DAI – DANREPORT2019 – 2020
Inspired by Light,
Air & Water

DAI-DAN CO., LTD.

Contents

Dai-Dan’s 116-year History

Message from Management ........................................ 03

Inspired by Light,
Air & Water

Haneda Airport Terminal 2, Tokyo (2010)

Feature: Steering Our Way to Sustainable Growth ... 12
Important Issues and Progress of Corresponding Efforts

As a comprehensive building services engineering and installation provider, Dai-Dan has continued
to use its advanced technology to add comfort and vibrancy to interior spaces where people gather.
For more than a century, we have been expanding the breadth of our expertise and securing the trustof our customers. At the same time, we are helping to achieve greater harmony with nature.

Taking on the Challenges
in the Regenerative Medicine Business ...................................... 13

Labs and Center Building, Okinawa
Institute of Science and Technology
Graduate University, Okinawa (2010)

April
2013

Sumitomo General Head Office
Building, Osaka (1907)

Bank of Japan Building, Hakodate
Branch, Hokkaido (1909)

March
1903

October
1933

Aichi Prefectural Government Office
Building, Aichi (1938)

Nagoya City Library, Aichi (1923)

February
1983
September
1981

Bank of Japan Head Office Building,Tokyo (1931)

December
1946
September
1943

January
1965

October
1975

January
1979

October
1984

April
1987

August1993

Dai-Dan’s Businesses ...................................................... 07
Corporate Profile / Financial Highlights ....................................... 07
Operational Highlights ................................................................... 08
Our Services .................................................................................. 09
Dai-Dan’s Corporate Social Responsibility ................................. 11

December
1999
September
1997

February
2002

May
2016

May
2017

April
2017

October
2017

June
2019

June
2019

May
2019

Contributions via Environment-friendly Technologies................ 17

Singapore
Branch obtains
the certificationof ISO 45001.
Groundbreaking begins
for enefice Hokkaido(temporary name for a
new office building for
the Hokkaido Branch).
Enefice Shikoku (new Shikoku
Branch office building) iscompleted.

March
2003

The company is registered as a
ZEB Leading Owner.
The company is registered as a
ZEB Planner.

The company
celebrates its
100th anniversary.
The company obtains ablanket certification of
ISO 14001 for all offices
through the nation.

Regenerative Medicine Promotion Department(Cellab Tonomachi, Kobe Office) is established.
Enefice Kyushu (new Kyushu Branch office building)is completed.
New Research Center is completed inTechnical Research Laboratory.

Enhancing Our Installation Expertise andAbility to Provide Design Solutions .............................................. 30
Continuously Improving Health and Safety Initiatives
with the Goal of Eradicating Industrial Accidents ...................... 31
Application of the Meister Program and Establishment ofPartnerships with Our Subcontractors across Japan ............... 32

Valuing Our Employees ................................................... 43
Partnering with Hosting Communities .................. 45

The company lists its stock on the firstsection of Tokyo Stock Exchange.
The corporate name is changed to DAI-DAN CO., LTD.

CREATE, Singapore (2011)

JP Tower, Tokyo (2012)

The building of head office is constructed at the current place(Edobori, Nishi-ku, Osaka City).
The company’s stock is designated on thefirst section of Osaka Securities Exchange.

Third Party Opinion ............................................................ 47
Global Network ..................................................................... 48● Editorial Policy

Singapore Branch is opened.
The company lists its stock on the second
section of Osaka Securities Exchange.
The corporate name is changed to
Osaka Denki Danbo Co., Ltd.
The corporate name is changed back to Osaka
Denki Shokai/Osaka Danbo Shokai Co., Ltd.

Medical Innovation Center Building,
Kyoto University, Kyoto (2013)
Supreme Court Office Building,Tokyo (1974)

Dai-Dan’s Practical Competence ............................. 24
Introducing Our Installations ......................................................... 25
What Dai-Dan Is Doing to Improve Productivity in the Field ..... 28

Environmental Contribution ......................................... 39
Meeting Customer Expectations .............................. 41

Singapore Branch obtains thecertification of ISO 9000S.

The corporate name is changed to
Osaka Denki Tekkan Kogyo Co., Ltd.

Dai-Dan Innovation ............................................................ 18
Start of Service for New Smart Buildings................................... 19
Office Buildings .............................................................................. 20
Pharmaceutical, Food and Research Facilities, Data Centers ... 21
Electronics and Precision Instruments Factories ....................... 22
Medical Care and Welfare Service Facilities ............................... 22
Technical Research Laboratory ................................................... 23

FY2018 CSR/ESG Performance and FY2019 Targets ... 33
Fair and Transparent Business Practices ........... 35

All offices through the nation
obtain the certification of
ISO 9000S.

Technical Research Laboratory is constructed at
Miyoshimachi, Iruma-gun, Saitama Prefecture.

Our Take on ZEB as a Building Services Engineering
and Installation Provider ............................................................... 15

Shinagawa Season Terrace,Tokyo (2014)

Since fiscal 2008, we have been publishing our CSR report as a meansof informing our stakeholders of our business operations and CSR
initiatives. In fiscal 2014, we renamed this publication the Dai-Dan
Report. Compiled as an integrated corporate report, it contains bothfinancial and non-financial data in addition to the conventional content.
This year, we added a special feature on new initiatives, activities
and projects we have under taken to steer ourselves towards
sustainable growth. In it, we lay out the issues we consider importantand report the progress we have made with the corresponding efforts.

● Scope of This Report

M-Wave Nagano Olympic Memorial
Arena, Nagano (1996)

Target organization

Osaka Denki Shokai/
Osaka Danbo Shokai Co., Ltd. isincorporated.

This report covers the operations of DAI-DAN CO., LTD. All financial
information is reported on a consolidated basis.

PeriodFounded.

This report covers the fiscal year spanning April 1, 2018, to March 31,
2019. Some data refers to activities after April 1, 2019.

● Report Guideline References
Nippon Budokan, Tokyo (1964)01

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Kansai International Airport Control Tower &Passenger Terminal, Osaka (1994)

Mozo Wonder City, Aichi (2009)

New K-1 Building, Nichia Corporation,
Tokushima (2015)

Kakogawa Central City Hospital,
Hyogo (2016)

ISO 26000
Ministry of the Environment Environmental Reporting Guidelines (2018)
GRI Sustainability Reporting Standards

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02Message from Management

Message from Management
Creating better environments

balance, building environments required for regenerative medicine and optimizing
lighting and air conditioning through IoT.

Mid-Term
Management Plan
Fiscal 2018–2020

The next generation in “comfort” created from light, air and water

Dai-Dan is creating value for next-generation buildings by leveling off building energy

net sales of completed construction contracts two years
ahead of plans, thanks to increased investment in factories,
data centers and other industrial assets and multiple orders
for large projects overseas. And, we are hoping to attain ouroperating income target one year ahead of time.
Moreover, we have already started retooling our
Mid-Term Management Plan and formulating a mid- andlong-term vision with our eyes fixed on our 120th
anniversary four years down the road.

Message from Management

The next generation in “comfort”
created from light, air and water

In April 2018, we began implementing a 3-year Mid-Term
Management Plan loaded with new strategies and polices toswiftly respond to changes in the business environment. We
have since been promoting a variety of initiatives and efforts
with which we are “challenging ourselves and creating thefuture with our technologies,” under the catchphrase of“establishing the hopeful and attractive Dai-Dan with
‘Aggressive Strength’ and ‘Supportive Strength’.”
On the performance front, we achieved our targets forboth net sales of construction contract orders received andDai-Dan — challenging ourselves andcreating the future with our technologies —Establish the hopeful and attractive Dai-Dan with “Aggressive Strength” and “Supportive Strength”
Competitive
Aggressive Strength
Strength Growing
Strength
Management
Supportive Foundation
Strength Corporate
Responsibility

Representative Director
President
DAI-DAN CO., LTD.

Strengthening provision of advanced technology

Approach to new business

Expansion of business areas by utilizing the characteristics
of building services engineering and installation business

Establishment of a robust system that is
not affected by changes

Improvement in employees’ satisfaction

Utilization of capitaland financial bases

Ongoing promotion of the compliancemanagement and strengthened governanceApproach to environmental and social
contribution activities as corporate citizen

Achievement of thesustainable society

Targeted net sales of construction contract orders received
and net sales of completed construction contracts
achieved 2 years ahead of the Mid-Term Management Plan

Ichiro Fujisawa(Billions of yen)Orders received

165

Mid-Term
Management
Plan started

160
155
150
145

147.3
143.4

140

158.5

Net sales

161.0 161.0
155.5

Projecting to achieve operating income target 1 year
ahead of the Mid-Term Management Plan
(Billions of yen)

7.8

Orders received
151 billion yen
Net sales
151 billion yen

7.2

130

7.0

FY March
2018(Result)

April
2018

Operating income
8 billion yen

7.6
7.4

FY March
2019(Result)

FY March
2020(Projected)

0Operating income

Mid-Term
Management
Plan started

8.0

135

0

Strengthening
sales force

Strengthening practical competence

8.0

7.6

7.3

FY March
2018(Result)

April
2018

FY March
2019(Result)

FY March
2020(Projected)

Shohei Kitano
Representative Director
Chairman
DAI-DAN CO., LTD.

Making maximum use of business resources
With industrial structures and social practices changing as
much as they have as of recent, we are seeking intelligent
ways to innovate our business processes so that, no matter
what the times, our customers will continue to choose
Dai-Dan. So, in April 2019, we reorganized our technicaldivisions to quickly meet rising demands for moresophisticated and specialized technologies. This included
newly establishing an Engineering Division to strengthen
our engineering proposal activities and build
environmentally advanced buildings like ZEB*, and an
Innovation Division to better promote R&D and develop
business in regenerative medicine and IoT. Both will beworking with the Technical Construction Division to
improve our engineering performance in large projects and03

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facilities that require high-tech building systems, and tochallenge new areas of business via innovation.
Moreover, in order to more flexibly relate to markets, we
divided operations geographically into the three markets ofEast, Central and West Japan. As a part of that, we havetuned our strategies for gaining orders to regional
characteristics and are allocating business resources with oureyes on the future.
At Dai-Dan, we are making maximum use of ourbusiness resources to establish for ourselves managementfoundations that enable us to adapt to changes.
* ZEB (Net-Zero Energy Building) is a state-of-the-art building technology

combining photovoltaic power generation with highly energy-efficientdesigns aiming at a Net-Zero energy balance throughout the year.

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04

Message from Management

Message from Management

Our take on ZEB as a building services engineering andinstallation provider

ZEB projects
Completed May 2016

Completed May 2019enefice Kyushu

enefice Shikoku
Completion planned forMarch 2021
enefice Hokkaido(Temporary name for a new
office building for the
Hokkaido Branch)
ZEB for cold regions

BELS 5☆

ZEB Ready Certified

BELS 5☆

ZEB Certified

1 A widely publicized program for registering businesses that are proactive in promoting energy-efficient buildings as “ZEB Leading Owners.”
2 The ZEB Planner registration system is a widely publicized program for registering design, installation, and consulting companies as “ZEB Planners” whoproactively promote the ZEB concept among building owners.

The more than a century of history we have as a company
was built entirely by “people.” We have always thought of
our employees as “our greatest assets” and, therefore,
respected each and every one as individuals and gone togreat lengths to create workplace environments where all
could bring any distinguishing qualities and demonstrate
their abilities to the best extent possible.
One effort we are making to modernize the way people
work and improve productivity at the same time is topromote i-Construction via “remote field support teams.”
Intended to efficiently provide support from a remotelocation, this new practice has steadfast produced goodresults by using webconferencing and cloud file servers sothat – for example – women working shorter hours becauseof childcare responsibilities are afforded greater flexibility

that allows them to work efficiently. By accumulating,
improving and diffusing this know-how, we will makeproductivity-improvement-driven workstyle reform evenmore visible.
In May 2019, Dai-Dan announced a Health Policy basedon the underlying belief that it is important that everyone in
the corporate workforce lead a happy life and be part of aconcerted effort to grow the company and contribute tosociety. Therefore, as an employer, Dai-Dan takes
constructive action to enhance health awareness and create
motivating workplace environments so that all employees
can build careers and feel fulfilled. Going forward, we will
modernize our recruiting practices, work requirements andemployee benefits so that, in a world premised on diversity,
Dai-Dan looks like an interesting company to work for.

The next generation in “comfort” created from light, air and water

Furthermore, as a new endeavor, we broke ground on
enefice Hokkaido (temporary name for a new officebuilding for the Hokkaido Branch) with the aim of bringing
ZEB to cold regions. In addition to our position as a ZEB
Leading Owner 1 and ZEB Planner 2, we view it as our
responsibility to spread ZEB because it is essential toshrinking carbon footprints and will, therefore, continue
the support we provide customers so that they can build or
retrofit their building assets with ZEB technologies.

Message from Management

At Dai-Dan, we are working to develop and spread ZEB
technologies that improve energy efficiency and utilize
renewable energy from a building systems perspective. As apart of those efforts, we took our ZEB technologies to thenext level through lab verifications and pilot testing atbuildings of our own, which included building a newresearch center at our Technical Research Laboratory,
retrofitting our research centers with smart technologies
and rebuilding enefice Kyushu (Kyushu Branch) and enefice
Shikoku (Shikoku Branch).

Our employees are our greatest assets.

Working with stakeholders
As a corporate entity, Dai-Dan agrees with the purport of the
Sustainable Development Goals (SDGs) adopted by theUnited Nations General Assembly and, in connection
thereto, is promoting various efforts to steer the company
along a path of sustainable growth and to help solve social
issues. We position “people-friendly environments,” a“sustainable society” and “solid corporate foundations” asimportant topics of corporate management and promote
efforts to maximize the value we provide to our stakeholders.

Moreover, Dai-Dan signed the UN Global Compact andbecame a registered participant-company in this global
platform for realizing a sustainable society in July 2019.
Under the four categories and ten principles raised in the
UN Global Compact, Dai-Dan will help to protect the global
environment by applying its latest environmental control
technologies to first and foremost realizing a low-carbon
society.

Taking on the challenges in the regenerative medicine business
At Dai-Dan, we are pursuing a variety of challenges intended
to make regenerative medicine readily and widely available
because of the promising uses with incurable anduntreatable diseases. As one such effort, we developed an“All-in-One CP Unit” with new technologies. It can be easily
installed in existing medical care facilities and enables
hospitals to build compact cleanrooms for culturing andprocessing treatment cells at low cost.
We are also hosting periodic seminars and exchanges onregenerative medicine at our Cellab Tonomachi open
innovation center and disseminating information with thecooperation of various companies.
Going forward, we will push open innovation to promote
development that serves the needs for regenerative medicine

and continue our contribution to the development andpractical application of this budding field of medical care.

Cellab Tonomachi open innovation center05

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In the lead-up to our 120th anniversary four years from now, we will strive to continuously improve our corporate value
by maintaining a constructive dialog with our stakeholders — customers, shareholders and investors, subcontractors andemployees — and continuing to meet their expectations.
We hope that you understand and support what we do as a business.
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06

Dai-Dan’s Businesses■ Fiscal 2018 Orders Received and Net Sales Ratios by Segment

Corporate Profile
Company
name

DAI-DAN CO., LTD.

