Integrated Report 2023—2024, DAI-DAN CO., LTD.

DAI–DANREPORT 2023—2024
Integrated Report 2023—2024, 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 2023 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 2023

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

58

Sustainability Initiatives

3

Dai-Dan’s 120-year History of Creating Value

63

Environmental Initiatives

5

President’s Message

9

Dai-Dan’s Businesses

Planting the Idea of Dai-Dan Forests

Corporate Profile

Dai-Dan Is Cheering on Nozomi Tanaka!

giving due consideration to the environment.

Our Services

This 120-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.

Projects Completed in FY2021

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

Projects Completed in FY2022

Environmental Conservation Initiatives

65

70

Partnering with Hosting Communities

Valuing Our Employees
Work-Life Balance and the Work Environment
Human Rights Due Diligence Initiatives
Health and Productivity Management Initiatives

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

SMILE 2024 Project
Marking Our 120th Anniversary

Value Creation Story
The Value Creation Flow

19

Long-Term Vision and Mid-Term Management Plan

81

21

Financial Strategy

84

23Interview with an Outside Director

G(Governance)

Materiality at Dai-Dan

Contents

A Message from Management

Foundations for Value Creation

17

Fair and Transparent Business Practices
Corporate GovernanceDirectors and Auditors
Compliance (Legal Compliance and Corporate Ethics)
Improper Conduct Made Public in March 2023

Value Creation in Practice

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

Representative Director
President
DAI-DAN CO., LTD.

27

E

(Environment)

Risk Management

96

Long-term vision

How We Are Bringing About a Richer,More Sustainable Society

Quality Improvement Initiatives

97

S(Society)

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

Expanding a Business That Contributes
Lower Environment Impacts

Continuously Improving Health and Safety Initiatives with the Goalof Eradicating Industrial Accidents

DataLong-term vision

How We Are Providing Comfortable,
Optimal Spaces
Achieving High-Quality Medical Environments—Facility construction and contracted services—101

ESG Data

103

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

105

Consolidated Financial Statements
Consolidated Balance Sheets

Wellness Initiatives in the Construction Industry

Consolidated Statements of Income/Consolidated Statements of Comprehensive Income
Consolidated Statements of Cash Flows

Resolving Social Issues through Collaboration
between Industry and Academia

37

Initiatives with Subcontractors

Contributing to a Carbon-free Society—Reducing waste through air filter regeneration services—31

Meeting Customer Expectations

109

Major Financial Information

Value Creation Drivers

110

Share Information

Innovation Capabilities

111

Third-Party Opinion

Promoting R&D
Intellectual Property Management

43

Engineering Capabilities
Creating BIM Work Flows That Utilize CDEs
Opening of Offsite Facilities for Prefabrication andModular Processing
Advanced Development Technologies

49

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

54

1

DAI-DANDA I - D A NREPORT
REPOR
2023
T 2023

Overseas Business

Editorial Policy
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.

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, 2022, to March 31,
2023. Some data refers to activities after April 1, 2023.

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

DAI-DAN REPORT 2023

2

Dai-Dan’s 120-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

1906
1907

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.

1907

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

1979

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

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).

Sumitomo General Head Office Building

1984Technical 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.

Osaka Danbo Shokai is launched and expanded asa building services engineering and installation provider

1993

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

2003

The company celebrates the hundredth anniversary of its founding.

1915

The business rights of Murai Sugaya Sales Office are taken over by the newly
established Osaka Danbo Shokai.

The company responds to the decarbonization of society, the regenerative
medicine business is promoted, and the overseas business expands

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.

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).

The company responds to larger buildings andmore advanced industrial facilities
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 that are indispensable for life—and as a company that develops a
positive balance between the electricity, air conditioning, and plumbing
sectors.

DAI-DAN REPORT 2023

1994

Passenger Terminal,
Kansai International Airport

1996

M-Wave Nagano Olympic Memorial Arena

2010

1931

Bank of Japan Head Office Building

1933

Major installations

R&D into cutting-edge equipment technologies is strengthened
1909

Bank of Japan Hakodate Branch Building

3

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

Dai-Dan’s 120-year History of Creating Value

Dai-Dan’s 120-year History of Creating Value

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

2016With the rebuilding of the Kyushu Branch Office, enefice Kyushu™ is constructed asa facility to demonstrate ZEB (net Zero Energy Building) in our own building from theperspective of BCP.

2017

The open lab Cellab Tonomachi is opened in order to promote open innovation withthe aim of contributing to the promotion 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,
is constructed.

2020

In February, the subsidiary Cellab Healthcare Service Co., LTD. is established topromote the regenerative medicine business.

1964

Haneda Airport Terminal 2

2011

CREATEIn October, the subsidiary DAI-DAN (VIETNAM) Co., LTD. is established in Hanoi,
Vietnam.
2021
Nippon Budokan

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

2017

In September, the local subsidiary DAI-DAN INTERNATIONAL ASIA PTE. LTD. isestablished in Singapore as a base for future business for Southeast Asia.
In November, a subsidiary is established in Taiwan.

1974
2022

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.

2023

The corporate logo is updated to commemorate the company’s 120th anniversary.

GINZA SIX

Supreme Court Office Building

DAI-DAN REPORT 2023

4

President’s Message
President’s Message
trustworthinessandoutstandingorganization;and3) contributing to a richer, more sustainable society. We have
On March 4, 2023, we marked 120 years since the founding ofdivided the nine years between the formulation of Stage 2030

our company. During that time, we have provided light, air, andin 2021 and the final year of the period in 2030 into threewater to thousands of buildings.

stages, and will set a separate mid-term management plan forThis record has been supported by the trust we have earned

each. This fiscal year is the final year of the first of these,from the stakeholders over the years, and by the passion of our

Preparation Stage. Under Preparation Stage, we have

employees who have continued to meet expectations with acontinued to make progress in putting in place andstrong desire to provide better equipment. I am extremely

strengthening our foundations in Japan and elsewhere and byproud of how we have become a company of long standing

doing so we have focused on expanding our top line, i.e., ourthat has continued for 120 years.

net sales.

The external environment is undergoing dramatic change,

Now, as we approach the end of Preparation Stage, I will

and we are now in an age where transformations can comeconvey my thoughts on our management direction through theabout in as little as five years. As well as passing down thethree basic policies of Stage 2030.

President’s Message

President’s Message

Through repeated sincere efforts,
on a daily basis, we will reform
this trusted, long-standing
company to continue tomeet the expectations ofsociety as we have donefor 120 years.

120 years of Dai-Dan

positive traditions that we have formed over our long history,
we are earnestly addressing the areas where we can improveto adapt to such changes. By valuing the partnerships that we

Comfortable, optimal spaces

have developed with everyone, we will move forward into theWith this desire to expand our topline, the business areas that

future.

will prove key are our industrial facility works and our overseas
business.
In the manufacturing facilities, for items such as electronic

A company that creates value in spaces

devices and pharmaceuticals, that we position as industrial
facilities, the environmental specifications—factors such astemperature, humidity, and air purity—have to be guaranteed

looks at where we want to be in 2030, based on the “challenge

to be highly accurate. Precisely because of the high degree ofof creating value for our customers while contributing to thedifficulty, this is a field where we can fully demonstrate ourdevelopment

strongertechnical capabilities. I also believe that continuing to workcommunities as a building services engineering and installation

hard and accumulating expertise will help to hone ourprovider” that we set out in our management principles. The

technologies. At present, we are receiving more orders fromaccompanying slogan, “moving from building services

facilities such as semiconductor factories, automotive battery

engineering and installation to creating value in space,” is aplants, and data centers. Work projects are also getting bigger,

declaration of our ambition to continue to provide the kind ofwith around half of the value of orders received forecast to be

spaces the current age demands.

for industrial facility works.

ofabetterenvironment

andBuilding lifecycles are extremely long, while the lifespan of

To improve our sales figures, we cannot rely on ourbuilding equipment is generally around 15 years. With

Japanese business alone, we also need to strengthen our

appropriate updates, though, they can continue to be used foroverseas business. In addition to our traditional bases in

50 years or more. We also recognize that the building spaces

Singapore and Thailand, in recent years we have establishedIchiro Fujisawathat customers want change as time goes by.

subsidiaries in Vietnam and Taiwan, and we are moving

Representative Director
President

existence, is to continue providing value through spaces that

Of particular note was our subsidiary in Vietnam, which in the

respond to these kinds of needs that change over time, and tolast fiscal year has gained new orders and started to show otherhelp make society more sustainable. This belief is woven into

results. This year, orders in the overseas business are predicted

Stage 2030, and creating value in spaces has become ato grow by 80% or more compared to order levels in fiscal 2021,

company motto.

the year immediately preceding the start of Preparation Stage.

ProfileApril 1979
June 2009
April 2013
April 20185

In 2021, we formulated Stage 2030 as a long-term vision that

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)

DAI-DAN REPORT 2023

We believe that our mission, and the reason for our very

forward with expanding our business elsewhere.

With Stage 2030, we are promoting business activities

Moreover, last year we invested in Presico Engineering Pte. Ltd.,

based on three key policies, and by doing so we aim towhich operates a mechanical and electrical engineering businessbecome a “space value creator” and to cement a firm position

mainly in Singapore, and made it an equity-method subsidiary.

as the top group in the industry. These three policies are:With the aim of creating future synergies, we will work to further

1) providing comfortable, optimal spaces; 2) ensuring we retain

improve competitiveness from a global perspective.

DAI-DAN REPORT 2023

6

President’s Message

Trustworthiness and outstanding organization

this, we will have to turn our hand to reforming people’s way ofmeasurement technologies to visualize installation processes

The expertise that we have built up through that and making

thinking. Internally, we are working to redevelop expertise andthrough 3D animations; and MonoBooker, a system developed

our own buildings ZEBs is applied to every stage during the

The construction industry is a very labor-intensive one thatideas to raise the efficiency of conventional tasks and improvewith WHERE, Inc. to allow adjustments to reservations fordesign, installation, and operations of our customers’

requires work on-site, and we have long valued the belief that

productivity that have come from individuals and individual

scaffolding equipment for construction sites.

buildings, and we will help to reduce Scope 3 greenhouse gas

people are our biggest asset. In recent times in particular, as

departments, for the entire company. We are also working toAway from DX too, we are also moving forward withredevelopment projects or industrial facility works havepersuade customers of the benefits of having worksites

advancing measures to put in place offsite bases for unit

become bigger, and construction demand has steadily risen,

inactive two days per week.

assembly and prefabrication for equipment and piping away

the amount of work we have has grown to a record high. Ouremissions.

from the worksite, and we plan to reduce workloads by

In conclusion

can put their assorted abilities to work and demonstrate theirThis company-wide project to reduce working hours has been

In January 2023, it became apparent that several of ourfull potential. Therefore, we will support the workers so thatdubbed the SMILE 2024 Project, where SMILE stands for:employees had colluded with subcontractors, and received

Another responsibility we clearly have, beyond reducing

greatest amount of work, and so for this reason too weworking hours, is to put in place environments where workers

once again recognize that investing in human capital is amanagement issue that we should be making our highest
priority.

they are motivated to work but also value their private time, andSatisfaction for employees andpart of fraudulent contract amounts or changed the cost pricerespect their individuality and capabilities—regardless of

Motivation, which we will raise throughof works. I am deeply and sincerely apologetic to all our

Since the last fiscal year, we have been running agender, age, nationality, or other characteristics—and will

Ideas that create somestakeholders for the trouble and worry caused.

company-wide project to resolve the problem of overly longcreate a workplace environment that can utilize those.

Leeway and greater

working hours. Going beyond merely meeting the maximum

Efficiency

overtime limits that will be introduced, including to theDigital transformation (DX) will play a central role in our efforts

construction industry, in April 2024, our project is based on theto raise the efficiency of tasks and promote diversity, and ourbelief that we also have to fundamentally address this major

initiatives to apply digital technologies have been informed byissue to be able to develop the personnel who will be

our philosophy that DX should utilize our people.

responsible for the industry in the future.

We will forge ahead with bringing about better ways ofworking that ensure the smiles of every worker.

site support remote teams that offer remote support fromthe prevailing belief in the construction industry that long

offices or other locations using the internet; Construction

working hours are a matter of course and unavoidable. To do

Visualizer 4D™, a tool that uses a 360° camera and photo

Based on the Internal Audit Committee’s findings, in April we
dealt with the employees who committed this fraud and withthe relevant executive officers, including myself, who were
responsible for oversight.
The cause for this incident was insufficient awareness ofcompliance, but we also recognized that some governanceand risk management processes were not functioning

Some examples of our concrete DX measures include job

To prevent overly long working hours, we have to overturn

President’s Message

President’s Message

improving the efficiency of installation work.

aim is to lighten the load of on-site tasks, which involve theRicher, more sustainable society

properly. In response, we have formulated and implemented anumber of measures to prevent a reoccurrence, including

What I think is indispensable when considering the long-term

thorough compliance training for employees in the company

survival of a company, is the contribution it makes to improving

and subcontractors, and improvements to work processes.

the sustainability of the environment and society. Contributing
to a carbon-free society is the first of the material management

I have endeavored toward reforms to this long-standing

issues that we set to promote our sustainability initiatives.

company with the goal of continuing to meet everyone’s
expectations for our future beyond this anniversary.

People are our biggest asset.

The first example I can give as a way in which we are working

As ever, I believe the most important thing is to earn trust by
earnestly repeating our daily tasks. We are holding dialogue

Our goal is for every employee

toward a carbon-free society is our development and spread of
net Zero Energy Buildings (ZEBs).

with all our stakeholders at every possible opportunity, we aregoing all out to bolster anew the company’s foundations thatto find it easy to work, andThese buildings are those for which energy supply anddemand are equal, by pursuing energy savings using highly

will take us to our 130th, or even our 150th anniversaries. I

be motivated, happy andefficient equipment and generating energy through means

hope I can count on your continued support and help. Thanksuch as solar power. Building equipment, such as thoseyou.

satisfied.

involved in electricity or air conditioning, consume more thanhalf of the energy used in an office building, and are estimatedto account for around 20% of Japan’s greenhouse gas
emissions. I believe that spreading the ZEB concept around
Japan is, even in a small way, contributing to society’s moves
toward carbon neutrality.
In April 2024, the standards for energy efficiency will becomemuch stricter for large-scale buildings with areas of 2,000 m² or
more. In this way, government policy is to gradually raise theenergy-saving performance of buildings. As such, we predictthat demand for ZEBs will grow even faster going forward.
Even after construction, ZEBs require continuous finetuning.

7

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

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

1,933 (as of June 30, 2023) consolidated

Stock listing

Prime market of Tokyo Stock Exchange

FoundedElectrical work

32.88

●Sales17.7%■ Organization Chart (as of September 2023)
Shareholders’ meeting

Corporate Planning Division

Executive Committee

General Administration Division

Nominating and Remuneration
Committee

Sales Division

Board of Independent Officers

Technical Division

Mechanical work

Quality, Environment andSupply Chain Division
ChairmanInnovation Division

Technical Research Laboratory

President
Hokkaido● Sales153.08

East Japan DivisionTokyo Head OfficeCompliance Promotion OfficeCompliance Committee

NagoyaHokuriku%

Plumbing work

West Japan Division
ShikokuInternal Audit Office
KyushuEngineering DivisionInternational Division

DAI-DAN REPORT 2023

82.3

Osaka Head Office

Chugoku

9● Proportion of total sales

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. For example,
some large data centers that underscore today’s internet society adopt many of ourtechnologies to introduce cold outdoor air in order to reduce air conditioning load
and to effectively direct cooled air towards IT equipment. Moreover, we can tap
renewable geothermal energy as a heat source in order to efficiently manage abuilding’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.

Niigata

Risk Management Committee

billion yen

Air conditioning work

TohokuSustainability Committee

Our Services

Corporate Profile

Board of Directors

Auditors’ meeting

Dai-Dan’s Businesses

Dai-Dan’s Businesses● Proportion of total sales

billion yen

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.

Singapore Branch

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 2023

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

Kobe Branch

7F Nihon Seimei Sannomiya Ekimae Bldg.,
651-0088 7-1-1 Onoe-dori, Chuo-ku, Kobe City

Kyoto Branch604-8186

Wakayama
Office4F-408 Nankai Wakayamashi Station Bldg., 3-17
640-8203
Higashikuramae-cho, Wakayama City

Shiga Office

3-A Finesu, 2101-2 Koshinohara, Yasu City,520-2331 Shiga Prefecture

077-518-1035

Chugoku Branch730-0812 2-22 Kakomachi, Naka-ku, Hiroshima City082-241-4171

Okayama
Branch

700-0984 6-10 Kuwada-cho, Kita-ku, Okayama City

Yamaguchi
Office4F Sanyo Bldg. Ogori, 4-9 Ogorimiyukimachi,
754-0011 Yamaguchi City

San-in Office690-0015 Matsue City

Shikoku Branch#103 Heights Shalom, 2-29-13 Agenogi,

760-0032 6-17 Honmachi, Takamatsu City

0742-32-1060
078-221-7777

4F Aobatokachi Bldg., 12-20 Odoriminami
080-0010 Obihiro City, Hokkaido

0155-25-3559

075-251-6411

Hakodate Office 041-0851 4-17-40 Hondori, Hakodate City, Hokkaido

0138-55-7086

073-433-9431

0852-27-5890

770-0872 4-1-10 Kitaokinosu, Tokushima City088-664-8121

089-957-5021

Osaka Head
大阪本社
Office （本店）

東北支店Tohoku Branch

DAI-DAN Service Kansai

092-771-4361

Kumamoto
Branch

862-0941 1-7-6 Izumi, Chuo-ku, Kumamoto City

096-364-7134

Miyata Office823-0016 680-1 Shiromaru, Miyawaka City, Fukuoka

0949-33-2602

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

Aomori Office017-773-1582

Akita Office010-0951 6F Sanno Piares Bldg., 2-2-17 Sanno, Akita City

018-824-6491

Morioka Office

3F Angel Bldg., 16-14 Morioka Ekimae-dori,020-0034
Morioka City019-654-3023

Fukushima
Office960-8002 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

2–3F Niigata Tokio Marine & Nichido Bldg., 2-3-6
950-0088 Bandai, Chuo-ku, Niigata City

025-247-0201

Tokyo
Head Office102-8175 2-15-10 Fujimi, Chiyoda-ku, Tokyo

03-3261-8231

Kanto Branch

8F Omiya MT Bldg., 2-35 Miya-cho, Omiya-ku,
330-0802 Saitama City

048-644-8468

Chiba Branch261-0023

Yokohama
Branch24F Nisseki Yokohama Bldg., 1-1-8 Sakuragi-cho,
231-0062 Naka-ku, Yokohama City

Technical Research
技術研究所
Laboratory（イノベーション本部）(Innovation Division)

045-683-1050

Gunma Office

7F Daidoseimei Maebashi Bldg., 3-9-5
371-0805
Minami-cho, Maebashi City

Chugoku Branch
中国支店

027-226-7720

Tochigi Office321-0953

DAI-DAN Service
Kanto

Ibaraki Office

7F Regal Tsuchiura Bldg., 1-16-12 Sakuramachi,
300-0037
Tsuchiura City, Ibaraki Prefecture0942-84-2350

029-825-6656
026-228-3820
0263-33-7016

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

043-211-8881

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

095-828-0772

Nagano Office

5F Choeidaiichi Bldg., 1282-11 Minamiishido-cho,
380-0824 Nagano City

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

097-532-4350

Matsumoto
Office2F Orii Bldg., 1-1-2 Chuo, Matsumoto City,
390-0811
Nagano Prefecture

Miyazaki Office880-0036

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

0985-86-6622

Kagoshima
Office1F San Laqua Bldg., 2-25-12 Nishida,890-0046
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

DAI-DAN Service
Chubu

セラボ Cellab
Healthcare
ヘルスケア
サービス Service

03-5326-7139

Shikoku Branch
四国支店(enefice
Shikoku)（エネフィス四国）

International DivisionInternational
Division

102-8175

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

03-5276-5021

ー

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

Singapore Branch©車田写真事務所© Kurumata Photography Office

Major Affiliated Companies in Japan
135-0033

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

03-5639-0721

DAI-DAN Service
Chubu Co., Ltd.

460-0011

8F Kamimaezu KD Bldg., 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 Prefecture044-276-5611

タイ

Name

Vietnamベトナム
Compliance Promotion
OfficeCorporate Planning Division

Singapore シンガポール

Presico Engineering Pte. Ltd. (Equity-method affiliate)

DAI-DAN REPORT 2023

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

Mie Office

3F-303 Mie Rice Bldg., 345-2 Komei-cho,514-0006
Tsu City, Mie Prefecture059-225-3840

Gifu Office

10F Daidoseimei Hirose Bldg., 6-16
500-8844
Yoshino-machi, Gifu City058-265-8224

Hokuriku Branch920-0902 1-6-15 Owari-cho, Kanazawa City,

076-261-6147

Toyama Office930-0019 1-10-20 Yayoi-cho, Toyama City

076-441-3371

Fukui Office910-0005 4F Fukui Hosokaikan, 3-4-1 Ote, Fukui City

0776-23-2166

17F-1704 South Pot Shizuoka, 18-1 Minami-cho,
Suruga-ku, Shizuoka City

Ishikawa Prefecture054-281-3501

Zip Code

Address

Telephone Number

Name

Zip Code

Address

Telephone Number

550-8520

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

06-6447-8050

Quality, Environment andSupply Chain Division100-0005

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

03-5223-1070

102-8175

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

03-5276-4652

Innovation Division354-0044

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

06-6447-8065

Innovation Division(Technical Research Laboratory)

354-0044

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

Regenerative Medicine
Promotion Department
Innovation Division(Cellab Tonomachi)

210-0821

Cybernics Medical Innovation Base-A 316,
3-25-16 Tonomachi, Kawasaki-ku,
Kawasaki City, Kanagawa Prefecture044-276-5010

550-8520
102-8175

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

03-5276-4568

Corporate Planning Division(Information Management Department)

550-8520

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

06-6447-8002

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

03-5326-7133

DAI-DAN（VIETNAM）Co., LTD.
台湾大暖股份有限公司（DAI-DAN Taiwan CO., LTD.）052-973-4750

Headquarters Organizations
ThailandAffiliated Companies Overseas
DAI-DAN（THAILAND）Co., LTD.

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

台湾
（中華民国）

Internal Audit OfficeDAI-DAN INTERNATIONAL ASIA PTE. LTD.

461-0005

名古屋支社
Nagoya Branch
TaiwanDAI-DAN Service
Kanto Co., Ltd.

Nagoya Branch

東京本社
Tokyo Head Office
Kyushu Branch
九州支社(enefice
Kyushu)（エネフィス九州）

Engineering Division
Engineering
Division

11022-225-7901

4F Tanuma Bldg., 2-4-10 Hon-cho,030-0802 Aomori City

Global Network

Global Network

088-884-8231

Tokushima
Office#202 Grand Mansion, 31-3 Okeya-machi,
Nagasaki Office 850-0027
Nagasaki City

北海道支店
Hokkaido Branch(enefice Hokkaido)（エネフィス北海道）
新潟支店
Niigata Branch087-811-2301

781-0088 10-16 Kitakubo, Kochi City

Prefecture

Hokuriku Branch
北陸支店

083-976-0121

790-0942 2-22-13 Furukawa-Kita, Matsuyama City

1-15-17 Ichiban-cho, Aoba-ku,
980-0811 Sendai City

Tohoku Branch086-223-3106

Kochi Office810-0023 3-1-24 Kego, Chuo-ku, Fukuoka City

011-716-9116

Obihiro Office

Matsuyama
OfficeKyushu Branch

5-1-43 Kita 20jo Nishi, Kita-ku, Sapporo City,
Hokkaido Branch 001-0020
Hokkaido

Dai-Dan’s Businesses

Dai-Dan’s Businesses

Nara Branch

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

East Japan Division

06-6441-8231

5F JR Nara Denho Bldg.,
630-8122 9-21 Sanjohonmachi, Nara City

Technical Division

DAI-DAN REPORT 2023

12

Dai-Dan’s Businesses Projects Completed in FY2021/Projects Completed in FY2022

Projects Completed in FY2021(air conditioning and plumbing works)

Hyogo Prefectural Harima-Himeji General
Medical Center

Kurita Innovation Hub (Tokyo)

Canon Mold Co., Ltd.
Head Office/Tomobe Site (Ibaraki Pref.)Shiseido Company, Limited
Fukuoka Kurume Factory
production equipment

Kudan-Kaikan
Terrace(air conditioningwork)(electrical work)(plumbing work)

Chiba City
Hall
New
government
officeSt. Marianna University Hospital
Inpatient Building (Kanagawa Pref.)Dai-Dan’s Businesses

Dai-Dan’s Businesses

Mebks Toyosu

Projects Completed in FY2022(air conditioning
work)(air conditioning work)

Projects Completed in FY2022

Projects Completed in FY2021

New government office building,
Yatsushiro City

(electrical work)(plumbing work)(air conditioning and plumbing works)

Toyota Memorial Hospital (Aichi Pref.)(electrical work)

AEON Next Co., Ltd. Honda CFC (Chiba Pref.)Granbell Square (Tokyo)(electrical, air conditioning and plumbing works)

Nipro Corporation Head Office (Osaka Pref.)Seiwa Memorial Hospital (Hokkaido Pref.)(air conditioning and plumbing works)(air conditioning and plumbing works)

Urbannet Nagoya
Nexta Building

Major renovations at government officebuilding, Tsu City

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

New factory for Nipponham Hokkaido
Factory Ltd.
(air conditioning and plumbing works)(air conditioning andplumbing works)©Forward Stroke inc.

(air conditioning work)

Courtesy of JR East Tohoku Area Headquarters

JR East Tohoku Area Headquarters(Miyagi Pref.)(air conditioning work)

13

DAI-DAN REPORT 2023

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

Biofermin Pharmaceutical Co., Ltd.
Kobe Factory No. 2(air conditioning and plumbing works)

Ichimasa Kamaboko Co., Ltd.
Headquarters Factory No. 2 (Niigata Pref.)(air conditioning and plumbing works)

DAI-DAN REPORT 2023

14

Value Creation Story

Value Creation Story

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

15

17

The Value Creation Flow

19

Long-Term Vision and
Mid-Term Management Plan

21

Financial Strategy

23

Materiality at Dai-Dan

DA I - DA N R E P O R T 2 0 2 3

DA I - DA N R E P O R T 2 0 2 3

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)

1,645∙ Training hours per person
66.11∙ First-class architects
36∙ First-class building operation
7
and management engineers∙ First-class plumbing work operation
855
and management engineers∙ First-class electrical work operation242
and management engineers∙ P.E.Jp
37∙ Ph.D.
9∙ Energy management technicians
65

Update∙ Employees

Intellectual capital223∙ Intellectual properties held(incl. patents and other expertise)1.17 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

Taking orders

Social capital∙ Subcontractors & suppliers

5,605

Natural capital∙ Energy consumption

Procurement

1.37 million liters(crude oil equivalent)

Manufacturing capital

54∙ Overseas bases
4∙ Technical research laboratory
1∙ Cell processing facility
1(Cellab Healthcare Service CO., LTD.)∙ Japanese bases

17

DA I - DA N R E P O R T 2 0 2 3∙ Orders received

206.34 billion yen∙ Net sales

185.96 billion yen∙ Operating profit

8.43 billion yen∙ Profit attributable toowners of the parent

6.63 billion yen∙ Return on equity (ROE)

8.3 %∙ Dividend payout ratio

32.3 %

Non-financial results

Management policies
Management principles

Value we deliver tostakeholders

Providing functional
spaces that offer people
and items health andcomfort, optimized totheir use
P31–

Contributing toa richer, moresustainable society
P27–

Enhancingorganizational value
through individual
growthP70–

Resolving societal
issues through new
businesses
P29–(non-consolidated)∙ Scope 1 & 2 greenhouse gas emissions(consolidated)

2,901 t-CO₂
8∙ Orders for ZEB-related projects(non-consolidated)(non-consolidated)

Planning/proposal

Financial results∙ Collaborative relationships outside
the company for business creation(universities, start-ups, etc.)

