DAI-DAN REPORTDAI-DAN CO., LTD.

Contents

Dai-Dan’s 114-year History

Inspired by Light,
Air &Water

Message from Management ........................................ 03
Dai-Dan’s Businesses ...................................................... 05
Corporate Profile / Financial Highlights ....................................... 05
Operational Highlights ................................................................... 06
Our Services .................................................................................. 07
Mid-Term Management Plan ....................................................... 09
Dai-Dan’s Corporate Social Responsibility ................................. 11

Haneda Airport Terminal 2, Tokyo (2010)

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

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

March
February 2003

April
2003

April
2013

April
October 2008
2006

April
2014

May
2016

Regenerative
Medicine Division(Cellab Tonomachi,
Kobe Office) is
established.

2002

Sumitomo General Head Office
Building, Osaka (1907)

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

Nagoya City Library, Aichi (1923)

Aichi Prefectural Government Office
Building, Aichi (1938)

Bank of Japan Head Office Building,Tokyo (1931)

OctoberJanuary 1975

March
1978

April
October 1987
February 1984

enefice Kyushu(new Kyushu Branch
office building) iscompleted.

December
1999
September
1997
AugustMarch
November 1989
1987

September 1983

New Research Center is completed
in Technical Research Laboratory.
All offices
through thenation obtainthe certificationof ISO 9000S.

Singapore Branchobtains the certificationof ISO 9000S.
The company lists its stock on
the first section of Tokyo
Stock Exchange.

January 1981
1979

Compliance Office isestablished.

1993

March
1993

April
2017

Corporate officer system is introduced.
Compliance Committee is established.
Company-wide information system is introduced.
The company celebrates its 100th anniversary.
The company obtains a blanket certification of
ISO 14001 for all offices through the nation.

The first mortgage convertible bonds of
5,000 million yen are issued.
Technical Research Laboratory is constructed at
Miyoshi-machi, Iruma-gun, Saitama Prefecture.

The company’s stock is designated on thefirst section of Osaka Securities Exchange.
The amount of completed works
breaks the 50,000-million-yen mark.
The company lists its stock on the second
section of Osaka Securities Exchange.

CREATE, Singapore (2011)

JP Tower, Tokyo (2012)

The corporate name is changed to
Osaka Denki Danbo Co., Ltd.
The company is registered as a contractor inaccordance with Construction Industry Act.

FY2016 CSR Performance and FY2017 Targets ..... 45
Fair and Transparent Business Practices ........... 47

Since fiscal 2008, we have been publishing our CSR report as a meansof informing our stakeholders of our business operations and CSR
initiatives. Beginning in fiscal 2014, we renamed this publication the
Dai-Dan Report. Compiled as an integrated corporate report, it contains
both financial and non-financial data in addition to the conventional
content.
This year, we have included feature articles on some new efforts withwhich we are pursuing “continued growth”.

● Scope of This Report
Target organization

The corporate name is changed back to Osaka
Denki Shokai/Osaka Danbo Shokai Co., Ltd.
Supreme Court Office Building,Tokyo (1974)

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

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

PeriodThis report covers the fiscal year spanning April 1, 2016, to March 31,
2017. Some data refers to activities after April 1, 2017.

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

● Report Guideline References

Founded.

Nippon Budokan, Tokyo (1964)

DA I - DA N R E P O R T 2 017

Application of the Meister System and Establishment ofPartnerships with Our Subcontractors across Japan ............... 44● Editorial Policy

Singapore Branch is opened.

01

Ongoing Improvement of Site Management Methods .............. 42

Global Network ..................................................................... 72

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

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

Enhancing Our Installation Expertise andAbility to Provide Design Solutions .............................................. 39

Financial Report ................................................................... 67
Third Party Opinion ............................................................ 71

The corporate name is changed to DAI-DAN CO., LTD.

1903

Dai-Dan’s Practical Competence ............................. 31
Introducing Our Installations ......................................................... 33

Valuing Our Employees ................................................... 59
Meeting Local Expectations ........................................ 64

The amount of completed works breaks the
100,000-million-yen mark.

September 1946
October 1943
March 1933

Dai-Dan’s Developmental Technologies ............. 21
Medical Facilities ............................................................................ 23
Pharmaceutical Manufacturing Facilities and Research Laboratories ... 25
Data Centers .................................................................................. 26
Food-processing Plants................................................................ 26
Electronic and Precision Device Plants ....................................... 27
General Facilities ............................................................................ 29

Environmental Contribution ......................................... 53
Meeting Customer Expectations .............................. 56

The amount of completed works
breaks the 200,000-million-yen mark.

October 1965
December 1949

Feature: What We Are Doing to Ensure Continued Growth ... 12
Facing Challenges in the Regenerative Medicine Business ...... 13
What Dai-Dan Is Doing with ZEB ................................................. 17
IoT Applications in Building Systems .......................................... 20

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

Mozo Wonder City, Aichi (2009)

Medical Innovation Center Building,
Kyoto University, Kyoto (2013)

Shinagawa Season Terrace, Tokyo (2014)

Japanese Standards Association “ISO26000:2010”
Ministry of the Environment Environmental Reporting Guidelines (2012)
GRI Sustainability Reporting Guidelines, 4th edition (G4)DA I - DA N R E P O R T 2 017

02Message from Management
Message from Management

Seeking continuous value creation in order
to contribute to a better environment andthe development of society
At Dai-Dan, we believe it is our duty to maintain an environment in which people canlive their lives in safety and comfort. Our efforts are guided by our management
principles of creating value for our customers while contributing to the developmentof a better environment and stronger communities in our role as a building services
engineering and installation provider.

Staking new challenges to continued growth
All throughout the 100-plus years that we have doing business as abuilding services engineering and installation provider, we havesought and delivered the electrical, air conditioning and sanitaryenvironments our customers have required.
Over these years, the environments demanded by customers andhuman society as a whole have changed greatly, and thetechnologies we have been expected to provide for that have becomemuch more sophisticated and specialized. In a world like this, wemust stay on top of changes and think outside the conventionalbounds of building services and systems. For that reason, we are
already challenging new fields of business.
One example of these new challenges is the “regenerative
medicine” business.
Here, we developed an “Air Barrier Booth” for the next
generation of cell processing facility (CPF)1, by applying the airflow
control technology that we cultivated with hospital andpharmaceutical plant systems that must be capable of managing theirenvironments with fail-safe precision.
Going forward, we will be exploring ways to create business as asupporting industry to the regenerative medicine field, by collecting
information, building relations with universities, research institutes
and businesses, and pursuing innovation in cohort with otherindustries through the Cell Processing Facility & Open Lab (Cellab
Tonomachi) that we opened inside the Life Innovation Center in
Kawasaki City, Kanagawa Prefecture and our Kobe Office that we
newly established in the Kobe Biomedical Innovation Cluster inKobe City, Hyogo Prefecture.
Another example of the new challenges we are pursuing is the“Zero Energy Building” (ZEB)2 business.
We are a step ahead of other businesses in the ZEB field, having
introduced smart energy technologies to our Technical ResearchLaboratory and built a Smart Energy Lab dubbed “enefice Kyushu”
at the Kyushu Branch.

03

DA I - DA N R E P O R T 2 017

These efforts received good reviews and resulted in our
registration as a “ZEB Planner” in the ZEB Planner registration
system that the Ministry of Economy, Trade and Industry created
to promote ZEB construction, in May 2017.
Moreover, we registered as a “ZEB Leading Owner” in the
ZEB Leading Owner registration system launched by the
Sustainable Open Innovation Initiative to recognize and widely
publicize businesses that are proactive about low energy
buildings.
In the energy field, we feel it our duty as a building services
engineering and installation provider to continue sending the
ZEB message by way of our building facilities, to encourageothers to get onboard the Net-Zero Energy Buildings3 targeted inJapan’s Basic Energy Plan.
One last example of our new challenges to continued growthis in the “Internet of Things (IoT)4 for buildings.”
We began exploring the utilization of IoT in buildings way
ahead of other companies. This has led to a prototype “Smart
Building Control System” that we developed in cohort with aninformation system developer and are currently field-testing.
These field tests focus on building lighting and air-conditioning
control in response to the location and actions of individual
subjects, but in the future, we will use artificial intelligence (AI)5
to optimize operation and reduce energy consumption of theentire building including heat source control.
In this way, we are staking new challenges to continued
growth by expanding the scope of our engineering andinstallation services, and by applying the light, air and watertechnologies that we have cultivated in building design services
to developing new technologies and getting into new areas ofbusiness either as an extension of what we already do or in areasthat are separate and detached from what we have done before.

Setsu Sugaya

Shohei Kitano

Representative Director
Chairman
DAI-DAN CO., LTD.

Representative Director
President
DAI-DAN CO., LTD.

Getting back to our origins indesign and installation services
At Dai-Dan, we have always adapted to the times, so the ongoingchanges in social and industrial structures and the accelerating
pace of technological innovation you see today are why we are
restructuring ourselves into an organization that can continue tocreate and provide the environments that customers demand, nomatter what the day and age. This is also the reasoning behind
our establishing of a Technical Development Group in April
2016 and a Technical Construction Group in April 2017. These
two groups are working hand-in-hand to extend our engineeringreach to larger projects and facilities that require state-of-the-art
technologies, and to enhance our design proposal services andtechnical abilities as a company.
Precisely because today’s dramatic changes are spawninglarger projects and broadening business domains, we believe thetime is right to return to our origins as a design and installationcompany and strengthen our expertise in advanced technologies
so that we are better positioned for the anticipated construction
projects of the near and distant future.

～Alway s Wit h Yo u.～

Together with our stakeholders

Since our company was established, we have continued to work
together with our customers, shareholders, investors,
subcontractors, employees, and local communities — a diverse
assemblage known collectively as “our stakeholders.”
Today, we are going beyond our engineering scope of thepast by applying those assets and skill sets to new business areas
in anticipation of our 120th anniversary six years down the road.
Going forward, we will step up our challenges to continued
growth and plot a course in business together with our
stakeholders, in order to improve our value as a sustainable
company and maintain our place and presence as a company thatsociety can trust.
As we address the challenges of the future, we very muchlook forward to your continued support and cooperation.

1 A facility that produces cells needed for regenerative medicine.
2 A building that achieves a zero energy balance in operation and use by way of energy-saving measures and use of renewable energy.
3 A ZEB that achieves a zero energy balance without using fossil fuels as its primary energy source.
4 A concept for creating innovative services and added-value by connecting all sorts of appliances to the internet.
5 A computer system that possesses human faculties for learning, reasoning, recognizing, making decisions, etc.

DA I - DA N R E P O R T 2 017

04Dai-Dan’s Businesses■ Fiscal 2016 Orders Received and Net Sales Ratios by Segment

Corporate Profile
Company
name

DAI-DAN CO., LTD.

■ Organization Chart

21.5%

Ordersreceived
144,007
million yen

Auditors’ meeting
Executive Committee
Compliance Office

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

Internal Audit Office

Air conditioning
installations
72,501 million yen

57.9%

Technical Research Laboratory■ Orders Received/Net Sales

Industrial Facilities Division

Incorporated October 10, 1933

150,000

Technical Construction Group

120,000

Advanced Technical Construction Division

Capital fund 4,479,725,988 yen

General Administration Division

60,000

Hokkaido

30,000

TohokuEast Japan Area

0

Niigata
Tokyo Head Office131,633
121,780

143,503138,346(Millions of yen)

144,007125,253

Singapore Branch

6,537 6,750

7,000
6,000
5,000

4,171

4,000

4,547

2,749

3,000
2,000
1,000
2012

2013

2016

2015

2014

0

(FY)

2012 2013 2014 2015 2016 (FY)

NagoyaCentral Japan Area

Stock listing The first section of Tokyo Stock Exchange

127,394
124,445

121,919
119,980■ Operating Income

Net sales

90,000

Sales Division

1,505
Employees(as of March 31, 2017) consolidated

Orders received(Millions of yen)Technical Construction Division

Hokuriku

West Japan Area

Okayama(Millions of yen)

Chugoku

7,000

Shikoku

6,000
5,000

Kyushu(Millions of yen)

6,770 6,939
4,471(in million yen)

FY2012FY2013

FY2014FY2015FY2016

Orders received

119,980

127,394

131,633

143,503

144,007

Net sales

121,919

124,445

121,780

138,346

125,25301,005.38 1,040.67

1,193.61 1,219.41

10,176

11,038Operating income (loss)

2,749

4,171

4,547

6,537

6,750

Ordinary income (loss)

3,278

4,471

4,875

6,770

6,939

120,000

Net income (loss)

1,599

1,670

2,921

4,248

4,638

Return on assets (ROA) (%)

3.1

4.1

4.3

5.7

5.8

90,000Return on equity (ROE) (%)

3.7

3.7

5.9

7.9

8.3

Cash flows from operating activities

1,261

3,117

2,427

611

5,395

30,000

500
250

2012

0

2013 2014 2015 2016 (FY)2012

Total assets

2013

2014

Net assets

2015

Cash flows from investing activities

(740)

(172)

(401)

(493)

(1,442)

(955)

(892)

(2,344)

(894)

(925)

0

Cash flows from financing activities

22,42024,59824,35823,536

26,549FY2012FY2013

FY2014FY2015FY2016

Total assets

106,155

111,347

113,440

122,312

118,454

Net assets

44,98846,60953,46254,58358,004

42.3

41.7

46.9

44.5

48.8

2016 (FY)

Equity capital ratio（％）

150,000

60,0001,296.64

750(Millions of yen)

10,016106,155

111,3 4 7

44,988
42.3%
2012

50.0

48.8%

48.0
46.0

44.5%
54,58353,462

46,609118,454

122,312

113,440
46.9%

58,004

44.0
42.0

41.7%
2014

2013

2016

2015

(FY)

40.0

Operational Highlights■ Non-Financial Data
Number of employees (consolidated)(in yen)

1,000■ Total Assets/Net Assets/Equity Capital Ratio

9,966■ Per Share Data

1,250

2,000 1,599 1,670

2012 2013 2014 2015 2016 (FY)9,992

(in million yen)

1,500

1,000

Selling, general and administrative expenses■ Fiscal Year-End

4,638

2,921

3,000

1,000

■ Accounting Year

4,248

4,000

4,875

2,000
0

(Yen)

5,000

4,000 3,278
3,000

Financial Highlights■ Net Assets per Share■ Net Income■ Ordinary Income

Osaka Head Office05

Net sales
125,253
million yen

Technical Development Division

Regenerative Medicine Division

Equity capital ratio (%)

20.7%

58.4%

Technical Development Group

March 4, 1903

Cash and equivalents at end of period

21.4%

Dai-Dan’s Businesses

President

Electrical installations
25,926 million yen

Air conditioning
installations
84,106 million yen

Compliance Committee

Vice-president

Founded20.1%

Shareholders’ meeting
Board of Directors

Plumbing installations
26,825 million yen

Electrical installations
28,933 million yen

Plumbing installations
30,967 million yen

Number of workplace accidents

FY2012FY2013

FY2014FY2015FY2016

1,445

1,472

1,498

1,493

1,505

29

38

36

26

18

FY2012FY2013

FY2014FY2015FY2016Frequency rate of workplace accidents1

0.522

0.536

0.461

0.173

0.190

Net income

35.83

37.45

65.50

95.26

104.02

Severity rate of workplace accidents2

0.069

0.077

0.021

0.017

0.004

Net assets

1,005.38

1,040.67

1,193.61

1,219.41

1,296.64

CO2 emissions from offices (tonnes)3

1,421

1,428

1,745

1,618

1.732

Dividends

19.00

16.00

18.00

20.00

23.00

DA I - DA N R E P O R T 2 017

1 Number of workplace accidents per million work hours 2 Number of workdays lost per thousand work hours
3 Beginning in fiscal 2014, the target was changed to reflect the new CO2 equivalent.

DA I - DA N R E P O R T 2 017

06

Dai-Dan’s Businesses
Our Services● Projects completed in FY2016

Air
conditioning
installations

The temperature, humidity, flow and purity of air are indispensable to maintaining a comfortableinterior environment in a building. Air conditioners help to create and maintain this environment.
Air conditioners vary from general-purpose types for office buildings to precision models
used in semiconductor fabrication plants. At Dai-Dan, we respond to the needs of our customers
by applying expertise gained through long experience and developing advanced air
conditioning technologies at our Technical Research Laboratory.
Our air conditioning systems have been installed in many advanced facilities, including
energy-efficient green data centers, hybrid operating rooms, and cell-processing facilities (CPF)
required for regenerative medicine.
We also can turn to our advanced technologies and vast experience in order to assist
customers with the planning, design and installation of any future ZEB (Zero Energy Building)wishes they might have.

Kakogawa City Hospital

Miyota Saku Factory, Citizen Watch Manufacturing(air conditioning installation)(air conditioning and plumbing installations)

JA Niigata Kouseiren Ojiya General Hospital(air conditioning and plumbing installations)

CP-R3 Project, Kao Odawara ResearchLaboratories

Plumbing
installations

Water is a precious resource. Plumbing components are used to supply safe, clean water andfacilitate appropriate drainage of waste water. In addition to providing plumbing installations, weare also involved with plumbing systems that harvest rainwater and reuse wastewater as animportant step toward preserving the natural environment.
We also strive to ensure safety and protect building assets with sprinkler facilities that reduce
the possibility of fire as well as indoor and outdoor fire hydrants that provide water.

Renovations

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

Overseas
operations

Dai-Dan has operations in Singapore and other countries where we provide services to factories
and research centers that can fully utilize our expertise.
We have completed a number of contracts overseas, primarily in our field of expertise. We
have built cleanrooms and installed energy saving systems that have been very well regarded
by our customers.
Dai-Dan provides high quality systems and strives to establish a strong presence in each of
the respective countries.

Toyosu Smart Energy Center(electrical and air conditioning installations)(air conditioning and plumbing installations)● Projects completed in FY2015

Fukuoka Mirai Hospital, Souseikai Medical Group(air conditioning and plumbing installations)

New Building Phase 1, Hachioji Campus,
Teikyo University (air conditioning installation)

Minimally Invasive Surgery Ward,
Kobe University Hospital (electrical, air conditioning,and plumbing installations)

New K-1 Building, Nichia Corporation(air conditioning and plumbing installations)07

DA I - DA N R E P O R T 2 017

Hiroshima Red Cross Hospital & Atomic-bomb
Survivors Hospital (air conditioning installation)

DA I - DA N R E P O R T 2 017

Dai-Dan’s Businesses

Electricalinstallations

Electricity and the electrical equipment on which it flows are the lifeblood of a building. They
supply the power to equipment and services that allows a building to fulfill its function.
Electrical installations involve the installation of a high-voltage transformer, a distribution
board and the wiring that supplies electricity to lighting, outlets, pumps and fans.
Electrical equipment is crucial to the saving, generation and storage of energy. Dai-Dan
converts ordinary buildings to smart buildings by, for instance, reducing power consumption
through LED lighting installations, generating electricity by installing solar panels and enablingenergy storage that is critical for the efficient use of solar generated electricity.
Dai-Dan’s electrical equipment technology is not limited to energy-efficiency applications; italso extends into diverse areas such as supporting business continuity plans (BCP) that takeeffect during times of disaster.

Major Projects Completed in FY2015 and FY201608

Mid-Term Management Plan 2016‒2018～Alwa y s Wit h Yo u.～
As the first step to implementing reforms in the lead-up to our 120th anniversary, Dai-Dan crafted
a Mid-Term Management Plan spanning the three years from fiscal 2016 to 2018 in April 2016.

Management Principles
As a building services engineering and installation provider,
we continually take on the challenge of creating value
for our clients while contributing to the developmentof a better environment and stronger communities.

Vision of Our Three-year Plan
Focused on Our 120th Anniversary
The focus of our strategies and policies is to create different types of environments. These include
the environments our customers in a variety of fields require for their business operations as well as
support for earth-friendly environments. By implementing these strategies and policies, we aim tobecome the company that creates the different types of environments our customers require.

Advanced Technology

Management Foundation

Becoming a partner that excels at creating
environments for our customers

Establishing a management foundation capableof responding to shifting markets

Our goal is to become a partner that excels at
providing our customers with the environments
they require for their business operations.
Strategy 1

Management Policies❶ We maintain focus on our customers as the business environmentchanges so that we can meet all their needs.
❷ We operate the business in compliance with all legal and regulatory
requirements.
❸ We ensure that our corporate activities assure the safety and quality of
products and services and contribute to environmental preservation.
❹ We attain our corporate targets by pursuing both our strategies and policies.

Advanced
Technology

Vision of our three-year plan
focused on our120th anniversary
Business
Development

Corporate
Responsibility

Management
Foundation

Targeted Earnings [Fiscal year ending March 31, 2019 (90th fiscal period)]

Orders received

Consolidated

Non-consolidated

151 billion yen

150 billion yen

Net sales

151 billion yen

150 billion yen

Operating income

7.5 billion yen

7.5 billion yen

Management Indicator Operating Income Ratio: 5%09

DA I - DA N R E P O R T 2 017

Strengthening our engineering capabilities forbuildings requiring high-technology facilities

1. Disseminating the ZEB initiative and proposals for smart energy
applications through building facilities
2. Developing advanced technology for high-technology facilities(biotechnology and devices)
3. Enhancing our ability to accommodate special facilities
4. Establishing the Technical Development Group

Strategy 2

Approach to environmental users

1. Training of sales engineers
2. Development of new fields that will serve as next-generation revenuebases
3. Sales of proprietary systems

Strategy 3

Mid-Term Management Plan

Dai-Dan’s Businesses

Dai-Dan ̶ Creating the environments
our customers require

Establishing a system for sharing growth with
our subcontracting companies

1. Utilization of a network of subcontracting companies
2. Implementation, together with subcontracting companies, ofintegrated measures to increase construction efficiency
3. Provision of support for recruiting to subcontracting companies
4. Strengthening the ability to accommodate our business continuity
plan in cooperation with subcontracting companies

Business Development
Taking advantage of light, air, and water technologies
to develop new areas of businessIn order to meet the diverse environmental needs ofour customers, we are utilizing our technologies todevelop new business areas.
Strategy 1

Developing businesses that make full use of
the characteristics of a building services
engineering and installation provider

1. Developing businesses through collaborations with companies invarious fields by leveraging underlying technologies as a building
services engineering and installation provider
2. Researching capital tie-ups and M&A in areas where growth isexpected
3. Developing a challenging spirit

Establishing a management foundation resistant toeconomic fluctuations
Strategy 1

Creating an organizational administration that
can accommodate changing markets andsocial conditions

1. Obtaining orders for new strategic projects (national projects)
2. Directing an organization focused on market scale(goal-setting and assignment of engineers)
3. Policies to obtain orders based on local characteristics

Strategy 2Strengthening our capital and financial
foundation

1. Building relationships with stakeholders through capital policies
2. Researching investments characterized by a solid financial
foundation

Strategy 3

Strengthening practical competence

1. Increased cost-reduction efforts
2. Increased accident eradication efforts
3. Establishment of a field support system
4. Utilizing IT to increase field operational efficiency
5. Implementation of a cycle of design, construction, maintenance andrenewalStrategy 4

Accommodating diverse ways of working

1. Promoting a more appealing work environment for women
2. Securing skilled personnel and reforming the educational system
3. Reviewing the retirement system and revising the terms andconditions for re-employment

Corporate Responsibility
A company that meets the demands of society

To survive as a company, we will ensure complianceand respond to social demands as a good
corporate citizen.
Strategy 1

Continued compliance management andstrengthening of corporate governance1. Continued strengthening of governance and education to ensure fair
and appropriate business transactions

Strategy 2

Promoting social contribution initiatives as agood corporate citizen

1. Promoting company-wide social contribution initiatives
2. Engaging in activities outside the company to contribute to thedevelopment of the building facility industry

DA I - DA N R E P O R T 2 017

10

Dai-Dan’s Corporate Social
Responsibility

What We Are
Feature Doing to Ensure
Continued Growth

We strive to provide comfort that is friendly
to both people and the environment.
Dai-Dan believes that we play our part in the sustainable development of society by delivering safety, security and comfort
to people’s lives through our building services engineering and installation work. CSR at Dai-Dan is about encouraging each
employee to pursue the realization of a better environment and the development of society as they perform their tasks in

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

Customers

1

Employees

Shareholders

Facing Challenges in the
Regenerative Medicine Business

DAI-DAN CO., LTD.

