DAI-DAN REPORTDAI-DAN Co., Ltd.

Inspired by Light, Air & Water

Contents

111 Years of Progress
Second Passenger Terminal at Haneda Airport (2010)

Renovated Takashimaya Department Store in
Osaka & Nankai Terminal (2010)

Misonoza (1935)

Nagoya City Library (1923)

The House of Sumitomo (1907)

Aichi Prefectural Government Building (1938)

Head Office of Bank of Japan (1931)

Hakodate Branch of Bank of Japan (1909)

December
1946

March
1903

October
1933

October
1949

January
1965

October
1975

March
1978

January
1979

February
1983
September
1981

October
1984

April
1987

January
1987

November
1987

March
1989

March
1993

February
2002
December
1999
September
1997

March
2003

April
2003

The amount ofcompleted works breaks
the 200,000-million-yen
mark.
The amount of completed
works breaks the
100,000-million-yen mark.

April
2008

March
2013

New ResearchCentre iscompleted inTechnical
Research
Laboratory.

Corporate officer system
introduced.
Compliance Committee established.
Company-wide information system introduced.
The company celebrates its 100th anniversary
on March 4.
The company obtains a blanket certification of
ISO 14001 for all offices through the nation.
All offices through the nation obtainthe certification of ISO 9000S.
Singapore Branch obtains thecertification of ISO 9000S.

The first mortgage convertible bondsof 5,000 million yen are issued.
The corporate name is changed to
Dai-Dan Co., Ltd.
The company delivers the first unit of
PECK-500.

September
1943

Technical Research Laboratory is constructed at
Miyoshimachi, Iruma-gun, Saitama Prefecture.
The building of head office is constructed at thecurrent place (Edobori, Nishi-ku, Osaka).
The company’s stock is designated on theFirst Section of Osaka Securities Exchange.

05

Feature: Dai-Dan’s Future Challenges

12

Strengthening our capabilities regarding facilities
requiring advanced equipment technology
Strengthening our capabilities in the field of medical care,an important component of social infrastructure
Strengthening our capabilities in energy and environmental
projects in green industries that are attracting investment

05
06
07
09
11

13
16
18

Dai-Dan’s Technology

20

Dai-Dan’s Practical Competence

26

Reducing Environmental Impact
Advanced Environmental Control
For Better Facilities

21
22
24

Greater Ability to Provide Design Solutions andInstallation Expertise
Ongoing Improvement of Site Management Methods
Application of the Meister System and Establishment ofPartnerships with our Subcontractors across Japan

27
29
32

FY2013 CSR Performance and FY2014 Targets

33

Fair Business Practices

35

Environmental Contribution

41

Meeting Customer Expectations

45

Valuing Our Employees

48

Meeting Local Expectations

54

Financial Report

57

Third Party Opinion

61

Site List

62

Since fiscal 2008, we have been publishing our CSR report as a means of
informing our stakeholders of our business operations and CSR initiatives.
Beginning with this edition, we have renamed this publication as the
DAI-DAN REPORT. Compiled as an integrated corporate report, it contains
financial and non-financial data in addition to the conventional content.
Moreover, this edition contains a feature article titled “Dai-Dan’s Future
Challenges,” in which we list the issues that have been accorded a special
focus.

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.
The corporate name is changed to
Osaka Denki Danbo Co., Ltd.
The company is registered as a contractor inaccordance with Construction Industry Act.
Kansai International Airport Control Tower &Passenger Terminal (1994)

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

Dai-Dan’s Businesses● Editorial Policy

Singapore Branch is opened.

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

April
2013

The company celebrates
its 110th anniversary on
March 4.

August1993

The company
lists its stockon the First
Section ofTokyo Stock
Exchange.

October
2006

03

Corporate Profile / Financial Highlights
Operational Highlights
Our Services
Mid-Term Management Plan
Stakeholder Relations / Dai-Dan’s Responsibility

CREATE (2011)

For more than a century, Dai-Dan has been engaged in
the engineering and installation of building services forthe benefit of society.
By building on our history and expertise,
we are helping people achieve
greater harmony with nature.

Messages from the CEO and COO

Labs and Centre Building of Okinawa Institute of Science and Technology
Graduate University (2010)● Scope of This Report
Target organisation
This report covers the operations of Dai-Dan Co., Ltd. All financial informationis reported on a consolidated basis.

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

This report covers the fiscal year spanning April 1, 2013, to March 31, 2014.
Some data refers to activities after April 1, 2014.

Japan World Exposition (1970)

Founded● Report Guideline References
Japanese Standards Association “ISO26000:2010”
Ministry of the Environment “Environmental Reporting Guidelines (2012)”
GRI Guideline (G3)
Nippon Budokan (1964)

01

DAI-DAN REPORT 2014

Supreme Court Building (1974)

Nagano “M-Wave” Olympic Memorial Arena (1996)

Mozo Wonder City (2009)

DAI-DAN REPORT 201402

Messages from the CEO and COO

Seeking continuous value creation in order toa better environment and the development of
At Dai-Dan, we believe it is our duty to maintain an environment in whichpeople can live their lives in safety and comfort. Our efforts are guided by ourmanagement principles of creating value for our customers while contributing
to the development of a better environment and stronger communities in ourrole as a building services engineering and installation provider.

03

contribute tosociety

Setsu Sugaya

Shohei Kitano

Representative Director,
Chairman and CEO
Dai-Dan Co., Ltd.

Representative Director,
President and COO
Dai-Dan Co., Ltd.

Long dedicated to the emergence of asustainable society

Providing reliable quality that earns
the trust of our customers

Maintaining our role as a responsible
company

As the society of the future takes shape, demand isrising for energy conservation as well as energy
generation and storage with a focus on renewablesources.
As a building services engineering and installation
provider, we are responding to this situation bypromoting value creation in order to contribute to theemergence of a sustainable society while strengthening
our capabilities in growth areas that will provide ournext-generation revenue base.
The new research centre of our Technical ResearchLaboratory, which opened in April 2013, has become theplatform on which we are accumulating expertise ininstallation technology and developing differentiation
technology. This approach will strengthen our capabilities
regarding facilities requiring advanced equipment
technology as well as the field of medical care, an
important component of social infrastructure. We are also
engaged in projects in green industries that are attracting
investment.

By leveraging our strengths in the building services
engineering and installation industry, specifically thetechnology cultivated during our more than century-longhistory, we are strengthening our customer-oriented
one-stop services. These span the entire building
lifecycle from proposal, planning, and design toconstruction, maintenance, and repair.
To earn the trust of our customers, we intend to offer
additional services by strengthening the support system
we offer our customers following delivery.
In addition, we remain committed to improving thepractical competence of engineers who have knowledge
and experience as well as autonomy that can beleveraged with greater precision to meet the needs of adiverse range of customers.
We will continue to promote the training of skilled
engineers and the forging of partnerships with
subcontractors. At the same time, we will proactively
introduce technologies incorporating development andrelated technologies in order to provide the quality
required to meet the expectations of our customers.

As part of our management foundation, we have been
pursuing our corporate initiatives through corporate
management that ensures compliance with all legal andregulatory requirements. However, we intend toundertake a radical review in order to further strengthen
our compliance system. We remain united in guiding
our officers and employees to comply with theAnti-Monopoly Act and related laws and regulations as
we continue to operate our business with high ethicalvalues.

DAI-DAN REPORT 2014

Maintaining a workplace that enables
employees to work with pride
At Dai-Dan, we believe that our personnel are our mostvaluable asset; therefore, we have always sought tocultivate our human resources through education andtraining. We are committed to preserving for posterity
the corporate expertise we have cultivated throughout
our long history. Our goal is to maintain a workplaceenvironment that instills pride in our employees, and tothat end we are establishing a new personnel
evaluation standard to recognise excellent engineers
responsible for on-site installation.
Our workplace environment allows our employees
to demonstrate their abilities to the full. We arededicated to a vision of developing the ideal workplace.

Always With You
In March 2014, we began a decade-long countdown
that will conclude with the commemoration of our 120th
anniversary.
In response to customer expectations and as part ofour corporate responsibility, we will continue to pursue
Dai-Dan’s mission to enhance our corporate value
through continuous growth.
Your ongoing support and cooperation is truly
appreciated.

DAI-DAN REPORT 201404

Dai-Dan’s Businesses■ Fiscal 2013 Orders Received and Net Sales Ratios by Segment

Corporate Profile
CompanynameDai-Dan Co., Ltd.

Ordersreceived
127,394
million yen

Stockholders’ meeting
Auditors’ meeting

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

Executive Committee

Compliance Committee

President

21.5%

21.3%

Net sales
124,445
million yen

Air conditioning
installations
75,277 million yen

Compliance Office

ChairmanElectrical equipment
installations
26,528 million yen

Plumbing
26,783 million yen

22.6%

18.3%

■ Organisation Chart
Board of Directors

FoundedElectrical equipment installations
28,808 million yen

Plumbing
23,307 million yen

Air conditioning
installations
71,134 million yen

57.2%

59.1%

Internal Audit Office
General Administration Division

March 4, 1903

Sales Division■ Orders Received/Net Sales

Technical Construction Division
Technical Development Division

Incorporated October 10, 1933

Technical Research Laboratory

130,000

Industrial Facilities Department

125,000

Hokkaido

Capital fund 4,479,725,988 yen

120,000

TohokuEast Japan Area

115,000

Niigata
Tokyo Head Office

1,472
Employees (as of March 31, 2014) consolidated

Central Japan Area

Orders received■ Operating Income

Net sales(Millions of yen)

Singapore Branch

110,000

Nagoya105,000

Hokuriku

100,000

116,275
115,521110,751
109,224

Osaka Head Office121,919
122,109
119,980
119,233(Millions of yen)
5,000

127,394
124,445

3,000
2,000
1,000

2009

2010

2011

2013

2012

4,171

4,000

0

(FY)

3,027

2,692 2,749
1,236

2009 2010 2011 2012 2013 (FY)Okayama

Stock listing The first section of Tokyo Stock Exchange

ChugokuWest Japan Area

Shikoku
Kyushu(in million yen)

FY2010FY2011FY2012FY2013

Orders received

115,521110,751

119,233

119,980

127,394

Net sales

116,275

109,224

122,109

121,919

124,445

Selling, general and administrative expenses

10,162

9,574

9,684

9,992

9,966

Operating income (loss)

3,027

1,236

2,692

2,749

4,171

3,108

1,343

2,736

3,278

4,471

Net income (loss)

909

565

1,175

1,599

1,670

Return on assets (ROA) (%)

3.1

1.4

2.7

3.1

4.1

Return on equity (ROE) (%)

2.2

1.4

2.8

3.7

3.7

Cash flows from operating activities

3,859(4,758)

876

1,261

3,117

Cash flows from investing activities

(592)

(848)

(397)

(740)

(172)

Cash flows from financing activities(2,017)(427)(1,619)

(955)

(892)

Cash and equivalents at end of period

29,93623,911

22,63522,42024,598■ Fiscal Year-End(in million yen)

FY2009FY2010FY2011FY2012FY2013

Total assets

98,87396,306

103,345

106,155

111,347

Net assets

41,844

41,25942,19744,98846,609

42.2

42.8

40.8

42.3

41.7

1,100

3,108

2,736

FY2009FY2010FY2011FY2012

1,599 1,670

1,500

3,278

1,000

1,343

1,000
0

4,471

500
0

2009 2010 2011 2012 2013 (FY)1,040.67
1,005.38

1,050
1,000

1,175

943.57950 934.29 921.90

909
565

900
850
800

2009 2010 2011 2012 2013 (FY)

■ Total Assets/Net Assets/Equity Capital Ratio

Total assets

2009 2010 2011 2012 2013 (FY)Net assets

Equity capital ratio（％）(Millions of yen)
120,000
100,000
80,00060,00040,00042.8%

98,87342.2%
41,84442,197

41,259

43.0
42.5
42.0

42.3%

41.7%

44,98846,60940.8%

20,0000111,347

106,155

103,345

96,306

2009

2010

41.5
41.0
40.5

2013

2012

2011

(FY)

40.0

Operational Highlights■ Non-Financial Data
Number of employees (consolidated)■ Per Share Data

05

(Yen)

2,000

2,000

FY2009Equity capital ratio (%)(Millions of yen)

3,000

■ Accounting Year

Ordinary income (loss)■ Net Income(Millions of yen)
5,000
4,000

Financial Highlights■ Net Assets per Share■ Ordinary Income(in million yen)

Number of workplace accidents

FY2013Frequency rate of workplace accidents*

FY2009FY2010FY2011FY2012FY2013

1,402

1,413

1,435

1,445

1,472

28

27

42

29

38

0.45

0.26

0.25

0.52

0.54

Net income

20.34

12.65

26.32

35.83

37.45

Severity rate of workplace accidents**

0.03

0.02

0.65

0.06

0.08

Net assets

934.29921.90943.57

1,005.38

1,040.67

CO2 emissions from offices (tonnes)

1,688

1,753

1,499

1,421

1,428

Dividends

16.00

16.00

16.00

19.00

16.00

DAI-DAN REPORT 2014

* Number of workplace accidents per million work hours ** Number of workdays lost per thousand work hours

DAI-DAN REPORT 201406

Our Services

Major Projects Completed in FY2012 and FY2013
JP Tower : Air conditioning installation

Kagawa Prefectural Central Hospital :Air conditioning installation

NTT Cred Motomachi Building(RIHGA Royal Hotel Hiroshima) :Air conditioning installation and plumbing work

Kanto Factory, Sawai Pharmaceutical Co., Ltd.:Air conditioning installation

Kyoto University, Medical Innovation Centre Building :Air conditioning installation and plumbing work

Electricalequipment
installations

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 equipment 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.

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 ourcustomers 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 centres and hybrid operating rooms.

Plumbing

Water is a precious resource. Plumbing components are used to supply safe, clean water andfacilitate appropriate drainage of dirty water. In addition to making possible this supply anddrainage, plumbing components now play an important role in the reuse of wastewater. Today,
we install plumbing systems designed to help preserve the 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

Renovations to buildings and other facilities add value to customer assets by extending theirservice life while increasing energy efficiency.
Our renovation work includes installations that accommodate existing needs as well as
follow-up service. We also draw up plans to meet the needs of our customers by applying ourunique equipment diagnosis technology and utilising the installation experience we havegained from comprehensive installations of building equipment in our role as a building services
engineering and installation provider.

Overseas
operations

Dai-Dan has operations in Singapore, Malaysia and other countries providing services tofactories and research centres where we can fully utilise 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.