10∙ CSR procurement agreement forms
collected from subcontractors andsuppliers

The Value Creation Flow

Human capital(FY2022)

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

The Value Creation Flow

∙ Equity capital ratio

148.54 billion yen
82.24 billion yen
55.4 %

Delivering value throughout
the building/equipment lifecycle

OutcomeValue Creation Story

Value Creation Story(FY2022)

Output2,081∙ Net sales per domestic engineer

138 million yen

DA I - DA N R E P O R T 2 0 2 3

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■ Mid-Term Management Plan performance forecasts■Orders received

200,000

162.9 billion yen

185.9 billion yen

Greater proportion fromsubsidiaries

200 billion yen

Operating profit(consolidated)

7.5 billion yen

8.4 billion yen

10 billion yen

8.5 billion yen

ROE

7.6％

8.3％

8% or higher

7.7％

Dividend
payout ratio

33.3％

32.3％

30% or higher

35% or higher

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

Investment
plans*Cumulative for3 fiscal years

176,526
157,712

183,668
162,929

206,337
185,961

200 billion yen

20 billion yen

8,428

7,584

100,000

0

12,000(8,500)

FY2020

FY2021

FY2022Business strategy

Comfortable,
optimal spaces

Strengthen
overseasbusiness

Richer, moresustainable
society

Trustworthiness and outstanding organization
Trustworthinessandoutstandingorganization

Enhancetechnical
capabilities

Open upnewbusinesses

Bolsterbusinessfoundations

FY20236,000

0Stage 2030 Phase 1: Preparation Stage

Preparation Stage strategy

FY2022 performance

15,0003,000

Mid-Term Management Plan (FY2021–FY2023)

Richer, more sustainable society

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.

(210,000)(200,000)

50,000To 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.

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.

Operating profit

9,000
8,754

Expand corebusinesses

Comfortable, optimal spaces■Net sales

150,000

Basic policy

DA I - DA N R E P O R T 2 0 2 3

Sales(consolidated)<Mid-Term Management Plan period>

250,000

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

19

Preparation StageFY2023 target● Orders received:
Operating profit (million yen)

2

Bolstering overall
group capabilities

FY2022
resultPhase

1

Developing
foundations in Japanand overseas

FY2021
resultLong-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.

FY2023 forecast(announced on
May 11)

Item

Value Creation Story

Value Creation Story

What is a “space value creator”?

■ Numerical targets in the Preparation Stage

Our three-year Mid-Term Management Plan entitled the“Preparation Stage” (fiscal years 2021–2023) forms the first of thethree phases set in our long-term vision. Based on the three basic
policies of the long-term vision, we have positioned “expanding
core businesses,” “strengthening overseas business,” “enhancing
our technological capabilities,” “opening up new businesses,” and“bolstering our business foundations” as our five businessstrategies to be incorporated into specific measures for building
our foundations inside and outside Japan.
The numerical targets we have set for the “Preparation Stage”
are consolidated net sales of 200 billion yen and consolidated
operating profit of 10 billion yen for the fiscal year ending March
31, 2024, the final year of this phase. A cumulative investment total
for the three-year period of 20 billion yen has also been planned.

Positive growth in orders particularly forredevelopment and industrial facility
projects backed by recovering appetite
for investment among corporations● Net sales:
Favorable progress in large-scale
projects, such as industrial facilities,
airports, and medical facilities● Operating profit:
Increased profit thanks to the sales
growth and favorable foreignexchange effects arising from yen
depreciation

The progress statuses of measures in the Preparation Stageare as follows.

Implementation status of measures

Expand industrial facility
works

Orders are increasing markedly, especially from electronic device-related factories and data centers. The
Engineering Division established in April 2022 is making a significant contribution to ensuring installation
quality.

Strengthen renovation andmaintenance services

In cooperation with our subsidiaries, we are promoting customer retention through proactive maintenanceorder-receiving activities.

Develop a unified foundationfor overseas expansion

Related divisions in Japan support sales, technical proposals, and quality control for each overseas project.

Open up new businesssites

In Vietnam, the new market we entered in fiscal 2020, we received orders for and completed mechanical andelectrical (M&E) work.

Strengthen competency
for construction job sites

We are improving productivity by encouraging internal use of DX case studies through use of Construction
Visualizer 4D™, a tool that creates 3D spatial data from omnidirectional camera images, and job site support
remote teams that provide remote support with drawing creation and similar techniques.

Expand ZEB and IoTbusinesses
Contribute to practical applicationof regenerative medicine

We are pursuing initiatives to realize a low-carbon society through ZEB, including the introduction of the enefis
series, a ZEB conversion of our own buildings. In May 2022, the reconstruction of our Hokuriku Branch wascompleted.
We aim to contribute to regenerative medicine through both the equipment and system sales business for cellprocessing facilities utilizing our equipment technologies and the cell manufacturing contract business. At ourbase, Cellab Tonomachi, we built a Cell Processing Facility (CPF) for contract manufacturing.

Promote environmentalload reduction businessWe are striving to contribute to the reduction of waste and CO2 emissions by offering a service to recycle used
air filters that have been disposed of. In fiscal 2022, we started operations in Taiwan, where many leading
semiconductor manufacturers are located.

Promote DX

By promoting DX such as Robotic Process Automation (RPA) in the business and administrative departments,
we are improving efficiency of the company as a whole.

Improve working
environment

We launched the SMILE 2024 Project, a company-wide project aimed at correcting long working hours andbuilding up expertise across the company to continuously enhance productivity and realize diversity by
improving the working environment.

Strengthen the corporategroup framework

We made Presico Engineering Pte. Ltd., which operates a mechanical and electrical engineering business mainly in Singapore,an equity-method affiliate. Through synergistic effects with its track record in the Singapore mechanical and electrical services
market, technological capabilities, and business area, we are striving to expand our business going forward.

DA I - DA N R E P O R T 2 0 2 3

20

Value Creation Story

Financial Strategy

Basic policies of our financial strategies

Financial developments in fiscal 2022
■ Breakdown of cash flows(Trends in period-end balance of cash and cash equivalents)(Millions of yen)
■Increase15,941■Decrease

Operating CF

317-4,729Investing CF

Translationdifferences

DA I - DA N R E P O R T 2 0 2 3

Capitalefficiency∙ ROE of 8% or more
∙ Reduce cross-shareholdings (including deemedshareholdings) to make the ratio to consolidated net
assets 20% or less.

Financialsoundness∙ Equity ratio: Approx. 50%(2)Growthinvestment∙ 20 billion yen(3)

Shareholder
returns∙ Dividend payout ratio: 35% or more

(1)

(4)

IR activities(55% in the previous fiscal year)(Investment plan based on the Mid-Term Management Plan:
Preparation Stage 2021–2023)(Continue to consider stable and effective dividend policy)∙ Proactively disseminate information to encourage
investment in the company

Financing CF
Period-end
cash andcash
equivalents

Period-end
cash andcash
equivalents

25,34816,037
Period ended
March 2022

Period ended
March 2023

■ Overview of consolidated management indicators, etc.
(cash flows)

Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents at
beginning of period
Increase/decrease in cash andcash equivalents
Cash and cash equivalents at
end of quarter

Policy on shareholder returns
We consider the return of profits to shareholders through thepayment of dividends to be our top management priority,
striving to build a sound financial position. To enhance
returns to shareholders, a new dividend policy of a dividend
payout ratio of 35% or more (previously 30%) has been put

in place since fiscal 2023. We will continue to consider ways
to further enhance shareholder returns and improve capitalefficiency, including share buybacks, while balancing
growth investment and equity capital.

Financial Strategy

Financial Strategy

21

Item

Basic policies-2,218(Millions of yen)
Period ended
March 2022

Period ended
March 2023

Increase(Decrease)

Change rate

-11,718

15,941

27,659—-873-4,729-3,855—-3,214-2,218995—

31,747

16,037-15,710-49.5%-15,710

9,310

25,020—16,03725,348

9,310

58.1%

Working capital and capital investment funds are basicallycovered by our own resources, but in order to secure morestable working capital, a commitment line contract with aborrowing limit of 10 billion yen was concluded at the end of
December 2021, and sufficient liquidity on hand has been
secured. With regard to liabilities, notes payable, accounts
payable for construction contracts, and other liabilities
account for the majority of those within the company, andborrowings are at a relatively low level, with the equity ratio
remaining high at 55.4% as of the end of fiscal 2022.

Financial challenges
In our consolidated earnings forecast for fiscal 2023, we
expect ROE to be 7.7%. As the ROE is higher than theestimated current cost of equity of approximately 5.0%, weplan to generate earnings that exceed the return expectedby our shareholders.
In order to continue generating stable and steadyearnings that exceed the cost of equity, we believe it isnecessary to achieve further top-line growth and increase(1) Grow the top-line and generate earnings exceeding thecost of capital while also maintaining financial
soundness.
(2) Invest in growth areas based on appropriate analysis of
the balance between risk and return.
(3) Proactively return profits to shareholders, mainly throughthe payment of dividends, and improve stock priceindexes.
(4) Enhance IR activities.
Based on the above basic policies, we will step up our efforts
in each of the items listed on the right.

Value Creation Story

Value Creation Story

Fiscal 2022, the second year of our three-year Mid-Term
Management Plan: Preparation Stage, saw significant
progress in building and strengthening our businessfoundations inside and outside Japan in our effort to becomea “space value creator.” Orders received, net sales, andprofits at each level were higher than the previous fiscal
year. Orders received carried forward also exceeded that ofthe previous fiscal year, helping us establish a major
foothold toward our target of 200 billion yen in net sales forfiscal 2023. On the profit front, our operating profit target for
fiscal 2023 in the Mid-Term Management Plan was set at
10 billion yen. With the high prices of materials andequipment, however, as well as increased expenses
incurred from workstyle reforms, operating profit is expected
to be 8.5 billion yen.
Key components of the Group’s working capital needs
are construction expenses such as material costs andsubcontract expenses in the mechanical and electrical(M&E) work business, as well as operating expenses suchas general and administrative expenses. Capital needs forinvestment purposes include expenses for share acquisition
through M&A to expand our business operations and create
new businesses, as well as expenses for capital investment,
including renewal of office buildings and software updates.
Regarding cash and cash equivalents for fiscal 2022,
net cash provided by operating activities increased by
27,659 million yen from the previous fiscal year to 15,941 million
yen due to steady collection of trade receivables recorded in
the previous fiscal year. From this amount, by deducting
4,729 million yen in net cash used in investing activities,
including stock acquisition through M&A, and 2,218 million
yen in net cash used in financing activities, mainly for thepayment of dividends, cash and cash equivalents at theend of the period totaled 25,348 million yen, an increase of
9,310 million yen year-on-year.
The basic policy of the Group’s financial strategy is tosecure stable funds necessary for business operations.

Financial Strategy

profitability while maintaining financial soundness. For
further top-line growth, we assume that funds for growthinvestments in M&A, R&D, human resources, and othercategories will be required. While basically using our own
funds to satisfy these needs, we will consider borrowing
from financial institutions and other ways of financing
depending on the size of the investment. We will also use
cash generated by the reduction of cross-shareholdings.

Reduction of cross-shareholdings
In principle, the company considers all of its crossshareholdings to be subject to reduction, and examines thesignificance of its holdings with the following criteria
established.
① Maintenance and strengthening of good business
relationships will lead to long-term and stableenhancement of corporate value.
② If ① above is not applicable, income fromshareholdings, including profits from relatedtransactions, dividends, etc., must exceed the cost ofcapital for each stock.
In September 2022, our Board of Directors decided toreduce our cross-shareholdings to less than 20% ofconsolidated net assets by the fiscal year ending March 31,
2027. In order to achieve this reduction target, we need toobtain the understanding of each of the companies in which■ Changes in value of listed shares

Investment for future growthTo our stakeholders

In fiscal 2023, the final year of the Preparation Stage, we willcontinue to invest in growth areas, such as expanding corebusinesses, strengthening overseas business, and opening
up new businesses, to prepare for the next “Refining Stage,”
based on the basic policies and business strategies in the
Mid-Term Management Plan.
We believe that we need to both strengthen our financialbase and achieve high profitability in order to enhance
corporate value and shareholder value through sustained
growth of our company.

We are committed to building a relationship of trust throughdialogue with all of our stakeholders, including
shareholders, customers, business partners, employees,
and local communities.
As a building services engineering and installation
provider, we will continue to take on the challenge ofcreating new value and contribute to the realization of abetter global environment and the development of society.
We appreciate your continued support for our group.

■Balance sheet amounts

No. of stocks(Stocks)(Millions of yen)120

30,00025,00022,48220,00091

24,85620,08822,273100

21,98780

85

78

15,00067

60

63

10,000

40

5,000

20

0

2018

2019

2020

2021

2022

(FY)

0

we hold shares. We hope to gain their understanding throughcareful dialogue and achieve this target at an early stage.

DA I - DA N R E P O R T 2 0 2 3

22

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, were high.
By mapping the levels of both, we came up with six material issues.

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.

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

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

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

Importance to Dai-Dan

Extremely
highMaterial Issues and KPIs
No.

Material issue

to
1 Contributing
a carbon-free society

Responding to changes

the business2 inenvironment
via DXFY2021 performance

FY2022 performance

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

Reduced 40% from
FY2013 levels(FY2021: 3,735 t-CO2)(FY2013: 6,235 t-CO2)

Reduced 54% from
FY2013 levels(FY2022: 2,901 t-CO2)(FY2013: 6,235 t-CO2)

Reduce GHG emissions (Scope 3)

1,708,291 t-CO2(13.75 t-CO2/million yen)

2,081,394 t-CO2(12.93 t-CO2/million yen)

Increase cumulative total of projects (no. oforders and gross floor area) related to ZEBs

8 orders
Gross floor area:
323,910 m2

8 orders
Gross floor area:
132,351 m2

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

14 cases

14 cases

Increase no. of job sites implementing jobsite support remote teams

339 projects

432 projects

35.3%

29.3%

Expand usage for medical development
devices and systems

6 facilities
10 units

2 facilities
6 units

8 facilities
16 units

Cumulative total
for FY2021–23: 30 units(FY2021) Infection control units: 10(FY2022) Infection control units: 5;
Sputum collection booth: 1

Expand usage for regenerative medical
devices and systems

6 facilities
21 units

8 facilities
14 units

14 facilities
35 units

Cumulative total
for FY2021–23: 45 units(FY2021) Air barrier booths: 4; Animal equipment: 7;
Rooms for compromised patients: 10(FY2022) Air barrier booths: 2; All-in-one CP unit: 1;
Karatto Operation unit: 1; Air conditioning system
for hybrid operating room: 1;
Animal equipment: 9

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

8 cases

10 cases

131 million yen
per person

138 million yen
per person

198

223

Teleworking implementation rate3

16 ordersGross floor area:
456,261 m2

TargetRemarks

Long-term target: FY2030
Reduce 43% from
FY2019 levels(FY2019: 4,002 t-CO2)

Target was a 46% reduction compared to
FY2013 levels, but as this was achieved in
FY2022, the year used for comparison has been
newly set as FY2019
Set reduction targets for FY2023 onwards
Figures in parentheses are emissions per million yen of
net sales (for projects already transferred to customers)
Disclose cumulative total for gross floor area, forreceived orders (incl. ZEB planning orders), as
one of the indicators we monitor

Cumulative total
for FY2021–23: 24

Disclose the no. of instances for each fiscal year
as one of the indicators we monitor

Improve employee satisfaction

2.52

2.50

FY2023: 2.7 or above

5

Frequency rate of job site accidents

0.48

0.30

FY2021 / FY2022 / FY2023:
0.25

0.013

0.570

FY2021 / FY2022 / FY2023:
0.01

Building better
partnerships with
subcontractors andsuppliers

Improve retention rate for Meisters andExcellent Foremen

Meisters: 83%
Excellent Foremen: 52%

Meisters: 77%
Excellent Foremen: 51%

2,050 companies

2,081 companies

DA I - DA N R E P O R T 2 0 2 3

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

Disclose the no. of relationships in practice per fiscal
year as one of the indicators we monitor

Designing working
environments where
people want to workwith attention to healthand safety

No. of CSR procurement agreement forms
collected from subcontractors and suppliers

Participation in the UN Global Compact

Disclose the implementation rate for each fiscal
year as one of the indicators we monitor

4

Severity rate of accidents

SDGs

FY2023: 400 projects

Promoting innovation andIncrease net sales per domestic engineer
improving productivity
through research and better
Increase no. of intellectual properties held
trained human resources(incl. patents and other expertise)

623

Achieving high-quality
medical environments

Cumulative total
for FY2021–22

KPI

FY2021 / FY2022 / FY2023:
135 million yen per person

Support for TCFD Guidance
Disclose the no. of properties held at the end of
fiscal year as one of the indicators we monitor

4,131 companies

Answers from employee questionnaires(max score 4.0)

Calculate employee accidents or illnesses resulting
from work tasks that led to one day or more work
missedWe have announced our agreement with the guidelines
published by the Task Force on Climate-related
Financial Disclosures (TCFD). To aid in the achievementof a carbon-free society, we will evaluate climate-relatedrisks and opportunities that may come up in ourbusiness and proactively disclose their potential impact.

FY2023:
Meisters: 75% or higher
Excellent Foremen:
50% or higher
Cumulative total for
FY2021–23:
5,500 companies

DAI-DAN REPORT 2023

24

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.

E

27(Environment)

Long-term vision

How We Are Bringing About a Richer,More Sustainable Society

27

Contributing to a Carbon-free Society

29

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

S

31

25

(Society)Long-term vision

How We Are Providing Comfortable,
Optimal Spaces

31

Achieving High-Quality Medical Environments

33

Wellness Initiatives in the Construction Industry

34

Resolving Social Issues through Collaboration
between Industry and Academia—Facility construction and contracted services—

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

26

E

(Environment)

Value Creation in PracticeLong-term vision

How We Are Bringing About a Richer,More Sustainable Society

Contributing to a Carbon-free SocietyAwards won by making Dai-Dan buildings ZEBs
Using the knowledge that we have gained so far by making our own buildings ZEBs, we studied everything from planning tooperations for enefice Hokkaido and enefice Hokuriku, and achieved ZEB status for the operational stage, as well as environmentsthat offer ease of working. These efforts have garnered praise and led to our winning several awards.

Contributing to a Carbon-free Society

A central core that achieves the three Ds: work starts on the replacement Niigata Branch

Hokkaido can be fiercely cold, yet despite this we accomplished complete ZEB status not just in design but for the operational stage,
too. Some representative efforts include developing methods to install equipment for multifaceted solar power generation in very
limited space, and the proactive application of geothermal energy, which have brought
enefice Hokkaido such high praise as a model ZEB.
Awards· Award for Excellence at the FY2022 Northern Regions Energy-efficiency and New Energy Awards· 8th Japan Wood Design Award 2022 in the Architecture and Space field of the Lifestyle Design
category· Honorable Mention in the Energy-efficiency category at the FY2022 Hokkaido Government
Energy-efficiency and New Energy Promotion Awards· Grade 2 Distinguished Technology Award at the 37th SHASE Awards for Distinguished Technologies· Promotion Award at the 36th Nikkei New Office Awards

FY2022 Northern Regions Energy-efficiency and New
Energy Awards ceremony

エネフィス北海道支店の主な受賞理由
Main reasons for the Hokuriku Branch’s award recognition
In order to harmonize with the historical streetscapes of Kanazawa and contribute todecarbonization, the building features a wooden construction and has managed to fix
65 tonnes of carbon. It also incorporates Dai-Dan’s unique technologies in lighting and air
conditioning systems for comfort that also achieves energy-efficiency. These cutting-edge
initiatives are behind the praise the building has received.
Awards· Select Committee Special Award at the 17th
Wooden Architecture Awards· Scenery Award at the 29th Ishikawa Scenery
Awards· 45th Kanazawa Urban Structure Award· Ishikawa Prefecture Outdoor Advertisers
Prize at the 35th Ishikawa AdvertisingLandscape Awards· 2023 IEIJ Good Lighting Award

2023 IEIJ GoodLighting Award
trophy andcertificate

Promoting a carbon-free society through the cloud-based monitoring and control system REMOVIS™

ZEB orders

While the lifespan of a building is said to be around 50 years, the value desired for buildings and social issues undergo dramaticchanges every year. As a result, building functions and value must adapt to changes in our customers’ business environment. This is
why we developed REMOVIS™ with the goal of innovating building monitoring and control systems. This is a remote monitoring andcontrol system, a DX solution that makes use of the cloudand IoT, to respond to functions that change with thetimes, and social challenges such as decarbonization. We
can use the cloud for tasks such as finetuning settings tosave energy after operations begin, linking up withcustomers’ own cloud services, and adding and improving
functions through remote software updates.
In fiscal 2022, there were three orders for REMOVIS™.
In one such example, for things that could normally only be
Building finetuning
noticed after a defect or abnormality became apparent, we
could visualize the data and share it with a whole range of
people, which made it possible to control equipment
remotely and prevent defects or abnormalities before they
Updates
occurred. We will further increase the number of successful
case studies while providing value that adapts to changes
in the times.

The Ministry of Economy, Trade and Industry has announced its aim to ensure ZEB-standard energy-efficiency for all new buildings
by 2030, and for the building stock average by 2050. In 2030, existing stock will comprise around 80 to 90% of total building space,and so with an eye on the 2050 target there is a need to make existing buildings more energy-efficient or ZEB-compliant.
Taking these social moves into account, we are actively working to refurbish buildings to make them ZEBs, as well as our efforts
on new buildings. As an example, we proposed, and successfully received an order for, a ZEB refurbishment for a 25-year-old medical
facility. We replaced the heat source and lighting equipment, and we introduced REMOVIS™ to act as an energy monitoring system,
and by doing so we were able to make the facility ZEB Ready. Because of projects like this, in fiscal 2022 we received eight projects.

Links with customers’ clouds

DAI-DAN REPORT 2023

E (Environment) Contributing to a Carbon-free Society

E (Environment) Contributing to a Carbon-free Society

We have started work on the replacement Niigata Branch building, andwe are applying the expertise we have gained in ZEB technologies tohelp achieve carbon neutrality. Of course, ZEB certification is one aim for
the Niigata Branch, but another new initiative is applying DX
technologies to everything from construction to building operations toaccomplish the three Ds (decarbonize, destress, and de-routine). We
are aiming for a new central building, the modern equivalent of theomoya, the central core of traditional Japanese buildings, that will
promote new ways of working. By also advancing DX, we plan to
improve the efficiency of design and installation tasks, and by doing so
we are working to improve labor shortages and working environments.
Also, by reducing working hours, we will curb the CO2 emissions that are
produced during construction. Labor-savings help to reduce costs, too.

Main reasons for enefice Hokkaido’s award recognition

Value Creation in Practice

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 20% and in fiscal 2019 emissions in the category were 48% higher than in fiscal 1990. As such, reducing CO2 emissions
in the business category is a pressing issue and therefore quickly spreading ZEBs is a necessary part of decarbonizing society.
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 ZEB technologies by making our own buildings ZEBs, we are providing customers with comfortable buildings while also curbing
CO2 emissions. We will also help with decarbonization with DX initiatives and help bring about a carbon-free society by reducing CO2
emissions from the construction stage of buildings to their operation.

27

E(Environment)

Dai-Dan has beenregistered as a ZEB
Leading Owner, anadvanced building ownerthat has constructed a
net-zero building. We
contribute to theadoption of ZEB bydisseminating information
through tours and byencouraging customers
to experience the benefitsof net-zero construction.

Having been registeredas a ZEB Planner, weoffer potential customers
consulting services suchas proposal and planningfor ZEB conversions aswell as design,
installation, andoperation services.

4 units

Gross floor area (m2)

400,000
323,910300,000
200,000
102,300

100,000
0

Planning record

Construction record

Number of ZEB assets■ ZEB track record■ ZEB Planner■ ZEB Leading Owner

ZEB

9 units

5,626

9,812

FY
2017

FY
2018

FY
2019

131,405

FY
2020

123,351

FY
2021

FY
2022

DAI-DAN REPORT 2023

28

Value Creation in PracticeE(Environment)

Expanding a Business That Contributes Lower Environment Impacts

Expanding a Business That Contributes
Lower Environment Impacts—Reducing waste through air filter regeneration services—
Air filter regeneration using supercritical CO2

Our air filter regeneration is mainly employed for filters used at semiconductor
factories, and since we launched the service in 2014, we have received morethan 300 orders. As the regenerated air filters can perform as well as new
filters, we are seeing a steady increase in the number of new orders. In the last
fiscal year, due to a global slump in semiconductor industry activity, thenumber used dropped, but in the long term the semiconductor industry is
expected to achieve significant growth as the basis for economic security anddigital industries. As such, we forecast that orders will pick up again.
Going forward, we predict a growth in demand both in Japan and overseas,and so we are constructing a robust sales network and proactively promotesales activities.

Customer

100
79

80
60

87

92
70

51

40
20
0

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

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

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

Regenerated
filter■ No. of orders for the service

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

Used filter(Performance degraded)(Performance recovered)

Expanding the filter regeneration service overseas

Air filter regeneration plant

Helped reduce about 50 tonnes of waste
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.

In order to contribute to an international sustainable society, we will
start providing our air filter regeneration service outside Japan. As partof this expansion, we have established a wholly owned subsidiary,
DAI-DAN Taiwan CO., LTD., on the island, home to a flourishingsemiconductor industry. This fiscal year, to further bolster our sales
activities in Taiwan, we will strengthen our sales personnel and actively
push such activities.
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 our business to cater not
only to the air filter regeneration market in Japan, but elsewhere too.
Following on from our businesses in Singapore, Thailand, andVietnam, we will enter the mechanical and electrical (M&E) workbusiness in Taiwan, and aim 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,electrical work, air conditioning
work, plumbing work, firefighting
installation work, and mechanicalequipment installation work
design, supervision, andimplementation■ Effects of using regenerated air filters

30% less cost than replacement

100% less waste
Used filter waste
100%

Cost of new filters
100%

30% less CO

2

Expanding the service business

CO2 for new filters
100%

Cost ofregeneration
70%

CO2 forregeneration
70%

No
waste
Conventional
methodRegeneration

Conventional
methodRegeneration

Conventional
methodRegeneration

For corporate activities in recent years, efforts to reuse
resources and reduce waste to accomplish the SDGs areindispensable, and demand for this service is rocketing. In
fiscal 2022, we enhanced our regeneration plant to improvethe efficiency with which we regenerate filters. This has allowed
us to meet international demand for the service, and it has also
made it possible for us to look into expanding theseregeneration services to other filter types.
In the future, we will expand the scope of air filters and aim
for even greater sales in this service business.

* Filters are generally reused five or six times, after this they are disposed of as waste.

29

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

30

S

(Society)

Value Creation in PracticeLong-term vision

Acquiring a manufacturing business license for regenerative medicine products—Creation of facilities that support users——Facility construction and contracted services—

Working toward optimal medical environments

Planning

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

Develop methods ofsupporting operations

Providingoperation support
services
Provide feedback
based onconsultations whenproviding services

Cellab HealthService website

Cutting-edge technologies and collaborations —Creation of manufacturing environments—
At the Kobe City Eye Hospital, they carried out the first clinical research into processing “human-derived iPS cells created specially for
medical treatment” to form strings of retinal pigment epithelium (RPE) cells for patients who have an RPE deficiency.*1
Part of the work involved in manufacturing is undertaken by humanoid robots,*2 and the environments in which these robots are
installed use the All-in-one CP Unit™ product that we havedeveloped. The units are widely used for cell manufacturing
environments used by robots but also for manned work andequipment.
Through cutting-edge initiatives like this that use humanoid
robots and the experience that we have gained so far, we willcontribute to new manufacturing environments with a focus on
future mass production and automating production.
According to a press release from the Kobe City Eye Hospital dated December 9,*1 2022*2 The humanoid LabDroid Maholo, developed by Robotic Biology Institute Inc.