Business creation by open innovation

Subcontractors

Environment

Local
community

We strive to protect our environment and prevent global warming by strengthening our initiatives
to develop low environmental impact installation processes and energy saving technology.
Shareholders

Employees

Subcontractors

Local community

We strive to meet ourcustomers’ needs andprovide them with highvalue-added solutions
as well as high quality,
comfortable spaces.

We recognize that it isour duty to enhance
corporate value, maintaintransparent and soundoperations and disclose
appropriate information
in a timely manner.

We place priority on
our employees’ safety
and health, and arecommitted to ensuringthat their workplace is
comfortable.

• We conduct businessnegotiations with ourbusiness partners
including subcontractors,
while striving to adhere toprinciples of the utmost
fairness and transparency.
• We are committed to
improving safety andquality by building healthy
partnerships with our
subcontractors.

We recognize that weare a member of society
and strive to exist inharmony with the local
community through oursocial contributions in
our position as a
responsible corporate
citizen.

What Dai-Dan Is Doingwith ZEB
Our take on ZEB as a building services
engineering and installation provider

Environment

Customers

P. 17-19

FeatureDai-Dan’s Responsibility

DA I - DA N R E P O R T 2 017

P. 13-16

Feature2

11

What We Are Doing to Ensure Continued Growth

Stakeholder Relations

FeatureAt Dai-Dan, rather than confining ourselves to the conventional bounds ofbuilding services engineering and installation providers,
we are taking on new challenges with our eyes on the future.
Here, we introduce some of the new things we are doing to ensure continued growth.

keeping with the five Action Principles of our Corporate Code of Ethics (p. 49).

P. 20

Feature3

IoT Applications in
Building Systems
IoT and collaboration in automaticbuilding control innovation

DA I - DA N R E P O R T 2 017

12

Combining knowledge related to medicine and pharmaceuticals
with a focus on the field of regenerative medicine
Dai-Dan has conducted wide-ranging R&D into air-conditioning systems as a precursor and component of theextensive track record we have posted in the medical and pharmaceutical fields. With regard to hospitals, weare tops in the industry for customized air conditioning for hybrid operating rooms, immunocompromised
patient rooms and other special applications. And, for the pharmaceutical industry, we have done numerous
jobs including vaccine production plants and GMP-qualified facilities for producing sterile products. We areapplying these experiences and our vast portfolio of technologies to products and services for the regenerative
medicine applications pursued in both the medical and pharmaceutical fields.

Facing Challenges in the

FeatureRegenerative Medicine Business

1

Business creation by open innovation

Sharing the latest technologies through seminars and exhibitions

Project Leader Dr. Masayo Takahashi of RIKEN speaking at a seminar Dai-Dan sponsored in November 2016

In regenerative medicine, cells taken from the patient or a donor are prepared, cultured and processed outside
the body, then transplanted back in the patient. The facility that prepares the cells is called a “cell processing
facility” and is currently built on the same concepts as a pharmaceutical plant.
Two laws that apply to regenerative medicine are the Act on the Safety of Regenerative Medicine and thePharmaceuticals and Medical Devices Act. Future applications in regenerative medicine are expected to be
based on these two laws.
The capabilities demanded of CPFs differ according to the medical product and procedure. In response to
those demands, we propose CPFs that are easy to use and can ensure the required levels of quality and safety.
■ Flow of regenerative medicine

Medical Institution■ Laws related to regenerative medicine

CPF (Cell Processing Facility)

Cell collection

Transport

Acceptance ofcells and raw
materials

Preparation,
culturing andprocessingof cells

Act on the Safety of Regenerative Medicine

Pharmaceuticals andMedical Devices Act

Clinical research,treatment

Clinical trial,
production and distribution

Companyplants, etc.

Medicalinstitution

Companyplants, etc.

* Licensed facilities* Registered facilities* Licensed facilities
Procurementof cells

Shipping inspection

Transport

13

DA I - DA N R E P O R T 2 017

Processing,storageSpecific cell
products(processed
products)

Processing,storage

In April 2017, Dai-Dan launched a Regenerative Medicine Division to oversee corporate strategies and planning forthe regenerative medicine business. Parallel to that, we established our Cellab Tonomachi inside the Life Innovation
Center that was established in Kawasaki City, Kanagawa Prefecture as a business incubator for industrializing
regenerative treatments and cell therapies. This new lab is the centerpiece of a 3-pronged coordinated offensive with
our Kobe Office (Kobe City, Hyogo Prefecture) and our Technical Research Laboratory (Miyoshi Town, Saitama
Prefecture) aimed at developing new technologies and devising new services.

● Information-sharing

amongst 3 operating bases● Development of new

Kawasaki City,
Kanagawa PrefectureOpen
innovation

Cellab Tonomachi

Verification
at CPF

4F Life Innovation Center (LIC)

technologies● Devising of new services

Kobe City,
Hyogo Prefecture

Kobe Office
Collectionof information
on needs

Collection

Transplantation

Launch of the Regenerative Medicine Division

Facing Challenges in the Regenerative Medicine BusinessCurrent status of regenerative medicine

What We Are Doing to Ensure Continued Growth ❶The chances of you seeing or hearing about regenerative medicine in the news are increasing. Much of the
focus is on iPS cells and the like, but technological innovation will have to come from surrounding industries
before regenerative medicine will be readily available to all. At present, regenerative medicine is expensive
because of the financial burden of revamping and maintaining facilities for culturing and processing cells (Cell
Processing Facility, CPF).
At Dai-Dan, we are using air-conditioning technologies that we have long cultivated to build advanced
CPFs of significantly lower construction and running costs. As a part of those efforts to promote innovation in
the regenerative medicine field, we opened our Cellab Tonomachi in April 2017.

FeatureWhy regenerative medicine?

Dai-Dan has organized and hosted various carefully planned seminars on regenerative medicine. One suchprogram that was staged in November 2016 looked at current issues in regenerative medicine and reported ontrends and prospects in related industries with a special focus on CPFs. Representatives from industry,
academia and government spoke to a large audience about the “Latest News from the Frontline ofRegenerative Medicine.”
Moreover, Dai-Dan showcased regenerative medicine technologies at both the Tokyo and Osaka venues ofInterphex Japan.
And, Dai-Dan partakes in the Forum for Innovative Regenerative Medicine (FIRM) where, through theactivities of the Supporting Industries Committee, communicates with everyone in industry.

6F Kobe International
Business Center (KIBC)

Miyoshi Town,
Saitama Prefecture

Technical ResearchLaboratory
Element
experiment

Processing,storage

Implementation(transplantation)

Products used
in Regenerative
Medicine andthe like

Purchasing ofauthorized
products… Offices
Information
dissemination

Technologicaldevelopment

DA I - DA N R E P O R T 2 017

14

Open innovation
process

Cell Processing Facility & Open Lab
As its name suggests, Cellab Tonomachi is positioned as an open
innovation lab where researchers in the field of regenerative
medicine gather with supporting equipment developers andservice providers to develop, test and verify better production
processes. The research environment has been designed and built
to produce results more quickly by connecting institutes andbusinesses so that they can practice open innovation.
The CPF was designed and built for ease of use, safety andcost-performance, under the guidance of Dr. Masayo Takahashi
of RIKEN who performed the first successful surgery in the worldusing iPS cells.

Regenerative
medicine
research
institute

Cell culturing/processing
company

Reagent/
Culturemediumproducer❶ Identification of issues
Persons from research institutes and privatecompanies culture and process cells at the
CPF, then identify issues from the work processthat are of interest.

Lab
equipment
manufacturer

CPF
builder/
operator❷ Setting of themes
Participating businesses hold a workshop on
the identified issues to explore solutions anddevelopment themes.

DAI-DAN CO., LTD.

Cleaning/
Sterilization
services
provider❸ Development and verification

Logistics
company

Automatic
culturingsystemmanufacturer

FeatureWhat We Are Doing to Ensure Continued Growth ❶Products and technologies researched anddeveloped by the participating businesses
are verified at the CPF.

Equipment/
Material
manufacturer

Development system
The “Smart CP Unit” combines our “Air Barrier Booth” with Kaneka’s“Programmable Closed Circuit Cell Culture System.” The new concepts these
integrated technologies present have received good reviews, leading to thefirst unit being delivered to Matsumoto Dental University Hospital.

CPF area

Open innovation area

By introducing

the Smart CP Unit

(Air barrier booth + Programmable closed circuit cell culture system)

Greatly downsize yourcontamination control area%
90
Savingwith cleanroom technology

Exhibition area
This common area is used todisplay history of products
created through collaborative
efforts and explanatory
panels. Exhibits are open
to visitors.

Facing Challenges in the Regenerative Medicine Business

What cannot be solved by one business alone
can be accomplished by open innovation.
Workshops and other learning opportunities
are held here.

Provides a clean environment for
culturing and processing cells.
Rooms are spacious and fully
advanced with eyes on the
future.

DAI-DAN CO., LTD.

Because the equipment can be used withoutcomplicated remodelingSpace

Construction
PeriodCost%
75
Saving%80
Saving%90
Saving* Numerical values are based on the model case.

Cleanroom technology

State-of-the-art
environment for culturing
and processing cells

Labs fordeveloping and assessing
products

Training facility fordeveloping cell
culture technicians

Culture and processcells in less space!

Programmable closed circuit
cell culture system

Innovation Center of NanoMedicine

CYBERDYNE Inc.

Life Innovation
CenterLife Science & Environment
research center
Central Institute forExperimental Animals
Rental lab,hotel, etc.
(Daiwa House Industry)
Create Medic Co., Ltd.
FUJIFILM RI Pharma Co., Ltd.
Tonomachi 3-chome

15

DA I - DA N R E P O R T 2 017

National
Institute of
Health Sciences

PeptiDream
Inc.
Japan Radioisotope
Association
Tokyo Science Center,
Johnson & Johnson K.K.

ute 6 Kawasaki Lineays Kanagawa Ro
Shuto Expressw

Tonomachi I.C.

〈 Regenerative Medicine Div., DAI-DAN CO., LTD.〉
Address: 3-25-22, Life Innovation Center R407, Tonomachi, Kawasaki-ku,
Kawasaki City, Kanagawa, 210-0821 JAPAN

Phone: 044-276-5010 Fax: 044-280-0036

DA I - DA N R E P O R T 2 017

16

ZEB Promotion Office created within the Advanced Technical Construction Division

What Dai-Dan Is Doing

Featurewith ZEB

2

Our take on ZEB as a building services engineering and installation provider

Previous efforts to support and promote ZEB1

New wing at our Technical Research Laboratory

2013

After applying to the ZEB Planner registration
system 5 that the Ministry of Economy, Trade andIndustry created to promote ZEB construction, wewere registered as a “ZEB Planner.” With that title,
we can help to spread the ZEB initiative and, by
virtue thereof, contribute to society’s evolution
towards smaller carbon footprints, by providing
customers support in planning ZEB projects andapplying for public grants 6.

Registered as a “ZEB Leading Owner”
We also applied for and were registered as a “ZEB
Leading Owner” under the ZEB Leading Owner
registration system 7 launched by the Sustainable
Open Innovation Initiative to recognize businesses
that are proactive about low energy buildings. This
recognition gives us a platform for announcing ZEB
projects and our mid- and long-term plans andtargets for introducing ZEB.

▶ Built a new wing for presenting and showcasing technologies developed by Dai-Dan.
▶ Introduced the latest technologies for conserving, generating and storing energy,

VOICEe.g., solar heating.

▶ Established a proving ground for technologies intended to effectively utilize energy

What We Are Doing to Ensure Continued Growth ❷Verification and assessment by energy conservation, generation and storage

Registered as a “ZEB Planner”

FeatureTo support and promote ZEB, we have applied our technical expertise that we have cultivated as a building
services engineering and installation provider, to developing energy-saving and installation technologies.
This effort includes building a new wing at our Technical Research Laboratory for verifying and assessing
energy conservation, generation and storage, and retrofitting the remaining labs with state-of-the-art “smart”
technologies for similar performance assessments. And, as a third initiative, we built enefice Kyushu, Smart
Energy Lab at our Kyushu Branch.

One of the strategies we advocate in our Mid-Term Management Plan is to “introduce our Net Zero Energy
Building (ZEB) and smart energy initiatives derived from our building facilities.” This falls in line with ourManagement Principle of “taking on the challenge of creating value for our customers while contributing to thedevelopment of a better environment and stronger communities as a building services engineering andinstallation provider.”In April 2017, we created a ZEB Promotion Office for overseeing all of our ZEB operations. Through thisoffice, we will apply what we have learned about ZEB via enefice Kyushu and our other efforts as a ZEB
Planner, to making proactive proposals and diffusing ZEB concepts.

Comment of the Manager of
our ZEB Promotion Office

I am fortunate to serve as the manager of the ZEB
Promotion Office that was launched by the Advanced
Technical Construction Division in April 2017, as it givesme the opportunity to apply my experience as thegeneral director of enefice Kyushu, which wascompleted in 2016.
Japan’s Basic Energy Plan sets 2020 for new public
facilities and 2030 for average new buildings of any
nature as the target year for realizing ZEB. Dai-Dan is far
ahead of other companies in terms of ZEB R&D andverification testing. We are looking to solidify that
position through our activities
both as a registered ZEB
Planner and registered ZEB
Leading Owner.

Location:
Saitama Prefecture
Total floor space:
1,945 m2
Showcased technologies: Micro co-generation system, waste heat driven absorption
chiller-heater, medium-temperature water thermal storage tank,cool pit/warm pit, solar power generation, LED lighting

Verification and assessment of retrofitted “smart” technologies
Retrofitting with state-of-the-art “smart” technologies

2015▶ Retrofitted research labs with energy-saving technologies.
▶ Introduced technologies to enable heat interchange among buildings.

Facility overview▶ Built next-generation office that is both energy-saving and comfortable.

Location:
Saitama Prefecture
Total floor space:
1,578 m2
Showcased technologies: Renewable energy loop, heat interchange system,
LED and task/ambient lighting, solar power
generation with energy storage by lithium ion
batteries

Creation of a next-generation building“enefice Kyushu” — Smart Energy Lab at our Kyushu Branch

What Dai-Dan Is Doing with ZEB

Facility overview

resources and achieve energy independence and stability.

Satoshi Sugiura
ZEB Planner Certificate of Registration

2016

Manager of ZEB Promotion Office
Advanced Technical Construction Division®

▶ Office building where mankind peacefully coexists with the planet▶ Jointly operated/assessed by industry and academia

Facility overview“enefice Kyushu” has been awarded a 5-star rating (highest possible) and ZEB Ready designation 2 by BELS 3, the first to
be certified as complying with Fukuoka City’s energy conservation standards, and an S ranking (highest possible) by
CASBEE 4.

17

Location:
Fukuoka Prefecture
Total floor space:
1,383 m2
Showcased technologies: Geothermal heat-capture system, Ceiling Free (integrated equipment unit),
structural thermal storage, radiant paneling, ion-DROP (dust infiltration
prevention system), direct current feed system

DA I - DA N R E P O R T 2 017

1 ZEB (Zero Energy Building):
A building that achieves a zero energy balance in operation and use by wayof energy-saving measures and use of renewable energy.
2 ZEB Ready:
Buildings that lower their primary energy consumption by 50% or more
below the set standard. This rating does not apply to renewable energies.
3 BELS:
Building/Housing Energy-efficiency Labeling System
4 CASBEE:
Comprehensive Assessment System for Built Environment Efficiency

5 ZEB Planner registration system:
Widely publicized system for registering design, installation and consulting
companies as “ZEB Planners” who proactively promote ZEB concepts tobuilding owners.
6 Public grant application:
Involvement of a registered ZEB Planner may be required to apply for andobtain public grants from the 2017 ZEB Funding Program administered by
the Sustainable Open Innovation Initiative.
7 ZEB Leading Owner registration system:
Widely publicized program for registering businesses that are proactive
about low energy buildings as “ZEB Leading Owners.”

DA I - DA N R E P O R T 2 017

18

IoT Applications in

Energy-saving performance and comfort of enefice® Kyushu

FeatureBuilding Systems

3■ Technology Map

Photovoltaic panels

IoT and collaboration in automatic building control innovation

Skylights

Task lighting andambient lighting

Radiant heat wall/
thermal storage wall

What is IoT?

Façade engineering(integrated equipment unit)

Task air conditioning andambient air conditioning

Structural thermal
storageion-DROP (dust infiltration
prevention system)

What Dai-Dan is doing with the IoT

Geothermal heat-capture
technology

Direct current feed system■ Graph 2: Building comfort (based on survey results)（%）(Mj/m2/year)

1,200
1,000

120

1,085

100

100%

5

80

Old office 6

600

519

513

60

0%

400

48%

47%

40

800

20

200
0

Standard Designed

Actualenefice
Kyushu“enefice Kyushu” has been awarded a 5-star rating (highest possible) andZEB Ready designation 1 by BELS 2, the first to be certified as complying
with Fukuoka City’s energy conservation standards, and an S ranking(highest possible) by CASBEE 3.

18

38

13

5

Old office

16

0%■ Awards

13

3

Less dissatisfaction

6

38

20%

40%

25

18

Environmentally
betterLighting

023

Environmentally
betterTemperature

Take your environment with you!

(Verification tests of a smart building control system)

Very satisfied
SatisfiedSomewhat satisfied
Neither satisfied nor dissatisfied
Somewhat dissatisfied
Dissatisfied
Very dissatisfied

enefice
KyushuWith IoT rapidly penetrating the world around us, we have focused elementsof our R&D operations on modeling (designing) ways to use IoT withbuilding systems. For an internet-connected automatic control system
Building control app for smartphonecurrently under development, we are aiming at a level of convenience neverseen before by way of wireless sensors and smartphone control buttons.
Moreover, we are working on optimizing operation and management of an entire building by storing sensor
readings, control settings and other logged information from the building in the cloud (internet) and, at somepoint in the future, using AI to manage buildings.
Developing this kind of control system takes more than just knowledge and experience with building
systems, because it is also necessary to know how to configure systems and develop clouds. So, in our efforts
to create smart building control systems on IoT, we have teamed up with a large system developer in Japan.

60%
31

28

9

80%

100%

13

34

20%

40%

25
60%

13

8

IoT gateway

80%

3
100%

19

DA I - DA N R E P O R T 2 017

Environments controlled to preferences

Cloud
Preferences

Judgment

Output adjusted to preferences

Fan

1 ZEB Ready:
Buildings that lower their primary energy consumption by 50% or more
below the set standard. This rating does not apply to renewable energies.
2 BELS: Building-Housing Energy-efficiency Labeling System
3 CASBEE:
Comprehensive Assessment System for Built Environment Efficiency

ISID

In cohort with IoT and cloud application developer Information Services International-Dentsu, Ltd. (ISID), weare testing a system for storing readings from building sensors and settings made from smartphones in thecloud, and then using them to control lighting and air-conditioning.

Greater dissatisfaction

9

DAI-DAN CO., LTD.

IoT Applications in Building Systems

We audited the energy-saving performance and comfort of enefice Kyushu over a period of one year (July 2016–
June 2017).
Graph 1 below shows the standard, designed and actual building performance (primary energy
consumption). The actual performance for the year was practically the same as the designed performance.
Graph 2 represents the building’s comfort against the old office. Data was collected via a survey of thetemperature and lighting done amongst employees who actually use the facility. In terms of temperature, thecomfort level improved, but the lighting environment met with greater dissatisfaction, so it cannot be claimed
that comfort was better across the board.
One reason for the dissatisfaction with the lighting was the narrow illumination range of task lighting, so
fixtures were replaced with models offering a wider angle of light distribution.
We will use these results to assist customers in building the environments that balance energy-savings andcomfort to the degree they need and want.
■Graph 1: Building performance

What We Are Doing to Ensure Continued Growth ❸Cool pit/warm pit

Storagebattery
facility

FeatureShort for the “Internet of Things,” IoT is a concept for creating innovative
services and added-value by connecting all sorts of appliances to the internet. One
example of a practical application of this genre of an information/communication
technology would be a health monitoring service in which people wear a fitness
band (sensor) for recording their pulse or the number of steps taken, then that data
for the day is uploaded and saved on a server and later, at a time convenient to thewearer, analyzed in terms of activity level from a smartphone app.