Public Facility Complex, South Peer :Electrical equipment installation

Tachikawa Regional Joint Government Building :Air conditioning installation and plumbing work

Grand Front Osaka :Air conditioning installation and plumbing work

Kanagawa Cancer Centre:
Air conditioning installation

Nakano Campus, Teikyo Heisei University :Air conditioning installation

Toyama Murata Manufacturing :Air conditioning installation

07

DAI-DAN REPORT 2014

DAI-DAN REPORT 201408

Key Strategies and Measures

Mid-Term Management Plan
The Mid-Term Management Plan prepared for the period spanning April 2012 to March 2015 promotes
sweeping reforms that address our entire management structure. In May 2014, we announced a revision of our
Mid-Term Management Plan that includes new strategies and measures targeting further development of thecompany.
In this revision, we adopted strategic restructuring measures targeting four areas of interest: trust, quality,
growth and responsibility.

Confidence
Customer first
attitudeQuality

Strengthening
practical
competence

GrowthSecuring revenue
for the next
generation

Responsibility
Satisfying social
requirements

Dai-Dan to Challenge a New Era
ConfidenceManagement 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 development of a better environment and stronger communities.

Management Policies❶ We maintain focus on our customers as the business environment changes so that
we can meet all their need.
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 andservices and contribute to environmental preservation.
❹ We attain our corporate targets by pursuing both our strategies and policies.

1. Strategies and measures for a customer
first attitude

3. Strategies and measures for securing
revenue for the next generation(1) More orders from customers through strengthening of our“customer-oriented one stop service”(1) Strengthening our capabilities regarding facilities requiring
advanced equipment technology• With our strength as a building facility provider, the “customer-oriented

one stop service” is reinforced through a stronger focus on building
life-cycle.
• Orders for renovations should be increased through closer relationshipwith customers.
• With the reinforced support system for customers after completionand handover, we satisfy various customer needs and provide
services more speedily.

(2) Promoting provision of technical solutions• We leverage our development technology and related technology topositively promote provision of technical solutions according tocustomers’ needs and market trends.

Quality
2. Strategies and measures forstrengthening practical competence(1) Greater ability to provide design solutions and installation
expertise

Basic Policies of Mid-Term Management Plan

• We strengthen our formula, “practical competence” =● Maintain a customer first attitude as we conduct our corporate activities and accurately identify our customers’ needs andchanges in the market.
● Strengthen practical competence empowered by the expertise and experience of individual employees and strengthen practicalcompetence of the organisation empowered by ongoing improvement of management methods to provide the quality andservice that meet our customers’ needs.
● Strengthen the capability for the field of growth in order to secure revenue for the next generation, and promote creation ofgreater value.
● Reinforce the management and education system so that all officers and employees comply with relevant laws and regulations
and conduct corporate activities based on high ethical standards.

more flexible nationwide to smoothly respond to changes in themarket trends.
• We restructure the company-wide training system to strengthen“practical competence.”• We work on training of general engineers for electricity/air conditioning
systems/sanitary installations to strengthen the one stop service.

(2) Ongoing improvement of site management methods• Through promoting information technology at the site, we aim forand cost.

Consolidated

Non-consolidated

Consolidated

Non-consolidated

Orders received

121 billion yen

120 billion yen

123 billion yen

122 billion yen

Net sales

121 billion yen

120 billion yen

123 billion yen

122 billion yen

3 billion yen

3 billion yen

4 billion yen

4 billion yen

Operating income
09

FY2014 (86th term)

DAI-DAN REPORT 2014

facilities, such as battery-related plants, pharmaceutical plants,
facilities for experimental animals, regenerative medical facilities,
data centres and plant factories.
• In order to strengthen our competitiveness in the above field, we
acquire construction skills and promote the development of exclusivetechnology to achieve recognition as a top company in technology.

(2) Strengthening our capabilities in the field of medical care, an
important component of social infrastructure• In order to sustain and enhance our brand recognition as “Dai-Danof the medical field”, we conduct marketing activities based on our
top achievements in construction of hospitals and our skills, andpromote to accumulate construction technology and develop
exclusive technology.

(3) Strengthening our capabilities in energy and environmental
projects in green industries that are attracting investment• In order to become competitive in projects in green industries, we

improve our technology to achieve “energy saving”, “energy
generation” and “energy storage” for facilities.

(4) Promotion of cooperation among companies of various fields,
aiming for continued growth and creation of new value• We promote cooperation among companies of various fields byleveraging our strength in facility technology to achieve innovation
for creation of new value.

“knowledge” x “experience” x “autonomy.”effective improvement in site management methods.

FY2012 (84th term)• We focus on projects that require the high level of technology for• The mobility of design engineers/construction engineers should be• We reduce risks and prevent troubles with regard to safety, quality■ Targeted Earnings

Growth(3) Utilisation of Dai-Dan Meister System and establishment ofpartnership with subcontractors nationwide• We implement and utilise the Dai-Dan Meister System established

for the purpose of training and development of subcontractors.
• We value the excellent staff of subcontractors, and aim for secured
safety, improved quality and cost reduction through closer
relationship between such staff and our engineers.
• We rebuild the nationwide network of subcontractors.

Responsibility
4. Strategies and measures for satisfyingsocial requirements(1) Strengthening of compliance system• We

conduct ongoing trainings to ensure that all officers andemployees of the Company comply with relevant laws including theAnti-Monopoly Act and the Construction Business Law, andvoluntarily act in accordance with public decency.
• We strengthen the management and education system to ensure fair
and appropriate business transaction.

(2) Promotion of activities to save resources and energy• We promote ongoing activities to save resources and energy based on

our environment management system, and strengthen communications
with society including stakeholders.

(3) Promotion of social contribution activities as a corporate
citizen• All officers and employees raise awareness of our responsibility to

be a good corporate citizen, and continue to promote our social
contribution activities in the neighbouring area.
• In order to contribute to the development of the building facility industry,
we provide technical information to the outside of the Company.

DAI-DAN REPORT 201410

Always With You
We strive to provide comfort that is friendly
to both people and the environment.

Dai-Dan’s
Future Challenges
FeatureDai-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 realisation of a better environment andthe development of society as they perform their tasks in keeping with the five Principles of Action of our
Corporate Code of Ethics (p. 36).

Stakeholder Relations

Strategies and measures forestablishing our next-generation revenue base

Customers, shareholders, employees, subcontractors, business partners and local communities — collectively, ourstakeholders — 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 of our stakeholders through communication
and respond to these needs, in order for us to grow as a company.

1

Customers

Shareholders

Facilities requiring
advanced equipment
technologies

Employees

DAI-DAN Co., Ltd.

Subcontractors
Business
partners

Environment

Strengthening
Our Response Capabilities

Local
community2

Dai-Dan’s Responsibility
Environment
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.

11

Customers

Shareholders

Employees

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

We recognise that it is ourduty to enhance
corporate value, maintaintransparent and soundoperations and disclose
appropriate information
in a timely manner.

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

DAI-DAN REPORT 2014

Subcontractors andBusiness partners
We strive to build
healthy partnerships
with our subcontractors
and business partners
through fair, transparent
and equal businessdealings.

Local community

The healthcare field,
an essential part of oursocial infrastructure

3

Energy and environmental
projects in green industries
that are attracting
investment

We recognise 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.

DAI-DAN REPORT 201412

For rechargeable battery manufacturing plants

Advanced industrial facilities require industry-appropriate air conditioning equipment. This extensive market is
poised for growth and includes data centres as well as manufacturers of pharmaceuticals and rechargeable
batteries.

For pharmaceutical manufacturing plants

Barrier Smart Series: Chamber pressure control technology

To keep cleanrooms free of pollutants,
chamber pressure control technology thatmaintains chamber pressure is essential.
Biological cleanrooms, which are found inpharmaceutical manufacturing plants, areparticularly sensitive to changes in pressure
and therefore cannot be subject to pressurechanges outside of the specified range
even when disturbances* occur. The Barrier
Smart Series employs the chamber pressuretechnology developed by Dai-Dan and isable to counterbalance disturbances.

■ Diagram of Barrier Smart Series

External air inlet

Fan

Manufacturing area

Predeterminedpressure

Barrier Smart EQ

and closing of doors, and changes and switching of air
intake and exhausts.

Predeterminedpressure

Very dry conditions — otherwise known as “low dew point”
environments — are required for the production of lithium ion
batteries and other types of rechargeable batteries.
Exposing a lithium ion rechargeable battery to water can
result in an intense reaction that generates explosive gas.
When a rechargeable battery manufacturing plant isconstructed, it must be provided with air conditioning
technology that maintains an environment with a low andstable dew point.
Creating a low dew point environment entails additional
considerations including energy efficiency as well as
high-quality output. Achieving the greatest possible energy
efficiency when dehumidifying air has proved to be a major
challenge.

Predeterminedpressure

Barrier Smart HB

DamperOutdoor atmospherepressure detecting
open end

Chamberpressurecontrol damper

Barrier Smart CM

Dai-Dan has developed technologies that conserve
energy while maintaining high quality by utilising a hot wind
generator incorporating a CO2 heat pump and applying
ingenuity to control dehumidification.

Features① Hot wind generator incorporating a CO2 heat pump
② Ingenuity employed to control dehumidification

Combining the two innovations above has achieved
a 42% reduction in energy consumption.

Non-manufacturingarea■ Diagram of energy-efficient dehumidification system

Decontamination
deviceFan* Changes in chamber pressure caused by the opening

Airflow
regulator

Airflow
regulator

DamperDevelopment of an energy-efficient dehumidification system

Feature Dai-Dan’s Future Challenges

1. Strengthening our capabilities
regarding facilities requiring
advanced equipment technology

Chamberpressurecontrol damper

Hot air is used to remove
moisture adhering to the rotor.

The rotor adsorbs
atmospheric moisture.
① Introduction of hot air generator

Barrier Smart AD

Outside air
Rotates* The number of “+” indicates thelevel of pressure in the chamber.

Fan

Exhaust

Rotor

Heater■ Four steps for precise chamber pressure and airflow control
Regeneration
temperature

Control point

STEP 1

STEP 2

Countering fluctuations in baseline pressure

Countering deviation in chamber pressure caused bystrong air movements

Barrier Smart CM

Barrier Smart EQ● Stabilisation of baseline pressure, which is prone tofluctuation● Resolves production stoppages and improves yields,
contributing to stable production.

Lowers the pressure by absorbing strong air
movement within the duct in order to maintainthe pressure differential between rooms.

● Ensures stable production even during typhoons.
● Contributes to improved operational efficiency ofcleanrooms by decreasing the frequency of chamber
alerts set off by strong air movements.

STEP 3

STEP 4

Prevents cross contamination caused by
the opening and closing of doors

Maintains constant chamber pressure duringdecontamination and air conditioning mode switching

Barrier Smart HB

Hybrid control system that combineschamber pressure and airflow control

FeaturesFeatures

Technology to stabilise baseline pressure

Actively controls airflow.
● Reducing risk of cross contamination caused by
the opening and closing of doors● Fast chamber pressure recovery (approximately 1/5 ofthe time required by our conventional systems)

control of
dehumidification

Dehumidifier
Fan

A unit to lower pressure after an increase caused bystrong air movement within the duct

Barrier Smart AD

Integrated control system for air conditioning systems thatprioritise chamber pressure stabilisation

FeaturesFeatures

Baseline pressure stabilisation unit that works
through distance attenuation② Innovative

Ensures safe and reliable mode transitions anddecontamination through high-precision chamberpressure control technology.

Humid air → Dry air

Returnair

Supplyair

Low dew point room
Moisture is
generated.

Dry air → Humid air

Moisture is
generated.

The dehumidifier that dries the air incorporates a slowly turning rotor that adsorbs water as indoor air passes through it.
As the hot air passes across the damp rotor, it dries the rotor and restores its capacity to adsorb moisture.

● Ensures reliable protection after decontamination.
● The chamber pressure priority control maintains
predetermined chamber pressure levels even duringchanges in air conditioning operation*.
* Changes in air conditioning operation: start-up or shutdown of air conditioning
system, shifting between day and night modes, etc.

More stable research or production activities
13

DAI-DAN REPORT 2014

DAI-DAN REPORT 201414

For data centres

Research on energy-efficient air conditioning equipment

Data centres, which store and manage customer data, arerequired to maintain their interior environments at appropriate
temperature and humidity levels in order to reduce the risk ofserver malfunction. The energy consumed by the required air

conditioners and electrical equipment has become a costburden for customers, so energy conservation remains amajor challenge.

2. Strengthening our capabilities in the field of
medical care, an important component ofsocial infrastructure
We have adopted the initiative of developing medical technologies and reducing the burdens on the patient bymaking available our technological capabilities in the field of medical facilities, an area in which we excel.

❶ Homogenisation of indoor temperature
distribution
We have conducted research on ventilation methods thatneutralise temperature differentials in server rooms. By
combining our Virtual Duct Clean Room ventilation system(p. 23) with a conventional data centre floor ventilation system,
we can create a homogeneous temperature-humidity
environment that minimises operating costs.

For regenerative medical facilities❷ Utilisation of natural cooling with fresh air
Data centres require air conditioning even in winter. The
amount of energy consumed by the air conditioners can begreatly reduced through the use of cool, fresh outside air.
We are conducting research on innovations that overcome
problems with using fresh air directly in air conditioning
systems while utilising it to advantage in air conditioning
systems and exploiting the cooling energy of indirect fresh
air.

Saving energy and reducing construction costs of Cell Processing Centres

Initiatives to promote widespread adoption of regenerative medicine*
In regenerative medicine, cells derived from a patient or a provider
are transplanted into a patient after modulation, culturing andprocessing in vitro.
The facility that performs the modulation, culturing andprocessing of these cells is generally called a Cell Processing
Centre (CPC). They require an interior environment with cleanliness
equivalent to that of a pharmaceutical manufacturing plant. To
ensure more widespread adoption of regenerative medicine, it isnecessary to greatly reduce the construction and operating costs of
CPCs. As part of this effort, we are implementing the following
initiatives.

● As a building services engineering and installation provider,we focus on saving energy and reducing construction costsof CPCs.
● We are a participant in the Forum for Innovative Regenerative
Medicine (FIRM), an organisation focused on promoting thecommercialisation of regenerative medicine, and are examining
structural standards of CPCs.

For creating optimum medical environment
In order to promote home-based medical and nursing care,
Japan is pushing forward with the construction of a community
general care system for 2025. It focuses on the functionalisation,
integration and strengthening of partnerships based on needs inthe highly acute phase, the acute phase and the sub-acutephase. On the other hand, research in the area of regenerative
medicine is focusing not only on the causes of illness and thediscovery of a cure, but also on broad applications to reduce therisks of developing new drugs. As a result, both hardware andsoftware are expected to change greatly.
Consequently, as the requirements for equipment used in
the construction of medical facilities become more diverse andcomplex, we established the Medical Care Facilities Promotion
Department (renamed in 2011), established a Hospital Team in
2010, which specialises in equipment for constructing medical
facilities to support medical facilities, a social need. We areengaged in improving the technical abilities of our employees
through the in-house training sessions of the Technology
Information Hour (p. 28). We offer suggestions for renovations
related to facility criteria according to the government’s
revised fee schedule for medical services and the rapid andwidespread adoption of hybrid operating rooms and sterile
treatment rooms.

