Integrated Report 2022—2023, DAI-DAN CO., LTD.

DAI-DANREPORT 2022—2023
Integrated Report 2022—2023, 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 2022 Task Force
2-15-10 Fujimi, Chiyoda-ku, Tokyo 102-8175 Japan
TEL. +81-3-5276-4568
E-mail: reportinfo@daidan.co.jp

Published in December 2022

Contents
A Message from Management

Inspired by Light, Air & Water
At Dai-Dan, our duty has always been to provide people with safe, comfortable places in which to live and work, while also

Promoting Sustainability

1

A Message from Management

2

Contents

55

Sustainability Initiatives

3

Dai-Dan’s 119-year History of Creating Value

59

Environmental Initiatives

5

President’s Message

9

Dai-Dan’s Businesses

Environmental Conservation Initiatives

61

Planting the Idea of Dai-Dan Forests

Corporate Profile

giving due consideration to the environment.

Our Services

This 119-year journey is one we have shared with a variety of stakeholders, not only our customers, but also the shareholders,Global Network

investors, subcontractors, employees, and communities we have met along the way.

65

Valuing Our Employees
Work-Life Balance and the Work Environment

Projects Completed in FY2020

We believe that continuing to meet their expectations will lead to raising our corporate value in a sustainable way.

Partnering with Hosting Communities

Projects Completed in FY2021

Going forward, we hope we can count on your continued understanding and support for our activities.

Foundations for Value Creation
17

The Value Creation Flow

19

Long-Term Vision and Mid-Term Management Plan

21

Materiality at Dai-Dan

71
74

Interview with an Outside Director

G(Governance)

85

Contents

A Message from Management

Value Creation Story

Fair and Transparent Business Practices
Corporate GovernanceDirectors and Auditors
Compliance (Legal Compliance and Corporate Ethics)
Risk Management

Meeting Customer Expectations
Quality Improvement Initiatives

Value Creation in Practice

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

Ichiro Fujisawa
Representative Director
President
DAI-DAN CO., LTD.

86

Sectional Committees

25

E(Environment)

Long-term vision

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

How We Are Bringing About a Richer,More Sustainable Society

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

Contributing to a Carbon-free Society

Launch of the Subcontractor Portal

Expanding a Business That Contributes
Lower Environment Impacts

Data—Reducing waste through air filter regeneration services—

29

S(Society)Long-term vision

How We Are Providing Comfortable,
Optimal Spaces

91
93
95

Consolidated Statements of Income/Consolidated Statements of Comprehensive Income
Consolidated Statements of Cash Flows101

Third-Party Opinion

Share Information

Editorial Policy

Intellectual Property Management

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.

Engineering Capabilities
Advanced Development Technologies

Practical Competence
Installation Examples
Enhancing Our Installation Expertise andAbility to Provide Design Solutions

DAI-DAN REPORT 2022

Major Financial Information

Promoting R&D

DX Promotion

51

99
100

Innovation Capabilities

Utilizing Our Value Creation Bases

46

Consolidated Financial Statements

How We Promote Wellness

Value Creation Drivers

41

Financial and Non-financial Data (Eleven-year Summary)
Consolidated Balance Sheets

Regional Collaboration and Vitalization

35

ESG Data

Achieving High-Quality Medical Environments—Combining facility construction and operation—

1

Initiatives with Subcontractors

Overseas Business

Scope of This Report・Target organization
This report covers the operations of DAI-DAN CO., LTD. All financial
information is reported on a consolidated basis.
・PeriodThis report covers the fiscal year spanning April 1, 2021, to March 31,
2022. Some data refers to activities after April 1, 2022.

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

DAI-DAN REPORT 20222

Dai-Dan’s 119-year History of Creating Value
As a 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 trust of our customers.
At the same time, we are helping to achieve greater harmony with nature.

Major installations

The company expands its overseas business
1977

1903

Dai-Dan’s founder, Genji Sugaya, opens Sugaya Shoten in Tsuboya-cho, Kita-ku,
Osaka, as a shop selling various machines, electric appliances, iron materials, etc.,
necessary for industrial production.

1906

The Murai Sugaya Sales Office is opened in the same district, and the company
enters the heating business.

1907

With the Russo-Japanese War, Japan enters an age in which greater importance isplaced on heavy industry. The resulting signs of a move toward full-scale use ofelectricity in the country lead the company to specialize in the electrical workbusiness and change its trade name to Osaka Denki Shokai.

1909

Office operations are moved to Edobori Minami-dori 1-chome (site of the former head
office) as the number of staff increase as the electricity and heating businesses boom.

1912

Offices are opened in Nagoya and Tokyo (upgraded to branch offices in 1921).

1907

1931

1918

The business expands due to the war economy of World War I, and Osaka Denki
Shokai and Osaka Danbo Shokai are integrated. In line with the founder’s thinking
that a name that sticks in the memory is a key to success, the newly establishedcompany takes the long name Osaka Denki Shokai/Osaka Danbo Shokai.

Bank of Japan Head Office Building

3

Osaka Denki Shokai/Osaka Danbo Shokai Co., Ltd. is incorporated.

1962

The company motto—“Serious efforts, thought creation, cooperation and harmony,faithfulness, sincerity and gratitude”—is formulated.

1965

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

1968

The Technical Division is established to introduce and accumulate cutting-edge
technologies.

1973

Osaka Branch’s operating division independently establishes Dai-Den Equipment
Construction Co., Ltd. Between this and 1976, nine companies become independentand establish affiliated companies.

1975

The company is listed on the Second Section of the Osaka Securities Exchange.

1976

The catchphrase “Inspired by Light, Air & Water” is born.
The slogan, which leads into the current sustainability thinking, sets out thecompany’s great social responsibility in handling light, air, and water—elements thatare indispensable for life—and as a company that develops a positive balance
between the electricity, air conditioning, and plumbing sectors.

DAI-DAN REPORT 2022

1981

The company is moved into the First Section of the Osaka Securities Exchange.

1983

The building of head office is constructed at the current place(Edobori, Nishi-ku, Osaka).

1984

Technical Research Laboratory is constructed at Miyoshimachi, Iruma-gun, Saitama
Prefecture.
R&D into intelligent buildings and clean rooms is promoted.

1987

The corporate name is changed to DAI-DAN CO., LTD. in April.
In November, the Tokyo head office is relocated from Ginza 2-chome, Chuo-ku to
Fujimi 2-chome, Chiyoda-ku. Its functions, previously dispersed, are integrated.

1993

The company is listed in the First Section of the Tokyo Stock Exchange.

2003

The company celebrates the hundredth anniversary of its founding.

Major installations
1994

Passenger Terminal,
Kansai International Airport

1996

M-Wave Nagano Olympic Memorial Arena

2010

The company responds to the decarbonization of society andthe regenerative medicine business is promoted
Haneda Airport Terminal 2

2016

The company responds to larger buildings andmore advanced industrial facilities
1933

The representative office in Singapore is upgraded to a branch office.

R&D into cutting-edge equipment technologies is strengthened

1909

Osaka Danbo Shokai is launched and expanded asa building services engineering and installation provider
The business rights of Murai Sugaya Sales Office are taken over by the newly
established Osaka Danbo Shokai.

1979

Sumitomo General Head Office Building

Bank of Japan Hakodate Branch Building

1915

The Overseas Division is established in June, and in August a representative office
was set up in Singapore.

Dai-Dan’s 119-year History of Creating Value

Dai-Dan’s 119-year History of Creating Value

The company is founded in 1903 as industrial production
looks set to take off

2017

The open lab Cellab Tonomachi, which is equipped with the latest CPF (cell culture
processing facility), is opened within the Life Innovation Center (Kawasaki, Kanagawa
Prefecture) in order to promote open innovation with the aim of contributing to thepromotion of industrialization in the field of regenerative medicine.

2019

enefice Shikoku (Shikoku Branch Office), which completely achieves ZEB certification
by reducing energy usage so 100% can be met with renewable energy, isconstructed.

1964

Nippon BudokanWith the rebuilding of the Kyushu Branch Office, enefice Kyushu is constructed as a
facility to demonstrate ZEB (net Zero Energy Building) in our own building from theperspective of BCP.

2021

From April, with the aim of entering a richer, sustainable stage, the Stage 2030
long-term vision is formulated and the Mid-Term Management Plan begun.

2011

CREATE2017

In May, enefice Hokkaido (Hokkaido Branch Office) is opened. Complete
cold-weather ZEB is achieved.

1974
2022

Supreme Court Office Building

In May, the Hokuriku Branch Office is rebuilt. Cross-Laminated Timber (CLT) is used
to create a next-generation office building that fuses tradition and innovation.
GINZA SIXDAI-DAN REPORT 2022

4

President’s Message

120 years of history
Breathing life into buildings

President’s Message

Ichiro Fujisawa
Representative Director
President

Founded in 1903, Dai-Dan will reach its 120th anniversary in

Following discussions about our ideal for Dai-Dan’s future, weMarch 2023. The company got its start in electrical lighting

formulated Stage 2030, our long-term vision that focuses on the

installation work with the spread of electricity and soon after in

2030. A key phrase found in that vision is “space value creation.”

the steam-heating business. Dai-Dan has continued—

Mechanical and electrical services tend to focus on handing

unceasingly to this day—to grow as a building services

the customer installations that just match the design plans. But

engineering and installation provider in those original businesslooking again, we have seen that society and customers are lessof electrical work and mechanical work.

concerned with the physical items themselves, and more about

During the period of rapid economic growth after World

spaces that have intrinsic, latent value—whether spaces that

War II, there was a rush to build high-rise buildings and the use

make it easier for people to work or clean environments thatof air conditioning equipment spread instantly. The core

support highly precise manufacturing.

Japanese industries have also changed and diversified overI feel that the COVID-19 pandemic has changed the way

the years, from iron manufacturing and spinning tosociety thinks about indoor environments, including the role ofsemiconductors and data centers and we have responded to

offices. In particular, greater importance is placed on air

advances in building equipment for industrial facilities that haveconditioning services to provide health benefits as well as justcome with these changes. Surely the reason that we can

comfort. Our company has an extensive track record incelebrate 120 years of business is that we have been able tocompleting medical facilities and we are aware of our contribution

meet the demands of our customers, which have evolved as

to society—we have often performed urgent improvement work

the years have gone by, and repeatedly honing our engineeringon air conditioning and ventilation equipment in examination andcapabilities in order to do so.

treatment rooms in hospitals in order to prevent the spread of

I entered the company in 1979, at which point theinfectious diseases. I have realized anew how society asks forcompany was still called Osaka Denki Danbo. Osaka was thepeace of mind, safety, and health from the building equipment webirthplace of the company, and I think the company name also

work on.

showed its work in electricity, air conditioning, and plumbing. In

The lifespan for most building equipment is around 15 years,

1987, the company name was changed to Dai-Dan, previously

and if regularly replaced and updated, can be used for 50 years

often used as a nickname for the company. The mission ofor more. During that time, the demands of customers and societydelivering environments that offer comfort, peace of mind, andtoward buildings and equipment change. Keeping ourselvessafety through electricity, air conditioning, and plumbing

familiar with what our customers want, and continuing to cater toequipment and our slogan, “Inspired by Light, Air & Water,”

spatial needs that change—such as the requirement for greater

have been carried forward to the present.

comfort or convenience from highly functional spaces—is, I have

When we first start the initial building installation process,President’s Message

President’s Message

We aim to be a company
that can create value in spacesthat offer greater peace of mind,
safety and health and that bringsout the best in the lives ofbuildings and people.

Long-Term Vision:
A Company That Creates Value in Spaces

come to believe, what we should be aspiring to.

the building is poorly lit with temporary lighting and the wind

Our ideal for the future is to be a company that creates value

comes blowing in through openings. As work continues,

in spaces as outlined in our long-term vision; in other words,

plumbing pipes, electrical wiring, and air conditioning ducts arecontinuing to create and deliver value through building spaces.

put in above the ceiling (or under the floor) and after this stage

This is our raison d'être.

the ceilings, walls, and floors are finished and very few people
will ever see all this equipment. Once the building starts
receiving electricity, the rooms become well-lit, and acomforting breeze flows from the ceiling air conditioning
nozzles. This point, when the building takes its first breaths andcomes to life, is exactly the time when the value of our work—
delivering environments that offer comfort, peace of mind, andProfileApril 1979
June 2009
April 2013
April 2018

Joined the company.
Director, Corporate Officer, Head of Industrial Facilities Division, andManager of Technical Department
Director, Senior Executive Corporate Officer, in charge of East Japan
Area, and General Manager of Tokyo Head Office
Representative Director and President (currently)

safety—can be physically felt.
Until that equipment starts to work, a building cannot
function as a building. In other words, our work of installingbuilding equipment breathes life into buildings. That is why wehave added a new slogan to our website—“Breathing life into
buildings.”

5

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

6

President’s Message

Mid-Term Management Plan:
Preparation Stage FY2021–2023

Making sustainability promotiona management priority

attractive workplaces. It will also lead to more people enteringand accomplished a well-being-focused environment in thethe construction industry, securing necessary labor. The

Hokuriku Branch Office using cross-laminated timber. We arephilosophy behind the IT/digital strategy policy that we haveformulated is that DX should utilize our people.

We are cognizant of the fact that to achieve the goals of ourproud to be a leading ZEB company, and that is the reason wepositioned as a three-year period in which to set the stage forlong-term vision and Mid-Term Management Plan, it ishave been recognized as such.

our path to 2030, the final year of our long-term vision, by

imperative that we address environmental, societal/humanAs well as reducing emissions of greenhouse gases in our2017 we have made use of ICT, such as through online

establishing and strengthening our foundations in Japan andrights, and governance issues and become more sustainablebusiness operations, we will put the ZEB technologies that wemeetings, cloud file servers, and shared 3D CAD, andoverseas. Under the plan, Preparation Stage, we are placingin each of these areas. To promote our response to thesehave accumulated to use in our customers’ buildings, andintroduced job site support remote teams to offer remote

greater importance on expanding sales, and aiming to improvesustainability issues, we have identified the following six

through the spread of these we will contribute to the

support from head office and branches to construction

our installation capabilities to carve out an unassailable positionmaterial management issues:achievement of a carbon-neutral society.

worksites scattered around the country. These technologies

as a top group in the industry. Two measures we will be

1. Contributing to a carbon-free society

focusing on in particular are expanding industrial facility

2. Responding to changes in the business environment via
DX

Expanding industrial facility projects

devices or pharmaceuticals, as well as facilities such as large
data centers and logistics warehouses—for which demand has
grown in recent years—are classed as industrial facilities andrequire air conditioning and electrical equipment to produce
Engineering capabilities are needed to guarantee therequirementsofmanufacturing

environments

such

as

ways of working possible, and we are promoting these as ways
in which to help those who have to work shorter hours
because they are raising children, and to help more women be

4. Promoting innovation and improving productivity throughand positive attitude at each worksite, and of all the people who

active in the construction industry.

5. Designing working environments where people want towork with attention to health and safety
6. Building better partnerships with subcontractors andsuppliers
Of the above, I would like to talk about two areas that wework there. We respect diversity, and we in management believethat it is our duty to provide environments where everyone whoworks for the company can demonstrate their full potential. As
part of that, In April last year, we extended the age at whichwant to work.

Contributing to a carbon-free society

Prizing communication withall stakeholders

workers have to retire so as to promote the employment of

Our management principles are rooted in the idea that weelderly workers. We also undertook a comprehensive review ofshould always be taking on the challenge of creating value forour personnel, wage, and pension systems.

our customers while contributing to the development of abetter environment and stronger communities, and that issociety and designing working environments where people

temperature, humidity, airflow control, and dirt-free purified air.
I am convinced that continuing to gain installation experience in

Designing working environments where people want to work
One of Dai-Dan’s strengths is the sum total of the capabilities

are focusing our energies on: contributing to a carbon-free

the items and machines they manufacture.

make working from home, satellite offices, and other diverse

3. Achieving high-quality medical environments
research and better trained human resources

Manufacturing facilities such as those that produce electronic

As one example of how we are promoting DX, since around• Reducing out-of-hours work is our highest priority

something that will not change going forward. However, ourFrom April 2024, an upper limit on hours worked outside

responsibility toward sustainability has changed over the years,scheduled hours will come into effect in the construction

issues like transparency and fairness in business dealings,

industry, which until that point is covered by a moratorium. For

human rights and raising awareness of the problems,

By pushing forward with structural reforms and DX, industrial

The building equipment that we install and that our customers

us, as for the rest of the industry, the biggest question has

diversification of working styles, and how to commit tofacility projects have grown to comprise more than 40% of theuse, consumes a large variety of energy types, through lighting,been how to fundamentally rectify the problem of out-of-hours

resolving environmental issues. A company that does not keepgroup’s total installation sales. In the Mid-Term Management

air conditioning, etc. Around 16% of Japan’s greenhouse gas

work, and so under the direction of the Sustainability

its eyes open to various issues will not gain the praise ofPlan, we aim to increase the proportion of industrial facility

emissions are produced by office buildings and other parts ofCommittee, we established the Work Style & Human Rights

society, and its existence will not be valued.

projects to 50%, even as the total installation sales grow.

the business category, while around half of the energy used at

Task Forces and in April this year started a company-wide

this field is an investment in our technical capabilities.

office buildings is consumed by lighting and air conditioning

Strengthening overseas businessequipment.
We install building equipment that delivers comfortable

initiative, the SMILE 2024 Project.
The acronym SMILE, stands for:investors, and employees, to name a few—and carefully

Satisfaction for employees andenvironments, but we realize we have a duty to be aware of

Motivation, which we will raise throughfuture, another reason why I believe that strengthening

how much effect that has on climate change, and reduce that

Ideas that create someoverseas business is indispensable if we wish to expand theimpact.

Leeway and greater

The overseas business has developed over many years in

Alongside sharing results, we need to have clear messaging

To help decarbonize society, we are promoting thefrom management, looks back at zero-base improvements, thehave now set up new local subsidiaries, in Vietnam last year

development and spread of ZEBs. These buildings use highly

promotion of DX, and studies into their effects. The SMILE 2024

and Taiwan this year, with aim of achieving new growth. The

efficient equipment to pursue greater energy-savings, between

Project will make work more appealing and so establish

overseas business made up only around 3% of the Dai-Dan

this and further use of solar power and similar technologies,

working environments where employees are satisfied, and haveGroup in fiscal 2017, but by fiscal 2021 this had risen to morethey achieve net zero annual energy consumption. Thesea desire, to work. The end goal, a company filled with smiles.

than 6%.

buildings are truly the culmination of a dream for equipment

From this fiscal year forward, the Overseas Affairs Office isexpansion of the overseas business.

DAI-DAN REPORT 2022

consider how we can progress hand-in-hand with society.

Efficiency• Promoting net Zero Energy Buildings (ZEBs)

two countries—Thailand and especially Singapore—but we

now the International Division and will be advancing theGoing forward, we will take every opportunity to engage witha variety of stakeholders—customers, business partners,

The construction market in Japan is predicted to shrink in the

Dai-Dan Group’s overall business.

President’s Message

President’s Message

The Mid-Term Management Plan that began in April 2021 is

projects and strengthening overseas business.

7

Shikoku, managed a cold-weather ZEB with enefice Hokkaido,

installers like ourselves.

• Bringing DX promotion to the heart of our operations

As an example that was pioneering in Japan, our Kyushu

Enhancing productivity by promoting digital transformation

Branch Office was rebuilt as enefice Kyushu to be “ZEB

(DX) will directly lead to greater corporate competitiveness,

Ready.” Later, we achieved 100% ZEB certification for eneficecorrect the problem of long working hours, and result in more

DAI-DAN REPORT 2022

8

Dai-Dan’s Businesses Corporate Profile/Our Services

Dai-Dan’s Businesses
Corporate Profile
Company nameOur Services

DAI-DAN CO., LTD.

Head office

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

March 4, 1903

Incorporated

October 10, 1933

Capital fund4,479,725,988 yen

Employees

1,845 (as of June 30, 2022) consolidated

Stock listing

Prime market of Tokyo Stock Exchange

FoundedElectrical work

25.68

●Sales● Proportion of total sales

billion yen

15.8

%

Shareholders’meeting
Auditors’ meeting

Chairman

Executive Committee

General Administration Division

Compliance Promotion Office

Sales Division

Compliance Committee

Technical Division

Sustainability Committee

Quality, Environment andSupply Chain Division

Risk Management Committee

Innovation Division

PresidentInternal Audit Office

Our Services

Corporate Profile

Board ofDirectors

Mechanical work

Technical ResearchLaboratory

Hokkaido

Corporate Planning Office●Sales137.25

Niigata
Tokyo Head Office

NagoyaCentral Japan Division
Hokuriku

ChugokuWest Japan Division
Shikoku
KyushuEngineering Division

9

DAI-DAN REPORT 2022

Singapore Branch●Proportion of total sales

84.2

%

It is our air conditioning work that maintains optimal levels of temperature, humidity,
and airflow to create high-quality living or working environments.
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 and installing
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 aheat source in order to efficiently manage a building’s energy balance to meet ZEB
criteria. Based on our cutting-edge technologies and a wealth of experience, we offer
appropriate support at every stage—through planning, design, and installation.

East Japan Division

Osaka Head Officebillion yen

Air conditioning work

TohokuInternational Division

Dai-Dan’s Businesses

Dai-Dan’s Businesses■ Organization Chart (as of September 2022)

Electricity is what brings a building to life, and it is our electrical work that supports
its supply, creation, and storage.
Electrical work is absolutely key to ensuring energy-saving, decarbonization and theeffective use of renewable energy for buildings.
Our installations comprise such varied elements as high-efficiency power receiving
and transforming equipment, 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 thatserve the intended purpose whether to build or retrofit buildings with ZEB
technologies, ready buildings for disasters as part of business continuity planning, orother need.

Plumbing work
Our plumbing work both supplies water that is high-quality and acts to recycle it.
In this field, we are putting our efforts into purification to prevent the contamination ofrivers and oceans and we also pursuing greater reuse of water, which is a limited
resource. Our environmentally friendly plumbing equipment covers such processes as
purifying contaminated water or wastewater from factories, or transporting supplies ofwater, whether hot or cold, or gas.
In addition to the above, the Plumbing Department also takes charge of firefighting
equipment. As a company that is responsible for safety, we constantly strive to create
installation technologies that can be relied on.
Water is something that we take for granted in our daily lives, and Dai-Dan is putting
its technologies to work to ensure that does not change.

DAI-DAN REPORT 2022

10

Dai-Dan’s Businesses Global Network

Global Network

Dai-Dan has a total of 52 offices (51 in Japan, 1 overseas), as well as affiliated companies inside and outside Japan.

West Japan Division
Osaka
Head Office550-8520

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

06-6441-8231

East Japan Division001-0020

5-1-43 Kita 20jo Nishi, Kita-ku, Sapporo City,
Hokkaido

011-716-9116
0155-25-3559

630-8122

5F JR Nara Denho Bldg.,
9-21 Sanjohonmachi, Nara City

0742-32-1060

Hokkaido Branch

Kobe Branch651-0088

7F Nihon Seimei Sannomiya Ekimae Bldg.,
7-1-1 Onoe-dori, Chuo-ku, Kobe City078-221-7777

Obihiro Office080-0010

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

Kyoto Branch604-8186

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

075-251-6411

Hakodate Office 041-0851

4-17-40 Hondori, Hakodate City, Hokkaido

0138-55-7086
022-225-7901

Nara Branch

Wakayama
Office073-433-9431

Tohoku Branch980-0811

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

Shiga Office520-2331

3-A Finesu, 2101-2 Koshinohara, Yasu City,
Shiga Prefecture

077-518-1035

Aomori Office030-08024F Tanuma Bldg., 2-4-10 Hon-cho,
Aomori City

017-773-1582

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

Akita Office010-0951

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

018-824-6491
019-654-3023

Dai-Dan’s Businesses

Okayama
Branch086-223-3106

700-0984

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

Yamaguchi
Office754-0011

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

083-976-0121

San-in Office690-0015#103 Heights Shalom, 2-29-13 Agenogi,
Matsue City

0852-27-5890

Shikoku Branch
Matsuyama
Office760-0032
790-0942

6-17 Honmachi, Takamatsu City
2-22-13 Furukawa-Kita, Matsuyama City089-957-5021

10-16 Kitakubo, Kochi City

088-884-8231

770-0872

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

810-0023

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

862-0941

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

096-364-7134

Miyata Office823-0016

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

841-0031#101 Sungarden Yarita, 436-1 Yaritamachi,
Tosu City, Saga Prefecture

850-0027

Oita Office870-0033#402 Matsumoto Bldg., 1-3-22 Chiyomachi,
Oita City

097-532-4350

Miyazaki Office880-0036

103 Office YOU, 498-5 Yanaginomaru,
Hanagashima-cho, Miyazaki City

0985-86-6622

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

163-0525

25F Shinjuku Nomura Bldg., 1-26-2
Nishi-Shinjuku, Shinjuku-ku, Tokyo

Chugoku Branch

DAI-DAN Service Kanto

095-828-0772

Singapore Branch

102-8175

2-15-10 Fujimi, Chiyoda-ku, Tokyoー

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

960-8002

4F Daichi Kosan Bldg., 15-1 Moriai-cho,
Fukushima City024-525-7080

Yamagata
Office990-0043

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

023-634-2620

Niigata Branch

950-0088

2–3F Niigata Tokio Marine & Nichido Bldg., 2-3-6
Bandai, Chuo-ku, Niigata City

025-247-0201

Tokyo
Head Office102-8175

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

03-3261-8231

Kanto Branch

330-08028F Omiya MT Bldg., 2-35 Miya-cho, Omiya-ku,
Saitama City

048-644-8468

Chiba Branch261-0023

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

043-211-8881

231-0062

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

045-683-1050

Gunma Office371-0805

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

027-226-7720

Tochigi Office321-0953

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

300-0037

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

380-0824

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

026-228-3820

390-0811

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

Yokohama
BranchNagano Office
Matsumoto
OfficeCentral Japan DivisionTokyo Head Office

Cellab
Healthcare
Service

03-5326-7137

Shikoku Branch(enefice Shikoku)

International DivisionInternational
Division

Fukushima
OfficeMorioka Office

Ibaraki OfficeDAI-DAN Service
Chubu

Kyushu Branch(enefice Kyushu)

Engineering Division
Engineering
Division

Technical ResearchLaboratory(Innovation Division)

0942-84-2350#202 Grand Mansion, 31-3 Okeya-machi,
Nagasaki City

Nagasaki OfficeDAI-DAN Service Kansai

092-771-4361

Kumamoto
BranchSaga Office

Tohoku Branch

Osaka Head
Office020-0034

3F Angel Bldg., 16-14 Morioka Ekimae-dori,Morioka City

Global Network

Global Network

780-0088

Tokushima
OfficeHokkaido Branch(enefice Hokkaido)

Niigata Branch087-811-2301

Kochi Office

Kyushu Branch

Hokuriku Branch

Dai-Dan’s Businesses

640-8203

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

Nagoya Branch461-0005

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

052-973-4750

Toyota Branch471-0835

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

Mikawa Office448-0011

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

0566-27-0324

Shizuoka Office422-8067

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

Mie Office514-0006

3F-303 Mie Rice Bldg., 345-2 Komei-cho,
Tsu City, Mie Prefecture059-225-3840

500-8844

10F Daidoseimei Hirose Bldg., 6-16
Yoshino-machi, Gifu City058-265-8224

Hokuriku Branch920-0902

1-6-15 Owari-cho, Kanazawa City,
Ishikawa Prefecture

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

Gifu Office03-5276-5021© Kurumata Photography Office+65-62218488

Nagoya Branch

TaiwanMajor Affiliated Companies in Japan

Headquarters Organizations

DAI-DAN Service
Kanto Co., Ltd.

135-0033

2F Ugai Bldg., 2-30-39 Fukagawa, Koto-ku,
Tokyo

03-5639-0721

DAI-DAN Service
Chubu Co., Ltd.

460-0011

4-10-32 Osu, Naka-ku, Nagoya City, Aichi
Prefecture052-252-7775

DAI-DAN Service
Kansai Co., Ltd.

556-0011

9F Parks Tower, 2-10-70 Nambanaka,
Naniwa-ku, Osaka City, Osaka Prefecture

06-6645-1181

Cellab Healthcare
Service Co., Ltd.

210-0821

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

Name

Thailand
Vietnam

Corporate Planning
OfficeCompliance Promotion
OfficeDAI-DAN INTERNATIONAL ASIA PTE. LTD.
DAI-DAN（THAILAND）Co., LTD.
DAI-DAN（VIETNAM）Co., LTD.

Singapore

550-8520

Address
2-15-10 Fujimi, Chiyoda-ku, Tokyo
1-9-25 Edobori, Nishi-ku, Osaka City

Telephone Number

03-5276-4568

Zip Code

Address

Telephone Number

100-0005

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

03-5223-1070
049-258-1511

06-6447-8050

Innovation Division354-0044

Technical ResearchLaboratory Innovation Division354-0044

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

Regenerative Medicine
Promotion OfficeInnovation Division(Cellab Tonomachi)

210-0821

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

Regenerative Medicine
Promotion OfficeInnovation Division(Kobe Office)650-0047

Rm 654 Kobe International BusinessCenter, 5-5-2 Minatojima-Minamimachi,
Chuo-ku, Kobe City078-302-9060

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

03-5276-4652

550-8520

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

06-6447-8065

General Administration
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

03-5276-4551

163-0525

25F Shinjuku Nomura Bldg., 1-26-2
Nishi-Shinjuku, Shinjuku-ku, Tokyo

Technical Division

Name
Quality, Environment andSupply Chain Division

390 Kita-Nagai, Miyoshimachi, Iruma-gun,
Saitama Prefecture

102-8175

Internal Audit Office

Affiliated Companies Overseas

Zip Code

102-8175

03-5326-7133

台湾大暖股份有限公司 DAI-DAN Taiwan CO., LTD.