Ceiling Free

SensorLighting

Internet
Smartphone
Integrated control for
multiple buildings

Wireless
communication

The occupant sets his/her preferredenvironment (temperature andbrightness) from their smartphone
while under a drop ceilingmounted with an LED lighting
fixture and fan. Then, when theoccupant moves under anotherdrop
ceilingwith
his/hersmartphone, his/her new location
is detected and the output of the
LED lighting fixture and fan in
his/her new location are adjusted tothe previously set preferences.
DA I - DA N R E P O R T 2 017

20

Creating the Environments that Meet Customer Requirements with

Dai-Dan’sDevelopmental Technologies
Medical Facilities
P. 23－24 Supporting advanced medical care (covered by insurance), infection prevention, and improvement of patient comfort● Air conditioning system for hybrid operating rooms● INF Series: Infection Control Unit

● BCC-P: Immunocompromised patient room

● Chepas: Clean Humidification Element Passing

Air System● DTB-02: Sputum Collection Booth

Pharmaceutical Manufacturing Facilities and Research Laboratories
Maintaining clean spaces and preventing microbial contamination

technologies for chamber pressure control

Data Centers● Energy-efficient technology utilizing outdoor

air for coolingP. 27－28

P. 26

Energy efficiency technology

Food-processing Plants

Mold and equipment performance decline prevention● ARAPAC: Automatic self-washing packaged air

conditioner

Electronic and Precision Device Plants

Contributing to an exceptionally clean environment and reducing operating costs through energy efficiency● Virtual Duct Clean Room (VD-CR) System: Contributing to ductless clean rooms● Development of energy-efficient dehumidification system for rechargeable

battery manufacturing plants● ion-Drop : Technology using the power of ions to prevent particle adhesion● Air filter refurbishment technology incorporating supercritical CO2

P. 29－30

General Facilities

Improving comfort and energy efficiency

Medical Facilities Promotion Department

Technical Research Laboratory
Design Engineering Department

Industrial Facilities Division
Construction Engineering Department

Regenerative Medicine Division

Dai-Dan’sDevelopmental Technologies

P. 26

for animal experiments

Technical Development Division

Intellectual Property Office● iRack System: Providing the optimal environment

Cooperation● Barrier Smart Series: Comprehensive

Technical Construction Group

P. 25

Design Department

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

Technical Development GroupThe Technical Development Group was launched in fiscal 2016, consisting of the Medical
Facilities Promotion Department under the Technical Development Division, the TechnicalResearch Laboratory, and the Industrial Facilities Division. In fiscal 2017, the Design
Department under the Technical Development Division, the Regenerative Medicine
Division, and the Intellectual Property Office were also added to the Group. The Design
Department was established to ensure the smooth creation of design systems forlarge-scale projects. The Regenerative Medicine Division was created with the aim ofdeveloping new businesses through inter-industry cooperation. And the Intellectual
Property Office was established for the purpose of strengthening management ofintellectual property.
The Technical Development Group aims to further strengthen cooperation and create
the optimal environments needed by hospitals, factories, research centers, and othercustomers. In addition, the Technical Development Group works with the TechnicalConstruction Group, newly established in fiscal 2017, to:1) Enhance our ability toaccommodate special
facilities(strengthen
advanced technology)2) Develop new businesses
3) Implement a strategicorder reception policy● Ceiling Free: Integrated lighting and air conditioning unit
● Lighting Research: Creating comfortable indoor spaces● Direct Current Feed Research: Effective use of renewable energy● Flow Smart: Flow control system for pumps in refrigeration units● Open Degasifier: Anticorrosion system for copper hot watersupply pipes

21

DA I - DA N R E P O R T 2 017

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22

Medical Facilities
Supporting advanced medical care (covered by insurance), infection prevention, and improvement of patient comfort■ Screen-mesh vent

DTB-02The booth is designed to collect sputum
from patients suspected of being infectedwith airborne infectious agents such as
tuberculosis without compromising thesurrounding environment.

Air conditioning system for hybrid operating rooms
In recent years, hospital facilities have introduced hybrid operating rooms
integrating both operating room functions as well as cardioangiographyfunctions in order to provide a safer and more appropriate treatment
environment.
In a typical hybrid operating room, a positioning rail for the angiography
device is mounted over the operating table, complicating the installation of
air conditioning vents. Even if vents are installed on the inner side of the rail,
the angiography device may greatly obstruct and disrupt the airflow.
By developing a Clean Fan Unit incorporating a HEPA filter* and adimmable LED fitting, we have made it possible to install air conditioning
vents over the operating table (inside the rail), creating a system that
automatically starts and stops ventilation from vents covered by the
angiography device.

Sputum Collection Booth

Features● Vertical laminar flow is provided through the Clean Fan Unit
incorporating a screen-mesh vent and a dimmable LED fitting.
● This system provides an improved environment aroundthe operating table in a hybrid operating room used forgeneral surgery.
● A switch that senses the position of the angiography device
controls the on/off operation of the blower.

■ Sputum Collection Booth
DTB-02■ Air flow

Bacteria released into the atmosphere due tocoughing does not remain static. Airflow fromthe ceiling pushes air through the booth.
Negative pressure is maintained within the boothto ensure that no bacteria leaves the booth.

Exhaust fan

1 A state in which pressure is lower than thesurroundings

吸込口

HEPA
filterIntake vent2 By continuing fan operation for a period oftime after sputum collection, this mechanism
reduces the risk of infection in the area when
the door is opened and closed.

■ Air conditioning system for hybrid operating room
Clean Fan Unit

(incorporating
screen-mesh vent anddimmable LED fitting)

Fan stop above
operating table

Infection Control Unit

INF Series

The unit is able to simultaneously complete
both air purification and negative
pressurization to prevent airborne
infection. The unit is suitable for simplified
infection control in infection wards, waiting
rooms and consultation rooms.

■ Infection Control Unit

(incorporating screen-mesh vent and dimmable LED fitting)

1 Under the 2012 revision of medical
treatment fees by the Ministry of
Health, Labour and Welfare, thisstandard has been adopted in
response to the initiative to address
nosocomial infection measures toenhance the assessment of preventive
measures against hospital infections.

Entrance/exit

Antechamber
Restroom

Positivepressure

Intakevent

2 A state in which pressure is higher
than the surroundings

Antechamber

Unidirectional air flow: By
shaping the air flow around theroom for uniform ventilation, it
prevents the spread ofcontamination in the hospital.

Medical Facilities

Clean Fan Unit

Containment

Exhaust: HEPA filters
sanitize the exhaust air thathelps to maintain the room’s
negative pressurization.

INF-201
Built-in Model

Clean Humidification Element Passing Air System

ChepasIn recent years, the evaporative humidification method has been widely adopted in air conditioning systems. However, if thesesystems are not properly maintained, bacteria can propagate and odors can be generated. In order to solve issues of hygiene related
to evaporative humidifiers, Dai-Dan has developed the Chepas system, which uses slightly acidic electrolyzed water1.
■ Front viewof unit 2■ Diagram of Vertical Laminar Flow
Indoor air conditioning unit

Hospital room(negative
pressurization)

It quickly draws in and captures
droplet nuclei emitted from apatient to prevent further diffusion.

Features● These rooms are Sterile Room Administration Fee 11
facilities according to the government’s revised feeschedule for medical services issued in 2012.
● Vertical laminar flow system with Clean Fan Unit
incorporating screen-mesh vent and dimmable LED fitting● Positive pressure 2 relative to neighboring rooms prevents
the entry of external pathogens.

To the outside

Model INF-101 Infection
Control Unit: Blows air
sanitized with HEPA filters toprovide a clean environment
for medical personnel.

INF-101
Freestanding Model

These rooms have been designed to protect patients withweakened immune systems due to, for example, hematopoietic
stem cell transplant (bone-marrow transplant) or acute leukaemia,
from pathogens. We have successfully created sterile environments
in rooms that appear almost identical to typical patient rooms. The
rooms have been designed with consideration given to comfort forpatients and accessibility for healthcare practitioners.

● An existing sickroom can be provided with the benefits of air cleaning and negative
pressurization without a major retrofit.
● The HEPA filters sanitize both circulating and exhaust air.
● A room can be provided with negative pressurization through easy duct
installation. (With Model INF-201, negative pressurization can be achieved simply
with installation of the apparatus alone.)■ Air flow

Movement

BCC-P

Features

Dai-Dan’sDevelopmental Technologies

Fan in operation
around operatingtable

DA I - DA N R E P O R T 2 017

Airflow plate(air supply opening)

Clean air is expelled.

Removes bacteria.

【Imaging in process】

23

Prefilter

排気口

Exhaust vent

0.3 μm particles.

Angiography device■ Immunocompromised patient room

● The HEPA filters on the exhaust side completely remove the bacteria contained in
the exhaust, ensuring purified air is discharged.
● A negative pressure1 is maintained relative to neighboring rooms to prevent any
bacteria from escaping.
● The After-Clean Mechanism 2 need only be switched on to enable fully automatic
operation during entry into the room, sputum collection, and exit from the room.

* High-efficiency particulate air filter; can capture over 99.97% of minute【Standby state】

Immunocompromised patient room

Features■ Diagram of Chepas operation
Electrolytic waterElectrolytic
Water
supply water device

Tank

Pump
Water

Fresh air/
Return air

Airconditioner

Evaporative
humidifier

1 With an available chlorine density of 10–80 ppm
and a slightly acidic pH of 5.0 to 6.5, electrolytic
water is safe for food sterilization and forhand-washing in hospitals.

Features● By regularly supplying slightly acidic electrolyzed water tothe elements of an evaporative humidifier, this system kills
bacteria propagating in the element and in the lower
drain pan.
● It supplies clean air while suppressing the growth ofbacteria and the generation of odors.
● It is ideal for medical facilities, food processing facilities,
libraries, museums, and other facilities where mold andbacteria must be minimized.
● Slightly acidic electrolyzed water is used for food sterilizationand for hand-washing in hospitals and is harmless to humans.
2 Includes an electrolytic water device, tank, pump, and panel in a single unit.

DA I - DA N R E P O R T 2 017

24

Pharmaceutical Manufacturing Facilities and Research Laboratories

Data Centers

Maintaining clean spaces and preventing microbial contamination

Energy efficiency technology

Chamber pressure control technology

Energy-efficient technology utilizing outdoor air for cooling

Barrier Smart Series

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

Features● Controls room air pressure changes caused by external
disturbances● Enables high precision room air pressure managementthat ensures room air pressure order is not disrupted evenwhen switching modes* The main causes of changes in chamber pressure are the opening andclosing of doors, fluctuations in the outside air pressure, and changes andmode switching of air intake and exhausts.

New data centers are increasingly adopting outdoor air for their air conditioning systems as an energy-efficiency innovation. Thesesystems are designed to reduce the energy required to cool ICT equipment by directly drawing fresh air into computer rooms forventilation during the winter season and shoulder seasons.
We are conducting research and development into air-conditioning that utilizes outdoor-air with the goal of offering a server room
environment of even greater stability and energy efficiency.

③ Outdoor air/exhaust faninterlock control technology① Technology for mixing return airand fresh air

ExhaustServer room

■ Diagram of Barrier Smart Series
External air inlet

Barrier Smart AD
Fan

Airflow
regulator

DamperBarrier Smart EQ

Manufacturing area

Suppresses air pressure changes
caused by sudden winds

Set pressure

Maintains air pressure whenchanging modes

Airflow
regulatorAir
conditioning
machineroom② Humidification control technology

Non-manufacturing area

Set pressure

Fresh
air

AHU
Air
conditioning
machineroom

Set pressure

Features① High efficiency and uniform
air conditioning is achievedby mixing sufficient fresh air
with return air.
② The air is maintained at an
optimal humidity level forenergy efficiency and to
reduce the risk ofmalfunctions in ICT
apparatus caused by static
electricity.
③ A stable indoor
environment is assured bymaintaining a good balance
between fresh air andexhaust air.

Decontamination
deviceNew technology
to the Barrier
Ｗ
Ｅ
Ｎ
Smart Series•Suppresses changes in room

air pressure due to turning on
or off sectional exhaust suchas a fume hood

Fan

ChamberpressurecontroldamperBarrier Smart HB

Prevents cross-contamination
when opening and closing doors

DamperOutdoor atmospherepressure detecting open end

Barrier Smart CM

Food-processing Plants
Mold and equipment performance decline prevention

The number of “+” indicates the level ofpressure in the chamber.

Stabilizes standard pressure

Automatic self-washing packaged air conditioner

Animal experiments are a necessity in the development ofpharmaceuticals and medical technologies. The rooms in whichlaboratory animals are kept can harbor foul odors and allergens1,
in addition carrying a risk of microbial contamination. Controlling
animal room environments has long been a challenge.
Over many years, Dai-Dan has developed a number ofdifferent animal housing options in an effort to improve animal
housing environments, reduce energy consumption, and■ iRack System■ Diagram of animal cage

iRack System
accommodate animal welfare standards.
The iRack System prevents the air in cages from leaking
outside via unidirectional ventilation that makes use of our air
conditioning technology. iRack also limits ventilation only to
cages, reducing the required airflow to a minimum and realizing
energy savings. The iRack System improves ventilation functionand ease of use, creating a more desirable environment for bothlaboratory animals and handlers.

Features

The manufacturing processes at bread factories, snack
factories, flour mills, and other food-processing plants result inlarge amounts of powders becoming scattered and dispersedin the air, which then end up adhering to the inside of air
conditioning equipment. Powder adhering to heat exchange
coils, in particular, can cause such problems as reduced air
conditioning function, early equipment wear, and mold.
Accordingly, it is necessary to clean these coils frequently,

2 Shredded paper or wood chips are used to line thebottom of the cage.

25

DA I - DA N R E P O R T 2 017

requiring extra time and work from customers.
We developed ARAPAC, a packaged air conditioner able toclean its own heat exchange coils automatically, reducing
customer burden and extending equipment life. ARAPAC has
already been installed in numerous factories, particularly
food-processing plants, and these factories are experiencing
the benefits ARAPAC has to offer.

■ ARAPAC vs. Conventional air conditioners

Conventional air conditioner● Utilizes cage-specific ventilation systems● Creates advanced one-way airflow● Coverless design makes cage removal
and insertion easy
● Contributes to greater control oftemperature and humidity in the cage
● Reduced frequency of bedding 2
replacement● Easy maintenance
1 Substances that cause allergies

ARAPAC

Pharmaceutical Manufacturing Facilities and Research Laboratories/Data Centers/Food-processing Plants

Providing the optimum environment for animal experiments

Dai-Dan’sDevelopmental Technologies

Air intake and exhaust balancestabilization

ChamberpressurecontroldamperFeatures
ARAPAC● Maintains efficiency of heat exchangers
by automatically cleaning coils before dust
and powders adhere.
● Requires little installation space.

Production line

Decreased air
conditioning capacity• Dust and powder adhere to coils.
• Filter quickly becomes clogged.

We’ve developed an air
conditioner with an automaticcoil washing system.

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26

Electronic and Precision Device Plants
Contributing to an exceptionally clean environment and reducing operating costs through energy efficiency

Contributing to ductless clean rooms

Virtual Duct Clean Room (VD-CR) System

Clean rooms at sites such as electronic device factories require
many ventilation outlets and HEPA filters1 in order to ensure ahigh degree of cleanliness and maintain environments withhighly accurate temperature and humidity.
Dai-Dan has developed the Virtual Duct Clean Room
System, an air conditioning system that maintains a high levelof cleanliness and achieves good temperature distribution evenin facilities that lack air conditioning ducts.

Features● This system incorporates specially shaped and fitted vents
that provide extended airflow in a ductless configuration.
● It provides a high level of cleanliness and good temperature
distribution at low cost and can be installed easily.
● Reduced amount of material used for ductwork results in
reduced environmental impact.
● Suitable for clean rooms of ISO Class 6 2 (Class 1,000) to
ISO Class 8 (Class 10,000).

Technology using the power of ions to prevent particle adhesion
Dust and other particulate matter that clings to surfaces
because of static electricity can degrade manufacturing
environments, which can in turn impact product quality andcause any number of other problems. To counter these
problems, we developed technology that uses ionic forces toprevent particle adhesion. By blowing ionized air* into target
areas, our ion-Drop technology is helping to enhance both theclean factor of manufacturing rooms and the quality of
products made there.
■ The principle of ion-Drop
Duct■ Example of a VD-CR installation

FilterFan

ion-Drop
Features● Semiconductor fabs and factories involved in film
processing, electronic component manufacturing, andfood processing
By using ionization to suppress static charges that contributeto adhesion of dust particles, this system contributes toimproved yield.
● Dressing rooms and clean room lobbies
Controls the carrying in of dust particles by reducing dust
adhesion to clothing.

① Manufacturing plant
Suppresses adhesionof fine particles.

Ion generator■ Ventilation airflow diagram② Dressing room
Particles are easily
removed.

Air vents for ventilation
are designed to extend
the range of the airflow.

Ions* Through ionization, a high voltage is applied to the air to create positive or

1 High-efficiency particulate air filter; can capture
over 99.97% of minute 0.3 μm particles.

negative ions. This ionized air can eliminate static electricity.

2 An international cleanliness standard

Rechargeable battery plants

Energy-efficient dehumidification system■ Energy-efficient dehumidification system
The rotor adsorbs
atmospheric moisture.

Moisture adhering to therotor is removed with hot air.

Introduction of
hot airflow generator

Features● Energy-efficient dehumidification system∙ We introduced a hot airflow generator with a CO2 heatpump incorporating the design expertise we have gained
through our verification testing.
∙ We developed a waste-free circulation system for heat and air.
● Localized technology for low-dew-point rooms∙ We reduce the quantity of dry air supplied in order toachieve only the low-dew-point level required for aparticular location.
● Proposals for energy-efficient improvements∙ We thoroughly investigate dehumidification systems andsuggest various improvements appropriate tooperation length and condition.

■ Improved energy efficiency
（kW）

Air
Fan

Rotor

Rotates

Hot airflow generator80

New purchase
cost

40

Dehumidifier

Humid air becomes dry air.

Returnair

Low-dew-point room
Dry air becomes humid air.

Moisture is
generated.

27

DA I - DA N R E P O R T 2 017

Moisture is
generated.

62.0
26.1

20
0

Supply air● This innovation represents industry’s first practical application of
air filter refurbishment technology employing supercritical CO2.
● It is suitable for use with air filters designed to remove
organic gases 2 at electronic device plants, printing plants,
and chemical plants.
● Because air filters are refurbished through washing andare no longer discarded, the environment can beprotected with no initial investment.
● Both air filter replacement costs and waste are reduced.
Replacement costs

60

‒43%

9.1
Conventional
technology

Introduction of
hot airflow generator* A low-dew-point room, which is required for the production of rechargeable
lithium-ion batteries, contains a very dry environment with a relative
humidity of around 0.1%.

Customer plants & buildings• Electronic device plants• Printing plants• Chemical plants andothersFeatures

30% less than newHeaterExhaustFanElectric heater■ Air Filter Cleaning and Refurbishing Project

100%

Cost ofrefurbishment

Conventional
product

Refurbishedproduct

70%

Refurbishedproduct

Reuse

Electronic and Precision Device Plants

Plants that manufacture rechargeable batteries require rooms
with an extremely dry atmosphere, otherwise known as“low-dew-point”* environments. The dehumidifiers used tocreate these environments consume a great deal of energy, so
minimizing energy consumption has proven to be a major
challenge in this field.
We are making progress toward the development of anenergy-efficient dehumidification system.

Plants typically dispose of large quantities of used air filters.
Dai-Dan has developed and successfully implemented arefurbishment technology intended to reduce thisenvironmental load.
We have developed a recycling business that uses
supercritical CO21 to wash and refurbish these air filters before
returning them to customers.

Dai-Dan’sDevelopmental Technologies

Air filter refurbishment technology utilizing supercritical CO2

Used product

Supercritical
CO2 cleaning■ Supercritical CO2 cleaning and refurbishment apparatus

100% reductionin amount of waste
Waste
generated

100%

No waste
Conventional
product

Refurbishedproduct

1 CO2 at a temperature (31.1°C) and pressure (7.4 MPa) above the criticalpoints that behaves as a fluid exhibiting both the diffusibility of gas andsolubility of a liquid.
2 Includes toluene and other volatile organic compounds (VOCs) that
contribute to air pollution and odor-causing ingredients included in
kitchen exhaust.

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28

General Facilities
Improving comfort and energy efficiency

Integrated Lighting and Air Conditioning Unit

Effective use of renewable energy

Ceiling Free
1 The level of brightness perceived by the occupantfrom the amount of light entering the eye not only
from the desk surface, but also from the entire
room.

Ceiling Free provides lighting and air conditioning functions in a single integrated
unit, which makes it ideal for installation in office buildings. The lighting design andair conditioning system balances comfort and energy efficiency by taking into
account the perceived brightness1 and by providing an active chilled beam2.

2 The air conditioner incorporates cool and warm
water coils. It induces room air flow by introducing
air supplied by the outdoor air conditioner andventing the air from a nozzle at high speed. It
cools/heats the induced air with coils of the air
conditioner.

Features● This illumination design approach takes into account thehuman perception of brightness in order to create acomfortable yet energy-efficient illuminated environment.
● The Active Chilled Beam method utilizes available
renewable energy to create an air conditioned environmentthat is both comfortable and energy efficient.

3 A phenomenon in which a fluid in the form of a gas
or liquid flowing along the convex surface of an
object tends to continue adhering to that surface

Direct Current Feed Research

Most of the devices we use in our daily
lives run on a type of electricity called
alternating current. Conversely, solar
power and other forms of renewableenergy are produced as a type called
direct current. Accordingly, devices
such as power conditioners arenecessary to convert direct current toalternating current, and when power isconverted like this, some of the energy
is lost and wasted.
We create and evaluate direct
current feed systems that use the direct
current from solar power as-is with theaim of effectively utilizing renewableenergy.

■ Diagram of direct current and alternating current
Solar panels

DC DC● Makes direct useof direct current
from solar panels● Reduces the numberof power conversions,effectively utilizing
renewable energy

DC DC■ Direct current feed system

Alternating current
DC AC

AC DC

Direct current is converted less than alternating current would be,
reducing power loss and wastage due to conversion.

Flow control system for pumps in refrigeration units

Structure
Cool and warm
water (return)Air supply

Drawing-in of indoor air(Active Chilled Beam method)

Lighting Research■ An indoor space being evaluated for perceived brightness

FeaturesFeatures● Bypass airflow control technology developed by Dai-Dan● Reduces energy consumption of water and coolant pumps inrefrigeration units● Highly energy-efficient as demonstrated by strong demand
Conventional system
Air conditioner

entering the eye not only from the desk surface, but also from the entire room.

■ Perceived brightness evaluation image

NB
13

Extremely bright

12
11
10
9
8
7
6

Neither brightnor dark

5
4
3
2
1

Extremely dark

Air conditioner

bypassairflow

INV

Bypass airflow

INV

Secondary pump±0
Airflow gauge
Ｆ

Variable
flow rate

Constant Cooling
tower
flow rate

Refrigeration unit

Anticorrosion system for copper hot water supply pipes

Constant flow rateＦ

Ｐ

Secondary pump

● Lighting design and evaluation that takes into account notjust desktops but also overall room lighting● Research into not just light intensity but also perceived
brightness to create bright, comfortable, and energy-efficientindoor spaces* The level of brightness perceived by the occupant from the amount of light

Flow Smart system“０”

Variable
flow rate

Refrigeration
unit

INV
INV

Cooling
tower

General Facilities

Conventionally, lighting design has only been planned according
to the amount of physical light that will illuminate areas such as
desktops. People, however, do not perceive the brightness of aroom only based on the light hitting the desks in it; it is also
necessary to take into consideration the overall brightness of anindoor space.
By researching lighting that takes into account not justlighting intensity but also the perceived brightness*, we aim tocreate comfortable indoor spaces.

Flow Smart

Dai-Dan’sDevelopmental Technologies

We developed Flow Smart (a pump flow control
system for use with refrigeration units) as anenergy-efficiency technology to reduce the energy
consumed by the pumps in the air conditioning
units used by many types of facilities.
The Flow Smart system reduces the runningcost of equipment by providing inverter control ofthe pumps for refrigeration units, whichconventionally have been operated at a constant
speed. Flow Smart regulates the air flow to prevent
any air flow through the bypass unless it is required
to run the air conditioning system.
The introduction of Flow Smart enables a 60%
reduction in the energy required to run the pump in
refrigeration units.