① Hospital construction record for facilities exceeding 600 beds
(as of April 2014)② Hospital construction track record

83
258 hospitals

32%

nationwide• Hokkaido Branch

32 hospitals• Osaka Head Office• Tohoku Branch

24 hospitals• Okayama Branch

24 hospitals• Niigata Branch

20 hospitals• Chugoku Branch

58 hospitals• Tokyo Head Office

106 hospitals• Shikoku Branch

73 hospitals• Hokuriku Branch

38 hospitals• Kyushu Branch

98 hospitals• Nagoya Branch

59 hospitals

Development and introduction of air conditioning systems

CPC (Cell Processing Centre)❸ Acceptance of cells
and raw materials❶ Cell collection❷ Transport❹ Modulation, culturing
and processing ofcells

HEPA filter unit with built-in dimmable LED lighting

Features● ISO class 5 cleanliness*** (class 100, as-built****)of operating field● Ventilation is switchable for diagnostic imaging orfor surgery applications.

❻ Transport
Hybrid operating room with HEPA filter** unit
featuring built-in dimmable LED lighting

DAI-DAN REPORT 2014

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 the hybrid operating room, catheter
treatment* of an aortic aneurysm as well as
emergency procedures such as treatment of
acute aortic dissection and ruptured aortic
aneurysms can be addressed in a sterile
environment.

❺ Shipping inspection❼ Transplantation

15

105 hospitals

Dai-Dan has constructed 637 hospitals in total since 1989.

or to recover function lost to accident or disease

For hybrid operating rooms

Medical Institution

Dai-Dan’srecordhospitals* Medical care intended to promote the regeneration of cells, tissue and organs■ Flow of regenerative medicine

Feature Dai-Dan’s Future Challenges

Dai-Dan’s Initiatives*** “ISO class” expresses the degree of cleanliness of aparticular interior space as a numerical value.
**** At the time installation is completed* Detailed examination of cardiac function throughinsertion of a slim tube-like catheter and measurementof blood pressure and cardiac output of each
intracardiac site. Various other treatments can be
performed through this catheter.

** Abbreviation for High-Efficiency Particulate Air filter,
which generates purified air by removing fine particles
from the air.

DAI-DAN REPORT 201416

3. Strengthening our capabilities in energy andenvironmental projects in green industries
that are attracting investment

These rooms have been designed to protect patients withweakened immune systems due to, for example, hematopoietic
stem cell transplant (bone-marrow transplant) or acuteleukaemia, from pathogens. We have successfully createdsterile environments in rooms that appear almost identical totypical patient rooms. The rooms have been designed withconsideration given to comfort for patients and accessibility for
healthcare practitioners.
■ Vertical Laminar Flow immunocompromised

patient room

Features● These rooms are Sterile Room Administration Fee 1* facilities according to
the government’s revised fee schedule for medical services issued in 2012.
● The rooms are equipped with a vertical laminar flow system that makes
use of a screen mesh cleaning unit with built-in dimmable LED lighting.
This design is able to maintain positive pressure** compared to its
surrounding rooms and prevent the entrance of pathogens.

■ Diagram of Vertical Laminar Flow*

Screen mesh has been used for the vent. Built-in HEPA filters*** and dimmable LED lighting

Entrance/exit

Air conditioner

Clean unit

Access door

Screeningroom

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 ofpreventive measuresagainst hospital infections.

** A state in which pressure isUShigher than the surroundings*** Abbreviation for

Positive pressure ismaintained within the room.

Intake unit

High-Efficiency Particulate
Air filter, which generates
purified air by removing fineparticles from the air.

Intake unit

DTB-01: Sputum collection booth
The booth is designed to collect sputum from patients
infected with droplet nuclei infection (airborne infection),such as tuberculosis, without compromising the surrounding
environment.

■ Diagram of sputum collection booth
Bacteria released into the atmosphere due tocoughing does not remain static. Airflow fromthe ceiling pushes air through the booth.

● Prevents spread of the tuberculosis bacteria by
coughing patients.

For testing of mock-up experiments

Testing and analysis of supercritical CO2
recycling equipment

Exhaust fan
Removes bacteria.

● An after-clean mechanism* has been added to reducethe infection risk to healthcare workers from opening
and closing doors.

HEPA
filter* Fan operation is continued for a specific period of time

Intake vent

Negative pressure* is maintained
within the booth to ensure that nobacteria leaves the booth.

after sputum collection.

* A state in which pressure islower than the surroundings

Promoting R&D according to our three policies
The Technical Research Laboratory conducts R&D based on the following three policies in order to provide environments that are friendly
for people, objects and the Earth:

INF Series: Infection control unit
■ Infection control unit: INF-101■ Infection control unit: INF-201*❶ Primary research to ensure
quality
We conduct a wide range of primaryresearch. This includes the development of
new technologies to ensure the comfort andenergy efficiency of buildings,
pre-installation assessments using air-flow
simulations and experiments with ducts andpipes using mock-ups*.

Features● Does not require major renovation.
● Compact size that takes up little floor space● Quiet, producing less than 40 dB when the unit is running in low
power mode
● HEPA filters purify circulated and exhaust air.

Next-generation buildings are required to demonstrate increased
New Research Centre
energy efficiency by combining effective energy-saving technologies,
The R&D foundation of our next generation of equipment
energy generation technologies that maximise the use of renewableenergy, and energy storage technologies to accommodate load
leveling.
To meet the needs of our modern era of energy use, we openeda new research centre in April 2013 and positioned it as a platform
for next-generation R&D. This facility is advancing research anddevelopment in the areas of saving, generating and storing energy
and is enabling us to forge ahead with the development of thetechnologies required to build advanced systems for industrial
facilities.
By introducing advanced facilities such as a PV system, acogeneration system, a solar heat collection system and a heatstorage tank, we are using the entire building as an experimentalsite for testing these systems and gaining expertise. We intend tocontribute to society through academic conferences while
accumulating the basic data required to design the system mostsuitable for a particular
Research Centre
Experiment Building
Second Experiment Building
customer.

Airflow plate(air supply opening)

Clean air isexpelled.

● HEPA filters completely remove the bacteria passing
through the exhaust, and purify the air that leaves thebooth.

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

Initiatives of the Technical Research Laboratory

A focus of R&D

ExhaustFeatures

PrefilterIn the future, symbiosis with nature will become an increasingly important theme.
This initiative is, therefore, indispensable to reducing impacts on the global environment.

Feature Dai-Dan’s Future Challenges

BCC-P: Immunocompromised patient room

❷ Development of technologies thatenable the provision of greater
value to our customers
We advance timely development ofenvironmental impact reduction technology
and advanced environmental control systems
in the growth areas of pharmaceuticals,
healthcare, electronics, and green industries.

❸ Innovation that goes beyond
building services
We advance the application of new technologies incooperation with universities and businesses inother industries.
One of our initiatives is the development of cleaning
and recycling technology for air filters using
supercritical CO2. This is one of the fruits of theindustry-academia-public joint research initiative,
and the technology has been highly praised.

* Models used when testing exterior design and system functionality.
* The installation of INF-201 requires only the opening of existing windows anddoes not require installation of an exhaust duct.

17

DAI-DAN REPORT 2014

DAI-DAN REPORT 201418

Development of “Smart Energy” Technology
Electrical, air conditioning and plumbing facilities consume
energy to create comfortable environments, such as thosenecessary for production. In this era of “smart energy,”building facilities are required to play a role in generation,
storage and transmission of energy whenever necessary inaddition to increasing energy efficiency.
For example, innovative building services are requiredthat accommodate the characteristics and operation of eachparticular building. These include heat storage tanks
containing water warmed sufficiently with solar radiation for

use when needed at night as well as batteries that store
electricity generated by solar panels on holidays andweekends for using during weekdays.
Dai-Dan maximises the use of renewable and unusedenergy while promoting “smart energy” technology to
improve energy efficiency and reduce CO2 emissions frombuilding facilities. We are achieving this by optimallycombining generation, storage and efficiency technologies
with collection and distribution technologies.

Energy Efficiency

Power Generation & Storage

Collection & Distribution

Highlyenergy-efficientbuildings

Utilisation ofrenewable andunused energy

Efficient powertransmission
technologies

Energy generation and storage
technologies facilitate the use ofrenewable and unused energy.

Power transmission technology
ensures efficient energy collection
and distribution.

Comprehensive energy-efficienttechnologies are applied to air
conditioning and lighting fixtures,
which account for a large proportionof a building’s energy consumption.

Creating Value

Dai-Dan’sTechnology
To meet the increasingly diverse needs of ourcustomers and contribute to the emergence of asustainable society, we employ light, air and water
more organically and with greater functionality.
We create value with technology that is friendly toboth people and the planet.

Accommodating green industries

Technology to support “smart energy”
Our initiatives
Using geothermal heat to reduce energy
consumption
Outdoor air introduced into a building is cooled in summer
and heated in winter in an underground pit. This approach
reduces the amount of energy otherwise required to treat thisoutdoor air.
Used year-round, this system utilises heat from theground, which remains at an almost constant temperature. It
is a good example of how renewable energy can be
employed.

Energy-efficient illumination
To promote energy-efficient illumination, we conduct researchon methods of evaluating the perception of brightness.
Comfort is ensured by preventing the perception of a lack oflight, so we aim to increase energy efficiency by adding LED
lighting.
■ Evaluating the perception of brightness

Reducing Environmental Impact
We strive to use our technology to reduce environmental impact.

■ Temperature distribution inside the underground pit
Pit entrance

35.2 °C

Pit exit

25.9 °C
Temperature [°C]
20.0

19

23.0

26.0

DAI-DAN REPORT 2014

29.0

32.0

35.0

■ Representation of perception ofbrightness

［NB］
13
12
11
10
9
8
7
6
5
4
3
2
1

Advanced Environmental Control
Glaring

We have been developing environmental control technology
tailored to the specific purposes of different buildings.

Pleasant

For Better Facilities
We are developing technologies that allow our customers touse our industry leading products for years to come.

Dark

DAI-DAN REPORT 201420

Econo Spot : Spot air conditioning system used together with fine mist
Our “Econo Spot,” which employs evaporative cooling using
fine mist along with conventional spot air conditioning, is asystem for machinery plants and other factories that
efficiently improves the environment in the hot spots of awork area.

We strive to use our technology to reduce environmental impact.

Optismart : Heat source optimum operating support system
Optismart is a system that provides heat source system
operators with signals indicating the ideal time to turn on or shut
down a system’s various heat sources based on computer
simulations. This enables the heat source system operator tooperate the heat source equipment in a way that provides the
optimum combination of heat sources. Our Optismart system
also has a simulation function that enables calculation of
estimated annual operating costs of heat source equipment.

● Improved efficiency for large-scale heat source● Reduced environmental impact through energy efficient operation● Standardisation of operation based on objective conclusions● Optimised gas consumption level● Improved efficiency of operational management work

6:00

7:00

8:00

5:00

9:00 10:00 11:00 12:00

Heat pump
Thermal energy storage tank

● Flexible

Mist nozzle(cooling air)Spot air conditioning

An efficient, environmentally friendly system
Cooling sensation provided by nozzle
sprayed water mist and air
Reduced installation and running costs
Water mist is regulated by monitoring ofroom humidity and temperature
Can be easily relocated for repositioned
production lines

空調吹出口
Air
diffuser

A cooling sensation from air movement andcooling mist provides comfort!
Mist evaporative cooling for a work area
→Because the temperature setting of spot
air conditioning can be increased,
less energy is consumed.

Mist

Temperature ofwork area is loweredby 3 to 4 degrees.

Spot air conditioning(conventional system)

Econo Spot

6:00

7:00

8:00

9:00 10:00 11:00 12:00

Gas-driven chiller
Absorption-type chiller
Turbo-powered chiller 1

Gas-driven chiller
Absorption-type chiller
Turbo-powered chiller 1
Turbo-powered chiller 2● Low cost
● Safe and reliable

Water supply pipe

Produces
fine mist■ Operation calculated by Optismart system■ Conventional operations based on human judgment
5:00● Energy saving● Increased comfort

Air supply duct

Nozzle height:
3m

FeaturesFeatures■ Diagram of Econo Spot

Dai-Dan’s Technology

Reducing Environmental Impact

Turbo-powered chiller 2

Unnecessary
operation

Advanced Environmental Control

Heat pump
Thermal energy storage tank

We have been developing environmental control technology tailored to the specific purposes of different buildings.

Flow Smart: Flow control system for pumps in refrigeration units
Flow Smart is a system that reduces thecost of operating a facility by introducing
inverter control of pumps for refrigeration
units. Conventionally, these pumps havebeen operated at a constant speed. Flow
Smart regulates so that no airflow goes
through the bypass unless it is required
to run the air conditioning system.
The introduction of Flow Smartenables a 60% reduction in the energy
required to run the pump in refrigeration
units. Through this technology, Dai-Dan
provides comfortable living and working
spaces and also contributes to theconservation of the environment.

iRack System: The optimum environment for animal experiments■ Diagram of Flow Smart“0”

Conventional system

Flow Smart system

bypassairflow

Air conditioner

Air conditioner
Ｐ

INV

Bypass airflow

Constant
flow rate

Refrigeration unit

Ｆ

Secondary pump+0-

Secondary pump
INV

Airflow gauge
Ｆ

Variable
flow rate INV

Cooling
tower

Constant flow rate

Refrigeration
unit

Variable
flow rate INV

Cooling
tower
Flow Smartcontroller

Animal experiments are an inherent part of developing
medical products and healthcare technologies. Animal
enclosures for laboratory animals are predisposed toaccumulation of allergens* and objectionable odours, and are
at risk of microbial contamination. Therefore, environmental
control of animal enclosures has always been an issue.
Dai-Dan has always invested substantial effort in its
laboratory animal housing and has developed a number ofdifferent housing options in the interest of improving the
housing environments, reducing energy consumption and■ iRack System■ Diagram of animal enclosure

ensuring animal welfare. The iRack System has improved
operability while maintaining the ventilation efficiency of ourprevious laboratory animal housing designs, creating
favourable environments for both laboratory animals andoperators. Ventilating each enclosure prevents allergens,objectionable odours and pathogens from spreading
throughout the entire room or enclosure. This ventilation canalso be carried out with reduced airflow.
* Substances that cause allergies

Features● Enclosure specific ventilation system● Creates advanced one-way airflow.