Plumbing installations
39,553 million yen

16.2%

25.0%

■ Organization Chart (as of September 2019)

Ordersreceived
158,533
million yen

Shareholders’ meeting
Auditors’ meeting
Executive Committee

Board of Directors

Head office 1-9-25 Edobori, Nishi-ku, Osaka, Japan

Air conditioning
installations
92,939 million yen

Internal Audit Office

59.7%

Dai-Dan’s Businesses

FoundedNet sales
155,565
million yen

58.8%

Compliance Committee

President

15.7%

24.6%

Air conditioning
installations
93,289 million yen

Compliance Office

ChairmanElectrical installations
24,393 million yen

Plumbing installations
38,232 million yen

Electrical installations
25,690 million yen

Vice-president

March 4, 1903

Corporate Planning OfficeOsaka Expo & IR Promotions Office■ Orders Received/Net Sales

Orders received(Millions of yen)

Incorporated October 10, 1933

160,000

Innovation Division

Capital fund 4,479,725,988 yen

Sales Division
General Administration Division

121,780

125,253

80,000

TohokuEast Japan Division

131,633

40,000

Hokkaido

1,600
Employees(as of March 31, 2019) consolidated

120,000

158,533 155,565

147,335 143,448

Corporate Profile / Financial Highlights / Operational Highlights

Engineering Division
Technical Construction Division

144,007

143,503 138,346

Net sales0

Niigata

2014

2015

2016

2018

2017

(FY)

Singapore BranchTokyo Head Office

Stock listing The first section of Tokyo Stock Exchange

NagoyaCentral Japan Division

Hokuriku
Osaka Head Office■ Ordinary Income■ Net Income(Millions of yen)

(Millions of yen)

(Millions of yen)

8,000

Okayama
ChugokuWest Japan Division■ Operating Income

6,000

Shikoku
KyushuInternational Affairs OfficeFinancial Highlights

6,537 6,750

7,385 7,661

8,000
6,000

4,547

4,000

4,000

2,000

2,000

0

0

2014 2015 2016 2017 2018 (FY)6,770 6,939

7,674 8,057

6,000
5,000

4,875

4,000
3,000

4,248

4,638

5,109

2,921

2,000
1,000
0

2014 2015 2016 2017 2018 (FY)

■ Total Assets/Net Assets/Equity Capital Ratio

Total assets

2014 2015 2016 2017

Net assets■ Accounting Year(in million yen)

FY2014FY2015FY2016FY2017FY2018Orders received

131,633

143,503

144,007147,335

158,533

Net sales

121,780

138,346

125,253

143,448

155,565

Selling, general and administrative expenses

10,016

10,176

11,038

11,40011,450Operating income (loss)

4,547

6,537

6,750

7,385

7,661

Ordinary income (loss)

4,875

6,770

6,939

7,674

8,057

Net income (loss)

2,921

4,248

4,638

5,109

5,464

Return on assets (ROA) (%)

4.4

5.8

5.8

6.2

6.4

Return on equity (ROE) (%)

5.9

7.9

8.3

8.4

8.4

Cash flows from operating activities

2,427

611

5,395

3,320

(13,541)

Cash flows from investing activities

(401)

(493)

(1,442)

(315)

(232)

Cash flows from financing activities(2,344)

(894)

(925)

(1,711)(1,317)

Cash and equivalents at end of period

24,35823,536

26,54927,858

12,776■ Fiscal Year-End

120,000

112,160

120,919

117,260

90,00060,00030,000053,46254,58347.5%

130,006

58,004（％）
60.0

120,728

64,4172018 (FY)

Equity capital ratio(Millions of yen)
150,000

5,464

56.0

54.8%

52.0

66,390

48.0

49.4%

49.3%

44.0

45.0%

2014

2016

2015

2018

2017

(FY)

40.0

Operational Highlights■ Non-Financial Data

(in million yen)

Number of employees (consolidated)

FY2014FY2015FY2016FY2017FY2018

1,498

1,493

1,505

1,540

1,600

36

26

18

36

42

FY2014FY2015FY2016FY2017FY2018

Number of workplace accidents

Total assets

112,160

120,919

117,260

130,006

120,728Frequency rate of workplace accidents1

0.461

0.173

0.190

0.168

0.160

Net assets

53,46254,58358,00464,417

66,390

Severity rate of workplace accidents2

0.021

0.017

0.004

0.024

0.008

47.5

45.0

49.3

49.4

54.8

CO2 emissions from offices (tonnes)

1,745

1,618

1,732

1,749

1,645

Equity capital ratio (%)

3

1 Number of workplace accidents per million work hours 2 Number of workdays lost per thousand work hours
3 Beginning in fiscal 2018, the target was changed to reflect the new CO2 equivalent.
07

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08

Dai-Dan’s Businesses

Our Services

Plumbing
installations

Water is a precious resource. So much so, the SDGs adopted by the UN include access to safe
drinking water and toilets. Plumbing systems serve to supply clean safe-to-drink water andproperly drain wastewater.
At Dai-Dan, we believe plumbing systems can fulfill other purposes than just supplying anddraining water, such as to use rainwater and recycle wastewater, therefore we have our hands
on a lot of equipment that is designed to conserve water resources. Moreover, with piping
technology you can rely on, we can design and install utility piping systems for delivering
materials critical to production, like chemical solutions or compressed air or gas that is needed
to operate factory equipment, to wherever they are needed.

Renovations

The renovation of building systems enhances their functioning in addition to improving
performance and upgrading the interior environment. In addition, renovations enhance the value ofthe customer’s asset while extending its service life and improving the building’s energy efficiency.
We formulate a renovation plan to meet the various needs of the customer by leveraging ourown equipment diagnostic technology developed through the construction expertise we havegained from dealing with building systems through our comprehensive building services business.
We provide installations that accommodate existing needs as well as follow-up service to address
any issues that might arise.

Overseas
operations

In Singapore and Thailand, Dai-Dan has provided equipment for large projects in addition to using
our engineering expertise to design and install factory systems, etc. Moreover, besides being
directly involved in projects, we have also lent constructive support from Japan by imparting
technical training to local staff, in order to provide high-quality equipment in both countries.

D A I - D A N R E P O R T 2 019(electrical, air conditioning and plumbing installations)(air conditioning installation)(air conditioning and plumbing installations)

R&D Bldg. and Factory No. 5, Fukushima Plant
Hitachi Automotive Systems

Obihiro Kosei Hospital

GINZA SIX

Building D, Toyama Murata Manufacturing(plumbing installation)(air conditioning and plumbing installations)

Projects completed in FY2017

Agricultural Research Building, Ito Campus,
Kyushu University(electrical installation)(air conditioning and plumbing installations)(air conditioning installation)

Kurashiki Municipal Hospital, Kojima(air conditioning and plumbing installations)09

Namba SkyO

msb Tamachi Station Tower S / Pullman Tokyo Tamachi

Shibuya Solasta

Our Services / Recently Completed Noteworthy Projects

Air
conditioning
installations

Air conditioning systems are important towards “comfort” and “human productivity” because
they control the temperature, humidity, airflows and cleanliness of the indoor environments ofbuildings that envelope people. They vary widely in size and performance from typical AC
systems for office buildings to precision models required by semiconductor manufacturing
plants.
Dai-Dan has advanced technologies and vast experience with planning, designing andinstalling air conditioning systems. In fact, the large data centers that underscore today’s
internet society adopt many of our technologies — for example — to introduce cold outdoor air
in order to reduce air conditioning load and to effectively direct cooled air towards IT
equipment. Moreover, we can tap renewable geothermal energy as a heat source in order toefficiently manage a building’s energy balance. We can provide customers with whateversupport they need.

Projects completed in FY2018
Dai-Dan’s Businesses

Electricalinstallations

Electrical systems supply electricity throughout a building to run equipment and support
services. Electrical installations install the step-down transformers that receive power from thegrid and the panels that distribute power to lighting, outlets, pumps, fans and other loads, andwire all of the connections.
Electrical systems are instrumental in reducing the building’s power consumption andcarbon footprint, and effectively using renewable energy. They are composed of a variety ofequipment, such as high-efficiency transformers, solar power systems for generating electrical
power, LED lighting fixtures that help to lower power consumption, storage batteries for
optimizing power usage and IoT-driven control systems.
Dai-Dan assembles the various pieces of equipment into electrical systems that serve theintended purpose whether to build or retrofit buildings with ZEB technologies, ready buildingsfor disasters as part of business continuity planning, or other need.

Recently Completed Noteworthy Projects

Wakayama Regional Joint Government Building(air conditioning and plumbing installations)

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10

Dai-Dan’s Corporate Social
Responsibility
Day after day, Dai-Dan aspires to create value through thework we do.
The ties we share with each of our stakeholders underscore the business activities we conduct. For us, it is
our social responsibility as a corporation (CSR) to emphasize ESG (Environment/Society/Governance) andcontinuously provide value to our stakeholders and grow our business day-in and day-out.

FeatureImportant Issues and Progress of Corresponding Efforts

At Dai-Dan, we keep it mind to assess the impact of our business activities, products and services on society, therefore
we have defined important issues (materiality) related to building a sustainable society from ESG perspectives. The
initiatives, activities and projects we promote for these important issues are meant to maximize the value we provide to
our stakeholders. In this special feature, we introduce three of the efforts we are making in relation to what we treat as
important issues.

Proposing, designing and building
environments that meet customer
needs

Feature2

Promoting energy
efficiency by popularizing
the next generation in ZEB

Maintaining solid corporate
foundations
Fair and impartial procurement andcoprosperity with subcontractors

Pursuing the maximum comfort
technology can offer

Extending equipment service-lifeusing IoT and AI

Promoting workstyle reform andhealth management

Realizing comfortable environments
at low cost via i-Construction

Effective use of resources forbusiness activities

Promoting diversity

Employees

Shareholders

DAI-DAN CO., LTD.

Feature1

Environment

Providing high-quality
environments for promoting
regenerative medicine at low costFeature3

Contributions via
Environment-friendly
Technologies

Dai-Dan is continuously providing value to its stakeholders by “creating people-friendly environments,” “doing
what it can to build a sustainable society” and “maintaining its corporate foundations solid.” Each of these
directions is closely correlated with the UN’s SDGs.

Stronger governance and risk
management
Promoting local community
contribution activities

Local
community

Value that Dai-Dan Provides to Its Stakeholders

How Dai-Dan provides value to its
stakeholders

Helping to build
a sustainable society

Steering Our Way to Sustainable Growth

Creating people-friendly
environments
Customers

Subcontractors

FeatureImportant Issues (Materiality) at Dai-Dan

Stakeholder Relations
Customers,
shareholders,
employees,
subcontractors and local communities—
collectively, our stakeholders—are always
the focus of any action we take when
conducting our corporate activities. We
believe that it is imperative that we accurately
identify the expectations and requirements ofour stakeholders through communication andrespond to these needs, in order for us togrow as a company.
We therefore hold semiannual briefings on
earnings for analysts in addition tocommunicating with stakeholders by offering
tours of our facilities, issuing press releases,
and disseminating information through our
corporate website.

Steering Our Way to Sustainable
GrowthFeature1

P. 13-14

Taking on the Challenges
in the Regenerative
Medicine BusinessFeature2

P. 15-16

Our Take on ZEB as a
Building Services Engineering
and Installation Provider

Feature3

P. 17

Contributions via
Environment-friendly
Technologies

Related SDGs

Creating people-friendly environments
We create healthy and comfortable environments
where people are active.

Helping to build a sustainable society
We promote energy conservation andresource recycling via building systems.

Maintaining solid corporate foundations
We remain fair and impartial in all ofour business activities.

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12

Taking on the Challenges in the
Regenerative Medicine BusinessFeature1

On the stump to diffuse new technologies

amongst 3 operating bases●Development of newtechnologies

Kawasaki City,
Kanagawa Prefecture

Cellab Tonomachi
4F Life Innovation Center (LIC)

Verification
at CPF●Devising of new services

Kobe City,
Hyogo Prefecture

Kobe Office
6F Kobe International
Business Center (KIBC)

Open
innovation

Cellab
A name derived from “cell processing facility & open lab”
Life Innovation Center
This facility was established by Kanagawa Prefecture asa base for deriving clinical applications and pursuingcommercialization.

Miyoshi Town,
Saitama Prefecture

Technical ResearchLaboratory

Collectionof information
on needs

Element
experiment
Information
dissemination…OfficesTechnologicaldevelopment

At Cellab Tonomachi, we received diverse requests from physicians and researchers regarding clean environments for culturing
and processing cells. But, one that kept popping up was for a CPF that could be easily installed within the limited space of a
hospital or clinic. Our All-in-one CP Unit meets those needs. It packages everything required of a CPF from a changing room
to a cell preparation room into a single space-efficient unit that can be installed in a short amount of time and at low cost,effectively bringing a cell processing
environment and, by virtue thereof,
regenerative medical care to patients.
The unit has already been introducedby the Kobe Eye Center of the Kobe City
Hospital Organization, where it is being
jointly used for research by the RIKEN
National Research and Development
Agency, the Kobe Eye Center Hospitaland Dai-Dan.

Taking on the Challenges in the Regenerative Medicine Business●Information-sharing

Giving a tangible shape to needs: Development of the All-in-one CP Unit
Feature 1

With hopes and expectations growing over regenerative medicine, Dai-Dan is helping to make this promising fieldof treatment readily available to all by industrializing the core processes.
The market is steadfast expanding to global scale, but if Japan is to be the first to industrialize the science before
the rest of the world, it is going to take technological innovation and practical application from supporting
industries. Therefore, Dai-Dan is engaged in new areas of technological development and launching new services
via the coordinated operations of our Kobe Office (Kobe City, Hyogo Pref.), Technical Research Laboratory(Miyoshi Town, Saitama Pref.) and Cellab Tonomachi open innovation lab that we created within our Life
Innovation Center (LIC) in Tonomachi, Kawasaki City, Saitama Pref. specifically to head up development in thefield of regenerative medicine.

To contribute to the industrialization of regenerative medicine, we share new technologies on building clean environments
acquired at Cellab Tonomachi and things we learn proposing CPF to users at conferences and tradeshows. We also
participate in the Forum for Innovative Regenerative Medicine (FIRM) and network with the industrial world as a wholethrough the activities of the Supporting Industries Committee.

Address: R407 Life Innovation
Center, 3-25-22 Tonomachi,
Kawasaki-ku,
Kawasaki City, Kanagawa
210-0821 JAPAN
Phone: 044-276-5010
Fax: 044-280-0036

Open innovation activities at Cellab Tonomachi
The whole point of operating our open innovation lab is to build an environment suited for regenerative medicine. So, we
have installed a Cell Processing Facility (CPF) and an Air Barrier Booth1 we developed and are giving tours and doing
performance tests. Moreover, with the cooperation of related companies, we are holding seminars for users to try out our
products and proactively networking with different industries by participating in and showing at LIC events. These open
innovation activities at Cellab Tonomachi were introduced on the “Dejima” webpage operated by the Japan Productivity
Center.
●Tours
We give about 100 tours a year. The tours
are open to academia, users andcooperating companies, so we areexchanging a wide range of information.
We are also using the facility for employee
training by offering opportunities to learn
about our products in the field of
regenerative medicine.

●Hands-on seminars

These seminars are co-organized andconducted as a cooperative efforts of 4
companies (Kaneka Corp., Terumo BCT,
Inc., Ikeda Scientific Co., Ltd andDai-Dan) using Smart CP Units 2.

●Performance testing
Performance tests are run on
the CPF and developed
products of ours installed at
Cellab Tonomachi. With thecooperation of users, weevaluate system performance,
operation and management
using environmental dataacquired during actual use.

●Exhibitions

We collaborated in and exhibited at the RINK Festival 2019 organized by
the Regenerative Medicine & Cell Therapy Industrialization Network of
Kanagawa (RINK), held at the LIC.

1 A booth that provides an enclosed space of a very high clean factor
2 A space-saving cell processing environment that can be built by combining our Air Barrier Booth with the automatic cell processing units made by
Kaneka and Terumo BCT

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D A I - D A N R E P O R T 2 019

Getting medical care to the patient:

Building a support system by providing customized clean environments
The clean environment required forregenerative medicine varies in sizeand capabilities depending on the
purpose. By adding the All-in-one
CP Unit to our lineup of the Air
Barrier Booth and the Smart CP
Unit, we can propose a wide rangeof clean environments of guaranteed
quality and safety, and tailored to the
purpose of use. Further yet, we aredeveloping an Air Barrier CPF (large
booth CPF) under new concepts.
Dai-Danispromotingtheindustrialization of regenerative
medicine and helping users to build
their value chains, by developing
cell processing environments thatare safer and better tuned to userneeds.

■How Dai-Dan’s products fit into the regenerative medicine flow
Shipped products are prepared in thehospital prior to transplant surgery.
Specialized transplant institute(Organ, nerve, skin, bone, etc.)

Materials andsupplies

Reagents andculture media

Cell production
and shipping
centerLarge production
site

Cell bank

Hospital/Clinic
Air Barrier CPF(Large booth CPF)

D A I - D A N R E P O R T 2 019

14

The amount of energy consumed by buildings is increasing all across Japan. Net-Zero Energy Buildings or ZEB are
trying to reverse that and realize a low-carbon society. In fact, ever since the national government set targets on
ZEB realization and spread, there has been a rise in ZEB concepts for public structures. ZEB trends are also seenamongst privately owned buildings, as businesses are growing more and more conscious of the importance of theenvironment in corporate management. Moreover, revisions to ZEB standards have made it easier for large
buildings to win ZEB certification. This backdrop has set the stage for Dai-Dan to use proprietary technologies it
has cultivated in-house to promote the diffusion of ZEB.