S (Society) Achieving High-Quality Medical Environments

S (Society) Achieving High-Quality Medical Environments

The engineering behind facilities that provide advanced
medical care needs to consider the viewpoint of the medical
professionals and patients that use the facility, and sounderstanding how they actually operate is vitally important. In
collaboration with our subsidiary Cellab Healthcare Service
CO., LTD., we propose facilities that users can maintain andmanage safely and for the long term, by combining our
expertise in equipment, but also operation methods used
post-installation.
Through exhibitions such as Regenerative Medicine
JAPAN, we have been publicizing the products and systems
we have developed using our original airflow control
technologies (such as the AIR Barrier booth™, All-in-one CP
Unit™, and Hotto Cure™) and these are now in use at a range
of facilities—from research institutions to manufacturing
factories and hospitals. (In fiscal 2022, there were orders for
14 units.)

In May 2023, Cellab Healthcare Service received a manufacturing business license for regenerative medicine products as set out in
Article 23, Paragraph 22-1 of the Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical
Devices from the Ministry of Health, Labour and Welfare for its Cellab Tonomachi cell processing facility (CPF).
The CPF uses Dai-Dan’s new technology, Air Barrier CPF™, to address issues related to maintaining and managing a high-purity
clean area, a responsibility that conventionally fell on CPF operators. Such areas have very strict restrictions on environmental bacteria
and the amount of dust, so they require scrupulous management, and given the large size of the rooms the burden on users is
significant. At Cellab Tonomachi, new technologies successfully enabled a high-purity clean area 33% smaller than in conventional
facilities, and we were able toreduce the burden on operators.
This facility will continuously
acquire data and make improvements,
and the knowledge and expertise
gained in this way will contribute to
the creation of manufacturing
environments that support users,by being fed back into ensuring
manufacturing safety and constructing
systems that are easy to operate.

Value Creation in Practice

Value Creation in Practice

We have set achieving high-quality medical environments as an area of materiality, and are working to promote safe environmentsthat support high-quality medical care. To that end, we are contributing to the regenerative medicine field, and providing hospitals
with safe, 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 toenhance our services to offer integrated design, installation, and operation support to achieve higher-quality medical environments.
In addition, we have ourselves started providing a contracted service for cell production, and we aim to make further contributions
to the industry.

DAI-DAN REPORT 2023

Achieving High-Quality Medical Environments

How We Are Providing Comfortable,
Optimal Spaces

Achieving High-Quality Medical Environments

31

S(Society)

Start of contract manufacturing business for cell preparations—Full-scale launch of a new service—
Cellab Healthcare Service has started a contract manufacturing business for cell preparations at Cellab Tonomachi. A contracted
product is a new trial drug called GAIA-102, a platform for NK-like cells, that was developed by GAIA BioMedicine, Inc. GAIA-102 is
expected to prove an effective
treatment
methodforsolidmalignant tumors such as innon-small cell cancer of the lung orchildhood cancers, that are nottreated effectively with standard
treatments.
This is the start of the contract
business, but we aim to expand it
going forward.

DAI-DAN REPORT 2023

32

Value Creation in PracticeS(Society)

Wellness Initiatives in the Construction Industry/Resolving Social Issues through Collaboration between Industry and Academia

Resolving Social Issues through Collaboration
between Industry and Academia

Wellness Initiatives in the Construction Industry* Reforms using designs that look to create richer lives by considering health through the lens of physical and mental health, the environment, and society

Wellness initiatives at site offices■ Wellness site office layout and measures

Café space
Digital signage

Joint research with Hokkaido University into infection countermeasures and decarbonization
With the global spread of the COVID-19 pandemic, we looked anew at the importantrole ventilation plays in reducing infection risks. At enefice Hokkaido, we use adisplacement ventilation system with more ventilation frequencies than normal air
conditioning. As a result of studies into what kind of impact this sort of system has on
infections, we confirmed that by correctly controlling the amount of ventilation forpollutants such as CO2 or aerosols, there is improved control over the spread of suchpollutants.
Suppressing the demand side (maximum demand power) of electricity supply anddemand as much as possible is increasingly important. To do so in buildings in cold
regions, optimal solutions—which must take into account various factors such as theseverity of the cold outside, the amount that can be generated through solar power, or
desired indoor temperatures—will change. Based on a full year’s operation data from
enefice Hokkaido, it has become clear what parameters operations should focus on to
help curb demand.

■ Ventilation system study withstudents from Hokkaido University

S (Society) Resolving Social Issues through Collaboration between Industry and Academia

S (Society) Wellness Initiatives in the Construction Industry

As of May 2023, we had implemented wellness measures at three site offices. Based on the knowledge we have gained by making
our own buildings into wellness offices, and feedback from those actually working at site offices, we investigated incorporated
elements into site offices, refurbished them, and are now operating them.

Leveraging the synergies between our technologies and expertise and the academic knowledge found at universities, our aim is tocreate new value that will resolve society’s issues, and as such as carry out research activities in collaboration with universities. Key
examples of these are studies with Hokkaido University into the risks of infection from air conditioning and building operation
optimization in cold regions, and a study with Shibaura Institute of Technology into creating workplaces that support health and easeof working, both of which were carried out in 2022.
By providing students and researchers with the opportunities to undertake experiments, and the venues and equipment that are
indispensable for their research, we are helping to boost their motivation and research capabilities, and this will tie in to thedevelopment of a more sustainable society.

Value Creation in Practice

Value Creation in PracticeCurrently, in the construction industry, a major problem is labor shortages brought on by the declining working population. As such,creating working environments that make it easier to work and efforts to raise productivity are vital to the industry’s sustainable
development.
We have set designing working environments where people want to work with attention to health and safety as one of our areasof materiality, and have researched the impacts of offices on health and intellectual productivity. Using this knowledge, we recognizethat site offices are workspaces that can be as creative as normal offices, and we are carrying out trials to improve wellness* at site
offices.
In this way, we are running studies into how to improve ease of working at worksites, and introducing technologies that raise theefficiency of installations. Through these, we plan to go beyond the traditional borders of our company, and enact initiatives to ensure
younger people see the construction industry as a better place to work and more appealing.

BGM
Biophilic design (plants)

Joint research with Shibaura Institute of Technology into wellness
Biophilic design (wood-effect furniture)

Task-specific cooling and heating chair

Aromas

Effectiveness trials into wellness site offices
Both before and after refurbishing the site offices, we carriedout questionnaires with the people that worked there, andused these to survey the effect of different elements.
The results made it apparent that the elements of soundand smell made a particularly significant impact on how easy
employees found it to work there. Practical efforts such as theintroduction of digital display signage were also favorably
received, and we received growing feedback that there will be
synergistic effects with DX. Elsewhere, the introduction ofplants, which are increasingly a feature of offices, contribute tointellectual productivity, and employees spoke on their positive
impact on the atmosphere, but some also pointed out thedifficulty of looking after them, a problem unique to site offices.
In the future, based on feedback from employees, we plan tomodel ideal wellness site offices in a way that is easier toimplement.
33

DAI-DAN REPORT 2023

■ Effect on the efficiency of site office employees’ workof different wellness elements (open answers)
BGM
AromasPlantsWood-effectfurniture
Café space
020■Greatly improves■No impact■Greatly worsens

40

60■Improves■Worsens a little

80

100

(%)

In collaboration with a team from Shibaura Institute of Technology’s School ofArchitecture led by Professor Takashi Akimoto, we have been conducting joint
research into wellness reforms at offices since fiscal 2020.
At that time, we constructed an experiment lab on the grounds of the Dai-Dan
Technical Research Laboratory and through various internal settings and amounts ofplant life, studied the effect they have on workers’ intellectual productivity. The nextyear, in fiscal 2021, Dai-Dan employees participated in experiments as subjects, andat actual offices experiments investigated the impact on workers of plant placement.
Then, in 2022, we held actual experiments, including with subjects at our Hokuriku
Branch, an office that was constructed based on the knowledge gained from theprevious two years of research. These clarified the physical and mental effects biophilic
design (which uses wooden materials and plant life) has on workers.
We carried out linked research by sharing knowledge between Dai-Dan anduniversity students and experts, at every stage from planning to implementation andanalysis, and working together. Through these efforts, we provided students withvenues and opportunities to gain research experience. We also created chances forthem to come into contact with the construction industry. For the social issue that
directly faces the next generation, changes to ways of working, we were able to workon some unique research that takes in new methods and ideas.

■ Experiment with students from
Shibaura Institute of Technology■ Studies at Hokuriku Branch, which
was built based on research results■Improves a little■Worsens

DAI-DAN REPORT 2023

34

Value Creation Drivers

Value Creation Drivers

Value Creation
Drivers
In this section, we introduce the three driving forcesthat power the way we create value: the innovation
capabilities that create new value as we look to the
future, the engineering capabilities that address issues
and provide value, and the practical competence in thefield that embodies our comprehensive strengths.

37

Innovation Capabilities

39

Promoting R&D

42Intellectual Property Management

43

Engineering Capabilities

43

Creating BIM Work Flows That Utilize CDEs

45

Opening of Offsite Facilities for Prefabricationand Modular Processing

46

Advanced Development Technologies

49

Practical Competence

50

Installation Examples

53

Enhancing Our Installation Expertise andAbility to Provide Design Solutions

54

35

DAI-DAN REPORT 2023

Overseas Business

DAI-DAN REPORT 2023

36

Value Creation Drivers

Innovation Capabilities

Innovation Capabilities
3. Creation

Fundamental research that
ensures quality

Technical development that allows
us to deliver new value to customers

Innovation not restricted to the
M&E services field

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

We are developing technologies that reduce
environmental impacts and advanced spacecontrol technologies, with the aim of providing
customers with solutions that grasp their realissues, in growth fields like decarbonization,
electronic devices, and regenerative medicine. Bylinking these with, and optimizing these to, thevarious fields that have grown from our coretechnologies, we will react flexibly even in a highly
uncertain age and successfully create sharedvalue—economic value, but also social value—by
responding to societal needs.
Furthermore, by promoting collaborations withexternal partners, such as through open innovation,
we are able to deliver value in a timely manner.

Through open innovation activities to co-create
and cooperate with external bodies—including
universities, companies in other industries, andstart-ups—we are working to develop practicalapplications 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, andhas been highly praised from inside and outside thecompany as an example of shared value creationthat aims to resolve environmental issues.
Moreover, we will start new R&D and businesscreation themes as part of our ongoing Mid-Term
Management Plan, Preparation Stage.

To act as a 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.

Value Creation Drivers

Filter regeneration businessNewbusinessNewbusiness

New business creation
Contributing to a richer,more sustainable society

Volatile organic
compound (VOC)
filter cleaning
service

Contract manufacturingservice for cell
preparations

All-in-one CP Unit™
P31 & P40

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

Air purification anddepressurizing unit
P48

Industrial facilities
field

Decarbonization field

Factories

Design, installation, andoperation of buildings,
achieving ease of working
and decarbonization

Cloud-based
luminance
control system
P39

Officebuildings

Promotion of R&D

Innovation Capabilities

Innovation Capabilities

Newbusiness

Regenerative medicine
business

Value Creation Drivers

2. Growth

1. MaintenanceKaratto Operation™
P48

Expansion of installations atdata centers and electronic
device factories

R&D
institutions

Medical/welfare
institutions

Foodfactories

Factories

Strengthening core technologies
Creating shared value

Air
Cutting-edge
tech

Light

Open
innovation

WaterIntellectual property management

37

DAI-DAN REPORT 2023

Virtual Duct Clean
Room System™
P47

Core business expansion and new business creation forsustainable space value creation
DAI-DAN REPORT 2023

38

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. In
order to respond to two of the pressing issues facing the construction industry, labor shortages and the complexity of installations, weare conducting R&D and verifications into installation efficiency improvements that can support high-quality practical competence.

R&D
Case Study

1 Achieving both comfort and decarbonization

8.5
7.5
6.5
4

Utilization data

■Investigation into the effects ofperceived-light design
In actual usage environments, we were able to verify that spaces felt
bright, but with a 60% reduction in energy consumption.

R&D into how to use air conditioning to combat infection
The worldwide spread of the COVID-19 pandemic affected
office environments and the way that people work. At Dai-Dan,the pandemic also forced us to look at the functions that AC
provides after it was confirmed that respiratory droplets were
one mode of transmission for the disease. Therefore, as a way
to prevent its spread, we needed to fully understand how those
droplets and other particles move in ventilation and other AC
airflows. Using computational fluid dynamics (CFD)
simulations, as well as real experiments, we investigatedquestions such as whether particles move differently for
different AC systems, and whether droplets that have fallen to
the floor can be dispersed anew by people walking acrossthem.
We will endeavor to provide effective AC and ventilation
environments that work against infection.

2

0.5

1.0

■Redispersal testingTime

Roll screen open or closed

Wireless illuminancesensor(Weather prediction)

Luminance control using the cloud■Cloud-based luminance control system
When natural light is being used, the system helps ensure the brightness (luminance) of thespace is kept at a certain level at all times. Doing so maintains an optimal balance between
energy saving and comfort.

4 Creating high-quality medical environments

Development and joint research of clean room units for the regenerative medicine field

Reducing environmental impact byextending facility lives■Impact of the amount of carbon film left incopper pipes on corrosion
Largeamounts

Pitting

500 µmAmount of carbon film

To achieve a recycling-oriented, decarbonized society, we consider the effective useof resources; that perspective has led us to become highly interested in extending
the service lives of building equipment. One obstacle to extending the service life ofsuch equipment is the corrosion and deterioration of piping systems, which arecaused by a combination of three elements: environment, materials and operations.
We conduct case study surveys, and work to clarify corrosion and deterioration
mechanisms through lab testing. In recent years, we have been advancing research
into the effect on corrosion of a carbon film being left on the inside of copper pipes
after manufacturing. Through lab experiments, we have discovered a quick methodof evaluating the difference the amount of carbon residue has on corrosion of thepipes. Based on its results, we are developing quality-control methods to extend theservice lives of heat exchanger copper pipes used in air conditioners. We reflect theresults that have come from R&D like this in our designs and installations, and these
are contributing to longer lifespans for equipment. The results are not only usedin-house, by publishing them in research papers or other means, we are also sharing
them outside the company.
DAI-DAN REPORT 2023

0.0

Weather

Clarifying corrosion mechanisms and developing anti-corrosion technologies

39

Air velocity (m/s)

Season

R&D
Case Study

R&D
Case Study■CFD simulation of different AC systems

Roll screen

Optimal lighting output table
1
NB value

3 Providing optimal air conditioning environments

Innovation Capabilities Promoting R&D

13

Range people consider brightInnovation Capabilities Promoting R&D

At Dai-Dan, we aim for ZEBs that contribute to decarbonization but also offer ease of working. To this end, we carry out lighting designand control measures that create environments that feel bright, but use less than half of the energy of a normal office building.
We have developed perceived-light designs using expertise gained through our own ZEBs, as well as a cloud-based luminance control
system that manages optimal light levels by linking with natural light. As a result of our introduction and investigation of the system at our
Hokuriku Branch, we have cut lighting energy consumption by 60% compared to normal office buildings, while also ensuring spaces feellight. Putting the expertise and technologies we have developed so far to use, we plan to continue contributing to the spread of ZEBs.

Promoting R&D

Value Creation Drivers

Value Creation Drivers

Decarbonized environments that support ease of work and consider how humans sense light

R&D
Case Study

Innovation Capabilities

Corrosion: Pitting
Characteristics: Corrosion is localized.
→ The pipe could start leaking
in a short time.

In regenerative medicine, there is a need for clean
environments where cells can be safely handled. In responseto the wishes of many doctors and researchers, we developed
the All-in-one CP Unit™, a clean room unit that can easily be
installed in limited space.
The modular system features linked functions from achanging room to a cell preparation room, everything needed
for a cell cultivation and processing facility. Compared toconstructing a normal clean room, these units provide a clean
room environment that saves space and money while requiring
minimal delivery time.
This product has been introduced at the Kobe City Eye
Hospital, and is also being used there for joint research. The
product is also contributing to cell production clean
environments that use robots (see page 31 for more details).

■All-in-one CP Unit™

500 µmCorrosion: Surface-wide corrosion
Characteristics: Corrosion is widespread but oflimited depth.
→ Pipes can be used for a
Smalllong time.
amounts

DAI-DAN REPORT 2023

40

Value Creation Drivers

R&D
Case Study

5

Innovation Capabilities

Promoting R&D/Intellectual Property Management

Intellectual Property Management

Providing high-quality works

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.

Using digital tools to visualize installation processes

Intangible assets
Land-lease rights, etc.

Dai-Dan Intellectual Property Strategy 2022 is our internal strategy for promoting
IP creation and its utilization in order to raise the value of technological assets
throughout the company. In addition to our IP rights, such as patents and otherproperties, we are constructing systems whereby employees can propose theirown original, useful ideas for design or installation, and bring these together. In
fiscal 2022, six useful ideas that were most often put into use were awarded
in-house as Exceptional Ideas.
In the future, we will continue to work to foster greater awareness of IP among
all employees and to cultivate a culture of ingenuity, and we will create new IP.
Total IP held:

Intellectual assets
Human assets
Customer networks, etc.

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

IP rights

Innovation Capabilities Intellectual Property Management

Innovation Capabilities Promoting R&D

360°

Creating intellectual properties

Value Creation Drivers

Value Creation Drivers

As part of our efforts to raise task efficiency and enhance productivity at construction sites through DX, we developed Construction
Visualizer 4D™, a tool that helps visualize installation processes that uses a 360° camera and photo-measurement technologies,
and through trials at worksites, we have been enhancing its functionality. To ensure that anyone working onsite can use it easily, we
have also been making it more versatile, and in fiscal 2022 the visualizer was used at 13 worksites.
One such project involved using the tool’s photographic measurements to create a 3D model of the inside of a complex machineroom that required complicated piping systems, which was much more efficient than creating conventional blueprints. When we used
to replace equipment, we would use tape measures or similar and draw up blueprints, but by doing the majority of this extensive onsite
work using 3D modeling, we have reduced the work involved by 30%. Going further, to make even greater labor savings, we areadvancing development aimed at improving function, such as through image-recognition AI that can automatically detect piping
systems and different instruments.

Patents, etc.

223 properties(As of the end of FY2022, including aforementioned useful ideas)

Broader understanding of IP:
IP + “hidden IP,” useful ideas, technical information

Blueprints are made for existing
equipment based on the 3D models

Another avenue by which we are trying to raise task efficiency and enhance productivity at construction sites through DX is our joint
development with WHERE, Inc., a company that provides IoT solutions, of MonoBooker™. This solution visualizes information suchas location data for cherry pickers and other scaffolding equipment, or their operational status. The system then allows users to adjust
their reservations anytime and anywhere.
At larger construction sites, checking
where such equipment is and who is
Gateway
using it requires a great deal of timeand effort, and even more so to adjust
Cloud serverreservations. Under the MonoBooker™
Beaconsystem, transmitters are attached toscaffolding equipment, and its locations(Transmitter/receiver)and operational status can be managed
Smartphone/tablet
using the cloud. Using a computer,tablet, or smartphone, users can verify
or book equipment wherever they are.
Moreover, management departments
BLE tagor similar bodies away from the worksite(Transmitter)
can also check whether equipment is inuse, and analyze operation rates tooffer advice for multiple worksites suchas about when to return equipment.
Check if parked or in use
Including trials at our own installationsites, in the period up to fiscal 2022,
Usage
MonoBooker™ has been used at ten
checklarge sites.

41

DAI-DAN REPORT 2023

Design- and installation-related useful ideas are, like patents resulting from R&D,
important intangible assets.
Based on Dai-Dan Intellectual Property Strategy 2022, to collect together individual
useful ideas, we carry out internal training related to IP gathering and application, oneof which is e-learning. This is leading to the company-wide rollout of useful ideas andimprovements to our technical capabilities.

Utilizing our IP
Efforts toward the new-business-related technologies that will support Dai-Dan’s future

To reinvigorate both our core businessof mechanical and electrical (M&E)
work and our new businesses, wemust expand our business portfolio
through open innovation and other IP
activities. We carry out IP management
at every stage, from planning throughto operations, to accumulate IP undera broader understanding of the term,
and apply it in order to objectively
present our strengths, secure acompetitive advantage, and as a
stepping stone toward alliances andco-creation.

■Gathering and utilizing IP in technical development
Strengths
recognizedoutside thecompany

Constructing our
IP baseIdentifying andprotecting strengths

Diligent technicalcreationOpen and closed:
Implementation ofstrategies, etc.

Gathering andmanaging IP toactually use it

Forming a robust portfolio

Developing worksite scaffolding equipment reservation solutions

In-house e-learning system

Securing
IP rights

3D models can be made of existing
equipment using photo-measurement
technologies

Securing“hidden IP”

A 360° camera makes phototechnologies more versatile

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)

Planning

Development

Rollout

Operations

Phase

DAI-DAN REPORT 2023

42

Value Creation Drivers

Engineering Capabilities

Creating BIM Work Flows That Utilize CDEs

Engineering Capabilities

Creating BIM Work Flows That Utilize CDEs
We have positioned building information modeling (BIM) as a platform for work flows, and as part of our project to replace our Niigata
Branch, we have used a common data environment (CDE) to share information with multiple people involved in the project, both fromwithin and outside the company, and by doing so are improving task efficiency.

Installation plans that utilize the phase setting function

Engineering Capabilities Creating BIM Work Flows That Utilize CDEs

Engineering Capabilities Creating BIM Work Flows That Utilize CDEs

During the design process, we carry out technical computing that uses architectural models, equipment selection, linking in withintegration systems, and various simulations, but we have also created and operated approval flows using BIM models.

Value Creation Drivers

Value Creation Drivers

During the installation process, we set mechanical and electrical (M&E) work phases that match the overall process. By doing so, theinstallation plans that we propose and share are able to show installation progress for everyone involved. After work begins, points ofnote can be recorded on the BIM model to conduct quality control, and progress can be recorded on walkthrough images createdusing a 360° camera.
In addition, using the advantages of BIM as a database, we can use the system to manage materials and equipment orders anddeliveries, and for BIM model-connected marking systems, as well as to fabricate processed pipes. This helps to enhance task
efficiency for projects.

Design-related tasks

Linked with technical computing

Installation-related tasks

Linked with creation of various lists

Quality control by linking BIM models

Progress management by linking 360° photos and BIM models

Use of a BIM model-connected marking system

Use for materials and equipment orders management

BIM model for
the Niigata Branchreplacement
project

Linked with integration system

43

DAI-DAN REPORT 2023

Illuminance simulation

DAI-DAN REPORT 2023

44

Value Creation Drivers

Engineering Capabilities

Opening of Offsite Facilities for Prefabrication and Modular Processing/Advanced Development Technologies

Advanced Development Technologies
Opening of Offsite Facilities for Prefabrication andModular Processing

Interior environments optimized to the building application

Providing pharmaceutical plants and similar withFor datacenters, etc.

Initiatives aimed at providing stableroom pressures

Modeling by using CFD simulations
and mockups

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.

At Dai-Dan, we have a long track record of installations atdata centers. That experience has enabled us to identify theissues that they face, and so to resolve these we run studies
using computational fluid dynamics (CFD) simulations andmockups.
Value Creation Drivers

Value Creation Drivers

Labor shortages resulting from the rapid aging of engineers and the dropping numbers of those entering the industry, combined with
reduced site work due to further changes to the way people work, has made energy savings, labor savings, and improvements to
productivity at installation sites an issue of the highest priority for the construction industry. As one way of addressing this issue, wehave opened an offsite facility to process piping systems, in Saiwai, a ward in Kawasaki, Kanagawa Prefecture. Now, we have started
providing access to the facility to subcontractors.
By processing piping systems, and advancing their prefabrication and modular processing, our aim is to reduce the number oftasks required at the end site, to make such tasks more uniform, and to raise the quality of installations.
At the offsite facility, we have permanently installed equipment and machinery needed to process piping materials, including ceiling
cranes, air pipe equipment, welding equipment, pipe-flaring machines, fully automated bandsaws, and metal-processing apparatus.
It also helps us to take on projects in the Tokyo metropolitan area. In addition to that area, in July 2023, we opened up another offsite
facility in Tenri, Nara Prefecture, to serve the Kansai region.

Highly precise room pressure control system■Simulation of floor-blown airflow distribution〈During the design phase〉
Poor airflow balance■Example of modeling by using a mockup
Air blow:Engineering Capabilities Advanced Development Technologies

Engineering Capabilities Opening of Offsite Facilities for Prefabrication and Modular Processing

Excessive
AC unit air blow:

Excessive

air velocity→ Reverse flow fromfloor ports〈Study〉
Improved airflow balance

Perspective view of an offsite facility

Air blow:

Uniform
Processing yard

Fully automated bandsaw

Ports close to
AC unit with

Adjustable
aperture→ No more reverse flowfrom floor ports

Pipe-flaring machine

Angle metal-processing apparatus

Indoor pressure [Pa]■Example of improvements to room pressure controllability

Circulating air
Outside air

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.]

DAI-DAN REPORT 2023

Air
conditioner

Intakeside

Time [min.]45■Mixing of outside and circulating air in outdoor air cooling(Intake side)

0°

Photo of mockup

Temperature
distribution on AC
intake side

Outside Circulating
air
air

3：1

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

Max. 18.4˚C, Min. 17.5˚C
Max. ⊿T: 0.9˚C

DAI-DAN REPORT 2023

46

Value Creation Drivers

Engineering Capabilities

Advanced Development Technologies

Low-cost clean room

Energy-saving, highly precise humidity control system

Infection prevention via a simple installation

Surgical rooms that are comfortable yet save energy

Equipping electronics and precision-item
factories

Evaporative humidifier enabling highly precise
humidity control

For simple infection countermeasures at medical
and care facilities

For energy-saving dehumidifying for surgeries

Virtual Duct Clean Room System™

WIT WET™

Air purification and depressurizing
unit (INF Series)

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.

① Similar low-cost to direct blow AC systems② Good temperature, humidity and clean factor uniformity

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.

* 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.

Features④ Easy-to-relocate AC unit ensures that layouts can be changedin the future

Features② 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*.

特徴interior.
① Cools and dehumidifies surgery

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

③ Reduced pressure loss during seasons that do not require
humidification① 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.

② Highly energy-efficient air conditioning system uses control
technology for multiple air conditioners that can
independently heat or cool at the same time.
③ The air conditioning system in each room is a complete unit
so it is easy to maintain.

■System concept■INF SeriesSpecial mixing unit

Clean air is supplied far
beyond production
equipment.

