021,
to March 31, 2022)

Net sales

136,091

136,931

Cost of sales

111,287

112,743

Gross profit

24,80324,188Selling, general, and administrative expenses

8,837

9,435

Operating income

15,966

14,752Non-operating income
Interest income

56Dividends income

292

294

Insurance income and dividends received

55

49

Equity in investment revenue of affiliates

93

76

Other

66

148

Total non-operating income

513

575

Interest expense

102

73

Commitment fee

144

103

Group term insurance premiums

65

69

Prepayment of guarantee fee

36

60

Other

36

25

Total non-operating expenses

385

332

16,094

14,995Non-operating expenses

Ordinary income
Extraordinary income
21,827

Income on selling property, plant, and equipment

0

1

4,000
－
3,000
3,894
2,254
4,176
2,641
165
4,325
40,789

－
2,300
6,200
2,341
3,365
3,848
2,757
166
3,107
45,914Gain on sales of investment securities

502

1,310

Insurance income

33－

Proceeds from subsidies

97－

Total extraordinary income

633

1,312

Loss on disposal of non-current assets

92

38

Loss on valuation of investment securities

111－

Total extraordinary loss

204

38

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

300
619
1,603
70
74
139
12,237798
15,84361,758Net income before income taxes and non-controlling interests

16,523

16,269Corporate, inhabitant, and enterprise taxes

5,307

4,899

Deferred income taxes

(338)

63

Total corporate tax

4,969

4,962

Net income

11,554

11,306

9,435
10,185
79,140(3,900)94,8609,435
10,29987,488(3,872)
103,351

6,110
159
6,269
2,815
103,945
169,695

4,273
159
4,432
3,007
110,791
172,549

16,330Extraordinary loss

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

265

262

11,28911,043(Unit: million yen)

Consolidated statements of comprehensive incomePrevious fiscal year
(From April 1, 2020,
to March 31, 2021)
Net income

Current fiscal year
(From April 1, 2021,
to March 31, 2022)

11,554

11,306

Other comprehensive income
Valuation difference on available-for-sale securities

2,459(1,837)

Total other comprehensive income

2,459(1,837)

14,013

9,469

Comprehensive income attributable to owners of the parent company

13,748

9,206

Comprehensive income attributable to non-controlling interests

265

262

Comprehensive income

Data Section

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(Unit: million yen)

Consolidated statement of income Current fiscal year
(March 31, 2022)

Total comprehensive income attributable to:69

Yokogawa Bridge Holdings Integrated Report 2022

Yokogawa Bridge Holdings Integrated Report 2022

70

Financial information
Consolidated financial statements, etc.
(3) Consolidated statement of changes in shareholders’ equity(4) Consolidated statement of cash flows(Unit: million yen)Previous fiscal year (from April 1, 2020, to March 31, 2021)

(Unit: million yen)Previous fiscal year
(From April 1, 2020,
to March 31, 2021)

Current fiscal year
(From April 1, 2021,
to March 31, 2022)

Income before income taxes

16,523

16,269Depreciation and amortization

3,447

3,670

Increase (decrease) in retirement benefit liability

803

271

Increase (decrease) in allowance for executives’ retirement benefits

(196)

139

Shareholders’ equity

Balance at the beginning of the current period
Changes of items during period
Dividends of surplus
Net income attributable to owners of the parent company
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes during period
Balance at the end of the period

Share capital

Capital surplus

9,435

10,185Retained earnings
69,592(3,612)(1,741)
11,289－
9,435－
10,185

9,548
79,140

Accumulated other comprehensive income
Total accumulated
othercomprehensive
income
3,650
159
3,810

2,459
2,459
6,110

－
－
159

2,459
2,459
6,269

Total shareholder’sequity85,600(1,741)
11,289(348)
60

Valuation difference
Revaluation reserveon available-forfor landsale securities
Balance at the beginning of the current period
Changes of items during period
Dividends of surplus
Net income attributable to owners of the parent company
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes during period
Balance at the end of the period