Lighting

The blower makes
use of the Coanda
effect3 to ensure
the shape of thelighting prevents
the air flow fromstriking the workers
directly.

DA I - DA N R E P O R T 2 017

Power from the solar panels
is used as-is (380 VDC),
reducing the number of times
power is converted andincreasing efficiency
Direct current

PV converter

Cool and warm
water (outbound)29

Features■ Typical installation■ Ceiling Free operation

Creating comfortable indoor spaces

Storagebattery

Flow Smartcontroller

Open DegasifierThis open degasifier1 was developed toreduce the corrosion of copper hot watersupply pipes used in centralized hot watersupply systems 2.
The device, which is connected tocopper hot water supply piping, atomizes
the hot water internally in order to extract
and remove any residual chlorine,
dissolved oxygen, free carbonates, andother corrosive elements that might bepresent. Atomizing the hot water increases
the surface area of the water that is incontact with air, increasing the efficiency of
extraction.

■ Diagram of open degasifier

1 Jointly developed with UACJ Corporation(formerly Sumitomo Light Metal Industries, Ltd.).

2 Hot water supply system with a hot water return
pipe and a hot water supply circulation pump is
known as a centralized hot water supply system.
The return pipe is made of copper.

Features

Open degasifier
Exhaust pipe

Dissolved
gas

Boiler andhot water tank
Air supply
pipeＰ

Hot water
supply pipeＰ

● Reduces residual chlorine,
dissolved oxygen and freecarbonates.
● Enables ample hot waterpressure and volume.
● Easy installation● Daily maintenance is not
required.

■ Hot water before and after
degassing

Hot water return pipe

Water supply pipe

BeforeAfter

DA I - DA N R E P O R T 2 017

30

Exceeding customer expectations
with knowledge, experience and action

Introducing Our Installations
Installation
Project

Installation
Project

1

Installation
Project

2

Research Building No. 9

Yamagata Factory

The Nippon Dental University(Niigata)

Cell Science &Technology Institute, Inc.

Enhancing Our Installation Expertise and Ability to Provide Design Solutions

Technical Construction Group

Technical Construction Department

Technical Construction
Division

Procurement Department
Safety and HealthManagement Department
Quality and Environmental
Management Department

Advanced TechnicalConstruction DivisionZEB Promotion Office
Advanced System
Technology Department

The Technical Construction Group was launched in April 2017. Centering
around the Technical Construction Division and the Advanced TechnicalConstruction Division, the Group provides technical support and guidance
based on a comprehensive and stage-oriented approach with the aim ofrealizing equipment environments that will grow in sophistication. The Groupalso educates engineers in advanced system and ZEB technologies so thatthey and we can flexibly meet the diversifying needs of our customers as wellas nimbly respond to market trends.
In addition, the Group strives to create a company-wide on-site support
system to eliminate engineer deficiencies as they manifest while also actively
engaging in proposing ideas for increasing work efficiency and improving
work environments.
The Group works with the Technical Development Group, launched just lastyear, to contribute to the improvement of our technical and practicalcompetence by:
1) Enhancing practical competence and technical abilities
2) Supporting and enhancing management of engineering departments,
including in the field
3) Enhancing engineering capabilities in advanced system technologies

Dai-Dan’s
Practical Competence

GINZA SIX

3

Cooperation

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

IT Promotion Office

Technical Development Group

Dai-Dan’s
Practical CompetenceTechnical Construction Group

Ongoing Improvement of Site Management Methods
Application of the Meister System and Establishment of Partnerships
with Our Subcontractors across Japan

31

DA I - DA N R E P O R T 2 017

DA I - DA N R E P O R T 2 017

32

● Electrical equipment outline●Three 22 kV spot network
power-receiving lines●Transformer capacity: Three 4,000 kVA
Characteristicsof the electricalequipment(overall facility)units●6.6 kV high-voltage substations in threelocations●Contract power: 10,000 kW●Backup power supply: 3,000 kVA and

4,000 kVA dual fuel gas turbine generators●District heating and cooling facility(floor B6)●Number of tenant main line branch
Characteristics
of commercial
facilityboards: 32
Number of retail light and power
distribution boards: 428●Common area lighting equipment
Number of LED downlights: 6,862
Number of concealed LED lights: 10,225●Lightning control units, dimmers, etc.

Elevator hall indirect lighting

Installation
Project

1

Large Mixed-Use Facility

New Installation at GINZA SIX (Ginza 6-chome District 10 Category 1 Urban Redevelopment Project)

DA I - DA N R E P O R T 2 017

Location

6-10-1 Ginza, Chuo-ku, TokyoGrossfloor area

148,697.5 m2

Scale

6 floors belowground, 13 floors aboveground,
2-story rooftop structure●Retail stores, restaurants, offices
Parking lot, district heating and cooling facility
Primary uses ●●Cultural and exchange facility(Kanze Noh Theater)
Owner
Construction
company

Atrium lighting in
the commercial
area

Ginza 6-chome District 10 Urban
Redevelopment Partnership
Kajima Corporation

Comment fromthe project
manager● Installation outline
Scope ofwork

Mains past tenant main line branch boards, outlets,
and secondary tenant construction for floors B2 to 6

Construction
periodMay 2014 – April 2017

Introducing Our Installations

33● Building outline

Dai-Dan’s
Practical Competence

GINZA SIX is an urban redevelopment project combining twosites, including the former location of the Matsuzaka Ginza
Department Store, into a single 1.4 hectare plot. Planning forthe project began in 2003.
The two sites were combined by eliminating and replacing amunicipal road extending between them to create a new, larger
plot some 9,000 m2. Adding a bus station for tour busses,
which had been a problem in the Ginza area, also helped makethe site a destination for domestic and international tourists. In
order to maintain the functionality of the demolished municipal
road, a new, safer street separating pedestrian and vehicle
traffic called Azuma-dori was built passing through the GINZA
SIX facility, providing a safe and comfortable transportation
network for pedestrian and vehicle traffic travelling from thenorth, south, east, or west.
GINZA SIX is a new landmark in the Ginza area. Although
limited to a height no greater than 56 meters (due to the “Ginza
Rules”), it is one of the largest commercial facilities in Ginza,
boasting 241 establishments. The Kanze Noh Theater, a centerfor the dissemination of traditional Japanese culture seating
480, is located on GINZA SIX floor B3, while one of the largest
office building spaces in Tokyo (standard floor area of
6,140 m2/floor) is situated on portions of floors 7 through 13. In
addition, the 4,000 m2 GINZA SIX Garden, located on the facility
roof, is also one of the largest of its kind in the Ginza area.
We were involved in the installation of electrical equipment of
this vast urban renewal project, working on portions of floors B2
through 6 in the commercial area (including 47,000 m2 ofshared passageways).

Emphasizing teamwork and working as one,the facility was able to open on time in spite of
the tight schedule

The installation area for this project, which was an entirely new installation, was very large —approximately 47,000 m2 in the commercial area alone.
There were many changes to the construction and design, and tenant contractors alsobegan moving into the commercial area when construction was in the final stage. I had neverseen so many workers engaged in the same construction area before. Despite of a lot of workoverlap, we managed to complete the installation on time and without any accidents. We
believe it would not have been possible without the leadership demonstrated by the ownerside and the efforts put forth by our team together with our venders.
Shunichi Okuhisa

Project Master of Engineering Section 3, Engineering Department 1, Tokyo Head Office

DA I - DA N R E P O R T 2 017

34

● Building outline
LocationGrossfloor area

● Air conditioning outline

Niigata City, Niigata Prefecture
Approx. 689 m2Scale

2 floors aboveground

Details●1st floor: Animal housing area
●2nd floor: SPF* area(bio-clean room, class 10,000)

Structure

Reinforced concrete, steel

Usage

Animal housing facility* Specific pathogen free; normally, animals carry a variety of indigenous

bacteria in their intestines and mouths, but an SPF clean room ensuresthat animals kept inside will not harbor varieties of bacteria that could
obstruct experiments.

Installation
Project

2

Laboratory Animal Housing Facility

Research Building No. 9, The Nippon Dental University (Niigata)

Installation of iRack Systems for animal
housing
We installed iRack Systems in this facility as part of mouseand rat housing.
Main characteristics of the iRack System

The Nippon Dental University operates a housing facility for laboratory animals in order to advance medical technology.
Laboratory animals such as mice and rats are kept here and used in research to develop new medical treatments.
We were involved in electrical, air conditioning, and plumbing installations when the Nippon Dental University decided toextend their existing single-story animal housing facility. Here is presented our efforts regarding the air conditioning equipment
and facilities.

(1) Unidirectional airflow
An exhaust chamber is situated behind the rack system thatis connected directly to the air conditioning system exhaust
duct, directly exhausting sources of contamination from therack. This ensures that foul odors and allergens fromanimals do not get diffused in the room.

Characteristics of animal housing facility
1. A comfortable and hygienic environment foranimals and caretakers· Maintenance of temperature, humidity, airflow, andproduced by animals

2. Environmental preservation of neighboring
facilities· Prevention of foul odors, noises, and otherdisturbances from affecting neighboring facilities

3. 24 hour per day, 365 day per year
air-conditioning operation a necessity· Saving energy in air-conditioning operation a must

After gaining a full understanding of the needs andrequirements for the animal housing facility, we planned out
the building system that we be needed, then proposed andimplemented our own in-house developed system.
35

DA I - DA N R E P O R T 2 017

The facility owner noted,“You can sense
Dai-Dan’s technicalprowess”

We worked extremely hard on this project to meet theunique needs of a laboratory animal housing facility in ashort timeframe. Despite the difficult conditions, thanks
to everyone’s support, we were able to complete
installation on time and without a single complaint
regarding the quality of our workor equipment. We were able tomeet the needs of the facility,
and the facility owner told us thathe could sense the extreme
technical prowess of Dai-Dan,
which is not visible with a simple
surface glance.

Air conditioning/
ventilation facilities
2F: SPF area

(1 for mice, 1 for rats)●Barrier Smart CM(stabilizes standard pressure in 2nd
floor SPF area)●Temperature: 18-28°C●Humidity: Not controlled(at least 30% relative humidity)●Air-cooled packaged air conditioner●Air-cooled heat pump air handling units●Exhaust fans●Temperature: 22 ±2°C
●Humidity: 50 ±10%●Cleanliness: Class 10,000●Room pressure control: PCD●Pre-cooled air handling unit, exhaust
fans

Installation of a Barrier Smart CM
Stablization of standard pressure*
The SPF area on the second floor required the stabilizationof room pressure and airflow direction. Standard pressure
had been maintained via a pressure control damper in asecond floor hallway, but the hallway was connected
directly to the first floor entrance. This would result in thestandard pressure changing due to disturbances such assudden gusts of wind when the entrance door was opened,disrupting the control of room pressure in the various
rooms. In order to stabilize these disturbances, we installed
our own “Barrier Smart CM” to stabilize standard pressure.

Each cage is individually ventilated, keeping the risk ofcontamination spreading from one cage to anotheradjoining one to a minimum. In addition, airflow from therack as a whole is low, enabling energy savings in air
conditioning (40-60% of
the airflow comparedwith a conventional
unidirectional
airflow
rack system).

Introducing Our Installations

cleanliness· Prevention of the spread of foul odors and allergens

Comment fromthe project
manager

Air conditioning/
ventilation facilities
1F: animal housingarea●2 iRack Systems

Dai-Dan’s
Practical Competence(2) Individual cage ventilation

Installation of
our in-housedeveloped
systemRefer to page 25
for information on
the iRack System.

Barrier Smart CM* The pressure that will serve as a standard when measuring room pressure

Shigeharu Uchiyama
In charge of Manager of Engineering Section 1
Engineering Department, Niigata Branch

Cages installed with the iRack System

Refer to page 25 for information on the Barrier Smart Series.

DA I - DA N R E P O R T 2 017

36

(2) Ensuring quality and optimizing installation● In order to improve on-site work and minimize

Installation
Project

Culture Fluid Development and Manufacturing Plant

3

variation in installation quality due to differences inworker skill, we actively utilized prefabricatedmachined pipe produced by a dedicatedmanufacturer. We also made use of light weight,
corrosion- and earthquake-resistant flexible plastic
pipe and dedicated one touch couplings to further
ensure uniform installation quality. We gave every
consideration to suppressing as much as possible
contaminants such as oil, welding fumes, and cutting
and grinding scraps produced during installation work.
● The use of clean panels (42 mm insulation panels) for
clean room ceilings made them strong enough to
support people walking on top of them if necessary.
This makes it possible for maintenance to be
performed on the dampers, valves, and reheaters
necessary for air conditioning from on top of theceiling, eliminating the need to enter the clean room
to perform this work.
● We installed the ceiling panels first, and installation of
air conditioning and sanitation equipment as well as
electrical installation work was performed above
these panels, while interior wall and floor work wasdone under the panels, increasing installation
efficiency and ensuring a safe working environment.

Prefabricated machined pipes

Maintenance access route above the ceiling clean panels

Yamagata Factory, Cell Science & Technology Institute, Inc.
● Building outline
As the markets for regenerative medicine and bio-pharmaceuticals expand, demand for culture fluids used to develop andmanufacture products in these fields is grown rapidly. In order to meet that demand while also meeting the demand for highquality, Cell Science & Technology Institute, Inc. built a new plant with the aim of building a manufacturing base and enhancing
its research and development capabilities.
Under the direction of Shimizu Corporation, we were involved in the installation of the new plant’s air conditioning, sanitary,
and freezing and refrigeration facilities.

● Air conditioning outline

Location

Tendo City, Yamagata Prefecture

Cooling source

Air-cooled module chiller

Grossfloor area

Approx. 2,900 m2

Heating source

Steam boiler, plate heat exchanger

Scale●Cleanliness2 floors aboveground
Development, manufacture, and sale ofculture fluids

Structure

Steel

Clean room
systemCharacteristics of installation
Comment fromthe project
manager

We constructed clean rooms (grades B and C)
necessary for the manufacture of cell culture fluid. We
optimized room pressure control dampers and variableairflow units to ensure that cross-contamination did notoccur between clean rooms even when switching
airflow modes during operation. It was also necessary
to meet GMP guidelines and thus we also had the air
conditioning units validated.

A room pressure control damper

DA I - DA N R E P O R T 2 017

We actively proposed technologies for ensuring
quality and shortening construction time

Amidst a construction period of eight months, the actual time we had for installation work was justfive months, and in that time we had to complete the validation process and handover. There werealso many improvements and changes made during installation, and I believe that our repeateddiscussions together with and the cooperation we received from the facility owner and designers,
the construction company, and the equipment and electrical installers to ensure efficientinstallation helped us to meet our deadline.
In addition, in order to ensure quality and that installation was performed on time, we proposed
the use of labor-saving equipment, materials, and installation methods. We were able to complete
installation on schedule and without incident, and it was an extremely good experience.
Akinori Tomitaka

37

Introducing Our Installations(1) Indoor environmental control that maintains
appropriate cleanliness, room pressure,in-room airflow, humidity, and temperature

Dai-Dan’s
Practical Competence

Business

Grade B (class 100 ISO 5)
Grade C (class 100 ISO 7)●Pre-cooled air handling unit and air
circulation air handling unit
Installation of indirect steam generator toensure extreme cleanliness●Room pressure control via VAV and PCD

Technical Master of Engineering Section 3, Engineering Department, Tohoku Branch

DA I - DA N R E P O R T 2 017

38

Enhancing Our Installation Expertise andAbility to Provide Design Solutions

Technical Reports

Sharing and utilizing the enhanced value generated by our on-site expertise
Case study presentations to share expertise and integrity throughout Dai-Dan
In November 2016 we held our 9th Case Study Presentation.
This event gives our employees an opportunity to present
the achievements they have made through expertise andintegrity in the course of their day-to-day work. Awards are alsopresented. A video conferencing system is used so that
employees across the country can participate. This year we
also used a web conferencing system to broadcast thepresentation live to employees.
We received 171 presentation applications from employees
nationwide, including case studies concerning improvements
to conventional installation methods, optimizations to
installation work utilizing new methods and equipment, anenergy-efficient and environmentally friendly design,
improvements made in the face of failures, cost reductions, andimprovements in methods for managing safety and quality.
Of these submissions, one was chosen for the Chairman’s
Award, two for the President’s Award, two for the Head ofTechnical Construction Division Award, five for the Outstanding
Performance Award, 10 for the Good Effort Award, and three
for the Encouragement Award, totaling 23 awards in all (15group awards, eight individual). The winners were recognized inVOICEa ceremony and presented their case studies at thepresentation. The Chairman’s Award, the presentation’s
highest honor, was given to the Osaka Head Office for their“Method for Regulating the Circulation Flow Rate of a Central
Hot Water Supply and Method for Evaluating the Same.”
By taking lessons and ideas presented through the casestudies at the presentations and bringing these remarkableachievements into our offices and work sites to share and utilize
them in in-house education, we are contributing to the further
enhancement of Dai-Dan’s technical capabilities, safety, andquality.

Award recipients

Comment from the winner of the Chairman’s Award

Deputy Manager of Design Section 2, Design Department, Osaka Head OfficePublication of the DAI-DAN Technical Current News
With the objective of publicizing the technology we develop and our research initiatives, we publish the
DAI-DAN Technical Current News every September. The publication gives comprehensive explanations ofexperiments, assessment methods and analysis results using charts and images. The 111th edition was
published in September 2017. Copies of these publications are donated to the National Diet Library.

39

DA I - DA N R E P O R T 2 017

The New Information Hour is held as a part of theworkshops primarily for engineering employees with theaim of giving them fundamental knowledge in the fields of
medical care, devices, energy efficiency and electricity
where our advanced technologies play a significant role.
Seven years have passed since the Hour was firststarted, with 178 sessions being held and a total of
14,201 people participating. Theme selection andinstruction is provided by the Technical Development
Group.
Sessions are recorded and distributed to those who
are unable to attend the sessions due to work-related
reasons, in order to provide greater opportunities for
self-directed learning.

Major topics of sessions held throughout
the previous year
Medical care●●

Immunocompromised patient rooms
Air conditioning systems for hybrid operating rooms

Devices●●Clean rooms and device manufacturing plants
Fundamental knowledge on constant temperature andhumidity rooms

Energy efficiency●

An introduction of our ZEB/smart energy derived fromour building systems

Electricity●

Trends in electrical equipment (enefice Kyushu’s
electrical equipment)

Training engineers and passing on skills applicable to work in the field
An innovative human resource system for appropriate appraisal of field specialist engineers
We launched a new human resource system in April 2014
intended to support appropriate evaluation and job promotionof engineers engaged in installation in the field.
In our previous system, only employees in the management
division could be promoted to the position of section manager
or department manager. Therefore, for engineers specializing in
on-site work, we established the positions of Grand Project
Master (GPM) and Project Master (PM), which are equivalent to
the positions of department manager and section manager inthe management division, respectively.
Engineers can choose either the management pathway or
field specialist pathway. If they choose the latter, they can bepromoted to the position of GPM or PM.
Also, in April 2015, we established the Technical Master(TM) position for field specialist engineers below the rank ofsection manager. By August 2017, we had appointed

seven GPMs, 54 PMs, and 25 TMs.
Installation experience is evaluated according to its
application to medical, industrial or other types of facilities, anda special allowance is paid to GPMs, PMs and TMs inrecognition of their achievements. A special promotion may beawarded depending on the number of special allowances paid.
As a design and installation company, Dai-Dan needs todevelop outstanding engineers capable of performing
installations in the field and willing to pass on their skills. We aretaking steps to enhance their technical skills by accurately
evaluating skilled engineers capable of working on-site andincreasing their motivation.
With this new human resource system, we are helping toensure that the skills of outstanding engineers in charge of
installation will be passed on.

DA I - DA N R E P O R T 2 017

Enhancing Our Installation Expertise and Ability to Provide Design Solutions

Yoshiyuki Tamada

New Information Hour

Dai-Dan’s
Practical Competence

We are very honored to have received the Chairman’s Award at the 9th Case Study
Presentation from among the many design and installation ideas and improvements
submitted from around the country.
Our case study concerned the planning and evaluation of a “Method for Regulating the
Circulation Flow Rate of a Central Hot Water Supply and Method for Evaluating the Same.”
Hot water supply equipment experiences frequent if small problems, and methods ofregulating them is a challenge. We worked to expose the issues with current technology,
examine efficient methods of regulation, and improve the quality of hot water supply
equipment. The achievements of our work were well-received, resulting in us winning the
Chairman’s Award.
As Dai-Dan engineers, we will continue to devote ourselves to flexibly and diligently
meeting the diverse needs of customers and resolving technical challenges.

Our technology is supported by the results of a combination of ingenuity, hardship, failures and successes in
the field. These results are shared via our Case Study Presentations to be employed companywide.
Through text and figures, Dai-Dan shares particularly outstanding achievements; case studies related to
medical and industrial facilities (pharmaceuticals, devices, IDC, and research centers), which are points of focus
in the “Developing advanced technology for high-technology facilities” section of the Mid-Term Management
Plan; and the experiences of individual engineers gained through design and installation projects nationwide. Inturn, individual experiences become the company’s experiences and technologies.
These examples of expertise and ingenuity are incorporated into the Technical Reports, which are madeavailable to all engineers.

40Creating value by providing solutions with a flexible approach
Dai-Dan is involved in providing electrical, air conditioning andplumbing installations, and our engineers are diverse in terms of
their specialization as well as their gender. This diversity
generates value created by “out of the box” thinking fused witha flexible approach.

Currently, many female employees are active on our front
lines in the field. Under our new mid-term management plan, we
advocate the strategy of “promoting a diversified approach towork,” and we are engaged in improving the work environment
so that female employees can continue to advance.

Ongoing Improvement of Site Management Methods
Continuously improving health and safety initiatives with the goal of eradicating industrial accidents
Workplace health and safety management system

VOICE

Skills of our female employees in the field

Thankful for the opportunity to meet so many people
Looking back on my 26 years with Dai-Dan so far, I believe the reason I was able to continue
working on-site is because of the many people I met and the many people who helped me. I firstworked in the field for an urban redevelopment project for the area in front of a train station, andsince that time I’ve been involved in working on-site in office buildings, commercial facilities, andmany other jobs. Looking back, however, even when I think about the troubles and difficulties
when a lack of skill on my part caused others problems or when things didn’t go according toplan, amazingly, I can’t really ever recall feeling sad or overburdened.
Right now I’m in charge of overall maintenance and repair work at a school I once worked on
close to 20 years ago, and when I heard people I had worked with before telling me “welcome
back,” I was reminded once again how I am not working alone and that I am being supported byso many other people.
Chiharu Kato
I intend to continue working hard to be useful to everyone from the standpoint and perspective Engineering Section 3
Engineering Department 2of a woman.
Tokyo Head Officeof more comfortable work environments; and ultimately
improve health and safety standards.
Ensuring health and safety is one of our social obligations tosociety, and we aim to create a company that always upholds
the public trust. We will continue to strive to attain continuous
improvement in addition to improving our health and safety
initiatives utilizing our workplace health and safety management
system.