■BELS 1 5☆ ZEB

Set standard primary energy
consumption
100%

Standard As designed

-52%

100%

48%

25%

0%

-25%

-62%

reduction in reduction in
consumption consumption

75%

50%

Actual38%-16%
ZEB Readycertified indesign phase

-50%

-15%

Our Take on ZEB as a Building Services Engineering and Installation Provider

Enefice Kyushu, which was completed in 2016, is drawing
attention from all over since it has acquired CASBEE,BELS and LEED 3 certifications and various awards fromacademic societies. It was also introduced on the“Innovation for SDGs” website operated by Keidanren.
Enefice Kyushu acquired ZEB Ready certification in thedesign phase as energy consumption was projected to be
68% of the standard level. In the three years since thebuilding was completed, operating method has been
improved
andsystems
continuously tuned via a PDCA
cycle just for energy efficiency.
As a result, energy consumption
in the operating phase hasreached 77% of the standard
level, which equates to a Nearly
Platinum LEED ranking
ZEB performance.

Feature 2

Completed enefice Shikoku (Shikoku Branch)

Performance of enefice Kyushu (Kyushu Branch)< Energy consumed >2

Our Take on ZEB as a Building Services
Engineering and Installation Provider< Energy generated >Feature

Solar
power

Nearly ZEB

performance attainedin operation* Data from actual operation was corrected in order
to compare data under standardized conditions.

Exhibited at ENEX 2019 and EcoPro 2018
■CASBEE 2 rank S

Completed on May 18, 2019, enefice
Shikoku was built as an office building
Photovoltaic panels
where human activity could coexist with
Smart building control system
the planet under the concepts of “greateruse of ZEB technologies,” “increased
Photovoltaic panels
Storage
Task air conditioning andcomfort through the use of IoT” and battery facility
ambient air conditioning“improved economic efficiency by using
Structuralgeneral-purpose equipment.”
thermalCeiling Free PAC
Task lighting andIn terms of building systems, Ceilingstorage(integrated equipment unit)
ambient lighting
Free package air conditioners that bundle
everything into neat units were introduced
and Clima chairs (air-conditioned chairs)
EV charging stand
Biophilia
were brought in to enhance individual
comfort. Then, to improve comfort andeconomic efficiency, indoor conditions are
Earth tubes
analyzed and the temperature setting of the
Geothermal pile for collecting heatpackage air conditioners is adjusted by thecloud-based REMOVIS automatic control
system. Other equipment and amenities include earth tubes that exchange heat between the outdoor air that is drawn in and theground, structural thermal storage that collects and stores underground heat, storage batteries as a backup power supply under BCP,
and biophilia (indoor greenery) that is effective towards relieving mental and physiological stress.
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D A I - D A N R E P O R T 2 019

We showed and gave presentations of our
ZEB technologies at the ENEX 2019 and
EcoPro 2018 energy and environmental
technology tradeshows. In both cases, wewelcomed numerous visitors to our booth. At
ENEX 2019, we introduced enefice Kyushu
and enefice Shikoku via panels and had actual
Clima chairs on site for visitors to try andexperience the IoT control technology, all ofwhich met with great reviews.

■ZEB Leading Owner■ZEB Planner

Dai-Dan has been registered as a ZEB
Leading Owner, an advanced building
owner that has constructed a net-zerobuilding. We contribute to the adoptionof ZEB by disseminating information
through tours and by encouraging
customers to experience the benefitsof net-zero construction.

Having been registered as a ZEB
Planner, we offer potential customers
consulting services such as proposal
and planning for ZEB conversions aswell as design, installation, andoperation services.

Construction record

ZEB
OthersNumber of ZEB assets

2 units

Planning record

2 units
15 units

1 Building-Housing Energy-efficiency Labeling System 2 Comprehensive Assessment System for Built Environment Efficiency
3 Leadership in Energy and Environmental Design, a green building certification system

D A I - D A N R E P O R T 2 019

16

Feature3

Contributions via Environment-friendly
Technologies
Air filter regeneration technology utilizing supercritical CO2*

Dai-Dan’s air filter regeneration business is helping to realize a sustainable, recycle-oriented society by effectively
using resources and reducing waste. Before we started doing it, used air filters that had adsorbed volatile organic
compounds (VOC) and adsorbent were being discarded in large quantities. So, we developed and applied
regeneration technology to reduce the associated environmental load. We now do business by cleaning andregenerating the air filters with supercritical CO2 and returning them to customers for reuse.

Creating the Environments that Meet Customer Requirements with

Dai-Dan Innovation
To meet the increasingly diverse needs of our customers and contribute to the emergence ofa sustainable society, we employ light, air and water more organically and with greater functionality.
With our technological capabilities, we create the environments our customers require.

TOPIC

CustomerStart of Service for New Smart Buildings P. 19●Ceiling Free
●Clima chair●Research into lighting

Supercritical
CO2 technology●Research into biophilic design

Regenerated
filter

Dai-Dan Innovation

Office Buildings

Pharmaceutical,
Food and Research Facilities,
Data Centers

P. 20●Barrier Smart Series

P. 20● ARAPAC

P. 20● iRack System

P. 20● Technology for data centers

P. 21
P. 21
P. 21
P. 21

Used filter(Performancedegraded)(Performancerecovered)

Dai-DanInnovation

Supercritical CO2 cleaning plant

DAI-DAN CO., LTD.

100 cleaning orders attained!
Supercritical CO2 is a pro-environmental way to clean air
filters because no organic solvent is used whatsoever andit effectively reduces waste since the filters can be usedover and over. We have also been applauded for using thisapproach by businesses who contribute to SDGs andinvest in ESG, and we have been fortunate to have many
repeat customers. Business is going well and, in fact, since
we launched the service in 2014, we have delivered on 100
orders. This is good for the environment, too, since 100
orders equates to about
1,000 filters, which we
calculate to be about a
20-tonne reduction in
waste.

• Fluid analysis• Water quality control• Environmental
measurement• Temperature and humidity
control

Similar technology reported elsewhere!
Mie Fujitsu Semiconductor Limited included in its
environmental report an article about a new process theybuilt to regenerate VOC adsorbent used to clean exhaustgas.
Mie Fujitsu Semiconductor
successfully prolonged theservice-life of the highperformance
activatedcharcoal used to remove
organic exhaust gases, byregenerating the activatedcharcoal with supercritical
CO2. They estimate a 75%
reduction in the amount ofactivated charcoal theypreviously discarded, which
obviously helps them toreduce their environmental
load.

• Air quality control• Precision analysis• Energy efficiency• Supercritical CO2 processing• Noise and vibration
countermeasures

Innovation Center● Technical Research Laboratory

Ｐ. 23

Electronics and Precision
Instruments Factories

Medical Care andWelfare Service Facilities●Cleanroom system with

●Karatto-Ope

virtual ducts●ion-Drop

P. 22
P. 22

●Cushion Dakki

P. 22
P. 22

Supercritical CO2 cleaning plant* CO2 at a temperature (31.1°C) and pressure (7.4 MPa) above the critical points that behaves as a fluid exhibiting both the diffusibility of a gas and solubility of a liquid.
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18

Office Buildings
TOPIC

Start of Service
for New Smart Buildings

Ceiling Free
Ceiling Free is an integrated systems package for officebuildings that neatly bundles lighting, air conditioning and fire
prevention features into an easy-to-install ceiling unit. The
lighting design and air conditioning system balances comfort
and energy efficiency by taking into account the perceived
brightness1 and by providing an active chilled beam 2.

■ Illustrated view of Ceiling Free installation■ Clima chair

Maintenance¥We can solve
this together!

Monitoring
center

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D A I - D A N R E P O R T 2 019

Cloud control
Logic data

1 The level of brightness perceived by the occupant from the amount of lightentering the eye not only from the desk surface, but also from the entire
room
Engineer
Working fromremoteMonitoring center

Customer

2 An air conditioner that incorporates cool and warm water coils. It works byblowing air supplied by the outdoor unit from nozzles at high speed, whichdraws the indoor air into the unit where it is cooled and heated by thecoils.

ON/OFF
output setting

Research into lighting
Customer’s branch
office/store

Customer’sheadquarters bldg.

Out on business

Illustrated view of cloud-based automatic control system

Reduces the maintenance andmanagement costs of building systems
ComfortCloud-based
automatic control system

Heating mode

Highly compatible with
IoT and cloud applications

Energyefficiency

Cooling mode

Start of Service for New Smart Buildings / Office Buildings

In July 2019, Dai-Dan began providing commercial serviceof its “REMOVIS” platform, a cloud-based application forautomatically controlling building systems.

Information
andcommunication
technologies (ICT) continue to evolve inleaps and bounds. Now, in this day andage, home appliances can connect to theinternet and be operated fromsmartphones and AI speakers. And, thetime is coming as well when systems andunits installed in buildings will individuallyconnect to the internet (IoT). Our
cloud-based automatic control systemrecreates the controller hardware as asoftware application that is designed forlocating in the cloud, therefore it caneasily work with all sorts of IoT-readydevices and cloud services.

The Clima chair is an air-conditioned chair that allows the user
to adjust how hot or cold it is. The preferred level of comfort isobtained from the drafts blow from both sides of the chair andthe heater in the seat. It incorporates data communication
capabilities and can send data on usage to the cloud. This data
can then be used to optimize the air conditioning such as – forexample – to lower the temperature setting if the air conditioner
is used a lot.

Dai-Dan Innovation

New building concepts like ZEB and the Wellness Office have been hatched for good reasons. So, to keep pacewith the “smart” building trend, we developed a cloud-based automatic control system that is perfect forcontrolling and managing “smart” building systems.

Clima chair

With building systems, it is necessary to check thatthe indoor environment they create is comfortable
to users and that the equipment is running
properly. If there is a problem, action must be taken
to fix it. REMOVIS enables an expert to support
this kind of maintenance and management from aremote location, which reduces the maintenanceand management costs of sophisticated building
systems. As an example, simulations have shown
that, with a midsize building that has about
20,000 m2 in gross floor area, costs associatedwith maintaining and managing building systems
can be reduced by about 10% over the lifecycle(about 60 years) of the building.

It was an issue with task ambient lighting* that indoor
environments seemed a little dark. So, we researched this typeof lighting in relation to how indoor brightness is perceived byincreasing the brightness at close, medium and far distances in
the human field of view. We came up with an inexpensive,
energy-efficient system that effectively augments theperceptionofindoor■ Room that seems brighter
brightness, by using task
than it islighting for short distances,
light guides with lightemitting panels facing
vertically downward for
medium distances andwall lighting for long
distances.

Research into biophilic design
Biophilic design plays off the concept of biophilia* and is said
to have a positive effect on people’s happiness and health. At
Dai-Dan, we see biophilic design as a beneficial component ofoffice environments and health management. So, thinking thatit could help to create a comfortable office environment, we areconducting research to identify the psychological effects that
office vegetable gardens and indoor/outdoor greenery have on
people.

■ Office vegetable garden■ Office with indoor greenery■ Illustrated view of task ambient lighting system
Far away (Wall lighting)Mid-range (Light guide)
Close (Task lighting)* A highly energy-efficient lighting system that minimizes the output ofceiling (ambient) lighting that luminates the whole room and makes up forlower brightness by using local (task) lighting that luminates only areasthat require lighting such as desks.

* A concept that holds mankind to be instinctively connected to the naturalenvironment and to feel healthy and happy when in contact with thenatural environment.

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20

Pharmaceutical, Food and Research Facilities, Data Centers
Barrier Smart Series

iRack System■ Illustrated view of Barrier Smart Series
Barrier Smart EQ

Barrier Smart AD
Maintains air pressure
when changing modes

External air inlet

Fan

Airflow
regulator

DamperBarrier Smart MT

Suppresses air pressurechanges caused by local
ventilation

Airflow
regulator

Manufacturing area
Set pressure

Set pressure

Decontamination
deviceChamberpressurecontroldamperFan
Outdoor atmospherepressure detecting
open end

Non-manufacturingarea
Set pressure

ChamberpressurecontroldamperDamperBarrier Smart CM

Stabilizes standard pressure

Animal experiments are a necessity in the development ofpharmaceuticals and medical technologies. The rooms inwhich laboratory animals are kept can harbor foul odors andallergens*, in addition to carrying the risk of microbial
contamination. Controlling animal room environments has long
been a challenge.
Over many years, Dai-Dan has developed a number ofdifferent animal housing options in an effort to improve animal
housing environments, reduce energy consumption, andaccommodate animal welfare standards.
The iRack System improves operability and prevents the air
in cages from leaking outside via unidirectional ventilation thatmakes use of our air conditioning technology. iRack also limits
ventilation only to cages, reducing the required airflow to aminimum and realizing energy savings. The iRack System
improves ventilation and ease of use, creating a more desirable
environment for both laboratory animals and handlers.

■ iRack System■ Example of system
introduction■ Illustrated view of blow
airflows

Dust and other particulate matter that clings to surfaces
because of static electricity can degrade manufacturing
environments, which can in turn impact product quality andcause any number of other problems. Focusing on the electricalforce of ions, we developed technology that prevents particles
from adhering by removing the electrostatic charge fromsurfaces. By blowing ionized air* into target areas, our ion-Drop
technology is helping to enhance both the clean factor of
manufacturing rooms and the quality of products made there.

■ The principle of ion-Drop
Duct

FilterFan

The airblow outlets were designed
to extend the reach of the airflows.

■ Diagram of animal cage

* Acronym for High Efficiency Particulate Air filter

Barrier Smart HB

Ion generator

Ions* Through ionization, a high voltage is applied to the air to create positive
and negative ions, which can eliminate static electricity.

Prevents cross-contamination
when opening and closing doors

The number of “+” indicatesthe level of pressure in thechamber.

* The main causes of changes in chamber pressure are the opening andclosing of doors, fluctuations in the outside air pressure, and changes andmode switching of air intake and exhausts.

ARAPAC* Substances that cause allergies

Medical Care and Welfare Service Facilities

Technology for data centers

Food processing plants that make flour, bread or confectioneries
and, therefore, handle large quantities of flour were running into
problems with their air conditioning not putting out and units
dying because flour was sticking to the heat exchanger coils andclogging filters. So, we developed the ARAPAC package air
conditioner with self-cleaning heat exchanger coils that prevent
performance loss due to buildup and effectively prolong theservice-life of the unit.

■ ARAPAC vs. Conventional air conditioners
Conventional
air conditioner

Clean rooms used to manufacture electronic devices
customarily require a number of air-conditioning ducts and
HEPA filters* to maintain a high clean factor and theprecision-controlled temperature and humidity. However, wedeveloped a cleanroom system with virtual ducts that, without
ducts, delivers good temperature, humidity and clean factor
uniformity.

ion-Drop

ARAPACThe wall ventilation systems that have been increasingly used
to keep data centers cool in recent years have had to balancecompeting requirements in that blown air must be slowed
before hitting the server racks yet has to reach across theentire room. At Dai-Dan, we have many a time explored ways
to improve air flows through simulations and full-scale
mockups. Moreover, data centers are known for having trouble
with controlling humidity. So, to keep our customers’ serverrooms at the best temperature and humidity, we developed avaporizing humidifier with motorized louvers that is both
energy-efficient and highly controllable.

■ Simulation of airflows
from wall ventilation

Karatto-Ope

Cushion Dakki

Hospitals that do not reheat outside air before it is blown into
operating rooms see troubles like high humidity andcondensation on medical equipment during the rainy seasons.
Karatto-Ope is an air conditioning system that recovers waste
heat from refrigerant during cooling to dehumidify the air.
Compared to conventional electric heater systems, it is far moreenergy-efficient and creates a more comfortable environment.

■ Illustrated view of Karatto-Ope
Mixes air to keep temperatureand humidity comfortable.

Special mixing unit

This product serves to absorb the volumetric expansion in
piping of centralized hot water systems* caused by heating
makeup water, and reduce corrosion in supply line piping. It
does this by spraying the fed water supply inside a tank thatconnects to the supply pipe. Because it increases the surface
area of the supplied water and subsequently contact with theair, spraying quickly releases the heat that causes expansion,and more efficiently separates and removes the residual
chlorine, dissolved oxygen and free carbon dioxide that cause
corrosion.