Treasury shares(287)(3,900)Non-controllinginterests

(348)
60
9,260
94,860Total net assets

2,638

92,048

177
177
2,815

(1,741)
11,289
(348)
60
2,636
11,897
103,945

Cash flows from operating activities

Increase (decrease) in allowance for stock-based compensation

43

48

Increase (decrease) in provision for loss on construction contracts

(674)

(328)

Increase (decrease) in provision for bonuses

127

115

Increase (decrease) in other provisions

101

7

Interest and dividend income received

(298)

(301)

Interest expense

102

73

Loss (gain) on sales of investment securities(502)(1,310)Loss (gain) on sales of property, plant, and equipment

20

(1)

Loss on disposal of fixed assets

47

18

Loss (gain) on valuation of investment securities

111－

Non-cash portion of other income and expenses, etc. (net)

(78)

(66)

(14,451)

1,771

Decrease (increase) in costs on uncompleted construction contracts and work in process

(187)

(379)

Decrease (increase) in accounts receivable-other

(12)

(525)

(4,015)

5,496

Increase (decrease) in advances received on uncompleted construction contracts

(106)

1,111

Increase (decrease) in accounts payable-other

244

(46)

Increase (decrease) in deposits received

360

(573)

Decrease (increase) in notes receivable, accounts receivable from completed construction contracts and other

Increase (decrease) in notes payable, accounts payable for construction contracts and other

Increase (decrease) in accrued consumption tax, etc.
Increase (decrease) in other assets and liabilities

Current fiscal year (from April 1, 2021 to March 31, 2022)

Balance at the beginning of the current period
Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Dividends of surplus
Net income attributable to owners of the parent company
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes during period
Balance at the end of the period

Capital surplus

Retained earnings

9,435

10,185

79,1409,435

10,185

79,139Subtotal

3,679

23,259Interest and dividends received

299

302

Total shareholder’sequity94,860Interest expenses paid

(102)

(72)

Income taxes, etc., paid

(3,682)(6,415)

195

17,074(5,577)(3,738)

－
9,435

114
10,2998,349
87,488Cash flows from operating activities(1)(3,900)94,859(180)
209(2,694)
11,043
(180)
323

28
(3,872)

8,491
103,351(2,694)
11,043114(1,790)Cash flows from investing activities
Purchase of property, plant, and equipment

36

3

Purchases of intangible fixed assets(879)(1,170)

Expenditures on the purchase of investment securities

(303)

(154)

Proceeds from sales of investment securities

770

1,590

Other expenditures

(100)

(31)

Proceeds from sales of property, plant, and equipment

67

27(5,985)(3,474)

Net increase (decrease) in short-term loans payable

4,000(4,000)

Proceeds from long-term borrowings

3,848

－

Repayments of long-term debt

(3,362)(3,165)

Proceeds from the issuance of bonds

300－

Payments for the redemption of bonds

(50)

－

Payments for the purchase of treasury stock

(348)

(180)

Other proceeds
Cash flows from investing activities
Cash flows from financing activities

Non-controllinginterests

Total net assets

2,815

103,945

(0)

(1)

2,815

103,944

Proceeds from sales of treasury stock
Dividends paid

191
191
3,007

(2,694)
11,043(180)
323(1,645)
6,846
110,791

Dividends paid to non-controlling interests
Cash flows from financing activities
Foreign currency translation adjustments on cash and cash equivalents

60

323

(1,740)(2,685)

(87)

(70)

2,619

(9,779)23

45

Net increase (decrease) in cash and cash equivalents(3,147)

3,866

Cash and cash equivalents at the beginning of the period

22,73919,592

Cash and cash equivalents at the end of the period

19,592

23,458

Yokogawa Bridge Holdings Integrated Report 2022

Data Section

Yokogawa Bridge Holdings Integrated Report 2022

(3,900)(1)