Humidified air
OutletProduction
equipment

Inlet* Tendency of an airflow to follow walls

Dry airand objects■CFD simulation

Humidified air

Dry airInlet
dew point
temperature
Time [s]Airflow travels
beyond production
equipment

INF-101 (Floor standing type)Double coil

Dehumidified for a comfortable environment
Temperature

Humidity

26℃

60%

Conventional
air conditioning system

Setting: 9˚CDP

22℃

Time [s]Dehumidified
andcomfortable

Comfortabletemperature andhumidity

24℃

Inlet
dew point
temperature

Karatto Operation

Conventional
air conditioning Coolingsystem■WIT WET’s rotating humidifying element in action

40%

Reheatingwith an electric heater

Temperature
Relative humidity

Energy-saving
withheat recovery

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

Aperture: 0˚(Fully closed)

DAI-DAN REPORT 2023

INF-201 (Window unit)

Controllability:
Outletdew pointHightemperature

Unbalanced
airflow discharge
port

47

HEPA filter

Setting: 9˚CDP

WIT WET
Rotating humidifying
element

Production
equipment

OutletControllability:
dew pointLow
temperature

Single coil

Unbalanced airflow
discharge port

Dew point temperature [˚CDP]

AC
unit

Stationary humidifying
element

Dew point temperature [˚CDP]Conventional evaporative humidifier
Low-speed
airflows traverse
the production area
at work height.

Engineering Capabilities Advanced Development Technologies

Engineering Capabilities Advanced Development Technologies③ No duct work required. Little time needed to install.

Value Creation Drivers

Value Creation Drivers

Features

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; this system
resolves this and boasts improved humidity control. Anothercharacteristic of this evaporative humidifier is that it allows energy
saving through its cooling effect and the precise control overhumidity that it offers. It is also suitable for locations other than
datacenters, such as offices, hospitals, or art museums.

Karatto Operation™

Aperture: 45˚

Aperture: 90˚(Fully open)

Uses exhaust heatfrom cooling

Reduces energy use dramatically

DAI-DAN REPORT 2023

48

Value Creation Drivers

Practical Competence

Installation Example ①

Installation Example ①
OfficeExceeding customer expectations with knowledge, experience and action

Practical CompetenceThis complex comprises three buildings in its grounds—an office building, logistics facility building,and residential building—and was completed in March 2023.
We carried out the installation of air conditioning equipment in the office building, and here we
introduce the heat source equipment and an overview of the offices’ air conditioning equipment.

■Building outline
Installation Example ①

Taito, Tokyo

Use

Tenant office building

OfficeScale

Kuramae JP Terrace
JP Lion Building

Gross floor area: 29,821 m2
Thirteen stories above ground, one-story
rooftop structure

Construction

Steel (partial steel reinforced concrete),seismic isolation

Completed

March 2023

50

■Overview of the equipment

Installation Example ②

Heatsources

General hospital

Toyota Memorial HospitalAir
conditioning

51• Air-cooled heat pump module chiller
180 kW (60 HP) × 13 units• Hot-and-cold-water pump
845 liters/min × 3 units
423 liters/min × 2 units

Customer review
While the overall finish data for this project was March
2023, the office building was actually in provisional use
around four months before that, which allowed tenants tostart work.
After we started this project, the pandemic meant thatmeetings were mostly carried out remotely due torestrictions on people gathering, and then during the latter
half of the project, the global situation changed withsemiconductor shortages. This made our workflow very
difficult, an example being that we couldn’t predict shipping
times for materials and equipment. Everyone came up withoriginal ideas, though, and we could enable provisional use
without any delays. We were also able to hand over thecompleted project to the client without incident.
I am indebted to everyone’s assistance, and thank you
for granting me this opportunity to express my gratitude.

Practical Competence Installation Example ①

Practical Competence

Location

Value Creation Drivers

Value Creation Drivers

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.

Kuramae JP Terrace
JP Lion Building

Toshiharu Yamamoto, Country Manager
Nobuyoshi
Osawa,
Director
TakayukiTakizawa
DigitalJAPAN
RealtyPOST HOLDINGS Co., Ltd.

Offices:
Outdoor-air, latent-heat AHU × 31 units
High-sensible-heat PAC
112 systems × 528 units

Comment from the supervisor
With this project, as a way of dealing with the heat load, we
utilized air-handling units (AHUs) to process outdoor air andlatent heat, and package air conditioners (PACs) to tackle
sensible heat sources such as indoor heat buildup andperimeter zone load.
AHUs use cold and hot water flow controls, CO2 density,and environmental sensors to control VAV and INV air volume.
PACs, meanwhile, use high sensible heat operations that raise
the refrigerant temperature more than conventionally, which
reduces the load on compressors, and helps to save energy.
In terms of the perimeter zone, we used flared flows(multi-directional exhaust vents), that do not even shake theoffice blinds, for a comfortable perimeter space.

Installation Example ③
Research facility

Nipro Corporation
Head Office52

Enhancing Our Installation Expertise andAbility to Provide Design Solutions

49

DAI-DAN REPORT 2023

53

While the original intention was for this building to be rented
by multiple tenants, during the planning stage it was
decided that a single company would lease the entire
building, and installing partitions became part of the project.
As well as tenant partitions, common spaces also hadchanges added, and every day was spent struggling tocreate installation plans. But
with the help of the client, thedesign office, general contractor
reps, and all the subcontractorsthat were part of this project, we
completed it without any issues.
Thanks!

Yu Niikura, Grand Project Master
Atsushi Mogi, Grand Project Master
Engineering Department 2
Engineering Department 4, Tokyo Head Office
Tokyo Head OfficeDAI-DAN REPORT 2023

50

Value Creation Drivers
Installation Example ②General hospital

Installation Example ③
Research facility

Toyota Memorial Hospital

Nipro Corporation Head Office

Toyota Motor Corporation opened a new general hospital, Toyota
Memorial Hospital, in May 2023.
The concept behind the hospital is to be the district’s foremost
hospital, and one that gains the trust of all who use it. As such,
efforts are based on the goal of providing top-level, advanced acutemedicine, supporting Japan’s super-aging society, and ensuring
patients have peace of mind in choosing a Toyota hospital.
Our role in the project was the installation of electricalequipment.

Nipro Corporation, a comprehensive manufacturer of medical
devices, moved its head office to KENTO Innovation Park in Settsu
in February 2023. The building was opened to act as a hub for open
innovation into medical technologies through collaboration between
industry, academia, government, and private organizations centeredon the cities of Suita and Settsu, and the nearby National Cerebral
and Cardiovascular Center.
Working under Kajima Corporation, our role was to install air
conditioning equipment.

Location

Hospital

Scale

Gross floor area: 73,588.35 m2
Nine stories above ground, one under,
two penthouse floors
Number of hospital beds: 700

Construction

Steel (partial reinforced concrete),seismic isolation

Completed

November 2022

■Overview of the equipment
Power receiving
methodExtra-high-voltage: 77 kV
Main and backup lines × 2

Power receiving
and transforming
equipment

Indoor cubicles:
Extra-high-voltage substation × 1
High-voltage substation × 4

Backup power
generationequipment

6.6 kV, 2,500 kVA × 2
Underground fuel tanks:
Diesel, 80,000 liters × 2

Otherequipment

Sub-main cable service, secondary
power supply service, electrical lightoutlets, DC power supply, uninterruptible
power supply, central monitoring,lighting controls, nurse call system,
disaster equipment (automatic fire alarmsystem, broadcasting equipment, guidelights, emergency lighting, etc.)

DAI-DAN REPORT 2023

With the aim of providing high-quality healthcare andbeing the district’s foremost hospital, Toyota Memorial
Hospital has been reborn.
During its construction, there were various problems—such as changes to plans or processes—but Dai-Dan’s
workers were able to respond quickly and flexibly to get
the job done. I am extremely grateful.
Going forward, planned renovations within the hospitalgrounds will continue for two years or more, and we hope
we can count on all your assistance during this time.
Koichi Sakurada,
Project
Manager
Toshiharu
Yamamoto,
Country
Manager
Building Facility
Planning
Nobuyoshi
Osawa,
DirectorGroup No. 2
Building
Planning Dept.
DigitalRealtyPlant & Environmental Engineering Div.
TOYOTA MOTOR CORPORATION

Comment from the supervisor
During the two-and-a-half-year project at the hospital, wefaced difficulties in the form of working environment
consideration resulting from the pandemic, andchallenges procuring materials and equipment because
of semiconductor shortages. Despite this, our use oftablets and apps to share
information and improve work
efficiency ensured that we wereable to finish incident-free.
I would like to express my
deep thanks to the client, andeveryone else involved.
Masaki Hirano, Project Master
Engineering Department 1
Nagoya Branch■Overview of the equipment

Settsu, Osaka

Use

Office, conference center, research facility

Heatsources

Scale

Gross floor area: 21,596 m2
Seven stories above ground, one-story
rooftop structureAir
conditioning

Construction

Steel

Completed

January 2023

Air-cooled module chiller(with internal circulation pump)
150 kW (50 HP) × 6 units
Terminal OHU × 16 units
Building-application multiple-air-conditioner
system (487 units in 69 systems)

Practical Competence Installation Example ③

Practical Competence Installation Example ②

Use■Building outline
Location

1-1 Heiwa-cho, Toyota, Aichi

This project involved two extra-high-voltage lines, full-demand
backup generators, and redundancy trunk cables, and withthese and triage plans for the outside of the hospital and its
entrance hall, the hospital will also be able to function as aregional medical base even in the event of a disaster.
We have also ensured that visitors to the hospital and the
medical professionals that work there are comfortable byputting in application-specific lighting, through measures suchas glare control, appropriate illuminance, and light-temperature
setting.

51

Customer review

Installation Example ②/③

Value Creation Drivers

Value Creation Drivers■Building outline

Practical Competence

For the air conditioning equipment used in this building, we adopted the hot-and-cold-water piping system, which uses module
chillers for its heat source, for the shared areas and rental labs of the first three floors, while for other areas we used abuilding-application multiple-air-conditioner-system.
For heat-source equipment, the number of module chillers is optimally controlled, and differences in voltages are managed with
two-way bypass valves. For the air conditioners, the temperature of the air supplied for cooling is controlled, while for heating the dew
point is adjusted. For the kitchen systems, air volume switch controls for the inverters allow energy-saving operations when the
kitchens are not in use. The building-application multiple-air-conditioner system can both cool and heat simultaneously, which enables
flexible operations.
The automatic control equipment is equipped with features that allow it to predict monthly energy consumption and forciblychange energy usage to fall within upper or lower limits if the set value deviates from those upper or lower limits, which helps withenergy efficiency.

Comment from the supervisor
The schedule was tight, and there were a lot of changes, and there was also the added need for us toinstall a duct atomizer system that uses a hypochlorous acid water solution. All this meant overseeingtasks was not easy, and securing the necessary materials, equipment and personnel proved difficult.
That we were able to complete the project without incident regardless, is proof positive of the effort
put in by all those involved. They all have my sincere thanks.

Masatoshi Ueno, Grand Project Master
Engineering Department 3
Osaka Head OfficeDAI-DAN REPORT 2023

52

Value Creation Drivers

Practical Competence

Enhancing Our Installation Expertise and Ability to Provide Design Solutions

Overseas Business
Enhancing Our Installation Expertise and Ability to Provide Design Solutions
Sharing and utilizing the enhanced value generated by our on-site expertise
Case study presentations for sharing expertise and integrity
throughout Dai-Dan

Award recipients

Comment from the winner of the President’s Award
I am truly grateful for the honor of being recognized with the President’s Award at the 15th Case Study
Presentations; there were so many other examples of inventiveness and improvement from across thecompany.
How to pass on technical capabilities, shortages of younger workers, and how to reduce working
hours are major issues facing our industry, and our case study was a trial into how using digitaltechnologies, and fusing software for two different types of applications, might address these.
Specifically, we used AR technologies to present BIM 3D data as a virtual space on an iPad, andrecord quality management on it in real-time while walking around the actual site. By using themetaverse, we can instantly share information about installations and progress, which has made more
effective decision-making possible. Compared to doing this by hand, we have reduced the number ofhuman errors from installation management and enhanced efficiency.
Lastly, digital technologies are evolving at pace, and so this case study does not mark an end to ourefforts, we consider this to be just a milestone, and we all hope to continue tackling the challenges of
our industry.

53

DAI-DAN REPORT 2023

Takeshi Osumi
Deputy Manager
Support Department
East Japan Division• Strengthening cooperation with
Dai-Dan’s six divisions in Japan(utilizing their corporate functions
and business operation functions)• Welcoming those who want to be
assigned overseas and offering them
preparatory training (in-house)• Overseas site training• Technical training for international
staff

SingaporeSix HQdivisionsin Japan Strengthening

West Japan
Division

DAI-DANINTERNATIONALASIASingapore
BranchEast Japan
DivisionInternational Division

Overseas Business

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

Our Technical Reports are published with the aim of leveling up
through technical accomplishments and advancing standards,
predominantly by detailing designs and case studies of
installations.
In the latest issue, there are articles with information about
24 case studies, including some of the winning entries to theCase Study Presentations, and case studies related to medical
facilities, industrial facilities, and other significant building
projects. With this latest issue, we have stopped publishing aphysical copy, and made it available to be viewed via thecompany portal. This form is not only more environmentallyfriendly, it is also much better in terms of information security.
As viewers can also zoom in, it also makes it easier tounderstand detailed blueprints.
The report features articles on improvements toconventional inventiveness and methods, as well as
cost-suppressing efforts, but also a case study of the provisionofequipment
using
advanced technologies
and with consideration
for maintenance andmanagement. Added tothis are reports on newtechnologies and installation
efficiency improvements.
We provide this wideranging content to allengineers.

■Efforts in our overseas business

Value Creation Drivers

Value Creation Drivers

We held our 15th Case Study Presentations in November
2022. This event publicizes exceptional achievements that are
examples of our employees’ expertise and integrity in their
day-to-day work, after a company-wide application and review
process that includes examples from workers overseas.
This year, six case studies were recognized with awards(one with the President’s Award, two with Head of theTechnical Division awards, and three with excellence awards),
and the ceremony was broadcast to relevant offices via thevideo conferencing system. Presentations from the ceremony
were also made available for on-demand viewing via thecompany portal, so employees could watch and learn inbetween work tasks.
By sharing these exceptional case studies, and making it sothat anyone can apply their lessons, we are leveling up
employees and enhancing Dai-Dan’s skills, safety, and quality.

Technical Reports

Our overseas business has so far spread to cover four regions: Singapore,
Thailand, Vietnam, and Taiwan.
Fiscal 2023 is the final year of Preparation Stage, our plan to establish andstrengthen our foundations in Japan and overseas on the path to our long-term
vision, Stage 2030. During the stage, to strengthen the overseas business, weestablished local subsidiaries: DAI-DAN INTERNATIONAL ASIA in Singapore and
DAI-DAN Taiwan CO., LTD. in Taiwan. We also worked through efforts such as
the new establishment of our International Division.
Most recently, in February 2023, we concluded a stock-transfer agreementwith Presico Engineering Pte. Ltd., a company that does mechanical andelectrical (M&E) work predominantly in Singapore, and made it an equity-method
affiliate of ours.
The Dai-Dan Group will continue to strengthen its overseas business going
forward.

DAI-DAN(THAILAND)

coordination

Engineering
Division

DAI-DAN
TaiwanDAI-DAN(VIETNAM)

Singapore

The first large-scale project that our Singapore Branch took on after wefirst established it in 1979 was at Changi Airport. Since then, the branch
has been involved in many different types of projects, including back at
Changi Airport. In recent years, it has also actively been working on larger
projects such as at hospitals or resort facilities.
In 2021, we established a wholly owned local subsidiary, DAI-DAN
INTERNATIONAL ASIA PTE. LTD., and we will transfer the functions ofSingapore Branch to this new company as we work to expand ourbusiness in Singapore.
Through our stock-transfer agreement with Presico in February 2023,
we will maintain the independence of their management and their brandpower, and through our synergies with Presico’s track record in the
Singaporean M&E services market, technical capabilities, and commercial
sphere, we will expand our business and aim for higher corporate value.

Singapore Branch
Established: January 1979

Established: September 2021

General Manager : Eiji Fujita

Managing director : Khang Yap Cheng

Number of staff : 75 (2 Japanese)

Number of staff: 60 (3 Japanese)

DAI-DAN REPORT 2023

54

Value Creation Drivers

ThailandOverseas Business

Overseas installations

Since Dai-Dan (Thailand) was established in 1984, it has been partof many new construction projects as an M&E services provider forJapanese-owned factories in Thailand. Now, in addition to newfactories and factory expansion work, our subsidiary is expanding
its activities to include diagnosis, maintenance, management, andupdates to old equipment, and work to introduce solar power
generation, with the aim of being the one companies naturally turnto for factory work. As well as its head office in Bangkok, it has alsoestablished sales offices in the provinces of Chon Buri and
Lamphun, for a three-base system in Thailand.
Singapore COH Service Building

Singapore MAH (new construction)(new construction)

Saginomiya (solar battery installation)

VietnamCompany K(chiller heat source renovation)

Value Creation Drivers

Value Creation Drivers

Thailand

Established: August 1984
Managing director : Yoshinori Uetani
Number of staff : 89 (6 Japanese)
Website: https://www.daidan.co.thOverseas Business

Overseas Business

VietnamDai-Dan (Vietnam), a local subsidiary established in October 2020,
has been working with the Dai-Dan Group, which has sent
engineers from Japan. In the future, it will continue to collaborate
and expand its business.
Moreover, while it is based in the north of the country (around
Hanoi), it is developing an installation framework that allows it torespond to projects in the south (around Ho Chi Minh City).

Thailand

SIIX (new construction)

ThailandCompany T (solar battery installation)

Changes in overseas business performance■Orders received ■Net sales(Million yen)
25,000Established: October 2020
Managing director : Masatsugu Itano
Number of staff : 4 (1 Japanese)

20,49220,00017,29915,000

Taiwan11,386

In order to expand our business even further overseas, in April
2022, we established a local subsidiary in Taiwan. The island ispacked with some of the world’s greatest semiconductor
manufacturers, and our aim is to roll out our semiconductor plantfilter regeneration service, which has been proven in Japan, andsecure customers there. Now, it is carrying out test cleaning toreceive orders from a number of companies. It is also investigating
the viability of starting work in our main business line of M&E workin the future.

10,258

10,20810,000

7,295

5,000

4,246

4,560

4,695

10,414

9,738

6,709

6,423

5,233

0
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Established: April 2022
Managing director : Yasunobu Tanaka
Number of staff : 1

55

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

56

Sustainability Initiatives

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.

■Policy hierarchy

Health and safety
policies
Approach to humanresource development

Sustainability policy
Approach toenvironmental
improvement

G

Corporate governancepolicies

Risk management
policyHealth and productivity
declaration

Sustainability Initiatives

Human rights andlabor policies

Promoting Sustainability

S

Quality andenvironmental
protection policies

Action guidelines for business partners

Group Action
Standards

E

Procurement policy

Promoting Sustainability

Management principles

Dai-Dan Corporate
Governance Guidelines

Information security
basic policy

Personal information
protection policy

Basic policies on appropriate
handling of specific personal
information

Dai-Dan Group Sustainability Policy

Promoting Sustainability

57

The management principles that guide the Dai-Dan Group explicitly challenge us to “create value for our customers while contributing to the development ofa 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 the environment, and contribute to the realizationof affluent but sustainable ways of life. In doing what we can to help steer society towards true sustainability, 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 andindividuality of everyone by welcoming diversity into the workplace.
3. Ensuring full compliance with laws, regulations and agreements bycontinuously improving our systems of corporate governance.

4. Maintaining an open dialogue with stakeholders that allows us tomeet social expectations and demands, and build strong bonds oftrust with all.
5. Sharing this policy with group subsidiaries and subcontractors sothat we can promote sustainability initiatives in unison.

58

Sustainability Initiatives

63

Environmental Initiatives

63

Environmental Conservation Initiatives

65

Partnering with Hosting Communities

67

Planting the Idea of Dai-Dan Forests

69

Dai-Dan Is Cheering on Nozomi Tanaka!

Sustainability promotion system

70

Valuing Our Employees

70

Work-Life Balance and the Work Environment

72

Human Rights Due Diligence Initiatives

74

Health and Productivity Management Initiatives

77

SMILE 2024 Project79

Marking Our 120th Anniversary

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 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 ormateriality, 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.

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

58

Promoting Sustainability
Our task forces
With the goal of addressing climate changes,
humanrightsissues,andothersustainability-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 the resolution of these
problems.

Board of Directors

Sustainability
Committee
Chair: President

Corporate Planning Office(Secretariat: Sustainability Promotion
Department)

2

Sustainability Initiatives

Strategy

We recognize that climate change is an important issue for ourbusiness, and in fiscal 2021 we identified climate-related risks
and opportunities from short-term to long-term perspectives,and evaluated their potential impact. Then, in fiscal 2022, wehave continued to analyze these, using tools such as the 2°C
or less global temperature rise scenario, and have estimatedthe business impact of climate change and studied possible

countermeasures. The table at the bottom of the page shows
our awareness of major climate-related risks and opportunities,
and also our countermeasures.
In the future, based on the results of our analysis of theseclimate-related risks and opportunities, we will reflect them ininitiatives related to contributing to a carbon-free society, oneof our areas of materiality.

■Analysis process
Climate-related TF

Compiles our
integrated reports

Well-Being TF

Human Capital TF

Identifying risks and opportunities

Promotes health andproductivity management

Works on personnel training
policy, and putting in place
workplace environments andpersonnel training processes• Gather information on risks and opportunities in theconstruction industry

Workstyle Reform TF
Combats long working
hours through the
SMILE 2024 Project• Identify items that are “transition risks” or “physicalrisks” for our company, based on the framework of
the TCFD’s recommendations

Rating importanceCalculating impact• Qualitatively evaluate identified risks andopportunities based on two factors: likelihood andimpact• Use existing climate-related scenarios, etc., toquantitatively grasp the business impact of importantrisks and opportunities

Promoting Sustainability

Promoting Sustainability

Works to elaborate
the content of TCFD
disclosure

Integrated Report TF• Study countermeasures to those risks andopportunities that would have a particularly big impact

Information disclosure in line with the TCFD’s recommendations
We have set contributing to a carbon-free society as one of ourareas of materiality, and in line with the Dai-Dan Group
Sustainability Policy, we are promoting efforts to reduce ourenvironmental impact through our business activities.
In August 2021, we announced our support for therecommendations 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, andmetrics and targets.

Going forward, we will continue to further advance ouranalysis of the effect climate change will have on our businessactivities, 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

This analysis covers our business in Japan, the sales for which
account for 90% of total sales.

■Climate-related risks and opportunities
Type

Category

Subcategory

Major risks/opportunities

Risk

GovernanceTransition risks

Technology

DAI-DAN REPORT 2023

the committee, we created the Climate-related Task Force,and are enhancing our information disclosure in accordancewith the TCFD’s recommendations.
The person ultimately responsible for how we deal withclimate change is our president, who is at the heart of ourefforts 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 sothat perspectives related to climate change are reflected in ourmanagement of risk.

Demand for low-energy, renewableenergy, ZEBs, etc., could grow,leading to more orders.

Tightening of
new-building regulations

Risk

If we were unable to respondadequately to the tightening of
regulations, accreditation systems,
and low-energy standards for newbuildings, we would lose orders.

Strengthening of carbon emission
targets and government policy(CO2 emission allowance
regulations, etc.)

Risk

Bolstering ofgovernment policy
toward renewableenergyOpportunity

Improved introduction oftechnologies relating toenergy management

We have set the following three timeframes—short term: within
the next three years; medium term: until 2030 (the period
covered by our long-term vision Stage 2030 and the SDGs
target year); and long term: until 2050 (the target year for
carbon neutrality). Additionally, the timeframe for futurefinancial impacts covers analysis for 2030.

Timeframe

To reach new targets, costs for buying
carbon credits or for emissions trading
would rise, and if we were unable toreach those targets, our reputation
would be negatively affected.
The introduction of policies relating to
renewable energy could lead togreater investment in the constructionof renewable energy facilities, leading
to more orders.

Risk

A slow response to new low-energy andrenewable energy technologies could
lead to a drop in our competitiveness,leading to fewer orders.

Opportunity

A quick response to the development andspread of low-energy and carbon-freetechnologies could lead to us gaining acompetitive advantage, leading to more orders.

Opportunity

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

Financial impact (2030)

Countermeasures+2°C or less

+4°C

Small

Carbon tax
introduction
cannot bepredicted∙ Expand procurement of renewable energy and encourage
reduction of greenhouse gas emissions∙ Reduce cost of business activities by promoting DX,
through ICT means such as BIM, online meetings, andcloud technologies

Large

Medium∙ Strengthen sales for renewable energy and ZEB projects
and propose ways to reduce environmental impact forcustomers∙ Promote technical development to make effective use ofrenewable energy

Short to
long
term

Large

Medium∙ Review systems for responding to tightening regulations,certification programs, and energy-saving standards for
new buildings∙ Conduct R&D into carbon-neutrality-related technologies

Mediumto long
term

Small

Small

Short tolongterm

(Currently being
calculated)

Costs involved in business activities or
installations could rise.

Opportunity

Spread of renewableenergy/ low-energy
technologies

Timeframe

Profit impact evaluation standard: Small = ¥100 million or less; Medium = ¥100 million to ¥1 billion; Large = more than ¥1 billion
Sales impact evaluation standard: Small = ¥2 billion or less; Medium = ¥2 billion to ¥20 billion; Large = more than ¥20 billion

Levying of carbon taxes

As part of our efforts to make society more sustainable, weestablished the Sustainability Committee (chaired by thepresident) below the Board of Directors to devise businessstrategy toward ESG and sustainability and deliberate on
related initiatives.
The committee, which is scheduled to meet twice or morea year, discusses our response to materiality—our businessstrategy, including how we react 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 Boardof Directors; under this system, the Board of Directors provides
oversight. To act as a cross-departmental organization under

59

Scope

Under scenario analysis, there are two potential future worlds:
The first is a world in which global society follows the targets of
the Paris Agreement and keeps average global temperaturerises to within either 1.5°C or 2°C of pre-Industrial Revolution
levels (“+2°C or less world”). The second is a world in which
global society makes no changes (“+4°C world”). For +2° orless world analysis, we referenced the IEA WEO’s Net Zero
Emissions by 2050 (NZE) scenario, the Announced Pledges
Scenario (APS), and the IPCC’s RCP2.6 scenario. For the+4°C world scenario, we looked at the IEA WEO’s Stated
Policies Scenario (STEPS) and the IPCC’s RCP8.5 scenario.

Policy and legal

1

Climate change scenarios

Sustainability Initiatives

Sustainability Initiatives

Setting scenarios

Mediumto longterm∙ Reduce our own offices’ energy consumption, promote theintroduction of environmentally friendly vehicles for sales
reps, make our branch buildings ZEBs, and achieve Scope
1 & 2 reduction targets by switching to virtually 100%
renewable energy sources∙ Promote technical development to make effective use ofrenewable energy

Short to
long
term

Large

Medium∙ Promote energy-efficient equipment proposals that makeuse of our expertise gained from operating our own ZEBs
∙ Advance proposals to make existing buildings ZEBs
∙ Push open innovation through joint research with
universities and other parties

Short tolong
term

MediumSmall∙ Expand a solutions service that offers energy management
for single or multiple buildings, by developing remotemonitoring and control systems

DAI-DAN REPORT 2023

60

Promoting Sustainability
Type

Subcategory

Category

Growth in demand for
low-energy buildings(including ZEBs)

Major risks/opportunities

Opportunity

Risk
Changes in customer
behavior
MarketOpportunity

Transition risks

The appearance of needs related to
ZEBs and Smart Cities could lead togreater adaptability toward
technological development, etc.,
leading to more profit.
A slow response to changes in the way
the industry is structured or ininvestment in equipment toward thegoal of a carbon-free society could
lead to fewer orders.
If our technical capabilities could
simultaneously achieve low-energy,
health benefits, comfort, andintellectual 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.

Spread ofnext-generation
technologies

Opportunity

Growth in potential for the spread of
disease means could further promotetechnical developments relating toventilation and air conditioning tocombat infection, leading to more orders

Risk

Insufficient information disclosure
about our decarbonization efforts could
lead to a reduction in our reputationand trust from financial markets.