■ Illustrated view of Cushion Dakki ■ Hot water before
and after degassing
Cushion Dakki■ Vaporizing humidifier
with motorized louvers

Exhaust pipe

HEPA filter

Dissolved
gas

BeforeBoiler andhot water tank Air supply

Production line

pipe

Decreased air
conditioning capacity• Flour adheres to coils.
• Filter quickly becomes clogged.

21

D A I - D A N R E P O R T 2 019

Pharmaceutical, Food and Research Facilities, Data Centers / Electronics and Precision Instruments Factories / Medical Care and Welfare Service Facilities

Suppresses air pressure changes
caused by sudden winds

Cleanroom system with virtual ducts

Dai-Dan Innovation

Biological clean rooms such as those found in pharmaceuticalmanufacturing facilities require room air pressure (and airpressure in each individual room) to be closely controlled inorder to prevent dust from getting mixed in with thepharmaceuticals, as well as to prevent hazardous materials
from leaking out of the room. The Barrier Smart Series is our
proprietary pressure control technology that makes it possible
to inhibit the effect of various external disturbances* which
could disrupt room air pressure.

Electronics and Precision Instruments Factories

We’ve developed an air
conditioner with anautomatic coil washingsystem.

Ｐ

After

Overflowpipe
Hot water
supply pipe

Ｐ

Single coil

Double coils

Produces air cooler
than room temperature.

Dehumidifies air.

Hot water return pipe

* Hot water systems equipped with a return pipe and supply circulating pump

D A I - D A N R E P O R T 2 019

22

Technical Research Laboratory
At Dai-Dan, research and development activities are organized and managed on
the following three pillar concepts in order that the “controlled environments we offer are
friendly to people, things and the planet.”

1

Basic research to ensure quality

2 Technological development that offers customers new value
Our development work is promoted to offer growth areas such as the pharmaceutical and medical carefield, electronic devices industry and green products and services market technologies for reducing
environmental load, efficiently controlling indoor spaces and more in a timely manner.

3 Innovation that reaches beyond the building systems industry

Dai-Dan’s
Practical Competence

Dai-Dan’s Practical Competence

In our basic research operations, we obviously develop technologies for making buildings comfortableand energy efficient, but we also research measures against noise, vibrations and pipe corrosion, conduct
preinstallation studies using thermal fluid dynamics, and perform duct and piping tests using mockups.

Exceeding customer expectations
with knowledge, experience and action

Every building system we deal with is unique and different, which requires us
to employ flexibility and creativity when challenged to accommodate
a variety of building structures, usage patterns and customer needs.
As a building services engineering and installation provider, we are committed to exceeding
the expectations of our customers by applying the knowledge and experience we have gained
throughout our history. Moreover, since our establishment, we have exhibited the ability
to provide design solutions and installation expertise with inherent skill.
This is Dai-Dan’s practical competence in the field.

We collaborate with universities and businesses from other industries to develop and apply newtechnologies. A good example of a cooperative project that has been loudly applauded both in Japan andabroad is the air filter cleaning business that we created through joint research with academia andgovernment into regeneration technology using supercritical CO2.

Introducing Our Installations

Installation example ①

Installation example ②

Installation example ③

Takamatsu Municipal
Hospital

netXDC
Sanda Center No. 2

Teral Inc.
New ZEB Office

Aerial view of our Technical Research Laboratory in Miyoshimachi, Iruma-gun, Saitama Prefecture

TOPIC

What Dai-Dan Is Doing to Improve
Productivity in the Field

Enhancing Our Installation Expertise andAbility to Provide Design Solutions
Outside view of the new wing

Entrance to the new wingContinuously Improving Health and Safety
Initiatives with the Goal of Eradicating
Industrial Accidents

Zero Cubic model office23

D A I - D A N R E P O R T 2 019

Supercritical CO2 cleaning plant

Application of the Meister Program andEstablishment of Partnerships
with Our Subcontractors across JapanD A I - D A N R E P O R T 2 019

24

Takamatsu Municipal
Hospital

netXDC
Sanda Center No. 2

Takamatsu Municipal Hospital opened on September
1, 2018 following the merger between its predecessor
Takamatsu Municipal Hospital and the Kagawa
Medical Office.
It is a general hospital that aspires to improvemedical care in Takamatsu City as a leading hospitalwith a mission of “supporting the will to live.” Dai-Dan
installed the air conditioning and plumbing systems.

SCSK Corporation completed construction on its 10th
data center in Japan. Dai-Dan was tasked withinstalling the air conditioning and plumbing systems.
An overview of the building and featured systems isgiven below.

■ Equipment■ Building outline

Heat sources

Location

Sanda City, Hyogo Prefecture

Use

Data center

Scale

Gross floor area: About 13,200 m2
5-stories aboveground, 1-story belowground,
1-story rooftop facility(Equipment installed in 4 of 6 server rooms)

Construction Steel with base isolated structure

Use

General hospital

Scale

Gross floor area: About 28,800 m2
6-stories aboveground, 1-story rooftop facility

Beds

305 (General care: 299, Infectious diseases: 6)■ Equipment

Construction

RC + Partial SRC with base isolated structure

Heat sources

CompletedMay 2018

Takamatsu Municipal Hospital is helping residents of
Takamatsu City to live safe, secure lives by newly adding
dental and oral care to emergency care, oncology,
perinatal care and pediatrics, infectious disease
treatment, psychiatrics, health management and disease
prevention, remote care and more. The hospital’s air
conditioning and plumbing systems are criticallyimportant to patient lives and must operate stably. Muchof the equipment is out of sight, but I have to give credit
to Dai-Dan for coming through on all of the equipment
requirements despite the tight time frame.

Kunishi Yamada
Director, Takamatsu Municipal Hospital25

D A I - D A N R E P O R T 2 019

OV

Customer review

ICE

Gas-fired absorption-type cold/hot water supplier

Straight from the frontline

For this project, we crafted the plans for switching thepressure in rooms in the infectious disease ward andinstalled the equipment to do that, in line with the owner’s
request to provide “full care for disaster scenarios andinfectious diseases.” The project
was completed without a hitch
and the owner got the hospital
they wanted because of thecooperation provided by all of
the parties involved, beginningwith the owner.

Koichi Kento
Deputy Manager of Engineering Section 2
Engineering Department,Shikoku Branch

December 2018

High-efficiency inverter-driven, turbo chiller· 1,000 USRT × 5 units (2 of which are for backup)· Cooling tower water supply tank capacity for
72 hr continuous running· Water-cooled primary, pumped secondary· Water-cooled heat storage tank (effective 900 m2
capacity)(About 15 min cooling water supply available forpower outages)

Air conditioning Floor-blown air conditioning for server room ×
80 units
Electrical/UPS room air conditioning × 18 units
Package outdoor air conditioning × 2 units
Redundant cooling water lines
Sanitary

We had the cooperation of designers and installers notjust for “safety and security” but also to meet thediversifying needs of customers. For the first time ever, we
ran performance tests under mock loads assuming
overheating in the servers. It was repeated trial and error,
but we got the bugs out beforehand and smoothly started
providing services.

· Water receiving tank + Pressurized water supply
pump unit· Indoor fire hydrants, standpipes, fire
extinguishers, inert gas fire extinguishing system

In this project, we conducted various performance tests onequipment using mock loads equivalent to the 1,734-kW
server load in the server rooms. Testing was done to:1) Verify that air conditioners could cool server rooms.
2) Verify operation in the event of an air conditioner failure.
3) Verify that the specified number of air conditioners stoprunning if the temperature rise detected by the reference
sensor is over 10˚C.

Hirokazu Ishida
Data Center IT Architecture Dept., Data Center Business Div.
neX Data Center Business Div.
IT Management GroupSCSK Corporation

E

Completed

Customer review

Floor area per room: About 560 m2
About 250 racks/room plannedServer: Max. ave. 8 kVA/rackTakamatsu City, Kagawa Prefecture

IC

Server room

LocationO

Air conditioning FCU × 805 units, individual PAC
Ventilation
Outdoor AC unit ＋ Mechanical ventilation
Operating room: Clean fan unit with direct
expansion coil
5.6 kW × 24 units

4) Measure how long it takes the temperature detected by thereference sensor to rise 35˚C if all air conditioners shutdown.
5) Verify that heat sources and air conditioning continue
running on backup power from generators in the event of an
outage.

V

Gas-fired absorption-type cold/hot water supplier
1,055 kW × 2 units
Air-cooled heat pump chiller 1,043 kW × 2 units
Once-through steam boiler
219 kW × 2 units
Non-pressure hot water heater 465 kW × 2 units

Introducing Our Installations

The hospital is designated for handling type II infectious
diseases by the governor and reserves 6 of the 305 beds forcases involving those diseases.
Moreover, 6 of the 45 beds in the West Wing Infectious
Disease Ward on the 4th floor are located in rooms that canswitch between equal pressure and negative pressure. And, in
preparation for explosive outbreaks (pandemics) of newstrains of flu, a ventilation system that can isolate the entire 4th
floor under negative pressure is provided.

Installation example ②

Dai-Dan’s Practical Competence■ Building outline

Installation example ①

Straight from the frontline

Data center projects often conduct test-runs andadjustments under no load, but we ran performance tests
in this case assuming server
overheating. Since there were
no prior examples to work from,planning out the tests was achallenge, but it was a learning
experience.

Hiroshi Nishimoto
Project Master of Engineering Section 3
Engineering Department 2, Osaka Head Office

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26

Installation example ③

Teral Inc.
New ZEB Office

What Dai-Dan Is Doing to Improve
Productivity in the Field

1 Remote support teams armed with ICT and staffed with women
Dai-Dan’s Practical Competence

The new headquarters that Teral Inc. built for its 100th
anniversary was the first office building in Hiroshima
Prefecture to acquire Nearly ZEB status. Planned as amodel case in next-generation office building, it realizes
both energy efficiency and comfort as a workplaceenvironment. Dai-Dan installed the air conditioning andplumbing systems in coordination with the builder,
Obayashi Corporation.

TOPIC

Workstyle reform requires that employees do less overtime work and actually take holidays, but a field
support system and greater productivity are pressing issues in the business Dai-Dan is in. So, we killed two
birds with one stone by mobilizing women on our workforce into “Remote Support Teams” and equippingthem with ICT tools.

Who is on our remote support teams■ Building outline
Energy consumption was reduced by 77% by effectively using
a combination of “passive” architectural features to noteeaves, external fins and use of outdoor air, and “active”
architectural features like the use of well water heat, solar
power, wind power and micro-hydroelectric power.
Location

Fukuyama City, Hiroshima Prefecture

Use

Office building

Scale

Gross floor area: 2,986 m2
2-stories abovegroundConstruction

Steel construction

Completed

November 2018

What kind of support is given
Document preparation support by RTR* * Remote Team Review
The remote support team coordinates the work and scheduling that go into
preparing the plethora of drawings (studies, sleeves, integrated drawings, etc.)
needed to begin work. They also prepare documents that require more time
and the backoffice work associated therewith, such as final drawings,
instruction manuals, inspection records, text labels, etc.
Indoor space with ceiling cooling panels

Customer review
A comfortable office environment that has helped to
improve the mental productivity of employees wasproduced via ceiling cooling panels that utilize well waterand floor heating.

■ Main air conditioning equipment for
ZEB

Director of General Affairs
Teral Inc.

・Floor heating

Document preparation support (Dai-Dan)

Document review
Document reviews serve the dual purposeof assuring work quality and improving thetechnical skills of young employees. Now
that web conferencing is available and CAD
data can be projected in 3D views, it is a loteasier to spot and share errors.

Document review (Dai-Dan)

Document review (Jobsite)

2 Using ICT to enhance installation efficiency

Toshiki Katayama

・Panel cooling with well water heat source
・Heat pump air conditioning using well water heat source

To enhance the efficiency of our site management responsibilities, we are using cloud services and tabletsfor quality control operations (viewing drawings, recording site patrols, recording inspection results, etc.). We
are also employing the following tools in site evaluations.

・Micro-hydroelectric generator

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・Solar collectors + Heat storage tank for air conditioning
・Multi-mode rotary air conditioner (Desiccant air conditioner)

Introducing Our Installations / What Dai-Dan Is Doing to Improve Productivity in the Field

Each site has a remote support team consisting of full-time CAD operators and clerical staff that interact with the assigned
site every few days depending on how busy things are. To make it easier for women to handle the job, consideration is
being shown – for example – to women who are raising children by allowing them to work shorter hours.

Straight from the frontline

We opted to use well water in order to meet ZEB requirements,
but we were not sure there would be enough water until we
actually dug the well. Fortunately, there was. Moreover, thanks
to the cooperation we got fromeveryone in introducing the various
advanced systems, we were able
to deliver as the customer wanted,
so I am grateful for all of that.

• Beacons* for managing scaffolding• 3D recording• New marking systems(Tablet-linked laser pointers)• Drones for site surveillance andprogress management• Helmet-mounted cameras• Transport robots(Electric automated transport carts)■ Illustrated view of ICT used for site management operations
Cloud storage
serviceSitemanagement
app

OfficeInternet

ICT environment
in jobsite office
ICT used at jobsite
Tablet* Bluetooth device that emits location identifying

Yuki Murakami
Desiccantair conditioner

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D A I - D A N R E P O R T 2 019

signals

Chief of Engineering Section 1
Engineering Department, Chugoku Branch

D A I - D A N R E P O R T 2 019

28

Enhancing Our Installation Expertise and Ability to Provide Design Solutions
3 Use of BIM*

Case study presentations for sharing expertiseand integrity throughout Dai-Dan
We held our “11th Case Study Presentations” in November
2018. This event gives our employees an opportunity topresent the achievements they have made throughexpertise and integrity in the course of their day-to-day
work. Awards are also presented. A video conferencing
system is used so that employees across the country canparticipate. We also use a web conferencing system tobroadcast the presentation live to employees.
By taking lessons and ideas presented through the casestudies at the presentations and bringing these remarkableachievements into our offices and jobsites to share andutilize them in in-house education, we are contributing to
the further enhancement of Dai-Dan’s technical capabilities,
safety, and quality.

Model of enefice Shikoku by BIM

Routing study

Walk-through movie

Shadow simulation
Award recipients

Publication of the DAI-DAN Technical Current News
With the objective of publicizing thetechnology we develop and our research
initiatives, we publish the DAI-DAN
Technical Current News every September.
The publication gives comprehensive
explanations of experiments, assessment
methods and analysis results using charts
and images.
The 113th edition was published in September 2019.
Copies of these publications are donated to the National
Diet Library.

What Dai-Dan Is Doing to Improve Productivity in the Field / Enhancing Our Installation Expertise and Ability to Provide Design Solutions

Wind simulation

Sharing and utilizing the enhanced value generated by our on-site expertise

Dai-Dan’s Practical Competence

At Dai-Dan, we use Building Information Modeling(BIM) in our design and installation studies ofbuilding systems to ensure quality and enhance
work efficiency. In fact, we used it from theplanning and design stage of the rebuilding projectfor our own Shikoku Branch (enefice Shikoku). It
allowed us to verify piping connections, routing,
maintenance space and other important
specifications in 3D during the design process andto create a walk-through movie for confirming andsharing not only outer appearances but also
completed images of interiors and how installed
equipment is supposed to look. Moreover, thanks
to BIM, we were able to efficiently realize ahigh-quality building by running simulations of theindoor environments in respect of factors likewinds and changes in sunlight and shadows, andoptimizing lighting and ventilation equipment.
We also used BIM in another project to confirm
safety of rooftop transport by doing simulations of
those operations under diverse scenarios.

Technical Reports
Our engineering prowess has been
underscored by the various efforts,
hardships, failures and successes in ourdesign rooms and jobsites. So that these
personal experiences translate into
corporate assets and technologies, wereport them within the company as
essays in our “Technical Reports.” In our
most recent edition, we included award-winning casestudies from our Case Study Presentations and selectessays from across Japan, and introduced advanced
activities such as i-Construction, which is being used to
improve productivity.

Indoor environment simulation(Brightness perception)

Indoor lighting simulation* Building Information Modeling

A computer system not only for designing and making structural calculations for a building but also for managing the entire building
project including material selection, installation planning, costs, etc. Because all of the building’s information is centrally managed, it
enhances communications between architects, builders and owners and, by virtue thereof, the efficiency of construction work.