Accumulated other comprehensive income
Total accumulated
Valuation difference
Revaluation reserveother
on available-forfor landcomprehensive
sale securities
incomeBalance at the beginning of the current period
6,110
159
6,269
Cumulative effects of changes inaccounting policies
Restated balance
6,110
159
6,269
Changes of items during period
Dividends of surplus
Net income attributable to owners of the parent company
Acquisition of treasury shares
Disposal of treasury stock
Net changes of items other than shareholders’ equity(1,837)(1,837)－
Total changes during period(1,837)(1,837)－
Balance at the end of the period
4,273
159
4,432

71

Treasury shares

(411)

124

(Unit: million yen)
Shareholders’ equity

Share capital

2,144

72

Location Information

List of Group Companies

A long-standing contribution to social andeconomic 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 and maintained in our company for over a
century.
This philosophy, which extends throughout theFounded in 1907, Yokogawa Bridge Corp. has played an important role in
improving social infrastructure – including bridge construction, both within
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 from design
through to installation, repair and reinforcement, rebuilding, and renewal.
The company is focused on the new bridge construction business, thebridge maintenance business (demand for which is forecasted to increasesignificantly), and the expressway large-scale upgrading and large-scale
repair business. Other business areas include the construction of specialpurpose buildings, such as high-rise buildings, domes, etc., the constructionof large, high-precision structures using ultra-precise finishing technology,
and the development of products that help to enhance the maintenance ofexisting bridges. In overseas markets, Yokogawa Bridge Corp. is focusedon improving infrastructure in regions with significant growth potential, such
as Africa and Southeast Asia.

Company History
1907 D r. Tamisuke Yokogawa founded Yokogawa Bridge Works in Nishiku, Osaka City. The Osaka Plant was established (closed in 1943).
1918 Yokogawa Bridge Works was reorganized as a joint-stock company.
1922 T he new Tokyo Plant was established in the Shibaura district ofTokyo (closed in 1969).
1964 T he Osaka Branch was established, and the Osaka Plant began
operation.
1969 T he Tokyo Branch was established, and the Chiba Plant began
operation (closed in 1999).
1991 Y okogawa Bridge Works Ltd. was renamed Yokogawa Bridge Corp.
2005 T he Bridge Stage Izumi Plant, located in Izumi City, Osaka
Prefecture, began operation.
2007 Y okogawa Bridge Holdings Corp. was established.
2007 Y okogawa Bridge Corp. became a wholly owned subsidiary of
Yokogawa Bridge Holdings Corp.
2007 A ceremony was held to commemorate the 100th anniversary of thecompany’s founding.
2019 T he Kishiwada Plant was established in Kishiwada City, Osaka
Prefecture.

YBHD Group, helps to strengthen cohesion while
also driving YBHD to create even better products

New bridge construction business

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

By expanding our domestic and international business network, we are contributing to the improvementof societal infrastructure on a global scale.

Yokogawa Bridge Holdings Corp. (YBHD) came into being in August 2007 with the aim of integrating the YBHD Group’s multi-faceted capabilities in a flexible
manner and making a substantial contribution to society. YBHD responds to customers’ diverse needs through our extensive domestic and international
networks.

Main domestic
business
locations

73

Sales Offices
Sapporo City, Hokkaido
Sendai City, Miyagi 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 2022

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)
Research Facilities
Technical Research Laboratory(Chiba Prefecture)

The Philippines
Pasig City
Yokogawa Techno
Philippines, Inc.
VietnamHanoi City
Hanoi Office
Myanmar
Yangon City
Yangon Branch

Yokogawa System Buildings Corp. was launched around a core businessof engineered structures based on a new style of building. Under thebrand name Yokogawa Engineered Structure System (“yess”), thecompany has been involved in the construction of over 10,000 buildings
throughout Japan. What makes “yess” special is that Yokogawa System
Buildings Corp. has Japan’s only dedicated engineered structure factory
and a network of more than 1,300 sales and construction agents (builders)throughout Japan, thus enabling the company to rapidly supply highquality 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., thereby providing
total integrated solutions for movable buildings that includes design,

Engineered structure – Factory

installation, and maintenance. In the future, Yokogawa System Buildings
Corp. will continue striving to realize further enhancements in the quality of
its products and services; satisfying customer needs with an approachthat emphasizes integrity while contributing to society.
Company History
1989 A n engineered structure division, the forerunner of today’s
Yokogawa System Buildings Corp., was established within
Yokogawa Bridge Works (now Yokogawa Bridge Corp.)
1990 T he Sodegaura Plant (now the Chiba Plant) was established.
2002 T he 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 T he company acquired general appraisal certification from The
Building Center of Japan (BCJ).
2019 The Mobara Plant was established.