Opportunity

Efforts toward a carbon-free society
and proactive information disclosure
could lead to gains in our reputationand trust from financial markets.

Risk

An inability to gain praise from society
for our decarbonization efforts could
lead to a loss in trust from the markets
and fewer orders.

Changes in investor andbank behavior(Increase in ESG
investment)
Reputation

Sustainability Initiatives

Changes in appraisal bycustomers
Opportunity

Acute

Frequency and severityof abnormal weather(typhoons, heavy rain,
etc.)

Risk

Physical risks
Chronic

Changes in rainfall
patterns

Changes in demand
resulting from normalizationof abnormal weather

Large

Large

Short to
long
term

Large

Large

Short tolong
term

MediumSmall

Mediumto longterm(Currently being
calculated)

More frequent, more severe rain andtyphoons could damage our offices,
sever lifelines, and delay work, leading
to higher business operation costs.

Large

Large

Short tolong
term

Rising average temperatures could raise
health risks for workers at construction
sites, as well as lowering productivity
and leading to a shortage of engineers.

Opportunity

Greater demand for work to strengthencooling capabilities could lead to moreorders.

Risk

Frequent occurrences of torrential
rain could result in the flooding of
construction sites, leading to project
delays and repair costs.

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.

Short tolong
term

Short tolong
term

Short tolong
term

Mediumto longterm

Countermeasures∙ Expand ZEB projects through both design and installation
avenues, via proposals that utilize ZEB and IoT technologies∙ Strengthen sales planning that considers technologicaltrends toward a carbon-free society and customer
equipment investment trends∙ Propose next-generation offices that achieve ZEB
certification and wellness benefits proven at our enefice™
buildings∙ Develop technologies that contribute to ease of working in
office environment, taking on board remote working andother trends∙ Expand the value of our proposals by proposing
refurbishments for better energy efficiency, based on
equipment diagnoses∙ Promote technical development related to making existingbuildings ZEBs
∙ Improve sales of infection control units (air purification anddepressurizing units) for medical facilities∙ Expand use of airflow analysis technologies∙ Bolster sustainability information sharing and dialogue
through IR activities∙ Implement proactive sustainability information disclosure,actively respond to climate-related initiatives, and engage
with stakeholders outside the company∙ Sign agreements with local authorities for Dai-Dan Forest
training and preparation activities in ten locations in Japanand promote these

Short tolongterm

Decarbonization efforts and theirrecognition or accreditation could leadto gains in trust from customers.

Risk
Rise in averagetemperatures (summer)

+4°C

Small

Small

Small

MediumMediumMedium

Small

Small

(Currently being
calculated)∙ Promote the switch to environmentally friendly vehicles
such as hybrids and EVs that are powered by renewableenergy∙ Register as a ZEB Leading Owner and as a ZEB Planner∙ Gain certification as an eco-tuning company∙ Acquire BELS, LEED, CASBEE, and DBJ Green Building
certification for our enefice™ buildings∙ Participate proactively in initiatives aimed at achievingcarbon neutrality∙ Make all branches in Japan enefice™ buildings, and work
to minimize damage that might occur during a disaster∙ Reduce risk by strengthening BCP countermeasures anddeveloping and operating a business continuity
management system∙ Promote joint research between industry and academia todevelop BCP-oriented equipment systems∙ Introduce air-cooled clothing and implement heat stroke
countermeasures∙ Raise productivity and manage working hours bypromoting DX at installation sites and using robots∙ Put in place systems to raise productivity at construction
sites using BIM∙ Strengthen cooperation between suppliers,
subcontractors, and others in the supply chain∙ Create BCPs and develop and operate business continuity
management systems focused on regional risks∙ Prepare supplies to minimize damage during awater-related disaster

4

Metrics and targets

We have selected contributing to a carbon-free society as oneof our areas of materiality, and as such we wish to
appropriately assess the risks and opportunities presented byclimate change. To that end, we formulated medium- andlong-term quantitative targets and we are now promoting
activities to achieve those.
In terms of our greenhouse gas emissions, we have set
ourselves the target of a 46% reduction in Scope 1 and 2
emissions from fiscal 2013 levels by 2030. However, in fiscal
2022, by managing to reduce our emissions by 54% andachieve that target thanks to efforts including rebuilding ouroffices as ZEBs, switching to virtually 100% renewable energy
sources, and promoting the introduction of environmentallyfriendly vehicles such as hybrid cars. We have updated ourtarget for 2030 to a 43% reduction from fiscal 2019 levels, andwill work to achieve this. We are also actively working on
ZEB-related projects, and in fiscal 2022 we received eight ZEB
orders. Added to the eight of the previous fiscal year, thismakes for a cumulative total of sixteen orders.
In order to achieve our fiscal 2030 targets, we aim to makegreater use of renewable energy and research and develop
installation and design technologies that can contribute todecarbonization. Through such efforts we hope to makesociety more sustainable and also raise our corporate value.
While we have disclosed our Scope 3 greenhouse gas
emissions for the past four years, in the future we plan toreduce greenhouse gas emissions throughout our supply chain
through active dialogue with business partners, including
setting targets.

KPI

Materiality

Reduce greenhouse gas (GHG)
emissions (Scopes 1 & 2)
Reduce greenhouse gas (GHG)
emissions (Scope 3)

Contributing
to acarbon-freesociety

TargetFY2022Long-term target: FY2030
Reduce 43% from FY2019 levels(FY2019: 4,002 t-CO2)

Reduced 54% from FY2013 levels(FY2022: 2,901 t-CO2)(FY2013: 6,235 t-CO2)

Scopes 1 & 2* For
Our target was a 46% reduction from FY2013* levels,
but as we achieved this in FY2022, wehave set a new target based on FY2019 levels

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■Greenhouse gas emissions by Scope
Scope/category

Relevant activities

Emissions (unit: t-CO2)
FY2019FY2020

FY2021

Reduction (%)
FY2022Compared to FY2019

Direct emissions

Direct emissions from fuel consumption by offices,
worksites, and company vehicles

1,866

1,858

1,726

1,698

–9.0

Scope 2

Indirect emissions related toenergy sources

Indirect emissions from the use at offices and worksitesof purchased electricity

2,136

2,338

2,009

1,203

–43.7

4,002

4,196

3,735

2,901

–27.5

Emissions from other companies related to businessactivities

2,257,103

2,104,473

1,708,291

2,081,394–7.8

Purchased goods andservices

Emissions from activities related to purchased devices
and materials up to their manufacture

249,040

200,634

190,106

231,283–7.1

2

Capital goods

Emissions from the construction/manufacture of ourcapital goods

1,103

1,982

4,082

9,796

3

Fuel- and energy-related activities
that do not fall into Scope 1 or 2

Emissions from upstream processes (mining, refining,etc.) for purchased fuel and electricity

740

781

704

568

4

Upstream transportation anddistribution

Emissions from the transportation of devices andmaterials from the supplier to the installation site

23,97918,905

18,58722,651

5

Waste generated inoperations

Emissions from the transportation and processing of waste
generated by offices, worksites, and installation sites

1,083

805

1,166

1,411

Corporate Planning
Division

6

Business travel

Emissions from business trips by employees

359

191

225

312

Sustainability
Promotion Department

7

Employee commuting

Emissions from public transportation or similar usedby employees to get to or from work

462

453

467

469

11

Use of sold products

Emissions from the operation of delivered equipment at buildings we havecompleted and handed over to the client (based on 15 years of operation)

1,977,386

1,878,247

1,490,628

1,812,17412End-of-life treatment of soldproducts

Emissions from processing waste devices and materials that
we have delivered when they reach the end of their lifespan

2,951

2,477

2,325

2,730

2,261,105

2,108,669

1,712,026

2,084,295

Indirect emissions that do
not fall into Scope 1 or 2

Scope 3

Scope 3 breakdown

Risk management

With the formulation of our risk management policy, our goal is
to minimize risk associated with our business, and this end isalso furthered by our Risk Management Committee, who
identify and evaluate major risks by making an overall judgment
after considering frequency, threat level, and other factors. For
climate-related risks and opportunities, the Sustainability
Committee’s Climate-related Task Force is at the heart of ourefforts, judging the importance of climate-related risks andpinpointing and rating the impact of risks and opportunities on
our business. It also reports on the progress of these efforts to
the Board of Directors. Moreover, we have created a system
where climate-related risks are appropriately reflected in ourrisk management process via sharing the content of
discussions by the Sustainability Committee with the Risk
Management Committee.

Cumulative total for FY2021–2022
16 ordersGross floor area: 456,261 m²

Cumulative total for FY2021–23: 24

Scope 1+2

3

* For Scopes 1 & 2

Scope １

∙ Propose water-saving measures for customers∙ Promote technical development related to the effective useof water resources

Sustainability Initiatives

Opportunity

Short tolong
term

Financial impact (2030)+2°C or lessPromoting Sustainability

Promoting Sustainability

Increase in demand forrenovations

Timeframe

Sustainability Initiatives

1
ReportBoard of Directors
Supervise/
instructSupervise

Report/refer
Information
sharing

Sustainability Committee
Deliberates on policies andmateriality connected to sustainability
topics such as climate change, andinvestigates and promotes
information disclosure, etc.
Chair: President
Members: Head of the Corporate
Planning Division, Head of
the Quality, Environment
and Supply Chain
Division, Head of theGeneral Administration
Division, Head of theTechnical Division, Headof the Innovation Division,
Head of Sales Division

Representative
directors

Risk Management
Committee

Category

Scope 1+2+3–8.4

1 and 2 cover the domestic and overseas consolidated Dai-Dan Group, while Scope 3 only covers unconsolidated operations in Japan.
* Scopes* Categories 8 to 10, and 13 to 15 are not applicable to our operations.

Climate-related TF

61

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

62

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

Environmental Conservation Initiatives

FY2022 performance

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

1,726 tCO2

1,698 tCO2

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

1,914 tCO2

1,106 tCO2

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

24.0 kgCO2/¥1M

16.8 kgCO2/¥1M

Identify and reduce power consumption.

5,260,558 kWh

Greenhousegases(Portion of that derived from renewable resources)(801,988 kWh)

(2,611,297 kWh)

1,264 tCO₂

498 tCO2

Increase percentage of environment-friendly
vehicles in company fleet.
Promote Scope 3 Category 11*3 emissions reduction
proposal.
Proposed reduction in CO2 emissions by design proposal

Waste

Water
resources

63

DAI-DAN REPORT 2023

31,239 tCO2

Min.
30,000 tCO2○

10,037 tonnes

10,452 tonnes

901 tonnes

1,134 tonnes

Identify and reduce general waste discharged from offices.

96 tonnes

110 tonnes

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

4.8/job site

5.2/job site

Identify and reduce water consumption.

63,432 m3

83,560 m³(Portion of that consumed by offices)(12,742 m3)(12,614 m³)

0.419 m3/¥1M

0.502 m³/¥1M*1 CO2 emissions from gas, kerosene or gasoline consumption*3 CO2 emissions from operating installed equipment○

27,131 tCO2

Identify and reduce industrial waste buried as landfill.

Reduce consumption of copy paper by offices.

Max. 500 tCO₂○

Identify and reduce total discharge of industrial waste.

Scope 2

Office emissions

94.1%

87.1%

8,000

■Industrial waste sorting rate

% of environment-friendly
vehicles in corporate fleet

97.5%

All waste(tonnes)
15,000

98.6%

6,000

2,600

4,000
2,000

3,635

0

88.4%

29.3%
1,842

FY2013

9,000

4,104

3,905

3,640
2,804
2,040 1,549 2,247 1,615 1,914
1,264 1,106
1,866
1,858
1,726
1,698 498
FY2022
FY2021FY2019FY2020

6,000

6,871

3,000
0

46.5%

51.1%

Min. 50%○48.4 tonnes

46.7 tonnes

Max. 47 tonnes○*2 CO2 emissions from secondary energy (electric power) consumption

8,251

89.2%
10,452

10,037
6,493

1,124

885

901

1,134

FY2018FY2019FY2020

FY2021

FY2022

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
2022, our green purchasing rate reached 51.1%.

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. For fiscal 2022, we did not set a target but
we worked out our actual data.

(Million yen)
90,00060,00030,0000○86.6%

Sorting rate (%)

91.0%

797

■Design use CO2 reduction targets and results
Target

46.0%

46.7%
52,365

48,76022,424FY201824,430FY2019

Green purchases

48.9%
41,945
20,522
FY2020

Green purchasing rate (%)

46.5%
52,397
24,354FY2021

51.1%
54,239(tonnes)
30,00022,75520,00015,00025,00020,494
14,968 15,000

Result22,00016,275

14,976

10,00027,7020

FY2018FY2019FY2020

FY2021

FY2022

FY2022

Quality and Environmental Management SystemMin.
5.0/job site

86.4%

Landfill waste

12,0006,235

Total component purchases

Min. 98.5%

14,976 tCO2

Scope 1

(tCO₂)
10,000■Green purchasing

98.6%

16,275 tCO2

Increase green purchasing rate.
Other

Assessment

97.5%

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

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

FY2022 target

5,201,941 kWh

Reduce greenhouse gas emissions from offices.

At Dai-Dan, we promote the sorting of waste at all our
installation sites. Throughout fiscal 2022, we produced
10,452 tonnes of industrial waste, of which 89.2% was sorted.
Furthermore, we encourage reducing and sorting waste at our
offices. In fiscal 2022, our offices produced 110 tonnes ofgeneral waste.

Environmental Initiatives Environmental Conservation Initiatives

Environmental Initiatives Environmental Conservation Initiatives■Our Environmental Management System: FY2022 environmental targets and results
FY2021 performance

Our current active efforts include reducing the amount ofenergy consumed at our offices and the introduction ofenvironmentally friendly vehicles. Since fiscal 2021, we haveswitched the electricity used at 21 sites in Japan—including
our head office, branch offices, and other offices—in turn topower that comes from virtually 100% renewable energy
sources.
As a result, compared to before their replacement, officeemissions dropped by around 1,100 t-CO2. Accordingly, infiscal 2022 we achieved a 54% reduction from fiscal 2013
levels, surpassing our long-term target of a 46% reduction.
Going forward, we will strive to accomplish our new target for
fiscal 2030 of a 43% reduction from fiscal 2019 levels.

■Greenhouse gas emissions

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.

Main target or item to be monitored

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

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.

Efforts to protect water resources
We work to reduce the water resources weuse by grasping the amount our offices
consume and introducing water-saving
equipment. For customers, we also
actively promote proposals for more
effective ways to use water resources,
such as utilizing rainwater, recycling
wastewater, and introducing water-saving
equipment. Moreover, we encourage
participation in regional environmental
contribution activities, such as those tobeautify or clean rivers and coastal areas.
DAI-DAN REPORT 2023

64

Charity with Love-food Goodies Bag Program 2022

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

Activity■Company-wide activities
Activity

Details

Eco-cap Project

In fiscal 2022, we collected 117,153 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 2023, we collected 1,151
calendars and notebooks from across thecountry and put them to use inwide-ranging activities, including to support
those in difficulties, boost social
participation for those with disabilities, andcreate places for kids to spend time.

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.

Town Open Garden Operation

Chiba BranchInnovation Division

Dissemination of technical information to external parties
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.

Quality, Environment and Supply
Chain Division

Miyoshi Green Support Squad

General Administration Division■External organization memberships and positions(as of September 2023)

Organization

Position

Air-conditioning & Plumbing Contractors Associations of Japan

Chair

Institute of Electrical Installation Engineers of Japan

General Director
Advisory committee
memberJapan Electrical Construction Association
Association of Japan Instrumentation Industry

Administration
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

Publication of the DAI-DAN Technical Current News
With the objective of publicizing thetechnology we develop and our research
initiatives, we publish the DAI-DAN
Technical Current News every September.
The publication gives comprehensive
explanations of experiments, assessment
methods and analysis results using charts
and images.
The 117th edition was published in September 2023. Copiesof these publications are donated to the National Diet Library.
Articles■Organizations to which Dai-Dan employees are dispatchedas lecturers (April 2022 to March 2023)
Organization

Lesson details

Activity

We posted traffic safety guards.
(Tokyo Head Office, Nagoya Branch, andChugoku 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.
(Technical Division, Engineering Division,
Innovation Division, and Kyushu Branch)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)· Influence of biophilic design on workers

Position· Japan Wood Design Award and Distinguished Technology Award for eneficeHokkaido

Foundational knowledge about
specifications and integration

Part-time lecturer· Operational status, heating environment, and optimal battery capacities at eneficeHokkaido

Kanto Gakuin University

Air conditioning planning theories

Part-time lecturer· Study into heat environment evaluation methods for spot air conditioning used tocounter factory heat

Kogakuin University

Acoustics in architecturePart-time lecturer· Verification of the accuracy of small sensors used to detect wind direction andspeed

Toyo University

Environmental equipment
engineering

Part-time lecturer· Research into the development of methods to measure the air age in manned
environments

Toyo University

Equipment design

Part-time lecturer· Evaluation of the impact of sudden variations in genetic algorithms on search results· Research into using rainwater for air conditioning equipment· Initiatives to use 3D models to create existing blueprints using photo-measurement
technologies· Introduction to MonoBooker, a worksite scaffolding equipment reservation andmanagement system· Study into methods to quickly evaluate pitting corrosion in copper pipes· Temperature distribution surveys for high-rack pharmaceuticals storage and points
of note when planning these

Details/offices

Traffic Safety
Guard Activity· Development of a cloud-based brightness control system

Osaka Piping Higher Training
SchoolDAI-DAN REPORT 2023

■Other activities· IEIJ Good Lighting Award and Wooden Architecture Award for our Hokuriku Branch· Introduction of the cloud-based monitoring and control system REMOVIS in work to
update automatic control equipment at medium-sized office buildings

65

Miyoshi Green Support Squad

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)

On December 10, 2022, we took part in activities for the non-profit Fei Yue Family
Service Centre. This was organized by our Singapore Branch, and they collected
donations from branch office staff and subcontractors and distributed bags of food to
405 low-income households in the local area.

Traffic safety guards

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

DAI-DAN REPORT 2023

66

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 havenow signed agreements between our head office and branches (eight sites) and local authorities. In the future wehope to up this number to ten sites, and will move forward with activities to develop forests.

Saitama Forestry CO2 absorption amount certificate

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

Agreement signing ceremony in Kagawa

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 signatory: Miyagi Pref.
Forest site: Shinzan, Miyatoko,Taiwa-cho, Kurokawa
District
Site: 3.47 ha
Length of agreement: 5 years
Activities: Tree planting and weeding

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

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

DAI-DAN REPORT 2023

On Saturday, May 27, 2023, we held an opening
ceremony and the first activities at Dai-Dan Forest
Miyagi, which is in Taiwa, a town in Kurokawa
District, Miyagi Prefecture. There were 15 employees
who took part, and thanks to guidance from people
from the Miyagi Prefecture Environment & Living
Department Nature Protection Section and members
from Miyagi Forestry Instructors Association, they
carried out activities including planting trees andcutting back.
They worked under beautiful blue skies to create
paths and steps so that next time children can also
take part.

Miyagi

Kumamoto67

Dai-Dan Forest Miyagi

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

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

PICK UP

Logging work in Saitama

Promoting Sustainability

Promoting Sustainability

On Saturday, November 26, 2022, we carried out thevery first activities at Dai-Dan Forest Okayama, whichis in Yakage, a town in Oda District, Okayama
Prefecture. Between Dai-Dan employees andsubcontractors, 28 people took part and with thehelp of staff from the Yakage Town Hall Industry &Tourism Board, they received instruction on
tree-planting work and planted a total of 150 cherry
and maple trees.
In the future, we plan to invite family members,
and through tree-planting and other forest
conservation experiences, we hope to tie this in tohands-on environmental protection education.

PICK UP
Memorial tree-planting in Kumamoto

Dai-Dan Forest Okayama

Mie

Shiga

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

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

PICK UP

Dai-Dan Forest Activities
OfficeHokkaido Branch

Date
July 9, 2022
October 1, 2022

Tohoku Branch

May 27, 2023

Details

Trees planted

Total no.

Certified CO2 absorption

Tree-planting

Glehn’s spruce: 40; Japanese emperor oak: 40;
Mongolian oak: 40; Manchurian ash: 40;
Amur maackia: 40

200

̶

10

̶

4

10.8 t-CO2 per
annum

Memorial tree-planting/tree-planting

July 24, 2022
Tokyo Head OfficeNovember 3, 2022

Thinning

Japanese cypress

June 17, 2023
Nagoya Branch

November 13, 2022

Tree-planting

Mountain cherry, maple, and kousa dogwood

45

̶

Hokuriku Branch

November 6, 2022

Tree-planting

Black pine saplings240̶

Osaka Head OfficeNovember 12, 2022

Preparation

̶

50

̶

Chugoku Branch

November 26, 2022

Tree-planting

Mountain cherry and Japanese maple

150̶

Shikoku Branch

December 11, 2022

Tree-planting

Japanese cypress

600

̶

Kyushu Branch

November 5, 2022

Tree-planting

Japanese cedar saplings160

̶

DAI-DAN REPORT 2023

68

Dai-Dan Is Cheering on Nozomi Tanaka!

©Getsuriku

At the 86th Tokyo Athletics Open Championships at Tokyo’s National Stadium on April
22, 2023, Nozomi took part in the Women’s World Challenge One Mile event, andbroke a 21-year-old record. To celebrate this spectacular achievement, on May 21, we
presented her with a reward.
At the Seiko Golden Grand Prix 2023 Yokohama, also held on May 21, sheachieved a stunning victory in the 1,500-meter event.
At the World Athletics Championships Budapest 23, held from August 19 to 27,
Nozomi ran in both the women’s 1,500 m and 5,000 m races. In a qualifier forthe latter, she smashed theJapanese record and finished in
8th place in the final—something
no Japanese athlete has done for26 years.

DATA

Major achievements(As of August 28, 2023)
Major Japanese records held:
1,000 m; 1,500 m; 1 mile; 3,000 m;
5,000 m; and 5 km (road)Tokyo 2020 Olympics:
1,500 m (8th place) and 5,000 m
World Athletics Championships
Budapest 23
1,500 m and 5,000 m (8th place)

Respect for everyone, support for work-life balance.

Work-Life Balance and the Work Environment
Approach to human resource development

Approach to environmental maintenance

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 upof three parts: on-the-job training (OJT), off-the-job training(OFFJT), and self-development (SD).

Our goal is a working environment defined by ease-of-use andgood health where every employee can demonstrate their fullpotential. 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, and improve the system to offer
them fair opportunities for advancement.

Valuing Our Employees Work-Life Balance and the Work Environment

Partnering with Hosting Communities Dai-Dan Is Cheering on Nozomi Tanaka!

New Japanese records for the 1-mile and 5,000-meter races

Valuing Our Employees

Promoting Sustainability

Promoting Sustainability

Since 2021, we have been a corporate sponsor for Nozomi
Tanaka, a track-and-field athlete affiliated with New
Balance. Nozomi has gained attention as a promising young
athlete, one of the next generation of champions, 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 ofher sponsors. We will support her athletic activities and also
cheer her on with all our might!

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.

Efforts to extend retirement age
As part of our efforts to reform work styles, we revised our personnel system and from fiscal 2021 we have extended the age ofretirement 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 of Elderly 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 the assumption of a career that extends tothe age of 65, we are reviewing how we position different levels of qualifications and attendant salaries, and we are also planning toraise the standard of salaries for younger employees.

©Tokyo Athletics Association

Promoting female participation

Check out our new adverts featuring Nozomi!
― No matter how cutting-edge a building, without the right equipment it doesn’t come to life ―Comparing equipment to
the human body
(Japanese only)

69

DAI-DAN REPORT 2023

On June 1, 2018, we were awarded the
Eruboshi mark with two stars for our
exemplary record as a woman-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-lifebalance, as seen through such trends as the rise in both women and men
taking childcare leave these days.

Action Plan
(April 1, 2021–March 31, 2026)

Target1

Target2

To raise the average career
length for women by 15% or
more
To raise the proportion of
female managers by 1% ormore

DAI-DAN REPORT 2023

70

Leave system

Comment from a female manager

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)
Promoting Sustainability

Type of holiday

Details

Summer holiday

3 consecutive days in summer (July – Sep)

Refresh leave

7 consecutive days (annual)Long service leave

20 years: 5 days

30 years: 7 days

40 years: 5 days

Predetermined number of days foroccasions such as weddings

Sound relationship between labor and management

Valuing Our Employees Work-Life Balance and the Work Environment/Human Rights Due Diligence Initiatives

Valuing Our Employees Work-Life Balance and the Work Environment

Congratulatory or
condolence leave

10 years: 3 days

Promoting Sustainability

So far, I have mostly been involved in worksite tasks aspart of the Technical Department, but I never imaginedthat I would be chosen to head up the newly formed
Support Department going forward. Firstly, as a manager,
I will support those in my team, but I do feel somepressure that we need to open up new paths as a newly
established department.
My team have previously done office work but now
they will be part of supporting worksite tasks, so I bet that
there will be some cases where they feel bewildered bytasks that they are not used to, but I hope to use myexperience in the field to support them.
While I think I understand the difficulties faced atworksites, to support their tasks, we need to have job site
representatives gain a better awareness of what we in thedepartment do, and to build relationships of trust. To that
end, we will offer support
that close follows worksite
needs, and I want to tie thisin to finally reducing long
working hours.

company’s main business line, and over the course of a period 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 five months gaining thebasic knowledge of specialisms needed to do their work. During this period of training, as well as classroom learning and learning how tocreate blueprints, employees have opportunities to see, touch, and do. Through these training activities, we are working to ensure employees
have the knowledge and techniques 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
learning about job site liaison tasks (processes, safety, work contents, creationof 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. For engineers, as well as training related
to development technologies and specialized training for dedicated fields, wehold seminars on official qualifications so engineers can level themselves up.
Other job roles (in sales or office work) also learn the basics of ourtechnologies, 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.

The Dai-Dan Labor Union was established in 1973 and in August 2023 entered its 50th 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, whichenables active dialogue and builds and maintains relationships between labor and management.
Akiko Tsuruta, Manager
Support Department
East Japan Division

Supporting the balance between work and home
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.

Human Rights Due Diligence Initiatives
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.

Employee training
Employee training at Dai-Dan begins with our program for new recruits and continues with various types of systematic training as employees
develop their careers.
Our training program for new recruits combines introductory and basic engineering for a six-month training course. Introductory
engineering training involves learning the necessary basic knowledge about M&E work (electricity, air conditioning, and plumbing works), the71

DAI-DAN REPORT 2023

Why are such initiatives necessary?
In 2011, the United Nations Human Rights Council adopted the Guiding
Principles on Business and Human Rights, and declared that companies had a
responsibility to respect human rights.
As part of the guidelines, companies are asked to ① formulate a humanrights policy, ② implement human rights due diligence, and ③ constructmechanisms to deal with adverse impacts.
In 2020, the Japanese government formulated its National Action Plan on
Business and Human Rights to encourage respect for human rights in corporate
activities. We recognize that in these ways global interest in the need forcompanies to show respect for human rights is growing, and so we haveaccepted that promoting it is a priority issue. So, in 2020, we announced ourhuman rights and labor policies, and have been actively working in this area. In
order to further promote initiatives related to respect for human rights, in 2022
we started human rights due diligence measures.

■Three particularly important Guiding

Principles on Business and Human Rights① Formulate humanrights policy(Principle 16)

As the basis for embedding their
responsibility to respect humanrights, business enterprises should
express their commitment to meetthis responsibility through a statementof policy.

② Implement humanrights due
diligence(Principle 17)

In order to identify, prevent, mitigate
and account for how they address
their adverse human rights impacts,business enterprises should carryout human rights due diligence.