4 Use of AI and VR and research into platform integration with BIM
We are using AI-driven image recognition to identify installed equipment and enhance the efficiency of work
operations for verifying installation status. Moreover, we are conducting research into superimposing BIM dataover 3D images of machine rooms and other places we have photos of, in order to monitor work progressfrom a remote location. Virtual
Reality (VR) will allow us to share
JobsiteRemote locations
information from remote locations
like our head office where veteranengineers can check and instructwork. Applications in BIM likethese are also making work moreinteresting at Dai-Dan and
Camera images are used
Installation drawings created by BIM are superimposed over VR images
promoting workstyle reform thatto create a virtual realityof the jobsite to verify progress and quality.
ofthejobsite.
everyone seeks.

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D A I - D A N R E P O R T 2 019

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Step Up Training

Comment from the winnerof the Chairman’s Award

It is truly an honor to have been chosen for the
Chairman’s Award at the 11th Case Study Presentations
from amongst the many design and installation proposals
and improvement examples that were sent in from acrossthe country. My presentation on the “Establishment,
Operation and Results of the Field Support System”
reported on efforts begun by Engineering Department 3 of
the Tokyo Head Office in May 2017. In that initiative, weused ICT tools and deployed women from the workforce
to provide field support activities. We saw for ourselves
the improvement in productivity that resulted fromproperly managed installation and less working hours
required of engineers. Goingforward, we will get morebehind this activity in order todevelop it further. Thank you.

Hiroko Taguchi
Chief of Engineering Section 3
Engineering Department 3
Tokyo Head Office

Step Up Training is a component of our workshops for
employees engaged in a technical capacity, though it isopen to all in the workforce. It teaches participants
fundamental knowledge in the fields of “hospitals,”“pharmaceutical plants,” “electronic device plants,” “ZEBand energy-efficiency” and “ZEB and electricity” where
Dai-Dan’s core technologies play significant roles. For
employees who cannot attend workshops because ofwork constraints, videos are recorded and made available
for self-study through the cloud.

Training content over the past year
Hospitals

Electronic device plants• Hospital equipment guidelines
for test lab departments• Hospital equipment guidelines
for radiology departments• Basic knowledge of air
conditioning and utility systems
for electronic device plants

Pharmaceutical plants• Basics of cogeneration
systems• Basics of inverter control• Basic knowledge ofpharmaceutical plants• Basic knowledge ofpharmaceutical plants,
validations and equipment
installation

ZEB and energy-efficiency

ZEB and electricity• Basics of grid connections• Basics of solar power
generating systems

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30

Continuously Improving Health and Safety Initiatives with the Goal of
Eradicating Industrial Accidents

Application of the Meister Program and Establishment of Partnerships
with Our Subcontractors across Japan

Action Statements❶ We shall utilize “Health and Safety Management Systems” to eradicate all industrial accidents. We shall endeavor to eliminate risk andhazards in all work activities, and continuously improve and enhance the health and safety of our workplace.
❷ In compliance with workplace safety and health-related laws including our company’s internal health and safety management systems
regulations, we shall enhance health and safety standard of our employees and executives, preserve and improve their health, and create
comfortable rewarding workplaces.

❹ We shall regularly communicate with subcontractors and encourage them to launch and promote self-directed health and safety activities
with clear role assignments.
❺ We shall educate all people working for Dai-Dan in our policies for health and safety and also disclose them to the public.

■ Meister Award Ceremony

Safety performance
0.500

0.461

Target

0.400
0.300

0.350
0.230

0.200
0.100
0.000

Total work hours

0.190

0.173
0.021
0.020

0.020
0.017

Frequency rate Severity rate

Frequency rate Severity rate

FY2014FY2015Frequency rate
(frequency of workplace accidents)
The number of accident-related deaths
and injuries (four or more days off work)

0.300

0.300

0.300

Result

0.168
0.020

0.160

0.020

0.024

0.020

Severity rate (severity of accidents)
0.008

Workdays lost

Frequency rate Severity rate Frequency rate Severity rate Frequency rate Severity rate

Total work hours

0.004
FY2016

× 1,000,000

The 8th Meister Award Ceremony was held in December
2018. 760 foremen serving at Dai-Dan sites were designated
High-level Foremen, 17 of whom were named Excellent
Foremen. Furthermore, the four best foremen were certified
as Meisters.
A total of 34 Meisters have been certified to date, with
10 electrical workers, 14 plumbers, five duct installers, two
refrigerant pipers, and three insulation workers by trade.

FY2017

× 1,000

IC

Comment from a Meister

I earned the title of Dai-Dan Meister this past December
and, though I’m happy on the one hand, I recognize thatthe honor carries a lot of responsibility on the other. For
instance, at our morning heads-up meeting every day, I
check each and every worker is physically and mentally fit.
Obviously, I have to make sure that, as a team, jobsite
rules and quality controls are being observed, but I
personally believe that everyone’s physical and mental
wellbeing come first. There are also things I stress as apart of workflows. One is that anyone in the work area
must implement the practice of “pointing a finger at thepotential dangers and calling them out in a loud voice” tomake themselves aware of the risks and go about worksafely. Another thing is to constructively communicate withothers so that the jobsite is always organized and work
proceeds as planned.
Going forward, I will keep reminding myself that I am a
Dai-Dan Meister because, as such, I want to be on thesame page as the site supervisor and do my part to keep
the jobsite organized and the project on schedule, and, asa Registered Essential Technician, concern myself with
passing down skills and boosting
work efficiency. I intend to devote
myself to the job day-in day-out
with a forward-looking attitude andopenly proud to be a Dai-Dan
Meister.

Tadashi Kitazume

FY2018Sankyo-Giken Co., Ltd.

Initiatives for fiscal 2018
Targets• Elimination of accidents involving falls• Reduction of long working hours

Priority items• Observing rules and the code of conduct

when working• Keeping track of work hours andencouraging employees to take holidays

In fiscal 2018, there were 42 work related accidents at
jobsites, which was 6 more than the previous year. This
included 7 accidents due to falls from ceilings, stepladders
and platforms despite the fact that we raised “eliminating
accidents involving falls” as a target. Nevertheless, we will
doggedly pursue this same target by doing preliminary
studies as part of job planning and procedures for work in
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D A I - D A N R E P O R T 2 019

high places, taking all safety measures required by law andattentively managing daily operations. Moreover, eachindividual will be held accountable for observing standardpractices, Dai-Dan’s code of conduct and establishedrules, as no compromises will be made when it comes
work safety.
Because of our inability to secure sufficient humanresources for our own ranks, we have to increasingly rely
on temporary labor, recruits from other fields of industry
and the inexperienced. Therefore, for this new labor force,
we will be imparting periodic training beginning first andforemost with education in safety and health management
when contracted or hired.
In fiscal 2019, we are raising the following themes acrossthe company to improve our safety performance.
① Safety management premised on prevention② Keeping track of work hours and encouraging
employees to take holidays

Dai-Dan’s network of subcontractors

Meister Award Ceremony

In the building installation services industry, the availabilityof human resources varies greatly from region to region, tothe degree that labor pools can be considered unstable.
Moreover, many of the available workers are getting older
and retiring, which is making the labor shortage evenworse.
In order to maintain flexibility in our installation schedules
under these circumstances, we built a nationwide networkof subcontractors that extends beyond the purview ofindividual offices. Through this network, we can send
workers from around the country to offices where labor
shortages are anticipated. We are effectively using thisnetwork to ensure every job site has the workers it needs
and, by promoting interaction between subcontractors, weare creating in the process more opportunities for
subcontractors to improve their skills. Moreover, thenetwork helps us to safely provide customers with highquality building systems.
D A I - D A N R E P O R T 2 019

Continuously Improving Health and Safety Initiatives with the Goal of Eradicating Industrial Accidents
Application of the Meister Program and Establishment of Partnerships with Our Subcontractors across Japan❸ By continuing to reform our work style and improve work-life balance, we aim to become a desirable employer and an appealing company
that places people at the center.

We have been offering our Dai-Dan Meister Program since2011 in order to improve job safety, efficiency and quality,
and secure skilled foremen from our subcontractors.
Within the program, financial aid for high-level
certifications is given to test candidates to offset theassociated costs and financial incentives are paid to
Meisters and Excellent Foremen for the work they do at job
sites of ours, as a way of developing more Excellent
Foremen and High-Level Foremen, in addition to Meisters.
In July 2019, awards were presented to 44 certified
foremen from 30 companies and cash rewards were
presented to 139 Meisters and Excellent Foremen.

Dai-Dan’s Practical Competence“Ensuring Health and Safety” is our obligation to all the employees of our companies, their families and the society.
Dai-Dan considers the health and safety of everyone working for the company as a top priority, regardless of age, gender,
country of origin or level of ability. All employees from top management down are expected to cooperate in improving
productivity, building a motivating workplace environment, and earning and maintaining the trust of society.

O

Dai-Dan Meister Program

V

Health and Safety Philosophy

E

Maintaining quality assurance through strong partnerships with our subcontractors

Our Policies for Health and Safety32

FY2018 CSR/ESG Performance and FY2019 Targets
In order to enable continuous improvement of our CSR activities, we set targets for each fiscal year and complete the PDCA cycle
accordingly.
In this report, the FY2018 performance and the FY2019 targets are summarized according to the seven core themes of ISO 26000*.
The information is organized into ESG (Environmental, Social and Governance) categories.

Self evaluation

Target achieved

Target not achieved

Corporate governance

Build and maintain a system
to ensure ethical execution ofoperations

Compliance

Strengthen the compliance system(compliance with the Antimonopoly
Act and other relevant laws andregulations) and promote soundcorporate management

Risk management

Periodically review and revise
business continuity plans (BCP)

Environmental
conservation
initiatives

Achieve environmental management
system plan targets* Refer to page 39 for FY2018

environmental targets and results.

Valuing Our
Employees

Community
involvement anddevelopment

ConsumerissuesGroup training sessions, briefings, and seminars were held
to familiarize attendees with the importance of compliancewith laws and regulations• Published issue No. 20, 21 and 22 of Compliance News toraise awareness

Perform ongoing awareness-raising activities regarding
compliance and ensure our business activities comply with
the Antimonopoly Act and other relevant laws and regulations

37

Improve and strengthen the risk management system to maintainthe integrity of business activities
Conduct emergency drills• Review and restructure business continuity plans (BCP) as
business continuity management (BCM)

38

Achieve environmental management system plan targets* Refer to page 39 for FY2019 environmental targets.

39

Reduced customer satisfaction
Reduced quality issues

Achieve quality management system plan targets

41•

Emergency drills of the safety check system wereconducted at each office under a hypothetical disaster
scenario, to deepen everyone’s understanding of how thesystem works.

••

Number of solutions that leverage Dai-Dan
technology adopted
CO2 emission reduction through design solutions
CO2 emission reduction through adopted solutions

Promoted sustainable procurement
Installation Promoted sorting and recycling of industrial waste
Removed thermal insulation of drainpipes
Reduced the energy consumption
Reduced the use of photocopy paper
Introduced hybrid vehicles

Quality improvement
initiatives

Achieve quality management system
plan targets

Initiatives with
subcontractors

Continue the activities of thesectional committee

Implemented the activities of the sectional committee

Continue the activities of the previous fiscal year

42

Check and review the effectivenessof the Dai-Dan Mentor System

Monitored individual circumstances through additional
interviews with each mentor.

Continue the activities of the previous fiscal year―

Strengthen technical expertise

Improved technical expertise through major reviews oftraining session plans

Continue to strengthen technical expertiseContinue initiatives to raiseawareness of human rights

Raised awareness through new employee training session

Continue initiatives to raise awareness of human rights

Conducted mental health seminars
Conducted stress checks for all employees

Continue the activities of the previous fiscal year

Percentage of persons working long hours who saw
a physician (92.7%)• Percentage of persons working long hours (1.58%)

Correct issues that cause long working hours

Delivered 3 lectures at the nationwide meeting of
the Institute of Electrical Installation Engineers of Japan
Delivered 3 lectures at meetings of the Society of Heating,
Air-Conditioning and Sanitary Engineers of Japan

Continue the activities of the previous fiscal year

45

Dai-Dan’s offices across Japan voluntarily conducted
454 activities

Continue the activities of the previous fiscal year

46

Held the Case Study Presentations

Continue the activities of the previous fiscal year

Presented activity outcomes via teleconferenceContinue the activities of the previous fiscal year•

Work-related accidents increased relative to the previous
fiscal year
• Safety results (frequency and severity rates)

Achieve workplace health and safety management system plantargets

31

Held the 8th annual Dai-Dan Meister Award Ceremony

Improve and entrench the Dai-Dan Meister System

32

Work-life balance andthe work environment

Work style reformation initiatives

Social (S)Fair operating
practices

35

•
•

•

Dai-Dan’s
Practical
CompetenceThe
environment

Strengthen corporate governance to meet changes in social
trends•Partneringwith Hosting
Communities

Page

Management conducted reasonably and efficiently basedon Dai-Dan’s Corporate Governance Guidelines
Corporate law internal control system functioned appropriately• Proactively disclosed information at the appropriate time•

Officeinitiatives

Meeting
Customer
Expectations

FY2019 targets•

Solution
proposal
Planning
Designing

Environmental
Contribution

Self
evaluation

Labor
practices

FY2018 performance

Human rights

Target/Task

Dissemination oftechnical information
to external parties

Contribution to the constructionindustry

Social contribution
activities

Targeted number of activities:
more than 450

Sharing of technicalinformation

Share information obtained atworkshops

Workplace health andsafety management
systemAchieve workplace health and safety
management system plan targets

Partnerships with
subcontractors

Ensure the Dai-Dan Meister System
is implemented

FY2018 CSR/ESG Performance and FY2019 Targets

Environmental (E)Fair andTransparent
Business
Practices

Items

Our CSR Activities

Governance (G)ThemeOrganizational
governanceCore subjects of ISO 26000

43

•

•
•

30

* A guide on how businesses can operate in a socially responsible way
33

D A I - D A N R E P O R T 2 019

D A I - D A N R E P O R T 2 019

34

In order to ensure the sustainable creation of corporate value,
we seek to improve and strengthen our corporate governancesystem in a sustainable manner.

Corporate Governance

Executive Committee

General Managers’ Meeting

Executive Committee meetings are held when necessary. The
committee comprises regular members (directors, auditorsand corporate officers) who are appointed by the Board of
Directors and temporary members selected according to thesubject of the agenda. The committee develops management
policies and other policies for Dai-Dan and its groupsubsidiaries, and extensively examine the progress of goal
achievement. In addition, the committee members discuss
important matters concerning management strategy andmanagement of the company itself. The committee thenmakes recommendations to the Board of Directors as needed.

General Managers’ Meetings are, in principle, held once amonth to ensure that tasks are being executed in an integrated
manner. Management policies and measures are explained,
and the state of business operation of each office and theirrespective issues are discussed, and prompt solutions sought.

Corporate Officers’ Committee

Our basic policy on corporate governance is as follows.

• Ensure the rights and equality of shareholders• To ensure transparency, fairness, speed, and decisivedecision making, the Board of Directors will carry out its
functions appropriately and efficiently• Endeavor to disclose information appropriately and holdconstructive dialogues with shareholders• Work appropriately with stakeholders other thanshareholders■ Corporate governance system (as of September 2019)
Shareholders’ Meeting
Board ofIndependent Officers
3 external directors
2 external auditors

Appoint/dismiss
Audit report

Board of Auditors

Appoint/dismiss

Appoint/dismiss
Audit

4 auditors(including 2 external auditors)

ReportRisk Management
Committee

Consult on
important matters

10 directors(including 3 external directors)

ReportAppoint/
dismiss/
supervise

ReportExecutive Committee

Audit report(Discussion of important matters)

Compliance Office

Supervise

We have established the Dai-Dan Corporate Governance Guidelines, a policy that systematically expresses our views concerning suchmatters as the protection of shareholders’ rights, running the Board of Directors, dialogue with shareholders, and issues relating tosocial and environmental problems and other sustainability issues. We will continue taking measures to strengthen and improve
corporate governance to make it more effective.

Compliance Committee

Approve policies/
plans

Internal Audit
OfficePresident
Instruct/supervise

Internal audit

ReportInstruct (Coordinate)

ReportAudit report

Corporate
officers

Instruct/supervise

Legal
Compliance
SupportCommittee

Whistleblow/consult

ReportAppoint/dismiss/supervise

Our corporate governance system

ReportChairman
Coordinate

Plan/draft

Coordinate
Approve policies/
plans

Audit

Accounting
auditors

Appoint

Board of Directors

AdviseDai-Dan’s Corporate Governance Guidelines

Fair and Transparent Business Practices

As a building services engineering and installation provider, weare committed to the management principles of always taking
on the challenge of creating value for our customers while
contributing to the development of a better environment andstronger communities. In justifying the trust placed in us by all
stakeholders including shareholders, customers, business
partners, employees, and local communities, we remain
focused on continuously enhancing our corporate governancein order to maintain effective management practices.