Features● Bypass airflow control technology
developed by Dai-Dan● Reduces energy consumption of water andcoolant pumps in refrigeration units● High energy saving performance, proven bystrong demand

Benefits of introducing Flow Smart
Application: Semiconductor component plant
Heat source configuration:
Absorption-type refrigerator 210 USRT × 4
Cold water pump 11 kW × 4
Coolant pump 22 kW × 4
Operating time: 24 hours/day year-round

Energy saving benefit

Approximately

60%

21

DAI-DAN REPORT 2014

[Power consumption (MWh)]700● No shielding allows ease of use.
Approximately

60%
reduction

500● Reduced frequency of bedding*replacement● Easy maintenance

300
100
0

● Greater control of temperature andhumidity within the enclosure* Wooden or paper chips placed on the floor
Beforeintroduction

Afterintroductionof the enclosure

Reduced power consumption:

Approximately 390 MWh/year

Reduced CO2 emissions:

Approximately 200 tonnes CO2/year* Output rate: 0.518 kg-CO2/kWh

DAI-DAN REPORT 201422

At pharmaceutical manufacturing plants, regular integrity
validation is done one to two times each year. Clean booths,
which are used for purposes such as bottling sterile
products, require HEPA filter* leak tests** during regular
integrity validations. HEPA filters are installed in the ceiling ofclean booths, and leak tests are conducted above the
manufacturing device installed within the booth.
To resolve a number of issues experienced in the courseof leak tests, Dai-Dan has developed an automatedscanning device for HEPA filter leak tests, which has
automated the operation of the probe***.
*Abbreviation for High-Efficiency Particulate Air filter, which generates
purified air by removing fine particles from the air.
** Tests to confirm that the filters are working at the required particle
collection efficiency rate.
*** A funnel shaped device used to collect air, in order to detect small particles.
**** A particle generator

Conventional leak test

HEPA filtersat a constant❹ Measure
speed (5 cm/s).

Fanscreen❸ Remove
mesh.

Manufacturing
equipment

PAO
generator****Measure at a constant

HEPA filters

Fan

We are developing technologies that allow our customers to use our industry leading products for years to come.

Scan unit

Particle counterbooth❶ Removepanel.

Screen mesh

Particle counterNot
screen③ Removerequiredmesh.

❷ Set up stand.

Probe

Not Remove booth① panel.
required

Manufacturing
equipment

Clean boothNot② Set up stand.
required

Clean booth• Low risk of booth contamination andbreakage• Time required for testing is reduced.
• Low testing costs• Use of probe does not require specialised
skills.

Benefits• High risk of booth contamination andbreakage• Testing takes a significant amount of time.
• High testing costs• Use of probe requires specialised skills

IssuesAutomating step four means that steps
one to three are no longer necessary.

Open Degasifier: Prevents corrosion of copper hot water supply pipes
UACJ Corporation (formerly Sumitomo Light Metal Industries,Ltd.) and Dai-Dan jointly developed an open degasifier toreduce the corrosion of central copper hot water supply
pipes*.
The device, which is connected to the copper hot watersupply pipe, atomises the hot water internally in order toextract and discharge any residual chlorine, dissolved● Reduces residual chlorine, dissolved
oxygen and free carbonate.
● Enables ample hot water pressure andvolume.
● Easy installation● Daily maintenance is not required.

23

DAI-DAN REPORT 2014of ducts and HEPA filters through innovative ventilation outlet
design and installation methods. Our virtual duct clean room
(VD-CR) system has often been installed in ISO class 6*(class 1,000) to ISO class 8 (class 100,000) cleanrooms.
* Numerical value indicating the cleanliness class of a particular space■ Example of a VD-CR cleanroom■ Specially designed ventilation

outlets used by the VD-CR system

The ventilation outlets have been
meticulously designed to extend
the distance that the air travels.

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

Open degasifier
Exhaust pipe

■ Open degasifier
Dissolved
gas

Boiler andhot water tankＰ

Air supply pipe

Virtual Duct Clean Room (VD-CR) System: Making cleanrooms duct-free
Cleanrooms at sites such as electronic device factories
require many ventilation outlets to maintain a high level of air
purity and precise temperature as well as humidity control.
This results in a greater number of ducts and HEPA filters,
and subsequently increases costs.
Dai-Dan has developed a system that reduces the number

oxygen, free carbonate and other corrosive elements it might
contain. Atomising the hot water increases the surface areaof water in contact with air, increasing the efficiency of
extraction.

■ Diagram of open degasifier

Features■ Hot water before and after degassing● Enables superior temperature andpurity control at low cost.
● The system creates high-speed pureairflow along the ceiling, which extends
the distance that the airflow vented
from air conditioning equipment travels,
resulting in a duct-free cleanroom.
● Contributes to the construction andprevalence of quick-to-build andcost-efficient cleanrooms.

Using the environmental control
technology that remains our
specialty, we conduct innovative
research on plant cultivation
technologies involving facilities thatutilise artificial light.

For Better Facilities

PAO
generator

Automated speed (5 cm/s).

Steps one to four are completed manually.

Features■ Experimental plant cultivation room at our new Research Centre

In recent years, interest in methods of artificially controllingthe interior environment (including light, temperature,humidity, CO2 levels, and density of culture medium) of plantcultivation facilities has been increasing among those who
regularly supply farm products to market. Utilising theexpertise gained by our work on comfortable building
environments, we are focused on facility construction andresearch into plant cultivation technology.

Leak test using EZ-Scan

Probe

Screen mesh

Research on plant cultivation facilities: Environmental control technology

Dai-Dan’s Technology

Increasing the efficiency of regular validation at pharmaceutical manufacturing plants

EZ-Scan: Automated scanning device for HEPA filter leak test

Hot water
supply pipeＰ

BeforeAfter

Hot water return pipe

Water supply pipe

Front

Side

Chepas: Clean Humidification Element Passing Air System
Bacteria and mold are not permitted in medical and foodprocessing facilities. Conventionally, humidification systems
use steam to suppress outbreaks of bacteria andobjectionable odours in air conditioning equipment during
the winter heating season. Recently, efforts have been madeto avoid steam humidification because of its highconsumption of fossil fuels by replacing such systems withthe more popular energy-efficient vapor humidification
systems.
Chepas, our Clean Humidification Element Passing Air
System, controls the breeding of bacteria by periodicallyadding slightly acidic electrolytic water — a safe, sterilisingsolution commonly used in the medical and food processing
sectors — into the humidifiers of air conditioning systems.
■ Diagram of Chepas operation
Electrolytic
water unit

Tank

Water
supplyPump

Electrolytic water

Water

Fresh air/
Return air

Airconditioner

Vaporisinghumidifier

Features● Clean air is supplied
to rooms.
● Controls outbreaksof bacteria andobjectionableodours in the mainunits and drainpans of humidifiers.

DAI-DAN REPORT 201424

COGENERATIONAWARD 2013
Consumer Use Division

Winner of the Cogeneration Award 2013

Our proprietary technology is recognised as an industry leader.
Our advanced CGS* gas engine leads the industry
in energy efficiency.
The Advanced Cogeneration and Energy Utilization Center JAPAN (ACEJ) recently
presented the “Cogeneration Award for Excellence” to Dai-Dan Co., Ltd.; Ikeda Air
Conditioning Co., Ltd.; Hokkaido Gas Co., Ltd.; and Energy Solution Co., Ltd. This
joint award in the Consumer Use Division recognised the introduction of a CGS aspart of the ESCO services provided to Sapporo Medical University.
Encouraged by this award
and our development of newtechnology, we will continue towork on energy efficiency as asolution to global environment
issues.

Award for
Excellence

What is the Cogeneration
Award?
The Cogeneration Award of the ACEJ
was established in 2012 in order topromote the adoption of CGS and toraise public awareness of its effectiveness by recognisingcogeneration systems exhibiting superior innovation,
leadership, advanced technology and energy efficiency.
Before awarding the Cogeneration Award, ACEJ conducts areview at a screening meeting to select the respective
recipients of the Chairman’s Award, the Award for Excellence
and the Special Award in three divisions: consumer use,
industrial sector and technical development. The award
ceremony was held on February 12, 2014, at the ACEJ
symposium of the Tokyo International Forum.

* Abbreviation for “cogeneration system,” an innovation that generates and supplies electricity and heat from gas or other heat source

System outline

CGS gas engine: 930 kW × 2 units

The CGS was introduced as the core of our ESCO energy-efficiency services.
Because Sapporo Medical University serves as a key facility in a disaster, theBOS* specifications have been adopted so that power can be supplied to thisessential facility during a lengthy blackout and hospital services can be
maintained.
In terms of energy efficiency, a CGS has an overall efficiency of 76.9% with a
primary energy reduction rate of 20.9%. The system achieves these levels by using
the low-temperature exhaust heat of the intercooler that is normally wasted and by
fully utilising exhaust heat through plumbing work that allows for priority use of theexhaust heat collected from the CGS.
This system boasts other innovations as well: introduction of the CGS has
reduced peak electricity consumption by one-third; outdoor installation of the
1 MW-class CGS was a rare innovation for a cold region; and safety measures were
implemented through system interconnection of the CGS with a spot network**.

930 kW × 2 units

Ｇ

RF

4F

distribution throughout the campus.

B2F
Spot network
interconnection● Water from a high-temperature water jacket is used for cooling in summer byIntercooler Water jacket(low-temperature (high-temperaturewater)
water)

Exhaustgas boiler

1.190 MJ/hfrom 2 units● The generated electricity is supplied through an interconnected spot network for● An exhaust gas boiler generates steam.

CGS Gas Engine

3.066 MJ/hfrom 2 units
Heat exchanger
for heating

SteamboilerWell water
storagemeans of an absorption-type chiller; in the winter, this water is used for heatingby means of a heat exchanger.
● Low-temperature intercooler water is used for preheating boilers and to preheat
make-up water for the hot water supply.

Absorptiontype chiller
155 USRT
from 2 units

Make-up Steamwater

Exceeding customer expectations
with knowledge, experienceand autonomy

Dai-Dan’s
Practical
Competence
The building facilities we deal with are mainly dissimilar,
which requires us to employ flexibility and creativity whenchallenged with accommodating 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 ourcustomers by applying the knowledge and experience wehave gained throughout our history. Moreover, since ourestablishment, we have exhibited the ability to provide
design solutions and installation expertise with inherent
skill. This is Dai-Dan’s practical competence in the field.

0.49 t/h × 2 units* Abbreviation for “blackout start,” a feature that enables a CGS to start from a battery during a blackout of the commercial power supply, making it possible
for a power system to start operating autonomously.

** A “spot network” for receiving power describes multiple redundant transformers and distribution lines running from the power company and operated inparallel. This power transmission method enables power to be supplied on the remaining lines even if one line is cut.

Industry Exhibitions

Our products and systems have been on display at various exhibitions in order to publicise Dai-Dan’s technology.

BATTERY JAPAN 2014
The 5th International
Rechargeable Battery Expo
PeriodFebruary 26–28, 2014

Venue

Tokyo Big Sight

Exhibition details• Rechargeable battery initiative using industry-focused technology• Energy-efficient dehumidification system• Clean & Dry Lab, New Research Centre

25

DAI-DAN REPORT 2014

INTERPHEX JAPAN2014

The 27th International
Pharmaceutical R&D and
Manufacturing Expo & Conference
PeriodGreater Ability to Provide Design
Solutions and Installation Expertise
Ongoing Improvement ofSite Management Methods

July 2–4, 2014

Venue

Tokyo Big Sight

Exhibition details• Barrier Smart Series chamber pressure control system• iRack System laboratory animal housing system• EZ-Scan automated scanning device for HEPA filter leak test

Application of the Meister System andEstablishment of Partnerships
with our Subcontractors across Japan
DAI-DAN REPORT 201426

Sharing and utilising the enhanced value generated by our on-site expertise● Case study presentations to spread expertise and integrity throughout Dai-Dan
In November 2013 we held the Sixth Case Study Presentation.
This event gives our employees an opportunity to present theachievements they have made through expertise and integrity inthe course of their day-to-day work. Awards are also presented.
The presentations are broadcast live via our teleconference
system to allow all employees across the country to participate.
This year, 182 case studies addressed topics such as
improvement of conventional installation methods; efficiency
improvements through adoption of new installation methods
and equipment; energy-efficient and environment-friendly
design; learning from past shortcomings; cost reduction; andexamples of improved safety and quality management
methods.
Among the 182 case studies, 59 passed the firstassessment, with 27 passing the second assessment to receive
the following awards: one Chairman’s Award, two President’sAwards, two Head of Technical Construction Division Awards,
five Outstanding Performance Awards, ten Good Effort Awards
and seven Encouragement Awards (resulting in 22 awards togroups and five awards to individuals). The award recipientsdelivered presentations on their respective case studies andwere presented with award certificates.
The Chairman’s Award, the highest award, went to the Tokyo
Head Office’s case study on efficient installation of a lightweightodour roof vent made with new materials. The case studies
recognised at the presentation are shared at each office andsite and utilised as excellent achievements suitable for internal
training purposes. Through this initiative, we expect to enhance
our employees’ skills and improve Dai-Dan’s practicalcompetence in the field as well as our safety management andquality control.

Case study in progress

Considering all the excellent cases of installation efficiency improvements, design improvements, cost
reductions and management method improvements throughout Japan, I feel extremely honored to havebeen selected for the Chairman’s Award at the Sixth Case Study Presentation.
I received the award for my case study presentation demonstrating installation efficiency and hazard
reductions as well as the ability to reduce cost by using lightweight pipe materials.
I was fortunate to have received this award thanks to our entire group’s commitment to achieving
improvements in installation and safety as well as reduced cost by reducing weight with no loss ofquality. This was demonstrated through our efforts under the guidance of our supervisor, other superiors
and manufacturers.
I am determined to ensure even higher quality and efficiency using Dai-Dan’s new technologies andideas to meet customer requirements in the future.

● Technical Reports
Our technology is supported by the results of a combination of ingenuity in the field,
hardship, failures and successes. When an individual engineer writes andillustrates a document of his or her experiences, a sense of commonality isachieved and the personal experience contributes to our company’s technicalcapabilities. We compile such documents in “Technical Reports,” an in-houseedition of the “DAI-DAN Technical Current News” (p. 50).
The expertise and ingenuity revealed in the case study presentations have been
incorporated into these technical reports, which are made available to allengineers.

DAI-DAN REPORT 2014

The Technology Information Hour is held via our teleconference
system to provide opportunities for sales, design and engineering
staff to share information on ever-advancing technology. Topics
include the latest technology information, quality management,
safety measures, and energy-saving technology. The Technology
Information Hour was started four-and-a-half years ago; as ofthis writing, 118 sessions have been broadcast to a total of
9,984 participants.
Topic selection and session leadership are undertaken byengineering staff of the Technical Development Division, theTechnical Research Laboratory and the Industrial Facilities
Department. In addition, external lecturers present some talks inthese sessions, and study group meetings are held at each office.
Sessions are recorded and distributed to those who are unable toattend the sessions due to work-related reasons, in order toprovide greater opportunities for self-education.