11

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

12

Dai-Dan’s Businesses Projects Completed in FY2020/Projects Completed in FY2021

Projects Completed in FY2020(air conditioning and plumbing works)

Komaki City Hospital(air conditioning and plumbing works)

Terminal building renovations at
Osaka International Airport

Mebks Toyosu

Hyogo Prefectural Harima-Himeji General
Medical Center

New Main Government Office Building,
Ueda City

New government office building,
Yatsushiro City

New factory for Canon Mold (Ibaraki Pref.)Kawakita Factory, Shinko Chemical

Major renovations at government officebuilding, Tsu City

New factory for GS Yuasa (Kyoto Pref.)(air conditioning and plumbing works)

Dai-Dan’s Businesses

Dai-Dan’s Businesses

SE1 Building, AGC Yokohama Technical Center

Projects Completed in FY2021

Kurita Innovation Hub (Tokyo)(electrical work)(plumbing work)(plumbing work)

Projects Completed in FY2021

Projects Completed in FY2020

Head Office
Building, Hirogin
Holdings(air conditioning work)

A1 Building, Kitasato University School ofAllied Health Sciences

Okinawa Arena(air conditioning work)(air conditioning and plumbing works)

LaLaport Aichi Togo(electrical work)(air conditioning and plumbing works)(electrical, air conditioning and plumbing works)(electrical work)(air conditioning and plumbing works)

Production equipment for Shiseido Fukuoka
Kurume Factory(plumbing work)(electrical, air conditioning and plumbing works)(plumbing work)

New factory for Nipponham Hokkaido
Factory Ltd.
(air conditioning and plumbing works)

Courtesy of JR East Sendai Branch Office

The Vale Rusutsu (Hokkaido)(air conditioning and plumbing works)

Government Office Building No. 2,
Nishinomiya City
(air conditioning and plumbing works)

13

DAI-DAN REPORT 2022

JR East Sendai Branch Office(air conditioning work)

National Center for Geriatrics andGerontology (Aichi Pref.)(electrical work)

DAI-DAN REPORT 2022

14

Value Creation Story

Value Creation Story

Value Creation
Story
In this section, we introduce the processes behind ourtransformation into a company that creates value in spaces,
our ideal, by continuing to create and deliver value throughbuilding spaces.

15

DAI-DAN REPORT 2022

17

The Value Creation Flow

19

Long-Term Vision and Mid-Term
Management Plan

21

Materiality at Dai-Dan

DAI-DAN REPORT 2022

16

Value Creation Story

The Value Creation Flow

The Value Creation Flow

The Dai-Dan Group challenges itself daily to create new value. By tackling materiality (priority issues), we will continue to deliver value
sustainability to all stakeholders, while also contributing to the achievement of the UN’s Sustainable Development Goals (SDGs).

Business activities

Input

Financial capital∙ Total assets∙ Capital(non-consolidated)

1,578∙ Training hours per person
64.75∙ First-class architects
32∙ First-class building operation
7
and management engineers∙ First-class plumbing work operation
838
and management engineers∙ First-class electrical work operation242
and management engineers∙ Professional engineers
31∙ Doctors
8∙ Energy management technicians
65

Update∙ Employees

Intellectual capital198∙ Intellectual properties held(incl. patents and other expertise)

1.08 billion yen∙ R&D expenses

R&D

Materiality
Maintenance1. Contributing to a carbon-free society
2. Responding to changes inthe business environment via DX
3. Achieving high-quality medical
environments
4. Promoting innovation and improving
productivity through research andbetter trained human resources
5. Designing working environments
where people want to work withattention to health and safety
6. Building better partnerships with
subcontractors and suppliers

Installation∙ Subcontractors & suppliers

5,018

Procurement

Natural capital

1.90

million liters(crude oil equivalent)

Manufacturing capital∙ Japanese bases∙ Overseas bases∙ Technical research laboratory

17

DAI-DAN REPORT 2022

183.67 billion yen∙ Net sales

162.93 billion yen∙ Operating profit

7.58 billion yen∙ Profit attributable toowners of the parent

5.78 billion yen∙ Return on equity (ROE)

7 .6 %∙ Dividend payout ratio

33.3 %

Non-financial results

55
41

Providing functional
spaces that offer people
and items health andcomfort, optimized totheir use

Contributing toa richer, moresustainable society

Enhancingorganizational value
through individual
growthResolving societal
issues throughnew businesses(non-consolidated)∙ Scope 1 & 2 greenhouse gas emissions

3,747

t-CO₂
(40% reduction from FY2013)8∙ Orders for ZEB-related projects(non-consolidated)∙ Energy consumption∙ Orders received

Value we deliver tostakeholders

Taking orders

Social capital(non-consolidated)

Planning/proposal

Financial results

Management policies
Management principles∙ Collaborative relationships outside
the company for business creation(universities, start-ups, etc.)

8∙ CSR procurement agreement forms
collected from subcontractors andsuppliers

The Value Creation Flow

Human capital(FY2021)

Achieving our long-term vision of
being a company that creates value in spaces

The Value Creation Flow

∙ Equity capital ratio

139.10 billion yen
77.08 billion yen
55.4 %

Delivering value throughout
the building/equipment lifecycle

Value Creation Story

Value Creation Story(FY2021)

Outcome

Output2,050∙ Net sales per domestic engineer

131 million yen

DAI-DAN REPORT 2022

18

Value Creation Story

Long-Term Vision and Mid-Term Management Plan

Long-Term Vision and Mid-Term Management Plan

Mid-Term Management Plan

Stage 2030 Phase 1: Preparation Stage(FY2021–2023)
Long-Term
VisionStage 2030

Moving from building services engineeringand installation to creating value in spaces

In February 2021, we announced our long-term vision, Stage 2030, which will take us through to 2030.
This vision is split into three stages we wish to achieve, the first of which started in April 2021 with our three-year Mid-Term
Management Plan, entitled Preparation Stage.

Phase

3

Preparation
Stage

Refining
Stage

ExcellenceStage

To end of FY2023

To end of FY2026

Demonstrating
overall groupcapabilities

To end of FY2029

Basic policies
Through our business activities, we will help to make a richer society and to resolve the myriad issues that face society.

To lead daily lives or to operate businesses requires spaces with comfortable, optimal environments.
By refining the elements of light, air, and water through our technologies, we will continue to be a
corporate group that can offer new value through spaces.

162.9 billion yen

Greater proportion from subsidiaries

Operating profit(consolidated)

7.5 billion yen

7.5 billion yen

10 billion yen

200 billion yen

ROE

8% or higher

Dividend payout ratio

30% or higher*cumulative for3 fiscal years

DX promotion(worksites and workstyle reform)
Corporate group enhancement
New business, R&D, etc.

20 billion yen■Net sales

Operating profit )Investment
plans

So that people can lead safer, healthier lives with peace of mind, a more sustainable society is called for.
Through our new technologies and advanced specialisms, we will continue to be a corporate group that canhelp bring about a richer, more sustainable society.

Mid-Term Management Plan period

250,000

200,000

176,526
157,712

183,668

175,000

162,929

9,000

8,500

7,584

100,000

15,00012,00010,000
8,754

6,000

3,000

50,000

FY2021 performance00
FY2020

FY2021

Mid-Term Management Plan (FY2021–FY2023)
Basic policy

Businessstrategy

Expandcore
businesses

Strengthen
overseasbusiness

Enhancetechnical
capabilities

Open upnewbusinesses

Preparation Stagestrategy

FY2023

Stage 2030 Phase 1: Preparation Stage

Positive growth in orders for large-scale
projects, particularly for medical facilities,
redevelopment projects in the Tokyo
metropolitan area, and industrial facilities●Net sales:
Favorable progress and growth inmedium- and large-scale renovation
projects●Operating profit:

We are making progress with the main policies detailed below,
in line with the strategies of Preparation Stage.

Main progress

Expand industrial
facility works· We established the Engineering Division, and are making progress toward expanding the industrial facility projects andimproving profitability.

Strengthen renovationand maintenanceservices
Develop a unified
foundation foroverseas expansion· In order for the Dai-Dan Group to better attract customers, we have established DAI-DAN Service Chubu, to sit alongside
the existing DAI-DAN Service Kanto and DAI-DAN Service Kansai, and are developing services to retain customers, such asoffering maintenance.

Open up new
business sites· We established a subsidiary in Taiwan, DAI-DAN Taiwan CO., LTD., and are working to enter the mechanical and electrical(M&E) work business and to expand our business in filter cleaning and reuse.

Strengthen
competency forconstruction job sites· We developed Construction Visualizer 4D™, a digital tool that helps to visualize installation processes in order to improve
efficiency on-site, and are currently expanding its use.
· We expanded the activities of the job site support remote teams, and are strengthening how our offices support worksites.

Expand ZEB andIoT businesses· We are promoting sales activities aimed at expanding orders for ZEB projects and REMOVIS.

Contribute to practicalapplication ofregenerative medicine
Promoteenvironmental load
reduction business· We are promoting initiatives that expand the use of regenerative medicine through our regenerative-medicine-focused
subsidiary Cellab Healthcare Service (announcing developed products and research results at related academic
conferences, etc.).
· We established the Sustainability Committee, which is chaired by the president, and the Quality, Environment and Supply Chain Division.
We are currently promoting activities connected to ISO standards and that are related to tackling global warming, such as those
associated with the TCFD’s recommendations. We have also introduced renewable energy virtually completely at offices in Japan.

Trustworthinessandorganizational
depth

Promote DX
Bolsterbusinessfoundations

FY2022●Orders received:

Reduced income due to a lower profit
margin on completed projects due togreater competition to receive orders
and price increases for materials andequipment

Forecasts

Trustworthiness and outstanding organization
For an organization to continue to provide value to society, the most important thing is to have reliable personnel.
By fostering such human resources, we will raise corporate value and continue to be a corporate group that istrusted by all its stakeholders.

208,000
200,000

193,000

150,000

Richer, moresustainable society

Richer, more sustainable society

DAI-DAN REPORT 2022

168 billion yen

Financial
indicators■ Mid-Term Management Plan performance forecasts ( ■Orders received

Comfortable,
optimal spaces

Comfortable, optimal spaces

19

Sales
(consolidated)

Operating profit (million yen)

2

Bolstering overall
group capabilities

FY2021 result

Phase

1

Developing
foundations in Japanand overseas

FY2021 target

Long-Term Vision and Mid-Term Management Plan

Phase

Orders received/net sales (million yen)

Long-Term Vision and Mid-Term Management Plan

Since our founding, we have always provided
the equipment needed for living and working
spaces that the times demand as a building
services engineering and installation provider.
As a company involved in space value
creation—a space value creator—it is our role
to satisfy the needs of customers and society
through the “creation” of “spaces” that havethe essential and potential “value” they
demand.
In order to continue contributing to therealization of a sustainable society and tocontinue creating value in spaces, we must go
beyond the framework of being a building
services engineering and installation provider
and enter a new stage of our evolution as aspace value creator.

Preparation StageFY2023 target

Item

Value Creation Story

Value Creation Story

What is a “space value creator”?

■ Progress toward the Mid-Term Management Plan

The Mid-Term Management Plan that we launched in April 2021 forms
the first of the three phases of our plan to bring about our long-term
vision. This phase, dubbed the “Preparation Stage,” will serve to build
and strengthen our foundations inside and outside Japan. We haveset ourselves targets for the Dai-Dan Group’s fiscal 2023
performance: consolidated sales of 200 billion yen and consolidated
operating profit of 10 billion yen. We have also designated acumulative investment total for the three-year period of 20 billion yen.
In the Mid-Term Management Plan, we have formulated theconcrete strategies by which we will address the five specificbusiness strategy themes we lay out in our long-term vision:
expanding core businesses, strengthening overseas business,enhancing our technical capabilities, opening up new businesses,
and bolstering our business foundations.

· We established the International Division, and are making progress toward expanding overseas business and improving
profitability.

· We received DX certification, set by the Ministry of Economy, Trade and Industry, and are improving administration work
efficiency by introducing robotic process automation.
· We are promoting working from home by establishing environments that allow remote working and distributing devices.

Improve working
environment· We have developed the SMILE 2024 Project to reduce out-of-hours working.
· We updated our uniform (worksite clothing) for the first time in 33 years.

Strengthen thecorporate group
framework· We chose and successfully applied to be moved into the new Prime Market section of the Tokyo Stock Exchange, following
its reorganization.
· We supported governance reforms at each of the DAI-DAN Service companies and at Cellab Healthcare Service.

DAI-DAN REPORT 2022

20

Value Creation Story

Materiality at Dai-Dan

Materiality at Dai-Dan
Selecting Areas of Materiality

Materiality Mapping

To promote activities aimed at fulfilling our social responsibilities as a building services engineering and installation provider, we havelong been guided by the “challenge of creating value for our customers while contributing to the development of a better environmentand stronger communities,” as set forth in our management principles at Dai-Dan. We are conscious of the fact, though, that it is more
important than ever to contribute to the achievement of the UN’s Sustainable Development Goals (SDGs) and grow sustainably,
hand-in-hand with society. As such, we have evaluated the impact of our business on society and the environment, and selected
specific areas of materiality (material issues) in which we should prioritize our efforts.
By addressing these issues, we aim to maximize the value we provide our stakeholders.

We selected 18 issues for which both the impact on stakeholders in terms of the environment, society, and other factors, and theimportance to Dai-Dan, was high.
By mapping the levels of both, we came up with six material issues.

Materiality at Dai-Dan

We referred to both the SDGs,
which are a series of internationaltargets to make a better, moresustainable world, and otherinternational guidelines (including
GRI Standards, ISO 26000, and
SASB Standards) to identify
issues that affect our company.

2. Issue Grouping andPrioritizing
We made a list of the 18
candidates to be our important
issues and evaluated them fromtwo perspectives: 1) impact on
stakeholders and, 2) importanceto Dai-Dan.

4. Board of Directors
Resolution
3. Stakeholder Dialogue
Through discussions with external
stakeholders, we verified theimportance of the issues identified.

The issues were considered fromthe standpoint of our management
plan and other factors, and discussed
in-house. We narrowed down the list to
six material issues for which efforts
are a top priority, which received
final approval from the Board of
Directors in January 2021.

5. Updates (Stakeholder
Dialogue)
By deepening the level of dialogue
we have with stakeholders, we plan
to revise our material issues, targets,and key performance indicators(KPIs) to adapt to changes in thesocial environment.

Strengthening compliance
Respecting human rights andadhering to labor standards

Furthering water conservation
Achieving high-quality
medical environments

Responding to changes in the businessenvironment via DX

Promoting gender equality
and female participation
Reducing waste

Producing resilient local
communities with theparticipation of the community

Designing working environments
where people want to work withattention to health and safety

Promoting innovation and improving
productivity through research andbetter trained human resources

Building better partnerships with
subcontractors and suppliers

Creating jobs and supporting
employees to learn skills
Bolstering our risk management

Materiality at Dai-Dan

Impact on stakeholders in terms of the environment,
society, and other factors—with special consideration for shareholder andinvestor perspectives—

1. Issue Selection

Putting in place better
corporate governanceValue Creation Story

Value Creation Story

Material Issue Selection Process

Contributing toa carbon-free society

Enhancing quality andenvironmental management

ExtremelyhighDevising healthy living spaces

Providing optimal objects
and spaces

High
High

Implementation of the PDCA cycle in line with the period of the Mid-Term Management Plan

Importance to Dai-Dan

Extremely
highMaterial Issues and KPIs
Material issue

No.

KPI
Reduce greenhouse gas (GHG) emissions(Scopes 1 & 2)

1

2

Contributing toa carbon-free society

Responding to changes inthe business environment
via DXFY2020 performance

FY2021 performance

TargetReduced 36% from FY2013 levels(FY2020: 3,996 t-CO2)(FY2013: 6,235 t-CO2)

Reduced 40% from FY2013 levels(FY2021: 3,747 t-CO2)(FY2013: 6,235 t-CO2)

Long-term target: FY2030
Reduce 46% from
FY2013 levels

Disclose GHG emissions (Scope 3)
Increase cumulative total of projects (no. of orders
and gross floor area) related to ZEBs

9 orders
Gross floor area:
131,405 m2

8 orders
Gross floor area:
323,910 m2

Increase instances of job site adoption of ICT tools
such as 3D recording and conversion technology

6 cases

14 cases

217 projects

339 projects

Increase no. of job sites implementing job site
support remote teams

3
4
5
6
21

Achieving high-quality
medical environments

Promoting innovation andimproving productivity
through research and better
trained human resources
Designing working
environments where people
want to work with attention
to health and safety

Building better partnerships
with subcontractors andsuppliers

DAI-DAN REPORT 2022

Set reduction targets for FY2023 onwards

Cumulative total
for FY2021–23: 40

Disclose cumulative total for gross floorarea, for received orders (incl. ZEB planningorders), as one of the indicators we monitor
Disclose the no. of instances for each fiscal
year as one of the indicators we monitor

Disclose the implementation rate for eachfiscal year as one of the indicators wemonitor

13 facilities
28 units

6 facilities
10 units

Cumulative total
for FY2021–23: 30 units

Infection control units: 10

Expand usage for regenerative medical devices
and systems

3 facilities
3 units

6 facilities
21 units

Cumulative total
for FY2021–23: 45 units

Air barrier booths: 4
Animal equipment: 7
Rooms for compromised patients: 10

Expand collaborative relationships outside the company
for business creation (universities, start-ups, etc.)

4 cases

8 cases

Increase net sales per domestic engineer

131 million yen
per person

131 million yen
per person

Increase no. of intellectual properties held(incl. patents and other expertise)

190

198

Disclose the no. of properties held for eachfiscal year as one of the indicators wemonitorImprove employee satisfaction

2.54

2.52

FY2023: 2.7 or above

Answers from employee questionnaires(max score 4.0)

Frequency rate of job site accidents

0.25

0.48

FY2021 / FY2022: 0.25

Severity rate of accidents

0.004

0.013

FY2021 / FY2022: 0.01

Meisters: 72%
Excellent Foremen: 46%

Meisters: 83%
Excellent Foremen: 52%

FY2023:
Meisters: 75% or higher
Excellent Foremen: 50% or higher

2,050 companies

Cumulative total for FY2021–23:
5,500 companies

No. of CSR procurement agreement forms collectedfrom subcontractors and suppliers

We are onboard with the United Nations Global Compact asa signatory and responsible corporate citizen committed torealizing a sustainable society. We fully agree with the Ten
Principles espoused in the fundamental areas of “Human
Rights,” “Labour,” “Environment” and “Anti-Corruption,” anddevelop strategies and activities to enact these values withthe wholehearted commitment of top management.

FY2023: 400 projects

Expand usage for medical development devices
and systems

Improve retention rate for Meisters and Excellent
Foremen

SDGs

Participation in the UN Global Compact

Disclose FY2022
results onwards

35.3%

Teleworking implementation rate

Remarks

Disclose the no. of relationships in practiceper fiscal year as one of the indicators wemonitor

FY2021 / FY2022:
135 million yen per person

Calculate employee accidents orillnesses resulting from work tasks that
led to one day or more work missed

Support for TCFD Guidance
We have announced our agreement with the guidelines
published by the Task Force on Climate-related Financial
Disclosures (TCFD). To aid in the achievement of a carbon-freesociety, we will evaluate climate-related risks and opportunities
that may come up in our business and proactively disclose
their potential impact.

DAI-DAN REPORT 2022

22

Value Creation in Practice

Value Creation in Practice

Value Creationin PracticeIn this section, we introduce our initiatives and their progress
toward addressing environmental and societal issues, two of
the three main pillars of our long-term vision.

25

E(Environment)

Long-term vision

How We Are Bringing About a Richer,More Sustainable Society

25

Contributing to a Carbon-free Society

27

Expanding a Business That Contributes
Lower Environment Impacts—Reducing waste through air filter regeneration services—

29

23

DAI-DAN REPORT 2022

S

(Society)Long-term vision

How We Are Providing Comfortable,
Optimal Spaces

29

Achieving High-Quality Medical Environments

31

How We Promote Wellness

32

Regional Collaboration and Vitalization—Combining facility construction and operation—

DAI-DAN REPORT 2022

24

E

(Environment)

Value Creation in PracticeLong-term vision

Performance during the operational stage at enefice Hokkaido (Hokkaido Branch Office)■ Set standard primary energy consumption■ CASBEE rank S

Dai-Dan Hokuriku Branch Office, faces onto Hyakumangoku-dori, a street that runs alongside part of Kanazawa Castle Park, and was
designed to blend in seamlessly with the local streetscape, close to the historied Omicho Market, Higashi Chaya district, and theKenroku-en gardens. With the office, we took on board all that we had learned from verifying how to save energy and enhance comfort
during the process to acquire ZEB certification for our other buildings (enefice Kyushu, enefice Shikoku, and enefice Hokkaido), andwent for a building concept that fuses tradition and innovation. Showing our approval for the Kanazawa: City of Wood initiatives, wedeliberately incorporated elements such as a CLT* construction and the use of vertical wooden louvers for the facade. The applicationof wooden materials helps with both harmony with the surrounding buildings and with our efforts toward carbon neutrality. LEDs
colored like conventional lightbulbs combine with roll screens to resemble light leaking through a traditional Japanese screen door.
This idea considers both the outside aesthetic but also helps to light the surrounding area for brighter, safer streets.

* Cross-Laminated Timber: significantly reinforced wooden material that can be used in large spaces, which contributes to carbon neutrality by fixing CO within the wood
2

■ ZEB Leading Owner

Having been registered asa ZEB Planner, we offer
potential customers
consulting services suchas proposal and planningfor ZEB conversions aswell as design, installation,and operation services.

Dai-Dan has beenregistered as a ZEB
Leading Owner, anadvanced building ownerthat has constructed a
net-zero building. We
contribute to the adoptionof ZEB by disseminating
information through tours
and by encouraging
customers to experience
the benefits of net-zeroconstruction.

Construction record

Number of ZEB assets■ ZEB track record■ ZEB Planner

400,000
323,910m²
300,000
200,000

131,405m2
102,300m2

100,000
0

Planning record

4 units

Gross floor area (m2)ZEB

8 units

FY
2018

FY
2020

FY
2021

25%

saving in
consumption

36%

37%

0%

-39%

-25%
-50%

Cold-weather
ZEB certified

-75%
-100%

-38%
ZEB-level
operationachieved* Based on actual operation between July 2021 and June 2022
■ BELS 5☆ ZEB

As one of our areas of materiality as we work
toward sustainability, we aim to respond tochanges in the business environment via DX for
both our ourselves and for our customers andsociety in general.
Amid the need for society to decarbonize,
we provide systems that use DX to reduce theamount of CO2 that is emitted during building
operations. Specifically, our originally developed
cloud-based
automatic
controlsystemREMOVIS™ and IoT devices that offer feedbackon the temperature users feel, both of whichwere incorporated into our branch offices(enefice Shikoku and enefice Hokkaido), which
has helped to achieve both LCCO2 reductions
and comfort.

■ CASBEE rank S■ Effects of introducing REMOVIS・ The operational status of buildings can be ascertained remotely, andfine-tuned to lower CO2 emissions.

・ Feedback on how individual users experience temperature is gathered
and used to automatically calibrate the target air conditioning
temperature to ensure comfort for as many users as possible.

Monitoring center

REMOVIS
Monitoring/
management

PC

Data

Instructions

Data
Instructions

Daily equipment, device, andoperations status verification
Energy usage status confirmation
Timely eco-tuningData

enefice Shikoku
FY
2019

100%

50%

63%

saving in
consumption

Initiatives to reduce LCCO2* effectively

5,626m2 9,812m2
FY
2017

64%

75%

E (Environment) Contributing to a Carbon-free Society

E (Environment) Contributing to a Carbon-free Society■ ZEB Ready

Actual*As designed

Value Creation in PracticeConstruction of enefice Hokkaido was completed in June
2021, and operations began later that same month. The
building was designed based on three key concepts:
resilience, cold-weather ZEB, and wellness. ZEB certification
was acquired at the design stage, and the building has also
managed to achieve ZEB-level savings in energy consumption
during actual operation. In cold-weather regions, winternecessitates a great deal of energy use, but by implementing
continuous energy management throughout the year, and byimproving the way we operate and fine-tuning our equipment
systems, we have achieved an energy-saving, yet comfortable,building.

Standard

100%

Solar power

Dai-Dan Hokuriku Branch Office, at one with its environment, completed<Energy consumed> <Energy generated>

Value Creation in PracticeWith an eye on achieving carbon neutrality by 2050, the government declared a target of reducing Japan’s CO2 emissions by 46%
from fiscal 2013 levels by 2030. Of the country’s total CO2 emissions, the business category, which includes office buildings, accounts
for around 16%. As such, energy-saving measures for buildings to reduce emissions is an urgent issue. More than ever, ZEBs areindispensable for a carbon-free society—they are well-insulated, installed with highly efficient equipment, and use electricity derived
from renewable energy sources for virtually zero energy consumption.
We have placed contributing to a carbon-free society at the top of our list of materiality and, based on the expertise we have gainedin acquiring ZEB certification for our own buildings, are working hard to expand the ZEB concept to a whole range of different building
types.

DAI-DAN REPORT 2022

Contributing to a Carbon-free Society

How We Are Bringing About a Richer,More Sustainable Society

Contributing to a Carbon-free Society

25

E (Environment)

enefice Hokkaido* Life Cycle CO : refers to the total amount of carbon dioxide emitted over the entire life cycle of a building (from design to construction, running, and demolition)
2

DAI-DAN REPORT 2022

26

Value Creation in Practice

E (Environment)

Expanding a Business That Contributes Lower Environment Impacts

Expanding a Business That Contributes
Lower Environment Impacts—Reducing waste through air filter regeneration services—
Factories use large quantities of air filters and adsorbents to remove volatile organic compounds (VOC), which they then discard at theend of their service-life. Dai-Dan figured out a way to regenerate these air filters using supercritical CO2* and started a business with
it in order to promote sustainable material recycling practices in industry.

* Fluid CO held at or above its critical temperature (31.1°C) and critical pressure (7.4 MPa) where it exhibits both the diffusibility of a gas and the solubility of a liquid.
2

Air filter regeneration using supercritical CO2
Customer

100
79

80
60

87

92

51

40
20

FY2018FY2019FY2020

FY2021E (Environment) Expanding a Business That Contributes Lower Environment Impacts

E (Environment) Expanding a Business That Contributes Lower Environment Impacts

Taiwanese subsidiary
Regenerated
filterUsed filter(Performance degraded)(Performance recovered)

Air filter regeneration plant

Helping lower costs and environmental impact
With our air filter regeneration service, customers are able to reuse filters more cheaply than buying new replacements. This has
garnered plaudits from companies looking to contribute to the SDGs and promote ESG management, and customers, after using
the service once, keep coming back. Since the service was launched in 2014, we have helped to reduce a cumulative 50 tonnes ofwaste.

100% less waste

30% less CO2

CO2 for new filters
100%

Used filter waste
100%

Cost of new filters
100%■ No. of orders for the service

0

Helped reduce about 50 tonnes of waste

30% less cost than replacement

Our air filter regeneration is mainly employed for filters used atsemiconductor factories, and since we launched the service in2014, we have received more than 300 orders. As theregenerated air filters can perform as well as new filters, while
reducing costs, waste, and CO2 emissions, the number of neworders continues to increase.
Since 2018, the regeneration process used in the service has
been featured in the environmental report for United Semiconductor
Japan Co., Ltd. (formerly Mie Fujitsu Semiconductor Limited).

Value Creation in Practice

Value Creation in PracticeUsing supercritical CO2, we are able toclean and regenerate air filters and offer
a service that returns the regenerated air
filters to the customer for reuse. This
reuse of filters, previously discarded,
requires no initial investment by thecustomer. The supercritical CO2 filter
regeneration technology used in thisservice is an original Dai-Dan technology
and has been praised highly for thecontributing it makes to saving money
and lowering environmental impact. It
also received the SCEJ Award for
Outstanding Technological Developmentfrom the Society of Chemical Engineers,
Japan in 2012.

Regeneration service track record

CO2 forregeneration
70%

Cost ofregeneration70%

In order to contribute to an international sustainable society,we will start providing our air filter regeneration service outside
Japan. As part of this expansion, we have established a wholly
owned subsidiary, DAI-DAN Taiwan CO., LTD., on the island,
home to a flourishing semiconductor industry.
In line with one of the business strategies outlined in our
Mid-Term Management Plan, we are currently strengthening
our overseas business. In the future, we plan to expand ourbusiness to cater not only to the air filter regeneration market in
Japan, but elsewhere too. Following on from our businesses
in Singapore, Thailand, and Vietnam, we will enter themechanical and electrical (M&E) work business in Taiwan, andaim to further expand the business overseas.

■ Company overview
Trading name: DAI-DAN Taiwan CO., LTD.
President: Yasunobu Tanaka
Established: April 2022
Capital: NT$5 million
Investor: Wholly owned by DAI-DAN CO., LTD.
Main business lines: Filter regeneration service, electricalwork, air conditioning work, plumbing
work, firefighting installation work, andmechanical equipment installation
work design, supervision, andimplementation

Enhancing our air filter regeneration plant
In corporate activities in recent years, initiatives that aim toachieve the SDGs by reusing resources or reducing waste
have become a necessity.
We also predict that the semiconductor market will also see
long-term growth and, as such, we are expanding our existing
air filter plant in Saitama to meet demand for air filter
regeneration both inside and outside Japan.