Under the leadership of our executive management, Dai-Dan
places the highest priority on the health and safety of ouremployees and implements health and safety initiatives
involving offices, worksites, and subcontractors.
Based on our annually formulated Company-wide Healthand Safety Management Plan, we continuously endeavor to
remove hazards and reduce the risk of workplace accidents as
we strive to maintain and enhance health; promote the creation

Our Policies for Health and Safety
Health and Safety Philosophy“Ensuring Health and Safety” is our obligation to all the employees of our companies, their families and the society.
In DAI-DAN, we give top priority to “Safety” and “Health.” We strive to be the corporation which the society trusts, withDAI-DAN’s top management and employees working together to enhance the safety and comfortable working environment.

Action Statements
Valuable experience in the field

Engineering Department 1
Tokyo Head Office

Safety performance
0.600
0.500

41

DA I - DA N R E P O R T 2 017

0.200
0.100
0.000

Result

The number of accident-related deaths
and injuries (four or more days off work)

0.350
0.230

0.230

0.069
0.020

0.230
0.077

0.020

0.300

0.020

0.017

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

FY2012FY2013

FY2014

Total work hours

× 1,000,000

0.190

0.173
0.021
0.020

Frequency rate
(frequency of workplace accidents)

FY20150.020

Ongoing Improvement of Site Management Methods

When I first joined Dai-Dan, I had little expertise relating to construction, and I was filled withdoubts. However, my fears were slowly eliminated as I learned about the fundamentals of
construction and equipment through new employee training sessions. The environment at
Dai-Dan, which makes it easy to ask for help and to ask questions, also helped. Now I’ve beenwith Dai-Dan for 13 years. Last year I gave birth to my first child and, after a one year childcare
leave, came back to work in April 2017. Right now I’m making use of Dai-Dan’s reduced workhour system. The amount of work I can do is less than before, and I am truly thankful at theunderstanding and cooperation I have received from my coworkers. Being able to balancechildcare and work is extremely important, especially to women, to being able to enjoy a longcareer, and Dai-Dan listens sincerely to my needs and works to improve the working environment.
I feel that Dai-Dan makes it possible for women as well as men to be able to have a long career Haruka Inoueas an engineer through the accumulation of experience and expertise. I hope my experiences will Deputy Manager ofSection 1
help show the options available to people who are like I was and are interested in Dai-Dan but Engineering
Engineering Department 4
Tokyo
Head
Officeworried about whether they can work here.

Target
0.461

0.400
0.300

An environment that enables engineers to enjoy a long career

0.536

0.522

Dai-Dan’s
Practical Competence

I was hired to do office work and until now had always done clerical work in an office, so when I
learned that I would be transferred to an on-site role, I was worried that a technical novice likemyself would not be able to be of use. When I actually started working in the field, however, I foundthat there was a mountain of small jobs to be done, like cleaning the on-site office, replacing andrefilling items, preparing safety manuals and other documents, and binding diagrams. I saw up
close and personal how useful and important my handling of paperwork and other jobs was tomaking on-site projects run smoothly. I realized that even if I couldn’t provide support in atechnical aspect, I could contribute to on-site projects, and I have never felt so proud about myown work. In addition, through my interactions with site workers, I realized how much fun it is tobuild something together, and now I want to continue helping out on on-site projects. I am
confident that valuable experiences like this working in the field will serve me well in the work I do Ayako Igawa
going forward.
Deputy Chief of❶ We utilize “Health and Safety Management Systems” to eradicate all industrial accidents. We endeavor to eliminate risk and hazards in all
work activities, and continuously improve and enhance the health and safety of our workplace.
❷ We promote cooperation among offices, worksites, subcontractors, with good communication, and promote voluntary revitalization ofhealth & safety activities by defining each role.
❸ We observe workplace safety and health-related laws including our company’s internal health & safety management systems regulations
for the enhancement of health and safety standard of our employees and staff, preserving and improving their health.
❹ We educate all people working for DAI-DAN in our policies for health and safety and also disclose them to the public.

Severity rate (severity of accidents)
0.004

Workdays lost

Frequency rate Severity rate

Total work hours

× 1,000

FY2016

Health and safety audits and patrols
In addition to inspections by top management, our offices and headquarters regularly conduct
health and safety audits and patrols as well as investigate and evaluate the enforcement of Healthand Safety Management Plans in order to maintain and anchor our workplace health and safety
management system. We also strive to enhance health and safety awareness and improve healthand safety standards by implementing activities to revise and improve this system.

A safety patrol underway

DA I - DA N R E P O R T 2 017

42

Initiatives for fiscal 2016

Industrial Injury Prevention Rally
We held Industrial Injury Prevention Rallies at
11 locations across Japan in line with
National Health and Safety Week in order toraise awareness of health and safety.
In fiscal 2017, the chairman, president,
and other top executives participated invarious rallies, promoting the elimination ofwork-related injuries and the improvement ofhealth and safety awareness. Some 2,600
people participated in the rallies, including
our employees and the employees of our
subcontractors. Certificates were presented
to individuals and groups who promoted
outstanding health and safety initiatives
during the previous year.
At each venue, they delivered safety
lectures, presented case studies on safety
initiatives at their worksites, and renewed
their commitment to safe operations.

We improved safety results overall, with the number of accidents declining from29 to 23 (of which 18 occurred at worksites). As regards target values, weachieved our targets for both frequency rate and severity rate. We believe this is
the result of appropriate implementation of activities to prevent accidents involving
falls, which was positioned as a priority item.
Conversely, accidents during commutes and in branch and other offices
showed a rising trend, and it is necessary to implement periodic health and safety
education for indoor and office workers going forward.
As regards health matters, we implemented stress checks for all employees inline with revisions to the Industrial Safety and Health Act. The rate of persons
experiencing high stress slightly exceeded the expected values of the Ministry of
Health, Labour and Welfare and initiatives aimed at reviewing work content,
revising long working hours, and efforts to promote the use of annual paidvacation are issues.

TargetTarget values

Elimination of accidents
involving falls

Frequency rate: No more than 0.300 (0.190)
Severity rate: No more than 0.020 (0.004)
Note: Figures in parentheses are actual numbers

Priority items･ Compliance with basic actions and rules when working at height･ Thorough implementation of fall-prevention actions on portable platform･ Implementation of tool box meetings as well as the practice of“finger-pointing and calling” for each worker

Fiscal 2017
Industrial Injury
Prevention Rally
KyushuApplication of the Meister System and Establishment ofPartnerships with Our Subcontractors across Japan

Maintaining quality assurance through strong partnerships with our subcontractors
Dai-Dan Meister System

Introducing cloud services and business initiatives making use of BIM

We began implementing the Dai-Dan Meister System in 2011
with the objective of securing excellent foremen for our
subcontractors to support our ultimate goals of improving work
quality and ensuring safe and efficient field operations.
In October 2012, we revised the regulations in order to train
more Excellent Foremen and High-level Foremen under our
Meister System.
One of the revisions entails providing subsidies foracquisition of higher certifications such as the registeredessential technician’s certificate. In addition, we decided to pay
cash rewards for Meisters and Excellent Foremen for theirfieldwork.
In July 2017, awards were presented to 91 certified foremen
from 50 companies and cash rewards were presented to 103
Meisters and Excellent Foremen.

DA I - DA N R E P O R T 2 017* A computer system for comprehensive construction management,
including not just building design and structural calculations but also
construction material selection, construction planning, and costs.

■ Diagram of Dai-Dan’s cloud services

Work style reformation — a new business model

Technical
considerations

On-site work

Materials andequipment
trendsInformation
input

DAI-DAN CO., LTD.
Cloud services
Feedback

Document
preparation

On-sitesupportInformation
sharing

Administration
departments

Internal departments

Blueprint
creation

Designdepartments

Quality andenvironmental
departments

Mitsuo Kawasaki
Yuki Electric Facilities Co., Ltd.

Meister Award Ceremony

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

43

processes required to create blueprints during repair workwhen none exist by making use of 3D scan data, a techniquethat has been well-received by our customers.
We will continue working to increase the efficiency of ouron-site operations and improve installation quality through theeffective use of ICT.

The 6th Meister Award Ceremony was held in December 2016.
804 foremen serving at Dai-Dan sites were designated High-level
Foremen, 31 of whom were named Excellent Foremen.
Furthermore, the four best foremen were certified as Meisters.
A
total
of
30 Meisters havebeen certified todate, with eight
electrical workers,
11 pumbers, six
duct installers, one
refrigerant
piper,
and four insulation
workers by trade.

I was certified as a Dai-Dan Meister in December of lastyear. I felt extremely honored by the title and also the weightof my responsibilities as a registered essential technician.
My motto in the field is to reach completion of a projectwith no accidents and no incidents. Accidents can have avariety of causes, from young workers as yet inexperienced
to seasoned veterans. Heatstroke, an issue frequently
heard about in recent years, affects everyone the same,
regardless of experience. Accordingly, my perspective on
creating an environment for a project is to aim for a site thatenables communication.
As a site foreman, I am able to hear many different
opinions and suggestions by sharing the information I havegained with my workers, and this in turn enables me tomake the best choices.
I also strive to make sure every worker approaches andtalks with younger workers who may find it difficult to share
their opinions. I believe these efforts become reflected not
only in safety aspects but also in improved quality andproductivity. Going forward, I would like to engage incommunication with my site workers and people in otherindustries, actively participate in process management andother on-site management operations, and work to ensurethat each day all of my workers are able to go home with asmile on their faces. In addition, I
personally intend to devote myself toimproving my knowledge of safety,
quality, and installation optimization
so that I do not shame the title of
Dai-Dan Meister.

Dai-Dan’s
Practical Competence

The utilization of information and communications technology(ICT) is important and indispensable in improving productivity
and increasing work efficiency.
As a new theme we are focusing on in the reformation ofbusiness making use of cloud services, we are engaged in thecreation of a new business model that will also connect withreforming the way people work, such as measures to reduce
long working hours.
As regards the operation of cloud services, their use as tools
for real-time information sharing, as well as means to reducethe distance between head offices and project sites, andbetween bosses and persons in charge, has already taken
hold. In addition, live streaming using an online meeting system
is contributing to the sharing and permeation of technicalinformation, such as increasing the number of viewers of ourCase Study Presentations.
Our business initiatives utilizing building information
modeling (BIM)* are working to apply this technique not justtowards design but also the entire lifecycle of a building,including construction, maintenance, and management.
Examples include making maximum use of CAD blueprints that
contain wide-ranging building data, technical calculations,confirmation of materials and equipment specifications as wellas quantity, verifying installation quality via visualization, andpresentations for customers.
For instance, BIM helps to drastically reduce the number ofComment from a Meister

Revision of the system

Meister Award Ceremony

Using IT to increase efficiency of fieldwork and improve installation quality

VOICE

Dai-Dan’s network of subcontractors
In the business environment surrounding the building
installation service industry, large regional differences exist in
the availability of personnel, and the situation can beconsidered unstable.
Under these circumstances, we have established anationwide network of subcontractors that extends beyond thescope of individual offices. Through this network, we can send

workers from around the country to offices where worker
shortages are expected. We will effectively utilize this network
to establish a stable installation system at each site; at thesame time, we will increase opportunities to improve the skillsof our subcontractors.
We will continue to provide our customers with safe andhigh-quality building installation services.

Technology
management
departments

On-site work optimization — measures to reduce long working hours

DA I - DA N R E P O R T 2 017

44

FY2016 CSR Performance and FY2017 Targets
In order to enable continuous improvement of our CSR activities, we set targets for each fiscal year and complete the PDCA cycle
accordingly.
In this report, the FY2016 performance and the FY2017 targets are summarized according to the seven core themes of ISO 26000*.

Self evaluation

Target achieved

Target not achieved

Fair andTransparent
Business
Practices

Periodically review and revise thebusiness continuity plan (BCP)••

Emergency drills were conducted
Safety check system extended to include subcontractors at
one office (Osaka Head Office)Disclosure (Proactive andDisclose information appropriately and Complied with laws and regulations and swiftly disclosed
information
timely disclosure of information) in a timely manner
Customer
proposals
Planning
Designing

Environmental
Contribution

Environmental
conservation initiatives

Achieve environmental management
system plan targets* Refer to page 53 for FY2016 environmental
targets and results.

Community
involvement anddevelopment

Compliance• Group training sessions, briefings, and seminars were held
Strengthen the compliance system(compliance with the Antimonopoly Act and to familiarize attendees with the importance of compliancewith laws and regulations
other relevant laws and regulations) and• Published issues Nos. 17 and 18 of Compliance News to
promote sound corporate management
raise awarenessManagement conducted reasonably and efficiently based on
Dai-Dan’s Corporate Governance Guidelines• Corporate law internal control system functioned appropriately•

FY2017 targets

ConsumerissuesBuild and maintain a system to ensureethical execution of operations

Self
evaluation

Fair operating
practices

Corporate governanceRisk management

FY2016 performanceThe
environment

Target/Task

Labor
practices

Items

Human rights

Theme

Organizational
governanceCore subjects of ISO 26000
Page

Strengthen corporate governance to meet changes in social
trends47

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

49

Conduct emergency drills
Consider extending the safety check system to include
subcontractors in the office

51

Proactively disclose information

52

•
•

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

Promoted sustainable procurement
Installation Promoted sorting and recycling of industrial waste
Removed thermal insulation of drainpipes

Achieve environmental management system plan targets* Refer to page 53 for FY2017 environmental targets.

53

Reduced the energy consumption
Office Reduced the use of photocopy paper
initiatives
Introduced hybrid vehicles

Meeting
Customer
Expectations

Achieve quality management system plan targets

56

Continue the activities of the sectional
committee

Implemented the activities of the sectional committee

Continue the activities of the previous fiscal year

58

Check and review the effectiveness of
the Dai-Dan Mentor System

Monitored individual circumstances through additional
interviews with each mentor.

Confirm and review the effectiveness of the Dai-Dan Mentor
System

Improved technical capabilities through major reviews of training session plans
Continued skill development through the CPD system

Continue to strengthen technical expertise

Raised awareness through new employee training session

Continue initiatives to raise awareness of human rights•

Conducted mental health seminars
Reviewed childcare leave and reduced work hour systems• Conducted stress checks for all employees

Continue the activities of the previous fiscal year

Increased the percentage of employees working long hours to
0.35%

Achieve a 100% doctor consultation rate for employees
working long hours

Decreased the percentage of employees working long hours
engaging in face-to-face consultations with a doctor to 75.7%

Decrease the percentage of employees working long hours to
below 0.3%

Achieve quality management system
plan targets

Initiatives with
subcontractors

People are our greatest
asset

Valuing Our
Employees

Improved customer satisfaction
Reduced quality issues

Quality improvement
initiatives

Respect for humanrights and individuality

Strengthen technical expertiseContinue initiatives to raise awarenessof human rights

•
•

59

62

Dissemination oftechnical information toexternal parties

Contribution to the constructionindustry

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

Continue the activities of the previous fiscal year

64

Social contribution
activities

Targeted number of activities:
more than 440

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

Continue the activities of the previous fiscal year

65

Sharing of technicalinformation

Share information obtained atworkshops

Held the Case Study Presentation

Continue the activities of the previous fiscal year

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

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

Achieve workplace health and safety management system
plan targets

Held the 6th annual Dai-Dan Meister Award Ceremony

Improve and entrench the Dai-Dan Meister System•

Workplace health andAchieve workplace health and safety
safety management system management system plan targets
Partnerships with
subcontractors

Ensure the Dai-Dan Meister System isimplemented

Our CSR Activities

Follow up on employees working longhours

Dai-Dan’s
Practical
Competence••Work style reformation initiatives

Work/life balance andthe work environment

Meeting Local
Expectations

•

39
40
42
44
* A guide on how businesses can operate in a socially responsible way

45

DA I - DA N R E P O R T 2 017

DA I - DA N R E P O R T 2 017

46

Fair and Transparent
Business Practices
In order to ensure the sustainable creation of corporate value, we seek toimprove and strengthen our corporate governance system in a sustainable
manner. In addition, our executive officers and other employees upholdthe highest ethical standards when conducting business.

Corporate Officers’ Committee

General Managers’ Meeting

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

General Managers’ Meetings are, in principle, held once a month toensure that tasks are being executed in an integrated manner.
Management policies and measures are explained, and the state ofbusiness operation of each office and their respective issues are
discussed, and prompt solutions sought.

■ Corporate governance system

Shareholders’ Meeting
Appoint/dismiss

Board of Auditors

Board of Directors

10 directors
Consultation on(including 2 external directors) important matters

Our approach to corporate governance

ReportAs a building services engineering and installation provider, Dai-Dan is 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 and stronger
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 governance in order to maintain effective
management practices.

DA I - DA N R E P O R T 2 017

Compliance Office

Audit
Approve policies/plans

ChairmanCompliance Committee

President
ReportWhistleblowing/
consultation
Audit report

Instruct/supervise

ReportCorporate officers

Internal audit

Legal
Compliance
SupportCommittee

Appoint/dismiss/supervise
Instruct/supervise

Notify/answer

ReportRaiseawareness/ Accounting
confirm
audit

Headquarters/Branches/Offices
Internal audit

Advise/direct/support

Report on items
concerning management

Accounting audit

Affiliate companies

Board of Auditors
The Board of Auditors comprises four auditors (two of whom areexternal auditors). In principle, they meet prior to Board of
Directors meetings. They thoroughly examine the issues
discussed at Board of Directors meetings, attend the meetings inperson, and contribute their views as necessary.
According to the audit policy and audit plan established by the
Board of Auditors, the auditors monitor the directors’ fulfillment of
their duties by conducting audits of offices in cooperation withaccounting auditors. Their responsibilities include attendance atBoard of Directors meetings and other important gatherings aswell as reading of important documents requiring approval.

Executive Committee
Executive Committee meetings are held when necessary. The
committee comprises regular members who are appointed by
the Board of Directors and temporary members selectedaccording to the subject of the agenda. The committee develops
management policies and other policies for Dai-Dan and its
group subsidiaries, and extensively examine the progress of goal
achievement. In addition, the committee members discuss
important matters concerning management strategy andmanagement of the company itself. The committee then makes
recommendations to the Board of Directors as needed.

Appointment of independent external directors and independent external auditors
Three people are appointed to report to Tokyo Stock Exchange, Inc. as independent officers — the two external directors and oneof the two external auditors. In appointing the independent officers among our external directors, we apply our own “criteria for
determining the independence of an external director” in addition to the independence criteria prescribed by Tokyo Stock
Exchange, Inc.

Internal control system
Dai-Dan has developed an internal control system that focuseson the improvement of internal rules. This is intended to ensurecompliance across our entire company and subsidiaries andincludes the execution of tasks by directors in compliance withlaws and the articles of incorporation as well as appropriate
performance of all tasks. In addition, we confirm the operational
status of the company’s internal control system each fiscal year
and report our findings to our Board of Directors while
continuing to revise and improve this system in order toimprove efficiency and legal compliance.

Internal control system for financial reportingIn April 2008, we implemented an internal control system forfinancial reporting under the Financial Instruments andExchange Act. The Internal Audit Office under the president
examines and assesses the effectiveness of the system.
The fiscal 2016 assessment concluded that, as of the end of
fiscal 2016, our internal control system for financial reporting iseffective. An independent auditor also provided a similar
opinion.

DA I - DA N R E P O R T 2 017

Fair and Transparent Business Practices

47

Plan/draft

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

Executive Committee(Discussion ofimportant matters)

Audit
reportOur CSR Activities

The objective of Dai-Dan’s corporate governance system is toensure appropriate and efficient management by maintaining
discrete decision-making, oversight, and administrative
functions, thereby enabling swift and appropriate deliberationand implementation of decisions.
In June 2015, we elected two external directors known for
their varied experiences and wide-ranging viewpoints in orderto add a broader perspective to the discussions of the Board of
Directors while also strengthening our management’s
monitoring functions. Both external directors contribute theirown perspectives in providing valuable advice on oursustainable growth and improvement of corporate value. They
are fulfilling their role by providing invaluable judgment.
Our internal and external auditors help to ensure monitoringof management by conducting audits and site visits and bysubmitting their own objective questions and presenting their
viewpoints to the Board of Directors. External directors andauditors exchange information and opinions regularly and holdmeetings of the independent officers’ committee comprising
independent officers. They discuss the administration of theBoard of Directors and take steps to contribute to effective
corporate governance. It is our opinion that our current
oversight system for our auditors and Board of Directors
functions adequately in the interests of maintaining corporate
governance.
Dai-Dan has established and implemented the Dai-Dan
Corporate Governance Guidelines, a policy which systematically
expressed our views concerning such matters as the protectionof shareholder rights, Board of Directors management, dialogue
with shareholders, and issues relating to social andenvironmental problems and other sustainability issues.

Appoint/ Reportdismiss/
supervise

Approve policies/plans

Internal Audit
OfficeOur corporate governance system

Accounting
auditors

Appoint

Audit

4 auditors(including 2 external auditors)

Consultation/
reportCorporate GovernanceAppoint/dismiss

Appoint/dismiss
Audit report48Compliance
Strengthening the system to ensure thorough, fair and appropriate business operations

Corporate Code of Ethics
We have developed five Action Principles and 14 Action Standards to guide our executives’ and other employees’ compliance withlaws and regulations and support their demonstration of good social conscience. The Action Principles summarize the concepts tobe kept top of mind during the performance of day-to-day tasks.
■ Excerpt from our Corporate Code of Ethics Our Action Standards serve as practical guidelines to the Action Principles on which they are based.

Action Principles

Action Standards

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

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

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

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

Whistleblower

ReportLegal Compliance Support Committee

In April 2014, Dai-Dan established the Compliance Office andplaced it under the direct control of the chairman while ensuring
it remains independent from the headquarters and offices. This
office collaborates with the Compliance Committee in planning,drafting, and implementation to help ensure that our businessactivities comply with the Antimonopoly Act and other relevantlaws and regulations.
In cooperation with the Internal Audit Office, this officecontinues to monitor the compliance activities in our offices.

In April 2014, we established the Legal Compliance Support
Committee, a professional organization supporting theCompliance Office. This Committee comprises external experts
and provides expert advice applicable to the initiatives carriedout by the Compliance Office. It also holds seminars on legal
compliance and conducts awareness-raising activities for all
our offices.

Prevention of insider trading

Protection and respect for intellectual property

ReportExternal pointof contact(Corporate solicitors)

Internal point of contact
ReportNotificationof results

ReportCompliance Committee Secretariat

Compliance Committee

Investigation

The Compliance Committee Secretariat acts as an internal point of contact.

