Yokogawa Bridge Holdings (5911) Investor presentation summary

Current market evaluation and challenges

• ROE for FY2026 was 6.6%, just above the estimated 6% cost of equity, but below prior years and market expectations.

• PBR stands at 0.87 and PER at 13.6, both below TSE Prime construction averages, reflecting subdued market valuation.

• Decline in ROE attributed to lower revenue and profit during a transition in the core bridge business.

• Market doubts about medium- to long-term growth, especially in the engineered structure system business, have impacted PER.

• Key challenge is to restore ROE to 10% and improve market valuation by enhancing core business earnings.

Medium- to long-term management policy and business vision

• Seventh Medium-Term Management Plan (FY2025–FY2027) sets roles and visions for each business segment.

• Engineering aims to develop new fields, such as underground spaces and offshore wind power, leveraging unique technologies.

• Bridge business seeks to expand into new construction domains and overseas markets, focusing on digitalization.

• Engineered structure system targets growth through integrated digital management and diversified sales channels.

Growth strategy and sales targets

• Long-term goal is to achieve net sales of 300 billion yen by backcasting from the future vision.

• Business policies focus on productivity, new business development, and digital transformation.

• Bridge business to shift toward maintenance and broader construction work.

• Engineered structure systems to strengthen proposal-based sales and digital management.