③ Constructmechanisms todeal with adverse
impacts(Principle 22)

Where business enterprises identify
that they have caused or contributed
to adverse impacts, they should
provide for or cooperate in theirremediation
through
legitimate
processes.

Human Rights Due Diligence Task ForceIn April 2022, we established the Human Rights Due Diligence Task Force under the Sustainability Committee. It has been positioned
as an important task force and comprises members who are well-acquainted with the necessary fields. These members, who lead ourhuman-rights-related activities, have been receiving human rights training from outside experts, so that they can gain a comprehensive
understanding of human rights and grasp recent trends.

DAI-DAN REPORT 2023

72

Implementing Human Rights Due Diligence

Health and Productivity Management Initiatives

Human rights due diligence processes

Aims and policy

Clear commitment

Evaluating human rights
risks

Responses based on
evaluation

Sharing information
outside the company

Declaration of commitment
toward human rights that hasreceived approval from top
management

Evaluating human rights risks
associated with business
operations and supply chains

Respond to high-risk(high-priority) matters

Periodically disclose
information on human rights
initiatives• Formulation/revision of humanrights policy• Human rights risk assessments• Implementation of programs(initiatives) for identified humanrights issues• Human rights impact assessments• Reporting of human rights risks
via integrated reports, etc.

• Monitoring and reviews of
responses• Internal and external
communication related to policy

Health and Productivity Management Declaration
In May 2019, top management announced Dai-Dan’s Aims in Health Management. It sums up our firm belief that it is critical for
corporate growth and the contributions we try to make to develop society for the better that everyone on our workforce leads a happylife. Guided by this train of thought we will be seeking ways to improve the quality of life of our people and make it possible for all ofthem to lead healthy, happy lives, as a platform for corporate growth and contributing to a sustainable society.

Promoting Sustainability

Promoting Sustainability

Ideal

Evaluating human rights risks■Scope of evaluation

1. Raising everyone’s awareness of health

Item

As a company, we will constructively support efforts to maintain and improve health in order to raise health awareness and improve
the health literacy of each and every employee.

Notes① Region

Sites in Japan② Business scope

M&E work③ Stakeholders

Includes Dai-Dan employees, contracted
workers, and subcontractors’ employees
and contracted workers

Valuing Our Employees Health and Productivity Management Initiatives

Valuing Our Employees Human Rights Due Diligence Initiatives

We have determined the scope of our evaluation of humanrights risks as detailed below. We exhaustively refine risks
based on the Guiding Principles on Business and Human
Rights, and we have quantified the likelihood and severity of allconceivable human rights risks. Moreover, to get a grip on risks
for subcontractors, and evaluate these, we conductedquestionnaires for our subcontractors.

2. Creating healthy, motivating workplace environments (for corporate growth)
We can expect to grow as a company by creating healthy, motivating workplace environments where work style reforms allow eachand every one to balance work and life, and exhibit the best of their abilities.
3. Extending one’s healthy years (as a contribution to local communities and society as a whole)
As a company, we can and will contribute to the local communities who host our business operations and society as a whole, by
supporting and training our employees and our subcontractors’ employees so that they can be healthy and active longer.

Human rights risk map
Based on a quantified likelihood and severity, we have created this human rights risk map, and identified that overworking andoccupational health and safety management are particularly important issues.

LegendOverworking (long working hours and/or
difficulty taking time off)

High (3)Purchasing

Internal

Non-gender-related discrimination (during recruitment,
employment, or dismissal)

External

Medium (2)Severity

Power harassment

Low (1)

Gender discrimination (during
recruitment, employment, or dismissal)

Complicity
in forcibly
evicting local
residents

Well-Being TF

Users*Including disposal tasks
during installations

Infringement of privacy rights via personal information leaks, etc.
Adverseenvironmental impact
Difficulty accessing remedial processes (complaint system, etc.)
Forced overtime because of excessive orders or pressing deadlines
Infringement of human rights via complicity with bribery,corruption, or anti-social organizations

Reassignment or relocation that does not consider career wishes
or family situation

Low

MediumHealth &safety/healthpromotioncommittees

Subcontractors

Partially unpaid overtime (through false attendance reports)

Maternity/paternity-taker harassment

Dai-Dan Health
Insurance
Association

Office work

Sexual harassment

Occupational health and safety management
at offices

Board ofDirectors,
Executive
Committee, etc.

Covering up long working hours(through false attendance reports)
Forced overtime because of excessive orders or pressing deadlines

Carer harassment

DesignHead:
President

Collaboration
Covering up long working hours (through false attendance reports)

Adverse impact
on the health orsafety of users of
the equipment wehave installed

Sales

Installations*

Discrimination (discrimination or unfair
treatment in job categories or tasks)

Overworking (long working hours and/or
difficulty taking time off)

We established the Well-Being Task Force to promote health and productivity management, and it is rolling out plans, implementation,and investigations throughout the company.

R&D

Occupational health and safety
management at worksites

Overworking (longworking hours and/or
difficulty taking timeoff)

Promotion framework

Worker reps
(Labor union)

General managers

Occupational
physicians

Managers

Public healthnursesStandard
employees

High

Likelihood

73

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

74

Dai-Dan Health and Productivity Management Strategy Map (FY2023)

Initiative

Health-related final target indicators
Investment in health

Physical healthSocial health
Mental health

Progress of healthinvestment measures

Healthmaintenance/improvement
education/training

Improved rate of correct
answers on e-learning into
knowledge of healthmaintenance/improvement

Changes in worker
awareness/behavior

Final target indicators

Improved proportion receiving
specific health guidance:
5-point increase fromprevious FY

Proportion with healthy
body weights:
3-point increase fromprevious FY

Anti-smoking program
Subsidies for addiction
seminar expenses

Exercising events
Communication
promotion events

Increased no. ofparticipants inanti-smoking program or
addiction seminars

Event participation rate

Proportion receiving
treatment for high bloodpressure:
3-point increase fromprevious FY

Improved proportion taking
re-examinations after regularchecks:5-point increase from previous FY

Proportion ofdrinkers/smokers
3-point decrease fromprevious FY

Anti-smoking program &addiction seminars:
Increase of
5 participants

Stress checks
Engagement surveys

Review of installation
tasks
Task-support framework

Reduction in workoutside working hours

Mental health education

Participation by
managers in mental
health education

Education/support forsubcontractors anddependents

Increased no. of views of
the Subcontractor Portalsite or health management
systemReduction inabsenteeism

Preventing decreased
productivity resulting
from poor health orillness

No. working more than
80 hrs. overtime:
50% reduction fromprevious FY
Mental health checks &engagement surveys:
100% participation

Reduction inpresenteeism

Upper limit on overtime:
720 hrs. (350 hrs.) per year
80 hrs. (45 hrs.) per month

Improved work
engagement:
2.7 points or more

Boosting worker
performance

Recognition as an Outstanding
Health & Productivity
Management Organization(large enterprise category) andinclusion in the White 500

No. taking time off due
for mental healthreasons:
5% decrease fromprevious FY

Participation rate formental health education:
5-point increase fromprevious FY

Progress of health investment measures

75

FY results
FY2020

FY2021

FY2022

Proportion taking regular health checks

100.0%

100.0%

100.0%

100.0%

Proportion taking detailed tests after regular checks

59.6%

62.4%

75.6%

80.0%

Proportion taking stress checks

Participation inmeasures forhigh-risk workers
Employeesatisfaction
score for themeasures

97.2%

98.3%

100%

—

40.9%

58.3%

80.0%

Women’s health seminars

—

41.1%

22.6%

80.0%

Health information sharing system

—

83.5%

96.6%

100%

Walking rallies

—

15.7%

24.0%

50.0%

Proportion requiring specific health guidance

23.6%

22.8%

22.3%

20.0%

Proportion implementing specific health guidance

55.2%

62.8%

72.5%

80.0%

Mental health seminars

—

—

—

—

Not evaluated

Women’s health seminars

—

—

3.68

4.00

Maximum 5.00

Health information sharing system

—

—

—

—

Not evaluated

Walking rallies

—

—

—

—

Not evaluated

182 hrs.

182 hrs.

182 hrs.

180 hrs.

48.0%

49.6%

53.2%

60.0%

Leave uptake

Yearly leave uptake

35.7%

30.0%

19.7%

21.4%

25.0%

Survey on Health and Productivity
Management standard

Proportion getting sufficient sleep

54.2%

56.6%

54.6%

60.0%

Survey on Health and Productivity
Management standard

Proportion drinking acceptable amount of alcohol

79.7%

81.2%

78.5%

85.0%

Survey on Health and Productivity
Management standard

Proportion eating an acceptable diet

36.3%

38.0%

38.2%

40.0%

Health Scoring Report standard

Proportion with lifestyle diseases

24.8%

22.0%

22.5%

20.0%

Those with diabetes, high blood pressure,or abnormal fat levels

Proportion with heavy symptoms

8.7%

8.4%

7.7%

6.0%

One or more of the three disorders above +complications

Proportion with reduced function

0.3%

0.2%

0.3%

0.1%

As above, but with serious symptoms

Proportion using the health information sharing system

—

35.8%

50.7%

70.0%

Proportion with healthy body weights

18.5%

19.7%

21.4%

25.0%

Proportion receiving cautions

58.0%

61.7%

60.9%

50.0%

Proportion at risk of high blood pressure

1.1%

1.4%

1.2%

1.0%

Proportion at risk of diabetes

0.0%

0.3%

1.0%

0.0%

Proportion with poorly controlled diabetes

1.4%

2.0%

1.8%

1.0%

Job separation

Average length of service (years)

17.9

17.6

17.4

18.0

Temporary
retirement

No. temporarily retiring for mental health reasons

８

15

27

Fewer than 10

Including long-term absences

No. temporarily retiring for other reasons

3

７

6

Fewer than 5

Including long-term absences

Management of
those at highrisk
Health literacy

Health check
results
indicators

Presenteeism
Proportion using system for thosemissing work due to illness or injury

Results fromcollecting stresscheck findings

Proportion recording high stress levels

Those using the system once or more a month

—

—

—

0.32%

0.57%

0.75%

0.5%

Proportion of total employees

2.54

2.52

2.50

2.70

Answers to a worker questionnaire(maximum 4.00)

11.2%

11.8%

11.6%

10.0%

—

Not evaluatedMain measures

Health & Productivity
Management recognized by
METI in 2023
Now, for the fourth year in a row, we have once
again been recognized as an Outstanding Health &Productivity Management Organization (large
enterprise category) in fiscal 2023.

99.1%

Monthly average total working hours

DAI-DAN REPORT 2023

Notes

Mental health seminars

Working hours

35.7%

18.5%

Of the measures detailed above and opposite, the one we are currently prioritizing above all others is our efforts focused on “specifichealth guidance,” which covers those at risk of developing metabolic syndrome. Through our collaborative health efforts with Dai-Dan
Health Insurance Association, the implementation rate has gone up by around 10 points each year. Furthermore, for younger workers
or those who do not require such guidance, we run a system of similar, preparatory specific health guidance.
Our main health events are our walking rallies. Dai-Dan Health Insurance Association, which organizes these, last year started
taking part in the Japan Sports Agency’s Fun + Walk Project, and the walking rallies form part of this.

FY2023targetParticipation in
generalmeasures forworkers

35.6%

Proportion getting sufficient exercise

Work engagement Employee satisfaction score

Proportion of thosegetting sufficient sleep:
3-point increase fromprevious FY

Specific results and targets
Initiative

Proportion who smoke
Results fromcollecting
health checkquestionnaires

Absenteeism

Improved proportion of
those habitually exercising:
3-point increase fromprevious FY
Average no. of paid leavedays taken per year:
2-day increase fromprevious FY

Workstyle Reform TF
SMILE 2024 ProjectTop 100 in theindustry-specific Health
Scoring Report

Notes

FY2022

Valuing Our Employees Health and Productivity Management Initiatives

Valuing Our Employees Health and Productivity Management Initiatives

Introduction of a healthmanagement system(Pep Up)

Increased no. of viewsof emails/app about
lifestyle improvement

FY2023targetFY2021

Promoting Sustainability

Promoting Sustainability

Mandating of specifichealth guidanceLifestyle improvement
education/training(diet, sleep, aging, etc.)

Final target indicators

Continued 100% taking
regular health checks
Subsidies for healthmaintenance/improvement
training/seminar expenses

Issues we aim toresolve

Changes in worker awareness/behavior

Basic data

Employees : Male: 82.6%; Female: 17.4%
Average age : 41.9
Sites
:Tokyo, Nagoya, Osaka, Kyushu, Hokkaido, Tohoku, Niigata, Hokuriku, Chugoku, Shikoku

FY results
FY2020Supporting health promotion for business partners
In January 2023, we announced our Partnership Building Declaration. We
also identified “building better partnerships with subcontractors andsuppliers” as one of our material issues, and through a health and safety
council and the dedicated Subcontractor Portal site, we are providing
information about health and productivity management and jointly
implementing health events.

Proportion of participants from the entire
female workforce

DAI-DAN REPORT 2023

76

SMILE 2024 Project

PICK UP

Newly established Support Department

In April 2023, we established a Support Department in both our East Japan Division and our West Japan Division. By moving
tasks from job sites to offices, our aim is to go some way to reducing the load on the job sites.
The Workstyle Reform Task Force has formulated an instruction manual that governs how these departments are run. The
departments’ wide-ranging aims are to help job site workers do their jobs, support installation management, offer assistancewith CAD, aid safety and quality activities, play a part in job site patrols, and other roles besides.

SMILE 2024 Project to rectify the problem of long working hours
For us, long working hours are a pressing issue. To address it, we have cometogether for the SMILE 2024 Project, and the Workstyle Reform Task Force ispromoting these activities under the Sustainability Committee.

PICK UPTry 4.8! campaign
Promoting Sustainability

Promoting Sustainability① Changing awareness company-wide
As part of the SMILE 2024 Project, we launched the Try 4.8! campaign. The campaign
aims to bring about two days off a week for worksites (8 days every 4 weeks), and ensure
more than six months a year require only 40 hours or less of overtime a month, and lessthan six months require up to 80 hours a month.
As a symbol of their commitment to Try 4.8!, employees wear campaign badges, andare raising awareness through their efforts to promote it.

Eradicating the construction industry mindsets of giving up with the mistaken
belief that things cannot be changed or seeing long working hours as a given② Implementing measures to raise productivity

Imagining and implementing improvements to work processes from a zerobase, or using ICT

Valuing Our Employees SMILE 2024 Project

Valuing Our Employees SMILE 2024 Project③ Monitoring
Linking of targets and action plans into the sharing of results andimprovements

SMILE 2024 Project

In fiscal 2022, we implemented a change in awareness, trial measures led by trial teams, and the establishment of the foundations
needed for our initiatives.
In fiscal 2023 and beyond, we will roll out specific efforts to reduce workloads and invigorate communications to the entire
company. In addition, we will continue to make progress with the Support Department and use DX promotion and other measures toenhance task efficiency.

Try for six months or more a year with 40 hours or less of overtime a month!
Try for less than six months of up to 80 hours of overtime a month!
Try for eight days off every four weeks for worksites!

■Project activities for the latter half of fiscal 2022 and first half of fiscal 2023
Activity

PICK UP

Held a worksite workload survey for all engineers

Survey into office worker tasks

Interviewed office workers about their own tasks

Review of reports and business documents

Verified whether reports made it difficult for offices, technical departments, etc., to do their jobs

Written requests for customers to comply
with workstyle-reform-related laws

Sent general contractors and other customers requests to comply with workstyle-reform-related laws

Measures to invigorate
communications

Implemented measures to standardize how meetings are run and to secure regular opportunities for
consultations with younger employees

Establishment of Support Department

Reorganized tasks to move them from job sites to offices, with the aim of reducing the load on the worksite side

Written requests for customers to comply with workstyle-reform-related laws

In March 2023, we sent out requests tocomply with workstyle-reform-related
laws
togeneralcontractors,
engineering companies, clients fromwhom we receive direct orders, anddesign offices, with the aim of ensuring
compliance and also creating working
environments that support health andsafety.

77

Details

Second company-wide questionnaire

DAI-DAN REPORT 2023

■Requests❶ Ensure appropriate project durations that limit overtime to no more than 45 hours a month or 360 hours
a year❷ Set a date/time schedule that keeps worksites inactive two days per week for a better work-life balance❸ Decide design specifications early on and firmly adhere to time limits on changes❹ Ensure appropriateness of guidance and time for requests to conduct studies or create documents❺ Prepare an installation schedule that keeps meetings within regular working hours❻ Give task instructions at worksites within regular working hours❼ Allow worksite events to be attended in rotation (by worksite representatives) or remotely, to ensure
employees have a full two days off a week

PICK UPEngagement surveys

We prioritize engagement between our company and its employees. We introduced Wevox, a tool for analyzing engagement,
and in March 2023 we conducted the very first engagement survey.
The survey results show that one issue is the large number of workers who find it hard to balance their work and private
lives. They also highlight that if employees were to receive more support from their superiors, engagement would very likely
improve.
By focusing on improving engagement issues that we deem to be particularly important, we aim to create environments
where employees are motivated to work.

■Results from the first survey
Priority engagement issues

Work-life balance and support from superiors

One example of our efforts to address the work-life balance is our creation of the Support Department, which is leading to
improvements to long working hours, by having office staff better support worksite tasks.
An example of how we are boosting support for employees from their superiors, meanwhile, is our implementation on
regular, one-of-one meetings. By securing smoother communication between managers and younger employees, we are
striving to understand what support they need.

❽ Where delays come about from construction work, review contracts, including contracted deadlines❾ Aid our efforts to raise productivity and enhance task efficiency

DAI-DAN REPORT 2023

78

Marking Our 120th Anniversary
Update to the corporate logo
Previous logo

New logo

Foundations for Value Creation

Promoting Sustainability

The new logo makes use of the two Ds of Dai-Dan’s name. The deep blue D of the new logo is a continuation of the Ds of our previous
logo, and represents our tradition and legacy. The pale blue D that overlaps it, meanwhile, symbolizes our target, our ideal for the
future. It represents our future-focused attitude and how our future form has yet to take shape, we have accurate grasp of what itshould be. By placing the pale blue D of the future above and to the right of the deep blue D of tradition, we are highlighting Dai-Dan’s
attitude of taking on challenges with the aim of creating new value.

Valuing Our Employees Marking Our 120th Anniversary

Parties to commemorate 120 years since our founding
On the 10th of March, at a venue in Tokyo—andbroadcast to our branches in Hokkaido, Tohoku,
Niigata, and Singapore—around 700 peoplecelebrated our anniversary. A week later, a party ofaround 500 people at a venue in Osaka was alsobroadcast to our branches in Chugoku, Shikoku,
and Kyushu. On the 23rd, a party in Nagoya
brought together around 200 people, and was alsobroadcast to our Hokuriku Branch.
At the start of the parties, the chairman
reminisced about our history, while the president
spoke about our goals and the things that weshould work toward going forward. After thesespeeches, we screened videos that looked backover the 120 years of our history and each venue
enjoyed planned events.

Anniversary advertising and videos
We created anniversary advertising to express our thanks to everyone who has supported us
since our founding, and to represent our attitude of taking on challenges for our future.

79

DAI-DAN REPORT 2023

Foundations for Value Creation
81
84
84

Interview with an Outside Director

G(Governance)

Fair and Transparent Business Practices
Corporate Governance89

Directors and Auditors

91

Compliance (Legal Compliance and Corporate Ethics)

93

Improper Conduct Made Public in March 2023

94

Risk Management

96

Meeting Customer Expectations

96

Quality Improvement Initiatives

97

Initiatives with Subcontractors

97

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

98

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

DAI-DAN REPORT 2023

80

Foundations for Value Creation

Interview with an Outside Director

Interview with an Outside Director

Ikumi Sato Outside Director

I would like to see Dai-Dan value its company spirit
and culture as it provides comfortable environments
on a global scale

How do you rate the effectiveness of the Board of Directors?
I do think that the Board of Directors isfunctioning adequately, and we outside
directors also sit in on meetings of the
Executive Committee and Sustainability
Committee as observers. Outside officers
Foundations for Value Creation

Foundations for Value Creation

also often attend General Managers’
Meetings, and for Board of Directors
meetings

themselves,wereceive

explanations about agenda items several
days in advance. Where we desire more
information on an agenda item, this issomething we can get. In addition, forimportant matters related to the law, I

Interview with an Outside Director

Interview with an Outside Director

receive individual consultations or reports.
The current Board of Directors is a direct result of that. Goingable to appropriately acquire the information we need to makeback to my initial answer, I think the Board of Directors is

judgments about agenda items, and we are able to consider

functioning adequately because as outside directors we arethem carefully and ask questions.

What do you think of Dai-Dan’s efforts toward sustainability issues, such asenvironmental or human rights problems?

What do you consider to be the role stakeholders expect of you as an outside director?
As the title “outside director” would suggest, stakeholders

must be to advance diversity in the company. The construction

expect us to act as watchmen, based on experience thatindustry is worlds apart from the legal industry, and in mydiffers from that of other directors. From my background as aexperience, it is not just the case that things can be changed

lawyer, if some opinion or judgment strikes me as odd, I makeovernight in a slapdash manner. Instead, I would like everyone

sure to actively ask questions at the Board of Directors.

to join me in thinking about ways to promote diversity while

Because of my work, the answers to these questions tell me

retaining all that is good about the construction industry.

whether the opinions are founded on serious consideration or

Personally, I would first like to see the working situation fornot. Also, asking questions has the effect of forcing those

women in the industry match that of men. Doing so would, I

inside the company to think more deeply about how they camebelieve, help to rid the industry of its unconscious biases.

to the conclusions they did. I also think it offers an opportunity
for them to consider how best to explain their opinions so

Until I was appointed an outside officer at Dai-Dan, I was

From efforts like this, it is clear that Dai-Dan recognizes

unaware of the ZEB concept. When I first heard aboutthat sustainability is an important issue. Its mission is to offer

Dai-Dan’s technologies and the idea of a building generating

comfort, peace of mind, and safety through light, air, andelectricity—i.e., supplying its own electricity using renewable

water. One type of value that Dai-Dan provides is that its efforts

energy sources—I was deeply impressed. Even before theto offer people comfortable lives is not restricted to buildings, it

government started to push a response to climate change,

extends to protecting the planet. I would like it to go further, toDai-Danbe a company that develops comfortable environments for all

haddeveloped

ZEB

technologies

and

was

accumulating expertise in the area by rebuilding its own

living things.

buildings to ZEB specifications. I have been to see and walked

Another issue to tackle is workstyle reform. In the neararound the company’s ZEBs in Takamatsu, Fukuoka,

future, men and women will expect to be able to reskill, andSapporo, and Kanazawa, and have felt for myself thealso to have time for family matters or child-raising, alongside

importance of building up this know-how. I look forward to see

their work. I am self-employed, and as such I have

how Dai-Dan’s expertise is going to be condensed into thesimultaneously dealt with work, reskilling, and family andnew branch building in Niigata, which is currently underchildren, so I fully understand the importance of doing tasks

construction.

efficiently. It is also necessary to change our mindsets toembrace this kind of efficient working as apositive. I will be closely following the
progress of SMILE 2024 Project activities,
which aim to promote workstyle reform, intaking root in the company.

someone outside the company can understand them.
One important role I have to fulfill is bringing out greater
diversity. In my bar association, I took part in activities that withjoint participation between men and women. That, in part, ledhere to Dai-Dan, and so I recognize that one of responsibilities

81

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

82

Foundations for Value Creation

G

Foundations for Value Creation (Governance) Fair and Transparent Business Practices

Interview with an Outside Director

Corporate GovernanceFair and Transparent
G Business Practices(Governance)

What do you think aboutcompliance at Dai-Dan?

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

With the recent discovery of improper conduct,

More than anything else, I would like to see Dai-Dan really treasures its

there were several extraordinary meetings of thecorporate spirit and culture. Specifically, to be earnest and to value its

Board of Directors, and one after the other wepeople.

own investigations and explanations about

tolerates trial and error and that will drive the M&E services industry forward

Foundations for Value Creation

measures to prevent reoccurrence. What I

with its technologies. I think that the freedom to try various new things would

personally found unfortunate about the whole

be beneficial. The experience gained from errors would also prove an asset.

Interview with an Outside Director

reoccurrence

ordeal, was—just as the chairman had said at

As an example, it is through repeated trial and error as part of its

compliance seminars across Japan—the people

replacement of its own buildings that Dai-Dan has built up its expertise in ZEB

who

acted

technologies. This is the sign of a truly earnest company. However, I would

beforehand to ensure they did not ruin their lives.

like it to invest more in various areas, develop technologies, and accumulate

Going forward, we will need to check whereexperience.

act

improperly

could

prevention

havemeasuresareLastly, what I would like to say to everyone at Dai-Dan and its

functioning, with the aim of creating systems

subcontractors, is that this work of providing environments that allow people

that do not allow employees to break the law

to work in comfort—whether it be in offices, hospitals, factories, orand ruin their lives.

elsewhere—is a vital task. That I can work on legal affairs in the comfort of a

Corporate GovernanceOur approach to corporate governance
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.

Our basic policy on corporate governance is as follows.
• Ensure the rights and equality of shareholders• To ensure transparency, fairness, speed, and decisivedecision making, the Board of Directors will carry out its
functions appropriately and efficiently• Endeavor to disclose information appropriately and holdconstructive dialogues with shareholders• Work appropriately with stakeholders other thanshareholders

Fair and Transparent Business Practices Corporate GovernanceIn terms of expectations, I hope that it will become a company that

Foundations for Value Creation

heard reports on the findings by the company’s

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

legal office, is all thanks to everyone who works in the un-air-conditioned
discomfort of the construction site.
The construction industry faces strong headwinds, on a range of fronts,
and there has been some improper conduct, but despite this, I hope Dai-Dan

Dai-Dan Corporate Governance Guidelines

employees and subcontractors will workwith pride knowing that Dai-Dan will
provide the electricity, air, and water thatsociety cannot function without.

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.

Our corporate governance system

ProfileIkumi Sato

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

Director
April 1990
January 2006
April 2017
April 2018
April 2019

June 2019
January 2021
April 2021
June 2021

83

DAI-DAN REPORT 2023

Registered as a lawyer
Hearing Examiner, Japan Fair Trade
Commission
Vice-Chair, Daini Tokyo Bar Association
Executive Governor, Japan Federation of
Bar Associations
Member, Information Disclosure andPersonal Information Protection Review
Board, Ministry of Internal Affairs andCommunications (current position)
Auditor, Dai-Dan
Joined Nozomi Sogo Attorneys at Law(current position)
Managing Director, Japan Attorneys
National Pension Fund (current position)
Director, Dai-Dan (current position)

Board of Directors
The Board of Directors comprises eight 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 2023

84

G

Foundations for Value Creation (Governance) Fair and Transparent Business Practices

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.

Corporate GovernanceCompliance Promotion Office
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 directors elected by the Board of Directors, corporate officers
and auditors nominated by the representative directors. Members discuss and determine a broad range of important mattersconcerning 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 2023)
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.

ReportRefer
Appoint

Collaborate

Collaborate

ReportRisk Management 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.

Collaborate

Sustainability Committee

Compliance Committee

Collaborate

Internal Audit Office

Advising the Board of Directors
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

Supervise

Business execution

Accounting auditors

Reporting to the Board of Directors
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

Nominating andRemuneration
Committee

Compliance
Committee

Representative
directors

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

85

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

86

G

Foundations for Value Creation (Governance) Fair and Transparent Business Practices

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.