Compliance Committee

Promoting awareness and compliance

The Compliance Committee was established to ensurecompliance with laws and internal regulations, and tostrengthen fair and ethical company operations with strong
compliance. The committee is chaired by the president, and is
responsible for boosting executives’ and other employees’compliance awareness, receiving and investigating reports ofviolations, and developing preventive measures. During fiscal
2016, the committee met on three occasions.

In each fiscal year, Dai-Dan formulates a plan and implements
various initiatives in order to promote awareness andcompliance.
Training in proper compliance is provided during new
employee training sessions, position-specific training sessions,and as part of the training programs of each office. Thisapproach ensures that many executives and other employees
are exposed to appropriate compliance training.

● Release of a Message from Management on the topic ofCompliance Month● Submission of written oaths according to the terms of our
Corporate Code of Ethics● Presentation of group training sessions on corporate ethics
and compliance･ Notification to promote use of whistleblowing and consultation systems, etc.

･ Notification to promote use of whistleblowing and consultation systems, etc.

● Presentation of seminars by lawyers on compliance with the
Antimonopoly Act (for management-level and generalemployees)● Presentation of study sessions on compliance with the
Antimonopoly Act● Publication of Compliance News● Confirmation of “office compliance action status” at all offices● Voluntary study of compliance through “e-learning”● Holding of compliance seminars● Presentation of study sessions on compliance with the
Antimonopoly Act● Publication of Compliance News● Confirmation of “office compliance action status” at all offices● Voluntary study of compliance through “e-learning”(Corporate Code of Ethics, business and work procedures,
Antimonopoly Act, etc.)

Dai-Dan believes that intellectual property can be developed
both in the lab and the field. Therefore we proactively apply forpatents on inventions and designs by both our TechnicalResearch Laboratory and our on-site workers. In fiscal 2016,
we were granted a total of eight patents, including one for asterilization system for humidifying units installed in air
conditioners. In addition, we have been implementing risk
management initiatives to ensure we do not infringe upon theintellectual property of others.

Registration with J-IRISS

Establishment of the Intellectual Property Office

Dai-Dan’s executive officers are registered with theJapan-Insider Registration & Identification Support System(J-IRISS), which is operated by the Japan Securities Dealers
Association. Through these initiatives we have in place asystem to prevent insider trading, including unintended insider
trading.

In April 2017, we established the Intellectual Property Officeunder the Technical Development Group with the purpose ofstrengthening our reception, maintenance, and management ofrights to intellectual property; to strategically create and protect
intellectual property; and to flexibly make use of intellectual
property.
The Intellectual Property Office protects against risks tointellectual property such as intellectual property rights
infringement and takes necessary measures to prevent suchrisks before they occur.

Initiatives to counter antisocial forces
Dai-Dan is firmly opposed to antisocial forces and is committed to avoiding any relationship with such entities. Our Corporate Codeof Ethics clearly sets forth this principle, and our training ensures thorough compliance. In addition, the contracts we enter into with
subcontractors clearly state that the contract will be terminated if the subcontractor is found to be substantively involved with
antisocial forces. This is intended to effectively exclude antisocial forces from our business dealings from the outset.

DA I - DA N R E P O R T 2 017

Fair and Transparent Business Practices

Main Action Plan for FY2017● Release of a Message from Management on the topic ofCompliance Month● Submission of written oaths according to the terms of our
Corporate Code of Ethics● Presentation of group training sessions on corporate ethics
and compliance

Strict rules have been imposed on share transactions as per our
Insider Trading Control Ordinances in order to prevent unjust
share trading by corporate insiders, protect shareholders andcontribute to a stable and fair securities market.
Additionally, the Introduction on Insider Trading Ordinancefor Executive Officers and Employees of Listed Companies
created by the Tokyo Stock Exchange has been made available
on our corporate intranet in order to establish an environment
in which executives and employees have a good understandingof insider trading.

Our CSR Activities

Results of Main Initiatives in FY2016

DA I - DA N R E P O R T 2 017

Compliance Office■ Internal whistleblowing and consultation flowchart

Violation of laws and internal regulations

49

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

50

Initiatives to protect personal information

Risk Management
Risk Management Regulations
Dai-Dan introduced Risk Management Regulations in April 2001 to prepare for potential risks such as natural disasters, the leaking ofconfidential information that could damage the company, and to keep damages to a minimum.
In the event that an identified risk becomes reality, a “countermeasures headquarters” is established to allow all employees to work
as one to identify problems and share information.

We recognize that the leakage of personal information is a riskthat has potential to cause a loss of trust. As such, we havestrengthened our internal systems in order to protect personal
information, and have posted the Personal Information
Protection Policy on our corporate website. Furthermore, wehave created a manual based on our Personal Information
Protection Regulations and distributed the manual to all
executives and employees in order to ensure the protection of
personal information.
In January 2016, the Japanese government’s “My Number

System” was introduced. Accordingly, we have posted the
Basic Policy on Proper Handling of Specific Personal
Information, Etc.” on our corporate website. Also, in line withthe “Guidelines for proper handling of Specific Personal
Information,” we are taking necessary and appropriate safety
management measures to prevent leakage, loss, andunauthorized use of an individual’s number and personallyidentifying information. We remain committed to ensuring
appropriate handling of each individual’s number and otherpersonal data.

Initiatives to strengthen information security
The Information System User’s Guidelines
are made available for viewing byexecutives and other employees on thecorporate
intranet,disseminatingknowledge regarding everyday points ofnote concerning the use of electronicequipment.
Information
security
training
isconducted once a year via e-learning toincrease information security awarenessand prevent the occurrence of accidents
such as information leaks before they
happen.
In addition, in order to enhance
information security in the field, we issue
our Security Handbook not only to ouremployees but also to our subcontractors’
staff as well.

Disclosure (Proactive and Timely Disclosure of Information)
Shareholder meeting

Information security training
conducted via e-learning

Security Handbook

The 88th annual meeting of shareholders was held at our
Osaka Head Office on June 29, 2017. We feel that this annual
meeting is an important space for communication with all of ourshareholders. Business reports are displayed on a large screen
and accompanied by a narrative to give our shareholders aclearer understanding. Additionally, we send out ourshareholder meeting notifications early in order to provide
sufficient time for shareholders to consider the reports andmatters related to resolutions. Prior to the meeting, we
screened a video of our new Cell Processing Facility & OpenLab (Cellab Tonomachi), which had opened in April 2017,
introducing the highlights of this facility.

Emergency drills under our business continuity plan

51

DA I - DA N R E P O R T 2 017

Tohoku Branch

The investor information page on our corporate website allows
investors to view earnings summaries, securities report andother important items. The page also provides information suchas business reports, medium-term business reports andnotifications of shareholder meetings. This information isprovided in the form of IR news available on the main page of
the website and is updated as necessary.

DAI-DAN REPORT
Dai-Dan began publishing an annual CSR report with our fiscal
2008 issue. In 2014, we introduced the “DAI-DAN REPORT” asan integrated corporate report in order to provide stakeholders
with a broader array of public information. All the reports areavailable on our corporate website. For our international
stakeholders, we have an English edition of the DAI-DANREPORT that is available on our global website as shown below.

Japanese edition
https://www.daidan.co.jp/csr/report.html

English edition

Fair and Transparent Business Practices

Niigata BranchTokyo Head Office

IR tools

Dai-Dan holds briefing sessions on its financial results twice ayear. Our previous consolidated briefing sessions were held on
December 7, 2016 and June 7, 2017 to present our
second-quarter financial results and full-year financial results,
respectively. The sessions present an overview of financial
results, the business environment, and performance prospects
as well as the state of progress of our Mid-Term Management
Plan. Furthermore, we respond appropriately to individualinterviews from analysts and institutional investors.
On July 19, 2017, we held an analyst tour at our Cellab
Tonomachi, which opened in April as a base for open
innovation in the field of regenerative medicine. During the tour,
we presented our initiatives aimed at creating businesses that
support the regenerative medicine.

Our CSR Activities

Osaka Head Office

In September 2017, Dai-Dan completed
an emergency drill in keeping with ourbusiness continuity plan (BCP) at all our
workplaces
throughout
Japan.
By
following the action manual (specifying
initial response) for each office, which
outlines the delegation of roles, we
completed an earthquake drill that
included first aid, evacuation, safety check,posting of emergency stockpiles, andverification of our satellite-phone-based
communications system. At the sametime, we incorporated the lessons learnedin previous years’ drills.
We will continue to conduct drills andimprove the chain of command required ina disaster during normal times. This isintended to support two priorities: ensuring
the safety of executives, employees, andtheir families; and providing customer
support in an earthquake or otherlarge-scale disaster. We continue topromoteemployeeawarenessbyproviding training and drills and improvethe effectiveness of our BCP.

Briefing session on financial results and analyst tour

https://www.daidan.co.jp/english/eco21/index.html

DA I - DA N R E P O R T 2 017

52

Initiatives to provide energy saving solutions
During the design phase, we proactively provide customers with energy-efficient solutions, which are predominately based ontechnologies developed by Dai-Dan to contribute to reduced CO2 emissions. Throughout fiscal 2016, we offered solutions that would
have reduced CO2 emissions by 30,294 tonnes, with customers adopting energy-efficiency options that saw a total reduction of
14,757 tonnes of CO2.

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

■ CO2 emission reduction through design solutions(tonnes)■ CO2 emission reduction through adopted solutions

Target(tonnes)Result70,00060,00060,00050,00040,35540,000

Environmental Conservation Initiatives

60,00044,76850,00040,40039,99045,000○: Target achieved △: In progress

Proposal,planning,
designing

Sales
department
Designdepartment

Installation
department
Installation

10,00053

All
employees

DA I - DA N R E P O R T 2 017

FY2017 target

FY2013

FY2014FY20150

FY2016

Number of solutions that leverage
Dai-Dan technology adopted

More than 70

66△

More than 70

CO2 emission reduction throughdesign solutions

More than
45,000 tonnes

30,294 tonnes△

More than
40,000 tonnes

CO2 emission reduction throughadopted solutions

More than
20,000 tonnes

14,757 tonnes△

More than
20,000 tonnes

Energy consumption converted toCO2 emissions―

976 tonnes――

Promotion of sustainable procurement

More than 40%

43.4%

○

More than 45%

Promotion of sorting of industrial waste
Quantity sorted in the field

More than
3.5/workplace△

More than
3.5/workplace

Promotion of recycling
Recycling sales proceeds

More than
60 million yen○

More than
60 million yen

Reduction of thermal insulation used
for drainpipes

More than 95,000 m

Energy consumption converted toCO2 emissions

Less than
1,600 tonnes

Water consumption
Copy paper usage60.154 million yen

More than 95,000 m

1,732 tonnes△

Less than
1,600 tonnes―

13,944 m³――

Less than 58 tonnes

59.6 tonnes△

Less than 58 tonnes

Increasing adoption of hybrid vehicles
and other next-generation vehicles

60%

67%

○

70%

Improvement of sorting rate of general
waste

―

58.4%

―

―

FY2013

FY2014FY2015FY2016

Initiatives to reduce energy consumption
We are committed to reducing energy consumption, such as electricity and gas, and reducing use of photocopy paper at installationsites and offices. In fiscal 2016, our energy consumption converted to CO2 emissions totaled 976 tonnes and 1,732 tonnes atinstallation sites and offices, respectively.
■ CO2 emissions at installation sites
1,376

1,400
1,200

■ CO2 emissions at offices

1,296

1,600

1,083

976

954

1,000

1,450 1,421

1,400 1,428

FY2012FY20131,800 1,745

1,710

FY2014FY2015

1,618

1,600

Result
1,732

1,200
800

600

400

200
0

Target(tonnes)
2,000

400

△

77,329 m

FY2012FY2012FY2013

FY2014FY20150

FY2016FY2016

Note: The CO2 conversion value was revised in FY2014.

Initiatives to promote sustainable procurement
Dai-Dan promotes sustainable procurement
to our customers, and has designated items
that are applicable to sustainableprocurement in the following five areas:
introduction of energy saving, high efficiency
equipment; use of environmentally friendly
material; introduction of highly durable
equipment; introduction of low emission
devices; and introduction of water saving
equipment. Sustainable procurement rateduring fiscal 2016 was 43.4%.

■ Sustainable procurement rate

Materials andequipment purchased

Sustainableprocurement

Sustainableprocurement rate（%）

(millions of yen)
50,00050

47,96042,739

36.5%

38.2%

43.4%

40,55040,64840,000

38.9%

39.2%

40

36,881

30,00020,00030

15,61718,317

15,81915,91316,012

10,0000

Environmental Contribution

Officeactivities

FY2012800

3.3/workplace

14,757

Our CSR Activities

Procurement
department

15,0005,000(tonnes)
1,600■ Our Environmental Management System: FY2016 environmental targets and results/FY2017 environmental targets

Assessment

16,84920,000

Our company can best contribute to the emergence of a society committed to global environmental sustainability by providing building
services with low environmental impact; therefore, we promote the adoption of these facilities by recommending them to ourcustomers. Moreover, it is paramount that we continue to reduce the environmental impact associated with our company’s business
operations and that we raise the environmental awareness of our employees as well as others with whom we work. We continue totake steps to further advance our energy-efficiency and resource-conservation initiatives at our offices as well as throughout our
installation work.
Equally important is the need to conduct conclusive leak-prevention and suitable waste management beginning with fluorocarbons,
which can contribute to global warming, as well as toxic substances. This applies to both facilities under construction and ourcompany’s own facilities. Consequently, we remain committed to stringent observance of all environmental laws and regulations.

FY2016 result

Result20,00020,00012,657

11,11730,2940

FY2016 target

15,00015,00015,00030,000Our environmental stance

Main target oritem to be monitored

19,85320,00050,00010,000

Activities andresponsible departments

Target25,00020

10FY2012FY2013

FY2014FY2015FY20160

DA I - DA N R E P O R T 2 017

54

Initiatives to sort industrial waste
At Dai-Dan, we promote the sorting ofwaste at all our installation sites.
Throughout fiscal 2016, we produced
6,631 tonnes of industrial waste, of
which 83% was sorted.
Furthermore, we promote awarenessof reducing industrial waste at our offices
and encourage sorting. In fiscal 2016,
our offices produced 103 tonnes ofgeneral waste, of which 58% wassorted.

■ Industrial waste sorting rate
Total waste(tonnes)
20,00018,00016,00014,000Sorted waste

Sorting rate（%）

91%
14,911

100

89%

84%

83%

83%

90
80

13,59370
11,141

12,00010,000

7,598

6,000

8,465
6,301

50
7,131

6,631

40
5,471

30

4,000

20

2,000

10

0

0

FY2012

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

60

9,873

8,000

Meeting Customer
Expectations

FY2013

FY2014FY2015FY2016

Quality Improvement Initiatives
Our vision of quality

Increasing adoption of hybrid vehicles and other next-generation vehicles
Since fiscal 2012, we have been promoting a shift to hybrid vehicles as we seek to further improve our energy efficiencies andresource conservation. In fiscal 2016 we started adopting the use of hybrid and next-generation vehicles (including PHV, EV, andclean diesel vehicles), and by the end of the fiscal year we had achieved a 67% adoption rate. For fiscal 2017 we are targeting a rateof 70%.

At Dai-Dan, we believe it is our corporate mission to contribute to the creation of the environments that our customers require.
Therefore, we consider it important to respond swiftly to customer demands and to make recommendations to our customers.
Moreover, in order to ensure our customers are further satisfied, we aim to provide high-quality products that can be used safely
and with full confidence. In addition, we are working to meet our obligations prior to installation, including responding to risks regarding
installation services and to promote improvements through our employees as well as our subcontractors.

Customer evaluations
Contribution made by research on reducing environmental impact
Reduction of waste using supercritical CO2
Under our significant initiative to reduce waste, we have developed and put to practicaluse a technology that uses supercritical CO2 in a process for refurbishing air filters usedin factories.
Initially adopted by the Research Institute for Quality Living Co., Ltd. (an inspection
organization of the Aeon Group), this system has been employed in a variety ofindustries including electronic devices and food processing. As a technology for
reducing environmental impacts, it has earned high praise from customers andassociated institutes.

We conduct customer satisfaction surveys after we havecompleted installations to get customers’ reactions to our workand support. Based on these survey responses, we holdinternal project evaluation meetings with everyone who wasinvolved to confirm the areas we need to improve on and whatthings to keep in mind when providing follow-up service.
Over the entire lifecycle of a building, even though thepeople may change who represent both the customer and

The Customer■ Customer satisfaction survey results

Japan’s largest supercritical CO2 cleaning and refurbishment
equipment

FY2015FY2016

Customer evaluations

Installer capacity

3.50

3.47

3.50

Points made, details shared

Installation management

3.46

3.44

3.49

Creativity and solution proposals

3.44

3.42

3.46

Backup capacity

3.42

3.42

3.43

Overall evaluation

3.51

3.48

3.53

VOICE

* Tests to ensure that no air leaks from the joints
Performance evaluation testing of laminate ducts

DAI-DAN CO., LTD.

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

Dai-Dan’s goal is to earn the customer’s trust

The function of a salesperson is to listen to customers’ wishes from the planning stages, have their wishes
reflected in the design and installation, and deliver high quality to them. Toward that end, the evaluations we
receive from customers following completion of the project are valuable materials for us to evaluate what things
went well and what didn’t. We could not improve customer satisfaction if we did not review this feedback withrelated departments and make use of the experience. Sometimes the feedback we receive can be harsh, but I
believe that listening to the honest opinions of customers is the way that Dai-Dan can earn their trust, and thatwhat we can continue to do as salespeople.

Takuya Kishimoto

DA I - DA N R E P O R T 2 017

High added value proposals
Achieving pleasant and safe spaces

Meeting Customer Expectations

By verifying the quantity of air moving in the ducts following their installation andoptimizing the size of those identified as wasteful, we are conserving resources.
We also promote resource conservation by introducing laminate ducts made withspecially reinforced steel sheet that is 10% to 30% thinner than conventional duct
materials.
Before laminate ducts are installed, they are subjected to leakage tests* and tests
to ensure durability and resistance to vibration at the Technical Research Laboratory.

Number of surveys completed: FY2014; 577/FY2015; 622/FY2016; 736

Design & installation to satisfy needs

Our CSR Activities

Conserving resources through duct size optimization and the use of laminate ducts(Perfect score = 4)

FY2014Item

See p. 28 for more information on our technology for cleaning and refurbishing air filters with supercritical
CO2.

55

Dai-Dan, we use information systems to pass on information
properly so that we can maintain facilities and provide follow-up
service that will satisfy the customer over the long term.

Deputy Manager of Sales Department 3, Tokyo Head Office

DA I - DA N R E P O R T 2 017

56

Initiatives with Subcontractors

Customer Consultation Office
At the completion of a project, Dai-Dan conducts a status review of major equipment and provides ongoing advice to improve
performance. This work is carried out by the project manager, who can offer insights into the building services even after thehandover. Dai-Dan opened its Customer Consultation Office in November 2012. Customers are welcome to contact us for
information on building maintenance and to submit cost estimate requests. Our effective customer support system is prepared tomeet a wide range of customer needs without delay.

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

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

Activities with subcontractors
So that our company can provide safe, high-quality, on-time
installation of building systems we work with many skilled
professionals who perform installations. We need to combine
their skills with our technical capability to plan and manage
those installations. Toward that end, we rely on our
subcontractors as our vital partners.
We have long-standing relationships with the subcontractor
organizations Dai-Gen Kai and the Safety & Health Association
whom we trust to hold sectional committee meetings andactivities for different professions at our office locations. These
initiatives address a variety of topics, notably increasing
installation efficiency and adopting labor-saving methods tocope with the aging of skilled workers and fewer young workers
entering the workforce, factors that are causing a shortage oflabor, which has become an important issue also in terms ofcost.
We have built a network of subcontractors that links
regional contracting organizations across the country. The
network provides human resources to mitigate labor shortages,
and in the event of a large-scale disaster it buttresses ourbusiness continuity plan, which includes customer recovery
response. In this way we are meeting our social responsibilities
as a company.
Dai-Dan will continue to make improvements in safety,
quality, and cost through our technical capacities. We remaincommitted to meeting requests and exceeding expectations intandem with our subcontractors, focusing on craftsmanship.

Sectional committee activities (details of initiatives)

Quality and Environmental Management System■ Fiscal 2016 initiatives of the sectional committees of the Osaka Safety & Health Association

A year and a half has passed since we started working with the 2015 revision of the ISO 9001 standard, and in that time we have
expanded and improved our risk-based thinking, and have been applying it much more effectively in actual business practices.
● We identify risks related to our installation services, especially when the possibility exists that a customer’s production
operations or business activities could be significantly impacted. We are strengthening the backup capabilities of our offices andheadquarters to provide assistance in the field for such cases.
● The reduction of the environmental impact of building systems is the key environmental issue we have identified. We are therefore
promoting energy- and resource-saving ideas to our customers.
● Any quality or environmental issues that negatively impact our customers are input into our internal information system. By
creating a database of such issues, we are able to share preventive measures that have been taken, thereby reducing
recurrence and improving the technical level of our services.

Sectional committee

Topics and principal activities

Electrical Sectional
Committee• Passing on of skills• Cost reduction measures• Review of methods for developing activity records• Review of additional items regarding individual
quality KY (hazard prediction)

Piping Sectional
Committee

Sectional committee• Discussion of test details of ECO spiral duct
strengthening and testing at plant

Thermal Insulation &Paint Sectional
Committee• Comparison of MLIT and Japan Institute ofArchitects specifications• Sample manufacturing and adjustment in orderto standardize technical capabilities• Introduction of materials being distributed in the
Kanto area

Refrigerant Piping• Policy for reducing the number of person-hours
Sectional Committee
Various Installations • Creation of “List of Don’ts” in installation andSectional Committee
other types of construction• Creation of a simplified version of the installation
plan• Introduction of examples of special installation

Topics and principal activities

Duct Sectional
Committee

Equipment Sectional • Review of major equipment manufacturers’ list
Committee• Review of materials comparison
Intercommunication
Workshop• Proposal for saving labor in construction● We conduct internal audits of quality and environmental management to improve the reliability and efficiency of installation, bothby revealing uncertainties and by actively implementing the positive examples horizontally across the organization.

Our Policies Regarding Quality andEnvironmental Protection■ Quality and Environmental Management System

DA I - DA N R E P O R T 2 017

Audit of Quality andEnvironmental
Management

Headquarters/
Business Offices

Quality andEnvironmental
Management Committee

Administrator of Quality
and Environmental
Management

Officeactivities

Sales
activities

Designactivities

Development
activities

Installation
activities

Procurement
activities

Hiroshi Funada
Chairman of Osaka Dai-Gen Kai
Representative Director of
Miyoshi Sheet Metal Work Co., Ltd.