Composed of three outside directors and two outside auditors,
the Board of Independent Officers meets periodically or asneeded to share information and exchange opinions (including
exchanges with the representative directors). More importantly,
they analyze the performance of the Board of Directors via aself-evaluation survey, extract issues and report those results to
the Board of Directors, and propose improvements on how the
Board of Directors and Executive Committee operate. They also
provide advice on rules governing the selection of representative
directors, remuneration for directors and corporate officers, andthe payment of performance-based bonuses.

Our CSR Activities

Our approach to corporate governance

The Corporate Officers’ Committee, in principle, meets once amonth. The committee members meet to discuss management
policies, important operational policies and decisions made by
the Board of Directors. The committee members also report onwork carried out by corporate officers.

Board of Independent Officers

Consult/report

Fair and Transparent
Business Practices

Raiseawareness/confirm

ReportAccounting audit

Notify/answer

Headquarters/Branches/Offices
Internal audit

Advise/direct/support

Report on items concerning management

Accounting audit

Affiliate companies

The objective of Dai-Dan’s corporate governance system is to ensure appropriate and efficient management by maintaining discretedecision-making, oversight, and administrative functions, thereby enabling swift and appropriate deliberation and implementation ofdecisions. We adopted a corporate auditor system and effectively utilizes the following managerial structure.

35

Board of Directors

Board of Auditors

The Board of Directors comprises 10 directors, three of which
are external directors. It convenes monthly and holds special
meetings as necessary. In addition to overseeing business
operations, the board deliberates on important matters related
to corporate management, including subjects discussed in
Executive Committee meetings. The articles of incorporation of
Dai-Dan provide that the Board of Directors should consist of
12 people or less.

The Board of Auditors comprises four auditors (two of whomare external auditors). In principle, they meet prior to Board of
Directors meetings. They thoroughly examine the issues
discussed at Board of Directors meetings, attend the meetingsin person, and contribute their views as necessary.
According to the audit policy and audit plan established by
the Board of Auditors, the auditors monitor the directors’
fulfillment of their duties by conducting audits of offices incooperation with accounting auditors. Their responsibilities
include attendance at Board of Directors meetings and otherimportant gatherings as well as reading of important
documents requiring approval.

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Internal control system
We have developed an internal control system that focuses on
the improvement of internal rules. This is intended to ensurecompliance across our entire company and subsidiaries andincludes the execution of tasks by directors in compliance withlaws and the articles of incorporation as well as appropriate
performance of all tasks. In addition, we confirm theoperational status of the company’s internal control systemeach fiscal year and report our findings to our Board of
Directors while continuing to revise and improve this system inorder to improve efficiency and legal compliance.

Internal control system for financial reportingIn April 2008, we implemented an internal control system forfinancial reporting under the Financial Instruments andExchange Act. The Internal Audit Office under the president
examines and assesses the effectiveness of the system.
The fiscal 2018 assessment concluded that, as of the endof fiscal 2018, our internal control system for financial reportingis effective. An independent auditor also provided a similar
opinion.

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36

Compliance (Legal Compliance and Corporate Ethics)

Risk Management

Risk management policy and system

Corporate Code of Ethics
We have developed five Action Principles and 14 Action Standards to guide our officers’ and employees’ compliance with laws andregulations and support their demonstration of good social conscience. The Action Principles summarize the concepts to be kept topof mind during the performance of day-to-day tasks.

■ Excerpt from our Corporate Code of Ethics Our Action Standards serve as practical guidelines to the Action Principles on which they are based.
Action Standards

1. Observe laws and social norms and conduct businessactivities in a sensible manner.
2. Participate in the building of a society that can sustain its
development.
3. Respect the fundamental human rights of all.
4. Maintain a fair and transparent relationship withstakeholders.
5. Recognize our place in society and strive to contribute to
the emergence of a better society.

1. Maintain positive relationships withcustomers and users
2. Ensure safety and quality
3. Ensure fair and open competition
4. Engage in ethical business transactions
5. Fairly disclose corporate information
6. Ethically manage critical information
7. Protect and respect intellectual property
rights

8. Improve working conditions and work
environments
9. Respect human rights and individuality
10. Address environmental issues
11. Practice proper accounting and tax payment
12. Maintain sound relationships with politicians andthe government
13. Eliminate any dealings with antisocial forces
14. Avoid engaging in self-serving actions■ Risk management system
Board ofDirectors(General Administration
Division)

Corporate
Planning Office

Risk Management Committee(Committee members)· Head of General
Administration Division· Head of Sales Division· Head of TechnicalConstruction Division· Head of Engineering
Division· Head of Innovation
Division

ReportingInternal
Audit OfficeCompliance
OfficeCoordination

International
Affairs Office
Divisions

Risk

ReportingInstruction
Risk

Risk

Risk

Business unit/office
Officers and employees

Risk

Fair and Transparent Business Practices

Risk

Dai-Dan has established a whistleblowing system and consultation
system with the purpose of swiftly identifying issues in the workplace,which are otherwise difficult to identify (behavior or actions that
contravene laws, internal regulations or social ethics). We have
implemented this by establishing a reporting route independent from theoperational chain of command. Reports can be made internally throughthese systems, but they can also be made externally via our corporate
solicitors.
Any individuals that file a report are guaranteed by the Corporate
Code of Ethics that they will not be subjected to any unfair treatment.
Reports can also be submitted anonymously to ensure the privacy of thewhistleblower.

Secretariat

Supervision

Risk

The whistleblowing system and consultation system

Representative
directors

Our CSR Activities

Action Principles

In order to continue providing value for years to come, we havebuilt a risk management system to prevent risks from
unexpectedly emerging and minimize the risks that do emerge.
We have established a Risk Management Policy to guide us in
the best direction for managing all of the risks we face.
In line with our Risk Management Rules, we have a Risk
Management Committee. Their job is to discuss risk
management decisions, look for new risks and reexamine
countermeasures, all of which they report to the Board of
Directors.
Moreover, if there is a natural disaster, leak of confidential
information or some other event that damages the company, acrisis management headquarters is set up as per the Risk
Management Rules. So, at Dai-Dan, a risk management
system that enables us to act quickly and keep losses to aminimum is in place.

Risk■ Internal whistleblowing and consultation flowchart
ReportingExternal pointof contact(Corporate solicitors)
Reporting

Whistleblower■ Primary risks and countermeasures

ReportingInternal point of contact

Notificationof results

ReportingCompliance Committee Secretariat
Compliance Committee

Investigation
Violation of laws and internal regulations

Risk

Description

Countermeasures

Information leak

Unauthorized use or external leak of information, shutdown or
malfunction of information systems, etc.

Publish a “Security Handbook,” etc. Impart training in information security.

Human resource
relatedUnattained hiring plans, loss of human resources, drop in morale, etc.

Promote workstyle reform. Conduct stress tests.

Legal

Legal compliance, contractual inadequacies, responding to changes
in social systems, etc.

Impart compliance training. Use the whistleblowing system.

Natural disasters Typhoons, river flooding, earthquakes and other natural disasters

Craft a BCP. Introduce a safety check system.

Work related

Safety, degraded quality of installed systems, etc.

Craft a safety and health management plan. Conduct jobsite patrols.

Trust

Credit recipient in financial difficulty, non-performance on contract
obligations, etc.

Take action to manage credit as appropriate. Seek an objective assessment
from an outside institution.

The Compliance Committee Secretariat acts as an internal point ofcontact.

Compliance Committee
The Compliance Committee was established to ensure compliance with laws and internal regulations, and to strengthen fair andethical company operations with strong compliance. The committee is chaired by the president, and is responsible for boosting
officers’ and employees’ compliance awareness, receiving and investigating reports of violations, and developing preventive
measures. During fiscal 2018, the committee met on five occasions.

A system to ensure thorough, fair and appropriate business operations
Dai-Dan has strengthened its compliance promotion system with the recognition that “managing the company in conformity with thespirit of compliance” is part of our management foundation. We continue to improve awareness of compliance while ensuring
thorough business operations in accordance with relevant laws and regulations.

37

Compliance Office

Legal Compliance Support Committee

The Compliance Office is under the direct control of thechairman while ensuring it remains independent from theheadquarters and offices. This office collaborates with theCompliance Committee in planning, drafting, andimplementation to help ensure that our business activities
comply with the Antimonopoly Act and other relevant laws
and regulations.
In cooperation with the Internal Audit Office, this officecontinues to monitor the compliance activities in our offices.

The Legal Compliance Support Committee is a professionalorganization supporting the Compliance Office. The
Committee is composed of external experts and provides
expert advice applicable to the initiatives carried out by theCompliance Office. It also holds seminars on legal
compliance and conducts awareness-raising activities for all
our offices.

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Initiatives to strengthen information security
The Information System User’s Guidelines are available to officers and employees
Implementation
Dateon the corporate intranet, providing cautions regarding the use of electronice-learning
January 2019equipment in everyday work.
Drill on how to handle targeted
Information security training is conducted via e-learning, and drills are conducted
August 2019e-mail attacks
on how to handle targeted e-mail attacks to increase information security
awareness and prevent the occurrence of accidents such as information leaks.
Moreover, for the purpose of strengthening information security at jobsites, we established “Network Building Guidelines for
Jobsites” and “Information Security Guidelines for Jobsites,” and make sure that countermeasures are implemented in line therewith.
We also offer training in information security to jobsite personnel.

Business continuity planning (BCP)At Dai-Dan, we formulated a business continuity
plan (BCP) to prevent chaos, minimize damage,ensure the safety of our officers, employees andtheir families, quickly provide customers withsupport and maintain the trust society places inus, in the event of a major disaster. We tested it in
September 2019 by conducting evacuation drills
at all offices in Japan. We will continue to review
and tune our BCP so that it works bet for us andour stakeholders should we ever have to use it.
First aid lesson

Fire extinguishing drill

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38

Initiatives to promote sustainable procurement

Environmental Contribution

Dai-Dan promotes sustainable procurement
to our customers, and has designated items
that are applicable to sustainableprocurement in the following five areas:
introduction of energy saving, high efficiency
equipment; use of environmentally friendly
material; introduction of highly durable
equipment; introduction of low emission
devices; and introduction of water saving
equipment. Sustainable procurement rateduring fiscal 2018 was 46.0%.

We believe it is our mission to contributeto the emergence of a society committed
to global environmental sustainability.

Environmental Conservation Initiatives■ Sustainable procurement rate

Materials andequipment purchased(millions of yen)

Sustainableprocurement

50,00040,00040,64840,550
39.2%

38.9%

42,682

43.4%

Sustainableprocurement rate
48,760

（%）
50

46.0%

44.8%

40

36,881

30,00030

20,00019,107

16,012

15,913

15,81922,42420

10,0000■ Our Environmental Management System: FY2018 environmental targets and results/FY2019 environmental targets○: Target achieved △: In progress

Proposal,planning,
designing

Sales
department
Designdepartment

Installation
department
Installation
Procurement
department

Main target oritem to be monitored

FY2018 target

FY2018 result

Assessment

FY2019 target

Number of solutions that leverage
Dai-Dan technology adopted

More than 90

99○

More than 100

CO2 emission reduction throughdesign solutions

More than
35,000 tonnes

43,314 tonnes○

More than
45,000 tonnes

CO2 emission reduction throughadopted solutions

More than
15,000 tonnes

24,669 tonnes○

More than
25,000 tonnes

Energy consumption converted toCO2 emissions―

1,303 tonnes――

Promotion of sustainable procurement

More than 45%

46.0%

○

More than 50%

Promotion of sorting of industrial waste
Quantity sorted in the field

More than
3.8/workplace

4.0/workplace○

More than
4.0/workplace

Promotion of recycling
Recycling sales proceeds

More than
60 million yen

43.259 million yen△

More than
60 million yen

Reduction of thermal insulation used
for drainpipes

More than 90,000 m

97,652 m○

More than 100,000 m

Energy consumption converted toCO2 emissions

Less than
1,600 tonnes

1,645 tonnes△

Less than
1,600 tonnes―

13,854 m³――

Less than 58 tonnes

58.0 tonnes○

Less than 56 tonnes

Increasing adoption of hybrid vehicles
and other next-generation vehicles

80%

82%

○

More than 85%

Improvement of sorting rate of general
waste

―

62.3%

―

―

Water consumption
Officeactivities

39

All
employees

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Copy paper usage

FY2015FY2016FY20170

FY2018Initiatives to sort industrial waste
At Dai-Dan, we promote the sorting ofwaste at all our installation sites. Throughout
fiscal 2018, we produced 6,871 tonnes ofindustrial waste, of which 88.4% wassorted. Furthermore, we promote awarenessof reducing industrial waste at our offices
and encourage sorting. In fiscal 2018, ouroffices produced 113 tonnes of generalwaste, of which 62% was sorted.

■ Industrial waste sorting rate
Total waste(tonnes)

Sorted waste

15,000
82.9%

84.2%

12,000

89.2%

82.5%

Sorting rate

（%）
100

88.4%

Environmental Contribution

To help realize a sustainable global environment, Dai-Dan has been providing building systems that reduce environmental loads andeffectively use resources. Going forward, we will continue to seek ways to lower the environmental load of our business activities,
enhance environmental awareness amongst our workforce, suppliers and subcontractors, and further address the challenges ofsustainable economic growth and finding solutions to troublesome social issues.
Moreover, we will make sure the building systems we install and the facilities we manage comply with environmental laws andregulations. This includes preventing leaks of hazardous substances like global warming-causing fluorocarbons, and properly
managing waste.

FY2014

Our CSR Activities

Our environmental stance

Activities andresponsible departments

1080

10,916
9,734

9,000

8,465

7,598

6,000

6,301

60
7,131

6,871

6,631
5,471

6,074

40

3,000

0

20

FY2014FY2015FY2016FY20170

FY2018

Quality and Environmental Management System
Our environmental management system was integrated with our quality management system for more effective implementation.

Our Policies Regarding Quality andEnvironmental Protection■ Quality and Environmental Management System
President“As a building services engineering and installation provider, we
continually take on the challenge of creating value for our clients while
contributing to the development of a better environment and stronger
communities”; in keeping with these management principles, weensure our business practices contribute to quality and environmental
preservation. Moreover, with the goal of improving customer
satisfaction, we are contributing to the emergence of a society
committed to a sustainable environment.
1. We strive to contribute to social development and environmental preservation bycomplying with laws and norms of society regarding quality and environmental
standards as well as regulations established by our company.
2. While working to strengthen our field capabilities and improve productivity,
we strive to improve the skills of our employees and strengthen ourpartnerships with subcontractors to provide assured quality.
3. We are dedicated to developing, proposing, and applying technologies that
help to reduce environmental impact and promote the effective use ofresources and energy.
4. Through our corporate initiatives, we will contribute to the mitigation ofclimate change and the conservation of water resources while conserving
biodiversity and protecting ecosystems.
5. We, as a good corporate citizen, carry out environmental and social
contribution activities as well as positive information disclosure, to enhancecommunications with society.
6. We publicize our quality and environmental targets internally and continue tostrengthen them in order to improve the results of our initiatives.

Head Administrator of
Quality and Environmental
Management

Audit of Quality andEnvironmental
Management

Headquarters/
Business Offices

Quality andEnvironmental
Management Committee

Administrator of Quality
and Environmental
Management

Officeactivities

Sales
activities

Designactivities

Development
activities

Installation
activities

Procurement
activities

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40

Meeting Customer
Expectations

Initiatives with Subcontractors

IC
V

O

Activities with subcontractors

E

We continue to work towards ever-higher levels of
quality in order to further improve customer satisfaction.

Quality Improvement Initiatives

Our vision of quality

The Customer

Works Review Meetings
Throughout our long history we have provided building
systems and services to customers in various industries withdiverse building applications. In order to capitalize on our longtrack record of installations and our knowledge of customer
systems, we hold Works Review Meetings for each project withthe attendance of the sales, engineering and other specialized
departments concerned. We strive to provide high-quality
systems that best serve our customers from the perspectivesof functionality, quality, cost and energy efficiency.