Corporate Governance④ 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)

370

259

96

13

6

Outside directors

45

45

—

—

3

Auditors (excl. outside auditors)

29

29

—

—

2

Outside auditors

31

31

—

—

2

Training policy for directors① Policy on determining director and auditor compensation

Compensation for directors (excl. outside 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%③ Compensation overview
Calculation method
Basiccompensation

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 thefindings of a third-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

Bonuses

Share-based
compensation

87

DAI-DAN REPORT 2023

The basic payout amount for bonuses is set by multiplying a standard amount, based on the individual’s position, by a payout
rate that is based on the degree of achievement toward the group’s overall operating profit target. The payout rate differs forrepresentative 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 basedon 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)
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 theratio of one share to one point. (excl. outside directors and individuals not resident in Japan)

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 ofour 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

Director and auditor compensation

Evaluating the effectiveness of the Board of Directors
Each year, the chair of the Board of Directors, as the person responsible, carries out an evaluation of the Board of Directors toassess 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 2023 show that the Board of Directors’ composition and debates areappropriate, and recognize that it is functioning effectively overall, that it has used online conferencing systems, allowed directors to
sit in as observers at meetings of the Executive Committee and other important management-related committees even if they are notmembers, provided outside officers in particular with advance explanations of Board of Directors agenda items, and is running things
efficiently. A future issue will be to promote studies and improvements to training for the Board of Directors to meet the latest
management challenges.

Internal control system
We have developed an internal control system that focuses on the improvement of internal rules. This is intended to ensurecompliance across our entire company and subsidiaries 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 reporting
The Internal Audit Office under the president examines and assesses the effectiveness of an internal control system for financial
reporting.
The fiscal 2022 assessment concluded that, as of the end of fiscal 2022, our internal control system for financial reporting iseffective. An independent auditor also provided a similar opinion.

DAI-DAN REPORT 2023

88

G

Foundations for Value Creation (Governance) Fair and Transparent Business Practices

Directors and Auditors

Directors and Auditors· FY2022 attendance: (Board of Directors: BD /Nominating and Remuneration Committee: NRC /Board of Independent Officers: BIO /Board of Auditors: BA )Directors

OutsideAuditors

25 %Outside(female)12 %Directors (excl. outside)

63 %Outside50%

Auditors (excl. outside)

50%
Foundations for Value Creation

Foundations for Value Creation

OutsideIchiro Fujisawa

Representative Director

Representative Director

April 1979
April 2018

April 1979
April 2018

Entered Dai-Dan
Representative Director, Chairman,
and Corporate Officer, Dai-Dan(current position)• Time as a director: 14 years• BD … 19/19 (100%)
NRC … 6/ 6 (100%)

Entered Dai-Dan
Representative Director, President,
and Corporate Officer, Dai-Dan(current position)

Masaharu
Takitani

Hideshi Osaki

TomoyaTsubotaStanding Auditor

Standing Auditor

Auditor

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 The Sanwa Bank, Ltd.
(now MUFG Bank, Ltd.)
June 2016 (Standing) Auditor, Dai-Dan(current position)• Time as a director: 14 years• BD … 19/19 (100%)
NRC … 6/ 6 (100%)• Time as an auditor: 7 years• BD … 19/19 (100%)
BIO … 16/16 (100%)
BA … 13/13 (100%)

Fair and Transparent Business Practices Directors and Auditors

Fair and Transparent Business Practices Directors and Auditors

Shohei Kitano• Time as an auditor: 3 years• BD … 19/19 (100%)
BA … 13/13 (100%)• Time as an auditor: 7 years• BD … 19/19 (100%)
BA … 13/13 (100%)

Skills matrix
OutsideOutsideFumio
Director (outside)
Matsubara

●

○

Ikumi
Sato

OutsideDirector (outside)●

Kenkichi
Kosakai

●

●

●

●

●

●

●

●
●

●

●

●
●

●

●

●

●

●

●

●

●

●

○

○

●

●

●

●

○

○

●

●

●

●

●

●

●

●

●

●

●

Director (outside)●

Director

Masaharu
TakitaniStanding auditor(outside)

●

●

○

○

April 1973

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

April 1976

Hideshi
Osaki

Standing auditor

●

●

●

○

TomoyaTsubota

Auditor

●

●

○

○

Hirofumi
Kyutoku

Auditor (outside)

●

●

○

○

DAI-DAN REPORT 2023

●

●

○

Director• Time as a director: 8 years• BD … 19/19 (100%)
NRC … 7/ 7 (100%)
BIO … 16/16 (100%)●●

Ikumi Sato

• Time as a director: 2 years• BD … 18/19 ( 95%)
NRC … 7/ 7 (100%)
BIO … 15/16 ( 93%)●●

Director• Time as a director: 2 years• BD … 19/19 (100%)
NRC … 7/ 7 (100%)
BIO … 16/16 (100%)●●

Kenkichi
KosakaiEntered Mitsubishi Chemical
Industries Limited (now Mitsubishi
Chemical Corporation)
June 2021 Director, Dai-Dan (current position)

●

○

Fumio
MatsubaraEntered the Ministry of Construction(now the Ministry of Land,
Infrastructure, Transport andTourism)
June 2015 Director, Dai-Dan (current position)

89

Outside●●●Knowledge of other industries

●

●

●

Overseas business

●

●

●

Legal affairs/auditing

Director,
corporate officer

Yasuhiro
Yamanaka●

Sales/marketing

Yasuo
Kamei

IchiroFujisawa●

Risk management/governance

Hisao
Sasaki

Representative
director, chairman,
corporate officer
Representative
director, president,
corporate officer
Director, senior
managing
corporate officer
Director,
managing
corporate officer

Shohei
KitanoDesign/R&D• Time as an auditor: 2 years• BD … 19/19 (100%)
BIO … 16/16 (100%)
BA … 13/13 (100%)Engineering• Time as a director: 5 years• BD … 19/19 (100%)

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

Accounting/financesEntered Dai-Dan
Director, Corporate Officer, andHead of the General Administration
Division, Dai-Dan (current position)

Corporate management/strategy• Time as a director: 3 years• BD … 19/19 (100%)

April 1986
April 2019

Particular areas of specialty or experience

Nominating and Remuneration Committee

Entered Dai-Dan
Director, Managing Corporate
Officer, Head of the Technical
Division, and Person in charge of theEngineering Division, Dai-Dan(current position)

Board of Independent Officers• Time as a director: 3 years• BD … 19/19 (100%)

April 1988
April 2022

Position

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)

Name

Compliance Committee

April 1983
April 2021

AuditorRisk Management Committee

Director

Executive Committee

Yasuo Kamei

Director

Board of Auditors

Hisao Sasaki

Director

Hirofumi
Kyutoku

Board of Directors

Yasuhiro
Yamanaka

●

●
●

●

●

●
●

●

●

* The “○” mark indicates observer status.

DAI-DAN REPORT 2023

90

G

Foundations for Value Creation (Governance) Fair and Transparent Business Practices

Compliance (Legal Compliance and Corporate Ethics)

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

Dai-Dan Group Action Standards
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.

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

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

8. Improve working conditions andwork environments
9. Respect human rights andindividuality
10. Address environmental issues
11. Practice proper accounting andtax payment
12. Maintain sound relationships with
politicians and the government
13. Eliminate any dealings with
antisocial forces
14. Avoid engaging in self-serving
actions

For cases that could cause serious damage to the group, the Compliance Committee, chaired by the chairman, convenes anddeliberates on necessary measures.

■Internal whistleblowing response procedure

Internal point of contact

ReportWhistleblowing
hotlineCompliance system* For more details on the corporate governance system, please see page 86.

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.

① Compliance cards—which feature policies on preventing corruptions—are distributed to new employees when they enter thecompany, 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 policies on preventing corruptions—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
policies on preventing corruption—including bribery, collusion, or embezzlement—with subcontractors or others, such as the
Antimonopoly Act.
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.
⑥ A internal whistleblowing and consultation system for compliance breaches has been established to identify and prevent
compliance breaches before they happen. It checks adherence to Dai-Dan’s Action Principles and Action Standards, andregularly reports on its operations to the Board of Directors.

91

DAI-DAN REPORT 2023

Notification acknowledging receipt

Report on reason

Whistleblower

Compliance education activities

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

Action Standards

No

Investigation complete notification(no correction necessary)No

Investigation and correction
complete notification○ Compliance Promotion Office○ Outside directors and outside
auditors

External point of contact○ Corporate lawyers○ Outsourced service

Consider necessity ofinvestigation

Yes

Investigation

Consider need forcorrection

Yes

Correction
measures

Complete correction
measures

Measuresto prevent
reoccurrence

Recipient of report (individual or department)

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

Action Principles

Foundations for Value Creation

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.

We have set internal whistleblowing regulation and in accordance with those, we operate an internal whistleblowing system.
In April 2022, in order to respond to a change in requirements because of revisions to the Whistleblower Protection Act, we carriedout a review and expanded the scope of whistleblowing 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.

Register/store
Problem improvement andcheck no unfair treatment

Follow up

Problem improvement(verification)

DAI-DAN REPORT 2023

92

G

Foundations for Value Creation (Governance) Fair and Transparent Business Practices

Risk Management

Improper Conduct Made Public in March 2023
That improper conduct occurred is highly regrettable, and we extend our sincere apologies for the great distress and concern
this has caused our shareholders and others connected to the company.
We have fully taken on board the findings of the Internal Investigation Committee and its suggestions to prevent
reoccurrence. We will implement strict measures to make sure this cannot happen again, and we will strive to rebuild the trust
we have lost.
The incident

On February 9, 2023, we established the Internal Investigation Committee, which included external lawyers and tax advisors, which
proceeded to investigate the incident. On April 26, based on the investigation report we received from the committee, we made its
findings public.
The report highlighted the causes of this incident: (1) awareness of compliance was insufficient or lacking altogether, (2) there wasa conspiracy and collusion with the subcontractor, (3) there were problems with task flows and management/control systems and, (4)fundamental reoccurrence prevention measures for past incidents had not been implemented.
After this, we undertook studies into specific measures to prevent reoccurrence, which we announced on May 11.
Penalties
After the facts of the incident were confirmed, the employees who had accepted kickbacks were first placed on leave, and then on
April 14, they received punitive dismissals or were instructed to resign. Employees involved in falsifying costs were also punishedseverely. To highlight their responsibility, at the meeting of the Board of Directors held on April 14, the punishment for executives inpositions of management and oversight was also determined.

In order to continue providing value for years to come, we have built a risk
management system to prevent risks from unexpectedly emerging and tominimize the likelihood of risks that do emerge coming about. We haveestablished 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 mattersrelated to risk management and reports those matters to the Board 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 to minimize
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.

■Risk management system
Representative
directors

Board ofDirectors

Secretariat(General Administration
Division)

Supervision

Sustainability
Committee

Risk Management Committee(Committee members)

Internal Audit Office· Director of Corporate
Planning Division· Head of General
Administration Division· Head of Sales Division· Head of Technical Division· Head of Quality,
Environment and Supply
Chain Division· Head of Innovation Division

Reporting

Risk

Reporting

Collaboration

Compliance
Promotion Office
Divisions

Instruction
Risk

Risk

Risk

Risk

Business unit/office
Executives and employees

Fair and Transparent Business Practices Risk Management

Fair and Transparent Business Practices Improper Conduct Made Public in March 2023

After its discovery

Risk management system

Foundations for Value Creation

Foundations for Value Creation

In January 2023, as part of a tax investigation at our Osaka Head Office, it was discovered that there had been improper conduct. In
short, a number of employees had colluded with a specific independent contractor involved in a project. The employees inflated thebudget for the contractor and produced false order invoices, in return for receiving part of the amounts involved as kickbacks,
embezzling it as entertainment expenses and swapping project costs through methods such as assigning project charges for different
projects ordered from the same contractor. The amount of damage was around ¥173 million.

Compliance (Legal Compliance and Corporate Ethics)

Risk

Risk Management Policy
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
Reoccurrence prevention measures
Taking into consideration the suggestions of the Internal Investigation Committee, we have formulated and enacted strict measures
to prevent reoccurrence.
1. Thorough in-house compliance education
2. Awareness-raising, etc., for compliance at subcontractors
3. Prevention of conspiracy or collusion with subcontractors
4. Improvements to work flows① Creation of implementation budgets that match actual
circumstances② Implementation of ordering tasks that clearly defines the specificproject details③ Sufficient understanding of site circumstances by the Technical
Department Manager and Technical Section Chief
5. Improvements to cost management systems① Construction of management systems that match actual
circumstances② Review of the role of the cost control department, andstrengthening of checks
6. Strengthening of internal audits
An opening speech by Chairman Kitano at a compliance seminar for Dai-Dan
7. Clarification of the rules on entertainment expenses
executives and employees, and subcontractors
8. Periodic personnel rotation

93

DAI-DAN REPORT 2023

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, all types of corruption (including bribery),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

DAI-DAN REPORT 2023

94

G

Foundations for Value Creation (Governance) Fair and Transparent Business Practices

Compliance (Legal Compliance and Corporate Ethics)

Meeting Customer Expectations

Roles of the Risk Management Committee
During usual operations

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

During a crisis
Acts to manage the crisis.

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

Discusses and decides on necessity of a task force
Information gathering

Quality Improvement Initiatives

1. Identification/recognition of risk

3. Management of risk

2. Evaluation/measuring of risk

4. Monitors/reports on risk

After the crisis ends

Investigates the risk and response

Impact of risk

MediumLow
Low

MediumCustomer evaluations

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 handing over 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
2022, we collected 611 replies to our customer satisfaction
surveys and earned an average overall rating of 3.58. 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.

High

Threat level

Works Preview Meetings

Initiatives to strengthen information security

Business continuity management

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 toexecutives and employees on the corporate intranet, which
provide cautions regarding the use of electronic equipment ineveryday 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.

We have set out our business continuity management (BCM)
approach, which incorporates the PDCA cycle of repeated
improvements to our business continuity plans (BCP).
As part of our education and drills, in April 2023 we carriedout drills for those responsible for dealing with disasters at
each site, with the aim of improving effectiveness and theability to make judgments during emergencies.
Theorizing various situations that might come about if there
were to be a real disaster, discussions were held at each site
about questions posed by the drill offices, and participants
checked the contents of their BCP manuals and improved theirability to respond to a disaster.

Implementatione-learning
Drill on how to handle targeted e-mail attacks

95

DAI-DAN REPORT 2023

Date

January 2023
August 2022

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.

Meeting Customer Expectations Quality Improvement Initiatives

Risk

High

Likelihood

Fair and Transparent Business Practices Risk Management

Impact is defined according to thelikelihood of a risk becoming reality, andthe threat level it poses. The Board of
Directors is made aware of the impact ofeach risk. For measures associated withmatters that present a high risk, such as
preventing corruption, internal investigations
or similar are carried out.

Our vision of quality

Foundations for Value Creation

Foundations for Value Creation

Redefines risks and reviews controls/monitoring

The Customer

Customer evaluations
Points made, details shared

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

Building Track Record System■Customer satisfaction survey results
4-point scale

We have been using a Building Track Record System, an internal
information system, in order to make the most of our installation
experiences. The Building Track Record 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.

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

FY2020

FY2021

FY2022

3.58

3.56

3.53

3.56

3.57

3.54

3.56

3.55

3.56

Backup capacity

3.51

3.49

3.52

Overall evaluation

3.65

3.61

3.58

Number of surveys completed: FY2020; 555/FY2021; 568/FY2022; 611

DAI-DAN REPORT 2023

96

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

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

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

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 Promotion Committee and similarcommittees for each of our offices. In the office committees,
members are representatives of labor and management. The
Central Health & Safety Promotion Committee, which oversees
the entire company, takes guidance from the president and ischaired by the Head of the Technical Division.

Dai-Dan Meister Program

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

Safety performance
TargetRecognizing Meisters
In December 2022, of the foremen working on Dai-Dan job
sites, 16 were newly selected as Excellent Foremen. Those
who were evaluated highest, a total of 5 individuals, wererecognized as Meisters. As of April 2023, we had a total of
45 certified Meisters:
13 electrical workers,
19 plumbers, 7 duct
installers, 4 refrigerant
pipers, and 2 insulation
workers.

Result

0.600

0.570

0.380

0.400

0.300

0.300

0.300

0.300

Total work hours

0.250

0.250

0.250

0.240

Frequency rate
(frequency of workplace accidents)
The number ofaccident-related deaths
and injuries (one or moredays off work)

0.480

0.500

0.300

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.
As well as certifying Meisters and Excellent Foremen, weoffer financial aid to those who have acquired certification as aregistered core engineer or similar and financial incentives arepaid to Meisters and Excellent Foremen for the work they do atjob sites of ours.
This most recent fiscal year, we started selecting
subcontractors that make a particularly big contribution, andrecognizing them as either Excellent Subcontractors or
Superior Subcontractors. In July 2023, financial aid was given
to 63 individuals, from 39 companies, who acquired
certification, and cash rewards were given to 134 Meisters andExcellent Foremen.

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 encouragethem to launch and promote self-directed health and safety
activities with clear role assignments.
5. We shall educate all people working for Dai-Dan in our policies forhealth and safety and also disclose them to the public.

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

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

Risk assessments“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 orlevel of ability. All employees from top management down are expected to cooperate in improving productivity, building a motivating workplaceenvironment, and earning and maintaining the trust of society.

Foundations for Value Creation

Foundations for Value Creation

Maintaining quality assurance through strong partnerships with our subcontractors

Our Policies for Health and Safety

× 1,000,000

0.200Comment from a Meister

0.100
0.000

I am very appreciative of the honor bestowed upon me
that is selection as a Dai-Dan Meister in fiscal 2022. It is asobering feeling each day, a mix of joy and responsibility.
What I try to do on site is to ensure health management
for workers and that work is safe. For that reason, I think
the morning hazard prevention meetings are vital.
Through individual conversations, I check workers are
feeling okay and I use my own installation diagrams toraise awareness of the work but also potentially
dangerous tasks, and explain these. Sometimes, we talkabout various topics unrelated to work, and I have beenworking to ensure communication is smooth throughout
the team.
For our company, most of our installation work takes
place outside, and sometimes it is even offsite, on publicroads or similar. This means the risk to bystanders can behigh and it is important that we value their safety at least
as much as we do our own. This is why I endeavor to
make sure everyone is safe by holding repeated meetings
with each site’s supervisors about the installation plans
and to eliminate dangers.
As a Dai-Dan Meister, inthe future I want to pass on
the experience, knowledge,
and skills that I have gained
to the next generation, as I
do my absolute best at mydaily tasks.

Junichi Hatakeyama
Fujita Mechanicalwork Co., Ltd.

0.016

0.008
Frequency rate

Severity rate Frequency rate

FY2018FY2019

0.013

0.004

Severity rate Frequency rate

Severity rate (severity of accidents)

0.010

0.020

0.020

0.020

Severity rate Frequency rate

FY2020

Severity rate Frequency rate

FY2021

0.010

Work days lost

Severity rate

Total work hours

× 1,000

FY2022

Fiscal 2022 evaluation
Objectives①Ensure three or fewer accidents resulting in a total of one ormore lost work days
②Reduce number of employees not taking sufficient time off
between shifts③Reduce health risks

Key points①Ensuring preventive safety management②Practicing thorough working hour management andencouraging measures to prevent overworking③Implementing measures to maintain and improve employee
healthDuring work-related accidents in fiscal 2022, 41 employees
were injured (1 of whom was killed, 4 of whom required time off
work, and 36 did not require time off). This was a decrease of
1 employee from fiscal 2021 (with 4 fewer requiring time off).
The severity rate for fiscal 2022 was much higher than theprevious fiscal year due to the death of an employee,
something we cannot permit to happen.

This tragedy occurred during a small-scale renovation, andwas the result of a failure to adhere to the basic rules that
require approval for stepladder work and to the work
instructions (hazard prevention activities) given on the day of theincident. This deviation from our basic installation management
operations led to a drop in the worksite safety managementlevel, and to the unsafe behavior by the victim. To ensure that afatality like this, or severe injury, cannot happen again, in fiscal
2023 we are strengthening management by adding two new
key points for safety management: “Make sure of thoroughsafety management at multiple works” and “Strictly adhere tousage rules for temporary scaffolding and equipment.”
Looking at work-related accidents for the last two or three
years, the number of incidents is rising among those, includingsite managers, who have less than five years’ experience andwho are insufficiently aware of dangers. With the aim of
reducing the number of incidents caused by insufficientawareness of dangers and those who casually dismiss
dangers, we will ensure sites have daily safety guidance andcommunication with workers. We believe that it is vitally
important to repeat guidance, and our activities will reflect that.

FY2022 Meister Awards Ceremony

97

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

98

Foundations for Value Creation

The correlation between reports on close calls and theoccurrence of work-related accidents, shows that those officesthat proactively gather close call reports are those with lower
rates of work-related accidents, but also those who end up
injured have low submission rates for close call reports. 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 the likelihood of a repeat of humanerrors. Through close call activities, we aim to raise the risk
awareness of employees and other workers, and reduce thenumber of incidents.
In order to reduce long working hours, we are promoting a
range of measures—promoting two inactive days per week forsites, ensuring workers take a break of at least ten hours
between shifts, introducing a planned annual holiday system,and encouraging extended time off during the Golden Week,
summer, and New Year periods.
The whole group will be working together in fiscal 2023 to
improve the following points.
① Ensuring preventive safety management② Make sure of thorough safety management at multiple
works③ Strictly adhere to usage rules for temporary scaffolding
and equipment④ Practicing thorough working hour management andencouraging measures to prevent overworking⑤ Implementing measures to maintain and improve
employee health

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

On October 5, 2022, Dai-Dan’s president, Ichiro Fujisawa,undertook a safety and quality patrol at one of Nagoya
Branch’s factory worksites, and verified the installation
situation there.
During this patrol, which coincided with National
Occupational Health Week, the president viewed theworksite and monitored the status of activities linked tooccupational health and safety management plans, theoperational status of the Construction Career Up System,and the status of installation quality management forrenovation projects, and offered guidance.
As part of his opening address, President Fujisawa told
employees: “This worksite, is our pre-construction site, andthis time the project is final renovations and mounting work.
We’ll be working as the facility continues to operate (althoughpartitioned off from areas where normal work continues), anda project where there is a risk that poor management of themounting work could impact on the existing equipment.
More than ever, make sure to thoroughly implement thebasic rules and behavior we’ve also used. Until now we havenever had an occupational accident, so I want you all to allpull in the same direction and finish this without incident.”
After the patrol, at the construction area, he reported
back about his patrol to all the workers there, and in the site
office he gave advice on thoroughly implementing the basic
rules to employees and workers from subcontractors, andalso verified measures to prevent quality issues andoccupational accidents.
This fiscal year’s occupational health and safety
management plans are ensuring preventive safety
management,
practicing
thoroughworkinghourmanagement and encouraging measures to prevent
overworking, and implementing measures to maintain andimprove employee health. In the future, we will work toensure health and safety, and develop workplaces that
motivate those that work there.

99

DAI-DAN REPORT 2023

Data

President Fujisawa carries out safety and quality patrols

Data
101

ESG Data

103

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

105

Consolidated Financial Statements

109

Major Financial Information

110

Share Information

111

Third-Party Opinion

DAI-DAN REPORT 2023

10 0

Data

ESG Data

Item

Environment
Item

Unit

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

Scope

15.7

Consolidated

12.3

12.7

13.8

14.9

15.1

Non-consolidated

1.8

2.2

2.2

3.0

3.7

Consolidated

2.2

2.4

2.6

2.8

4.0

Cases

Non-consolidated

4

4

4

10

7

Proportion of mid-career hires%

Non-consolidated

16

12

18

10

20

Proportion of female managers%

Non-consolidated

0.9

0.9

0.9

0.9

1.6

tCO2

Scope 1*2

GHG emissions intensity (Scopes 1 & 2)
(Emissions per million yen in net sales)

4,508

3,905

4,104

3,640

2,804

4,002

4,196

3,735

2,901

1,866

1,858

1,726

1,698

Total training expenses

1,866

1,858

1,726

1,698

2,040

2,247

1,914

1,106

2,136

2,338

2,009

1,203

24.2

27.3

24.0

16.8

23.6

26.6

22.9

15.6

Consolidated

2,463

Non-consolidated

tCO2

Scope 2*3

FY2022

Consolidated

kg-CO2/
million yen

30.6

Non-consolidated
Consolidated

58

61

76

131

115

Total training hours

Hours

Non-consolidated

71,946

63,50973,516102,176

108,759

Training hours per person

Hours

Non-consolidated

48.35

42.14

48.02

64.75

66.11

Non-consolidated(0.300)(0.300)(0.300)(0.250)(0.250)498

Industry standard*6

Non-consolidated(0.68)(0.59)(0.49)(0.36)(0.52)

98.6

ResultNon-consolidated

0.008

0.016

0.004

0.013

0.570

1,645

1,549

1,615

1,264

82.3

87.1

94.1

97.5

Power consumption

kWhNon-consolidated

4,858,045

4,648,422

5,350,291

5,260,558

5,201,941

kWhNon-consolidated

48,17656,222

115,045

801,988

2,611,297■WasteScope

Total industrial waste

TonnesFinal disposal

TonnesRecycled

FY2020

FY2021

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

Non-consolidated(0.01)(0.52)(0.01)(0.04)(0.03)

Deaths (direct employees)

Employees

Non-consolidated

0

0

0

0

0

Deaths (contract employees)

Employees

Non-consolidated

0

0

0

0

0

Severity rate

FY2018FY2019FY2020

FY2021

Non-consolidated

6,871

8,251

6,493

10,037

10,452

Non-consolidated

797

1,124

885

901

1,134

Item

Unit

Scope

TonnesNon-consolidated

6,074

7,127

5,608

9,136

9,318

Donations to NGOs/NPOs and investment in communities

Million yen

Non-consolidated

66

38

33

9

23

%

Non-consolidated

88.4

86.4

86.4

91.0

89.2

Non-consolidated

3

0

0

0

0

No. of industrial waste sorting categories/job site

Non-consolidated

4.0

4.2

4.2

4.8

5.2

Consolidated

3

0

0

0

0

Hazardous waste

TonnesNon-consolidated

23.5

12.8

16.0

37.3

50.2

General waste from offices

TonnesNon-consolidated

113

89

103

96

110

Recycling rate

FY2022■Contribution to social development

No. of violations of labor standards■Water resources
Item

Unit

Scope

FY2018FY2019FY2020

FY2021m3

Non-consolidated

59,122

55,761

58,69063,432

83,560

Water consumption at job sites

m3

Non-consolidated

45,26841,313

46,40350,691

70,946

Water consumption at officesm3

Non-consolidated

13,854

14,44812,287

12,742

12,614m3

Non-consolidated

13,854

14,44812,287

12,742

12,614

Water consumption

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

m /million yen
3

Cases

0.401

Non-consolidated

0.345

0

Non-consolidated

0.390

0

0

0.419

0.502

0

0

Unit

Scope

FY2018FY2019FY2020

FY2021

FY2022FY2019FY2020

FY2022

FY2021■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

Cases

FY2018Governance

FY2022■OtherScope
Non-consolidated

2

2

0.4

0.6

1.4

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

FY2018FY2019FY2020

FY2022

Unit
Million yen

FY2021

Compliance reports

Cases

Non-consolidated

6

4

4

11

11

%

Non-consolidated

46.0

46.7

48.9

46.5

51.1

Compliance seminars

Frequency

Non-consolidated

1

1

1

1

1

TonnesNon-consolidated

58.0

57.4

51.7

48.4

46.7

Compliance training e-learning

Frequency

Non-consolidated

1

1

2

1

4

Proportion of offices with ISO 14001 certification%

Non-consolidated

100

100

100

100

100

Risk sense training

Frequency

Non-consolidated

―

―

2

1

4

Money used to pay environmental fines, etc.

