Yokogawa Bridge Holdings Corp.

If a serious occupational accident occurs in the manufacturing or on-site division, the company may lose order opportunities due to delays in production activities or suspension of designation by clients, potentially having a material impact on business performance. There are also concerns about adverse effects on business activities due to loss of social credibility. As countermeasures, the company builds and operates an occupational health and safety management system, and promotes safety patrols, deployment of safety monitors, and utilization of fail-safe mechanisms.

If a third-party accident occurs due to a traffic accident during transportation of factory products or the falling, scattering, or collapse of materials/equipment/tools at a construction site, it may have a material adverse effect on business activities, including loss of order opportunities due to administrative dispositions such as suspension of designation, loss of social credibility, and the burden of compensation payments. As a countermeasure, the company thoroughly reflects risk countermeasures in advance in transportation plans, construction plans, and work procedure manuals.

If the company violates antitrust laws or anti-bribery regulations in Japan or overseas, it may be subject to criminal penalties or administrative dispositions, potentially affecting business performance through a decline in order intake and net sales, among other effects. As countermeasures, the company conducts self-audits across all departments based on the group's internal control system and audit regulations, and provides antitrust law training for newly appointed sales personnel and internal awareness activities on anti-bribery policy.

Due to complex factors such as the uniqueness of manufactured products, complicated structures, and short delivery times, errors may occur in the manufacturing process, creating the possibility of fraud in inspections. If such fraud is discovered, it could deal a serious blow to the social credibility and competitiveness of the group, for which safety and quality form the foundation of its business. As countermeasures, the company promotes labor-saving and automation of data collection and reporting processes using digital technology, and prevents organizational stagnation through regular personnel rotations.

If a large-scale earthquake such as the Tokyo Bay Northern Earthquake or the Nankai Trough Earthquake, or a natural disaster such as torrential rain or tsunami occurs, damage to factories or construction sites may have a material impact on business continuity. The spread of infectious diseases may also lead to construction suspensions or business site closures, which could cause schedule delays and increased countermeasure costs. As countermeasures, the company has developed a business continuity plan including preparation of disaster stockpiles, data backups between locations, and various insurance policies, and also conducts emergency drills.

If the assumed environment, such as market and economic trends, price fluctuations, and order probability/share, changes significantly after the formulation of the medium-term management plan, it may have a material impact on business performance, including a decrease in orders and deterioration in construction profit and loss. As countermeasures, the company strives for early risk detection through a regular PDCA cycle with monitoring indicators, and in February 2026 conducted and completed a tender offer for BR Holdings Co., Ltd., seeking to expand its business domain through synergy realization and PMI promotion following the company joining the group.

If the necessary human resources become insufficient due to an increase in employee turnover or failure to meet recruitment plans, risks such as a decrease in order volume, occurrence of occupational accidents, deterioration in quality, disruption of technology, and lack of successors may be anticipated. Securing and developing personnel with broad experience and skills is extremely important for maintaining the competitive advantage of the diversified businesses, including bridges, system construction, engineering, and advanced technology. As countermeasures, the company has built tiered education and training systems, job rotation systems, self-reporting systems, and personnel systems that take life events into consideration, and promotes measures to improve employee engagement.

Serious quality non-conformance in the manufacturing division may lead to large-scale re-manufacturing, potentially affecting the manufacturing processes of other projects in addition to the project in question. Quality non-conformance at construction sites may lead to difficulty completing work within the construction period due to schedule delays, causing a significant decline in customer evaluation and a substantial loss of competitiveness, which could have a material impact on business continuity. As countermeasures, the company builds and operates a quality management system, pursues continuous improvement through a PDCA cycle based on past non-conformance cases, and thoroughly requires recurrence prevention measures from subcontractors and suppliers along with confirmation at the time of delivery.

Virus infections, ransomware, external cyberattacks, or employee negligence may cause the information system to malfunction, leak confidential information, or allow servers to be hijacked, potentially leading to a suspension of corporate activities or a decline in social credibility. There is also a risk of data loss or damage due to natural disasters. As countermeasures, the company has implemented redundancy and remote backups for critical systems, multi-layered cyberattack countermeasures, robust user authentication infrastructure, incident response drills by its CSIRT, and regular assessments by external specialist providers.

The tender offer for BR Holdings Co., Ltd. conducted in February 2026 was completed, and the company joined the group from March 30, 2025; however, delays in PMI (Post Merger Integration) or the failure to realize expected synergies may reduce the ability to respond to changes in the business environment, potentially affecting business performance. As countermeasures, the company is promoting PMI on a company-wide basis to achieve early realization of synergies between the two companies, and states that it will continue to consider strategic alliances going forward.