No
waste
Conventional
method27

DAI-DAN REPORT 2022

Regeneration

Conventional
methodRegeneration

Conventional
methodRegeneration

DAI-DAN REPORT 2022

28

S

(Society)

Value Creation in PracticeLong-term vision

S (Society)

Achieving High-Quality Medical Environments

How We Are Providing Comfortable,
Optimal Spaces
Expanding our track record for regenerative medicine equipment and systems

Achieving High-Quality Medical Environments

We have an extensive lineup of equipment and systems used in regenerative medicine (21 devices as of fiscal 2021), utilized bycustomers for everything from foundational research to medical treatment. We are a one-stop shop for the clean environments that
customers need in line with medical procedures.

—Combining facility construction and operation—
We have set achieving high-quality medical environments as an area of materiality, and are working to promote safe environments that
support high-quality medical care. To that end, we are contributing to the regenerative medicine field, and providing hospitals withsafe, easy-to-use facilities that are optimized to handle the cell products used in regenerative medicine. We are now receiving more
and more requests from customers to support operational management post-installation, and in response we are working to enhance
our services to offer integrated design, installation, and operation support to achieve higher-quality medical environments.

Product lineup
Animal racks

Hybrid operating room

Room for compromised patients

Air Barrier CPF™

Planning

operation support
services
Facility engineering
capabilities(Hospitals, pharmaceuticalmanufacturing, cell productproduction)

Develop methods ofsupporting operations

Providing™

iRack™ System

Karatto-Operation™

operation support
services
Provide feedback
based onconsultations whenproviding services

S (Society) Achieving High-Quality Medical Environments

S (Society) Achieving High-Quality Medical Environments

In order for Dai-Dan to develop products for use inregenerative medicine and offer operational
support for cell processing facilities (CPFs), we areutilizing joint research with customers as a meansof establishing operation support services that arecatered to the specific applications or scales ofdifferent facilities. As part of that, our maintenanceservice business (taken over by our Cellab
Healthcare Service (CHS) subsidiary) has been
expanding alongside developing and launchingproducts such as the AIR Barrier booth™. In
addition, we are strengthening our cooperation
with CHS to provide better proposals, such as for
preparing operational procedure documentationand other operation support utilizing ourcloud-based monitoring control system REMOVIS.
Through a wide array of support services, we will
help lighten the load for medical practitioners andcontribute to making medical environments higher
quality and easier to use.

™

Patient room

Value Creation in Practice

Value Creation in PracticeExpansion of operation support services

Surgery

Cell processing
facility (CPF)

Clean booths

In line with medical procedures,
we provide the items needed fromour product lineup.

™

Hotto Cure™
(Room for compromised patients)

Commercialize
at otherfacilities

Cell preparation at the hospital(not cultivation)

Administer topatients at
the hospital

Medical treatment in a dedicatedroom for compromised patients

Cellab HealthService website

Diversification of our services business
Fusing manufacturing expertise and facility engineering capabilities
To provide the engineering for facilities that can offer moreadvanced medical care, we believe it is imperative that we fully
understand the ins and outs of actual operations. CHS has
been actively recruiting individuals with experience inproducing cell products, which has allowed it to gather andacquire manufacturing expertise. This know-how will inform
our engineering to adapt to actual operations. By considering
customer perspectives, we will make proposals forenvironments that are safer and offer greater ease of use.

Dai-Dan’sengineering
capabilities

New

Fusion manufacturingexpertiseEngineering easier-to-use facilities

29

DAI-DAN REPORT 2022

In order to fuse the facility operation
expertise and engineering capabilities
of Dai-Dan and CHS, we are continuing
to appoint new personnel. Furthermore,through investment in promising start-ups
in the regenerative medicine field andjoint research, we are aiming to establish
a support business that focuses on
post-construction. We are also looking
to expand our business, in areas suchas cell preparation and production, anddiversifying our services business.

Investment in regenerative
medicine-related ventures

New personnel

Facilityengineering

Accumulated
intellectual properties
and expertise

Joint research

Establishment ofoperation support
business

Expansion of
our services
business

DAI-DAN REPORT 2022

30

Value Creation in Practice

S (Society)

How We Promote Wellness/Regional Collaboration and Vitalization

How We Promote Wellness

Regional Collaboration and Vitalization

As the country’s labor force shrinks and workers expect an end to over-long working hours, industries are making various efforts toimprove productivity. We have set designing working environments where people want to work with attention to health and safety as
one of our areas of materiality and are tackling this as an initiative that will lead to productivity enhancements. As such, under thetheme of improving working environments, we are running joint research with universities and demonstration tests with local
authorities as part of our projects to replace our own buildings.

We have offices throughout Japan, and through a wide range of efforts we engage and cooperate with local communities. During ourwork to replace the Hokuriku Branch Office, which was completed in May 2022, we collaborated with the Kanazawa city authorities
and a local university, and helped to invigorate the region. In Kanazawa, home to the office, there is a campaign to make the city
carbon neutral through efforts that bring together citizens, businesses, and the city government, based on an action plan drawn up tocounter global warming in the city. This includes projects such as the Kanazawa SDGs and Kanazawa: City of Wood initiatives. We
are in full support of the city’s efforts and based on the Dai-Dan Group Sustainability Policy, we went ahead with the Hokuriku Branch
Office replacement project with the aim of making society more sustainable.
During the project, we worked with Kanazawa College of Art, and students submitted ideas to our competition to decide thedesign to be used on our temporary fencing around the site, and we used Kutani-ware washbowls created by the students. We
implemented these and other initiatives so that we could vitalize and increase cooperation in the region through our project.

Investigating projects in-house■ Office spaces at enefice Hokkaido (l) and the Hokuriku Branch Office (r)Value Creation in Practice

Value Creation in Practice

Joining in with the Kanazawa SDGs

S (Society) How We Promote Wellness*1 Design informed by the belief that human instinctively crave a connection with nature*2 Activity-Based Working: where the worker is free to choose when and where they work
*3 Seat that we developed, which combines task-specific cooling and heating functions*4 Reforms using designs that look to create richer lives by considering health through the lens of physical and mental health, the environment, and society

As a form of SDGs for Kanazawa, the city’s authorities have come up with Kanazawa
Future Visions, a plan that comes at issues from the standpoint of a holistic approach to
the economy, society, and the environment, while considering Kanazawa’s unique naturalfeatures, history, and culture. Working with partner companies, the city has announced afive-pronged approach. We have made public our agreement with that approach andapplied it to our building replacement project to help make society more sustainable.

S (Society) Regional Collaboration and Vitalization

As we did at enefice Shikoku and enefice Hokkaido, we
have introduced elements of biophilic design*1 and
ABW,*2 and brought in Clima chairs,*3 and areinvestigating the effects of our wellness reforms.*4 During
our replacement project for the Hokuriku Branch Office,we employed an interior designed to combat drops inefficiency due to exhaustion (using an appropriate level ofplantlife and wooden interior), based on joint researchwith Shibaura Institute of Technology.

■ Initiatives
Designs that harmonize with the location and consider the local ambience

Initiatives to make wellness reforms to field offices
In the construction industry, there is a desire for
improvements to the working environment at field offices
so as to raise productivity. As an experimental measure to
improve our field offices, we made wellness reforms at
two such offices. We are currently investigating theireffectiveness by conducting a survey of opinions pre- andpost-reform.

■ Office space at field offices after wellness reforms

Buildings with low environmental impact through the proactive application ofhighly efficient equipment and passive design
Offices that anyone can work in easily through fastidious use of CLT andinteriors that make use of wood
New value through IoT, etc., that uses wireless devices and our cloud-based
monitoring control system REMOVIS
Appealing construction sites that build ties with the community through theeffective use of temporary fencing to share information

Bringing industry and academia together: collaboration with Kanazawa College of Art
Participating in demonstration tests in collaboration with local authorities and other companies
With the National Urban Greening Kawasaki Fair in 2024
approaching, Kawasaki city authorities are promoting
initiatives that create value through new greenery in thecity. As part of those efforts, they ran a trial on the positive
impact biophilic design can have on productivity at thecity hall offices. We put the expertise we have gained sofar, and we evaluated the effect our combinations of plant
placement (or absence) and natural sounds had.

■ Biophilic design: before (l) and after (r)* For more details on the city’s trial of biophilic design: https://www.city.kawasaki.jp/530/page/0000134111.html (Japanese only)

31

DAI-DAN REPORT 2022

The temporary fencing that we placed along the roadside for the Hokuriku Branch Officereplacement project measured three meters in height, and nine in length, making it ideal forsharing information so we held a design competition in collaboration with Kanazawa
College of Art.
The theme for the competition was the kind of building that could be built, inspired by
the replacement concept of fusing tradition and innovation and the Kanazawa SDGs, andasked students to submit their designs for buildings of the future.
We received many submissions, which incorporated a whole range of the ideas andimagination that only students living in the area could have come up with, and as well as
displaying the submissions, we had the students create the overall design for how the submissions would be displayed.
The students also created a number of Kutani-ware washbowls, a traditional craft in Kanazawa, for us. Kanazawa College of Art isworking to hand down this kind of traditional technique, and we have endorsed this mission, installing the washbowls the students
made in our first-floor guest toilets and elsewhere. Our plan was for visitors to the Hokuriku Branch Office to come into contact with
Kanazawa culture.

DAI-DAN REPORT 2022

32

Value Creation Drivers

Value Creation Drivers

Value Creation
Drivers

イ ノベー ション 力

In this section, we introduce the three driving forces behind thecreation of the value we provide: the innovation capabilities thatcreate new value as we look to the future, the engineering
capabilities that address issues and provide value, and thepractical

competence in

the

field

that embodies

ourcomprehensive strengths.

35

Innovation Capabilities

37

Promoting R&D

39Intellectual Property Management

40

Utilizing Our Value Creation Bases

41

Engineering Capabilities

41

DX Promotion

43

Advanced Development Technologies

46

Practical Competence

47

Installation Examples

50

Enhancing Our Installation Expertise andAbility to Provide Design Solutions

51

33

DAI-DAN REPORT 2022

Overseas Business

DAI-DAN REPORT 2022

34

Value Creation Drivers

Innovation Capabilities

Innovation Capabilities
To act as a central hub to promote innovation at Dai-Dan, we established the Innovation Division.
At the heart of the division is its technologies related to light, air, and water, and it acts based on its three main pillars: fundamental
research that ensures quality, technical development that allows us to deliver new value to customers, and the creation of new
businesses through innovation not restricted to the M&E services field.

1 Maintenance Fundamental research that ensures quality

sustainable space value creation
New business creation

Contributing to a richer, more sustainable society
Regenerative
medicine

Decarbonization

Value Creation Drivers

Value Creation Drivers

We are focused on the R&D that strengthens our core technologies related to light, air, and water. The fundamental research that weare promoting aims to improve the quality of M&E services throughout the entire lifecycle of the building, with research into areas suchas achieving both comfort and energy-savings for buildings, analysis of airflows, measures to counter noise vibrations, and rusting of
distribution pipes.
In recent years, we have also been advancing research and development that incorporates “deep tech” such as AI and digital
twins.

Core business expansion andnew business creation forNewbusinessNewbusinessInnovation Capabilities

Innovation Capabilities

Newbusiness

2 Growth Technical development that allows us to deliver new value to customers
We are developing technologies that reduce environmental impacts and advanced space control technologies, with the aim ofproviding customers with solutions that grasp their real issues, in growth fields like decarbonization, electronic devices, andregenerative medicine. By linking these with, and optimizing these to, the various fields that have grown from our core technologies,
we will react flexibly even in a highly uncertain age and successfully create shared value.
Furthermore, by promoting collaborations with external partners, such as through open innovation, we are able to deliver value ina timely manner.

3 Creation Innovation not restricted to the M&E services field

Air filter
regeneration

Office buildings

Medical/welfare
institutions

Through activities to co-create and cooperate with external bodies—including universities, companies in other industries, andstart-ups—we are working to develop practical applications for new technologies and to create new business. One example is our air
filter regeneration technology, which uses supercritical CO2. This technology is the fruit of joint research between industry, academia,
and government, and has been highly praised from inside and outside the company as an example of shared value creation that aims
to resolve environmental issues.
Moreover, we will start new R&D and business creation themes as part of our ongoing Mid-Term Management Plan, Preparation
Stage, and achieve value creation in our target year of 2030.

Use ofvalue creation bases

Promotion of
R&D

Research institutions

Factories

Strengthening coretechnologies
Creating shared value

Food factories

Air
Light

Water

New
businessNewtech

Co-creation&cooperation

Providing functional spaces that offer people and items
health and comfort, optimized to their use
Core business expansion

Intellectual property management

35

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

36

Value Creation Drivers

Promoting R&D
Through our core technologies in light, air, and water, we flexibly adjust to meet our customers’ increasingly sophisticated, increasingly
diverse needs, and we are also promoting R&D that can help bring about a more sustainable society. Using synergies between ourinnovation and engineering capabilities, we are providing customers with space value throughout the lifecycle of their buildings.

R&D
Case Study

3

Innovation Capabilities

Promoting R&D

Reducing environmental impact byextending equipment service lives

Understanding the process of corrosion and developing anti-corrosion technologies
R&D
Case Study

1 Achieving both comfort and decarbonization

R&D into buildings for both people and the planet

Value Creation Drivers

Value Creation Drivers

To construct environments that are easy to work in, even in ZEBs, we are conducting R&D into areas such as designs informed byperceived brightness—which enable ZEBs to feel bright even with half or less of the energy consumption of a standard officebuilding—and biophilic design—which can raise workers’ intellectual productivity. Also, since energy management during operations
is absolutely necessary to achieve a decarbonized society, we are running initiatives on the theme of optimal building control using AI.
We strive to deliver spaces and create value with the aim of promoting coexistence between people and nature, considering not only
the natural environment but also ease of use for work.

Innovation Capabilities Promoting R&D

Range people consider brightInnovation Capabilities Promoting R&D

To achieve a recycling-oriented, decarbonized society, we consider the effective use of resources; that perspective has led us tobecome highly interested in extending the service lives of buildings. Therefore, with the goal of maintaining the value of customers’
assets, we are placing great importance■ Anti-corrosion■ Example of corrosion analysis
on measures that maintain and protect(Piping sampling inspection)
device for hot waterequipment through diagnosis.
By checking the condition of pipe interiors and testing the
supply piping
thickness of the remaining pipe material, as well as analyzing
The corrosion and deterioration of piping
Expansion tank withmatter that has built up inside the piping, we can betteranti-corrosion function
systems are caused by a combination of
estimate the causes of corrosion and deterioration and propose
ways of countering it.
three elements: environment, materials and■ Cushion Dakki™
All-in-one hot water supply unit
operations. We conduct case study
that combines an expanding
surveys, analyze causes, and work to clarify
tank, circulating pump, andgas-water separator
the corrosion process through lab testing,and have developed equipment able to limit
the corrosion of pipes used to supply hotwater.
These kinds of R&D findings areincorporated into our designs andinstallation work, and we are contributing
to making our customers’ equipmentuseful for longer.

NB valueAt the design stage, we use simulations to study thebrightness of a space. We can achieve a bright environment
even in low-energy buildings like ZEBs.

R&D
Case Study2

Our Hokuriku Branch Office is an example of this lighting andbiophilic design in action. The result is a working
environment that uses little energy but is bright and relaxing.

Based on joint research with Shibaura Institute ofTechnology, we calculated the amount of greenery required
to boost intellectual productivity. Using field-of-viewtranslation data, we have designed the spaces to ensure
5% of the field of view is green.

4 Providing high-quality works

Developing tools that help visualize installation processes

Providing optimal air conditioning environments

R&D into infection prevention air conditioning
Prior to the release of the COVID-19 vaccinations, in the early
period of the pandemic when there was a high severity rate,
there was a lot of trial and error into methods and systems thatwould lessen, even a little, the risk of infection.
We developed infection prevention air conditioning as aninfection risk reduction technology for hospital waiting rooms
where an unspecified number of people share the same space.
This technology uses a monodirectional airflow to quickly
collect and whisk away people’s exhalations. Thisdevelopment involved verification tests using airflow
simulations (via computational fluid dynamics) and a full-size
mockup. We announced the technology as an effective
infection prevention measure at the 2021 meeting of theSociety of Heating, Air-Conditioning and Sanitary Engineers ofJapan.
We will endeavor to keep medical facilities safer by
delivering optimized air conditioning environments.

R&D
Case Study■ Infection prevention airflow simulation
Flow (m/s)
1.0

0.5

Raising the efficiency and productivity of on-site tasks is apressing issue at construction sites. During work to update
equipment, a great deal of work is required to survey and map
out the locations of devices, piping, etc., onto schematics andto draw up work plans. In order to resolve this issue, wedeveloped an installation process visualization tool,
Construction Visualizer 4D™.
This tool uses 360-degree cameras and photographic
measurement technologies to quickly record the relevantmechanical room and equipment as a 3D model. The planned
installation processes can then be shown in a 3D video. This
reduces the amount of work on-site to survey the room, andthe plan can be studied before work starts from a range ofangles, including aspects such as installing or removing
equipment. This means plan proposals can be safer and more
efficient. Furthermore, aspects that are hard to show inschematics can be shared with the customer or
subcontractors, the effect of this is that it encourages a swifter
decision-making process.

■ 3D video showing equipment installation/removal processes

0.0

37

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

38

Value Creation Drivers

Innovation Capabilities

In addition to our intellectual property (IP) rights (patents, etc.), we also consider our IP more generally to include useful ideas andtechnical information. Therefore, we manage the creation and use of IP.

We make effective use of our “value creation bases”—the Innovation Division and our own buildings throughout Japan—as amanagement resource that supports our creation of value.

Utilizing our IP

R&D bases

As part of the 2021 revision to Japan’s Corporate Governance Code (CGC) made by the Financial Services Agency and Tokyo Stock
Exchange, companies were called on to disclose information about actions relating to their business portfolios—in which humancapital and intellectual property are considered assets—to investors and financial institutions.
As a result, and based on our belief that enhancing and utilizing IP is vital to increase corporate value, we have implemented
activities focused mainly on our existing IP rights—most of which have come from our R&D departments—but we have also
formulated the Dai-Dan Intellectual Property Strategy 2022, a major pillar of which is the shift to a broader understanding of IP toinclude useful technical information for which we do not yet have IP rights.

In the Innovation Division facility, an R&D base,we have both dedicated and multipurpose
testing facilities, as well as equipment andpersonnel able to provide measurements andanalysis to address any problems that may
crop up at installation sites. The divisionfunctions as the core of our R&D efforts. The
building also features spaces for staff to relax
or exchange information, and by integrating thebookshelves that hold specialist journals with acafé space, we have improved employee
communication and helped them to recharge,
which lead to new ideas.

Land-lease rights, etc.

New Research Center

Testing facility

Air filter
regeneration
plantIntellectual assets

Facility map for the Innovation Division in Miyoshimachi,
Iruma-gun, Saitama

Human assets
Customer networks, etc.

Intellectual properties (IP)
“Hidden IP” (expertise)
Useful ideas, technical information

IP rights
Patents, etc.

Broader understanding of IP:
IP + “hidden IP,” useful ideas, technical information
Adapted from a chart from the Ministry of Economy, Trade and Industry’s “What are IP and IP management?” article
https://www.meti.go.jp/policy/intellectual_assets/teigi.html (Japanese only)

Through this initiative, we are creating a great deal of IP at each of the sites where we conduct designing, installation, and R&D. As
well as management to promote the effective use of the IP we create, we are educating all technicians about IP.

DAI-DAN REPORT 2022

Research Center

Innovation Capabilities Utilizing Our Value Creation Bases

Innovation Capabilities Intellectual Property Management

Utilizing Our Value Creation Bases

Value Creation Drivers

Value Creation Drivers

Intellectual Property Management

Intangible assets

39Intellectual Property Management/Utilizing Our Value Creation Bases

Value creation from dialogue
In order to truly grasp customers’ real issues
and continue to deliver high-added-value
solutions, we recognize that it is important wehave a venue where customers can experiencethat value and engage in dialogue with ourdevelopers. In the exhibition space at theInnovation Division building, we have foundways for customers to use and experience thetechnologies and services that we develop,
and we hold tours where visitors can take part.
Also, by designing the space to encourage thekind of conversations that lead to open
innovation, we have picked up customer
feedback and this is leading to new spacevalue creation.
Furthermore, so as to analyze the issues
intimately associated with the lifecycle ofbuildings and provide solutions, we promote
medium- and long-term studies that make useof our own buildings. Throughout our varied
testing bases, staff in Kyushu, Shikoku,
Hokkaido, Hokuriku, and elsewhere, are able
to stand in front of customers and enhance theessence of value at the practical application
stage.

Exhibition andideas exchange
area

Air

Next-generation office experience

Light

Water

Experiential features use the latest
technologies

DAI-DAN REPORT 2022

40

Value Creation Drivers

Engineering Capabilities

Promoting workstyle reform through the job site support remote teams
To address labor shortages in the construction industry, and as part of our reforms to the way people work, in 2017 we began apioneering initiative ahead of the rest of the industry, we organized job site support remote teams throughout the company to work to
improve productivity. These teams, made up of CAD operators and office workers who would previously need to be stationed on-site,use ICT environments (online meetings, cloud servers, shared BIM/CAD software, etc.) to offer support to job sites remotely.

Reforming work flows

Working to make DX (BIM) a work flow platform

Planning

Standard support
Blueprint RTR

During the design stage, we
use more detailed technicalcomputing and simulations,while building consensus withthe customer regarding design,cost, and other factors, before
work is carried out.

As well as allocating various tasks (creating BIM and CAD
models, job site documents, regulatory filings, etc.) related tomilestones such as work commencement dates and material
and equipment purchase order date set in the project master
plan, the RTR* also adjusts the schedule and organizes survey
records during the project or creates completion documents.
This remote support reduces the work involved in on-site
tasks.

Via online meetings, the teams share BIM and CAD 3D images
with job site employees via large monitors and can carry out
blueprint reviews to verify construction quality and contributeto improvements in the engineering skills of less experienced
job site employees.

Thermal environment simulation

Engineering Capabilities DX Promotion

Engineering Capabilities DX Promotion

Remote support RTR

DesignValue Creation Drivers

Value Creation Drivers

We have positioned BIM* as a platform for work flows and are promoting it as such. This will increase the efficiency of various tasks
throughout a building’s lifecycle and help deliver the high-quality building a customer wants. We also used BIM for our branch officereplacement projects.

Structural planning

DX Promotion

DX Promotion: Organizational Changes

DX Promotion: Projects

During the planning stage, we run a variety of simulations(earthquake-resistance, ventilation, sunlight, etc.) to get a fullunderstanding of the building’s fundamental characteristics.

Engineering Capabilities* Remote Team Review

Ventilation simulation

Interior

Exterior

BIM model

Enhancing support tasks

Completion

Remote job site patrols

Security patrols

Mobile web cameras allow images to be shared between
offices and job sites, and we are conducting progress checks
and quality patrols remotely.

To ensure information security, we can check the runningstatus of job site computers remotely. This reduces thenumber of tasks that require employees to visit sites andmassively increases efficiency.

Installation
During the installation stage, we use the model data to produce and manage
materials and components, and for on-site tasks such as temporary scaffolding
plans, with the aim of raising efficiency and reducing project time.

Video transmission and calls

Patrols
Cloud

Save videos/
photosPhone interviews

Realtime meetings alongside
live video footage
Video viewing
and calls
Completed Dai-Dan Hokuriku Branch Office*41

Temporary scaffolding plan

Piping unit production

Time required:approx. 10 mins.
Check job site computers remotely

Building Information Modeling: a system that creates building information models that include not only 3D computer-generated modeling information, but material and component
specifications and characteristics and finishes, combined with additional, related information about the building. At every stage from design to construction and operations, thesystem allows blueprint preparation, estimates, various technical calculations, simulations, and other processes to be effectively linked and put into practice, for higher quality.

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

42

Value Creation Drivers

Engineering Capabilities

Advanced Development Technologies

Advanced Development Technologies
Highly precise room pressure control system

Interior environments optimized to the building application

Low-cost clean room

Energy-saving, highly precise humidity control system

Providing pharmaceutical plants and similar withFor datacenters, etc.

Initiatives aimed at providing stableroom pressures

Modeling by using airflow
simulations and mockups

Equipping electronics and precision-item
factories

Evaporative humidifier enabling highly precise
humidity control

Virtual Duct Clean Room System™

WIT WET™

Dai-Dan has done numerous datacenter installation jobs.
Those experiences have led our engineers to using airflow
simulations and mockups to identify and solve potential issues
in new projects, as well as to develop new technologies.

This ductless air conditioning is suited for ISO Class 6–8 clean
rooms. Using a proprietary discharge unit that emits an
unbalanced airflow, it delivers at a low cost the same level oftemperature, humidity and clean factor uniformity as aconventional system built with ceiling ducts and HEPA filters.

■ Simulation of floor-blown airflow distribution〈During the design phase〉
Poor airflow balance
Air blow:■ Example of modeling by using a mockup

Excessive

Features① Similar low-cost to direct blow AC systems

The WIT WET evaporative humidifier with a rotating humidifying
element was developed as a direct outdoor air-cooling system tobe used in datacenters. A problem with conventional evaporative
humidifiers is the low degree of control over humidity, which thissystem resolves and so is especially effective at controlling
humidity when using direct outdoor air cooling. Anothercharacteristic of this evaporative humidifier is that it allows
energy-saving through its cooling effect and the precise control
over humidity that it offers. It is also suitable for locations otherthan datacenters, such as offices, hospitals, or art museums.

Value Creation Drivers

Value Creation Drivers

Important facilities such as pharmaceutical plants or research
institutions require rooms to be airtight and for room pressure
to be stable. However, in the past, achieving the highly precise
room pressure control needed to maintain airtightness wasconsidered challenging. Through modeling using mockups
and from our own installation accomplishments, we are gaining
the expertise and knowledge needed to control room pressure
to a precise degree. In this way, we will respond to customers’
wishes.

② Good temperature, humidity and clean factor uniformity④ Easy-to-relocate AC unit ensures that layouts can be changedin the future

Excessive
air velocity

Engineering Capabilities Advanced Development Technologies

Engineering Capabilities Advanced Development Technologies③ No duct work required. Little time needed to install.
AC unit air blow:

Features① The humidifying element can be turned to regulate airflow andcontrol humidity.

→ Reverse flow fromfloor ports〈Study〉
Improved airflow balance
Air blow:

Uniform② Humidity control is highly accurate and features steplesssetting, effectively eliminating over-humidification andhunting.

■System concept
Unbalanced airflow quickly
prepares clean rooms
without using ducts.

Clean air is supplied as if there were ceilingducts because of the Coanda Effect*.

③ Reduced pressure loss during seasons that do not require
humidification

Ports close to
AC unit withfloor ports■ Example of improvements to room pressure controllability■ Mixing of outside and circulating air in outdoor air
cooling (Intake side)

Indoor pressure [Pa]Conventional evaporative humidifier
Stationary humidifying
element
Humidified air

Production
equipment

OutletInlet

and objects

Dry air

Outside air

OutletControllability:
dew pointLow
temperature

Setting: 9˚CDP

Inlet
dew point
temperature
Time [s]Unbalanced airflow
discharge port

WIT WET
Rotating humidifying
element■Airflow simulation

Indoor pressure [Pa]Settings and system changes
led to improved room pressure
controllability■ Modeling by using a mockup(Mixing of outside and circulating air)Measurement
conditions
Outside air
intake angle
Airflow ratio(Outside air :Circulating air)Time [min.]

Humidified air

0°

Photo of mockup

Temperature
distribution on AC
intake side

Dry air

Outside Circulating
air
air

Production
equipment

3：1

Circulating air
temperature 33.7℃
when blown
Outside airtemperature 11.6℃
when blown

Airflow travels
beyond production
equipment

Dew point temperature [˚CDP]

AirCirculating conditioner
airTime [min.]

DAI-DAN REPORT 2022

AC
unit

* Tendency of an airflow to follow walls

Intake side

43

Clean air is supplied far
beyond production
equipment.

Low-speed
airflows traverse
the production area
at work height.

→ No more reverse flow fromDew point temperature [˚CDP]

Adjustable
aperture

Controllability:
Outletdew pointHightemperature
Setting: 9˚CDP

Inlet
dew point
temperature
Time [s]■ WIT WET’s rotating humidifying element in action

Unbalanced
airflow discharge
portMax. 18.4˚C, Min. 17.5˚C
Max. ⊿T: 0.9˚CAperture: 0˚(Fully closed)

Aperture: 45˚

Aperture: 90˚(Fully open)

DAI-DAN REPORT 2022

44

Value Creation Drivers

Engineering Capabilities

Advanced Development Technologies

Exceeding customer expectations with knowledge, experience and action
Infection prevention via a simple installation

Surgical rooms that are comfortable yet save energy

For simple infection countermeasures at medical
and care facilities

For energy-saving dehumidifying for surgeries

Air purification and depressurizing
unit (INF Series)* Handled by Cellab Healthcare Service
In cases where air from outside the surgery is not processed byreheating it, the room can become very humid, such as during
the rainy season. This can, in some cases, lead to trouble suchas condensation building up in medical equipment. With
Karatto Operation we have focused on heat recovery
technology using coolant, for an air conditioning system where
the exhaust heat produced during cooling is used for reheating.
Compared to conventional electric heaters, the result is
superlative energy-saving and a comfortable environment.