The Osaka Safety & Health Association was launched in April
2016 after being spun off from the Osaka Dai-Gen Safety &Health Association. In addition to pursuing safety and healthissues and sectional committee activities, the primary function of
the 156 companies in the association is to assist with business
continuity plans. In the area of safety and health, we are putting
into practice efforts that will encourage on-site foremen todevelop the habit of tool box meetings and using individual KY(hazard prediction) pointing and calling, and by so doing
establish a cheerful work climate, which leads to accident
prevention. These efforts have been successful, partly
accounting for the achievement of zero lost workdays due tooccupational accidents. In our sectional committee activities,
this fiscal year we will be reorganizing
initiatives into three areas — environment,
quality, and productivity — to achieve further
improvements.

Meeting Customer Expectations

57

Head Administrator of
Quality and Environmental
Management

Osaka Dai-Gen Kai was launched in April 2016 with 73
companies after being spun off from the Osaka Dai-Gen Safety& Health Association. We are now in our second fiscal year ofactivities. Our main objective is to support business continuity
planning and the continuation of business activities in the eventof a major disaster such as an earthquake or flooding. We arebuilding a system to provide support in a disaster that involves
emergency care and evacuation efforts, plus facilitating thegathering of information to be used to confirm the whereabouts
of individuals via email. We will also review such activities on anannual basis and work more closely with DAI-DAN CO., LTD. tobuild a system that functions with even greater precision.

Osaka Safety & Health Association

Our CSR Activities

1. 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.
2. While strengthening our expertise in advanced technologies, we
strive to improve the skills of our employees and establish strong
partnerships with our subcontractors to provide assured quality.
3. We are dedicated to developing and providing energy-saving,environmentally friendly technologies. We assess theenvironmental impact of building systems and offer proposals for
impact reduction and energy efficiency.
4. We, as a good corporate citizen, carry out social contribution
activities and positive information disclosure, to enhancecommunications with society.
5. We publicize our quality and environmental targets internally andcontinue to strengthen them in order to improve the results of ourinitiatives.

Comments from Subcontractors

Osaka Dai-Gen Kai

President“As a building services engineering and installation provider, we
continually take on the challenge of creating value for our clients
while contributing to the development of a better environment andstronger communities”; in keeping with these management
principles, we ensure our business practices contribute to quality
and environmental preservation. Moreover, with the goal of
improving customer satisfaction, we are contributing to theemergence of a society committed to a sustainable environment.

VOICE

Takaharu Kominami
Chairman of Osaka Safety & Health Association
Chairman of Koyo Industry Co., Ltd.

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58

New Employee Support System(Dai-Dan Mentor System)

Valuing Our Employees

The Dai-Dan Mentor System consists of two systems: theInstructor System, which supports the enhancement ofspecialist knowledge and technical skills, and the Mentor
System, which provides psychological support and assists
career development. These two types of mentors (instructors
and mentors) provide comprehensive support to new
employees.
This chain of personnel development reflects our humanresource development belief that people grow as they assist in
the development of others.

Dai-Dan respects each of our employees andencourages them to take on the challenge ofcreating greater value, and also promotes
positive work-life balance.

People are Our Greatest Asset

New Employee Support System(Dai-Dan Mentor System)

At Dai-Dan we consider people to be our greatest asset, and it follows naturally that personnel training takes top priority. We thus offer
plenty of education and training opportunities. Today, “work style reform” is a commonly heard phrase in Japan. Our own efforts arefocused on restructuring our training system and taking measures to improve the workplace environment. The end goal is to bring out
the full capabilities of each and every employee and make working at Dai-Dan a positive daily experience.

Counseling

Employee training
The training of new employees

Acquiring engineering skills in advanced building systems

Technical training for new employees is the initial training weprovide. The program consists of introductory and fundamental
technical training, two aspects that together allow new
employees to acquire all of the basic knowledge that isnecessary and put that knowledge into practice.
The group training is conducted over a period of six months,
during which time we incorporate into the curriculum facetsthat go beyond the typical boundaries of individual job
descriptions. The training includes lectures, but also provides
many “observe, touch, and do” learning experiences. Suchtraining is good at enabling the fast acquisition of knowledge
and technical skills. It also equips new employees with theability to immediately contribute to the company.
This six-month training period allows new employees toacquire specialized knowledge and technical skills. Importantly,
it also allows them to develop a strong bond with the others intheir “class” with whom they will work into the future, spurring
each other on to develop to their full potential.

In engineering, we help employees to improve their technicalcapabilities through our engineering training program. By
having them acquire a high level of skill in advanced building
systems, we also strengthen our expertise in advanced
technologies and practical competence in the field.
For our younger engineers, we have a seven-year program
known as the new “Dai-Dan Standard” through which
employees improve their technical skills by compilingexperience and undergoing follow-up training in stages.
For our middle-ranking engineers and higher, we provide
technical training in advanced building systems to enable themto utilize those skills in tandem with their development
engineering skills.

59

DA I - DA N R E P O R T 2 017

Tour of parts warehouse

Teaching

Psychological support

Support for skills

Non-work related matters

Work-related skills

Mentors act ascounselors to provide
psychological support

Enhancing specialized
knowledge andtechnical skills■ Number of employees who have major qualifications
NumberQualification

NumberDoctorate

Qualification

6

Professional engineer

31First grade instrumentationengineer

313

Energy manager

59

First-type electrical work
engineer243

Building service engineer(air conditioning)

518

Building service engineer(plumbing)

493

First grade constructionindustry accountant

16First-class architect(Facility design first-classarchitect)

20
（13）

First-class electrical
work operation andmanagement engineer

225First-class plumbing
work operation andmanagement engineer

838

Building services architect131

Notes:· Figures pertaining to the number of people who have acquired the above
qualifications are current as of the end of March 2016.
· The number of qualified individuals includes duplicated qualifications due to themultiple fields covered by each qualification.

CPD scheme for technical improvement
There are no limits to the specialization and improvement of technical skills. In order to support our employees’ on-going commitment toskills improvement, we maintain a database on employee educational and training record using the Dai-Dan CPD* scheme and utilize itfor human resource development.
The educational and training record of each employee is reported to the Society of Heating, Air-Conditioning and Sanitary Engineersof Japan (SHASE). It is then assessed and verified for the appropriateness of our education and human resource development.
* Abbreviation for Continuing Professional Development, which refers to the continued development of skills and knowledge throughout an individual’s professional career.

Respect for Human Rights and Individuality
Human rights issues
Dai-Dan’s Corporate Code of Ethics
clearly states the importance of respect forhuman rights and individuality. We value
personal dignity and make efforts toimprove work environments. During our
new employee training sessions, we raiseawareness for respecting basic humanrights.

Valuing Our Employees

Tour of duct plantTour of pipe plant

In sales, for young employees we provide both on-site training
and training in design cost estimation. With an understanding of
the basics of the technical aspects, we provide novice-level
and intermediate-level on-the-job training to boost skill levels.
In clerical work, we use the individual’s outlined career goals
as a basis and hold seminars for young employees so that they
may acquire both basic and applied knowledge related tobusiness. Practical cross-divisional training is provided at bothnovice and intermediate levels to help them develop a broader
range of work abilities, and gain flexibility and a wider
perspective.

Coaching

Official qualifications can be the foundation for individuals as
they go about their work, and they also significantly influence
the credibility and authority of knowledge.
They are especially important for engineers as whether or
not an engineer have a qualification is closely related to on-site
work. Therefore, the acquisition of official qualification isindispensable.
In order to support our employees’ commitment to enhancetheir technical skills and in order to secure qualified engineers
and improve the overall technical level of the company, Dai-Dan
encourages and provides support for the acquisition of official
qualifications.
For those who acquire official qualifications recognized asnecessary by Dai-Dan, we subsidize course fees and also offer
incentives and official qualification acquisition benefits.

Our CSR Activities

Practical training course

Sales and clerical work training

Instructor System

Mentor System

Official qualification acquisition scheme– Respect for human rights and individuality –Excerpt from the Action Standards of the Corporate Code of Ethics● All executives and employees must respect all human rights and individuality, andcreate work environments that do not tolerate actions that may harm human dignity.
● All executives and employees must strive to improve work environments andsystems to create a workplace that allows our diverse human resources to exploit
their skills to the fullest extent.

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60

Work-Life Balance and the Work Environment
Initiatives to reform work styles
As part of an initiative aimed at work style reform, we have apolicy in place to redress excessive working hours. We
recommend that employees add one extra day of their annual
paid leave to the consecutive days off they take during Golden
Week in late April/early May, summer holidays, and theyear-end/New Year holidays. We also have a “refresh leave”
system (seven consecutive days annually) to supplement thelegally designated annual paid leave. We changed the systemin fiscal 2016 to have employees set their anticipated leavedays at the beginning of the fiscal year, which boosted the

How I utilized
VOICE Dai-Dan’s childcare support system“Eruboshi” company certification
As of April 28, 2017, Dai-Dan received aClass 1 “Eruboshi” certification from the
Minister of Health, Labour and Welfare inrecognition of its effort to promote theactive involvement of female employees
based on standards set in the Act on
Promotion of Women’s Participation andAdvancement in the Workplace.

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

Action Plan (April 1, 2015–March 31, 2020)
Target 1

To improve the workplace environment to ensure that childcare leave iseasy to take and the staff easy to return

Target 2

To have at least one or more male employees take childcare leave while
the action plan is in operation
To introduce a system of reduced working hours that exceeds theprovisions of the Child Care and Family Care Leave Act

I gave birth to a son in January 2016 and took maternity andchildcare leave. The area where I live has so many young
children that there was a waiting list for preschool day carecenters everywhere and none had accepted my child. I was
getting worried because already more than a year had
passed on my long-term childcare leave from the company. I
was able to keep in regular contact with my superiors,
though, and got support from other women who were in myposition earlier and who returned to their jobs. Thanks tothem I was able to make a smooth return to work. As of now
I am utilizing the company’s reduced working hours system,
which allows me plenty of time to spend with my boy.
Because I can only work certain hours, I have become much
more aware than before of communicating properly withothers and working efficiently.
Sometimes I am forced to take off from work suddenly
because of my child, which can cause problems for otherpeople, but everyone I work with is supportive; they help me
to work and raise my child in a way that creates a balanced
lifestyle.
I am deeply grateful to mysuperiors and peers who
graciously welcomed me back.

Risa Kuriyama
Deputy Chief of Administration Department
Kyushu Branch

Dai-Dan has established various leave systems to allow ouremployees to make the most of their holidays and refreshthemselves.
Employees are encouraged to take at least threeconsecutive days off for summer holidays, and combine thatwith additional days off from their paid annual leave or to take“refresh leave,” because a longer time completely away fromwork allows the body and mind to become fully refreshed.

■ Major leave systems(excluding statutory paid annual leave)■ “Refresh leave”
take-up rate

Type of holiday

Details

Fiscal year

Rate

Summer holiday

Three consecutive daysin summer

FY2014

39.7％

Refresh leave

Seven consecutive days
(annual)

FY2015

32.7％

10 years: 3 days

FY2016

86.6％

Long service
leave

20 years: 5 days*

* As of the end of August

30 years: 7 days
40 years: 5 days

Congratulatory or Predetermined numberof days for occasions
condolence leavesuch as weddings

Initiatives to address mental health issues
Maintaining a healthy body and mind helps keep you highly
motivated for work and vitalizes the company.
In order to ensure the mental health of employees andestablish an employee-friendly workplace, Dai-Dan offers
mental health education.
New employee training teaches the basics of mental healthto equip staff with the knowledge to allow them to identify andcope with their own stresses.
Furthermore, as part of our efforts to fulfill our company’s
duty of considering employee safety, during new deputy
manager and managerial staff training sessions, participants
have the chance to develop a better understanding of mental
health from a legal perspective, and the means to identify
potential stressors for staff and address the issues.

Since fiscal 2013, our company has been offering stresschecks for all employees. Once our employees have been able
to understand their particular stress situation themselves, they
can grasp their state of mental health. This gives some insight
into early detection of metal health disorders. Since fiscal 2016,
we have been implementing a stress check based on theamended Industrial Safety and Health Act. We are encouraging
those who experience a high degree of stress to undergo a
medical examination with interview instructions from a doctor.
Dai-Dan provides an environment where each employee isable to work with a healthy body and mind to ultimately build anenergetic company.

Continued employment scheme
Dai-Dan has introduced a continued employment scheme as part of our initiatives tomeet the needs of Japan’s aging and declining population. Under this scheme, we
extend the employment of staff who reach retirement age but desire to keep working.
Through this we are leveraging skills and expertise acquired over many years, andenabling those skills to be passed on to the next generation of workers.
In fiscal 2013, we employed all staff who desired to continue working until the age
specified by the transitional measures following the amendment of the Act on
Stabilization of Employment of Elderly Persons.

■ Continued employment rate
for persons of retirement age
FY2014 FY2015 FY2016
Persons of25
retirement age
Persons continuing
24
employment
Continued
96.0％
employment rate

22

22

21

20

95.5％

90.9％
Our CSR Activities

Target 3

usage rate to 87%.
As an initiative to encourage more women to work for us, infiscal 2016 we set up a special team to study specific measures
to put in place that would facilitate this. In fiscal 2017, what wehave started doing to reduce the rate of female turnover is toextend childcare leave beyond the legal requirement to up to
two years from a child’s birth. We also revised our system of
reduced working hours for childcare to enable women to work
more flexible hours.

Leave system

Following up on employees working long hours

Number of female employees who gave birth
Number of female employees who took childcare leave
Number of female employees on reduced schedules for childcare
Percentage of female emvoyees who took childcare leave
Percentage of female employees on reduced schedules for childcare
Number of male employees who took childcare leave

61

DA I - DA N R E P O R T 2 017

FY2014
4
4
3
100％
75％
0

FY2015
6
6
5
100％
83％
0

FY2016
7
7
TBD
100％
TBD
0

Note:
For seven people on childcare leave in
FY2016, the application of thechildcare reduced working hours
system has not been determined.

Dai-Dan is working to reduce overtime work through suchmeasures as: maintaining sufficient engineering staff andassigning sufficient personnel to each project; ensuring that
employees take a long leave upon completion of a project; andpromoting extended time off in conjunction with summer
holidays and the year-end/New Year holidays.
We also require employees to consult with a medical doctor

once a month if their hours exceed the legally defined monthly
work hour limit — defined as more than 100 hours of overtime
in one month (by the Industrial Safety and Health Act) or morethan 80 hours overtime per month in three consecutive months.
We are keeping an eye on the health of our employees in thisway and adopting employment measures in line with advice
from doctors.

DA I - DA N R E P O R T 2 017

Valuing Our EmployeesChildcare leave take-up rate62

Employee review system

Labor union activities
The Dai-Dan Labor Union was established in 1973 and marked
its 44th anniversary in August 2017. The union negotiates withthe company and pursues union activities even though it isoften difficult to reconcile the diverse views expressed bypersonnel from each and every branch office both in andoutside of Japan.
We believe the union leadership should attend gatherings at
each workplace across the country in order to better
appreciate the opinions of each member. The union regularlyorganizes recreation activities to deepen camaraderie among
members, and we are pooling efforts to achieve better working
conditions and work environments.

The outline of our employee review system is as shown below
and is utilized depending on the objectives of implementation.
Through communication between supervisors andsubordinates (interviews, etc.), and regular provision of
feedback on evaluation results, we attempt to enhance target
achievement levels, determine skills put into practice, anddevelop staff through guidance.

Meeting Local Expectations
We undertake a variety of
initiatives to make contributions
to the industry and community
in our position as a responsible
corporate citizen.

Employee review

Dissemination of technical information to external parties
Employee
behavior review

Competence
growth review(About 5 yrs after
joining the company)(During the first 5 yrs
of employment)①The level ofachievement overthe past year
compared to thegoal is reviewed.

①Competence
demonstrated toachieve theperformance isreviewed.

② Job-type specificoutcomecontribution items
are determined.

② The review iscarried out in linewith job-type
specific
standards.

①The growth ofcompetence at thestage where theindividual’s base isestablished isreviewed.
② For those whohave been
assigned todifferent job types,
the review is used
as a checklist.

Performance
review

Nagoya-area labor union recreation activity

Dai-Dan Alumni Association

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Participants from the East Japan region
at the Hotel New Otani

Participants from the Central Japan region
at the Chunichi Palace■ Organizations to which Dai-Dan employees are dispatchedas lecturers

Organization

Position

The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan

General Director

Kanto Gakuin University

Part-time lecturer

Institute of Electrical Installation Engineers of Japan

General Director

Kogakuin University

Part-time lecturer

The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan

Lecturer

Tokyo Electrical Construction Association

Lecturer

School of Tokyo Electrical Construction Association

Lecturer

Osaka Piping Higher Training School

Lecturer

Air-conditioning & Plumbing Contractors Associations
General Directorof Japan
Advisory committee
Japan Electrical Construction Association
memberAdministration
Association of Japan Instrumentation Industry
council member
Japanese Association of Building Mechanical andGeneral Director
Electrical Engineers
Association of Building Engineering and Equipment

General Director

Japan Architecture Facilities Inspection Association

General Director

Japan Electrical Engineer Association

General Director

Osaka Electrical Construction Association

General Director

Aichi Electrical Construction Association

General Director

Tokyo Electrical Construction Association

General Director

Signing of the Disaster Prevention Agreement(cooperation with local communities)
If a large-scale disaster strikes, we are, as a member of theconstruction industry, required to aid the swift recovery ofelectricity, water and social infrastructure, while at the sametime ensuring the continuation of our business and that of ourcustomers.
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.

Organization

Position

Assistance through the Dai-Dan
Society Activity FundIn 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.
FY2015: Music Atelier “Echo”(Local community music therapy to promotepersonal exchanges and vitalization of community
members through the power of song)

Meeting Local Expectations

Participants from the West Japan region
at the Swissotel Nankai Osaka■ External organization memberships and positions(as of August 2017)

Our CSR Activities

The Dai-Dan Alumni Association features annual luncheons hosted by the company’s directors and executives, whoshare with alumni their assessment of how the company is faring and engage in a frank exchange of opinions. The
luncheons are also an opportunity for alumni to catch up on each other’s lives and reminisce about the past.
Three luncheons were held in 2016 — in Tokyo for East Japan (on April 7), in Nagoya for Central Japan (October17), and in Osaka for West Japan (November 11), with a total attendance of 209.
In recent years, the number of alumni association members has risen as people born in the baby boom generation(of 1947-1949) begin to retire. Nonetheless, the real reason there is such strong participation in these events every year
is the “one big family” atmosphere that the company has cultivated over the years. Since retiring, some people haveturned to gardening or playing sports, while others are working or just taking it easy at home. Everyone seemed to beenjoying their lives whatever they were doing.
Next year we hope to see more happy faces and enjoy good food and conversation. We hope these gatherings
continue to be a source of good cheer and an energy boost to everyone each year.

In order to contribute to the development of Japan’s building services industry, Dai-Dan supports the running of academic conferencesand dispatches lecturers to external organizations. In particular, Dai-Dan’s engineers are dispatched to external training centers andeducational institutions across Japan as lecturers to provide classes on building service technologies.

FY2016: Citizen singing exercise school for preventing theneed for nursing care
(Visits to nursing facilities for singing and exercisingand other activities to extend the healthy life
expectancy of the elderly)
FY2017: Hito/Mono Support Center (NPO)(“Learning and Interacting with Seeing-Eye Dogs”
Human rights education project for elementary andjunior high school children)

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64

Donations
Dai-Dan contributes financial support for various causes to help
create and build a better community.
Our contributions include donations to organizations that
protect the global environment, donations to university scholarshipfunds and art-related activities, and the sponsoring of community
events in areas across the country where our sites are based.
Part of the sales proceeds from beverage vending machines
used by Dai-Dan employees is donated to the Central Community
Chest of Japan and the National Land Afforestation Promotion
Organization.

We have also been donating to the areas affected by the 2011
Great East Japan Earthquake and 2016 Kumamoto earthquakes
since immediately after those disasters
struck.
In addition, we gave donations toNEXT VISION, a public service
corporation that runs the “isee!
movement” which supports participation
in society for people with visual
impairments.

Nagoya Branch:
Cleanup in the area surrounding the Nagoya Branch
Shizuoka Office:Mt. Fuji cleanup campaign

Social contribution activities (initiatives at offices across Japan)
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.

Chugoku Branch:
Peace Memorial Park intensive cleanup day

Hokuriku Branch: Volunteer Support Program

Community cleanups
Sites
Hokkaido Branch· Cleanup in the area surrounding
the Hokkaido Branch· Trash Pickup Beach Walk in Ishikarihama

Tohoku Branch· Sendai City Beautification Support
ProgramNiigata Branch· Cleanup in the area surrounding
the Niigata Branch· Shinano River Clean Mission

Tokyo Head Office
General Administration
Division (Tokyo)
Sales Division
Industrial Facilities
Department· Tokyo Fureai Road Program· Litter pickup competition at 2016
Sumida Environmental Fair

Yokohama Branch· Cleanup in the area surrounding
the Yokohama Branch

Kanto Branch· Saitama Road Support

Chiba Office· Makuhari New City Cleanup Day· Cleanup in the area surrounding
the Nagoya Branch· Nagara riverbank cleanup

Toyota Branch· Cleanup in the area surrounding
the Toyota Branch

Shizuoka Office· Mt. Fuji cleanup campaign

Hokuriku Branch· Volunteer Support Program

Toyama Office· Cleanup in the area surrounding
the Toyama Office· Our Hometown Toyama Beautification Blitz· Cleanup in the area surrounding
the Hamakurosaki Beach Campground

Fukui Office· Fukui City Beautification Partner
Scheme· Participation in “Cleanup Fukui”

Osaka Head OfficeInternal Audit Office
General Administration
Division
Industrial Facilities
Department (Osaka)· Osaka City Beautification Partner
Scheme· Cleanup for Osaka Marathon

DA I - DA N R E P O R T 2 017

Names of the projects or details

Okayama Branch· Cleanup in the area surrounding
the Okayama Branch· Major cleanup of Okayama

Chugoku Branch· Cleanup in the area surrounding
the Chugoku Branch· Volunteer cleanup in the areasurrounding Peace Memorial Park
· Peace Memorial Park intensive cleanup day· Volunteer cleanup of Miyajima
Tsutsumigaura Beach

Shikoku Branch· Roadside cleanup around Takamatsu
Central Park

Kyushu Branch· Ohori Park cleanup campaign· Volunteer cleanup around enefice
KyushuKumamoto Branch· Cleanup of Ninomaru Park at
Kumamoto Castle

Forest maintenance, tree planting, and flower planting
Sites

Names of the projects or details

Hokkaido Branch

Planting flowers amid shrubbery along
the sidewalk in front of the branch office

Chiba OfficeTown Open Garden Operation· Miyoshi Green Support Squad
Technical Construction Division· Mixed-tree forest rejuvenation
Technical Development Divisionproject
Technical Research Laboratory · Project to promote a healthy
sawtooth oak forest

In addition to the above activities, we also participate in cleanups led byeach site and individuals.