Sectional committee activities
Design & installation to satisfy needs

Customer evaluations

High added value proposals

Points made, details shared

Achieving pleasant and safe spaces

Project evaluation meetings, sharing of points to improve on,
improving technical levels, technological development

1

Overallevaluation

Installer
capacity

2

3

3.53

2017

3.56

2016

3.53

2018

3.50

2017

3.54

2016

3.50

2018

3.46
3.51

2016

3.49

2018
Creativity
and solution 2017
proposals

3.46
3.48

2016

3.46

2018

3.44

2017

3.47

2016

3.43

Number of surveys completed: FY2016; 736/FY2017; 613/FY2018; 650

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Piping Sectional
Committee

4

2018

Installation
management 2017

Backupcapacity

41

Electricity Sectional
Committee■ Customer satisfaction survey results(4: Satisfied 3: Generally satisfied 2: Somewhat dissatisfied 1: Dissatisfied)

We have been using a Building Chart System, an internal
information system, in order to make the most of ourinstallation experiences. The Building Chart System is used torecord the details of the installation and recommendations, aswell as customer requirements for each building. We enhancecustomer satisfaction by recommending detailed renovation
options that contribute to comfortable use of a building.

■ FY2018 initiatives of the sectional committees of
the Nagoya Safety, Health & Technology Association
Sectional committee

DAI-DAN CO., LTD.

4-point scale

Building Chart System(Details of initiatives)

Topics and principal activities• Creation of a collection of
manufacturer warnings• Holding classes for acquiring
electrician qualifications• Creation of a comparison table ofstainless steel couplings for hot
water supply• Review of piping installation rules• Holding hands-on training classes
for acquiring Class 1 piping
technician qualifications• Comparative study of indoor unit
Refrigerant Sectional drain hoses• Comparative study of indoor unit
Committee
vibration damping brackets• Preparation of reference drawings forexternal wall penetration processing•Work
related accident prevention
Instrumentation
Sectional Committee activities, quality trouble prevention
activities• Adoption of new materials,
investigations into new building
Insulation & Painting
methods
Sectional Committee• Creation of a list of “Don’ts” forpainting works
Duct Sectional
Committee

Work Sectional
Committee• Creation of a calendar with mottos
for safety, quality, the environmentand cost

Delivery Sectional
Committee• Cost reduction proposals from all
members• Holding meetings to explain new
products

Meeting Customer Expectations

We conduct written customer satisfaction surveys after
completing installations to obtain detailed evaluations andfeedback from customers, which we use internally to improve
future installations and proposals. A completed project
evaluation meeting is held to analyze the survey responses,
organize the feedback, confirm technical problems, anddetermine how to make improvements. Additionally, we takethe data from the time of installation and enter it into a“Building Chart System” for managing records of our
proposals and to facilitate follow-up service.

The Nagoya Branch has 174 subcontractors in its Safety,
Health & Technology Association. The association views“safety” and “health” as topics of the highest priority and,
therefore, continuously holds discussions, workshops andother learning opportunities that delve into those subjects. It
is working to raise the bar on safety and health by making
the dangers of work-related accidents widely known,
reducing hazards and promoting health management.
Through the sectional committees, members are looking forsolutions to the current labor shortage and depleting
numbers of skilled technicians due to aging by exploring
ways to make installation methods more efficient, theintroduction of new materials and other initiatives. Efforts toenhance productivity are being promoted by sharing andhoning “technical expertise” and “practical competence.”
With regard to natural disasters, the association has aquick-response emergency support system in place that
includes putting BCPs that have been prepared for majordisasters through periodic reviews
and tuning.
Going forward, the association
will increase its cooperation with
Dai-Dan in order to better meetcustomer expectations.

Our CSR Activities

We aim to provide building systems and services of reliable
quality that assures safe use. Toward that end we are working
to improve our preliminary examination of installations, which
includes risk assessments, and working to build thecompetency of employees and subcontractors. We also aim
to further improve after-sales service through our Customer
Consultation Office and in-house information system.

Customer evaluations

To safely deliver high-quality building systems to customers bya date they desire, it is imperative that we, as the party
responsible for planning and managing projects, and the many
subcontractors that handle the installation work operate as one
in a cooperative effort underscored by both technical expertiseand skills.
Every one of our offices has a network of subcontractors
whom we have known and trusted for years. So much so that
we work together with them via sectional committees invarious fields of specialty where they are highly qualified. The
activities of these sectional committees address a wide rangeof themes, recently being how to increase efficiency andreduce labor in the wake of the ongoing manpower shortage
stemming from an aging workforce of skilled technicians andsmaller numbers of young recruits.
At Dai-Dan, we are aiming to further improve our “technicalexpertise” in terms of safety, quality and costs, and willcontinue to meet customer hopes and expectations through“manufacturing” in cohort with our subcontractors.

Comment froma subcontractor

Yutaka Wakuda
Chairman of Nagoya Dai-Gen Kai
Chairman of Nagoya Safety, Health &Technology Association
Chairman of Daidenkouji Co., Ltd.

Sectional Committee Activity Report
This report summarizes theactivities conducted by Dai-Dan
and subcontractors over thecourse of the year. It serves as aplatform for sharing the activitiesof each regional area with otherareas of Japan.

Sectional Committee Activity Report

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42

Valuing Our Employees
Respect for everyone, Support forwork-life balance.

Work-Life Balance and the Work Environment
Initiatives to reform work styles

Health Management
At Dai-Dan, we are promoting
better health and wellbeing for ourpeople. So much so that top
management’s message in May
2019 spoke to the “Dai-Dan’s Aims
in Health Management.” We havealso created a Central Health
Promotion Committee and similarcommittees for offices to explore
improvements
toworkplaceenvironments, health improvement
activities for officers and employees,
dietary guidance, and lifestyle
guidance for single persons andthose living away from their families
because of business. Our idea is todevelopthecompany
andcontribute to the realization of asustainable society by helping ourworkforce lead heathy, happy lives.

“Dai-Dan’s Aims in Health Management”
As a company, Dai-Dan firmly believes that it is critical towards corporate growth and thecontributions we try to make to develop society for the better that each and every man andwoman on our workforce leads a happy life and operates as one to achieve theaforementioned goals. Guided by this train of thought, we will be seeking ways to improve the“Quality of Life” of our people and make it possible for all of them to lead healthy, happy lives,
as a platform for corporate growth and contributing to a sustainable society.

1. Raising everyone’s awareness of healthAs a company, we will constructively support efforts to maintain and improve health inorder to raise health awareness and improve the health literacy of each and every
employee.
* Health literacy: The ability of an individual to obtain, understand and effectively use healthinformation

2. Creating healthy, motivating workplace environments (for corporate growth)
We can expect to grow as a company by creating healthy, motivating workplaceenvironments where work style reforms allow each and every one to balance work and life,and exhibit the best of their abilities.

3. Extending one’s healthy years (as a contribution to local communities and society
as a whole)
As a company, we can and will contribute to the local communities who host our business
operations and society as a whole, by supporting and training our employees and our
subcontractors’ employees so that they can be healthy and active longer.
We will promote health management activities in cooperation with group companies andsubcontractors.

By creating an environment in which all employees can workwith ease and employees can balance work with childcare, we
are working towards our next goal by devising an action plan inline with the “Act on Advancement of Measures to Support
Raising Next-Generation Children” so that all employees can
exercise their abilities to the full.

Action Plan
(April 1, 2015–March 31, 2020)
To improve the workplace environment to ensure

Target 1 that childcare leave is easy to take and the staff

easy to return

To have at least one or more male employees

Target 2 take childcare leave while the action plan is inoperation

To introduce a system of reduced working hours

Target 3 that exceeds the provisions of the Child Care andFamily Care Leave Act

Follow-up
training

Leave system
A variety of leave options are available to employees so thatthey can use their off time to refresh themselves. We also
introduced a structured holiday system and set 3 paid holidays
in summer and 2 over the New Year’s break in compliance withthe 5 paid holidays mandated in amendments to the Labor
Standards Act. Within that same system, we require
employees to schedule their annual 7-day holiday at the
beginning of the fiscal year so that holidays are taken
systematically. As an added benefit for extended service, thecompany gives travel coupons scaled to the years of service topersons who have been with the company for a long time.

■ Major leave systems(excluding statutory paid annual leave)

Type of holiday■ “Refresh leave”
take-up rate

Details

Fiscal year

Rate

Summerholiday

3 consecutive days insummer (July – Sep)

FY201686.6％

FY2017

Within 7 consecutive
days (annual)

89.9％

Refresh leave

FY2018

96.8％

Long service
leave

10 years: 3 days
20 years: 5 days
30 years: 7 days
40 years: 5 days

Initiatives to address mental healthissuesValuing Our Employees

after completing a project and during Golden Week, summer
break and other regular holidays was put in place across theorganization.
ICT is also being used to enhance work efficiency.
With regards to recruiting people out of retirement, we are
exploring changes to our corporate systems that would extend
both the retirement age and post-retirement working age, with
the intention of:• Keeping the elderly motivated by hiring them for theirtalents and potential;• Complying with amendments to the Law concerning the
Stabilization of Employment of Older Persons, and;• Supplementing pension payments with income (in periods
that pensions are not paid).

On June 1, 2018, Dai-Dan received
a Class 2 “Eruboshi” certificationfrom the Minister of Health, Labourand Welfare in recognition of its
efforts to promote the active
involvement of female employees
based on standards set in the Act on
Promotion of Women’s Participation
and Advancement in the Workplace.
“Eruboshi” certification is designed for companies that haveformulated and submitted an action plan based on the act
mentioned above. Those that are making excellent progress intheir efforts are able to receive the certification from the MHLW.
In a social environment growing increasingly diverse, wewant to enable our employees to take full advantage of theirtalents and abilities, regardless of gender, age, or other factors.

Our CSR Activities

Dai-Dan addressed work style reform by creating a committee
for spearheading the effort in September 2017. The committee
then created a roadmap of actions that corresponded to the
19 measures of the government’s Action Plan for the
Realization of Work Style Reform, before pushing ahead withthe various changes to the plethora of corporate systems andpractices needed to realize work style reform. This included
changes instituted in fiscal 2019 to improve how non-regular
employees were treated. Based on the same-job same-pay
justification, improvements were made to the pay scale andbenefits of contracted workers and persons who came out of
retirement to work.
To correct the entrenched practice of working long hours, astructured holiday system was introduced in fiscal 2019 and a
new practice of encouraging employees to take long holidays

Supporting the balance between workand home“Eruboshi” company certification

At Dai-Dan, we educate our workforce about mental health sothat they remain mentally fit and feel comfortable in theirworkplace environment. We also conduct annual stress tests
as required under amendments to the Industrial Safety and
Health Act and recommend to anyone with a high stress levelto see a physician. Moreover, follow-up interviews are done
after the stress tests, as part of providing a good a workplaceenvironment.

Employee training
Employee training at Dai-Dan begins with our program for new
recruits and continues with specialized level-based training as
employees develop their careers. Our training program for new
recruits gives incoming employees a general understanding ofequipment and systems via studies in introductory and basic
engineering, lets them see the hardware up-close throughfacility tours, and educates them in the fundamentals of ourwork flows. The rest of our training system features
multifaceted content that is geared to the level of experienceand skill of the individual. At Dai-Dan, we view human resource
development as a business priority because training passes onknowledge and skill that are instrumental to personal growth.

Congratulatory Predetermined number
or condolence of days for occasions
such as weddings
leave

Facility tour

Hands-on training about ducts

43

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44

Social contribution activities (initiatives at offices across Japan)

Partnering with Hosting
Communities

Dai-Dan promotes social contribution activities. Our major activities are clean-up of the local community, which we encourage all
employees to participate in. All the activities we run are published on the intranet notice board to raise awareness of social
contribution activities.

We undertake a variety of initiatives to makecontributions to the industry and community in
our position as a responsible corporate citizen.

Forest maintenance, tree planting, and flower planting
Names of the projects
or details

Sites

Dissemination of technical information to external parties■ External organization memberships
and positions (as of September 2019)
Organization

Advisory committee
memberAdministration
council member
General Director

Organization

Position

Kanto Gakuin University

Part-time lecturer

Kogakuin University

Part-time lecturer

The Society of Heating, Air-Conditioning
Lecturerand Sanitary Engineers of Japan
Japan Construction Training Center

Lecturer

Kanto Plumbing Contractors
Cooperative Association

Lecturer

Chugoku Branch

Tree planting volunteer activity in
Peace Park

Technical Construction
Division
Engineering Division
Innovation Division· Miyoshi Green Support Squad

Eco-cap Project

In fiscal 2018 we collected 558,000 caps,
used as a source for reprocessed plastic thatis converted to money and donated to causesthat provide medical support, vaccines,
assistance for people with disabilities, andchildren’s environmental education.

Charity Calendar
MarketIn January 2019, we collected 2,057 calendars
and datebooks for use in support activities inareas of West Japan stricken by heavy rains
and elsewhere across the country.

· Mixed-tree forest rejuvenation project· Project to promote a healthy sawtoothoak forest

We donated the used stamps collected by
the offices to the following groups:

Donation ofused stamps

General Director

In April 1993, as part of our social contribution activities for our
90th anniversary, the Dai-Dan Society Activity Fund wasestablished in the Osaka Community Foundation. From returns
on fund assets, we support social welfare enhancement
activities especially for persons with physical disabilities,
including human rights education.

Donations
Dai-Dan contributes financial support for various causes tohelp create and build a better community.
Our contributions include donations to organizations that
protect the global environment, donations to university
scholarship funds and art-related activities, and the sponsoringof community events in areas across the country where oursites are based. We continued to donate to the areas affectedby the 2011 Great East Japan Earthquake—Miyagi, Iwate, andFukushima Prefectures—to support children orphaned by thedisaster. We also gave donations to Hiroshima, Okayama, andEhime Prefectures, which experienced flooding due totorrential rains in July 2018.
In addition, we are a corporate
supporting member of NEXT
VISION, a public service corporationthat runs the “isee! movement,”
which supports participation insociety for people with visual
impairments.

Miyoshi Green Support Squad

Other activities
Activity

Details

Traffic Safety
Guard Activity

We posted traffic safety guards at the North
intersection of Toyota-shi Tsuchihashi Station.
(Toyota Branch)Donation offunds fromcharity vending
machines

Drinks are sold at the regular price toconsumers, with three to ten yen per drink
donated to charity. The donations go to street
children and their families for education andliving costs. (Okayama Branch)

Nichiban Core
Eco Project

We participated in Nichiban Core Eco Project
involving “Collection of discarded tape cores toprotect the green earth.” The funds are used toplant mangrove trees. (Kyushu Branch)Donation of
emergency
reserves

When it was time to restock emergency
reserves, food that was no longer needed but
still safe to eat was donated to a food bank that
distributed it to welfare facilities and groups,
and the needy. (Nagoya Branch, Toyota Branchand Hokuriku Branch)

Blood Drive

A blood drive bus from the Japanese Red Cross
Society is parked in front of the branch office
and we call upon employees and subcontractors
to give blood. (Hokkaido Branch, Tohoku
Branch, Niigata Branch and Nagoya Branch)
Many employees throughout Japan have given
blood through these drives.

Donation ofT-shirts forvolunteers at the
5th JDFA
Festival 2019

· Japan Overseas Christian Medical
Cooperative Service
Helps to improve the state of medical carecovered by health insurance in Asia and Africa.
· Tanzania Pole Pole Club
Assists in afforestation activities at Mount
Kilimanjaro in Tanzania, East Africa.
· Japan Animal Welfare Society
Concerned with animal welfare (funding foranimal rescue, financial assistance forspaying/neutering, etc.).

Partnering with Hosting Communities

General Director

Dai-Dan has, through its industrial associations, signed a
Disaster Prevention Agreement with local governments
concerning post-disaster emergency activities. We have also
entered into agreements directly with some municipalities andindustry organizations, and have established a system thatallows for the swift provision of post-disaster emergency
assistance.
We aim to assist with the swift recovery of the local
community and local businesses by proactively participating inreconstruction efforts of the affected region.

D A I - D A N R E P O R T 2 019

Town Open Garden Operation

Details

General Director

Assistance through the Dai-Dan Society
Activity FundSpearheaded by the Cabinet Office, Riko-challe is an event
intended to guide students interested in STEM fields to the rightcareer choices. Over 30 construction companies and groups
participated under thetheme of “Designing My
City” and drew a crowd ofsome 350 visitors. At the
Dai-Dan booth, visitors got
to experience the Clima
chair(air-conditioned
chair) and ion-Drop (static
remover).