Practical Competence
Every building system we deal with is unique and different, which requires us to employ flexibility and creativity whenchallenged 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 ourestablishment, 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.
Value Creation Drivers

Value Creation Drivers

As the recent COVID-19 pandemic shows, when a new
infectious disease breaks out, even general medical institutions
or care facilities require separated room into which totemporarily admit those who are infected or suspected to be
infected.
This unit purifies the air and depressurizes the room in which
it is placed and requires little in the way of installation to createa simple depressurized room. The design has been chosen tocater not only to medical facilities, but also to care facilities.

Karatto Operation™

Installation example ①

特徴interior.
① Cools and dehumidifies surgery① Small-scale installation for air purification anddepressurization② Uses HEPA filters to purify circulated and vented air.
③ Rooms can be outfitted for depressurizing with simple ductwork.

ICT facility② Highly energy-efficient air conditioning system uses control
technology for multiple air conditioners that can
independently heat or cool at the same time.

NRT10③ The air conditioning system in each room is a complete unit
so it is easy to maintain.

■ System concept■ INF Series

Practical CompetenceEngineering Capabilities Advanced Development Technologies

FeaturesFeatures

Special mixing unit

HEPA filter

47
Installation example ②

Large-scale research facility

Kurita Innovation Hub
48
Single coilINF-101(Floor standing type)INF-201(Window unit)

Double coil

Dehumidified for a comfortable environment
Temperature

Humidity

Conventional
air conditioning system

26℃

60%

22℃

Dehumidified
andcomfortable

Comfortabletemperature andhumidity

24℃

Karatto Operation

Conventional
air conditioning Coolingsystem40%

Reheatingwith an electric heater

Temperature
Relative humidity

45

DAI-DAN REPORT 2022

Uses exhaust heatfrom cooling

Large-scale research facility

Nagasaki University
Testing building, National ResearchCenter for the Control and Preventionof Infectious Diseases

49

Energy-saving
withheat recovery

KarattoReheatingOperation Cooling with exhaust heat from coolingINF-301 (Floor standing type) installation concept

Installation example ③

Enhancing Our Installation Expertise andAbility to Provide Design Solutions

50

Reduces energy use dramatically

DAI-DAN REPORT 2022

46

Value Creation Drivers
Installation example ①
ICT facility

Kurita Innovation Hub
Our client, Kurita Water Industries Ltd., opened the doors on its
new R&D base, the Kurita Innovation Hub (KIH) in April 2022.
KIH is a base that looks to fuse a wide range of ideas inspiredby connections with customers in Japan and abroad, research
institutions, and other stakeholders, and to create new innovationthat can resolve issues in society and industry. Working with Taisei
Corporation , we installed the buildings’ electrical equipment.

This datacenter was designed for a tenant that needed ahigh-capacity energy source, and construction was completed
in November 2021.
We installed the air conditioning and plumbing, and here wewould like to introduce the heat sources and air conditioning
and ventilation equipment we used for this project.

Inzai, Chiba

Use

Datacenter

Scale

Gross floor area: 37,850 m2
Five stories above ground, one-story rooftop
structure

Construction

Steel (partial reinforced concrete), seismic isolation

Completed

November 2021

■Overview of the equipment (for one system)
Heatsources• Air-cooled centrifugal chillers (1,765 kW × 5 units, N + 1)
• Cold water thermal storage tanks(15 m3 × 2 units × 2 series, 2N)• Plate type heat exchangers(3,980 kW × 2 units × 2 series, 2N)Air
conditioning

Server room:
Wall-mounted AHUs × 18 units (N + 2) +Outdoor-air-processing AHUs × 2 units (2N) +Electric steam humidifiers × 2 units (2N)
UPS room:
Upward-blowing AHUs × 3 units (N + 1) +Outdoor-air-processing AHU* In the chart above, N indicates the number of units in operation during 100% load.
This project involved hypothesizing stoppages due to
breakdowns or maintenance in advance, so we fitted theserver rooms and UPS rooms with heat sources and air
conditioning equipment in N + 1 and 2N configurations so that
redundancy is built in.
Also, the cold water supply to the air conditioners
comprises a system whereby during normal operation half of
the water is supplied to series A and half to series B, but if there
is a problem with one of the piping series, BMS can be used toswitch the supply so that 100% of the supply can be sent via
the other, fully functioning series.
Moreover, cold water thermal storage tanks we installed
ensure that even if all of the chillers stop working, the UPS
electrically powered cold water pump will continue to operate,
and that water will provide a stable supply of cold water for ten
minutes.

This project was for the construction of the first building of
our new datacenter in Tokyo, a vitally important,massive-scale project that will prove a stepping stone to a
Japanese datacenter business.
Just as construction started, the pandemic struck. The
situation was a world-first, with shortages of labor andmaterials, and restrictions on groups of people
assembling. Despite this, Dai-Dan’s technical capabilities,
creativity, and ability to communicate were demonstrated
to the nth degree. We were incredibly grateful to Dai-Dan
for completing work in such a short time while maintaininga high quality. I hope that we can further develop therelationship between our two companies going forward.
Toshiharu Yamamoto, Country Manager
Nobuyoshi Osawa, Director
Digital Realty

Comment from the site manager
This project was for a truly cutting-edge datacenter thatneeded to be able to handle electricity supplies of up to
42 MW for its IT.
With hurdles such as the outbreak of COVID-19 toovercome, procurement was challenging, but by employing
air-cooled turbo chillers and data hall air conditioners that
had been manufactured abroad—and which did not havemuch of an installation track record in Japan—as well as
remote factory checks, local heat load tests and IST andother studies, we were able to furnish equipment that met ourcustomer’s required standard.
I am deeply indebted to theclient, the design team, all ofthesubcontractors,
andeveryone else involved—it isthanks to them all that we
could complete the project insuch circumstances without
issue. They all have my thanks.
Atsushi Mogi, Grand Project Master
Engineering Department 4, Tokyo Head Office■Building outline
Location

Haijima-cho, Akishima, TokyoUse

R&D facility
Technology Innovation Center (R&D facility):
Five-story single building, etc.

Scale

Technical Education Center (Multipurpose facility):Three-story single building
Site area: 30,112.33 m2
Gross floor area: 38,395.02 m2

Construction

Reinforced concrete, steel,steel reinforced concreteCompleted

March 2022

The Technology Innovation Center features a number of piecesof equipment: state-of-the-art testing and analysis equipment to
do with water and the environment, the latest ultra-pure-waterproduction equipment that can supply high-purity water in large
amounts, and test facilities with clean rooms that boast thehighest level of cleanliness. The Technical Education Center,meanwhile, features the training equipment needed to teachabout the technologies and expertise used in processing water,
and to foster personnel who can address customers’ andsociety’s problems. The overall facility also includes systems thatcan recycle water and systems that help to reduce energy
consumption and CO2 emissions by integrating water processing
and the air conditioning cooling and heating systems. Between
these and its 100% use of renewable energy sources, the facility
has been designed to be kind to the environment.

■Overview of the equipment
Power receiving
methodPower receiving andtransforming equipment

High voltage: 6.6 kVMain and backup lines × 2 (two buildings)
Indoor and outdoor cubicles: in 6 places
Total equipment capacity: 15,070 kVA (transformers: 48)

Backup power
generationequipment

6.6 kV, 625 kVA
200 V, 250 kVA
Underground fuel tanks:
Fuel oil A, 1 × 12,000 L; 1 × 5,000 L

Otherequipment

Sub-main cable service, secondary power
supply service, electrical light outlets,
guidance and support, storage batteries,
digital signage, audio-visual equipment, etc.

Customer review
As the name would suggest, the concept for the Kurita
Innovation Hub is a place where diverse people from insideand outside our company come together, make connections,and revolutionize technology and society. This interaction andcooperation between various stakeholders will help toaccelerate creativity. During construction, Dai-Dan came up
with a variety of ideas in ways to save energy and visualize
how much energy we use, and were able to incorporate those
into the facility.
Even with changes to the plans and shortages ofmaterials, Dai-Dan responded quickly and flexibly, for which
we are very thankful. In the future, we hope to have Dai-Dan
look after the maintenance and replacement of the equipment,
so we look forward to continuing to work together.

Practical Competence Installation example ②

Practical Competence Installation example ①

Location

Customer review

Value Creation Drivers

Value Creation Drivers■Building outline

DAI-DAN REPORT 2022

Installation example ①/②

Installation example ②
Large-scale research facility

NRT10

47

Practical Competence

Shinich Wada
Operational Improvement Team, KIH Administration Department,
Kurita Innovation Hub, Innovation Division
Kurita Water Industries Ltd.

Comment from the site manager
During the roughly two years we were involved at this site, we
had repeated meetings with our client, the design office, andthe general contractor company—everyone responsible formeeting the customer’s needs—and worked to ensure quality.
In particular, to make sure that the clean rooms were airtight,
and to guarantee the performance of the large-scale researchfacility and the advanced equipment it possessed, we worked
with the machinery team to simulate the power cut andrestoration that would occur with a momentary or short-term
power outage, and we were able
to trial an actual power outage tostudy and confirm the results.
I am deeply grateful toeveryone
involved
whoensured the installation went
ahead without a hitch.
Yuichi Kinami, Project Master
Engineering Section 2, Engineering Department 1
Tokyo Head OfficeDAI-DAN REPORT 2022

48

Value Creation Drivers
Installation example ③
Large-scale research facility

Sharing and utilizing the enhanced value generated by our on-site expertise
Case study presentations for sharing expertise and integrity
throughout Dai-Dan

Value Creation Drivers

Use

University

Scale

Gross floor area: 5,210 m2
Five stories above ground,
one-story rooftop structure

Construction

Reinforced concrete, partial steel reinforced
concrete, seismic isolation

Completed

July 2021

This facility is the first in Japan where workers wearing
positively pressurized airtight suits can handle BSL-4
pathogens inside the test lab.
While it is the third BSL-4 facility to be built in Japan, it is thefirst BSL-4 facility to house research and testing into
pathogens.

Comment from the site manager
This project was affected by factors such as exceptionallyheavy rains in Kyushu and the outbreak of the pandemic.
During that time, we used Rebro (BIM software), virtual
reality, and other technologies to raise the efficiency of theinstallation work. By sharing information in this way with
Nagasaki University, Toda Corporation, manufacturers,
and subcontractors, we are able to successfully complete
the project.
The
project
actually
overlapped with the busiest
period in Nagasaki Prefecture,and so we faced chronic labor
shortages, so I am very gratefulto everyone who took part.
Osamu Nakano, Project Master
Engineering Section 3, Engineering Department
Kyushu Branch■Overview of the equipment (for one system)

49

Heat
sources• Air-cooled HP module chiller• Air-cooled HP air conditioner• Boiler (for air conditioner and humidifier,autoclave)Air
conditioning
andventilation• Ventilator + coil filter unit + HEPA filter unit
+ extractor (test lab)
• Total heat exchanger + air-cooled HP(general-use room)• Scrubber (for local venting)• Honeycomb filter unit (for local venting)

DAI-DAN REPORT 2022

Reference: Biosafety levels (BSL)
Pathogens that can be handled
BSL-1

Vaccines or pathogens that present no danger
to animals

BSL-2

Measles, influenza viruses, etc.

BSL-3

Rabies, tuberculosis, avian influenza viruses,
etc.

BSL-4

Ebola viruses, Lassa virus, etc.

Our Technical Reports are publishedwith the aim of leveling up throughtechnical accomplishments andadvancing standards, predominantly
by detailing designs and case studies
of installations.
In the latest issue, there arearticles with information about 26
case studies, including some of thewinning entries to the Case Study
Presentations, and case studies
related to medical facilities, industrial facilities, and otherbuilding applications.
The magazine is targeted at all engineers and includes
introductions to such advanced topics as: our promotion ofi-Construction, inventiveness and method improvements,
cost-suppressing efforts, improvements to productivity via theuse of installation BIMs, and the promotion of moving tasks
offsite to reduce job site work as much as possible.

Practical Competence Enhancing Our Installation Expertise and Ability to Provide Design Solutions

Practical Competence Installation example ③■Building outline

Technical Reports

Value Creation Drivers

We held our “14th Case Study Presentations” in November 2021.
This event gives our employees an opportunity to present theachievements they have made through expertise and integrity in thecourse of their day-to-day work. Awards are also presented. A
video conferencing system is used so that employees across thecountry can participate. We also use a web conferencing system tobroadcast the presentation live to employees.
By taking lessons and ideas presented through the case studies
at the presentations and bringing these remarkable achievements
into our offices and job sites to share and utilize them in in-house
education, we are contributing to the further enhancement of
Dai-Dan’s technical capabilities, safety, and quality.

Nagasaki University planned the construction of its BSL-4
testing facility, with advanced safety features, in order to
conduct research into emerging and re-emerging infectious
diseases. Construction was completed in July 2021.
Working with Toda Corporation, we installed air
conditioning equipment and here we introduce a building
overview and some of the characteristics of the equipment.

Nagasaki City, Nagasaki

Installation example ③/Enhancing Our Installation Expertise and Ability to Provide Design Solutions

Enhancing Our Installation Expertise and Ability to Provide Design Solutions

Testing building,National Research Center for
the Control and Prevention of
Infectious Diseases,
Nagasaki University

Location

Practical CompetenceAward recipients

Comment from the winner of the President’s AwardAt the 14th Case Study Presentations, my team and I werechosen to receive the President’s Award out of the many
examples of design, installation, proposals, and improvementsfrom across Japan. We are truly thankful for this great honor.
The case study for which we won the award involved using BIM
and ICT for an installation in a building that required exceptional
quality, and using these technologies we were able to relay
information and heighten the accuracy of the installation, which
resulted in improvements in efficiency. Specifically, we analyzed
our existing management methods and cut out the impossible
and unnecessary, while selecting tools and adding information
as appropriate to each goal. Doing so has led to a new
management method. As a result, the accuracy of management
has improved, and many other advantages of DX have beenachieved, including fewer manhours required and greater safety.
However, we also discovered issues with applying this method
company-wide, including constructing a new support systemand fostering and training personnel. Lastly, with major changes
in the industry set to continue, for Dai-Dan to always lead
reform, we have to keep broadening our outlook in our dailytasks, and we will strive to actively take on challenges.
Engineering Section 2, Engineering Department 1
Kyushu Branch
Kaoru Fukuyama, Manager(Photo as representative)
Shoich Tanaka, Grand Project Master
Osamu Nakano, Project Master
Daijiro Shimoino, Deputy Manager
Kazunori Kasatani, Deputy Manager
Akihiro Okada, Chief

Step Up Training

Our Step Up Training is designed to offer a next step for
mid-level engineers who have finished their core technology
training. Participants are taught about four fields where ourcore technologies play significant roles: medical treatment,
industry, innovation, and electricity. Training is split over threelevels (Step 1 for beginners, Step 2 for intermediate trainees,
and Step 3 for advanced trainees) and is conducted to foster
specialists in each of our core fields.

Main training topics
Medical treatment• Understanding of hospital equipment guidelines• Basic knowledge of regenerative medicine facilities• Sharing techniques and knowledge of those with design or installation experience

Industry• Basic knowledge of pharmaceutical plants, validations and equipment installation• Basic knowledge of air conditioning and utility systems for electronic devices plants• Sharing techniques and knowledge of those with design or installation experience

Innovation• IoT foundations and overview of cloud-based monitoring control system
REMOVIS• Main points and concerns about planning, design, and installation of ZEB air
conditioning equipment• Tours of the latest ZEBs

Electricity• DALI lighting control system • ZEB overview and web programs• Cogeneration systems • Grounding and lightning protection equipment• Extra-high-voltage power receiving and transforming equipment

DAI-DAN REPORT 2022

50

Value Creation Drivers

Overseas Business

Overseas Business■Efforts in our overseas business• Overseas projects
From sales to design and installation, overseas subsidiaries areworking together with Dai-Dan in Japan.

• Overseas assignment preparatory training
We carry out preparatory training for those who want to be
assigned overseas.

• International staff training
We have adjusted the training that we carry out in Japan,
incorporating case studies unique to our business outside Japan,
and we periodically conduct this technical training forinternational staff.

Singapore CREATEDAI-DANINTERNATIONALASIASingapore
BranchDAI-DAN(THAILAND)International
Division

Headquarters

West Japan
Division

DAI-DAN
TaiwanDAI-DAN(VIETNAM)

Thailand Solar cells for existing factory(Mie Precision Machining)■Orders received and net sales

Singapore
Net sales: ■■Singapore ■■Thailand

14,00012,00011,386238
10,258

10,20810,000868

1,229

10,414

9,738

704

1,212
8,000

7,295
6,709

999
6,000
4,560

499

597

4,695

9,710

9,390

8,979

3,963

5,680

5,575

4,802

4,065

0
FY2016

51

DAI-DAN REPORT 2022

FY2017FY2018

In 1977, we set up a representative office in Singapore, and in1979 this was reorganized and established as the Singapore
Branch Office. The first large-scale project that the branch
office, which is now more than 40 years old, tackled was at
Changi Airport. Since then, the branch office has been involvedin many different types of projects, including back at Changi
Airport. In 2021, we established a wholly owned local subsidiary,
DAI-DAN INTERNATIONAL ASIA PTE. LTD., and we will transfer
the functions of Singapore Branch Office to this new company
as we work to expand our business in Singapore. Also in the
future, as the subsidiary’s name would suggest, we aim to havethe company act as a central based in Southeast Asia and tocontribute to the expansion of our overseas business overall.

8,526

6,296
3,747

743
11,148

431

630

6,423

1,134

5,233
4,246

2,000

Thailand Solar cells for existing factory(Company P)

Orders received: ■■Singapore ■■Thailand(Million yen)

4,000

Singapore Terminal 2, Changi Airport (Updated power receiving and transforming equipment)

Overseas Business

Overseas Business

East Japan
DivisionCentral Japan
Division

Overseas installations

Value Creation Drivers

Value Creation Drivers

Fiscal 2021 is the first year of our Mid-Term Management Plan,and one of the business strategies we have set is to strengthen
our overseas business. With an eye on growth in overseas
markets, we are aiming to actively expand our business inSoutheast Asia.
Our overseas business has so far spread to coverSingapore, Thailand, Vietnam, and Taiwan.
To act as a base for our overseas operations here in Japan,
in April 2022, we established the International Division, and arestrengthening cooperation between our various overseas
bases and Japan.
In Japan and elsewhere, we provide customers withtechnologies that can create the environments they want but
outside of Japan, our goal is to use our international staff tofuse these technologies with the individual perspectives of ourforeign bases.

FY2019FY2020

FY2021

Singapore Branch

DAI-DAN INTERNATIONAL ASIA PTE. LTD.

EstablishedEstablished: January 1979

: September 2021

General Manager : Eiji Fujita

Managing director : Eiji Tsukamoto

Number of staff : 71 (4 Japanese)

Number of staff: 40 (2 Japanese)

DAI-DAN REPORT 2022

52

Value Creation Drivers

Overseas Business

Thailand

Promoting Sustainability

Value Creation Drivers

Dai-Dan (Thailand) is our second overseas base after theSingapore Branch Office, and as well as a head office in
Bangkok, includes offices in the Chon Buri and Lamphunprovinces. For Japanese companies or subsidiaries operatingin the area, the company works with Dai-Dan in Japan to offer
everything from sales, to design and installation. It also
provides Dai-Dan-standard quality even in Thailand, and willcontinue to maintain its high satisfaction levels amongcustomers.

DAI-DAN (THAILAND) Co., LTD.

Overseas Business

Established: August 1984
Managing director : Yoshinori Uetani
Number of staff : 73 (6 Japanese)
Website: https://www.daidan.co.thVietnam

In October 2020, we established a wholly owned local subsidiary
in Hanoi, the capital of Vietnam. Vietnam is expected to see
steady economic growth and further expansion of its construction
market.
Like Dai-Dan (Thailand), the subsidiary will provide
Dai-Dan-standard in the country to Japanese companies or
subsidiaries operating in the area by working with Dai-Dan inJapan to offer everything from sales, to design and installation.

DAI-DAN (VIETNAM) Co., LTD.
Established: October 2020
Managing director : Masatsugu Itano
Number of staff : 3 (1 Japanese)

TaiwanIn order to expand our business overseas, in April 2022 weestablished a wholly owned local subsidiary in Taiwan, and weare making preparations to enter the building services businessthere.
At present, we are offering an air filter and adsorbent
regeneration service that uses our supercritical CO2, a service
which we already have a track record in Japan.

DAI-DAN Taiwan CO., LTD.
Established: April 2022
Managing director : Yasunobu Tanaka
Number of staff : 1

53

DAI-DAN REPORT 2022

Promoting Sustainability
55

Sustainability Initiatives

59

Environmental Initiatives

59

Environmental Conservation Initiatives

61

Partnering with Hosting Communities

63

Planting the Idea of Dai-Dan Forests

65

Valuing Our Employees

65Work-Life Balance and the Work Environment

DAI-DAN REPORT 2022

54

Promoting Sustainability

Sustainability Initiatives

Sustainability Initiatives

Sustainability Committee

Formulation of the Dai-Dan Group Sustainability Policy
We formulated our policy as our fundamental approach to tackling the issue of sustainability. Our policy, founded on our management
principles and the Dai-Dan Group Action Standards, is positioned above our individual environmental, social, and governance policies.
By setting the Dai-Dan Group Sustainability Policy, we aim to further promote ESG-focused management and help bring about a moresustainable society.

In April 1, 2022, we established the Sustainability Committee with the president as its chair, both to contribute to the shift to a moresustainable form of society, and to enhance our corporate value. At the same time, to function as a secretariat for the committee, weestablished the Sustainability Promotion Department.
The new Sustainability Committee, under the supervision of the Board of Directors, investigates and promotes efforts to implement
the Dai-Dan Group Sustainability Policy, and as well as managing progress and deliberating measures connected to related policies
or materiality, it deals mainly with the following three areas.
1. Determining responsibilities to work toward a more sustainable society and planning business strategies
2. Planning and promoting activities in three areas: CSR, the environment, and social contribution
3. Promoting information disclosure about ESG activities outside the company, as well as measures to enhance how we areperceived from outside
Under this aegis of this Sustainability Committee, we will further accelerate our move to sustainable management.

■Policy hierarchy
Promoting Sustainability

Promoting Sustainability

Management principles

Our task forces

Sustainability policy

Chair: President

Health and safety
policies
Human rights andlabor policies

Approach to humanresource development
Approach toenvironmental
improvement

G

Corporate governancepolicies

Risk management
policyHealth and productivity
declaration

Action guidelines for business partners

Quality andenvironmental
protection policies

Procurement policy

S

Sustainability
Committee

Dai-Dan Corporate
Governance Guidelines

Information security
basic policy

Personal information
protection policy

Basic policies on appropriate
handling of specific personal
information

Corporate Planning Office(Secretariat: Sustainability Promotion
Department)

Sustainability Initiatives

E

Sustainability Initiatives

With the goal of addressing climatechanges, human rights issues, and othersustainability-related challenges, we havecreated a number of task forces (TFs) thatstraddle different departments that operate
under the Sustainability Committee. The
task forces aim to bring together
wide-ranging expertise and promote theresolution of these problems.

Board of Directors

Group Action
Standards

Work Style &Human Rights TFs

TCFD-related TFs

Scope 3 TF

Scenario Analysis TF

Integrated Report TF

Work-Life Balance TF

Well-Being TF

Human Rights Due
Diligence TF

Works to disclose
Scope 3 greenhousegas emissions

Calculates thebusiness impact ofclimate change

Compiles our
integrated reports

Combats long working
hours through the
SMILE 2024 Project

Aims to earn continued
recognition as an Outstanding
Health & Productivity
Management Organization

Identifies and designates
human rights risks, includingin the supply chain and atgroup companies

Information disclosure in line with the TCFD’s recommendations
Dai-Dan Group Sustainability Policy
The management principles that guide the Dai-Dan Group explicitly challenge us to “create value for our customers while contributing to thedevelopment of a better environment and stronger communities.” Those principles underscore the Dai-Dan Group Action Standards on which
we seek the trust of our stakeholders and the business activities through which we strive to solve the problems facing society and theenvironment, and contribute to the realization of affluent but sustainable ways of life. In doing what we can to help steer society towards truesustainability, we at Dai-Dan are committed to:
1. Finding and applying light, air and water technologies that protect the global and local environments while providing comfortable workand living spaces by reducing environmental loads.
2. Fostering a corporate culture that respects the human rights and individuality of everyone by welcoming diversity into the workplace.
3. Ensuring full compliance with laws, regulations and agreements by continuously improving our systems of corporate governance.
4. Maintaining an open dialogue with stakeholders that allows us to meet social expectations and demands, and build strong bonds of trustwith all.
5. Sharing this policy with group subsidiaries and subcontractors so that we can promote sustainability initiatives in unison.

55

DAI-DAN REPORT 2022

We have set contributing to a carbon-free society as one of our areas of materiality,
and in line with the Dai-Dan Group Sustainability Policy, we are promoting efforts
to reduce our environmental impact through our business activities.
In August 2021, we announced our support for the recommendations
published by the Task Force on Climate-related Financial Disclosures (TCFD) and joined the TCFD Consortium. The TCFD’s
recommendations are split into four categories: governance, strategy, risk management, and metrics and targets.
Going forward, we will continue to further advance our analysis of the effect climate change will have on our business activities,
and will disclose any pertinent related data.

■TCFD-recommended information disclosure categories
Governance

Strategy

Risk management

Metrics and targets

Organizational governancearound climate-related risks andopportunities

Actual and potential impacts on anorganization’s business, strategy, andfinancial planning aroundclimate-related risks and opportunities

Methods by which anorganization identifies, assesses,
and manages climate-relatedrisks

Indicators and goals used whenassessing and managing
climate-related risks andopportunities

DAI-DAN REPORT 2022

56

Promoting Sustainability

1.

Type

Governance

Acute■Analysis process
Identifying risks and opportunities• Gather information on risks and opportunities in
the construction industry• Identify items that are “transition risks”*1 or“physical risks”*2 for our company, based on
the framework of the TCFD’s recommendations

Rating importanceCalculating impact• Qualitatively evaluate identified risks andopportunities based on two factors: likelihoodand impact• Use existing climate-related scenarios, etc., toquantitatively grasp the business impact ofimportant risks and opportunities• Study countermeasures to those risks andopportunities that would have a particularly big
impact*1 Risks related to the transition to a lower-carbon economy*2 Risks related to the physical impacts of climate change

Completed

Category

Major risks/opportunities

Subcategory

Levying of carbon taxes

Risk
Opportunity

Policy andlegal

Tightening of new-building
regulations
Strengthening of carbon emission targets
and government policy(CO2 emission allowance regulations, etc.)
Bolstering of government policy
toward renewable energy
Spread of renewable energy/
low-energy technologies

Transition risks

Technology
Improved introduction oftechnologies relating to energy
management
Growth in demand for
low-energy buildings(including ZEBs)

Risk
Risk
Opportunity
Risk
Opportunity

Spread of next-generation
technologies

DAI-DAN REPORT 2022

Medium tolong term

MediumShort tolong termHigh

Medium tolong term

MediumShort tolong term

MediumShort tolong termHigh

Short tolong term

Opportunity

The appearance of needs related to ZEBs and Smart Cities could lead to greater
adaptability toward technological development, etc., leading to more profit.

High

Short tolong term

Risk

A slow response to changes in the way the industry is structured or in investment inequipment toward the goal of a carbon-free society could lead to fewer orders.

High

Short tolong termHigh

Short tolong term

MediumMedium tolong termHigh

Short tolong termHigh

Short tolong term

Opportunity
Opportunity

Changes in investor and bankbehavior(Increase in ESG investment)

Risk

Changes in appraisal bycustomers

Risk

Opportunity

Reputation

57

MediumTime period*

Adapting to new energy management technologies could improve our competitiveness,leading to more orders.

Opportunity
Increase in demand forrenovations

Demand for low-energy, renewable energy, ZEBs, etc., could grow, leading to moreorders.
If we were unable to respond adequately to the tightening of regulations, accreditation
systems, and low-energy standards for new buildings, we would lose orders.
To reach new targets, costs for buying carbon credits or for emissions trading would
rise, and if we were unable to reach those targets, our reputation would be negatively
affected.
The introduction of policies relating to renewable energy could lead to greater
investment in the construction of renewable energy facilities, leading to more orders.
A slow response to new low-energy and renewable energy technologies could lead to adrop in our competitiveness, leading to fewer orders.
A quick response to the development and spread of low-energy and carbon-freetechnologies could lead to us gaining a competitive advantage, leading to more orders.

ImpactMediumto highOpportunity

Changes in customer behavior
MarketCosts involved in business activities or installations could rise.

Opportunity

If our technical capabilities could simultaneously achieve low-energy, health benefits,
comfort, and intellectual productivity, orders could increase.
Greater demand for renovations could require the use of our equipment diagnosis
technologies and encourage further technical development, leading to more orders.
Growth in demand for infection countermeasures could further promote technicaldevelopments relating to ventilation and air conditioning to combat infection, leading tomore orders.
Insufficient information disclosure about our decarbonization efforts could lead to a
reduction in our reputation and trust from financial markets.
Efforts toward a carbon-free society and proactive information disclosure could lead togains in our reputation and trust from financial markets.
An inability to gain praise from society for our decarbonization efforts could lead to aloss in trust from the markets and fewer orders.
Decarbonization efforts and their recognition or accreditation could lead to gains in trustfrom customers.

High

Short to long
term

High

Short to longterm

Opportunity

Frequent occurrences of torrential rain could result in the flooding of construction sites,
leading to project delays and repair costs.
Higher demand for moves away from areas where rivers are at risk of flooding could
lead to more orders.

Mediumto high

Short to longterm

Opportunity

Droughts resulting from lower rainfalls or similar could result in growth in demand forwater recycling systems and water-saving technologies, leading to more orders.