Other activities
Activity
Traffic Safety
Guard Activity
Placement ofCommunity
Chest charity
vending
machines

Details

Eco-cap Project

In fiscal 2016 we collected 233,000 caps, used
as a source for reprocessed plastic that isconverted to money and donated to causes thatprovide medical support, vaccines, assistance forpeople with disabilities, and children’s
environmental education.

Charity Calendar
MarketIn January 2017, 1,585 calendars and diaries
were donated from throughout Japan.

Donation ofused stamps

We donated the used stamps collected by
the offices to the following groups:· Japan Overseas Christian Medical Cooperative
Service
Assists in improving the state of medical carecovered by health insurance in Asia and Africa.
· Tanzania Pole Pole Club
Assists in afforestation activities at Mount
Kilimanjaro in Tanzania, East Africa.

Niigata Branch: Shinano River Clean Mission

Yokohama Branch:
Cleanup in thearea surrounding
the Yokohama
Branch(Toyota Branch)

With this project, a portion of each drink purchaseat the vending machines is donated, going toapproximately one thousand private welfare
facilities in Osaka prefecture, as well as to welfareorganizations, and the social welfare councils of
local governments. (General Administration Division,

Osaka Head Office)Vending machines are set up that sell drinks at
the regular price to consumers while donating
three to ten yen per drink. The donations go tostreet children and their families for education andliving costs. (Okayama Branch)

Nichiban Core
Eco Project

We participated in Nichiban Core Eco Project
involving “Collection of discarded tape cores toprotect the green earth.” The funds are used toplant mangrove trees. (Technical Construction

Blood Drive

Activity

We posted traffic safety guards at the North
intersection of Toyota-shi Tsuchihashi Station.

Donation offunds fromcharity vending
machines

Miyoshi Green
Support Squad

Company-wide activities

Details

Division, Technical Development Division, TechnicalResearch Laboratory)

A blood drive bus from the Japanese Red Cross
Society is parked in front of the branch office andwe call upon employees and subcontractors togive blood. (Hokkaido Branch)
Many employees throughout Japan have given
blood through these drives.

Meeting Local Expectations

Nagoya Branch

Sites

Our CSR Activities

65

Names of the projects or details

Toyota Branch: Traffic safety patrol activities

DA I - DA N R E P O R T 2 017

66

Financial Report■ Consolidated Balance Sheets

P. 67■ Consolidated Statements of Changes in Net Assets

P. 69■ Consolidated Income Statements

P. 68■ Consolidated Statements of Cash Flows

P. 70■ Consolidated Statements of Comprehensive Income

P. 68

Financial Report■ Consolidated Balance Sheets■ Consolidated Income Statements(in million yen)(in million yen)

Assets
Accounts

Liabilities and Net Assets

Previous Consolidated Current Consolidated
Accounting Year
Accounting Year（

From April 1, 2015
to March 31, 2016

） （From April 1, 2016
to March 31, 2017）

23,563

Notes receivable, accounts receivable fromcompleted construction contracts and other
Electronically recorded monetaryclaims—operating

56,157

Costs on uncompleted construction contracts

26,576（

From April 1, 2015
to March 31, 2016

） （From April 1, 2016
to March 31, 2017

Current liabilities）（

From April 1, 2015
to March 31, 2016

） （From April 1, 2016
to March 31, 2017

125,253

121,632

107,465

Other comprehensive income

Gross profit on completed construction contracts

16,713

17,788Valuation difference on
available-for-sale securities

10,176

11,038Foreign currency translation adjustment

(39)

(12)

6,537

6,750

Remeasurements of defined benefit
plans, before tax(1,762)(271)

Total other comprehensive income(2,273)

(266)

1,973

4,362

1,995

4,378

(22)

(16)

Selling, general and administrative expenses

8,095

8,216

Electronically recorded obligations―

16,384

Operating income

385

478

Short-term loans payable

4,519

3,880

0

0

Income taxes payable

1,622

1,143

Interest income

13

7

Deferred tax assets

1,392

1,194

2,794

3,028

Dividends income

250

278

Other

2,117

1,857

Advances received on uncompleted
construction contracts
Provision for warranties forcompleted construction

81

76

Real estate rent

34

34

(7)

(6)

Provision for loss on construction contracts

628

254

Insurance fee

106

109

91,70487,516

Provision for environmental measures

2

―

5

4

9,717

8,887

Total non-operating income

410

434

61,43453,705Non-operating expenses

Other

Property, plant and equipment

Total current liabilities

Non-operating income

Other

5,392

6,229

144

133

Accumulated depreciation(2,908)(3,057)Long-term loans payable

1,401

2,054

Guarantee commission

11

6

Buildings and structures, net

2,484

3,172

Deferred tax liabilities

3,208

3,046

Foreign exchange loss

11

81

Machinery, equipment and vehicles

164

170

Net defined benefit liability

1,376

1,339

Other

9

24

(132)

(136)

Provision for overseas investment loss

5

7

32

33

303

296

Tools, furniture and fixtures

808

775

0

0

Accumulated depreciation

(650)

(476)

Tools, furniture and fixtures, net

158

298

1,063

1,137

439

51

4,178

4,694

Capital stock

4,479

4,479

594

682

Capital surplus

4,809

4,809

Loss on retirement of noncurrent assets

1

4

39,58843,290Loss on valuation of investment securities

18

―

(674)

(678)

Loss on valuation of golf club membership2―

48,20351,901

Loss on disaster―76

Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net

LandConstruction in progress
Total property, plant and equipment
Intangible assets

Deferred tax assets
Net defined benefit assets

Long-term accounts payable
Other
Total noncurrent liabilities
Total liabilities

16,543

16,574

1

0

7,866

7,560

Treasury stock
Total shareholders’ equity

1,615

Allowance for doubtful accounts

(188)

(188)

25,83625,56230,60830,938122,312

118,454

Total noncurrent assets
Total assets

245
6,939

2

52

6,744

Income on sales of noncurrent assets

60,450Gain on sales of investment securities
Profit reversed from the allowance forthe loss relating to the antimonopoly law
Total extraordinary income

4

―

47

―

4,628

(470)

17

(Particulars)
Comprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

54

52

Extraordinary loss

22

80

Income before income taxes andminority interests

6,802

6,911

Total extraordinary loss

6,344

Foreign currency translation adjustment

20

13

Income taxes—current

2,405

2,134

Remeasurements of defined benefit plans

(169)

(441)

Income taxes—deferred

150

147

Total accumulated othercomprehensive income

6,176

5,916

Total income taxes

2,556

2,282

Non-controlling interests

203

186

Net income

4,246

4,628

54,58358,004

Loss attributable to non-controlling interests

(2)

(10)

122,312

118,454

Profit attributable to owners of parent

4,248

4,638

Total liabilities and net assets

Comprehensive income

4,246

Extraordinary income

6,326

Total net assets

DA I - DA N R E P O R T 2 017

177
6,770

Net income

Financial Report

1,612

Ordinary income

6,295

Accumulated other comprehensive income

Other

Total non-operating expenses

67,729

Shareholders’ equity

Valuation difference on
available-for-sale securities

Total investments and other assets

Interest expenses

Net Assets

Retained earnings

Investments and other assets
Investment securities

Noncurrent liabilities

April 1, 2015
From April 1, 2016
（ Fromto March 31, 2016 ） （ to March 31, 2017 ）

138,346

20,051

Noncurrent assets）

Previous Consolidated Current Consolidated
Accounting Year
Accounting Year

Cost of sales of completed construction contracts

42,067

Total current assets

Accounts

Net sales of completed construction contracts

49,198

Allowance for doubtful accounts(in million yen)Previous Consolidated Current Consolidated
Accounting Year
Accounting Year

Notes payable, accounts payable
for construction contracts

Raw materials and supplies

67

Accounts

Previous Consolidated Current Consolidated
Accounting Year
Accounting Year

Liabilities

Current assets
Cash and deposits

Accounts■ Consolidated Statements of Comprehensive Income(in million yen)

DA I - DA N R E P O R T 2 017

68

■ Consolidated Statements of Cash Flows■ Consolidated Statements of Changes in Net Assets■ Previous Consolidated Accounting Year (From April 1, 2015 to March 31, 2016)

Balance at the beginningof current period

4,479

Capitalsurplus

4,809

Retainedearnings

36,186

Accounts

Accumulated other comprehensive income

Shareholders’ equity
Capitalstock(in million yen)

Treasury
stock

(669)

Valuation
Total
difference onshareholders’ available-forequity
sale securities

44,807

6,797

Foreigncurrencytranslation
adjustment

39

Total
Non-controlling
Remeasureaccumulated
ments ofinterests
otherdefinedcomprehensive
benefit plansincomeTotal net
assets8,429

53,462

1,592

225

(847)

(847)

Dividends from surplus
Profit attributable toowners of parent

4,248

Purchase of treasury
stock

(5)

4,248

4,248

(5)

(5)

Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

(847)

(470)

(19)

(1,762)(2,252)(22)

Depreciation and amortization

―
4,479

―
4,809

(5)

3,401
39,588

(674)

3,395
48,203

(470)
6,326

(19)
20

(1,762)(169)(2,252)
6,176

(22)
203

Shareholders’ equity
Capital
stock

4,479

Capitalsurplus

4,809

Retainedearnings

39,588

1,120
54,583(in million yen)

Accumulated other comprehensive income

Treasury
stock

(674)

Valuation
Total
difference onshareholders’ available-forequity
sale securities

48,2036,326

Foreigncurrencytranslation
adjustment

20

Total net
assets

6,176

54,583(169)

203

April 1, 2016
（ Fromto March 31, 2017 ）

6,802

6,911

284

428
(0)

Increase (decrease) amount of net defined benefit liability

(82)

(15)

Increase (decrease) in provision for environmental measures

(105)

(2)

Interest and dividends income

(263)

(286)

Interest expenses

144

133

Increase (decrease) in reserve for overseas investment loss

(0)1

Loss (gain) on valuation of investment securities

18―

Loss (gain) on sales of investment securities(4)―

Loss (gain) on sales of noncurrent assets

(2)

(52)

Loss on retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in costs on uncompleted construction contracts
Decrease (increase) in other current assets

1

4

(47)

―

(11,450)

6,836

39

(93)

(164)

257

Decrease (increase) in other noncurrent assets

410Decrease (increase) in net defined benefit asset

(749)

(106)

Increase (decrease) in notes and accounts payable—trade

4,130(5,631)

Increase (decrease) in advances received on uncompleted construction contracts

1,294

233

Increase (decrease) in other current liabilities

2,898

(577)

(48)

(6)

2,696

8,043

Interest and dividends income received

263

286

Interest expenses paid

(143)

(130)

Loss related to antimonopoly act paid

(342)

―

(1,862)(2,804)

611

5,395

Increase (decrease) in other noncurrent liabilities

Income taxes (paid) refund
Net cash provided by (used in) operating activities

Changes of items
during the period）

Current Consolidated
Accounting Year(1)

Subtotal

Total
Non-controlling
Remeasureaccumulated
ments ofinterests
otherdefinedcomprehensive
benefit plansincome（From April 1, 2015
to March 31, 2016

Increase (decrease) in allowance for doubtful accounts

Increase (decrease) in loss reserve related to antimonopoly law■ Current Consolidated Accounting Year (From April 1, 2016 to March 31, 2017)

Balance at the beginningof current period(2,275)Previous Consolidated
Accounting YearNet cash provided by (used in) operating activities
Current net income before tax adjustments, etc.

Changes of items
during the period(in million yen)

Net cash provided by (used in) investing activities

Dividends from surplus

(936)

(936)

(936)

Profit attributable toowners of parent

4,638

4,638

4,638

Purchase of treasury
stock

(4)

(4)

Net changes of items
other than shareholders’equity

(4)
17

(6)

(271)

(259)

(16)

(276)

Proceeds from withdrawal of time deposits

27

27

Payments into time deposits

(27)

(27)

Purchase of property, plant and equipment(259)(1,027)

Proceeds from sales of property, plant and equipment

2

26

Purchase of investment securities

(4)

(4)

Proceeds from sales and redemption of investment securities

13

0

Payments of loans receivable(2)―

Collection of loans receivable

Total changes of items
during the period

―

―

3,702

(4)

3,697

17

(6)

(271)

(259)

(16)

3,421

Expenditures by acquiring of other noncurrent assets

Balance at the end ofcurrent period

4,479

4,809

43,290(678)

51,901

6,344

13

(441)

5,916

186

58,004

Net cash provided by (used in) investing activities

Revenue by sales of other noncurrent assets

3

1

(269)

(506)

23

67

(493)

(1,442)

Net cash provided by (used in) financing activities
Increase in short-term loans payable

39,01035,060Decrease in short-term loans payable(38,710)(35,860)

Proceeds from long-term loans payable

1,800

3,000

Repayment of long-term loans payable(2,142)(2,184)
(4)

(847)

(936)

Net cash provided by (used in) financing activities

(894)

(925)

69

DA I - DA N R E P O R T 2 017

Effect of exchange rate change on cash and cash equivalents

(45)

(14)

Net increase (decrease) in cash and cash equivalents

(822)

3,012

Cash and cash equivalents at beginning of period

24,35823,536

Cash and cash equivalents at end of period

23,536

26,549DA I - DA N R E P O R T 2 017

Financial Report(5)

Cash dividends paid

Purchase of treasury stock70

Global Network

Third Party Opinion
This opinion statement is based on the Corporate Social Responsibility (CSR) Guideline published by
the Japan Federation of Bar Associations. It was prepared with the cooperation of attorneys who aremembers of the Kinki Branch of the Association (Hajime Yoshida, Hideshi Okura, Koichiro Murotani)and presents opinions based on interviews with department managers who were sent 42 questions inadvance and on reviews of relevant materials.
The Dai-Dan Report is well constructed as a synthesis report. It has a good balance of thecompany’s progressive efforts, record of installations, and CSR activities. With regard to CSR activities,
details are presented in an easy-to-understand table that shows the correspondence to the ISO 26000
standard, along with the current fiscal year’s figures and goals for the coming year. Throughout,numerical targets are given that clearly elucidate the status of the PDCA (plan-do-check-act) cycle. My
only suggestion is that those points not accompanied by numerical targets but which were improvedby the PDCA cycle and which the interviews shed light on somehow be represented in the report in a
way that clarifies them.

Initiatives related to corporate
governance and legal compliance
Regarding corporate governance, the mutual sharing of information
among outside officers is to be encouraged, and I recognize the factthat the actual operation of the Board of Directors has been improved
and revitalized through free and open discussion introduced byoutside directors. I also recognize that the dialogue with stakeholders
is being properly carried out and efforts are being made to improve
management in ways that reflect the opinions obtained. Based onthese results, we can hope that further improvements will be made in
the future.
Regarding compliance, ongoing steps are being actively taken
after learning bitter lessons from the past. The strong intention ofcompany leadership is known to all within the company; I see more
intensified use of the whistlblowing system; a compliance study grouphas been set up; and 100% of executives and employees have gone
through compliance education using an e-learning system. Of special
note, I commend the whistleblowing system, which is not easy toutilize efficiently, for operating properly and functioning effectively,
including feedback. On the other hand, two topics regarded as aproblem in the third-party opinion of the previous year remained anissue — simplifying the content of the compliance newsletter andincreasing the number of issues published. Regarding simplification,some efforts appear to have been made, but no additional issues were
published, so further improvements need to be made in this area.

Initiatives related toenvironmental preservation
Since earlier, the company has been emphasizing the need to help
bring about sustainability in society, and it is admirable that the PDCA
cycle is being followed with regard to the environmental management
system, which involves goal setting, levels of achievement, evaluations,and verifications. Also, the company’s stance on making continued
efforts to train new employees with a focus on quality and theenvironment can be commended highly.
Looking ahead, it appears that the company is not only engaged in
traditional energy-saving areas, but turning to new technologies, suchas working toward the zero energy building (ZEB) and reducing CO2
emissions, the results of which can be anticipated in the coming fiscal
year and beyond.
The company has also engaged actively in many activities that
contribute to society, not only in reducing environmental impact, but inthe areas of restoring and regenerating the environment as well, with its
mixed-tree forest rejuvenation project and project to promote a healthy
sawtooth oak forest. We can expect such activities also to expand.

71

DA I - DA N R E P O R T 2 017

Headquarters Organizations
Name

Hiroshi Tanaka

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

Initiatives related to respect for humanrights of employees, work-life balance
and improving the work environment
Regarding harassment, the company has been conducting harassment
training sessions for employees and managerial staff and taking
appropriate measures in response to harassment cases that have cometo light through whistleblowing — efforts that are to be commended.
In the area of promoting the success of female employees, thecompany exceeded its target of a 20% ratio of female-to-male recruits,
extended its childcare leave period to two years, and revised its
reduced working hours system for child rearing. Such efforts to improve
work-life balance are to be highly commended. Continued
improvements and reviews of the system by a dedicated team can be
anticipated.
With regard to redressing excessive working hours, we were unable
to get an objective understanding of actual working hours, so a system
must be introduced as soon as possible that enables the amount ofworking hours to be determined properly. In addition, the number of
employees consulting with a medical doctor once a month if they work
excessive hours has not reached the target of 100%.
Regarding leave, the company’s revision to its system in order topromote the use of “refresh leave” has boosted the overall rate of
employees using their leave, which can be commended. However, theannual paid leave usage rate has only improved slightly from theprevious year to 20.2%, and 55% of employees did not even take one
day of paid leave in the course of a year.
Correcting excessive hours worked is an important pillar of the“work style reform” being promoted by the government, and I hope thatcompany leadership will clarify a stance aimed at achieving thecorrection, and adjust their way of thinking, and take specific measures
to change the current situation throughout the company.

VOICE

Reflecting on the Third Party Opinions

I sincerely thank Mr. Hiroshi Tanaka for offering his invaluable
third-party viewpoint on the 2017 Dai-Dan Report in cooperation
with Messrs. Yoshida, Okura and Murotani.
Regarding the various issues pointed out by Mr. Tanaka, weintend to establish specific policies to resolve those issues andeffect improvements.
In order to contribute to the development of a better
environment and stronger communities as outlined in ourmanagement principles, the entire company is committed toworking together on initiatives in these areas based on the four
strategies and policies outlined in our mid-term management plan.

Takayuki Ikeda

Director, Executive Corporate Officer, Head of General Administration Division

Zip Code

Telephone
NumberZip Code

Address

Telephone
Number354-0044

390 Kita-Nagai, Miyoshimachi, Iruma-gun,
Saitama Prefecture049-258-1891

210-0821

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

Regenerative
Medicine Division(Kobe Office)650-0047

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

049-258-1891

Technical ResearchLaboratory

354-0044

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

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

06-6447-8065

Industrial Facilities
102-8175
Department

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

03-5276-4710

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

03-3261-8231

Address

GeneralAdministration
Division

550-8520

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

06-6447-8000

Sales Division

102-8175

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

03-3261-8231

Technical
Construction
Division

354-0044

390 Kita-Nagai, Miyoshimachi, Iruma-gun,
Saitama Prefecture049-258-1891

Advanced Technical354-0044
Construction Division

390 Kita-Nagai, Miyoshimachi, Iruma-gun,
Saitama PrefectureInternal Audit
Office550-8520

Compliance Office102-8175

Name

Technical
Development
Division
Regenerative
Medicine Division(Cellab Tonomachi)

Branch/Office Organizations
Name

Zip Code

Address

Telephone
Number

Telephone
NumberName

Zip Code

Osaka Head
OfficeAddress

550-8520

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

06-6441-8231

Hokkaido Branch001-0020

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

Obihiro Office080-0010

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

0155-25-3559

Tenri Branch632-0012

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

0743-63-1231

Hakodate Office041-0851

4-17-40 Hondori, Hakodate City, Hokkaido

0138-55-7086

Kobe Branch651-0088

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

Tohoku Branch980-0811

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

022-225-7901

Kyoto Branch604-8186

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

075-251-6411

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

017-773-1582

Wakayama
Office640-8203

6F Nankai Wakayama Bldg., 3-6
Higashikuramae-cho, Wakayama City

073-433-9431

Akita Office010-0951

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

018-824-6491

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

0748-25-5400

Morioka Office020-0032

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

Okayama Branch

700-0984

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

086-223-3106

Fukushima
Office011-716-9116

960-8031

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

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

Yamagata
Office990-0043

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

023-634-2620

Yamaguchi
Office754-0011

4F Sanyo Bldg. Ogori, 4-6 Ogorimiyukimachi,
Yamaguchi City

083-976-0121

Niigata Branch

950-0088

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

025-247-0201

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

0852-27-5890

Tokyo
Head Office102-8175

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

03-3261-8231

Shikoku Branch760-0028

11-20 Tenjinmae, Takamatsu City

087-811-2301

330-0854

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

048-644-8468

Matsuyama
Office790-0065

2-208-1 Miyanishi, Matsuyama City089-922-7161

371-0805

7F Daidoseimei Maebashi Bldg., 3-9-5 Minami-cho,
Maebashi City, Gunma Prefecture027-226-7720

Kochi Office780-0088

10-16 Kitakubo, Kochi City

088-884-8231

Tochigi Office321-0953

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

Tokushima
Office770-0872

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

Ibaraki Office300-0037

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

Kyushu Branch810-0023

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

092-771-4361

Chiba Office261-0023

25F NTT Makuhari Bldg., 1-6 Nakase,
Mihama-ku, Chiba City

043-211-8881

Kumamoto
Branch

862-0941

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

096-364-7134

Yokohama
Branch231-0062

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

045-683-1050

Miyata Office823-0016

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

461-0005

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

052-973-4750

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

Toyota Branch471-0835

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

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

095-828-0772

Mikawa Office448-0011

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

0566-27-0324

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

097-532-4350

Nagano Office380-0824

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

026-228-3820

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

0985-54-6382

Matsumoto
Office390-0811

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

Kagoshima
Office890-0046

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

099-256-3662

Shizuoka Office422-8067

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

Okinawa Office 900-0015

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

098-868-1700

Mie Office514-0004

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

Gifu Office500-8175

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

Hokuriku Branch920-0902

1-6-15 Owari-cho, Kanazawa City

076-261-6147

Singapore Branchー

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

010-6562218488

Toyama Office930-0019

1-10-20 Yayoi-cho, Toyama City

076-441-3371

Hong Kong
Branchー

21F Edinburgh Tower, The Landmark,15 Queen’s Road Central, Hong Kong

010-85222898888

Fukui Office910-0005

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

0776-23-2166

Malaysia
BranchーNo.75-3 Jalan SS 23/15, Taman SEA,
47400 Petaling Jaya, Selangor, Malaysia

010-60-378055443

Kanto Branch
Gunma Office

Nagoya Branch

The blue shading indicates regional headquarters.

DA I - DA N R E P O R T 2 017

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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 2017 PROJECT
1-9-25 Edobori, Nishi-ku, Osaka City 550-8520 Japan
TEL. 06-6447-8000
E-mail: reportinfo@daidan.co.jp

Published in October 2017