Chiba Branch

Osaka Piping Higher Training School Lecturer

Signing of the Disaster Prevention Agreement(cooperation with local communities)

Exhibited at Riko-challe 201945

Position

The Society of Heating, Air-Conditioning
Vice Chairman
and Sanitary Engineers of Japan
Institute of Electrical Installation
General Director
Engineers of Japan
Air-conditioning & Plumbing
Vice Chairman
Contractors Associations of Japan
Japan Electrical Construction
Association
Association of Japan
Instrumentation Industry
Japanese Association of Building
Mechanical and Electrical Engineers
Association of Building Engineeringand Equipment
Japan Architecture Facilities
Inspection Association
Japan Electrical Engineer
Association■ Organizations to which Dai-Dan
employees are dispatched as lecturers

Activity

Our CSR Activities

In order to contribute to thedevelopmentofJapan’sbuilding services industry,Dai-Dan supports the runningof academic conferences anddispatches lecturers to externalorganizations. In particular,
Dai-Dan’sengineersaredispatched to external training
centers
andeducational
institutions across Japan as
lecturers to provide classes onbuilding service technologies.

Hokkaido Branch

Planting flowers amid shrubbery along
the sidewalk in front of the branch
officeCompany-wide activities

This festival is spreading and drawing
attention to soccer for people with hearing
disabilities and other physical challenges, andpromoting better understanding between
healthy and handicapped persons. Dai-Dan
donated T-shirts for the volunteer staff
through event-cosponsor Resonet GIA.

5th JDFA Festival 2019

Volunteers wearing
T-shirts donated by
Dai-DanTraffic safety patrol activities

D A I - D A N R E P O R T 2 019

46

Third Party Opinion

Global Network

This opinion statement is based on the Corporate Social Responsibility (CSR) Guideline publishedby the Japan Federation of Bar Associations. It was prepared with the cooperation of attorneys
who are members of the Kinki Branch of the Association (Hideshi Okura, Koji Busujima and Satoko
Ochi) and presents opinions based on interviews with department managers who were sent
39 questions in advance and on reviews of relevant materials.
To make the integrated corporate report easier to read, the number of pages were reduced andthe scope was limited to the main points, opting to provide more detailed information on thecompany website last fiscal year. This new approach worked as stakeholders reviewed it favorably.
I also commend how, in keeping with the times, the report reorganized CSR topics in an ESG
context.

Hiroshi Tanaka

Attorney
Former Deputy Chairman,
Osaka Bar Association
Deputy Branch Manager,
Kinki Branch of the Japan CSR
Promotion Association

D A I - D A N R E P O R T 2 019

102-8175

2-15-10 Fujimi, Chiyoda-ku, Tokyo
2-15-10 Fujimi, Chiyoda-ku, Tokyo

Zip Code

03-3261-8231

Engineering
Division

163-0515

15F Shinjuku Nomura Bldg., 1-26-2
Nishi-Shinjuku, Shinjuku-ku, Tokyo

03-5326-7133

03-3261-8231

Innovation
Division

354-0044

390 Kita-Nagai, Miyoshimachi, Iruma-gun,
Saitama Prefecture049-258-1511

Technical ResearchLaboratory
354-0044
Innovation Division

390 Kita-Nagai, Miyoshimachi, Iruma-gun,
Saitama Prefecture049-258-5725

Regenerative
Medicine Promotion
Department
210-0821
Innovation Division(Cellab Tonomachi)

R407 Life Innovation Center, 3-25-22
Tonomachi, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture044-276-5010

Regenerative
Medicine Promotion
Department
650-0047
Innovation Division(Kobe Office)Rm 654 Kobe International Business Center,
5-5-2 Minatojima-Minamimachi, Chuo-ku,
Kobe City078-302-9060

Compliance Office102-8175

2-15-10 Fujimi, Chiyoda-ku, Tokyo

03-3261-8231

Internal Audit
Office550-8520

1-9-25 Edobori, Nishi-ku, Osaka City

06-6447-8065

GeneralAdministration
Division

550-8520

1-9-25 Edobori, Nishi-ku, Osaka City

06-6447-8000

Sales Division

102-8175

2-15-10 Fujimi, Chiyoda-ku, Tokyo

03-3261-8231

100-0005#542 5F Shin-Kokusai Bldg., 3-4-1
Marunouchi, Chiyoda-ku, Tokyo

03-5223-0075

Technical
Construction
Division

Address

Branch/Office OrganizationsWest Japan Division

East Japan Division
Hokkaido Branch060-0807

5F Data Bldg., 5-8-5 Kita 7jo Nishi, Kita-ku,
Sapporo City

011-716-9116

Obihiro Office080-0010

4F Aobatokachi Bldg., 12-20 Odoriminami
Obihiro City, Hokkaido

0155-25-3559

Osaka Head
OfficeTenri Branch

550-8520

1-9-25 Edobori, Nishi-ku, Osaka City

06-6441-8231

632-0012

4-228 Toyoda-cho, Tenri City,
Nara Prefecture

0743-63-1231
078-221-7777

041-0851

4-17-40 Hondori, Hakodate City, Hokkaido

0138-55-7086

Kobe Branch651-0088

7F Nihon Seimei Sannomiya Ekimae Bldg.,
7-1-1 Onoe-dori, Chuo-ku, Kobe City

980-0811

1-15-17 Ichiban-cho, Aoba-ku,
Sendai City

022-225-7901

Kyoto Branch604-8186

2F Urbanex Oike Bldg. East Wing, 361-1 Umeya-cho,
Kurumayaoike-sagaru, Nakagyo-ku, Kyoto City

075-251-6411

030-08024F Tanuma Bldg., 2-4-10 Hon-cho,
Aomori City

017-773-1582

Wakayama
Office640-8203

4F-408 Nankai Wakayamashi Station Bldg.,
3-17 Higashikuramae-cho, Wakayama City

073-433-9431

Akita Office010-0951

6F Sanno Piares Bldg., 2-2-17 Sanno,
Akita City

018-824-6491

Shiga Office527-0025#11 Janty 21, 6-55 Yokaichi Higashihonmachi,
Higashi-omi City, Shiga Prefecture

0748-25-5400

Morioka Office020-0032

Hiramatsu Bldg., 2-16 Yugaose-cho,Morioka City019-654-3023

Okayama Branch

700-0984

6-10 Kuwada-cho, Kita-ku, Okayama City

086-223-3106

Fukushima
Office960-8031

4F Fukushima Sakaemachi Bldg., 10-21
Sakaemachi, Fukushima City024-521-4213

Chugoku Branch730-08122-22 Kakomachi, Naka-ku, Hiroshima City082-241-4171

Yamagata
Office990-0043

1F Honcho Bldg., 2-4-3 Hon-cho,
Yamagata City

023-634-2620

Yamaguchi
Office754-0011

4F Sanyo Bldg. Ogori, 4-9 Ogorimiyukimachi,
Yamaguchi City

083-976-0121
0852-27-5890

Hakodate Office
Tohoku Branch
Aomori OfficeNiigata Branch

950-0088

2-4-3 Bandai, Chuo-ku, Niigata City

025-247-0201

San-in Office690-0015#103 Heights Shalom, 2-29-13 Agenogi,
Matsue CityTokyo
Head Office102-8175

2-15-10 Fujimi, Chiyoda-ku, Tokyo

03-3261-8231

Shikoku Branch760-0032

6-17 Honmachi, Takamatsu City

087-811-2301

330-0854

3F GINZA YAMATO 3 Bldg., 1-10-2
Sakuragi-cho, Omiya-ku, Saitama City

048-644-8468

Matsuyama
Office790-0942

2-22-13 Furukawa-Kita, Matsuyama City089-957-5021

Gunma Office371-0805

7F Daidoseimei Maebashi Bldg., 3-9-5
Minami-cho, Maebashi City

027-226-7720

Kochi Office780-0088

10-16 Kitakubo, Kochi City

088-884-8231

Tochigi Office321-0953

6F Yamaguchi Bldg., 4-1-20 Higashishukugo,
Utsunomiya City028-637-3380

Tokushima
Office770-0872

4-1-10 Kitaokinosu, Tokushima City088-664-8121

Ibaraki Office300-0037

7F Regal Tsuchiura Bldg., 1-16-12 Sakuramachi,
Tsuchiura City, Ibaraki Prefecture029-825-6656

Kyushu Branch810-0023

3-1-24 Kego, Chuo-ku, Fukuoka City

092-771-4361

Chiba Branch261-0023

25F m BAY POINT Makuhari, 1-6 Nakase,
Mihama-ku, Chiba City

043-211-8881

Kumamoto
Branch

862-0941

1-7-6 Izumi, Chuo-ku, Kumamoto City

096-364-7134

Yokohama
Branch231-0062

24F Nisseki Yokohama Bldg., 1-1-8
Sakuragi-cho, Naka-ku, Yokohama City

045-683-1050

Miyata Office823-0016

680-1 Shiromaru, Miyawaka City,
Fukuoka Prefecture0949-33-2602

Saga Office841-0031#101 Sungarden Yarita, 436-1 Yaritamachi,
Tosu City, Saga Prefecture0942-84-2350

Nagasaki
Office850-0027#202 Grand Mansion, 31-3 Okeya-machi,
Nagasaki City

095-828-0772

870-0033#402 Matsumoto Bldg., 1-3-22 Chiyomachi,
Oita City

097-532-4350

Kanto BranchCentral Japan Division461-0005

16F Urbannet Nagoya Bldg., 1-1-10
Higashisakura, Higashi-ku, Nagoya City

Toyota Branch471-0835

1-20 Akebono-cho, Toyota City,
Aichi Prefecture0565-28-1841

Oita Office

Mikawa Office448-0011

5-6-4 Tsuiji-cho, Kariya City, Aichi Prefecture

0566-27-0324

Miyazaki Office 880-0933#201 Inoue Bldg., 2189-2 Kusabazaki,
Otsubo-cho, Miyazaki City

0985-54-6382

026-228-3820

Kagoshima
Office890-0046

1F San Laqua Bldg., 2-25-12 Nishida,
Kagoshima City

099-256-3662

Okinawa Office 900-0015

4F Arute Bldg. Naha, 3-15-9 Kumoji,
Naha City

098-868-1700

Nagoya Branch052-973-4750

Nagano Office380-0824

Matsumoto
Office390-0811

2F Orii Bldg., 1-1-2 Chuo, Matsumoto City,
Nagano Prefecture0263-33-7016

I sincerely thank Mr. Hiroshi Tanaka for offering his invaluable
third-party viewpoint on the 2019 Dai-Dan Report incooperation with Messrs. Okura, Busujima and Ochi.
Regarding the various issues pointed out by Mr. Tanaka, weintend to establish specific policies to resolve those issues andeffect improvements.
We will promote corporate activities aimed at creating a better
environment and stronger communities as concerted efforts ofthe entire company, as outlined in our management principles.

Shizuoka Office422-8067

17F-1704 South Pot Shizuoka, 18-1
Minami-cho, Suruga-ku, Shizuoka City054-281-3501

Mie Office514-0004

2F-B Kasama Bldg., 3-261 Sakaemachi,
Tsu City059-225-3840

International
Affairs Office

Gifu Office500-8175

2F Daini-nagazumi Bldg., 1-9 Nagazumi-cho,
Gifu City058-265-8224

Singapore Branch

Hokuriku Branch920-0902

1-6-15 Owari-cho, Kanazawa City

076-261-6147

Toyama Office930-0019

1-10-20 Yayoi-cho, Toyama City

076-441-3371

Fukui Office910-0005

4F Fukui Hosokaikan, 3-4-1 Ote,
Fukui City

0776-23-2166

Yasuo Kamei

Telephone
NumberName

Reflecting on
the third party opinions

Director, Corporate Officer, Head of General Administration Division

47

Osaka Expo & IR
Promotions OfficeTelephone
NumberAddress

5F Choeidaiichi Bldg., 1282-11
Minamiishido-cho, Nagano City

E

With regards to environmental protection, we highly commend
how Dai-Dan has gotten onboard with Japan’s Strategic
Energy Plan by linking environmental protection to its businessplans, e.g., continuing to pursue ZEB realization by setting
concrete targets on ZEB constructions and working to achieve
those targets. The importance of the environment has evidently
permeated throughout the company as seen by top
management’s message to the employees and otherstakeholders, and Dai-Dan’s willingness to put its quality andenvironmental policies to reviews whenever needed and its
knack for discovering and truthfully addressing new issues.
With its environmental targets, Dai-Dan breaks up the targets
set forth in corporate plans to manage and address them more
attentively. Moreover, Dai-Dan should be commended for a
PDCA cycle that works and the company uses withunachieved targets to voluntarily analyze the cause and explore
remedial measures.
Dai-Dan’s offices also continue to conduct cleanup
activities, plant trees and promote other initiatives as a part oftheir contribution to society. Here, the company deserves
credit for how its efforts not only to protect but also to“regenerate” and “restore” the environment have taken root, as
we can expect more in the future.

IC

Initiatives related to environmental
preservation

Zip Code

Corporate Planning
102-8175
OfficeIn regards to work style reform, Dai-Dan can be highly commended
for already acting on several bullet-points laid out in a detailed
roadmap crafted by the committee they formed to promote thegovernment’s Action Plan for the Realization of Work Style Reform.
The reforms they introduced are realistic, e.g., greatly raising thewage standard of people who come out of retirement to work, andgranting contracted workers the same holiday benefits as regular
employees. On the issue of long working hours, only a small
percentage of the workforce is working overtime and many of them
have seen a doctor. Though there are those who have not,steadfast progress is being made on other fronts such as theintroduction of a minimum number of hours of downtime between
workdays and a higher percentage of employees taking longholidays. As for unimplemented themes, Dai-Dan is studying
matters and planning measures, which gives us something to lookforward to.
With regards to health management, Dai-Dan can be credited
for taking the first step towards gaining certification from the METI
as a “Health and Productivity Management Organization” by having
announced its position both internally and externally. The company
is currently exploring policy, therefore we expect them to come up
with something effective.
On the issue of promoting women’s participation andadvancement in the workplace, Dai-Dan earned Class 2 “Eruboshi”
certification last June, but further credit is due this year for new
efforts such as the consultation services the company set up andthe “gender employment ratio” it newly attained. As for corporate
support for balancing work and family, a very high percentage of
the women on Dai-Dan’s workforce take advantage of the childcare
leave and shorter working hours offered for parenting, though men
remain an issue because these programs are used little.
As for work-related accidents, the number of accidents has
risen largely due to the increase in inexperienced technicians, forwhich Dai-Dan is already imparting guidance during site patrols
and reteaching safety rules, but the situation calls for more effective
and practical measures.

O

With regards to corporate governance (CG), we confirmed that
Dai-Dan revised its Corporate Governance Policy in December
2018 and upgraded its practices in line with changes in the CG
Code. This included documenting the proactive proposals on
improving corporate governance from the Board of
Independent Officers and their contributions to the processthat determines how performance-based bonuses are paid.
These new practices allow outside officers to flexibly share
information and make proposals. Moreover, since themeetings we witnessed were candid and substantial in nature,
we expect openhearted debate and a positive atmosphere tocharacterize Dai-Dan’s corporate culture going forward.
As for compliance, the content and frequency of grouptraining, workshops and other learning opportunities are
sufficient and the content of their compliance news isambitious, so their education and awareness activities are
solid. We also confirmed that their Compliance Committee andother organizations are each fulfilling the roles expected ofthem and are functioning organically. Furthermore, based on
the operating records of the whistleblowing point of contact,
we can surmise that employees know of its existence and trustthat it works.

Name

Initiatives related to respect for humanrights of employees, work-life balance
and improving the work environment

V

Initiatives related to corporate
governance and legal compliance

Headquarters Organizations

International Affairs Offices
102-8175

2-15-10 Fujimi, Chiyoda-ku, Tokyo

03-3261-8231

ー

315 Outram Road #15-09, Tan Boon
Liat Building, Singapore, 169074+65-62218488

The blue shading indicates regional headquarters.

D A I - D A N R E P O R T 2 019

48

DAI-DAN CO., LTD.
https://www.daidan.co.jp/

For any feedback or inquiries relating to this report,
please contact

DAI-DAN CO., LTD. DAI-DAN REPORT 2019 PROJECT
1-9-25 Edobori, Nishi-ku, Osaka City 550-8520 Japan
TEL. 06-6447-8000
E-mail: reportinfo@daidan.co.jp

Published in October 2019