MediumMedium tolong term

Frequency and severity ofabnormal weather(typhoons, heavy rain, etc.)

Risk

Rise in average temperatures(summer)

Risk
Opportunity

Greater demand for work to strengthen cooling capabilities could lead to more orders.

Changes in rainfall patterns
Changes in demand resulting
from normalization of abnormal
weather

Opportunity

Risk* For time period, “short term” refers to a period between one and three years; “medium term” is between three and ten years; and “long term” is more than ten years.

3.

Risk management

With the formulation of our risk management policy,
our goal is to minimize risk associated with ourbusiness, and this end is also furthered by our Risk
Management Committee, who identify and evaluatemajor risks by making an overall judgment after
considering frequency, threat level, and other factors.
For climate-related risks and opportunities, theSustainability Committee’s TCFD Task Force is at theheart of our efforts, judging the importance ofclimate-related risks and pinpointing and rating theimpact of risks and opportunities on our business. It
also reports on the progress of these efforts to theBoard of Directors.
Moreover, we have created a system whereclimate-related risks are appropriately reflected in ourrisk management process via sharing the content of
discussions by the Sustainability Committee with the
Risk Management Committee.

Board of Directors
Supervise/instruct

ReportRepresentative
directors

Report/refer

Supervise
Information
sharing

Sustainability Committee

Risk Management
Committee

Deliberates on policies andmateriality connected tosustainability topics such as climatechange, and investigates andpromotes information disclosure, etc.

Corporate Planning
OfficeChair: President
Members: Head of the Corporate
Planning Office, Head of the
Quality, Environment andSupply Chain Division, Head of
the General Administration
Division, Head of the Technical
Division, Head of theInnovation Division

Sustainability Promotion
Department

Planned■Climate-related risks and opportunities
Type

Time period*

More frequent, more severe rain and typhoons could damage our offices, sever lifelines,
and delay work, leading to higher business operation costs.
Growth in demand for building systems that are resilient to natural disasters liketyphoons and heavy rain could lead to more orders.
Rising average temperatures could raise health risks for workers at construction sites,
as well as lowering productivity and leading to a shortage of engineers.

Sustainability Initiatives

Sustainability Initiatives

We recognize that climate change is an important issue for our business, and so we identify climate-related risks and opportunities
from short- to long-term perspectives and evaluate their potential impact. We organize the climate-related risks and opportunities
based on information from outside bodies, etc., and proceed to designate and evaluate these. The chart below shows the major
climate-related risks and opportunities that we have pinpointed. In the future, we will use the 2°C or less global temperature rise
scenario and other concepts to continue to analyze these and we plan to both calculate the scale of climate change’s impact on ourbusiness and to study countermeasures. The findings of this analysis will be reflected in our efforts toward contributing to acarbon-free society, which we identified as an area of materiality.

Chronic

ImpactMajor risks/opportunities

Subcategory

Promoting Sustainability

Promoting Sustainability

Strategy

Physical risks

As part of our efforts to make society more sustainable, we established the Sustainability Committee (chaired by the president) below
the Board of Directors to devise business strategy toward ESG and sustainability and deliberate on related initiatives. The committee,
which is scheduled to meet twice or more a year, discusses our response to materiality—our business strategy, including how wereact to climate change—as well as our efforts toward the risks and opportunities it throws up. The results of these discussions
reported and referred to the Board of Directors; under this system, the Board of Directors provides oversight. To act as across-departmental organization under the committee, we created the TCFD Task Force, and are enhancing our information
disclosure in accordance with the TCFD’s recommendations. The person ultimately responsible for how we deal with climate change
is our president, who is at the heart of our efforts to respond to climate-related risks and opportunities and to promote information
disclosure based on the TCFD’s recommendations. The president also leads the Risk Management Committee, which provides
overall risk management, and the two committees share information so that perspectives related to climate change are reflected in
our management of risk.

2.

Category

Sustainability Initiatives

4.

Metrics and targets

We have selected contributing to a carbon-free society as one of our areas of materiality, and as such we wish to appropriately
assess the risks and opportunities presented by climate change. To that end, we formulated medium- and long-term quantitative
targets and we are now promoting activities to achieve those.
In terms of reducing our CO2 emissions, we have set ourselves the target of a 46% reduction in Scope 1 and 2 emissions fromfiscal 2013 levels by 2030. In fiscal 2021 we have already achieved a 40% reduction due to efforts such as rebuilding our offices as
ZEBs, switching to virtually 100% renewable energy sources, and promoting the introduction of environmentally friendly vehicles
such as hybrid cars. We are also actively working on ZEB-related projects, and in fiscal 2021 we received eight ZEB orders.
In order to achieve our fiscal 2030 targets, we aim to make greater use of renewable energy and research and develop installationand design technologies that can contribute to decarbonization. Through such efforts we hope to make society more sustainable
and also raise our corporate value. We are currently still analyzing our Scope 3 emissions but we plan to disclose information in fiscal
2023.
Materiality

Contributing toa carbon-free society

KPI

TargetFY2021

Reduce greenhouse gas (GHG)
emissions (Scopes 1 & 2)

Long-term target: FY2030
Reduce 46% from FY2013 levels

Reduced 40% from FY2013 levels(FY2021: 3,747 t-CO2)(FY2013: 6,235 t-CO2)

Increase cumulative total of
projects (no. of orders andgross floor area) related to ZEBs

Disclose cumulative total for gross floor area as
one of the indicators we monitor

Cumulative total for FY2021–23: 40

8 orders
Gross floor area: 323,910 m2

DAI-DAN REPORT 2022

58

Environmental Initiatives
We believe it is our mission to contribute to the emergenceof a society committed to global environmental
sustainability.

Environmental Conservation Initiatives■Our Environmental Management System: FY2021 environmental targets and results
FY2020 performance

FY2021 performance

Identify and reduce Scope 1 (direct emissions)*1.

1,783 tCO2

1,761 tCO2

Identify and reduce Scope 2 (indirect emissions)*2.

2,213 tCO2

1,986 tCO2

Identify and reduce Scope 1 + 2 (intensity).
Greenhouse gas emissions per ¥1M in net sales

26.6 kgCO2/¥1M

24.7 kgCO2/¥1M

Identify and reduce power consumption.

4,422,585 kWh

5,203,342 kWh(Portion of that derived from renewable resources)(100,397 kWh)(644,252 kWh)

Reduce greenhouse gas emissions from offices.

1,637 tCO₂

1,330 tCO2

Max. 1,600 tCO₂

○

94.1%

97.5%

Min. 97%○

Main target or item to be monitored

Greenhousegases

Increase percentage of environment-friendly
vehicles in company fleet.

Waste

Water resources

Promote Scope 3 Category 11*3 emissions reduction
proposal.
Proposed reduction in CO2 emissions by design proposal

34,079 tCO2

Promote Scope 3 Category 11 emissions reduction proposal.
Contribution to reduction in CO2 emissions by adoption ofdesign proposal

20,494 tCO2

16,275 tCO2

Identify and reduce total discharge of industrial waste.

6,493 tonnes

10,037 tonnes

Identify and reduce industrial waste buried as landfill.

885 tonnes

938 tonnes

Identify and reduce general waste discharged from offices.

103 tonnes

96 tonnes△

Min.
22,000 tCO2△

■Greenhouse gas emissions■Industrial waste sorting rate

Scope 1

Scope 2

（tCO₂）
10,000
8,000
6,000
4,000
2,000
0

Office emissions% of environment-friendly
vehicles in corporate fleet

87.1%

All waste(tonnes)
15,000

97.5%

94.1%

12,000

6,235

89.2%

9,000

2,600

3,926
1,997

29.3%
3,635 1,842

1,529

1,929

3,996
2,213

3,747
1,986
1,761

1,783

3,000
0

58,690 m3

63,432 m³(Portion of that consumed by offices)(12,287 m3)(12,742 m³)

0.390 m3/¥1M

0.419 m³/¥1M

48.9%

46.5%

Min. 50%△51.7 tonnes

48.4 tonnes

Max. 51 tonnes○

Min.
4.3/job site

*2 CO2 emissions from secondary energy (electric power) consumption

○

86.4%

86.4%

1,182
FY2017797
FY2018

Sorting rate

90.7%
10,037

8,251

6,871

6,000

1,330

FY2021

FY2020FY2019FY2013

1,637

88.4%

Landfill waste

10,9166,493
1,124
FY2019885

938

FY2020

FY2021

Green purchasing

Design proposals that achieve CO2 reductions

We have five key areas of green purchasing activities—
low-energy and high-efficiency equipment, environmentallyfriendly materials, materials and equipment with extended service
lives, equipment with little impact on air quality, and equipmentwith minimal water consumption—and we have determined thatfor these we should be promoting the sourcing of environmentallyfriendly products and services (green purchasing). We are actively
making green purchasing proposals for customers and in fiscal
2021, our green purchasing rate reached 46.5%.

In the design stage, we are actively making low-energy
proposals for customers, particularly for the technologies that
we ourselves have developed, and in this way, we areendeavoring to reduce the amount of CO2 produced duringbuilding operations.

■Green purchasing■Design use CO2 reduction targets and results

Total component purchases(Million yen)
90,00042,682

0

48,76019,107FY201752,36522,424FY201841,94524,430FY2019TargetGreen purchasing rate (%)

48.9%

46.7%

46.0%

44.8%

30,000

Green purchases

46.5%
52,397

20,522
FY202024,354FY2021(tonnes)
30,00020,00020,00010,000022,75515,000
10,634FY2017

Quality and Environmental Management System

Identify and reduce water consumption.

*1 CO2 emissions from gas, kerosene or gasoline consumption*3 CO2 emissions from operating installed equipment

DAI-DAN REPORT 2022

Min.
36,000 tCO2

4.8/job site

Increase green purchasing rate.

At Dai-Dan, we promote the sorting of waste at all our
installation sites. Throughout fiscal 2021, we produced
10,037 tonnes of industrial waste, of which 90.7% was sorted.
Furthermore, we encourage reducing and sorting waste at our
offices. In fiscal 2021, our offices produced 96 tonnes ofgeneral waste.

60,0004.2/job site

Reduce consumption of copy paper by offices.

59

Assessment

Promote sorting of industrial waste.
Increase number of industrial waste sorting categories
per job site.

Identify and reduce water consumption (intensity).
Water consumption per ¥1M in net sales
Other27,131 tCO2

FY2021 target

Our current active efforts include reducing the amount ofenergy consumed at our offices and the introduction ofenvironmentally friendly vehicles. In fiscal 2021, we switched
the electricity used at 19 sites in Japan—including our head
office, branch offices, and other offices—in turn to power thatcomes from virtually 100% renewable energy sources.
We also managed to reduce the amount of greenhouse gas
emissions produced by our offices in fiscal 2021 to a level 28%
lower than our emissions in fiscal 2013. Despite a rise in theamount of energy consumption that we record due to theaddition of electricity used in development activities, progress
made in switching to renewable energy and to environmentallyfriendly vehicles meant that our overall fiscal 2021 greenhousegas emissions fell by 40% compared to fiscal 2013 levels.

Quality and Environmental Protection Policies“As a building services engineering and installation provider, we continually take on the challenge ofcreating value for our clients while contributing to the development of a better environment and stronger
communities;” in keeping with these management principles, we ensure our business practices contributeto quality and environmental preservation. Moreover, with the goal of improving customer satisfaction, weare contributing to the emergence of a society committed to a sustainable environment.
1. We aim to gain wide recognition from society for our corporate sustainability initiatives.
2. We strive to contribute to social development and environmental preservation by complying with laws and norms of society regarding quality
and environmental standards as well as regulations established by our company.
3. While working to strengthen our field capabilities and improve productivity, we strive to improve the skills of our employees and strengthen
our partnerships with subcontractors to provide assured quality.
4. We are dedicated to developing, proposing, and applying technologies that help to reduce environmental impact and promote the effective
use of resources and energy.
5. Through our corporate initiatives, we will contribute to the mitigation of climate change, the conservation of water resources, and waste
reduction while conserving biodiversity and protecting ecosystems.
6. We, as a good corporate citizen, carry out environmental and social contribution activities as well as positive information disclosure, toenhance communications with society.
7. We publicize our quality and environmental targets internally and continue to strengthen them in order to improve the results of our initiatives.

FY201825,000

Environmental Initiatives Environmental Conservation Initiatives

Environmental Initiatives Environmental Conservation Initiatives

We positioned “Contributing to a carbon-free society,” as an area of materiality (material issue), and so we are working to both reducegreenhouse gas emissions and encourage use of renewable energy.
The biggest contribution that we as a company can make to bring about a more sustainable society is to provide building systems
that has little environmental load. To that end, we are actively advancing our proposal-making activities. It is also vital that we reduce
the environmental load that is produced as part of our business activities and so we are making efforts to save energy and minimize
resource use at both our offices and installation locations.
We think it is important to continue our ongoing efforts to prevent fluorocarbons from escaping into the atmosphere where theycause global warming, to reduce and sort the industrial waste we generate, and to reduce our water consumption and protect water
resources. Dai-Dan also maintains ISO 14001 certification at all business sites in Japan, conducts activities to raise awareness ofenvironmental protection amongst our workforce and cooperating companies, and contributes to greater efforts to achieve SDGs andpreserve biodiversity.

Efforts to sort industrial waste

Promoting Sustainability

Promoting Sustainability

Efforts to reduce the environmental load of our business activities

Efforts to reduce greenhouse gas emissions

Result15,000 20,494 22,000
16,275

14,968FY2019FY2020

FY2021

Efforts to protect water resources
As part of efforts, we are introducing
water-saving equipment at our offices.
Furthermore, at our job sites, we use unit
piping, and we are striving to lower the amountof water needed to clean out the piping.
We are working diligently to identify andreduce the amount of water we consume
ourselves, but we also encourage customers
to effectively use alternative water resources
through proposals on using rainwater,
wastewater and equipment that cuts backon water usage.
DAI-DAN REPORT 2022

60

Donations

Partnering with Hosting Communities
We undertake a variety of initiatives to make contributions to the industry and community in
our position as a responsible corporate citizen.

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.

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.

Social contribution activities
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.

■Forest maintenance, tree planting, and flower planting
Site

Dissemination of technical information to external parties

Activity

Chiba Branch

Town Open Garden Operation

Innovation Division

Miyoshi Green Support Squad

In order to contribute to the development of Japan’s building services industry, we support the running of industry organizations andacademic conferences, and we also dispatch lecturers to external organizations. In particular, our engineers are dispatched to external
training centers and educational institutions across Japan as lecturers to provide classes on building service technologies.

■External organization memberships and positions

Publication of the DAI-DAN Technical Current News(as of September 2022)

Organization

Position

Air-conditioning & Plumbing Contractors Associations of JapanChair

The Society of Heating, Air-Conditioning and Sanitary Engineers of Japan

General Director

Institute of Electrical Installation Engineers of Japan
Japan Electrical Construction Association
Association of Japan Instrumentation Industry

General Director
Advisory committee
memberAdministration
council member

Japanese Association of Building Mechanical and Electrical Engineers

General Director

Association of Building Engineering and Equipment

General Director

Japan Architecture Facilities Inspection Association

General Director

Japan Electrician Association

Vice Chair

Construction Industry Transaction Improvement Organization

General Director

Public Buildings Association

General Director

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 ofexperiments, assessment methods
and analysis results using charts andimages.
The 116th edition was publishedin September 2022. Copies of these publications are donatedto the National Diet Library.

as lecturers■Other activities
Activity

Organization

Position· Simple method to measure the amount of carbon film remaining within
phosphorus-deoxidized copper soft tubes

We posted traffic safety guards.
(Tokyo Head Office and Nagoya Branch)

Nichiban Core
Eco Project

We participated in Nichiban Core Eco
Project involving “Collection of discarded
tape cores to protect the green earth.”
The funds are used to plant mangrove trees.
(Chugoku Branch, Kyushu Branch, General
Administration Division, and Innovation
Division)

Donation of
emergency
reserves

We donated food and drink we no longer
needed due to switching out emergency
supplies to charity groups. The donateditems were then distributed to welfare
institutions and organizations and toindividual people in need.
(Tokyo Head Office, Nagoya Branch,
Osaka Head Office, and Chugoku Branch)

Sendai
Beautification
Support Program

We have joined in with the Sendai
Beautification Support Program, a new
system that works to beautify the city
through a partnership between citizens,businesses, and local government. As aparticipant, we have been involved in both
periodic and continual efforts at roads,
parks and other sites managed by the city,
including cleaning and weeding activities.
(Tohoku Branch)· Planning concept and technologies installed for Dai-Dan’s Hokuriku Branch Office
Kanto Gakuin University

Part-time lecturer

Kogakuin University

Part-time lecturer

Toyo University

Part-time lecturer· Operational results of solar power generation at enefice Hokkaido· Actual measurement results of the thermal environment at enefice Hokkaido· Examples of biophilic design in use in office environments· Effects of equipment systems that encourage rest or stimulation· Methods to simulate building exterior air flows

Osaka Piping Higher Training School

Lecturer· Methods to predict the effectiveness of spot air conditioning used to counter hightemperatures in factories· Introducing technologies that can interpolate CFD results using convolutional neuralnetworks· Methods to predict comfortable temperatures in systems that visualize room interior
environments· Methods and examples of combining the cloud-based monitoring control system
REMOVIS with other systems

61

DAI-DAN REPORT 2022

Activity

Details

Eco-cap Project

In fiscal 2021, we collected 139,690 caps,
used as a source for reprocessed plastic
that is converted to money and donated tocauses that provide medical support,
vaccines, assistance for people withdisabilities, and children’s environmental
education.

Charity Calendar

In January 2022, we collected 1,712
calendars and notebooks from across thecountry and put them to use in support
activities after regional disasters such as theheavy rain damage in the west of Japan.

Japan Deaf
Football
Association

Dai-Dan has a Silver Sponsorship agreementwith the Japan Deaf Football Association(JDFA) in support of their vision and activities
for realizing a true society where the hearing
impaired and those not can play soccer/
futsal together.

Details

Traffic Safety
Guard Activity· Usage examples of tools that visualize installation processes· New methods to fill holes after inserting vertical piping through floors/ceilings■Company-wide activities

Miyoshi Green Support Squad

Articles■Organizations to which Dai-Dan employees are dispatched

Letter of gratitude fromthe Changi Airport Group

Partnering with Hosting Communities

Partnering with Hosting Communities

Assistance through the Dai-Dan Society
Activity Fund

Promoting Sustainability

Promoting Sustainability

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

Dai-Dan contributes financial support for various causes to help create andbuild 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 sponsoring of community events in areas across the country
where our sites are based.
In agreement with the appeal by Singapore’s Changi Airport Group to
support medical treatment, we have donated toward medical support activities
in Indonesia. Changi Airport Group’s most recent support activities haveincluded the supply of 1,380 oxygen concentrators, which are used to support
treatment for those with respiratory illnesses.

Training wear for the Japanese national team bearing the Dai-Dan logo
(Dai-Dan is a JDFA sponsor)

Traffic safety guards

DAI-DAN REPORT 2022

62

PICK UP

Planting the Idea of Dai-Dan Forests
Forests absorb CO2, support biodiversity, and lead to more abundant water resources. There is therefore a great affinity
between our supporting the development of forests and our corporate slogan of being “Inspired by Light, Air & Water.”
We also recognize that the value of forests as society tries to become more sustainable. We have now signed agreements
between our head office and branches (eight sites) and local authorities. In the future we hope to up this number toten sites, and will move forward with activities to develop forests.

Signing ceremony in Kumamoto

Signing ceremony in Saitama

Signing ceremony in Shiga

Okayama
Other signatory: Yakage Town
Forest site: Yakage, Yakage-cho, Oda
District
Site: 1.6 haLength of agreement: 10 years
Activities: Tree planting and thinning

Ishikawa

Hokkaido

Other signatory: Ishikawa Forestation
Promotion Association
Forest site: Osaki Area, Kahoku
Site: 0.52 ha
Length of agreement: 5 years
Activities: Tree planting (initial andsupplemental) and weeding

Other signatory: Hokkaido Ishikari
Promotion Bureau
Forest site: Domin-no-Mori, Kamuishiri
Area (Suigen-no-Mori)
Site: 1.0 ha
Length of agreement: 10 years
Activities: Tree planting and thinning

PICK UP

Other signatories: Kumamoto Pref.,Yunomae Town
Forest site: Inokakura,
Yunomae-machi,
Kuma District
Site: 10.61 ha
Length of agreement: 5 years
Activities: Tree planting and thinning

Saitama
Other signatories: Saitama Pref.,Saitama Pref.
Agricultural andForestry Public
Corporation
Forest site: Ushizawa, Shukuya,
Moroyama-machi, Iruma
District
Site: 4.55 ha
Length of agreement: 5 years
Activities: Tree thinning and branch
pruning

Shiga

DAI-DAN REPORT 2022

In the town of Moroyama, in Saitama Prefecture, on July 24, 2022, we held
our first activities at Dai-Dan Forest Saitama. Clear, azure skies provided
the backdrop to lectures given by members of the Saitama Prefecture
Agricultural and Forestry Public Corporation as 18 employees helped thin thetrees. They got a real experience of the work of a lumberjack, using tools likesaws and pulleys. All this hard work in the forest built up an appetite for thebarbecue that followed,
where employees couldsocialize. In the future,
we would like to havefamily members andsubcontractors join us
for these activities.

Dai-Dan is cheering on Nozomi Tanaka!
Since 2021, we have been a corporate sponsor for Nozomi Tanaka, a
track-and-field athlete affiliated with Toyota Industries. Nozomi has gained
attention as a promising young athlete, one of the next generation ofchampions, who represents Japan in athletics (middle- and long-distancerunning). The sense Nozomi gives off so strongly of being someone who
surpasses conventional wisdom to continue taking on the world in differing
areas, overlaps with our own corporate image, as seen in our long-term
vision, Stage 2030, in which we aim to tackle new stages and create newvalue. It was only natural, therefore, that we became one of her sponsors. We
will support her athletic activities and also cheer her on with all our might!

Major achievements:◆ Japanese record holder

for 1,000 m, 1,500 m(indoor and outdoor),and 3,000 m◆ Tokyo 2020 Olympics:

8th place in 1,500 m
Competed in 5,000 m

Presenting Nozomi with a bonus at our Tokyo Head Office

Kumamoto

63

On July 9, 2022, we held our first tree planting festival at Dai-Dan Forest
Hokkaido, a memorable milestone. Under summery blue skies, employees
and their families (17 kids and adults in total) took part and planted
200 trees from 5 species—Glehn’s spruce, Japanese emperor oak,Mongolian oak, Manchurian ash, and Amur maackia. After building up a
sweat planting, participant enjoyed a barbecue in Kamuishiri Area, in
Domin-no-Mori. It wasa nice opportunity fora rare touch of nature,
and we all look forward
to seeing the trees
we planted grow in
the future.

Dai-Dan Forest Saitama

Partnering with Hosting Communities Planting the Idea of Dai-Dan Forests

Partnering with Hosting Communities Planting the Idea of Dai-Dan Forests

PICK UPPICK UP

Promoting Sustainability

Promoting Sustainability

March 23, 2022
© Kumamon, Kumamoto Pref.

Dai-Dan Forest Hokkaido

KagawaMie

Other signatories: Kagawa Pref.,Miki Town, Miki
Town Kamiyama
Property District
Council
Forest site: Inokakura, Miki-cho,
Kita District
Site: 2.85 ha
Length of agreement: 5 years
Activities: Tree planting, and nurturing
post-planting

Other signatories: Mie Pref. Agriculture,
Forestry and Fishery
Division, Komono
Town
Forest site: Chikusa, Komono
Site: 6.5 haLength of agreement: 5 years
Activities: Tree planting, path
construction, and thinning

In October 2021, to celebrate her achievements, we held a ceremony topresent Nozomi with a cash reward at our Tokyo Head Office.
The ceremony was attended by Nozomi, her coach Katsutoshi Tanaka,and three of the members of the Tokyo Athletics Association who first
introduced us to Nozomi: Chairwoman Akemi Masuda, Chief Director
Kazunori Hiratsuka, and Secretary
General Koji Morita.
First, President Fujisawa congratulated
Nozomi on her achievements andpresented her with her award, which was
followed by a celebratory speech by
Chairwoman Masuda, who gave Nozomi abunch of flowers.

From left: President Fujisawa, Chairman Kitano, Nozomi Tanaka,
Katsutoshi Tanaka, Chairwoman Masuda, Chief Director Hiratsuka

Check out our new adverts featuring Nozomi!
― No matter how cutting-edge a building, without the right equipment it doesn’t come to life ―Other signatories: Shiga Pref., Koka
City, Shiga Pref.
Forestry Public
Corporation
Forest site: Sugitani, Konan-cho, Koka
Site: 12.56 ha
Length of agreement: 5 years
Activities: Tree thinning and removal

Comparing equipment to
the human body
(Japanese only)

DAI-DAN REPORT 2022

64

Valuing Our Employees
Respect for everyone, support for work-life balance.

Employees are hard at work, demonstrating their personality and abilities
Even as society diversifies, we are developing working environments where employees can show off their individual personalities andcapabilities, regardless of their gender, age, nationality, or other characteristics.

Promoting female participation

Work-Life Balance and the Work Environment

Action Plan

Comment from a female manager(April 1, 2021–March 31, 2026)
TargetTo raise the average career length
for women by 15% or more

TargetTo raise the proportion of
female managers by 1% or more

1
2

Efforts to extend retirement age
Step Up Training
Lecture on development technologies at the Technical Research Laboratory

Approach to environmental maintenanceOur goal is a working environment defined by ease-of-use and good health where every employee can demonstrate their full potential.
Through reform to work styles, we will achieve a better work-life balance and appropriate labor environment. Our fundamental
approach is also to respect the diversity of our employees, employ workers to match their abilities, develop their capabilities, andimprove the system to offer them fair opportunities for advancement.

As part of our efforts to reform work styles, we revised our
personnel system and from fiscal 2021 we have extended theage of retirement to 65, and started to offer continuous
employment until the age of 70. In order to respond to revisions
to the government’s Act on Stabilization of Employment ofElderly Persons and Japan’s low birthrates and aging society,we plan to tap into the vital asset that elderly workers present,
while also securing and fostering younger employees. With theassumption of a career that extends to the age of 65, we arereviewing how we position different levels of qualifications andattendant salaries, and we are also planning to raise thestandard of salaries for younger employees.

When I first heard from my boss that I would be managing ateam in the Technical Management Department, I naturally
spent every day worrying whether I could handle a team of
more than ten people under me. When I finally took up therole, though, I realized that everyone is a beginner at first, andall I could do was get on with the job. With the help of thosearound me, I managed to get to where I am now. Even now, I
still make mistakes because I’m a new section manager, butthat I’ve been able to work through those is entirely the resultof the support of the people I work with: my bosses,
higher-ups, colleagues, subordinates, and others besides.
Female managers are still fairly rare in this company, but
I’ve never felt that anyone thinks I can’t do something
because I’m a woman. The system being put in place offers
women more career choices, and I
hope that seeing me in my position will
push other female employees to thinkthat they too can climb the ladder andtake on the challenge of management.

Partnering with Hosting Communities Work-Life Balance and the Work Environment

Partnering with Hosting Communities Work-Life Balance and the Work Environment

Based on the concept that people are our biggest asset, wefoster a corporate culture that promotes human resource
development. Our aim is to develop the knowledge,
techniques, and other capabilities needed to achieve ourcorporate goals, and the fundamental policy of our humanresource development is to instruct and train sincere, talented
workers for the construction industry.
Our training is made up of three parts: on-the-job training(OJT), off-the-job training (OFFJT), and self-development (SD).

Promoting Sustainability

Promoting Sustainability

Approach to human resource development

On June 1, 2018, we were awarded the Eruboshi mark with two stars for our exemplary record as awoman-friendly workplace under a certification program based on the Act on Promotion of Women’sParticipation and Advancement in the Workplace (APWPAW).
More recently, in April 2021, we formulated a new action plan based on the APWPAW. We are
implementing a wide range of initiatives aimed at ensuring employees have a healthy work-life balance,
as seen through such trends as the rise in both women and men taking childcare leave these days.

Yuri Osada, Manager
Management Section, Technical Management
Department, Tokyo Head Office

Health & Productivity Management recognized by METI in 2022
Now, for the third year in a row, we have once again been recognized as an
Outstanding Health & Productivity Management Organization (large enterprise
category) in fiscal 2022.
Under the umbrella of the Well-Being Promotion Committee, we formed healthpromotion committees on the corporate and divisional levels, and worked with thecompany’s group-managed health insurer to encourage healthy, safe workplaces.
This fiscal year, we renamed the committee as the Well-Being Task Force, and willfurther promote its activities with consideration to its work and results. The company is
responsible for its employees’ health, and so to further develop the company, we aim
to keep in mind our contribution to the society of the future, increase the percentageof employees who get personal health issues checked and provide health education.
Going further, we will promote original health and welfare-based business activities
within the company, improve how we perform in health scoring reports, and keep
implementing activities that allow us to acquire recognition as a Safety and HealthSuperior Enterprise. Through these and other efforts, we aim to create an environmentthat ensures that employees not only do not get ill, but that they have the motivation toenergetically take on their jobs.

65

DAI-DAN REPORT 2022

Leave system
We offer our employees a variety of leave options so that they
can refresh themselves and lead rewarding lives.
This includes a structured holiday system with the five paid
holidays a year mandated by the Labor Standards Act such as
three additional days-off in August separate of summer break.
Employees are allowed to take seven days off in a row, butmust schedule these holidays at the beginning of the fiscal year
so that holidays are taken in turn.
Moreover, persons who have been with the company for along time are rewarded with travel coupons for their years ofservice, in addition to receiving allotted holidays.