The Technology Information Hour,
broadcast via our teleconference system

Major topics of sessions held
throughout the previous year
● Causes of and countermeasures for quality incidents

and industrial accidents● Energy consumption visualisation system withdemand controller● Subsidies for energy conservation● Promoting the use of IT in the field● Study meeting for automated control● Trends in LED usage● Community TV reception technology● Outline and energy-efficiency benefits of facilities

used in the new Research Centre of the TechnicalResearch Laboratory● Introduction to the Clean & Dry Lab of the TechnicalResearch Laboratory’s new Research Centre● Using supercritical technologies● Basic introduction to plans for medical productmanufacturing facilities● Technical seminar on top runner secondary standard
and transformer deterioration● Infection control during hospital renovations andextensions

Training engineers and passing on skills applicable to work in the field● Launch of a new personnel system intended to improve the treatment of field engineers

Award recipients

Message from the winner of the Chairman’s Award

27● Technology Information Hour

Dai-Dan’s Practical CompetenceGreater Ability to Provide Design Solutions
and Installation Expertise

Akihisa Oshima

Engineering Division 2
Engineering Department 4
Tokyo Head Office

We launched a new personnel system in April 2014 intended
to support appropriate evaluation and job promotion ofengineers engaged in installation in the field.
In our previous system, only employees in the
management division could be promoted to the position ofsection manager or department manager. Therefore, forengineers specialising in on-site work, we established thepositions of Project Master (PM) and Grand Project Master(GPM), which are equivalent to the position of section
manager or department manager in the management
division.
These engineers can choose the desired approach fromeither the management section or field specialisation; as aresult, a promotion route (PM or GPM) equivalent to that ofsection manager or department manager in the
management division is provided even for those with field

specialisation.
Installation experience is evaluated according to various
applications (whether medical, industrial or public facilities);
a special allowance is paid when the PM and GPM inrecognition of their achievement, and a special promotion
may be awarded.
As a design and installation company, Dai-Dan needs tocultivate outstanding engineers capable of performing
installations in the field and willing to pass on their skills. We
are taking steps to enhance their technical skills by
accurately evaluating skilled engineers capable of working
on-site and increasing their motivation.
With this new personnel system, we are helping to ensurethat the skills of outstanding engineers in charge of
installation will be passed on.

Flexible deployment and capitalisation of skilled personnel throughunderstanding of specialised installation skills● Engineer Ranking Chart according to area of specialisation (Committee for Living in the New Era)
Our greatest asset, our employees, must demonstrate theirabilities to the maximum as they meet the variety of demands
that arise with advanced building facilities while continuing toprovide a level of quality that exceeds customer expectations.
Our Engineer Ranking Chart, organised by area ofspecialisation, does not rank our engineers in any way, but
accurately determines the areas with which an individual isfamiliar or has installation experience. Its aim is to place theright engineer in the right post in order to create the ideal
installation system.
Our Committee for Living in the New Era, which reviews the

deployment of personnel to avoid stereotyping, prepared theEngineer Ranking Chart in December 2011 and updated it
during fiscal 2014 according to the area of specialisation ofcurrent technical employees (810 in installation divisions and
192 in development design divisions).
We are currently using this resource mainly for the purposeof providing engineer support across office boundaries, andwe believe that its adoption across a wider range ofapplications, including for systematic staff assignment, will
enable us to pass on skills to future employees.

DAI-DAN REPORT 201428

Dai-Dan is involved in providing electricity, air conditioning
and sanitation, and our engineers are diverse in terms of
their learning as well as their gender. This diversity
generates value created by “outside the box” thinking fusedwith a flexible approach.

While the strong showing of Dai-Dan’s female employees
is attracting attention, many are active on our front lines in
the field. We intend to further strengthen female recruitmentin the future in addition to revitalising our organisation bycreating an appealing work environment for women.

Skills of our female employees in the field
While studying design at university, I became interested in equipment
design and was determined to join this industry. I chose Dai-Dan as
my preferred place of employment because of the humanity andwarmth demonstrated by their recruiters.
I am now working on installation management of air conditioning.
Among the properties I have been involved in so far, the Seibo
Hospital in Shinjuku-ku is particularly impressive. This obstetrics andgynecology department of this hospital boasts an outstanding
reputation in Tokyo. It operates 24 hours per day, and its many
patients are pregnant women and children; I found this aspect of theinstallation required particular care, so I made sure the vehicle
entrances and exits as well as the carry-in always put safety first. I alsosought to minimise noise and vibration.
The most impressive aspect was the installation of air conditioning
inside the hospital’s Catholic cathedral. Its high ceiling made it difficult
to provide effective air conditioning with ventilation from the top. Witha floor-based system, however, churchgoers would feel cold as
chilled air hit their feet directly. So, I devised a system that delivers
cool air from the gap in the rear of the seatback.

After we performed repeated trial and error to fine-tune thedirection of the airflow and the shape of the chair to provide effective
air conditioning, the churchgoers, particularly the older ones,
commented favorably by calling it “very comfortable.” It seemed that
my ideas and attention to detail as an engineer were recognised. As awoman, I still remember how happy I was to have overcome theprevious hardships.
Women still represent a minority inthis industry, but if I can be recognised
as an engineer and accomplish a jobthat benefits society, I am confident I cangive a supportive push to someone who
is hesitating because of preconceptions
before stepping into this industry.

Continuously improving health and safety initiatives with the goal oferadicating industrial accidents● Workplace health and safety management system (COHSMS* compliant)with the necessary revisions to accommodate the progress ofand changes in the project.
Moreover, the offices and headquarters also regularly
conduct health and safety audits and inspections to investigate
and determine if the heath and safety management plan isbeing followed. These initiatives are also expected to maintainthe system and encourage its establishment, and promote therevision and improvement of the system.
Ensuring health and safety is clearly one of our social
obligations. We are striving to earn the longstanding trust ofsociety, and we continue to improve and enhance our healthand safety initiatives under our workplace health and safety
management system.

Led by the executive management, Dai-Dan places thehighest priority on the safety and health of our employees andimplements health and safety initiatives involving sites**,
worksites and subcontractors. We endeavor to remove or
reduce potential hazards and minimise the harm of workplace
accidents as we strive to maintain and enhance health;promote the creation of more comfortable work environments;
and ultimately improve health and safety standards.
More specifically, each year our headquarters formulatesa Company-wide Health and Safety Management Plan. The
plan is based on Our Policy for Health and Safety developedby our president and incorporates quantitative and priority
goals after they are revised through an assessment of past
results. Under this plan, each office then formulates andimplements an Office Health and Safety Management Plan
that includes their respective priority goals. Each worksite
also develops an Office Health and Safety Management Planand Installation Management Targets (safety, quality andenvironmental) outlining specific hazardous and harmful
factors with respect to each project. They are implemented

Dai-Dan’s Practical Competence

Creating value by providing solutions with a flexible approach* The abbreviation for the Construction Occupational Health and Safety

Management System, which is based on the Guidelines on Occupational
Health and Safety Management Systems announced by the Minister of
Health, Labour and Welfare. COHSMS outlines the health and safety
management system required to accommodate the specific characteristicsof the construction industry.

** Facilities such as our head offices and branches

Tomomi Matsuda

Engineering Division 1
Engineering Department 2
Tokyo Head Office

Our policies for Health and Safety
Health and Safety Philosophy

Ongoing Improvement of Site Management Methods
Using information technology to increase efficiency of fieldwork andimprove installation quality“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, with DAI-DAN’s top management
and employees working together to enhance the safety and comfortable working environment.

Action Statements❶ We utilise “Health and Safety Management Systems” to eradicate all industrial accidents. We endeavor to eliminate dangers from potential
hazards and harmful characteristics in all work activities and continuously improve and enhance the health and safety of our workplace.
❷ We promote cooperation among offices, work-sites, associate companies, with good communication and participation in health and safety
activities, and defining each role independently.
❸ We observe work-safety and health-related laws including our company’s internal health & safety management systems regulations for theenhancement 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.

● Company-wide adoption of tablets
In April 2014, we started using tablets in an effort to increase theefficiency of fieldwork through the company-wide application of
information technology.
By using the cloud* to store information, we can shareinstallation plans, installation procedures and specifications,and other technical data. This enables us to continue improving
our work efficiency as well as the quality of our installations andother aspects.
Drawings and meeting documents that were conventionallyprinted on paper are now digitised for access and editing on atablet running dedicated application software. This approach
can also be considered an environmental initiative.
We also introduced our mobile device management tool(MDM), which can remotely limit use of the tablet or delete datain the tablet in order to reduce risk of data leakage andunauthorised use due to theft or loss. In this way we are
maintaining strict security.
When we conducted a questionnaire in September 2014,
77% of the target employees using a tablet replied that they
were satisfied. This survey also enabled us to confirm the29

DAI-DAN REPORT 2014

challenges at the same time.
We intend to address ways to further increase work efficiency
and improve installation quality by utilising tablets in moreinnovative ways.
■ Questionnaire on the state of tablet usage● Implementation period: September 1–5, 2014
● Number of target users: 1,318● Respondents: 1,146 (86.9%)

Target0.7

Result0.6

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

0.54

0.52
0.5

0.3

* A web-based service bywhich data such as email orsoftware in one’s own PC isaccessible through tablets
and other terminals via an
Internet connection

Total work hours × 1,000,000

0.45* Severity rate (severity of accidents)
Workdays lost
Total work hours × 1,000

0.30
0.23

0.26

0.25

0.1

0.02 0.03
Frequency
rate

Severityrate

FY2009

0.23

0.20

0.2

0.0

* Frequency rate (frequency ofworkplace accidents)

0.65

0.4

■ Illustration of cloud service

Cloud service

Safety results

0.02 0.02
Frequency
rate

Severityrate

FY20100.23

0.02
Frequency
rate

Severityrate

FY2011

0.02
Frequency
rate

Severityrate

FY2012

0.08

0.06

0.02
Frequency
rate

Severityrate

FY2013

DAI-DAN REPORT 201430

The number of industrial accidents, suspensions ofbusiness, and lost workdays increased during fiscal 2013.
Notable accidents included those involving falling fromheight, disregard of the rules for use of portable scaffoldings,
and accidents involving entanglement in rotating tools.
In response, we implemented a review of the rules for useof stepladders and scaffold ladders; revised the process
specifications for rotating electric tools; and conductedongoing training. In order to reduce human error, we are
implementing the practice of “finger-pointing and calling” aswell as risk identification for each worker in addition toproviding health and safety training.

TargetReduction of workplace accidents

Priority items• Eradication of accidents involving falls• Prevention of human error and risky behaviour• Thorough health and safety training forless-experienced workers● Industrial Injury Prevention Rally
We hold Industrial Injury Prevention Rallies at 11 locations
across Japan during National Health and Safety Week inorder to raise awareness for health and safety.
Approximately 2,600 people participated in the 2014
rallies, including our Chairman, President, executive officers,
employees and staff members of our subcontractors.
Worksites, subcontractors and individuals who completed

outstanding initiatives for health and safety were presented
with certificates.
Each venue offered a number of creative programmes on
the day, including presentations for health and safety
initiatives and skits designed to raise health and safety
awareness.

Application 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
We began implementing the Dai-Dan Meister System in 2011
with the objective of providing excellent foremen for our
subcontractors to support out ultimate goals of improving
work quality and ensuring safe and efficient field operations.
Installation work — particularly in the areas of electronic
devices, biotechnology and other leading-edge technologies
on which we plan to focus our resources — requires a highdegree of expertise in order to maintain high quality.
In October 2012, we revised the regulations in order totrain more excellent foremen and high-level foremen under

Meister Approval Ceremony
The 3rd Meister Approval Ceremony was held in December
2013. 685 foremen serving at Dai-Dan sites were designatedhigh-level foremen, 63 of whom were named excellent
foremen following thorough assessments by each office.
Furthermore, the four best foremen were certified as
Meisters. Each Meister was presented with a certificate,
Meister helmet, testimonial shield and a cash reward.
So far, a total of 15 Meisters have been approved: fourelectrical workers, six plumbers, four duct installers, and one
refrigerant piper by trade.

Fiscal 2014 Industrial Injury Prevention Rally

Fiscal 2013 Meister
Approval Ceremony● Safety inspections and health and safety education
We undertake safety inspections and health and safety education through cooperation with the Health and Safety Association of
our subcontractors in our effort to enhance health and safety standards.

Routine on-site inspection

Message from a Meister
Last year, I was awarded the title of Dai-Dan Meister.
As only several people are chosen nationwide every year
for this title, I felt somewhat abashed, wondering whether I
was worthy of such a weighty title. I also felt a sense ofpressure, as I now had to live up to this stringent work
standard.
As I diligently carry out my day-to-day work, I want tostrengthen our teamwork so that we can maintain the safety
and quality of our work while also meeting our deadlines atthe same time.
I check the work drawings with a supervisor and allocate
workers according to their competency, whether they areveterans, those amassing experience, or recent hires. I also
coordinate other workers and any tasks that take place
simultaneously. I monitor the progress of the work, and if any
delays arise, I discuss solutions byaddressing the cause with otherworkers. Through such repetition, I
intend to implement ideas that we cancarry forward and that we must do inorder to complete our work as a teamwith common purpose.

Hirokazu Murase

TOUMEI SETUBI Co., Ltd.

● Engaging with subcontractors in● Dai-Dan’s network of subcontractors

By developing strong partnerships with Dai-Gen Kai and the
Health and Safety Cooperation Society (p. 47), organisations
comprising Dai-Dan subcontractors, we are safely providing
building installation services at appropriate
cost while maintaining high quality. The
results of the annual activities carried out
by the sub-groups in areas of specialty of
Dai-Gen Kai are compiled in the Sectional
Committees Activity Report. It harmonises
the results of the activities of each district
across the country and publicises them.

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 havetaken steps to establish a nationwide network of subcontractorsthat extends beyond the scope of individual offices. It iscapable of dispatching workers from around the country to
offices where a lack of workers is expected. In future, we will
effectively utilise this network to secure an installation system at
each site; at the same time, we will increase opportunities toimprove the skills of our subcontractors. We will continue toprovide our customers with safe and high-quality building
installation services.

sectional committee activities

Morning meeting

our Meister System. One of the revisions entails providing
subsidies for acquisition of higher certifications such as
registered essential technicians. In addition, we decided to
pay cash rewards for Meisters and excellent foremen for
their fieldwork.
In July 2014, the first commendation under these revised
regulations was awarded. We commended 65 certified
foremen from 47 companies as well as 72 Meisters andexcellent foremen.