Special-purpose
buildings – Retractable
roof

Yokogawa Bridge Holdings Integrated Report 2022

Data Section

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

Main overseas
business
locations

Yokogawa Engineered Structure System (“yess”)
buildings, which make effective use of
Yokogawa’s unique steel structure technology,
hold the highest share of the engineered
structure market.

74

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 andproduction capabilities of Sumitomo Metal Industries (now Nippon SteelCorporation). 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 everythingfrom materials development to design, manufacturing, and installation.
Through bridge construction and related products, steel segments for roadtunnels and other underground structures, harbor structures utilizing thejacket method, etc., Yokogawa NS Engineering Corp. contributes to theconstruction of resilient infrastructures in Japan with its advanced technology
development capabilities, high productivity, and solid cost competitiveness.

Bridge Business

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 afocus on Hokkaido and the Tohoku region. Going forward, Narasaki
Seisakusyo Corp. will strive to further enhance technology, safety, andquality in its bridge business, while continuing to expand its business
operations as a leading Hokkaido-based company. In the machinery steel
sector, the company will further refine its original products – including

Yokogawa Bridge Holdings Integrated Report 2022

Bridge expertise combined with IT expertise
Since its founding in 1984, Yokogawa Techno-Information Service Inc. has
focused on the development and sale of IT systems for the civilengineering and construction sector and the provision of information
processing services. The application of information technology to the civilengineering and construction sector began in the 1970s with the adoptionof CAD systems, progressed with the introduction of construction CALS
systems in the 1990s, and continued through to the recent adoption of
CIM and i-Construction. Yokogawa Techno-Information Service Inc. has
kept pace with these developments and has continued to evolve while
striving to stay one step ahead. The company’s series of information
systems for use in the design and manufacture of steel structures, with a
specific focus on bridges, are favored by many users.

Steel bridge design
Provision of a comprehensive range of services relating
to steel bridge design

Structural analysis

Yokogawa Techno-Information Service Inc. provides a wide range ofsystems and services associated with steel bridge design, including
preliminary design, detailed design, and reconstruction design. These
products and services have proved very popular with architectural
consultants, bridge manufacturers, and other customers involved inbridge design.

Using our wealth of experience and superior
technological capabilities to assist with structural
analysis

ship-lifting equipment and water treatment facilities – and will actively
work to respond to diversifying needs on a nationwide basis.

Putting in place powerful support systems for all
Group companies

Real estate property management

Company History

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

1935 N arasaki Shipbuilding Ltd. was founded in Tsukiji-cho, Muroran City.
1975 The Sakimori Plant began operation.
1984 T he company name was changed to Narasaki Seisakusyo Co., Ltd.
1986 T he company’s head office moved to its current location in
Sakimori-cho, Muroran City.
2003 N arasaki Seisakusyo Co., Ltd. became a subsidiary of Yokogawa
Bridge Corp.
2018 The new head office building was completed.

Water treatment and environmental products

We provide high-quality services covering everything from model building
tailored to customers’ needs to the creation of reports. We are able toassist with structural analysis for steel bridges and also in other fields.

Yokogawa New Life Corp. helps the YBHD Group to achieve stableearnings by playing an active role in the Group’s real estate strategy inrelation to the operational management of real estate owned and leasedby the Group.

Human resources assignment
We utilize our high-level recruitment capabilities to provide human talentthroughout Japan, both within and outside the Group. To respondeffectively to the rapid pace of change in today’s 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
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 enhanceo p e r a t i o n a l e ff i c i e n c y b y a l l o w i n g t h e m t o f o c u s o n t h e i r c o recompetencies.