■Major leave systems (excluding statutory paid annual leave)
Type of holiday

Details

Summer holiday

3 consecutive days in summer (July – Sep)

Refresh leave

7 consecutive days (annual)Long service leave

10 years: 3 days
30 years: 7 days

20 years: 5 days
40 years: 5 days

Congratulatory or
condolence leave

Predetermined number of days foroccasions such as weddings■“Refresh leave” take-up rate
Fiscal year

Rate

FY201995.2%

FY202098.6%

FY2021

98.5%

In fiscal 2019, the corporate leave*systemwas changed so that
contracted workers and part-time
employees could take time-off torefresh themselves like regular
employees.

DAI-DAN REPORT 2022

66

By creating an environment in which all
employees can work with ease and employees
can balance work with childcare, we areworking towards our goal shown on the rightby devising an action plan in line with the “Acton Advancement of Measures to Support
Raising Next-Generation Children” so that all
employees can exercise their abilities to the full.
As a childcare service that allows a flexible
response to employees’ diverse work styles,
we are also implementing shared use forcompany-led daycare facilities in thecompany-led childcare business put forward
by the Cabinet Office, which aims to support
the raising of children and eliminate theproblem of infants waiting for childcare places.

Employee training at Dai-Dan begins with our program for new
recruits and continues with specialized training as employees
develop their careers.
Our training program for new recruits combines introductoryand basic engineering for a six-month training course. Introductory
engineering training involves learning the necessary basic
knowledge about equipment installation (electrical and mechanicalwork), the company’s main business line, and over the course of aperiod of one month, employees come to comprehend an overview
of equipment installation and get real-life experience through facility
tours, etc. During basic engineering training, employees spend fivemonths gaining the basic knowledge of specialisms needed to dotheir work. During this period of training, as well as classroom
Beginner-level technical training
learning and learning how to create blueprints, employees haveopportunities to see, touch, and do. Through these training activities, we are working to ensure employees have the knowledge andtechniques they need, and to improve their ability to create blueprints—which is at the heart of being a technician—to forge them into
an asset ready to be put to use.
After this combined training, new employees spend a further six months training to learn about job site liaison tasks (processes,
safety, work contents, creation of installation blueprints, etc.), which brings new employees’ year-long training to an end.
Separate to the level-based training that all employees receive, we also conduct occupation-specific training. After beginner-leveltechnical training specialized for technicians (related to development technologies, improvement of installation blueprint creation
capabilities, etc.), we carry out further training for technicians to step up to intermediate and advanced technician positions. Other job
roles (in sales or office work) also learn the basics of our technologies, then through training specific to sales roles or office roles andon-the-job training, trainees can gain the flexibility and broadened horizons to do a wide range of tasks.

Action Plan
(April 1, 2020–March 31, 2025)
Target1

To improve the workplace environment to ensure that childcare
leave is easy to take and the staff easy to return〈Action〉While the plan is in effect, Dai-Dan will use corporate bulletin boards and otherinformation tools to inform employees about childcare leave and restrictions on
overtime and late night work under the Childcare and Family Care Leave Act, paidchildcare leave under the Employment Insurance Act, and maternity leave under
the Labor Standards Act.

Target2

To increase the number of men employees taking childcare
leave to at least 7%〈Action〉Dai-Dan will introduce a program that makes it easier for men to take childcare
leave and effectively increases the number that do during the plan period.

Target3

To introduce work options that offer greater flexibility
to the way people work

〈Action〉Dai-Dan will expand its exceptions on irregular working hours and shortened work
schedules, introduce teleworking as a regular work option, and take other action
during the plan period to ensure employees have time to care of children.

Initiatives to address mental health issues

Health promotion initiatives

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 the
Industrial Safety and Health Act and recommend to anyone
with a high stress level to see a physician. Moreover, follow-up
interviews are done after the stress tests, as part of providing agood workplace environment. As well as stress tests, we carryout employee satisfaction surveys to quantify and visualize
employee motivation.

Our health insurer, theDai-Dan Health Insurance
Association, introduced ahealth information sharing
service, Pep Up, in April
2021. The online service
displayspersonalized
information such as health diagnosis results, medical
expenses, and medicine records for each employee and family
member, and distributes health articles based on these. In theyear since the service launched, the registration rate has
exceeded 95%, and it has become a pillar of our healthpromotion activities.
Sports events, e-learning, and other measures are also beheld as part of these initiatives. Our Dai-Dan Health Insurance
Walking Rallies, for both individuals and team, have now been
held four times, and 1,050 people have taken part. Specifichealth guidance also uses this system, and going forward we
will further promote employee health.

Mental health seminar

67

Fiscal year

Employee satisfaction(4 being the highest)

FY20202.54

FY2021

2.52

DAI-DAN REPORT 2022

Details of a walking rally

Partnering with Hosting Communities Work-Life Balance and the Work Environment

Partnering with Hosting Communities Work-Life Balance and the Work Environment

Employee training

Promoting Sustainability

Promoting Sustainability

Supporting the balance between work and homeSound relationship between labor and management
The Dai-Dan Labor Union was established in 1973 and in August 2021 entered its 49th year. During that time, the union has been active
pushing for better working conditions and working environments.
Dai-Dan holds periodic discussions with the union, which enables active dialogue and builds and maintains relationships between
labor and management.

Updated uniforms
As part of our activities to celebrate 120 years since our founding, we have renewed the uniforms worn by employees who work at job sites
across the country.
We updated the uniforms to be both more functional and stylish with a concept based on tradition and innovation in a leading style. The
aim was also to allow wearers to flexibly adapt
to reformed ways of working. This was the firstrenewal of the uniforms for 33 years, anduniform ideas where studied—and finallydecided—by the Uniform Renewal Committee,
made up of younger employees and under thesupervision of art director Yoshihide Oka (fromD-Style), who is well-acquainted with, andpassionate about, uniforms. From January 1,
2022, the new uniform was simultaneously
rolled out, but, considering the standpoint of
the SDGs, the old uniforms were collected andwill be reused to create recycled polyester
New uniform fuses tradition and innovation
products.

DAI-DAN REPORT 2022

68

Respect for human rights
In accordance with our human rights and labor policies, we are promoting management that respects human rights, even as the natureof society diversifies. In addition to educating new employees, we run educational activities throughout the group focused on protecting
human rights.
The Human Rights Due Diligence Task Force is working to identify what sorts of human rights risks are presented by our businessactivities in the value chain or in society more generally. In this, its first fiscal year of operation, the task force’s scope of activity covers (thegroup’s) bases and subcontractors in Japan.
By respecting the individuality of each person, and actively working to build an environment where they can demonstrate their fullpotential, we will help to resolve social issues through our business activities.

Foundations for Value Creation

Promoting Sustainability

Start of the SMILE 2024 Project to solve the problem of long working hours!

Partnering with Hosting Communities Work-Life Balance and the Work Environment

SMILE 2024 Project meeting

For us, rectifying the problem of overly long working hours is an urgent
issue. Previously, we have implemented measures to combat this, butthey have varied by site. That is where our SMILE 2024 Project comes
in—by starting the project, we will continually build up the expertiseneeded to work efficiently and have team members help one another,rather than each person trying to manage alone. By doing so we will rid
ourselves of this problem. The project will focus on the following threeareas.

Foundations for Value Creation
71

Changing awareness company-wide

Eradicating the construction industry mindsets of giving up with the mistaken belief
that things cannot be changed or seeing long working hours as a given

Implementing measures to raise productivity

Imagining and implementing improvements to work processes from a zero base, orusing ICT

Monitoring

Linking of targets and action plans into the sharing of results and improvements

Moving forward with this project, we established the Work Style & Human Rights Task Forces under the Sustainability
Committee, and the task forces started activities in April.
In fiscal 2022, we plan to implement a change in awareness, trial measures led by trial teams, and the establishment of thefoundations needed for our initiatives. Then, from fiscal 2023 onward, our plan is to roll out specific efforts to reduce workloads
and invigorate communications to the entire company.

■Project activities for the first half of fiscal 2022
Activity

69

Details

First company-wide questionnaire

Hold an awareness and behavior survey for all employees

Meetings on how to reduce amount of work

Hold meetings with section managers and job site representatives to get proposals to reduce
the amount of work, and investigate their implementation

Measures to invigorate communications

Have trial teams devise trial measures

DAI-DAN REPORT 2022

74
74Interview with an Outside Director

G(Governance)

Fair and Transparent Business Practices
Corporate Governance79

Directors and Auditors

81

Compliance (Legal Compliance and Corporate Ethics)

83

Risk Management

85

Meeting Customer Expectations

85

Quality Improvement Initiatives

86

Initiatives with Subcontractors

86

Sectional Committees

87

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

88

Application of the Meister Program and Establishment of Partnerships
with Our Subcontractors across Japan89

Launch of the Subcontractor Portal

DAI-DAN REPORT 2022

70

Interview

How do you rate
the effectiveness of
the Board of Directors?

Interview with an Outside Director

Long-term Strategies

Improvements so far have been positive,
and in the future, I hope to see greater
effectiveness in terms of medium- tolong-term, non-financial themes.

Fumio Matsubara Outside Director

determine the efficacy of its Board of Directors, and theresults of the questionnaire are analyzed by the Board of

Pursuing the essence of the SDGs, andreflecting that in the Mid-Term Management
Plan and the long-term vision, will lead tosustainable growth and value creation.

Interview with an Outside Director

Interview with an Outside Director

Dai-Dan carries out self-assessment questionnaires toFoundations for Value Creation

Foundations for Value Creation

Will Lead Us to a Turning Point

What is your opinion ofStage 2030, our long-term
vision, and Preparation Stage,
our Mid-Term Management
Plan, which were launched infiscal 2021?

Independent Officers—which comprises myself, my two

What do you consider to be the role stakeholders expect of you
as an outside director?
As an outside set of eyes, I want to be a check on management,
but also to bring differing perspectives to help improve management and business.

Dai-Dan is a company that has always had one eye on theissues are identified. This year, 2022, was the fifth time wefuture, refining its technical capabilities and creating value.

have done this.

However, with the setting out of mid-term management

In previous evaluations, we have identified a variety ofplans that focus on a distant goal, in 2030, the company’s

topics: the early distribution of materials in advance ofmanagement plans have become clearer, both to employees

meetings of the Board of Directors, the move away fromand stakeholders. I have seen that it is now much easier toprinted materials for the aforementioned, the narrowing

see what Dai-Dan is going to do going forward—how eachdown of agenda items by delegating authority for businessplan’s strategies will last three years and will step up over the

execution, information sharing at Executive Committee

course of three phases and how this all ties in to themeetings (whose members include executive directors andlong-term vision.

corporate officers), and how to enhance the response to

The age where a company could get by only focusing on

stakeholders such as ordinary shareholders and investors.

creating profit and other economic value is over. Now, thereThat so many of these have been improved year on year andare loud calls for management to pay heed to SDGs issues,reflected in management is something I am very impressedsuch as the environment and society. Even when theby.

long-term vision and Mid-Term Business Plan were being

At Dai-Dan, I am one of three outside directors, and between

level best to get to the bottom of problems by coming atFurthermore, to maintain the effectiveness of the Board

drawn up, there were lively discussions that tried to pin down

us we have a great deal of knowledge and expertise, fromthem from a different angle. This is especially importantof Directors, it is necessary for outside directors to be able tothe essence of the SDGs, and this approach is notably

many years at different companies or in different industries

when evaluating risk. The size and impact of risks vary by

fully comprehend the business, and I am pleased to say that

present in the final articles. Their formulation is, I think, aor even government, as well as specialist qualifications.

whether they are risks associated with core, existing

Dai-Dan is implementing some excellent initiatives to provide

turning point, even in a corporate history stretching back 120

Based on this knowledge and experience, we takebusinesses or whether they are risks connected to opening

opportunities to deepen our understanding, including factory

years.

multifaceted, outside perspectives, and give our candid

up new business areas, which necessitates certain new

tours, direct reports of audit findings, and the ability to sit on

We live in a period of dramatic change, yet by continuing

views or advice on Dai-Dan’s management strategies andchallenges. As such, this is somewhere we can help byat the General Managers’ Meetings—which are attended by

to hold steadfast to long-term viewpoints, Dai-Dan canplans.

providing

general managers from across Japan—as an observer.

achieve sustainable growth and value creation.

I recognize, also, that we are called on to help improve

71

fellow outside directors, and two outside auditors—anddiverseperspectives

based

on

our

own

experiences.

That said, I think that discussions by the Board of
Directors would benefit from a greater awareness of

the running of the company and its business activities by

In addition to our role as advisors, I am also conscious

exchanging ideas with the executive directors, who haveof our vital role as outsiders to provide a check onsustainability

extensive backgrounds in building services engineering andmanagement. I believe that stakeholders expect the Board

strengthening the monitoring of such medium- to long-term

installation provision and a high degree of knowledge on theof Directors’ management and check functions to bethemes, I believe that the Board of Directors could be evensubject. Specifically, we are often the ones to get the ballsufficiently separated, and also for us to perform our roles

more effective.

rolling at meetings of the Board of Directors, and we do ourwith more of a medium- to long-term, broader perspective.

DAI-DAN REPORT 2022

and

other

non-financial

factors.

By

DAI-DAN REPORT 2022

72

Interview

Fair and Transparent
G Business Practices(Governance)

In order to ensure the sustainable creation of corporate value, we seek to improve andstrengthen our corporate governance system in a sustainable manner.

Can you give a brief summary of your expectations for
Dai-Dan and any other thoughts?

Corporate GovernanceOur approach to corporate governancecomfortable lives, even in a society that is ever-more diverse

frontlines at each and every job site that will propel Dai-Dan’sand complex. Since this is an age in which companies are

future performance. Therefore, I would like to see the current

called on to implement sustainability-focused management,

attitude of putting job sites first valued, and more energy put

Dai-Dan’s business of providing society with ZEBs and otherinto investing in personnel. I also feel that the company is not

equipment technologies that consider the environment is

an excessively hierarchical organization—it is now the caseperfectly positioned to help lead the drive toward sustainability.

that even negative news from the job site is quickly passed on

I have great expectations that Dai-Dan can contribute to theto management. I think this has become more and moresustainable

important in this day and age, now that remote working hassustainable growth.

taken hold.

ofsocietythroughits

Under its management principles—to take on the challenge

to actively meet face to face, but I would like to see moreof creating value for our customers while contributing to theopportunities for dialogue between the company anddevelopmentabetterenvironmentandOur 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

own

Since the outbreak of the pandemic, it has been difficultof

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.

Fair and Transparent Business Practices Corporate GovernanceInterview with an Outside Director

I believe that it is the capabilities and hard work of those on thedevelopment

Foundations for Value Creation

Foundations for Value Creation

Through the sustainable growth it can achieve by continuing to prioritize job sites andstrengthening investment in personnel, Dai-Dan can contribute to the development ofa sustainable society.

strongerstakeholders—including employees—and by taking part incommunities—Dai-Dan is steadily honing its skills and building amanagement from a wide range of viewpoints, I hope to fulfill

track record of accomplishments.

my role as an outside director.

Dai-Dan Corporate Governance Guidelines
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.

As a company that creates value in spaces, its duty is tocontinue delivering environments that enable to live safer, more

Our corporate governance system
The objective of Dai-Dan’s corporate governance system is to ensure appropriate and efficient managementby maintaining discrete decision-making, oversight, and administrative functions, thereby enabling swift andappropriate deliberation and implementation of decisions. We adopted a corporate auditor system andeffectively utilizes the following managerial structure.

Executives(excl. outside)

Outsideexecutives

Board of Directors

ProfileFumio Matsubara
Outside Director
April 1973

Entered the Ministry of Construction(now the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT))
July 2004 Director, Development Bank of Japan
July 2006 Director-General of the Land and Water
Resources Bureau, MLIT
April 2008 Director, Mizuho Research Institute Inc.
July 2011 Lawyer, Dai-Ichi Tokyo Bar Association(current position)
June 2015 Director, Dai-Dan (current position)73

DAI-DAN REPORT 2022

The Board of Directors comprises nine directors, three of whom are outside directors (including one female outside director). It
convenes monthly and holds special meetings as necessary. In addition to overseeing business operations, the board deliberates onimportant matters related to corporate management, including subjects discussed in Executive Committee meetings. Our articles ofincorporation provide that the Board of Directors should consist of 12 people or fewer.

DAI-DAN REPORT 2022

74

Compliance Promotion Office

Board of Independent Officers
The Board of Independent Officers consists of three outside
directors and two outside auditors. Its role is to exchange
information and share knowledge from an independent, objective
standpoint, and to evaluate the effectiveness of management, inparticular the effectiveness of the Board of Directors.

Independence Criteria for Outside Directors
The Independence Criteria for Outside Directors were formulated in
December 2015. For more details on the criteria, please see theseparate Dai-Dan Corporate Governance Guidelines.

The Compliance Promotion Office comes under the direct control of the chairman, and is independent of the headquarters and offices;it collaborates with the Compliance Committee in planning, drafting, and implementation to help ensure that our business activities
comply with the Antimonopoly Act and other relevant laws and regulations. This office also collaborates with the Internal Audit Officeand continues to monitor compliance activities in our offices.

Risk Management Committee
Board of Auditors

Foundations for Value Creation

Foundations for Value Creation

The Board of Auditors comprises four auditors, two of whom are outside auditors. It is headed by one of the standing (outside)
auditors who is elected by the other auditors. As a rule, the Board of Auditors meets once a month and otherwise whenevernecessary. The Board of Auditors discusses and decides on important matters related to auditing such as auditing policy, audit plans
and who actually conducts audits.

The Risk Management Committee’s usual role is to deliberate suitable measures related to risk management and discuss the statusof operations. Should a crisis occur, however, it takes action to manage the danger. The committee also makes periodic reports to
the Board of Directors.

Sustainability Committee
Executive Committee

Fair and Transparent Business Practices Corporate GovernanceFair and Transparent Business Practices Corporate Governance

The Executive Committee meets whenever necessary and consists of the representative directors, and directors and corporate
officers elected by the Board of Directors. Members discuss and determine a broad range of important matters concerning Dai-Dan
and its group companies like business policy, management strategies and business in general. They also provide advice for making
decisions and, whenever necessary, go before the Board of Directors.

The Sustainability Committee was established with the aim of studying and promoting sustainability initiatives for Dai-Dan and its
group companies. The committee, which is chaired by the president, handles the following matters.
• Identifying responsibilities and business strategies aimed at making society more sustainable• Planning and promoting CSR, environmental, and social contribution activities• Promoting measures to improve information disclosure outside the company and external evaluations for ESG activities

Internal audits
As part of our internal audit system, we established the Internal Audit Office under the direct control of the president, and its role is toevaluate the assets and business operations of Dai-Dan and its group companies from the perspective of suitability and efficiency. It
also investigates and appraises the effectiveness of our internal control system for financial reporting.
Moreover, as well as sharing information and opinions with one another, the office works with our auditors and accounting
auditors to verify its auditing and to ensure our internal audits are implemented efficiently. As well as reporting the findings of audits tothe president, it also reports directly to the Board of Directors and Board of Independent Officers, which is composed of outside
directors and outside auditors.

■Corporate governance system (as of September 2022)
Shareholders’ Meeting
Appoint

Appoint
Audit report

Appoint
Audit

Auditors/
Board of Auditors

ReportDirectors/
Board of Directors

AdviseAdviseAppoint

Board ofIndependent Officers

Nominating and Remuneration Committee

Dismiss(Outside directors and outside auditors)

Composed of the representative directors and three outside directors, the underlying principle of the Nominating and Remuneration
Committee is that the majority of members will be outside directors. The chair of the committee is selected from the members who are
outside directors.

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 chairman, and is responsible for raisingawareness of compliance among executives and employees and educating them on the subject. It also makes active use of a hotline
for reports of compliance or other violations, to discover and rectify issues as quickly as possible.

Refer

ReportAppoint

Collaborate

Collaborate

ReportRisk Management Committee

Nominating and Remuneration Committee members will be involved in thefollowing matters and, where necessary, advise the Board of Directors.
1. Succession planning (representative directors)
2. Skills matrices
3. Validity of remuneration tables for directors and corporate officers
4. Validity of personal evaluations for executive bonuses
5. Candidates for selection as corporate officers

Collaborate

Sustainability Committee

The Nominating and Remuneration Committee discusses and presents on the following to
the Board of Directors. These reports will involve at least half of the committee’s members.
1. Nominations for the position of representative director (selection)
2. Dismissal of representative directors
3. Proposals for the position of director (appointment, non-reappointment, dismissal)
4. Formulation and revision of regulations pertaining to remuneration for directors andcorporate officers

Collaborate

Internal Audit Office

Advising the Board of Directors

Supervise

Business execution

Accounting auditors

Reporting to the Board of Directors

Nominating andRemuneration
Committee

Representative
directors

Compliance
Committee

Executive Committee(Discussion of important matters)

Instruct/report
Collaborate

Directors &corporate officers

Compliance
Promotion Office

Headquarters/
Branches/Offices

Plan/draft

Affiliate companies

HotlineReportWhistleblow Instruct

Audit

Consult
Plan/draft

Legal Compliance Support Committee

75

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

76

Policies and procedures to appoint and dismiss directors and the president
To ensure the effectiveness of the Board of Directors, when considering candidates to become directors, we think about the balanceof expertise needed to cover all business areas. Candidates are selected by the Board of Directors based on the principle of having
diverse individuals each in the right place according to their knowledge and capabilities connected to corporate management andadvancing business activities. These candidates are then referred to the Shareholders’ Meeting. Should a director, in the course of hisor her duties, commit some kind of violation or neglect his or her work, and this be found unbefitting of a director of the company, theBoard of Directors will decide to dismiss the director, and will refer the matter to the Shareholders’ Meeting. The Nominating andRemuneration Committee deliberates on proposals for the appointment and dismissal of the representative directors and appointment
of directors, and then reports on these to the Board of Directors.

④ Total compensation for directors and auditors
Unit: Million yen
Fixedcompensation
Total
compensation

Variable compensation

Pecuniary compensation
Basic
compensation

BonusesNon-pecuniarycompensation
Share-based
compensation

No. ofindividuals
in receipt

Directors (excl. outside directors)

375

259

115

13

6

Outside directors

45

45

—

—

5

Auditors (excl. outside auditors)

29

29

—

—

2

Outside auditors

31

31

—

—

3

Director and auditor compensation

Compensation for directors (excl. outside directors)

Evaluating the effectiveness of the Board of Directors

Compensation for outside directors and auditors
Compensation, etc., for outside directors and auditors will consist of basic compensation alone, in order to improve their ability tosupervise management. The amount of basic compensation for auditors will take into account individual auditors’ duties and will be
determined in consultation with auditors.
② Compensation breakdown

Basic compensation: 70%

Bonuses: 25%

Share-based compensation: 5%

Calculation method
The basic compensation provided to directors consists of compensation in line with the individual director’s position, and compensation adjusted
for their executive duties. The levels of these are set by the Board of Directors, after verifying that they are appropriate based on the findings of athird-party survey, and the objective advice of the Nominating and Remuneration Committee.
The performance indicators used to determine performance-linked compensation, and the calculation method, use each year’s achievement rate
toward the targets for operating profit—a KPI—laid out in the Mid-Term Management Plan. Under the remuneration system that we haveintroduced, the level of individual contribution to performance and the condition of profit are other factors that are taken into account to determine
the amount of performance-linked compensation. The levels of compensation and ratios are set by the Board of Directors, after verifying that they
are appropriate based on the findings of a third-party survey, and the objective advice of the Nominating and Remuneration Committee.

Performance-linked
compensation

77

DAI-DAN REPORT 2022

Each year, the chair of the Board of Directors, as the person responsible, carries out an evaluation of the Board of Directors to assess
its overall effectiveness.
Directors do individual self-assessments for both themselves and for the board as a whole, and the results of these are analyzed
and rated by the board while referring to exchanges of opinions with the Board of Independent Officers.
The results of the evaluation conducted in February 2022 show that the Board of Directors’ composition and debates are appropriate,
and recognize that it is functioning effectively overall, that it has established an environment for discussions using remote meetings,
enhanced its advance sharing of necessary information through clever ideas, and is running things efficiently. A future issue will be topromote studies and improvements to training for the Board of Directors to meet the latest management challenges.

Internal control system③ Compensation overview

Basiccompensation

When directors or corporate officers are first appointed, they take part in training sessions given by specialists. The aim of thesesessions is to give the new directors and corporate officers an understanding of their roles, duties, and responsibilities, and furnish
them with a knowledge of corporate legal matters.
After their appointment, we provide directors and corporate officers with a range of seminars. These might include seminars given
by outside specialists on topics such as the Antimonopoly Act, the Companies Act, or corporate governance, or seminars by outside
experts to provide useful information on management or on the social and economic situation.
Taking into account demands from society, such as revisions to laws, or the desires of directors or corporate officers, we offer support
by providing or introducing training opportunities that the individual requires, and support for those expenses. For independent outside
directors and independent outside auditors, when they first take up their positions, we provide explanations of our management
principles and management policies; an overview of our business, finances, and organization; and matters relating to corporate
governance. Where necessary, we also take the new appointees on tours of our major sites, including our R&D facilities.

Fair and Transparent Business Practices Corporate GovernanceFair and Transparent Business Practices Corporate GovernanceCompensation, etc., for directors (excl. outside directors) is part of an incentive plan that aims to help achieve the Dai-Dan Group’s
goals, and the fundamental policy is as follows.
· The purpose of our remuneration system will be to:Establish a strong link between compensation and the company’s business performance, while also being highly transparent
and objective
Raise awareness of contributions made to medium- to long-term performance improvements and increases in corporate value· The chief aim is to increase shared awareness of profits with shareholders and ensure management is focused on theshareholders
Based on this fundamental policy, compensation, etc., for directors (excl. outside directors) will comprise three elements: basic
compensation, bonuses, and share-based compensation. To ensure that evaluations of directors and decisions on compensation are
fair and transparent, compensation will be determined by the Nominating and Remuneration Committee after deliberation.

■Compensation ratios

Foundations for Value Creation

Foundations for Value Creation

Training policy for directors① Policy on determining director and auditor compensation

Bonuses

The basic payout amount for bonuses is set by multiplying a standard amount, based on the individual’s position, by a payout rate that isbased on the degree of achievement toward the group’s overall operating profit target. The payout rate differs for representative directors
and other directors: For the former, the resulting amount is multiplied by a rate based on orders received, net sales, and operating profit
for the whole group. For the latter, the resulting amount is multiplied by a rate based on both the group’s overall performance and on
individual performance for each position—the performance of the division, etc., that they are responsible for. (excl. outside directors)

Share-based
compensation

After multiplying a share-based compensation standard amount, based on the individual’s position, by a payout rate that isbased on the degree of achievement toward the consolidated group’s operating profit and profit attributable to owners of theparent, the resulting amount is divided by the base share price to calculate a number of points. Shares are then paid to the ratioof one share to one point. (excl. outside directors and individuals not resident in Japan)

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 and includes the execution of tasks by directors in compliance with laws andthe articles of incorporation as well as appropriate performance of all tasks. In addition, we confirm the operational status of thecompany’s internal control system each fiscal year and report our findings to our Board of Directors while continuing to revise andimprove this system in order to improve efficiency and legal compliance.

Internal control system for financial reportingIn April 2008, we implemented an internal control system for financial reporting under the Financial Instruments and Exchange Act.
The Internal Audit Office under the president examines and assesses the effectiveness of the system.
The fiscal 2021 assessment concluded that, as of the end of fiscal 2021, our internal control system for financial reporting iseffective. An independent auditor also provided a similar opinion.