Yen

Non-consolidated

0

0

0

0

0

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

Society

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

Proportion of disabled employees

101

FY2019DAI-DAN REPORT 2023

Unit
Employees%

Board of Independent Officers
Scope
Non-consolidated

FY2018FY2019FY2020

FY2021

22

25

26

26

FY202229

Consolidated

23

26

27

27

30

Non-consolidated

1.7

2.0

2.0

1.9

2.0

Consolidated

1.8

2.1

2.1

2.0

2.1

ESG Data

ESG Data

0.300

Target14,976FY2018

Data

Data

0.480

Non-consolidated

Item

FY20220.250

Non-consolidated

Unit

FY2021

0.380

%

Item

FY2020■Occupational health and safety

Frequency rateof which, from renewables

FY2019

0.240

tCO2

16,275

Scope
Non-consolidated

Scope

Proportion of environmentally friendly vehicles

20,494FY2018FY2022

Unit
Million yen

Non-consolidated

GHG emissions from offices

14,968

Item

Unit

tCO2

22,755■Employee training

ResultScope 3 Category 11*4 reductions contribution(Reduction in CO2 produced during building operations
using our design proposals)

Non-consolidated%%

Human rights complaints

FY2021

2,045

FY2022

FY2021

15.3

FY2020Non-consolidated

FY202014.2

FY2019Consolidated

FY201913.1

FY2018Non-consolidated

tCO2

FY2018

12.6

Job turnover rate

■Greenhouse gases

Scope
Non-consolidated

Proportion of female employees

*1

Unit

ESG Data

Nominating and Remuneration Committee

Scope
Non-consolidated

18

16

16

16

19

Participation rate (%)

Non-consolidated

99

99

97

99

99

No. of meetings

Non-consolidated

16

17

17

17

13

Participation rate (%)

Non-consolidated

100

100

100

100

100

2

FY2019FY2020

FY2021

No. of meetings

Non-consolidated

7

9

8

14

16

Participation rate (%)

Non-consolidated

100

100

97

100

98

No. of meetings

Non-consolidated

―

―

―

2

7

Participation rate (%)

Non-consolidated

―

―

―

100

100

*1 Excluding Singapore Branch*2 CO emissions from gas, kerosene or gasoline consumption*3 CO emissions from secondary energy (electric power) consumption
2

FY2018FY2022Unit
No. of meetings*4 CO emissions from operating installed equipment*5 FY2023 target: 46 tonnes or lessIndustry standard frequency and severity rates taken from the MHLW’s Survey on Industrial*6 Accidents(equipment installation work (1,000+ employees))
2

DAI-DAN REPORT 2023

10 2

Data

Financial and Non-financial Data (Eleven-year Summary)Financial and Non-financial Data
(Eleven-year Summary)
FY endedMar. 31, 2013

FY endedMar. 31, 2014

FY endedMar. 31, 2015

FY endedMar. 31, 2016

FY endedMar. 31, 2017

FY endedMar. 31, 2018

FY endedMar. 31, 2019

FY endedMar. 31, 2020

FY endedMar. 31, 2021

FY endedMar. 31, 2022

FY endedMar. 31, 2023

Net sales of construction contract orders received

119,980

127,394

131,633

143,503

144,007147,335

158,533

170,121

176,526

183,668

206,337

Net sales of completed construction contracts

121,919

124,445

121,780

138,346

125,253

143,448

155,565

169,229

157,712

162,929

185,961

Gross profit on completed construction contracts

12,742

14,137

14,563

16,713

17,78818,786

19,11121,056

21,521

20,723

22,624

Selling, general and administrative expenses

9,992

9,966

10,016

10,176

11,038

11,40011,45011,993

12,767

13,13814,195

Operating profit

2,749

4,171

4,547

6,537

6,750

7,385

7,661

9,063

8,754

7,584

8,428

Ordinary profit

3,278

4,471

4,857

6,770

6,939

7,674

8,057

9,282

9,262

8,095

9,288

Profit attributable to owners of parent

1,599

1,670

2,921

4,248

4,638

5,109

5,464

6,399

6,318

5,778

6,626

Capital expenditures

968

90

428

981

1,037

381

850

325

584

1,203

2,887

R&D expenses

417

430

461

524

663

649

647

778

754

1,076

1,174

Depreciation

396

419

339

279

426

469

451

458

484

449

489

Cash flows from operating activities

1,261

3,117

2,427

611

5,395

3,320

(13,541)

12,742

14,241(11,718)

15,941

Cash flows from investing activities

(740)

(172)

(401)

(493)

(1,442)

(315)

(232)

(636)

(718)

(873)

(4,729)Cash flows from financing activities

(955)

(892)

(2,344)

(894)

(925)

(1,711)(1,317)(3,240)(3,487)(3,214)(2,218)22,42024,59824,35823,536

26,54927,858

12,776

21,616

31,747

16,03725,348

Total assets

106,155

111,347

113,440

122,312

118,454130,006

120,728

123,049

132,210139,099

148,544

Net assets

44,98846,60953,46254,58358,00464,417

66,39067,40974,837

77,24282,424

71.67

74.91

130.99190.53208.04229.19245.16291.29291.96270.16309.56

Financial Information (Consolidated)■Results (Million yen)

Financial and Non-financial Data (Eleven-year Summary)Financial and Non-financial Data (Eleven-year Summary)■Assets (Million yen)

Data

Data

Cash and cash equivalents at end of period■Per share data
Profit (yen)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

3,841.33

Dividend (yen)

38.00

32.00

36.00

40.00

46.00

56.00

76.00

90.00

90.00

90.00

100.00

Dividend payout ratio (%)

53.7

43.3

27.8

21.3

22.1

24.4

31.0

30.9

30.8

33.3

32.3

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 (%)

2.3

3.4

3.7

4.7

Equity capital ratio (%)

42.3

41.7

46.9

44.5

Return on equity (%)

3.7

3.7

5.9

7.9

8.3

8.4

8.4

Price-earnings ratio (%)

14.0

14.6

12.5

7.8

10.2

10.2

10.5

Price-to-book ratio (times)

0.50

0.52

0.69

0.61

0.82

0.81

0.87

0.94

5.4

5.1

4.9

5.4

5.6

4.7

4.5

48.8

49.4

54.8

54.6

56.4

55.4

55.4

9.6

8.9

7.6

8.3

10.0

10.1

7.8

7.7

0.85

0.58

0.62

FY endedMar. 31, 2013

FY endedMar. 31, 2014

FY endedMar. 31, 2015

FY endedMar. 31, 2016

FY endedMar. 31, 2017

FY endedMar. 31, 2018

FY endedMar. 31, 2019

FY endedMar. 31, 2020

FY endedMar. 31, 2021

FY endedMar. 31, 2022

FY endedMar. 31, 2023

Consolidated employees

1,445

1,472

1,498

1,493

1,505

1,540

1,600

1,617

1,644

1,727

1,830

of which, non-consolidated

1,364

1,389

1,409

1,411

1,416

1,446

1,488

1,507

1,531

1,578

1,645

Non-financial Information■Number of employees

10 3

DAI-DAN REPORT 2023

DAI-DAN REPORT 2023

10 4

Data

Consolidated Financial Statements

Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)

FY ended Mar. 31, 2022

(Millions of yen)

FY ended Mar. 31, 2023

AssetsFY ended Mar. 31, 2023

Liabilities

Current assets

Current liabilities

25,379Notes payable, accounts payable for construction contracts

24,02523,294

Notes receivable, accounts receivable from completed construction contracts and other

68,90369,625

Electronically recorded obligations—operating

12,047

12,109

Electronically recorded monetary claims—operating

15,002

9,487

Short-term borrowings

3,229

2,901

464

671

Income taxes payable

701

2,258

4,416

3,092

Advances received on construction contracts in progress

2,058

1,899

(6)

(136)

Provision for share awards

26

26

104,846

108,120

Provision for warranties for completed construction

70

48

Provision for loss on construction contracts

615

516

Deposits received

8,703

9,307

Costs on construction contracts in progress
Other

Consolidated Financial Statements

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

8,020

9,274

Other

6,004

9,169

Accumulated depreciation(3,739)(4,049)Total current liabilities

57,483

61,532

Buildings and structures, net

4,281

5,225

Machinery, equipment and vehicles

158

708

Long-term loans payable

675

720

(128)

(133)

Deferred tax liabilities

2,419

2,660

29

574

Retirement benefit liability

1,251

1,148

893

953

Long-term accounts payable - other5

5Accumulated depreciation

(694)

(714)

Other

22

51

Tools, furniture and fixtures, net

198

238

Total non-current liabilities

4,374

4,587

1,280

1,280

61,857

66,119

104

197

5,893

7,516

Shareholders’ equity

409

1,178

Capital stock

4,479

4,479

Capital surplus

4,837

4,837

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

Total liabilities
Net assets

Investment securities

15,837

18,790Retained earnings

63,946

68,638Retirement benefit asset

10,62811,459Treasury shares(3,166)(3,132)

Other

1,622

1,611

Total shareholders’ equity

70,09774,822

Allowance for doubtful accounts

(138)

(133)

Total investments and other assets

27,94931,728Valuation difference on available-for-sale securities

6,079

6,116

34,25340,424Foreign currency translation adjustment

34

112

139,099

148,544

Remeasurements of defined benefit plans

870

1,191

6,984

7,419

160

182

77,24282,424139,099

148,544

Total non-current assets
Total assets

Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

DAI-DAN REPORT 2023

Consolidated Financial Statements

16,065

Data

Data

Cash and deposits

Allowance for doubtful accounts

10 5

FY ended Mar. 31, 2022

DAI-DAN REPORT 2023

10 6

Data
Consolidated Statements of Income

Consolidated Financial Statements

Consolidated Statements of Cash Flows(Millions of yen)

(Millions of yen)

FY ended Mar. 31, 2022

FY ended Mar. 31, 2023

Net sales of completed construction contracts

162,929

185,961

Cost of sales of completed construction contracts

142,206

163,337

Profit before income taxes

Gross profit on completed construction contracts

20,723

22,624

Depreciation

Selling, general and administrative expenses

13,13814,195

Operating profit

7,584

8,428

Non-operating income

FY ended Mar. 31, 2022

FY ended Mar. 31, 2023

8,312

9,830

449

489

Increase (decrease) in allowance for doubtful accounts

(7)

124

Increase (decrease) in retirement benefit liability

26

(17)

(373)

(444)
70

Cash flows from operating activities

Interest and dividend income

Interest income

1212Interest expenses

98

Dividend income

360

432

Loss (gain) on valuation of investment securities

4−

Rental income from real estate

34

32

Loss (gain) on sale of investment securities

(364)

(551)

Insurance fee income

122

128

Loss (gain) on sale of non-current assets−(3)

Foreign exchange gains

135

327

Loss on retirement of non-current assets

142

16

(20,693)

4,793

Other

15

43

Decrease (increase) in notes and accounts receivable—trade

Total non-operating income

680

976

Decrease (increase) in costs on construction contracts in progress

Non-operating expenses

Decrease (increase) in other current assets(206)(2,992)

1,040

70

Decrease (increase) in other non-current assets

(10)

10

Guarantee commission

6

8

Decrease (increase) in retirement benefit asset

(363)

(454)

5,599

(670)

Rental expenses on real estate

99Increase (decrease) in notes and accounts payable—trade

Arrangement fees

35−

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

690

(158)

Commitment fees

5

19

Increase (decrease) in other current liabilities

558

3,241

Other

15

8

Increase (decrease) in other non-current liabilities

Total non-operating expenses

170

117

8,095

9,288

Ordinary profit
Extraordinary income
Gain on sale of non-current assets−

3Gain on sale of investment securities

364

551

−

4

364

559

Total extraordinary income
Extraordinary losses

629(9,007)

17,142

Interest and dividends received

373

444

Interest paid

(95)

(69)

Income taxes refund (paid)(2,989)(1,575)

Net cash provided by (used in) operating activities(11,718)

15,941

Subtotal

Cash flows from investing activities
Proceeds from withdrawal of time deposits

27

27

Payments into time deposits

(27)

(30)

(1,154)(1,804)−

3(5)

Loss on retirement of non-current assets

142

16

Purchase of property, plant and equipment

Loss on valuation of investment securities

4−

Proceeds from sale of property, plant and equipment

Total extraordinary losses

146

16

Payments for retirement of property, plant and equipment(67)

Profit before income taxes

8,312

9,830

Purchase of investment securities

(203)

(3)

Income taxes - current

2,009

3,116

Proceeds from sale and redemption of investment securities

774

744

563

82

Payments of loans receivable

(91)

−

Total income taxes

2,572

3,199

Proceeds from collection of loans receivable40

9Profit

5,739

6,631

Payment for establishment of subsidiary

(21)

−

(38)

4

Purchase of shares of subsidiaries and associates−(3,078)

5,778

6,626

Other payments

(194)

(658)

Other proceeds

43

67

(873)

(4,729)

Income taxes - deferred

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

Net cash provided by (used in) investing activities
Cash flows from financing activities

Consolidated Statements of Comprehensive Income(Millions of yen)

FY ended Mar. 31, 2022

FY ended Mar. 31, 2023

5,739

6,631

(1,367)36

Foreign currency translation adjustment

094

Remeasurements of defined benefit plans

(72)

321

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

Total other comprehensive income
Comprehensive income(1,439)

452

4,299

7,083

4,344

7,061

(44)

22

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

DAI-DAN REPORT 2023

Consolidated Financial Statements

Consolidated Financial Statements

98

Data

Data

Interest expenses

Reversal of allowance for doubtful accounts

107

(89)

Proceeds from short-term borrowings

33,57021,400

Repayments of short-term borrowings(34,370)(21,400)

Proceeds from long-term borrowings

1,100

800

Repayments of long-term borrowings(1,578)(1,083)(1)(0)

Dividends paid

(1,935)(1,935)

Net cash provided by (used in) financing activities(3,214)(2,218)Purchase of treasury shares

Effect of exchange rate change on cash and cash equivalents

97

317

Net increase (decrease) in cash and cash equivalents(15,710)

9,310

Cash and cash equivalents at beginning of period

31,747

16,037

Cash and cash equivalents at end of period

16,03725,348DAI-DAN REPORT 2023

10 8

Data

Major Financial Information

Major Financial Information/Share Information

Share Information(As of March 31, 2023)■Fiscal 2022 orders received and net sales ratios by segment
Electricalwork
28,741 million yen

Plumbing work
44,377 million yen

21.5%

Plumbing work
40,630 million yen

21.8%

13.9%

Ordersreceived
206,337
million yen

Electricalwork
32,879 million yen

17.7%
Net sales
185,961
million yen

Mechanicalwork
177,596 million yen

Mechanicalwork
153,082 million yen

Air conditioning
work
133,219 million yen

86.1%

Air conditioning
work
112,452 million yen

82.3%

64.6%

60.5%

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

4,942⑦ Listed stock exchangeTokyo Stock Exchange’s
Prime Market(Securities code: 1980)⑧ Shareholder registry administrator■Breakdown of share ownership
Financial
institutions

25.93%

Individuals, etc.

Financial
instruments
traders

40.33%

0.93%
Foreigncorporations, etc.

Other
corporations

11.18%

Mitsubishi UFJ Trust andBanking Corporation

21.63%■Orders received/Net sales■Orders received carried forward
Orders received

Net sales

200,000(Millions of yen)

184,158

200,000

250,000
170,121

158,533
155,565

176,526
183,668
162,929
157,712169,229

206,337
185,961

143,043
150,000

123,336

Share Information

Major Financial Information(Millions of yen)

Our goal was that by reducing the amount of money required to invest in a single share, we would make it easier to invest, while
also improving market liquidity and expanding the pool of investors.

163,782■Changes in number of shareholders

124,228150,000(Shareholders)
100,000

5,000

50,0004,500

No. of shareholders

4,942

100,000
50,000
0

2019

2018

2020

2021

■Operating profit■Ordinary profit(Millions of yen)

(Millions of yen)

10,00010,0008,000

9,063 8,754
7,661

8,428
7,584

8,000

6,000

2022

0

(FY)

4,000
2018

2019

2020

2021

2022 (FY)

0

8,095

8,057

6,399 6,318
6,000

5,464

6,626
5,778

2,000

2,000

2019

2020

2021

0

2022 (FY)

2018

2019

2020

2021

0

2022 (FY)

2018

2019

3,566

2014

3,404

3,479

2016

2017

2015

2020

2021

2022 (FY)

3,267

3,242

2018

2019

3,867

3,380

2020

2021

Shares held (thousand shares)

Shares held (%)

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

1,667

7.75

Tokyo Daigen Business Stock Ownership Association

1,138

5.29

MUFG Bank, Ltd.

973

4.52

Osaka Daigen Business Stock Ownership Association

781

3.63

Dai-Dan Employee Stock Ownership Association

770

3.58

Yurakubashi Building K.K.

738

3.43

Nagoya Daigen Business Stock Ownership Association

594

2.76

Sanshin Co., Ltd.

559

2.60

Custody Bank of Japan, Ltd.

518

2.41

Mizuho Bank, Ltd.

479

2.23

Major shareholders (ten biggest)

4,000

2018

2013

8,000

4,000

2,000

3,714

(Millions of yen)
9,288

9,282 9,262

6,000

4,000

3,959

3,500
3,000

■Profit

Data

Data

■On Sunday, October 1, 2023, we carried out a 2:1 stock split for ordinary shares.

2022

(FY)

Note: We possess
1,481,860
treasury shares,
which areomitted from thislist of major
shareholders andnot included
when calculating
the percentageof shares held.

■Total assets/Net assets/Equity capital ratio
Total assets(Millions of yen)
150,000
120,000
90,000120,728

132,210
56.4%

54.8%
66,390139,099
55.4%

54.6%
67,40974,837

77,242Equity capital ratio

148,544■Changes in market cap(Millions of yen)

55.4%

66,78560,00082,42440,00030,00020,000DAI-DAN REPORT 2023

Market cap

80,00060,0000

10 9

123,049

Net assets

48,72237,64434,1972014

2015

53,93968,09559,063
48,23954,44425,050

2018

2019

2020

2021

2022

(FY)

0

2013

2016

2017

2018

2019

2020

2021

2022

(FY)

DAI-DAN REPORT 2023

110

Third-Party Opinion

Third-Party Opinion

Initiatives related to environmental preservation
In terms of Dai-Dan’s response to the environment, looking at themateriality map included in this report, it is clear that contributing toa carbon-free society has been positioned as an extremely important
issue in terms of both importance and impact on stakeholders. As to
Scope 1 and 2 greenhouse gas emissions reductions, the fact thatlast fiscal year Dai-Dan was able to not only meet its initial target (ofa 46% reduction compared to fiscal 2013 levels) but greatly exceed
it (with a 54% reduction), speaks to how well that materiality has
been shared within the company. Going forward, as it works toward
its new long-term target of cutting emissions by 43% compared tofiscal 2019 levels by fiscal 2030, Dai-Dan is promoting problemresolution efforts centered on its Climate-related Task Force, whichcomes under the Sustainability Committee, and is expected totackle the issue as though it were its own problem.
Dai-Dan sends its subcontractors and suppliers CSR
procurement agreement forms, and this year it should surely be
praised for collecting them from all relevant companies (initiallyplanned for 5,500 companies but this could increase) and is forecast
to achieve this target.
The development and spread of ZEBs, meanwhile, is referred toin many places, including the President’s Message, characteristic of
this report. ZEBs are not only a way to tackle an environmental
problem—and thereby resolve one of the issues facing society—they are also directly linked to rises in corporate value that uses thecompany’s original expertise. As the methods are mostly utilized in
office projects, some aspects may not align with the fact thatindustrial facility projects are becoming a bigger proportion of totalorders, but we hope that Dai-Dan will continue to work toward its
targets.
For the company’s social contribution activities, the Dai-Dan
Forest preparatory activities that have been planned over past fiscal
years actually began with tree-planting at nine sites across Japan

111

DAI-DAN REPORT 2023

after agreements were signed. These activities help to contribute to
local communities by outsourcing their management to local forestry
associations in areas where Dai-Dan has a branch. Tree-planting
and thinning are also a way of contributing to the COP15 target of
reducing threats to biodiversity. Dai-Dan’s commitment should notjust be to temporary activities for the duration of the agreements, but
to continuous activities that take a longer-term perspective.
In the field of joint research with universities, it seems that thecompany is also planning business related to smart energy. This field
is believed to entail research that can contribute to bringing about aricher, more sustainable society, so it is intimately linked to ESG
elements, the SDGs, or other societal problem viewpoints.
We think these are still in the development stage, but we lookforward to the disclosure of more information as appropriate, via
channels such as the integrated reports.

Initiatives related to work-life balance andimproving the work environment
The SMILE 2024 Project, which was launched last fiscal year to rectify
the problem of long working hours, is being promoted through arange of concrete initiatives, that include company-widequestionnaires, the new establishment of the Support Department,
requests for general contractors and other companies to comply withworkstyle-reform-related laws, a review of reports and businessdocuments, and proactive recruitment of experienced personnel.
Moreover, during our interviews, we heard that there are studies into
other concrete responses as future activities, such as introducing
outsourcing and new attendance/absence systems, andstrengthening recruitment of mid-career hires. In the President’s
Message part of the report, the president spoke not only about theupper limit on overtime that will come into effect in April 2024, he

Initiatives related to corporate governanceand legal complianceWith regard to corporate governance, we welcome the fact that theBoard of Independent Officers, which comprises only outside directors
and auditors, met 16 times in fiscal 2022, and that outside officers

were able to attend Board of Directors meetings having received
sufficient information on management and other issues. We believethat the outside officers are adequately independent, and that
effectiveness evaluations for the Board of Directors are functioning
effectively.
The Nominating and Remuneration Committee, which is chaired byan outside director, met seven times in fiscal 2022, and during thattime debated succession planning and rules revisions, but also theimproper conduct by employees that was made public in March 2023.
Through meetings like those above in which outside officers play acentral role, we expect their duties of utilizing their independent
perspectives, keeping specific issues in mind, and acting proactively,
will be increasingly important in ensuring management is fair andtransparent.
As for human rights due diligence, continuing on from the previous
year, the task forces that come under the Sustainability Committee areat the heart of Dai-Dan’s continuous efforts. As well as enhancing its
training with the help of outside consultants, Dai-Dan seems to be
taking a concrete approach to raising awareness of human rights
inside the company. We hope that it will evaluate the effectiveness of
its response to human rights risks, while also enhancing the scope ofthat evaluation to include its overseas business. In addition, Dai-Dan’s
newly established Human Capital Task Force is working to strengthen
employee engagement, so we can expect to see concrete efforts
toward diverse, fair recruitment (DE&I) to make the organization more
resilient.
In terms of compliance, as well as an explanatory overview in thereport about the aforementioned improper conduct, it includes specificmeasures to prevent reoccurrence—such as thorough internal
compliance education and task flow improvements—and we can see
the company’s earnest approach of facing the problem head-on. In
particular, to raise employee awareness of compliance, the chairman
has himself toured Japan, to offer guidance to all employees, and foraffiliated subcontractors, he has encouraged sharing information about
the risks of impropriety. This effort from top management to lead will
surely foster and strengthen compliance awareness throughout theentire organization.
The internal whistleblowing system that the company operates
featured an external hotline, that was previously only manned bycorporate lawyers but now another external hotline has been set up
separately that is run by an external specialist company. This clearly
guarantees neutrality, and this system should be utilized more
effectively. We also expect that raising the effectiveness of the internal
whistleblowing system will lead to the earlier discovery of various risks
and will strengthen compliance. Hopefully, Dai-Dan will continue towork to spread awareness of how to use the system.

Third-Party Opinion

Third-Party Opinion

These are the opinions of myself and three other lawyers—Motohiro Shibuya, Saeko Kakuishi, and Kazuhiro Arioka—from the Kinki Branch of
the Japan CSR Promotion Association, which was founded to set up, propagate, and develop corporate social responsibility (CSR). In thisthird-party opinion, in line with written guidelines such as the Corporate Social Responsibility Guidelines published by the Japan Federation of
Bar Associations, and from an independent and fair standpoint, we present our findings on this, the Dai-Dan
Integrated Report 2023–2024. In doing so, we have considered Dai-Dan’s management and the developmentof its SDG and ESG initiatives, the balance between business and human rights, and recent trends in corporate
governance.
During our evaluation, after verifying and investigating the information contained in this integrated report, we
asked for necessary documents and answers to our questions. Based on these, we conducted interviews withrelated individuals and the results of these were shared among our legal team, and we exchanged opinions andstudied the company’s actions.
While the full details of our opinions are given below, there are two sections I will comment on here: The first,
the section under the key phrase of “value creation”—the 120-year history of Dai-Dan’s initiatives, its
formulation and promotion of value creation processes, the steady successes of its long-term vision, its setting
and actions on materiality that reflect the company’s actual circumstances, and other areas—has easy-to-read
explanations and data and is well laid out with diagrams, tables, and photographs. Equally, the section on Masatoshi Ohara
Attorney, Licensed to practice in New
corporate governance and compliance fields introduces how the company has taken on board what has York State (USA)Former Deputy Chairman, Japan
happened there, and specific measures, including measures to prevent reoccurrence, that it is taking. This Federation of Bar Associations
Former Chairman, Osaka Bar
latter section also incorporates the evaluation and opinions from one of Dai-Dan’s outside directors in the form Association
General Director, Japan CSR Promotionof an interview, which makes it easier to follow.
Association; Director, Kinki Branch
That is why we have been able to evaluate this report, its layout and contents, so highly.

positioned rectifying the problem of long working hours in theconstruction industry as one of the biggest problems getting in theway of developing the younger workers who will take the industry
forward. This shows that Dai-Dan is not treating this as a short-term
issue of adjusting to changes in the law, the company rightly
recognizes the essence of the problem and is working on it with a viewto the long-term future. That approach, and its activities and initiatives,
is something we praise highly, and we expect that by further
promoting this project, the company will make great strides in tackling
the problem of long working hours.
In terms of occupational health and safety, the death of an
employee was very unfortunate, and the result was also a majorworsening of the severity rate. To ensure that there is not a repeat ofsuch an incident, the company must analyze the causes andstrengthen its measures to prevent reoccurrence. I heard that while
the cause was determined to be a failure to adhere to basic rules andwork guidance, Dai-Dan incorporated the analysis and held meetings
to raise awareness of occupational accident reoccurrence prevention
efforts throughout the company, and that specific reoccurrence
prevention measures—such as reeducation about basic rules, andthe adding of new management guidelines—are already being
implemented. That multiple, concrete measures are underway soquickly, and that they take on board the cause analysis results, iscommendable. We strongly hope that reoccurrence prevention
measures function effectively so as to prevent this kind of tragedy
before it can happen again.
For DX, we think highly of Dai-Dan’s continued proactive
promotion efforts, such as its utilization of ICT and remote worksite
support teams. In the future, in a pandemic world and beyond,companies will each need to study whether their various working
environments are suitable for users and workers, and take thebusiness environment into account. On this point, while theteleworking implementation rate has dropped from the previous fiscal
year, this alone does not call for a negative appraisal. We expect
Dai-Dan to instead look at raising both the teleworking
implementation rate and the quality of the teleworking it offers.

Reflecting on the third-party opinions
I am extremely grateful to Mr. Ohara, Mr. Shibuya, Ms. Kakuishi, and Mr. Arioka for their opinions, which wevalue. Their evaluations of our efforts to address environmental conservation, work-life balance,
employees’ working environments, corporate governance, and compliance as priority issues areencouraging, and we will take on board their proposals as matters of great urgency. In the future, too, wewill work flat-out to provide our stakeholders with value and make society more sustainable.

Yoji Sasaki
Senior Corporate Officer and CIO
Director of Corporate Planning Div.

DAI-DAN REPORT 2023

112