Yokogawa Bridge Holdings Integrated Report 2022

Data Section

75

1977 F ounded as the Engineering Division of Sumitomo Metal Industries(now Nippon Steel Corporation).
1989 B egan operation in the Kashima Works as the Kashima Bridge
Girder Factory.
1999 T he new Kashima Bridge Girder Factory was established in Kamisu
City, Ibaraki Prefecture.
2009 S umitomo Metal Industries’ bridge business was spun off andabsorbed into Sumikin Bridge Co., Ltd.
2009 S umikin 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 Y okogawa Sumikin Bridge Corp. was renamed Yokogawa NS
Engineering Corp.

Underground structures Steel segments

Aiming to use our advanced technologicalcapabilities to create bridges that satisfy local
communities and develop products to meet
diverse needs

Ship-lifting
equipment

Company History

76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 infrastructures to one in which
the focus will be on managing and upgrading existing infrastructures, thecompany is now entering a new stage of growth. Making effective use of
the wide-ranging technology capabilities that we have accumulated inrelation to new bridge construction, as well as the reinforcement andrenewal of existing bridges, we fulfill our social mission as construction
consultants.

As of March 31, 2022

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, andother highway structures. We also conduct services ranging from third-party
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 otherstructures, 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 planningand 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

1,940 (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
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 remotemonitoring using the Internet and three-dimensional measurement using 3D
scanners, as well as utilizing audio-capable cameras to check for abnormalsounds, etc.

Information Related to the Company’s Shares

Supporting the operations of Group companies
from outside Japan
Yokogawa Techno Philippines, Inc. began in 2005 with the purpose ofundertaking some of the technical work related to the design, full-scaledrawing, and structural analysis of steel bridges in the Philippines. In
January 2018, it became the Group’s eighth operating company.
Currently, YTP supports the work of Group companies not only in steel
bridges but also in a wide range of fields, such as engineered structure
design and system development. Going forward, YTP will continue tocollaborate in the Group’s development from outside Japan throughhuman resource development to cultivate many engineers based on thetechnologies 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

6,663



As of March 31, 2022

Major shareholders (top 10)
Shareholder

Shares (thousands)

Stake (%)

6,962

16.76

Custody Bank of Japan, Ltd. (Trust Account)

4,526

10.89

Yokogawa Electric Corporation

2,234

5.38

Nippon Steel Corporation

1,987

4.78

SSBTC CLIENT OMNIBUS ACCOUNT

898

2.16

Sumitomo Realty & Development Co., Ltd.

674

1.62

Yokogawa Bridge Holdings Employee Shareholding Association

648

1.56

Nippon Life Insurance Company

543

1.30

Mitsui Sumitomo Insurance Co., Ltd.

514

1.23

Mizuho Bank, Ltd.

445

1.07

(Notes) 1. The Company, which holds 4,032,094 treasury shares, is excluded from the above major shareholders. Treasury shares (4,032,094 shares) do not include
company shares owned by the Employee Stock Ownership Plan Trust (75,400 shares) and company shares owned by the Stock Granting Trust for Officers(137,600 shares).

Data Section

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

2. Stakes are calculated, excluding treasury shares.

77

Yokogawa Bridge Holdings Integrated Report 2022

Yokogawa Bridge Holdings Integrated Report 202278

4-4-44 Shibaura, Minato-ku, Tokyo 108-0023, Japan
Tel: 03-3453-4111

Fax: 03-3453-4616

http://www.en.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

Tel: 03-5442-1701

Fax: 047-495-2910

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

Tel: 03-3453-4113

Fax: 047-410-3280

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

Tel: 047-435-6535

Fax: 0479-46-6684

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

Fax: 047-435-6538

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

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

Unit 14C Marco Polo Ortigas Manila

Tel: 0143-59-3611

Sapphire Road, Ortigas Center, 1600 Pasig City, Philippines

Fax: 0143-59-4688

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

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