DAI-DAN REPORT 2022

78

Directors and Auditors· FY2021 attendance: (Board of Directors: BD /Nominating and Remuneration Committee: NRC /Board of Independent Officers: BIO )Directors

OutsideAuditors

22%

Outside(female)11%

Directors (excl. outside)

67%

Outside50%

Auditors (excl. outside)

50%

Foundations for Value Creation

Foundations for Value Creation

OutsideIchiro Fujisawa

Takayuki Ikeda

Masaharu
Takitani

Hideshi Osaki

TomoyaTsubota

Representative Director

Representative Director

DirectorStanding Auditor

Standing Auditor

Auditor

April 1979
April 2018

April 1979
April 2018

April 1985
April 2020

April 1976

April 1981 Entered Dai-Dan
June 2016 (Standing) Auditor, Dai-Dan(current position)

April 1974 Entered Dai-Dan
June 2020 Auditor, Dai-Dan (current position)

Entered Dai-Dan
Representative Director, Chairman,
and Corporate Officer, Dai-Dan(current position)• Time as a director: 13 years• BD … 16/16 (100%)
NRC …
2/2 (100%)

Entered Dai-Dan
Representative Director, President,
and Corporate Officer, Dai-Dan(current position)• Time as a director: 13 years• BD … 16/16 (100%)
NRC …
2/2 (100%)

Entered Dai-Dan
Director, Senior Managing Corporate
Officer, General Manager of the WestJapan Division, and Representativeof the Osaka Head Office, Dai-Dan(current position)• Time as a director: 7 years• BD … 16/16 (100%)

Entered The Sanwa Bank, Ltd.
(now MUFG Bank, Ltd.)
June 2016 (Standing) Auditor, Dai-Dan(current position)• Time as an auditor: 6 years• BD … 16/16 (100%)• BIO … 14/14 (100%)

Fair and Transparent Business Practices Directors and Auditors

Fair and Transparent Business Practices Directors and Auditors

Shohei Kitano• Time as an auditor: 2 years• BD … 16/16 (100%)• Time as an auditor: 6 years• BD … 16/16 (100%)

Skills matrix
OutsideDirector

April 1973

April 1990 Registered as a lawyer
June 2021 Director, Dai-Dan (current position)

April 1976

• Time as a director: 7 years• BD … 16/16 (100%)• NRC … 2/ 2 (100%)• BIO … 14/14 (100%)

DAI-DAN REPORT 2022

• Time as a director: 1 year
• BD … 16/16 (100%)• NRC … 2/ 2 (100%)• BIO … 14/14 (100%)

Entered Mitsubishi Chemical
Industries Limited (now Mitsubishi
Chemical Corporation)
June 2021 Director, Dai-Dan (current position)• Time as a director: 1 year
• BD … 13/13 (100%)• NRC … 2/ 2 (100%)• BIO … 12/12 (100%)

Others industries

Director

Overseas businessDirector

Auditing

Ikumi Sato

Kenkichi
Kosakai

Legal affairs

Outside• Time as an auditor: 1 year
• BD … 13/13 (100%)• BIO … 12/12 (100%)MarketingOutsideFumio
MatsubaraEntered the Ministry of Construction(now the Ministry of Land,
Infrastructure, Transport andTourism)
June 2015 Director, Dai-Dan (current position)

79• Time as a director: 4 years• BD … 16/16 (100%)

Position

April 1978 Entered Osaka Gas Co., Ltd.
June 2021 Auditor, Dai-Dan (current position)

Risk management/governanceOutsideEntered Dai-Dan
Director, Corporate Officer, andGeneral Manager of the General
Administration Division, Dai-Dan(current position)

Engineering• Time as a director: 2 years• BD … 16/16 (100%)

April 1986
April 2019

Accounting/financesEntered Dai-Dan
Director, Managing Corporate
Officer, General Manager of theTechnical Division, and Person in
charge of the Engineering Division,
Dai-Dan (current position)

Particular areas of specialty or experience
Corporate management/strategy• Time as a director: 2 years• BD … 16/15 (94%)

April 1988
April 2022

Sustainability Committee

Entered Dai-Dan
Director, Senior Managing Corporate
Officer, General Manager of the East
Japan Division, and Representativeof the Tokyo Head Office, Dai-Dan(current position)

Compliance Committee

Name

April 1983
April 2021

Risk Management Committee

AuditorExecutive Committee

Director

Board of Independent Officers

Director

Nominating and Remuneration Committee

Yasuo Kamei

Director

Board of Auditors

Hisao Sasaki

Hirofumi
Kyutoku

Board of Directors

Yasuhiro
Yamanaka

Shohei
KitanoRepresentative
director, chairman,
corporate officer

●

●

●

IchiroFujisawa

Representative
director, president,
corporate officer●●● ● ● ● ●Takayuki
Ikeda

Director, senior
managing corporate
officer●●●

Yasuhiro
Yamanaka

Director, senior
managing corporate
officer

●

●

●

Hisao
Sasaki

Director, managing
corporate officer

●

● ●

Yasuo
Kamei

Director, corporate
officer●● ● ● ●

Fumio
Matsubara

Director (outside)

●

● ●

●

●

Ikumi
Sato

Director (outside)

●

● ●

● ●

●

Kenkichi
Kosakai

Director (outside)●● ●Masaharu
TakitaniStanding auditor(outside)●

Hideshi
Osaki

Standing auditor●

TomoyaTsubota

Auditor●Hirofumi
Kyutoku

Auditor (outside)

●

●

● ●

●
●
●

●

●
●

●
●

● ●

●

●
●

●

● ●

●

●

●

●

●

●
●

●

●

●

●

●

DAI-DAN REPORT 2022

80

Compliance (Legal Compliance and Corporate Ethics)
The whistleblowing and consultation system

In order to ensure that everyone in the group, from management down, complies with all laws and regulations and uses good social
sense in the way they behave, we have formulated the five-point Action Principles and the fourteen-point Action Standards. The Action
Principles summarize the areas that are to be borne in mind during daily tasks.
We have set each April as a Compliance Month with the objective of promoting adherence to the Action Principles and Action
Standards, and as well as encouraging thorough compliance with laws and regulations through messages from management, we arecalling on all executives and other employees to submit a written pledge.

We have set internal whistleblowing regulation and in accordance with those, we operate an internal whistleblowing system.
In line with the revisions made to the Whistleblower Protection Act, in April 2022 we expanded the ways in which employees canwhistleblow, so that it covers Dai-Dan Group executives and employees, but also temporary workers.
With the whistleblowing and consultation system, by putting in place a reporting route independent from the operational chain ofcommand, our aim is to quickly identify job site problems (violations of laws or internal regulations or unethical actions) that would
normally be difficult to uncover.
The internal whistleblowing hotline allows reports to be made to the Compliance Promotion Office, outside directors, and outside
auditors, while the external hotline connects whistleblowers to corporate lawyers. We guarantee in our Corporate Code of Ethics thatthose whistleblowing or consulting for a legitimate reason will not be subjected to unfair treatment. Reports can also be submitted
anonymously to ensure the privacy of the whistleblower.

Foundations for Value Creation■Excerpt from our Dai-Dan Group Action Standards Our Action Standards serve as practical guidelines to the Action Principles on which they are based.

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 with customers
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
and the government
13. Eliminate any dealings with antisocial forces
14. Avoid engaging in self-serving actions

Cases are investigated by the Compliance Promotion Office, and if an irregularity is discovered, it brings in measures to rectify the
problem or prevent reoccurrence. For cases that cause serious damage to the group, or those determined to potentially do so, theCompliance Committee, chaired by the chairman, convenes and deliberates on necessary measures.

■Internal whistleblowing response procedure

Internal point of contact

Report① Compliance cards are distributed to new employees when they enter the company, and must carry them with them on a daily
basis. During their training, too, we use lectures to promote compliance with the Dai-Dan Group Action Standards.
② All employees receive training in stages, and each stage of this training incorporates compliance-related training tailored to thatstage, including on topics such as preventing corruption—including bribery, collusion, or embezzlement—with subcontractors orothers.
③ We also use e-learning several times a year to teach about compliance topics such as the Antimonopoly Act and harassment.
④ The Legal Compliance Support Committee provides all employees with seminars that take as their theme compliance, covering
topics such as the Antimonopoly Act, and preventing corruption—including bribery, collusion, or embezzlement—with
subcontractors or others.
⑤ As part of our compliance monitoring, the Internal Audit Office and Compliance Promotion Office collaborate to twice a year
monitor the compliance activities at each office, and check that work is in line with compliance.

Report on reason

Whistleblower

Compliance education activities

DAI-DAN REPORT 2022

External point of contact○Corporate lawyers* For more details on the corporate governance system, please see page 76.

① Compliance Committee
The Compliance Committee was established, with Dai-Dan’s chairman as its chair, to ensure compliance with laws and internal
regulations, and to strengthen fair and ethical company operations with strong compliance.
② Legal Compliance Support Committee
The committee is composed of external experts and provides support to the Compliance Promotion Office.
③ Compliance Promotion Office
The office works to plan, propose, and implement measures to ensure company operations with strong compliance.

81○Compliance Promotion Office○Outside directors and outside
auditors

No

Investigation complete notification(no correction necessary)No

Investigation and correction
complete notification

Consider necessity ofinvestigation

Yes

Investigation

Consider need forcorrection

Yes

Correction
measures

Complete correction
measures

Measuresto prevent
reoccurrence

Recipient of report (individual or department)

Notification acknowledging receipt

Compliance system

Fair and Transparent Business Practices Compliance (Legal Compliance and Corporate Ethics)

Action Standards

Whistleblowing
hotlineFair and Transparent Business Practices Compliance (Legal Compliance and Corporate Ethics)

Action Principles

Foundations for Value Creation

Dai-Dan Group Action Standards

Register/store
Problem improvement andcheck no unfair treatment

Follow up

DAI-DAN REPORT 2022

82Roles of the Risk Management Committee

Risk Management

During usual operations

During a crisis

Gathers information to control potential or minimal risks that appear
during business activities in each department.

Risk management system

Discusses and decides on necessity of a task force■Risk management system

Information gathering

Representative
directors

Board ofDirectors

Secretariat(General Administration
Division)

Supervision

Risk Management Committee(Committee members)· Head of General
Administration Division· Head of Sales Division· Head of the Technical
Division· Head of the Quality,
Environment and Supply
Chain Division· Head of Innovation Division

Reporting

Risk

Reporting

Collaboration

Redefines risks and reviews controls/monitoring

Sustainability
Committee

1. Identification/recognition of risk

3. Management of risk

Corporate Planning
Office2. Evaluation/measuring of risk

4. Monitors/reports on risk

Compliance
Promotion Office
Divisions

Impact of risk
Impact is defined according to the likelihood of a risk becoming
reality, and the threat level it poses. The Board of Directors is madeaware of the impact of each risk.

Risk

Risk

Business unit/officeMediumLow

Risk Management Policy

Low

At present, the environment in which we and our stakeholders operate is undergoing dramatic change on a daily basis. Ever-greater
diversification and complexity of business activities are unavoidable. Against this backdrop, we must continue to deliver value to all
our stakeholders permanently, and to that end we are carrying out the following.
· Prioritizing human life and safety above all else in our risk management efforts.
· Accurately ascertaining business risks and working to prevent their occurrence.
· For those risks that do come about, responding quickly and appropriately in order to minimize their impact.
We will continuously implement a system that follows this policy, with the goal of the overall optimization of our risk management.

Risk Management Action Guidelines
1. We shall acknowledge that risk management is a vital part of management, and implement company-wide risk management initiatives.
2. We shall recognize potential negative impacts on corporate value improvements as risks before they can occur, and make company-wide efforts toprevent them emerging or minimize the damage if they do.
3. We shall consider the importance and impact of risks that do come about, and disclose information as appropriate.
4. Each division shall accurately recognize risks, carry out suitable reviews, and engage in risk management that reflects reality and changes in thebusiness environment.
5. Each business unit and branch office shall form appropriate measures to ensure risk management initiatives are executed within their organizations.
6. All employees, from management down, shall act with an individual awareness and sense of responsibility toward risk management.

■Primary risks and countermeasures
Risk

Description

Countermeasures

Information leak

Unauthorized use or external leak of information, shutdown or malfunctionof 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 work style reforms. Conduct stress tests.

Legal

Lack of compliance with laws/regulations, corruption, contract violations,insufficient response to changes in regulatory systems

Impart compliance training. Use the whistleblowing system.

Natural disasters

Typhoons, river flooding, earthquakes and other natural disasters

Craft a BCM. Introduce a safety check system.

Workmanship

Safety, degraded quality of installed systems, etc.

Craft a safety and health management plan. Conduct job site patrols.

Trust

Credit recipient in financial difficulty, non-performance on contract
obligations, etc.
Delayed response to climate-related government policies, regulations, or
technologies, insufficient information disclosure, etc.

Take action to manage credit as appropriate. Seek an objective
assessment from an outside institution.
Designate and evaluate climate-related risks and opportunities. Enhance
information disclosure in accordance with the TCFD’s recommendations.

Climate change

83

DAI-DAN REPORT 2022

MediumHigh

Threat level

COVID-19 measures
As part of our response to the COVID-19 pandemic, in 2020
we established the COVID-19 Task Force, which set
countermeasures and provided guidance to the whole group inline with changes to the situation.
Our basic policy is for executives and other employees tofirmly push forward business activities that seek to minimize
infection risk, based on the recommendations of thegovernment’s expert panel—New Lifestyle. Specifically, we
implement the following.
· Having employees work from home or at a satellite office
to reduce office attendance· Staggering office shifts to avoid contacts in public
transportation· Ensuring employees avoid the Three Cs (Closed spaces,
Crowded places, and Close-contact settings)
For employees at construction job sites, measures havebeen introduced in accordance with the Ministry of Land,
Infrastructure, Transport and Tourism’s Guidelines forPreventing COVID-19 Infection in the Real Estate Industry.
For employees who work from home, we have formulated
a set of regulations as well as providing a computer andnetworking gear needed to stay connected, and have taken all
due security precautions.

Initiatives to strengthen information security
As we introduce increasing numbers of cloud services to ourinternal systems, we are putting in place cloud security
services and strengthening our information security. There arealso Information System User’s Guidelines, available to officers
and employees on the corporate intranet, which provide
cautions regarding the use of electronic equipment in everyday
work.
Information security training is conducted via e-learning,and drills are conducted on how to handle targeted e-mailattacks to increase information security awareness andprevent the occurrence of accidents such as information leaks.
Moreover, for the purpose of strengthening information
security at job sites, we have revised Network Building
Guidelines for Job Sites and Information Security Guidelines for
Job Sites, and make sure that countermeasures are
implemented in line therewith. We are also enhancing training
in information security to job site personnel.
Implementation

Fair and Transparent Business Practices Risk Management

Risk

Likelihood

Executives and employees

Risk

High

Fair and Transparent Business Practices Risk Management

Risk

Investigates the risk and response

Internal Audit OfficeInstruction

Risk

After the crisis ends

Foundations for Value Creation

Foundations for Value Creation

In order to continue providing value for years to come, we have built arisk management system to prevent risks from unexpectedly emerging
and to minimize the likelihood of risks that do emerge coming about.
We have established a Risk Management Policy to guide us in the best
direction for managing all of the risks we face.
We have also added a Risk Management Committee as per our
Risk Management Rules. On a regular basis, this committee discusses
matters related to risk management and reports those matters to theBoard of Directors.
Where a crisis does occur, we form a task force as outlined in the
aforementioned rules as part of our crisis control framework tominimize damage or loss. As well as receiving reports, the Board of
Directors’ role is to maintain and oversee this risk management system
and monitor its effectiveness.
Additionally, in order to heighten risk perception and make ourorganization healthier, we periodically train all employees in risk
sensitivity.

Acts to manage the crisis.

Datee-learning

January 2022

Drill on how to handle targeted e-mail attacks

August 2022

Business continuity management
Because of the recent slew of large-scale natural disasters andaccidents around the world, we rebuilt our business continuity
plan (BCP) to function more effectively should the call arise,by reviewing the plan through education and drills, andintroducing PDCA mechanisms that repeatedly pursue
improvements, thus allowing us to wield the plan more like abusiness continuity management (BCM) tool.
In September 2021, we verified the effectiveness of ourmanuals and, with the view of spreading awareness, ran drills
for a hypothetical disaster and damage. These drills highlighted
points that needed
improvement and
we amended themanuals accordingly.

DAI-DAN REPORT 2022

84

Meeting Customer Expectations

Initiatives with Subcontractors

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

Through our activities with subcontractors, we are working to continuallyenhance our technical capabilities and to resolve problems.

Quality Improvement Initiatives

Sectional Committees
Sectional committee activities

At Dai-Dan, reasoning and a strong sense of duty tell us thatproviding sound quality will increase customer satisfaction andtrust. Therefore, in order to provide customer-pleasing quality,
we maintain ISO 9001 certification current for all of ourbusiness sites in Japan and attentively manage the quality of
our services and work, starting with in-depth preliminary
studies before breaking ground and covering our steps along
the way with every imaginable kind of testing. Moreover,education and training are tools we use to ensure good quality
by honing the skills and acumen of our work force andsubcontractors.

Knowing what our customers think of us and our work is an
important first step towards doing a better job, so we probe
customer satisfaction after completing and signing off on every
project. More specifically, we get them to rank our technicalabilities and project management performance on a scale of 4
(4 being the highest) and to explain anything that did not meetwith their satisfaction and any requests they have of us. In fiscal
2021, we collected 568 replies to our customer satisfaction
surveys and earned an average overall rating of 3.61. The
survey is an excellent tool for learning what customers like anddo not like, and improving how we go about business, so wewill continue to use it proactively alongside every opportunity of
direct dialog to communicate with customers on a deeper
level.

To safely deliver high-quality building systems to customers bya date they desire, cooperation that produces a successful
marriage between project engineering and job site skill is
critical. This means that we, as the project planner andmanager, and the numerous subcontractors that do the actual
installation work must think and act as one.
This cohesion is available at every office via a network oftrusted subcontractors with whom we have worked for a longtime, and sectional committees are established to coverthemes such as installation efficiency or work safety.
To meet the demands and expectations of customers, wewill continue to improve our engineering performance in termsof safety, quality, and costs, and organically integrate that into
finished products in conjunction with our subcontractors.

Works Preview Meetings
Throughout our long history we have provided building systems
and services to customers in various industries with diverse
building applications. In order to capitalize on our long trackrecord of installations and our knowledge of customer systems,
we hold Works Preview Meetings for each project with theattendance of the sales, engineering and other specialized
departments concerned. We strive to provide high-quality
systems that best serve our customers from the perspectives offunctionality, quality, cost and energy efficiency.

Building Chart System
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.

Tokyo Head Office Dai-Gen Kai sectional
committees
The overarching theme: How to use DX to promote job sitemanagement, achieve greater installation efficiency, and enhance
technical capabilities

Initiatives with Subcontractors Sectional Committees

Meeting Customer Expectations Quality Improvement Initiatives

Customer evaluations

Foundations for Value Creation

Foundations for Value Creation

Our vision of quality■ Installation Efficiency Promotion Sectional Committee(Electricity & Safety)· Effective use and promotion of tablet apps in quality management· Enhancement of technical capabilities through the use of ICT support
tools for job site tasks· Creation and proposal of new technologies and methods with DX■ Installation Efficiency Promotion Sectional Committee (Plumbing)
Implementation of tools at the job site to improve the efficiency ofplumbing installations and gathering of feedback, to make improvement
and overcome labor shortages■ Installation Efficiency Promotion Sectional Committee(Ducts & Equipment)

The Customer

Use of the cloud-linked camera (Safie Pocket2), to raise safety andquality levels and improve the efficiency of installation management■ Installation Efficiency Promotion Sectional Committee

Customer evaluations
Points made, details shared(Insulation, Coatings & Equipment)

Design & installation tosatisfy needs
High added value
proposals
Achieving pleasant andsafe spaces

Project evaluation meetings, sharing of points to improve on,
improving skill level, workflow and execution

Resolution of problems such as labor shortages and passing down ofexpertise through the investigation and trial of new models for job site
installations and management that introduce tools and methods thatmake use of IT

Nagoya Branch Health, Safety &Technologies Association sectional
committees■ Electricity Sectional Committee

Study seminars for those taking the first-class electrician exam

■ Plumbing Sectional Committee

Practical workshops to acquire first-class technician qualification■Customer satisfaction survey results■ Refrigerant Sectional Committee

4-point scale(4: Satisfied 3: Generally satisfied 2: Somewhat dissatisfied 1: Dissatisfied)
Item
Installer capacity
Installation
management
Creativity andsolution proposals

FY2019FY2020

FY2021

3.52

3.58

3.56

3.48

3.56

3.57

3.51

3.56

3.55

Backup capacity

3.45

3.51

3.49

Overall evaluation

3.56

3.65

3.61

Practical workshops to acquire first-class technician qualification■ Disaster Preparedness Plumbing Sectional Committee
Introduction of SpiderPlus for internal surveys■ Ducts Sectional Committee

No meetings held due to COVID-19■ Insulation & Coatings Sectional Committee
No meetings held due to COVID-19■ Delivery Sectional Committee

No meetings held due to COVID-19

Osaka Head Office Health & Safety
Association sectional committees■ Electricity Sectional Committee

Introduction of products that help with labor-saving■ Cross-sector Study Group (Safety)· Safety patrols to prevent falls before they happen· Varieties and features of tall work platforms■ Cross-sector Study Group (Environment)· Further probe into job site waste· Consideration of work environment improvements through work clothes· Pursuit of employee motivation■ Cross-sector Study Group (Materials & Tools)

Identification and investigation of materials and tools that aid labor-saving■ Cross-sector Study Group (Quality & Labor-saving)
Reduction of repeated quality incidents■ Equipment Sectional Committee

Information on equipment that leads to labor-savings and renovations

Number of surveys completed: FY2019; 662/FY2020; 555/FY2021; 568

85

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

86

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
Maintaining quality assurance through strong partnerships with our subcontractors

Our Policies for Health and Safety“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 thetrust of society.
3. Through diverse work styles and opportunities to play an active role, we shall
aim to improve employees’ work-life balances and support healthier, richer
lives.
4. We shall regularly communicate with subcontractors and encourage them tolaunch and promote self-directed health and safety activities with clear roleassignments.
5. We shall educate all people working for Dai-Dan in our policies for health andsafety and also disclose them to the public.

Health and safety management framework

We conduct risk assessments prior to starting work at all of ourjob sites. We specify aspects of our work that have thepotential to cause harm or damage and decide on measures tominimize those risks, as well as carrying out reviews eachmonth in line with installation progress.

We are developing a health and safety framework that includes
the Central Health & Safety Committee and similar committees
for each of our offices. In the office health and safetycommittees, members are representatives of labor andmanagement. The Central Health & Safety Committee, which
oversees the entire company, takes guidance from thepresident and is chaired by the General Manager of theTechnical Division.

Dai-Dan Meister Program

Safety performance
0.480

0.500

Target

0.420

0.300

Result

0.380
0.300

0.300

0.300

0.300
0.250

0.250

0.240

The number ofaccident-related deaths
and injuries (one or moredays off work)

Total work hours

× 1,000,000

0.200
0.100
0.000

0.020

0.020

0.024

0.020

0.020

Severity rate (severity of accidents)

0.010

0.008

0.016

0.004

0.013

Frequency rate Severity rate

Frequency rate Severity rate

Frequency rate Severity rate

Frequency rate Severity rate

Frequency rate Severity rate

FY2017FY2018FY2019FY2020

FY2021Work days lost
Total work hours

× 1,000

Fiscal 2021 evaluation
Objectives· Ensure three or fewer accidents resulting in a total of one ormore lost work days
· Reduce number of employees not taking sufficient time off
between shifts· Reduce health risks

Key points· Ensuring preventive safety management· Encouraging measures to prevent overworking· Implementing measures to maintain and improve employee
health and to combat the spread of COVID-19

During work-related accidents in fiscal 2021, 42 employees were injured(8 of whom required time off work). This was an increase of 6 employees
from fiscal 2020 (with 4 more requiring time off). The frequency andseverity rate for fiscal 2021 were also much higher than the previous fiscal
year due to the increase in employees requiring time off. Looking at
work-related accidents for the last two or three years, the most notable
increases were for incidents caused by human error, such as a lack offoresight by employees, or among experienced employees due to older
average ages. The total number of injured employees is rising again.
Even if then look at the correlation between reports on close calls andthe occurrence of work-related accidents, we see that those offices thatproactively gather close call reports are those with lower rates of87

DAI-DAN REPORT 2022

Since 2011, we have been fairly evaluating and rewarding
foremen so as to improve job safety, efficiency, and quality,
and secure skilled foremen from our subcontractors.
Within the program, financial aid is given to those who haveacquired high-level certifications to offset the associated costs
and financial incentives are paid to Meisters and Excellent
Foremen for the work they do at job sites of ours, with the aimof developing more Excellent Foremen and High-Level
Foremen, in addition to Meisters.
In July 2022, financial aid was given to 55 individuals, from32 companies, who acquired certification, and cash rewards
were given to 147 Meisters and Excellent Foremen.

Recognizing Meisters
work-related accidents.
The reason for this is
likely that by reporting
close calls (occasions
that were almost
incidents),
reporters
gain a better sense forrisk, and this minimizes
President Fujisawa on a safety patrolthe likelihood of arepeat of human errors.
In fiscal 2022, we aimed to raise the risk awareness of employees andother workers, and reduce the number of incidents, through our close call
activities.
In order to reduce long working hours, we are promoting a range ofmeasures—ensuring workers take a break of at least ten hours between
shifts, introducing a planned annual holiday system, and encourage
extended time off during the Golden Week, summer, and New Year
periods. We also plan to support greater productivity and efficiency byincorporating i-Construction, and make proactive use of wearable
cameras and similar technologies for remote patrols.
The whole group will be working together in fiscal 2022 to improve thefollowing points.
① Ensuring preventive safety management② Ensuring thorough working hour management and encouraging
measures to prevent overworking③ Implementing measures to maintain and improve employee healthIn December 2021, of the foremen working on Dai-Dan job
sites, 814 were selected as High-Level Foremen and 13 as
Excellent Foremen. Those who were evaluated highest, a totalof 3 individuals, were recognized as Meisters.
The Meister Awards Ceremony was broadcast online with
offices around the country and certification was conferred.
We currently have a total of 40 certified Meisters: 12electrical workers, 16 plumbers, 6 duct installers, 4 refrigerant
pipers, and 2 insulation workers.

Comment from a Meister

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

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

0.400

Frequency rate
(frequency of workplace accidents)

Foundations for Value Creation

Foundations for Value Creation

1. We shall utilize “Health and Safety Management Systems” to eradicate allindustrial accidents. We shall endeavor to eliminate risk and hazards in all work
activities, and continuously improve and enhance the health and safety of ourworkplace.
2. In compliance with workplace safety and health-related laws including ourcompany’s internal health and safety management systems regulations, weshall enhance the health and safety standard of our employees and executives,
proactively promote their well-being, and create comfortable and rewarding
workplaces.

Risk assessments

Last December, I was recognized with the prestigious
Dai-Dan Meister certification, a great honor I am very
grateful for.
One factor that I have been focusing on every day forthe last couple of years, considering the rapid spread of
the pandemic, is checking the health of individual
workers. Watching your health is the first step toward
work safety.
The next step is to greet every single person working
on site to build the type of communication needed to geteveryone working as a team and provide the customer
with a better service. I want to place more importance on
creating an environment where it is easy to consult one
another without needing to think about everything alone,where you can check each other’s progress, or eachother’s concerns when problems crop up.
More recently, various companies are focusing theirefforts on the SDGs, but there is much we can do at job
sites. Going forward, I want to concentrate on installation
work that considers the social environment, such as byminimizing wasteful energy or product losses.
As a Dai-Dan Meister, I will be more aware andcommunicate with various workers from this and otheroccupations, and bounce around ideas about the work
and work procedures with liaisons—and sometimes theclient. I also aim to achieve a job site where every worker
can work safely, enjoyably, and efficiently, and go homeat the end of the day safe and sound.
I would also like to teach the young people of the next
generation, giving it my all fromstart to finish, about my own
experiences and about a range
of knowledge and technologies,
to make sure that there are no
accidents at construction sites,
which are changing every day.

Hironori Kozawa
Daiden Construction Co., Ltd.
FY2021 Meister Awards Ceremony

DAI-DAN REPORT 2022

88

Launch of the Subcontractor Portal

DataFoundations for Value Creation

One of our areas of materiality is “Building better partnerships with subcontractors and suppliers.” One way we have strengthened thisis by launching the Subcontractor Portal on our official website.
The aim of the portal is to allow us to share information with subcontractors quickly and further bolster our cooperation. As well as
information on health and safety, the quality environment, technologies, and other topics, we post our notifications there too whennecessary.
As we also provide information on registrations to the Meister system and on our various policies (Procurement policy, Dai-Dan
Group Sustainability Policy, human rights and labor policies, etc.), we believe this will also make a big contribution to two of ourmateriality KPIs: improving the retention rate for Meisters and Excellent Foremen, and increasing the no. of CSR procurementagreement forms collected from subcontractors and suppliers.
We will develop the site as a platform for exchanging information with subcontractors, and by deepening our relationships of trust,
continue to offer building services that are high quality, safe, and have minimal impact on the environment.