Dai-Dan’s Practical Competence● Initiatives of fiscal 2013 and their results

Sectional Committees
Activity Report

31

DAI-DAN REPORT 2014

DAI-DAN REPORT 201432

FY2013 CSR Performance and FY2014 Targets
In order to enable continued improvement of our CSR activities, we set targets for each fiscal year and complete the PDCA cycle accordingly.
In this report, the FY2013 performance and the FY2014 targets are summarised according to the seven core subjects of ISO 26000*.

Self evaluation

Target achieved

Target not achieved

Fair Business
Practices

Community
involvement anddevelopment

ConsumerissuesFair operating
practicesThe
environment

FY2014 targets

Labourpractices

Self
evaluation

Items

Target/Task

Corporate governance

Build and maintain a system to ensureethical execution of operations

Corporate law internal control system functioned appropriately

Strengthen corporate governance to meet changes in social trends

35

Continue to raise awareness forcompliance• Compliance News was published semiannually to raiseawareness• Awareness was raised through position-specific training

Strengthen the compliance system (compliance with the Anti-Monopoly
Act and other relevant laws and regulations) and promote soundcorporate management

36

Risk management(Improving the business Formulation of a business continuity
plan (BCP)
environment)• Protective equipment was distributed to employees• Emergency drills were conducted• Training was strengthened to enhance safety review services(by email)• Distribute protective equipment to employees• Conduct emergency drills• Strengthen training for safety confirmation services (by email)(Target of 100% response rate)• Formulate a business continuity plan encompassing information
technology (IT-BCP)

39

Disclosure (Proactive andAppropriate and timely disclosure oftimely disclosure of information) information

Complied with laws and regulations and swiftly disclosed
information

Proactively disclose information

40

Compliance(Legal compliance andcorporate ethics)

FY2013 performance

Human rights

Subject

Organisational
governanceCore subjects of ISO 26000
Page

Number of solutions that leverage Dai-Dan
Propose technology adopted
Plan
CO2 emission reduction through design solutions
DesignCO2 emission reduction through adopted solutions

Environmental
Contribution

Environmental
management system

Achieve environmental management
system plan targets* Refer to page 42 for FY2013 environmental
targets and results.

Installation

Promoted sustainable procurement
Improved recycling rate of industrial waste
Adopted laminate ducts
Removed thermal insulation of drainpipes

Achieve environmental management system plan targets* Refer to page 42 for FY2014 environmental targets.

41

Office Energy consumption
initiatives Copy paper usage
Introduced hybrid vehicles

Meeting
Customer
Expectations

Quality management
systemAchieve quality management system
plan targets

Achieve quality management system plan targets

45

Initiatives with
subcontractors• Maintained quality assurance in the field• Increased technical expertise of engineers and passed onthese skills• Reduced quality issues

Continue the activities of the sectional
committee

Implemented the activities of the sectional committee

Continue the activities of the previous year

47

Respect for human rights

Continue initiatives to raise awarenessof human rights

Raised awareness through new employee training session

Continue initiatives to raise awareness of human rights

Introduce a support system for young
employees

Continued Dai-Dan Mentor System and strengthened follow-up
of new employees

Confirm and review the effectiveness of the support system for young
employees

Strengthen technical expertise• Published the DAI-DAN Technical Current News• Continued skill development through the CPD system

Continue to strengthen technical expertise

Increased the percentage of employees working long hours
engaging in face-to-face consultations with a doctor to 88.0%

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

Percentage of employees working long hours (0.4%)

Decrease the percentage of employees working long hours to below 1%

Initiatives to address mental healthissues• Conducted mental health seminars• Introduced the seminar into the curriculum for new employee
training and position-specific training• Conducted stress checks for all employees

Continue the activities of the previous year

Contribution to the constructionindustry• Delivered two lectures at the nationwide meeting of
the Institute of Electrical Installation Engineers of Japan• Delivered one lecture at the Technology Promotion Award presentation hosted
by the Society of Heating, Air-Conditioning and Sanitary Engineers of Japan

Continue the activities of the previous year

54

Social contribution initiatives Targeted number of activities: more than 400 Dai-Dan’s offices across Japan voluntarily conducted 340 activities

Continue the activities of the previous year

55

Human resource
development

Valuing Our
Employees
Working environment
for employees

Meeting Local
Expectations

Dai-Dan’s
Practical
Competence

Dissemination oftechnical information toexternal parties

Follow up on employees working long
hours

48

51

27
28

Held the Case Study Presentation

Continue the activities of the previous year

Presented activity outcomes via teleconferenceContinue the activities of the previous year

Achieve workplace health and safety
Workplace health andsafety management system management system plan targets• Work-related accidents increased relative to the previous fiscal year
• Safety results (frequency and severity rates)

Achieve workplace health and safety management system plan targets

30

Partnerships with
subcontractors

3rd annual Dai-Dan Meister Approval Ceremony held

Improve and entrench the Dai-Dan Meister System

32

Sharing of technicalinformation

Share information to strengthen
technical expertise and practicalcompetence

Introduce the Dai-Dan Meister System* A guide on how businesses can operate in a socially responsible way

33

DAI-DAN REPORT 2014

DAI-DAN REPORT 201434

Fair Business
Practices● Overview of our corporate governance system
Dai-Dan maintains a corporate governance system structured with a Board of Directors, Board of Auditors and Accounting
Auditors. The objective of the system is to ensure appropriate and efficient management by maintaining discrete decision-making,auditing and administrative functions, thereby enabling swift and appropriate decision-making and implementation.
Board of Directors

Board of Auditors

The board meets once a month and calls special meetings asnecessary. The board not only makes decisions on importantmatters related to corporate management, including the
subjects discussed in Executive Committee meetings, but also
oversees business operations. The articles of incorporation of
Dai-Dan provide that the Board of Directors should consist of
12 people or less.

The Board of Auditors consists of four auditors (two of whomare external auditors), and they meet, in principle, prior to
Board of Directors’ meetings. They thoroughly examine subjects
discussed in the Board of Directors’ meetings, attend themeetings in person, and contribute their views as necessary.

Executive Committee

Corporate governance● Our approach to corporate governance
As 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 environmentand stronger communities. In justifying the trust placed in us bystakeholders, we intend to maintain our effective management

practices.
Our policy regarding corporate governance is to ensure
important management issues are addressed with sound andtransparent operations and decision-making in addition toensuring thorough compliance.

■ Corporate governance system

Appoint/dismiss

Appoint/dismiss

Audit report

Board ofDirectors

Plan/
draft

Approve policies/plans

Compliance Office

Report

Audit

ChairmanApprove policies/plans

Compliance
Committee
Whistle blowing
and consultation

President
ReportInstruct/supervise
Appoint/dismiss/supervise
Instruct/supervise

ReportNotify/answerReportRaise awareness/confirm

Headquarters/Offices
Internal audit

Advise/direct/support

Report on items
concerning management

Affiliate companies

35

DAI-DAN REPORT 2014

General Managers’ Committee meetings are, in principle, held
once a month to ensure that tasks are being executed in an
integrated manner. Management policies and measures are
explained, and the state of business operation of each officeand their respective issues are discussed, and prompt
solutions sought.

In order to ensure thorough compliance, execution of tasks
by directors in compliance with laws and the articles ofincorporation, as well as appropriate execution of tasks,
Dai-Dan has developed an internal control system that
includes the improvement of internal rules. Furthermore, toensure the efficiency and legality of the system, we revise thesystem and make improvements as necessary.

In 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 2013 assessment concluded that, as at the endof fiscal 2013, our internal control system for financial
reporting is effective. An independent auditor also provided
a similar opinion.

reportingCompliance (legal compliance and corporate ethics)● Corporate Code of Ethics
We have developed five Principles of Action and 14 Standards of Action to guide our executives’ and other employees’compliance with laws and regulations and support their demonstration of good social conscience. The Principles of Action
summarise the concepts to be kept top of mind during the performance of day-to-day tasks.
■ Excerpt from our Corporate Code of Ethics Our Standards of Action serve as practical guidelines to the Principles of Action on which they are based.

Audit report

Corporate
officers

Legal
Compliance
SupportCommittee

General Managers’ Committee● Internal control system for financial(Discussion of important matters)

Consultation/
reportAudit
reportAccounting audit

Appoint/
dismiss/
superviseInternal
audit

Consultation on
important matters

Executive Committee

ReportInternal Audit
OfficeAccounting
auditors

Appoint

Audit

ReportBoard ofAuditors

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.

● Basic policy for building the internal

control system

Shareholder Meeting
Appoint/dismiss

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 theprogress of goal achievement. In addition, the committee
members discuss important matters concerning management
strategy and management of the company itself. The
committee then makes recommendations to the Board of
Directors as needed.

Corporate Officers’ Committee

Fair Business Practices

To retain the trust of our stakeholders, we are improving
and strengthening our system of corporate governance,
which lays the foundation of our CSR activities. In addition,
each of our executive officers and other employees
maintain high ethical standards as they engage incorporate activities.

Accounting audit

Principles of Action

Standards of Action

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

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

8. Improve working conditions andwork 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

DAI-DAN REPORT 2014

36

The whistle blowing system and consultation system■ Internal whistle-blowing and consultation flowchart
Whistle blower

ReportReportExternal point ofcontact

Notificationof results

Internal point of contact(Corporate solicitors)

ReportReportCompliance Committee Secretariat

Investigation

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

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 andis responsible for boosting executives’ and other employees’compliance awareness, receiving and investigating reportsof violations, and developing preventive measures. During
fiscal 2013 the committee met on five occasions.

Promoting awareness and practice of compliance
Dai-Dan takes the following measures in promoting awarenessand practice of compliance:● Compliance education is provided during new employee
training, position-specific training session, and the training
programmes of each office allowing many executives andother employees to receive compliance training.
● We publish a Compliance News semiannually.
● All executives and other employees carry a Compliance
Card.
● Posters highlighting the importance of compliance areposted in all offices, including field offices: “Fair and open
competition is the foundation of society.”● In April 2012, the Compliance Statutes were developed
for our Japanese consolidated subsidiaries to improvetheir compliance systems.
● Furthermore, contracts signed by subcontractors include
items concerning compliance in order to develop a strong
compliance system throughout the supply chain.

37

DAI-DAN REPORT 2014

● Review enhancement and recurrence prevention measures of our compliance system
1. Review enhancement of our compliance system

Compliance Committee

Violation of laws and internal regulations

Compliance Committee

As part of our management foundation, we have always conduced our corporate operations in full compliance with all legal andregulatory requirements. On March 4, 2014, however, Dai-Dan and other concerned parties were indicted by the Tokyo District Public
Prosecutors Office on allegations of violating the Anti-Monopoly Act (unreasonable restraint of trade) regarding our submission of a bid
for installation of facilities for the Hokuriku Shinkansen railway line.
Because we view such matters with the utmost seriousness, we intend to further enhance and radically review our compliancesystem. Everyone in our company will work as one to restore public trust by taking steps to prevent any recurrence of such violations
and comply with the Anti-Monopoly Act and other relevant laws and regulations.

● Compliance Office and the Legal

Compliance Support Committee

Compliance Office
Dai-Dan established the Compliance Office in April 2014 tohelp ensure that our business activities comply with theAnti-Monopoly Act and other relevant laws and regulations.
The Compliance Office is under the direct control of the
Chairman and is independent from the headquarters andoffices. In cooperation with the Compliance Committee, thisoffice plans, drafts and implements enhancements to thecompliance system and recurrence prevention measures. In
addition, the Compliance Office confirms that the measures
implemented are functioning effectively.
The plans and drafts prepared by the Compliance Office
are implemented with the approval of the Board of Directors
following discussion of their content by the Executive
Committee.

Legal Compliance Support Committee
In April 2014, we established the Legal Compliance Support
Committee, a professional facility supporting the Compliance
Office. It holds seminars on legal compliance and conducts
awareness-raising activities.

(1) Establishment of the Compliance Office
The Compliance Office was established in order to ensure
our operations remain in complete compliance with theAnti-Monopoly Act and other relevant laws and regulations.
The Compliance Office comprises a full-time generalmanager and six other staff members. They engage inawareness-raising initiatives for executives and employeeswith advice from outside experts in order to prevent any
recurrence of violations of the Anti-Monopoly Act and otherrelevant laws and regulations.

(2) Establishment of the Legal Compliance Support
Committee
The Legal Compliance Support Committee comprises one
corporate solicitor and two outside solicitors. The Legal
Compliance Support Committee remains in close contact
with the Compliance Office and provides support for theawareness-raising activities from a technical perspective as
well as the recurrence prevention measures and legal
compliance conducted by the Compliance Office.

Fair Business Practices

Dai-Dan has established a whistle blowing system andconsultation system with the purpose of swiftly identifying
issues in the workplace, which are otherwise difficult to
identify (behaviour or actions that contravene laws, internal
regulations or social ethics), by providing a means
independent from the regular chain of command, to reportsuch issues. 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 whistle blower.

Initiatives supporting compliance with the Anti-Monopoly Act
and other relevant laws and regulations

2. Outline of recurrence prevention measures(1) We conduct the following activities in April, Compliance
Month.
1. On April 1, the chairman, a supervisor of corporate ethics,
conveyed the company’s determination to operate the businessin compliance with all legal and regulatory requirements througha nationwide videoconference broadcast to all offices. Later,
two representative directors toured these offices, met directlywith executives and employees, and provided additional
explanations.
2. Our corporate solicitors conducted Anti-Monopoly Act
workshops for corporate officers, general managers andother executives throughout Japan.
3. We conducted seminars on compliance with the AntiMonopoly Act at offices across the country and submitted
written oaths on compliance with this law.
4. We provided information on using the whistle-blower systemand the consultation system by re-introducing them throughnotifications and internal reports.
5. We published an extra edition of Compliance News with anarticle on the Anti-Monopoly Act.
6. We produced a poster that specified we would “operate
our business in compliance with the Anti-Monopoly Act”
and posted it in our offices, including field offices, acrossthe country.

(4) Through revision of the Standards of Action of the Sales
Department and the formulation of our Sales Manual, we
have demonstrated our commitment to compliance with
the Anti-Monopoly Act and other relevant laws andregulations as well as social norms with content
specifying concrete standards of action. We also takesteps to keep everyone informed through workshops andthe like and we are committed to passing this information
on to younger generations in the future.
(5) For appropriate and legitimate business operations, wewill periodically rotate individuals in sales positions.

(2) Our corporate solicitors held Anti-Monopoly Act complianceseminars in our offices across the country.
(3) We conduct the following monitoring and enhancement
measures as part of our sales operations.
1. We have adopted a system of prior notification of the work
schedule and report of the results for employees involvedin sales. As required for compliance, the superior provides
appropriate instruction and conducts appropriate checks.
2. For individual bids to government offices, the generalmanager confirms that we are in compliance with laws andregulations when the bid is submitted and report theresults to the general manager of the Sales Division.
3. We added items 1 and 2 to the sales inspection items of
the internal inspection. In internal inspections of offices
conducted by our Internal Audit Office twice yearly, we
conduct inspections of the relevant items. We report theresults of the internal inspections to the Board of Directors
twice yearly.