Initiatives with Subcontractors Launch of the Subcontractor Portal

Data

Subcontractor Portal top page91

ESG Data

93

Financial and Non-financial Data
(Eleven-year Summary)95

Consolidated Financial Statements

99

Major Financial Information

100

Share Information

101

Third-Party Opinion

Subcontractor Portal member’s page89

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

90

Data

ESG Data

ESG Data
Item

Environment*1■Greenhouse gases

Unit

Scope

FY2017FY2018FY2019Proportion of mid-career hires%

Non-consolidated

―

16

12

18

FY202110

Proportion of female managers%

Non-consolidated

0.9

0.9

0.9

0.9

0.9

■Employee training
Scope

FY2017FY2018FY2019FY2020

FY2021

tCO2

Non-consolidated

4,385

4,508

3,926

3,996

3,747

Total training expenses

Scope 1*2

tCO2

Non-consolidated

1,999

2,045

1,929

1,783

1,761

Scope 2*3

tCO2

Non-consolidated

2,386

2,463

1,997

2,213

tCO2

Non-consolidated

10,63422,755

14,968kg-CO2/
million yen

Non-consolidated

31.9

30.6

tCO2

Non-consolidated

1,663

1,645

Proportion of environmentally friendly vehicles%

Non-consolidated

75.5

82.3

87.1

94.1

97.5

Power consumption

kWhNon-consolidated

4,659,609

4,858,045

3,971,195

4,422,585

5,203,341

kWhNon-consolidated

47,414

48,17670,462

100,397644,252

Scope 3 Category 11*4 emissions reduction(Reduction in CO2 produced during building
operations using our design proposals)
GHG emissions (intensity)(Emissions per million yen in net sales)
GHG emissions from offices

Dataof which, from renewables

Item

Unit

Scope

FY2017FY2018FY2019Million yen

Non-consolidated

58

58

61

76

131

Total training hours

Hours

Non-consolidated

64,50071,946

63,50973,516102,176

1,986

Training hours per person

Hours

Non-consolidated

44.61

48.35

42.14

48.02

64.75

20,494

16,275■Occupational health and safety

24.3

26.6

24.7

1,529

1,637

1,330

FY2021

Unit

Scope

FY2017FY2018FY2019ResultNon-consolidated

0.420

0.240

0.380

0.250

0.480

TargetNon-consolidated（0.300)(0.300)(0.300)(0.300)(0.250)Industry standard*6

Non-consolidated(0.84)(0.68)(0.59)(0.49)(0.36)

ResultNon-consolidated

0.024

0.008

0.016

0.004

0.013

TargetNon-consolidated(0.020)(0.020)(0.020)(0.020)(0.010)Industry standard*6

Non-consolidated(0.25)(0.01)(0.52)(0.01)(0.04)

Deaths (direct employees)

Employees

Non-consolidated

0

0

0

0

0

Deaths (contract employees)

Employees

Non-consolidated

0

0

0

0

0

Frequency rate

Severity rate

FY2020

FY2021

Unit

Scope

FY2017FY2018FY2019FY2020

FY2021

Total industrial waste

TonnesNon-consolidated

10,916

6,871

8,251

6,493

10,037

Final disposal

TonnesNon-consolidated

1,182

797

1,124

885

901

Recycled

TonnesNon-consolidated

9,734

6,074

7,127

5,608

9,136

Item

Unit

Scope

FY2017FY2018FY2019%Non-consolidated

89.2

88.4

86.4

86.4

91.0

Donations to NGOs/NPOs and investment in communities

Million yen

Non-consolidated

33

66

38

33

9

No. of industrial waste sorting categories/job site

Non-consolidated

3.7

4.0

4.2

4.2

4.8

Non-consolidated

0

3

0

0

0

Hazardous waste

TonnesNon-consolidated

28.8

23.5

12.8

16.0

37.3

Consolidated

0

3

0

0

0

General waste from offices

TonnesNon-consolidated

109

113

89

103

96

Item

Recycling rate

■Contribution to social development

No. of violations of labor standards■Water resources
Item

Unit

Scope

FY2017FY2018FY2019FY2020

FY2021m3

Non-consolidated

70,312

59,122

55,761

58,69063,432

Water consumption at job sites

m3

Non-consolidated

56,37245,26841,313

46,40350,691

Water consumption at officesm3

Non-consolidated

13,94013,854

14,44812,287

12,741m3

Non-consolidated

13,94013,854

14,44812,287

12,741

m3/million yen

Non-consolidated

0.511

0.401

0.345

0.390

0.419

Water consumption

Wastewater at offices
Water consumption (intensity)(Consumption per million yen in net sales)
No. of violations of water quality/consumption
standards/regulations

Cases

Non-consolidated

0

0

0

0

0

■OtherUnit

Scope

FY2017FY2018FY2019FY2020

FY2021Cases

FY2020

FY2021Governance■Compliance & risk management
Item
Total political contributions
No. of employees disciplined or fired for corruption,bribery, etc.
Cost of fines/settlements related to corruption, bribery, etc.

Item

Unit

Scope

Million yen

Non-consolidated

3

2

2

0.4

0.6

Non-consolidated

0

0

0

0

0

Consolidated

0

0

0

0

0

Non-consolidated

0

0

0

0

0

Consolidated

0

0

0

0

0

Employees

Million yen

FY2017FY2018FY2019FY2020

FY2021

Compliance reports

Cases

Non-consolidated

5

6

4

4

11

%

Non-consolidated

44.8

46.0

46.7

48.9

46.5

Compliance seminars

Frequency

Non-consolidated

1

1

1

1

1

TonnesNon-consolidated

59.3

58.0

57.4

51.7

48.4

Compliance training e-learning

Frequency

Non-consolidated

1

1

1

2

1

Proportion of offices with ISO 14001 certification%

Non-consolidated

100

100

100

100

100

Risk sense training

Frequency

Non-consolidated

―

―

―

2

1

Money used to pay environmental fines, etc.

Yen

Non-consolidated

0

0

0

0

0

Unit

Scope

Green purchasing rate for equipment used at job sites
Consumption of copy paper at offices*5■Governance
Item

Society

Board of Directors

Board of Auditors■Human rights, diversity, and providing workplaces
Item
No. of disabled employees

Proportion of disabled employees

Proportion of female employees

Job turnover rate
Human rights complaints

DAI-DAN REPORT 2022

Unit
Employees

%

%

%
Cases

Scope

FY2017FY2018FY2019FY2020

FY2021

Non-consolidated

21

22

25

26

26

Consolidated

21

23

26

27

27

Non-consolidated

1.7

1.7

2.0

2.0

1.9

Consolidated

1.7

1.8

2.1

2.1

2.0

Non-consolidated

12.1

12.6

13.1

14.2

15.3

Consolidated

11.9

12.3

12.7

13.8

14.9

Non-consolidated

1.8

1.8

2.2

2.2

3.0

Consolidated

2.4

2.2

2.4

2.6

2.8

Non-consolidated

4

4

4

4

10

ESG Data

ESG Data■WasteItem

FY2020

Data

Unit

Greenhouse gas (GHG) emissions (Scopes 1 & 2)

Item

91

FY2020Board of Independent Officers

Nominating and Remuneration Committee

FY2017FY2018FY2019No. of meetings Non-consolidated

17

18

16

16

16

Participation rate (%)

Non-consolidated

98

99

99

97

99

No. of meetings Non-consolidated

19

16

17

17

17

Participation rate (%)

99

100

100

100

100

Non-consolidated

FY2020

FY2021

3

7

9

8

14

Non-consolidated

100

100

100

97

100

No. of meetings Non-consolidated

―

―

―

―

No. of meetings Non-consolidated
Participation rate (%)

Participation rate (%)

Non-consolidated

―

―

―

―

2
100

*1 Excluding Singapore Branch*2 CO emissions from gas, kerosene or gasoline consumption*3 CO emissions from secondary energy (electric power) consumption*4 CO emissions from operating installed equipment*5 FY2022 target: 47 tonnes or less
*6 Industry standard frequency and severity rates taken from the MHLW’s Survey on Industrial Accidents (equipment installation work (1,000+ employees))22
2

DAI-DAN REPORT 2022

92

Data

Financial and Non-financial Data (Eleven-year Summary)Financial and Non-financial Data
(Eleven-year Summary)Financial Information (Consolidated)

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Net sales of construction contract orders received

119,233

119,980

127,394

131,633

143,503

144,007147,335

158,533

170,121

176,526

183,668

Net sales of completed construction contracts

122,109

121,919

124,445

121,780

138,346

125,253

143,448

155,565

169,229

157,712

162,929

Gross profit on completed construction contracts

12,377

12,742

14,137

14,563

16,713

17,78818,786

19,11121,056

21,521

20,723

Selling, general and administrative expenses

9,684

9,992

9,966

10,016

10,176

11,038

11,40011,45011,993

12,767

13,138Operating profit

2,692

2,749

4,171

4,547

6,537

6,750

7,385

7,661

9,063

8,754

7,584

Ordinary profit

2,736

3,278

4,471

4,857

6,770

6,939

7,674

8,057

9,282

9,262

8,095

Profit attributable to owners of parent

1,175

1,599

1,670

2,921

4,248

4,638

5,109

5,464

6,399

6,318

5,778

Capital expenditures

190

968

90

428

981

1,037

381

850

325

584

1,203

R&D expenses

315

417

430

461

524

663

649

647

778

754

1,076

Depreciation

431

396

419

339

279

426

469

451

458

484

449

Cash flows from operating activities

876

1,261

3,117

2,427

611

5,395

3,320

(13,541)

12,742

14,241(11,718)

Cash flows from investing activities

(397)

(740)

(172)

(401)

(493)

(1,442)

(315)

(232)

(636)

(718)

(873)

Cash flows from financing activities(1,619)

(955)

(892)

(2,344)

(894)

(925)

(1,711)(1,317)(3,240)(3,487)(3,214)

Cash and cash equivalents at end of period

22,63522,42024,59824,35823,536

26,54927,858

12,776

21,616

31,747

16,037

Total assets

103,345

106,155

111,347

113,440

122,312

118,454130,006

120,728

123,049

132,210139,099

Net assets

42,19744,98846,60953,46254,58358,00464,417

66,39067,40974,837

77,242

52.64

71.67

74.91

130.99190.53208.04229.19245.16291.29291.96270.16■Results (Million yen)

Data

Data

Financial and Non-financial Data (Eleven-year Summary)Financial and Non-financial Data (Eleven-year Summary)■Assets (Million yen)■Per share data
Profit (yen)1,887.14

2,010.77

2,081.35

2,387.22

2,438.82

2,593.28

2,882.07

2,970.59

3,101.72

3,491.84

3,603.11

Dividend (yen)

32.00

38.00

32.00

36.00

40.00

46.00

56.00

76.00

90.00

90.00

90.00

Dividend payout ratio (%)

61.6

53.7

43.3

27.8

21.3

22.1

24.4

31.0

30.9

30.8

33.3

Net assets (yen)*On October 1, 2017, we carried out a 2-to-1 reverse stock split of ordinary shares. Figures for fiscal 2016 and before are hypothetical and calculated as though the reverse stock split was
carried out at the beginning of fiscal 2011.

■Management indices (%)
Operating profit margin

2.2

2.3

3.4

3.7

4.7

5.4

5.1

4.9

5.4

5.6

4.7

Equity capital ratio

40.8

42.3

41.7

46.9

44.5

48.8

49.4

54.8

54.6

56.4

55.4

Return on equity

2.8

3.7

3.7

5.9

7.9

8.3

8.4

8.4

9.6

8.9

7.6

Price-earnings ratio

19.5

14.0

14.6

12.5

7.8

10.2

10.2

10.5

10.0

10.1

7.8

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Consolidated employees

1,435

1,445

1,472

1,498

1,493

1,505

1,540

1,600

1,617

1,644

1,727

of which, non-consolidated

1,351

1,364

1,389

1,409

1,411

1,416

1,446

1,488

1,507

1,531

1,578

Non-financial Information■Number of employees

93

DAI-DAN REPORT 2022

DAI-DAN REPORT 2022

94

Data

Consolidated Financial Statements

Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)

FY ended March 31, 2021

(Millions of yen)

FY ended March 31, 2022

AssetsFY ended March 31, 2022

Liabilities

Current assets

Current liabilities

16,065

Notes payable, accounts payable for construction contracts

19,77824,025

Notes receivable, accounts receivable from completed construction contracts and other53,163

68,903

Electronically recorded obligations—operating

10,695

12,047

Electronically recorded monetary claims—operating

10,05015,002

Short-term borrowings

4,449

3,229

374

464

Income taxes payable

1,677

701

1,560

4,416

Advances received on construction contracts in progress

1,367

2,058

(7)

(6)

Provision for share awards

30

26

96,916

104,846

Provision for warranties for completed construction

78

70

Provision for loss on construction contracts

1,604

615

Other

13,202

14,707

Total current liabilities

52,88357,483734

675

Consolidated Financial Statements

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

7,130

8,020

Accumulated depreciation(3,690)(3,739)Buildings and structures, net

3,439

4,281

Machinery, equipment and vehicles

176

158

Deferred tax liabilities

2,492

2,419

(139)

(128)

Retirement benefit liability

1,240

1,251

37

29

Long-term accounts payable - other

5

5

864

893

Other

15

22

Accumulated depreciation

(656)

(694)

Total non-current liabilities

4,489

4,374

Tools, furniture and fixtures, net

208

198

57,372

61,857

1,268

1,280

236

104

Shareholders’ equity

5,190

5,893

Capital stock

4,479

4,479

342

409

Capital surplus

4,837

4,837

Retained earnings

60,10363,946

Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures

Land
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets

Non-current liabilities
Long-term loans payable

Total liabilities
Net assets

Investment securities

17,99815,837

Treasury shares(3,206)(3,166)Retirement benefit asset

10,385

10,628

Total shareholders’ equity

66,21470,097

Other

1,522

1,622

Allowance for doubtful accounts

(145)

(138)

7,446

6,079

Total investments and other assets

29,762

27,949Foreign currency translation adjustment

28

34

35,29434,253Remeasurements of defined benefit plans

942

870

132,210139,099

Total accumulated other comprehensive income

8,417

6,984

205

160

74,837

77,242132,210139,099

Total non-current assets
Total assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets

DAI-DAN REPORT 2022

Consolidated Financial Statements

31,775

Data

Data

Cash and deposits

Costs on construction contracts in progress95

FY ended March 31, 2021

DAI-DAN REPORT 2022

96

Data
Consolidated Statements of Income

Consolidated Financial Statements

Consolidated Statements of Cash Flows(Millions of yen)

FY ended March 31, 2021

FY ended March 31, 2022

Net sales of completed construction contracts

157,712

162,929

Cost of sales of completed construction contracts

136,190

142,206

Profit before income taxes

Gross profit on completed construction contracts

21,521

20,723

Depreciation

Selling, general and administrative expenses

12,767

13,138

Increase (decrease) in allowance for doubtful accounts

Operating profit

8,754

7,584

Increase (decrease) in retirement benefit liability

(43)

26

Interest and dividend income

(349)

(373)

119

98

Non-operating income

FY ended March 31, 2021

FY ended March 31, 2022

9,233

8,312

482

449

(25)

(7)

Cash flows from operating activities

6

12Interest expenses

Dividend income

343

360

Increase (decrease) in allowance for foreign investment loss

(7)—

Rental income from real estate

34

34

Loss (gain) on valuation of investment securities

20

4

Insurance fee income

134

122

Loss (gain) on sale of investment securities

(30)

(364)

Foreign exchange gains

114

135

Loss on retirement of non-current assets

38

142

Other

14

15

Decrease (increase) in notes and accounts receivable—trade

6,675(20,693)

Total non-operating income

647

680

Decrease (increase) in costs on construction contracts in progress

80

(89)

Decrease (increase) in other current assets

513(2,992)98

Decrease (increase) in other non-current assets

23

(10)

Interest expenses

119
2

6

Decrease (increase) in retirement benefit asset

(240)

(363)

Other

18

65

Increase (decrease) in notes and accounts payable—trade

(915)

5,599

139

170

Increase (decrease) in advances received on construction contracts in progress

9,262

8,095

Total non-operating expenses
Ordinary profit

Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities

Extraordinary income

340

690

1,463

558

10

6

Gain on sale of investment securities

51

364

Subtotal

17,388(9,007)

Total extraordinary income

51

364

Interest and dividends received

349

373

Interest paid

(118)

(95)

Extraordinary losses
Loss on retirement of non-current assets

38

142

Income taxes refund (paid)(3,377)(2,989)Loss on sale of investment securities

20—

Net cash provided by (used in) operating activities

14,241(11,718)

Loss on valuation of investment securities

20

4

Total extraordinary losses

79

146

Proceeds from withdrawal of time deposits

27

27Profit before income taxes

9,233

8,312

Payments into time deposits

(27)

(27)

Income taxes - current

2,966

2,009

Purchase of property, plant and equipment(366)(1,154)

Income taxes - deferred

(52)

563

Total income taxes

2,914

2,572

Profit

6,319

5,739

0

(38)

6,318

5,778

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Consolidated Statements of Comprehensive Income(Millions of yen)

FY ended March 31, 2021
Profit6,319

FY ended March 31, 2022
5,739

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

2,312(1,367)

Foreign currency translation adjustment

(10)

0

Remeasurements of defined benefit plans

1,747

(72)

Total other comprehensive income

4,050(1,439)10,3694,299

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

DAI-DAN REPORT 2022

10,374

4,344

(4)

(44)

Consolidated Financial Statements

Consolidated Financial Statements

Guarantee commission

Data

Data

Interest income

Non-operating expenses

97(Millions of yen)

Cash flows from investing activities

Payments for retirement of property, plant and equipment

(6)

(67)

Purchase of investment securities

(104)

(203)

Proceeds from sale and redemption of investment securities

217

774

Payments of loans receivable

(42)

(91)

Proceeds from collection of loans receivable

1

40

Payment for establishment of subsidiary

(195)

(21)

Purchase of shares of subsidiaries and associates

(128)

—

Other payments

(226)

(194)

Other proceeds

132

43

Net cash provided by (used in) investing activities

(718)

(873)

Proceeds from short-term borrowings

38,06033,570

Repayments of short-term borrowings(36,960)(34,370)

Proceeds from long-term borrowings

300

1,100

Repayments of long-term borrowings(1,899)(1,578)Cash flows from financing activities

Purchase of treasury shares

(915)

(1)

Dividends paid

(2,072)(1,935)

Net cash provided by (used in) financing activities(3,487)(3,214)

Effect of exchange rate change on cash and cash equivalents

95

97

Net increase (decrease) in cash and cash equivalents

10,131(15,710)

Cash and cash equivalents at beginning of period

21,616

31,747

Cash and cash equivalents at end of period

31,747

16,037

DAI-DAN REPORT 2022

98

Data

Major Financial Information

Major Financial Information/Share Information

Share Information(As of March 31, 2022)■Fiscal 2021 orders received and net sales ratios by segment
Electrical

Plumbing work
38,447 million yen

Plumbing work
38,982 million yen

work
27,254 million yen

20.9%

Mechanical
work

23.9%

14.9%

Ordersreceived
183,668
million yen

Electricalwork
25,676 million yen

15.8%
Net sales
162,929
million yen

Mechanicalwork

Air conditioning
work
117,966 million yen

156,414 million yen

85.1%

Air conditioning
work
98,270 million yen

137,253 million yen

84.2%

64.2%

60.3%

① Business year

April 1 to the following March 31② Annual general meeting of shareholders

Late June③ Total no. of authorized shares

40,000,000④ Total no. of issued shares

22,981,901⑤ Share unit

100 shares⑥ No. of shareholders

3,867⑦ Listed stock exchangeTokyo Stock Exchange’s
Prime Market(Securities code: 1980)⑧ Shareholder registry administrator

Orders received

200,000

170,121
176,526
183,668
169,229
162,929
157,712
155,565(Millions of yen)
200,000

163,782

158,533

147,335
143,448

150,000

Net sales

143,043
150,000
120,368

123,336

100,000

100,000

50,00050,000

0

0

2017

2019

2018

■Operating profit

(FY)

2021

2020

■Ordinary profit

2017(Millions of yen)

(Millions of yen)

10,0008,000

7,385 7,661

7,584

8,000

6,000

6,000

4,000

4,000

2,000

2,000

9,282 9,262
7,674

2019

2017

2018

2019

2020

0

2021 (FY)

5,109

5,464

5,778

2,000

2017

2018

2019

2020

0

2021 (FY)

2017

2018

2019

2021 (FY)2020■Total assets/Net assets/Equity capital ratio
Total assets(Millions of yen)
150,000
130,006

90,000Net assets

56.4%
54.8%

77,242

74,83767,40966,39064,417

55.4%

54.6%

49.4%

60,000Equity capital ratio

139,099

132,210123,049

120,728

120,000

Other
corporations

11.20%

22.64%

Shares held (thousand shares) Shares held (%)

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

1,749

8.13

Tokyo Daigen Business Stock Ownership Association

1,105

5.14

MUFG Bank, Ltd.

973

4.52

Osaka Daigen Business Stock Ownership Association

818

3.80

Dai-Dan Employee Stock Ownership Association

738

3.43

Yurakubashi Building K.K.

738

3.43

Nagoya Daigen Business Stock Ownership Association

571

2.66

Sanshin Co., Ltd.

559

2.60

Custody Bank of Japan, Ltd.

484

2.25

Mizuho Bank, Ltd.

479

2.23

30,000Standards on the exercising ofcross-shareholding voting rights
In principle, we exercise voting rights associated with all
cross-shareholdings we possess. When doing so, provided
it is to our profit, we approve or oppose agenda items after
close scrutiny on a case-by-case basis into whether it willlead to medium- and long-term improvements to corporate
value and sustainable growth for the company in which wehave invested, whether it could potentially damage our own
corporate value, and whether it could negatively affect thevalue of the shares we hold.

■Changes in value of listed shares
Balance sheet amounts

99

DAI-DAN REPORT 2022

No. of stocks(Millions of yen)

(Stocks)

20,000100
81

15,00013,251

16,402
74

2018

2019

2020

2021

75

63
50

5,000

25

0
2017

14,02410,0002019
0Note: We possess 1,481,537 treasury
shares, which are omitted fromthis list of major shareholders
and not included whencalculating the percentage ofshares held.

Since long-term, stable cooperative relationships with a variety of companies are vital for our sustainable growth, we will
possess shares in companies with which relationships are considered necessary for our sustainable growth, from the point ofview of policy objectives—such as maintaining and strengthening positive business dealings. Each year, the Board of Directors
will consider the medium- to long-term financial viability of individual cross-shareholdings, among other factors, and in cases
where holding the shares is deemed to be largely unprofitable, we will reduce our holdings. The Board of Independent Officers,
made up of outside directors and outside auditors, will confirm these investigations and ensure the perspective of sharing
profit with shareholders is represented.

4,000

0

Foreigncorporations, etc.

2021 (FY)

2020

6,399 6,318
6,000

0.47%

Basic policy on cross-shareholdings

8,095

8,057

Financial
instruments
traders

Cross-shareholdings policy(Millions of yen)
9,063 8,754

2018■Profit10,0008,000

124,228

39.10%

Share Information

Major Financial Information(Millions of yen)

26.59%

Individuals, etc.

Data

Data

■Orders received carried forward

Financial
institutions

Mitsubishi UFJ Trust andBanking Corporation

Major shareholders (ten biggest)■Orders received/Net sales■Breakdown of share ownership

2020

2021

0
(FY)

(FY)

DAI-DAN REPORT 2022

100

Third-Party Opinion

Third-Party Opinion

General Director, Japan CSR Promotion
Association; Director, Kinki Branch

Initiatives related to environmental preservation
In terms of Dai-Dan’s response to the environment, it has
always worked actively to tackle the environmental issues thatare intrinsic to society by making efforts like contributing to acarbon-free society its highest priority, and space in themessage from the president has been given over to explaining
the company’s specific efforts. Now, Dai-Dan’s management
is putting forward its message of space value creation thatraises awareness of its contributions to the environment andsociety in its main business line, M&E works. By doing so, it isproviding concrete form to environmental efforts, which canoften become quite abstract, both inside and outside thecompany. Dai-Dan’s clarification of the goals of its vision issomething else that is very laudable.
In particular, by uniting the two strands of raising corporate
value and working on environmental issues—which can be
mutually exclusive—we hope the company will raise its value
while also enhancing its raison d'être, and this should lead tothe overcoming of environmental challenges and further,sustainable environmental efforts.
Dai-Dan is steadily working toward issues it identified by
setting areas of materiality, such as through points likecollecting CSR procurement agreement forms fromsubcontractors and suppliers. The attitude behind this kind ofsustained effort is also highly commendable. When we in thethird-party team checked the content of these agreement
forms, we saw that they included Dai-Dan’s procurement
policy, action guidelines for business partners, sustainability
policy, human rights and labor policies, health and safety
policies, quality and environmental protection policies, andrequests to ensure information security. We think this is101

DAI-DAN REPORT 2022

extremely comprehensive. Moreover, the return rate fromsubcontractors and suppliers this fiscal year was 100%. We
believe that this is proof that the company has engaged in evenfuller dialogue with subcontractors and suppliers and worked
on CSR procurement more than ever before, and we think we
can expect even more of future initiatives.
This was also another year in which Dai-Dan made great
strides in reducing its production of greenhouse gases and inpromoting the use of renewable energy (see details on its
environmental management system for more information). In
particular, from an ESG point of view, the detailed analysis andexplanation of its understanding of the different emissions
scopes and its reductions is excellent. While some targets
were missed, during our interviews we were able to determinethat the company had sufficiently analyzed the causes andinvestigated countermeasures. We expect we will see
improvements in fiscal 2022.
Part of Dai-Dan’s social contribution efforts is its continuing
activities to clean up around its offices and its tree-planting
efforts. The Dai-Dan Forest project it launched in the previous
year also started to take form this year and the company
signed agreements between its head and branch offices andlocal authorities concerning the sites where the forests would
be cultivated, and efforts are already underway in Hokkaido
and Saitama. These foresting activities are not something thatwill provide an immediate result, but it will help—even if only
a little—to recycle and regenerate an environment alreadydamaged, which will lead to overall environmental regeneration
and recovery. As one of Dai-Dan’s new initiatives toward theenvironment, based on its long-term vision, it is very positive.

Initiatives related to work-life balance andimproving the work environment
Under its Sustainability Committee, Dai-Dan has established anumber of task forces. The Work Style & Human Rights Task
Forces—one type of task force—have launched the SMILE
2024 Project to rectify the problem of long working hours.
Dai-Dan has appropriately recognized that long working hours
are an important issue when it comes to employees’ work-lifebalances and working environments, and we were very
impressed that the company is taking active steps to correct
this issue. During the interviews we had with Sustainability
Committee members, we heard that they had conductedinterviews and questionnaires with employees as one of thespecific efforts included in the project. Going forward, byfurther promoting this project, and incorporating the findings ofanalysis of these interviews and questionnaires, we expect
these efforts to lead to concrete results in combating long
working hours.
Alongside the efforts detailed above, the promotion of adigital transformation (DX) is an important initiative that will haveconsequences such as greater female participation and more
support for the balance between work and home lives. We areglad to see that Dai-Dan is continuing to promote DX, which it
has been doing since before the pandemic. By continuing to
do so, we think the company should be able to create evenbetter workplaces.
In terms of occupational health and safety, unfortunately,
the situation worsened compared to the previous year withrises in the number of victims of industrial accidents, thefrequency rate, and the severity rate. However, the company
did identify that the reason for this was human error (such as alack of foresight by workers) or incidents among moreexperienced workers due to older average ages among theworkforce. Dai-Dan’s efforts in promoting the reporting ofclose calls, considering the correlation between close callreports and the likelihood of industrial accidents occurring, isalso praiseworthy because it is analyzing the causes—as itshould—and making efforts to reduce the number of incidents.
We expect this to be reflected in better statistic next year andbeyond.

Initiatives related to corporate governanceand legal complianceAs part of its corporate governance, Dai-Dan has put in placea new Nominating and Remuneration Committee (a majority ofthe members of which are outside directors). This committee
reports and offers advice about the appointment or dismissalof directors and their compensation to the Board of Directors,
and has been established with some real power of influence.
This system is designed such that we can expect even greater

fairness from decisions made by the Board of Directors.
The Board of Independent Officers, which comprises only
outside directors and auditors, analyzes and rates the answers
directors give in their self-assessment questionnaires. It also
identifies issues from these, and we can see that thecommittee plays a central role in evaluating the Board of
Directors’ effectiveness.
In such ways, the outside directors have a vital function,
and as the outside director says in his interview, being able toactually feel the importance and effect of that role backs up thesoundness of the company’s corporate governance, anotherarea in which Dai-Dan has done well.
We also have great expectations for the continuous
strengthening of corporate governance through the way inwhich the newly established Sustainability Committee andSustainability Promotion Department are working to implement
the Dai-Dan Group Sustainability Policy through activities thatcross divisional and departmental boundaries.
For compliance, considering the importance of its internal
whistleblowing system in particular, the company has taken on
board revisions to the Whistleblower Protection Act, andexpanded the scope of potential whistleblowers, to invigorate
the system. We hope that Dai-Dan will make further
improvements in the future, such as by coming up with specificways to secure greater neutrality for the external hotline, which
is currently manned by corporate lawyers, so that the system
can function effectively as a means of ensuring compliance.
In the area of risk management, the Risk Management
Committee is sharing information and collaborating with the
new Sustainability Committee, which is reflected in appropriate
response processes for risks attached to new issues, such as
climate-related risk. The COVID-19 Task Force has also been
established and is working to come up with risk reduction
measures that are able to flexibly adapt to the specificsituation, such as fluctuations in the nature of the pandemic orchanges in government policy.

Third-Party Opinion

Third-Party Opinion

These are the opinions of myself and three other lawyers—Motohiro Shibuya, Satoko Ochi, Kazuhiro Arioka—from the Kinki Branchof the Japan CSR Promotion Association, which was founded to set up, propagate, and develop corporate social responsibility (CSR).
In this third-party opinion, from an independent and fair standpoint and in line with the Corporate
Social Responsibility Guidelines published by the Japan Federation of Bar Associations, we present
our finding on this, the Dai-Dan Integrated Report 2022–2023. In doing so, we have considered
Dai-Dan’s management and the future development of its SDG and ESG initiatives, the balance
between business and human rights, and recent trends in corporate governance.
During our evaluation, after investigating the information contained in this integrated report, we
distributed questionnaires and asked for other documents, and conducted interviews with related
individuals. The answers and related documents we received were shared among our legal team, andwe exchanged opinions and studied the company’s actions.
While the full details of our opinions are given below, there are two sections I will comment on here:
The sections under the key phrase of “value creation”—the history of Dai-Dan’s initiatives, its value
creation processes and implementation, its medium- and long-term visions, actual results, and other
Masatoshi Ohara
areas have easy-to-read explanations and are well laid out with diagrams, tables, and photographs.
Attorney, Licensed to practice in New
York State (USA)
Equally, the parts on corporate governance and compliance fields introduce concrete initiatives andFormer Deputy Chairman, Japan
incorporate an interview with an outside director.
Federation of Bar Associations
Former Chairman, Osaka Bar
That is why we have been able to evaluate this report, its layout and contents, so highly.
Association

Reflecting on the third-party opinions
I am extremely grateful to Mr. Ohara, Mr. Shibuya, Ms.
Ochi, and Mr. Arioka for their opinions, which we value.
Their evaluations of our individual
efforts to address environmental
issues,work-life-balance,
andcorporate governance as priority
issues are encouraging, and we willtake on board their proposals as
matters of great urgency. In the
future, too, we will work flat-out toprovide our stakeholders with value
and make society more sustainable. Yoji Sasaki
Senior Corporate Officer
Corporate Planning
Office Manager

DAI-DAN REPORT 2022

102