Compliance poster

DAI-DAN REPORT 201438

● Protection and respect for intellectual

To prevent unjust share trading by corporate insiders,protect shareholders and contribute to a stable and fairsecurities market, strict rules are imposed on sharetransactions as per our Insider Trading Control Ordinances.
Additionally, to establish an environment in which
executives and employees have a good understanding of
insider trading, the Introduction on Insider Trading
Ordinance for Executive Officers and Employees of Listed
Companies created by the Tokyo Stock Exchange isavailable on our corporate intranet.

Dai-Dan believes that intellectual property can be developed
both in the lab and the field. Therefore we proactively apply
for patents on inventions and designs by both our TechnicalResearch Laboratory and our on-site workers. In fiscal 2013,
we were granted a total of 15 patents related to factory air
conditioning and a supercritical CO2 cleaning system.
Furthermore, we have been undertaking risk management
initiatives to ensure that we do not infringe on the intellectual
property of other companies.

Registration with J-IRISS
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.

property● Initiatives to counter antisocial forces
Dai-Dan is firmly opposed to antisocial forces and iscommitted to avoiding any relationship with such entities.
Our Corporate Code of Ethics clearly sets forth this principle,
and our training reinforces the need to uphold it. In addition,
the contracts we enter into with subcontractors clearly statethat the contract will be terminated if the subcontractor isfound to be substantively involved with antisocial forces. This
is intended to effectively exclude antisocial forces from ourbusiness dealings from the outset.

Risk management (improving the business environment)● Risk Management Regulations● Initiatives to protect personal information

Dai-Dan introduced Risk Management Regulations in April
2001 to prepare for potential risks such as natural disasters,
the leaking of confidential information that could damage thecompany, 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 the problem(s) andshare information.

We recognise that the leakage of personal information is arisk that has potential to cause a loss of trustworthiness. As
such, we have strengthened our internal systems in order toprotect personal information, and have posted the Personal
Information Protection Policy on our corporate website.
Furthermore, we have created a manual based on our
Personal Information Protection Regulations and distributed
the manual to all executives and employees in order toensure the protection of personal information.

Emergency drills to support our business continuity plan (BCP)
To coincide with the disaster drill conducted by Osaka Prefecture, Dai-Dan completed an emergency drill following the business
continuity plan in September 2014. Following the action manual (initial response) of each office, which outlines the delegation of roles, we
completed an earthquake drill that included rescue, evacuation, safety confirmation, and use of satellite phones while incorporating thelesson we have learned from previous years’ drills.
We will continue to conduct drills, promote executive and employee awareness and improve the effectiveness of our BCP.

Technical Research Laboratory

Tohoku BranchTokyo Head Office

Chugoku Branch

Fair Business Practices● Prevention of insider trading

Disclosure (proactive and timely disclosure of information)● Shareholder meeting● Financial results briefing session

The 85th annual shareholder meeting was held at the Osaka
Head Office on June 27, 2014. We recognise the shareholder
meeting as a valuable venue for communicating with ourshareholders. Business reports are displayed on a large
screen and accompanied by a narrative to give ourshareholders a clearer understanding. Additionally, we sendout our shareholder meeting notifications early in order toprovide sufficient time for shareholders to consider the reports
and matters related to resolutions. Prior to the meeting, we
screened a video entitled “Dai-Dan’s Technology” andintroduced our technological developments by sector.

Dai-Dan holds briefing sessions for our full-year and second
quarter financial results for securities analysts in June andDecember. The sessions present an overview of financial
results, the business environment and performance prospects,
as well as achievement status of the Mid-Term Management
Plan.

● IR tools
The investor information page on our corporate website
allows investors to view earnings summaries, securities
report and other important items. The page also provides
information such as business reports, medium-term business
reports and notifications of shareholder meetings. This
information is provided in the form of IR news available on themain page of the website and is updated as necessary.

● Initiatives to strengthen information● The “DAI-DAN REPORT,” our CSR

publication

Since fiscal 2008, Dai-Dan has published an annual CSR
report to facilitate greater stakeholder understanding of ourcompany. This report is created each year by incorporating
the views of third parties and internal survey results. All our
CSR reports are also made available on our corporatewebsite. We also prepare an English edition of our CSR
report for our overseas stakeholders, which is also available
on our global website.
In 2014, we introduced the “DAI-DAN REPORT 2014” asan integrated corporate report incorporating expandedfinancial information in order to provide stakeholders with abroader array of public information.

security

The Information System Usage Guidelines are madeavailable for viewing by executives and other employees on
the corporate intranet. Additionally, education on thehandling of electronic information is provided during new
employee and position specific training sessions.
Moreover, we provide information security training to theemployees of our subcontractors using the Security
Handbook to strengthen our information security.

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

English edition
http://www.daidan.co.jp/english/eco21/index.html

Security Handbook
IR news

39

DAI-DAN REPORT 2014

DAI-DAN REPORT 201440

Environmental
Contribution● FY2013 environmental targets and results/FY2014 environmental targets○: Target achieved

Activities and responsible departments

To help improve the environment,
Dai-Dan implements effective
environmental conservation activities
through our Environmental Management
System.

Proposal,planning,
designing

Sales
department
Designdepartment

Installation

Installation
department
Procurement
department

More than 60△

More than 50,000 tonnes

CO2 emission reduction through adopted solutions

More than 15,000 tonnes 12,657 tonnes△

More than 15,000 tonnes−

1,376 tonnes−−

Promotion of sustainable procurement

More than 38%

38.2%

○

More than 40％

Improvement of recycling rate of industrial waste

More than 93%

88.6%

△

−

−

−

−

More than 60％*

Adoption of laminate ducts

More than 50,000 m2

19,179 m2△

More than 30,000 m2

Removal of thermal insulation of drainpipes

More than 30,000 ｍ

33,291 ｍ○

More than 35,000 ｍ

Energy consumption converted to CO2 emissions

Less than 1,400 tonnes

1,428 tonnes△−

Promotion of sorting of industrial waste/Sorting rate in the fieldAll
employees

Less than 58 tonnes

62.8 tonnes△

Less than 58 tonnes

Introduction of hybrid vehicles

25%

29%

○

35%

Improvement of recycling rate of general waste

−

60.3%

−

−

Copy paper usage* In FY2014, the target was changed to the sorting rate in the field. ** In FY 2014, the target value was changed to the new CO2 equivalent.

● Quality and environmental auditing andthe development of quality andenvironmental auditors

Development of quality and environmental auditors

Quality and Environmental Management System
President
Head Administrator of Quality
and Environmental Management

Audit of Quality andEnvironmental Management

Our quality and environmental auditors include the following:“central quality and environmental auditors,” who create
audit plans and are responsible for conducting audits; andour “local office quality and environmental auditors,” who
conduct audits for their respective departments and publish
audit reports. To enhance our quality and environmental
auditing, we provide the training programmes listed below.

● Initiatives to provide energy saving

solutions

During the design phase, we proactively provide customers
with energy-efficient solutions, which are predominately
based on technologies developed by Dai-Dan to contributeto reduced CO2 emissions.
Throughout fiscal 2013, we offered solutions that would
have reduced CO2 emissions by 44,768 tonnes, withcustomers adopting energy-efficiency options that saw a
total reduction of 12,657 tonnes of CO2.
■ Targets and results of CO2 emission reduction throughdesign solutions(tonnes)
100,000

Headquarters/
Business Offices

Quality and Environmental
Management Committee

Administrator of Quality andEnvironmental Management

Officeactivities

Sales
activities

Designactivities

Development
activities

Installation
activities

Procurement
activities

70,00070,00060,00050,00040,000Result86,25680,00053,10640,00047,66345,00060,00060,00044,76840,35530,00020,00010,0000● Overview of ISO 9001 and ISO 14001 requirements● Outline of the quality and environmental management policy, its
attached documents and demonstration audits and creation ofmock audit reports● Investigation of the causes of audit findings and prevention ofrecurrence● Demonstration and evaluation of quality and environmental audit

Target90,000

Auditor training

3. We are dedicated to developing and providing energy-saving,environmentally friendly technologies. We assess the environmental
impact of building facilities and offer proposals for impact reductionand energy efficiency.

DAI-DAN REPORT 2014○

More than 60,000 tonnes 44,768 tonnes

In order to check that the quality and environmental
management system, which is the combination of the former
quality and environmental management systems, is properly
operated and maintained, periodic quality and environmental
audits of offices and fields are conducted at least once peryear.

ISO 14001 registration certificate
For further details on registration, see
the registration list on the website of
the accrediting organization(http://www.jtccm.or.jp/).

2. We strive to enhance the skills of our employees and establish
partnerships with our cooperative companies, to meet with customers’
quality requirements and ensure their satisfaction.

41

109

CO2 emission reduction through design solutions

Quality and environmental auditing

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 establishedby our company.

5. We set objectives and targets for improvement of work quality andenvironmental measures, and we educate our employees thoroughly
about them. We appropriately maintain system operations andcontinuously improve “Our Quality and Environmental Management
Systems” based on results.

More than 55△: In progress

FY2014 target

Environmental Contribution

Policies. Consequently, our regular internal audit is now known as
our Quality and Environmental Audit, which audits both systems
concurrently. Furthermore, in terms of organisational structure,
the supervising bodies for quality management and environmental
management have been consolidated
and operational efficiency is being
facilitated.

Our management principles are as follows: As a comprehensive facility works
company, we always strive to create new value. We always seek to contributetoward the realisation of a better global environment and sustainable social
development. As a responsible member of society, we are committed to quality
assurance and environmental impact reduction in our corporate activities.
We also aim to be a vibrant company by gaining customers’ satisfaction andtrust.

4. We, as a good corporate citizen, carry out social contribution activities
and positive information disclosure, to enhance communications withsociety.

Number of solutions that leverage Dai-Dan technology adopted

FY2013 result Assessment

Less than 1,800 tonnes**
Officeactivities● Environmental Management System (ISO 14001)

Our Policies for Quality Assurance andEnvironmental Protection

FY2013 target

Energy consumption converted to CO2 emissions

Environmental Management System
Dai-Dan has built and implemented the Dai-Dan Environmental
Management System, which is compliant with the ISO 14001
Environmental Management System. In February 2002, alldepartments became ISO 14001 certified and have since
undertaken ongoing resource and energy saving activities.
Our activities include:● Reducing CO2 emissions through development oftechnologies and design solutions● Reducing resource and energy consumption during
installation● Sorting and recycling of waste● Company-wide social contribution activities such as
clean-up days
Furthermore, in 2006 Dai-Dan integrated the administration of
our environmental management system and quality management
system (p. 45). Our quality assurance and environmental protection
policies have been unified as our Quality and Environmental

Main target or item to be monitored

FY2009FY2010FY2011FY2012FY2013■ Targets and results of CO2 emission reduction throughadopted solutions(tonnes)
18,000Target16,25416,00014,000Training for central quality and environmental auditor (candidates
are selected from staff with more than five years of service):
One training session held in fiscal 2013 (21 participants)

12,000Training for local office quality and environmental auditor (candidates
are selected from staff with more than three years of service):
One teleconference training session held in fiscal 2013 (78 participants)

6,000

10,000
8,000

9,000

9,000
6,593

8,198

10,000Result15,00015,00011,117

12,657

4,000
2,000
0

FY2009FY2010FY2011FY2012FY2013

DAI-DAN REPORT 201442

We are committed to reducing energy consumption, such as
electricity and gas, and reducing use of copy paper atinstallation sites and offices. In fiscal 2013, our energy

1,400

1,483

1,392
1,176

1,200

1,376
1,083

1,000

(tonnes)
1,800
1,700
1,600

Target

600

1,688
1,625

1,625

1,499

1,450

1,421

1,400

200
FY2010FY2011

Type of accident

Details

Result of response

Refrigerant leakage(accident caused by amanufacturer’s product)

The fan bell-mouth of the air
chiller fell off, striking andbreaking the fan blade. The
flying pieces damaged the airheat exchanger cooling pipe,causing a leakage of refrigerantgas.

The installation bolts for the fanbell-mouth were too short, andthe vibration of the chiller caused
the bolts to work loose and fallout. The manufacturer provided
longer replacement bolts, whichwere installed.

Refrigerant leakage(accident arising frominstallation)

A 30-month-old air conditioner
failed to work after a repair. The
cause was a blemish on a flarejoint in the refrigerant piping that
resulted in a refrigerant gas leak.
(Related incidents occurred at twoother installations.)

The flare joint was re-done andan airtightness test was carriedout to ensure no further air
leakage from the pipe. The
system was then refilled withrefrigerant gas followed by a test
run and adjustment to recover
the system.

1,428

1,300
FY2009During fiscal 2013, a total of four instances of environmental accidents occurred at properties at which we had completed
installations. We have responded to each of the cases appropriately, and in line with all legal requirements.

1,600

1,400

400

Result

1,753

1,500

800

0

consumption converted to CO2 emissions totaled 1,376 tonnes
and 1,428 tonnes at installation sites and offices, respectively.

■ CO2 emissions at offices■ CO2 emissions at installation sites(tonnes)
1,600● Response to environment-related accidents

FY2012FY20131,200

FY2009FY2010FY2011FY2012FY2013● 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 environmentallyfriendly material; introduction of highly durable equipment;
introduction of low emission devices; and introduction of watersaving equipment.
Sustainable procurement rate during fiscal 2013 was 38%.

(millions of yen)

Sustainableprocurement

33,79837%

32%

28,0010

FY2009FY201018,317

11,427

10,659FY201140
30

15,617
9,010

38%

29%

20,00010,00050

42,73939,14432%

30,000

Sustainableprocurement rate(%)
47,96050,00040,000● The accident and complaint report iscreated each month to share information
about, and prevent recurrence ofaccidents caused by, poor quality
workmanship. The report outlines thedetails of the accidents and preventative
measures, and is used to ensure thatthose incidents are well known at each
worksite.

● Each worksite also holds meetings andtraining sessions to inform its employeesof accidents and complaints.

● Contribution made by research on reducing environmental impact■ Sustainable procurement rate
Materials andequipment purchased

Responding to and preventing
recurrence of accidents causedby poor quality workmanship

Environmental Contribution● Initiatives to reduce energy consumption

20
10FY2012FY20130

Reduction of waste using supercritical CO2
Factories and department stores dispose of large volumes ofused deodorising air filters.
Dai-Dan was the first company to successfully use
supercritical CO2 technology for commercial purposes toclean and recycle deodorising air filters.
The use of this recycling technology, co-developed by
the Tohoku University and the National Institute of Advanced
Industrial Science and Technology, provides benefits suchas reduced waste and reduced CO2 emissions, andtherefore has been highly praised by our customers andrelated academia.

● Initiatives to recycle industrial waste
Dai-Dan implements activities to encourage recycling at allof its installation sites. Throughout fiscal 2013, Dai-Dan
produced approximately 11,141 tonnes of industrial waste,
of which 89% was recycled.
Furthermore, we promote awareness of reducing
industrial waste at our offices and encourage sorting andrecycling.
In fiscal 2013, our offices produced approximately
120 tonnes of general waste, of which 60% was recycled.

■ Industrial waste recycling rate
Total waste(tonnes)
18,00016,00014,000

79%

85%

9,423

8,000
6,000

7,524

89%

91%
14,911
13,593

11,905
10,64012,00010,000Sorted waste

Japan’s largest supercritical CO2 cleaning and recycling equipment

Recycled rate

89%

(%)
100
80

11,141
9,873

60

8,044
40

5,976

4,000

FY2009FY2010FY2011FY2012FY2013

Ducts used for air conditioning systems and ventilation
require a certain thickness to ensure durability. To saveresources, Dai-Dan has been introducing laminate ducts,
which are 10 to 30% thinner than conventional duct materials
and use specially reinforced iron sheets.

20

Before installing laminate ducts, the ducts undergo leaktests* and tests to ensure durability and resistance tovibration.

0* Tests to ensure that no air leaks from the joints

2,000
0

Resource saving through the use of laminate ducts● Introduction of hybrid vehicles
For some time, we have been proactively introducing
fuel-efficient models for our company-owned and leased
company cars. By the end of fiscal 2011, 97% of all company
cars were fuel-efficient models. In fiscal 2012, we introduced
hybrid vehicles, and we aim to achieve further savings of

43

DAI-DAN REPORT 2014

resources and energy. As of the end of fiscal 2013, 29% ofcompany vehicles were hybrid models, and we expect toincrease this rate to 35% in fiscal 2014.

Performance evaluation testing of laminate ducts

DAI-DAN REPORT 201444

Meeting
Customer Expectations
In order to maintain and improve the quality ofbuilding services, Dai-Dan implements quality
management systems, strengthens support
systems and advances cooperation with our
subcontractors.

● Customer support after completion andhandoverAt the completion of a project, Dai-Dan conducts a statusreview of major equipment and provides ongoing advice toimprove performance. This work is carried out by the project
manager, who can offer insights into the building services
even after the handover.
In November 2012, Dai-Dan established a customer
consultation office. Customers are welcome to contact us for
information on building maintenance and to submit costestimate requests. Our effective customer support system isprepared to meet a wide range of customer needs without
delay.

Brochure advertising the establishment ofa customer consultation office

Quality Management System● Customer evaluations

Dai-Dan has built and implemented the Dai-Dan Quality
Management System, which is compliant with the ISO 9001
Quality Management System. Before December 1999, each
office was independently certified; in 2006, however, allworkplaces collectively acquired ISO 9001 certification. We
have been working to maintain and improve the quality of ourwork at installation sites.

Our activities include:● Ensuring quality of work carried out on-site● Enhancing the skills of engineers and passing on
expertise● Reducing quality-related problems
To ensure the effectiveness of the above activities, we are
implementing the following.
■ Operational procedures of the installation department

Discuss details of
installation work
prior tocommencement• Hold project meetings prior tocommencement• Formulate installation plans

Management
while work is inprogress• Promote standardisation across all
installations to ensure high quality• Conduct inspection by a team of
specialists with technical expertise

Inspection andcompletion• Inspection in line with legal requirements• Dai-Dan’s own final inspection offunctionality

ISO 9001 Registration Certificate
For further details on registration, see
the registration list on the website of
the accrediting organization(http://www.jtccm.or.jp/).

45

Customer opinions

DAI-DAN Co., Ltd.
Further development oftechnologies andimprovement of
installation skills,
which facilitate
broader adoption of
the technologies

Customers

Contractee
Customer
User■ Customer satisfaction survey results
Item
Work quality

FY2011Item

FY2012FY20133.50

Installer capacity

3.41

3.42

3.37

3.39

3.34

3.38

Work progress

3.40

Customer service

3.51

Installation
management
Creativity andsolution proposals

Installation
management

3.49

Backup capacity

3.34

3.33

Overall evaluation

3.50

Overall evaluation

3.41

3.44

Design and installations that fulfill safety,
quality and environmental requirements
High value-added solutions
Creating comfortable and safe environments

Note: Survey items have been changed asof June 2012.

Number of surveys completed: FY2011; 739/FY2012; 678/
FY2013; 583● Building Chart System● Project meetings

We have been using a Building Chart System, an internal
information system, since May 2010 in order to make themost of our installation experiences. The Building Chart
System is used to record the details of the installation, thedetails of recommendations, and customer requirements foreach building. We enhance customer satisfaction byrecommending detailed renovation options that contribute to
comfortable use of a building.

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

DAI-DAN REPORT 2014

Dai-Dan conducts customer satisfaction surveys after wehave completed building service installations. These surveys
provide our customers with the opportunity to evaluate ourtechnology and installation work on a scale of one to four
(four being the highest). At the same time, we also allow ourcustomers to communicate any requests they may have. We
verifiy the points to keep in mind during reviews of issues orfollow-up service through a customer evaluation survey
involving all parties concerned at the internal completion
evaluation meeting.
With this survey system, we are able to provide facilities
that satisfy our customers for a long time in addition toensuring follow-up service by passing on the information
obtained through the customer evaluation survey.

Meeting Customer Expectations● Quality Management System (ISO 9001)● Development technology information desk
Our development technology information desk, which assists
each office in quickly and accurately handling customer
inquiries and requests, was launched in fiscal 2012. The
service works in cooperation with internal specialist
engineering teams to provide support for each office inresolving issues submitted by customers. It encompasses
the latest technological trends and can utilise Dai-Dan

technologies involving, for example, the application of
government subsidies, advanced environmental factory
control, leading-edge medical facilities and devices, andprojects requiring analysis and measurement.

DAI-DAN REPORT 201446

Valuing
Our Employees

Initiatives with subcontractors● Activities with subcontractors

Refrigerant Piping• Completion of refrigerant handbook• Revision of the cost requirements sheet for
refrigerant charging

Painting andInsulation

Classification of problems and measures inlarge field projects

MiscellaneousWork• Heavy lifting operation for flue and smoke
tube boiler using air caster method• Advance foundation anchor implantation
method• Introduction of FRP foundation footings

Outsourcing ofManagement

Search tool for “VE, CD proposals andinstallation standards”

Equipment• Collection of VE proposals for the apparatus• Cost reduction by changing pipe type• Introduction of flex unit drain pipe for air
conditioner plumbing, list of incidents

Valuing Our Employees● New employee technical training
New employee technical training is the very beginning of the
training we provide. It consists of introductory technicaltraining and fundamental technical training, both of which
together allow new employees to learn and put into practicetheir fundamental knowledge.
In fiscal 2012, the training duration was extended by one
month to five months. It is taught using a curriculum that goesbeyond the boundary of job types. The training not only offers
lectures, but also provides greater opportunities for new
employees to see and experience new things to enhance
efficiency and deepen learning of new knowledge oftechnical skills. It also equips new employees with the ability

to immediately contribute to
the company.
Through this five-monthtraining, new employees not
only acquire specialised
knowledge and technicalskills, they also develop astrong bond with their fellow
new employees, with whomthey will grow together infriendly competition.

Site inspection as part of introductory
technical training for new employees■ Diagram of educational training system

Shigeka Yamada

Chairman of Osaka Dai-Gen
Health and Safety Association
Kotobukikogyousho Co., Ltd.

Start of employment

27 Y/O
Level 1

31 Y/O

39 Y/O

Level 2

Level 3

50 Y/O

57 Y/O

Level 4

Dai-Dan CPD scheme

Technology

Administration
Sales

New employee
technical training(five months)

Installation plan creation training

Design andinstallation rotation

Administrative job rotation

Installation plan creation training

Sales staff/sales executive officer training

Life planning seminar• Documentation on plumbing connections(including packing, bolts, insulation bolt
specifications, adhesives and sealingmaterials)• Documentation on plumbing support
methods

and create 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.

New managerial staff training

Plumbing● All executives and employees must respect all human rights and individuality,

New executive officer training

Examples of good installations/poor
installations Part 2– Respect for human rights and individuality –Excerpt from the Standards of the Corporate Code of Ethics

New deputy manager training

Ductwork

Dai-Dan’s Corporate Code of Ethics clearlystates the importance of respect for humanrights and individuality. We value personaldignity and make efforts to improve work
environments. During our new employee
training sessions, we raise awareness forrespecting basic human rights.

Deputy sitemanager training

Introduction of new tools and materials• Cable identification device• Pocket-size insulation resistance meter• Materials for making simple cableconnections• Scaffold-free ceiling wiring methods• Screw-free installation method for outlet
boxes● Initiatives to address human rights issues

Development
technology training

Electrical Skill

Photovoltaic power generation

While the nationwide labour shortage in the construction industry
has continued with the restoration work required in the aftermath
the Great East Japan Earthquake, construction demand is
expected to grow in the period leading up to the Tokyo Olympic
Games to be held in 2020. The short-term challenge is to secureskilled workers for site work.
Dai-Dan has established the Dai-Dan subcontractor network,a national-scale system of supporting subcontractors. The Osaka
Dai-Gen Health and Safety Association, a local member of that
subcontractor network, currently comprises 19 local supporting
subcontractors.
I am confident that, in the future, our association can meetcustomer needs by working together with Dai-Dan to encompass
an even wider nationwide circle of supporting subcontractors
serving as an effectively functioning national network during theupcoming busy period.

Follow-up training

Electricity
Generation

Main focus

Message from a subcontractor

On-site training(one month)

Sectional committee

Respect for human rights and development of human resources

Fundamental
technical training
for new employees(four months)

committees of the Osaka Dai-Gen
Health and Safety Association

Dai-Dan respects each of our employees
and encourages them to take on thechallenge of creating greater value, andalso promotes positive work-life balance.

Introductory technical training
for new employees (one month)● FY2013 initiatives of the sectional

compliance, environmental measures, innovative sitemanagement methods, and employing new techniques andmaterials. Dai-Dan and its subcontractors pursue these
initiatives with a shared interest in manufacturing excellence.
In addition, the respective sectional committees of ouroffices regularly engage in information exchange at thenational level in order to share information on the results ofinitiatives.
By continually incorporating the outcomes of these
initiatives with our on-site subcontractors, we are striving tofurther enhance our expertise encompassing the aspects ofsafety, quality and cost. We remain committed to meeting thedemands of our customers.

New employee general training

To provide our building services safely and offer appropriate
value while maintaining high quality, it is imperative that wecomplete our projects by working in a cooperative
relationship with our subcontractors.
Each Dai-Dan office maintains a Dai-Gen Kai and a
Health and Safety Association, organisations of Dai-Dan
subcontractors supported by long-standing relationships oftrust. These organisations include sub-groups specialising intrades such as electrical, plumbing and ductwork that form
sectional committees that remain actively engaged in various
issues.
Their areas of focus include improving quality, ensuringsafety, rationalising costs, enhancing installation efficiency,

Dai-Dan Mentor System
CommonOJT
Encouraging the acquisition of official qualifications
Compliance related training

47

DAI-DAN REPORT 2014

Health and safety-related training

Personal development (correspondence learning, seminars, etc.)
Quality and environment-related training

Technology Information HourDAI-DAN REPORT 201448

Reflecting on my new employee training● Young Employee Support System(Dai-Dan Mentor System)

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. With 2014 marking the fifth anniversary of thesystem, the employees who had achieved growth with thesupport of mentors became mentors themselves capable ofsupporting the new employees.
This chain of personnel development reflects our humanresource development belief that people grow as they assist
in the development of others.

Young Employee Support System(Dai-Dan Mentor System)

Mentor SystemI think this experience will help my work greatly in the future, as I wasable to learn how to set up a carry-in plan and actually experience thecarry-in work.
As my office assignment drew to a close and I looked back on what I
had accomplished since entering the training centre programme, I feltthat I had matured greatly in terms of awareness, mindfulness andknowledge.
I felt quite blessed to have become acquainted with such wonderful
fellow new employees throughout the five-month training period. I am
confident that this experience will
prove to support me greatly infuture, especially during times
when I encounter difficulties.

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 toon-site work. Therefore, the acquisition of official qualification
is indispensable.
In order to support our employees’ commitment toenhance their technical skills and in order to secure qualified
engineers and improve the overall technical level of thecompany, Dai-Dan encourages and provides support for theacquisition of official qualifications.
For those who acquire official qualifications recognised
as necessary by Dai-Dan, we subsidise course fees and alsooffer incentives and official qualification acquisition benefits.

■ Number of employees who have major qualifications
NumberQualification

NumberDoctorate

Qualification

5

Professional engineer

31First grade instrumentationengineer

294

First-class architect(qualified architect andbuilding engineer)

19
（15）

Energy manager

51

First-type electrical work
engineer

227

First-class electrical
work operation andmanagement engineer

221

Building service engineer(air conditioning)

500

First-class plumbing
work operation andmanagement engineer

765

Building service engineer(plumbing)474
16

Building services architect

151

First grade constructionindustry accountant

Notes:• Figures pertaining to the number of people who have acquired the above
qualifications are current as of the end of March 2014.
• The number of qualified individuals includes duplicated qualifications dueto the multiple fields covered by each qualification.

● CPD scheme designed to improve technical skills
Akinobu Ikeda

Engineering Division 2
Engineering Department 1
Osaka Head Office

My experience in receiving
mentor support
In September 2013, I completed the five-month technical training
for new employees and was posted to the Construction System
Development Division of the Technical Research Laboratory.
At first, I felt uneasy about whether I could perform the dutiesof the Research Laboratory, and whether I could become
accustomed to life in this new environment. My unease graduallydissipated, however, because of the advice that my seniormentor casually passed on to me.
I talked with my senior mentor every month. Because I was ina section different from that of my mentor, I did not receive direct
instruction relevant to my work. However, gaining a better
understanding of workflow and how to work and study proved tobe very significant. Moreover, my mentor would sometimes invite
me to eat with him, which helped me to open up about subjects
such as hobbies and other aspects of my life. After the one-year
support period passed, I felt I was able to establish a good
relationship with my mentor and speak frankly in conversation.
Through this experience, it became clear that this system
was a significant help to a new employee. I recommend that all
new employees take steps to make the most of this system andfrequently talk with your senior mentor and ask questions.

There are no limits to the specialisation andimprovement of technical skills. In order tosupport our employees’ on-going commitment
to skills improvement, we maintain a databaseon employee educational history using the
Dai-Dan CPD* scheme and utilise it for humanresource development.
The educational history of each employee
is reported to the Society of Heating,
Air-Conditioning and Sanitary Engineers ofJapan (SHASE). It is then assessed andverified for the appropriateness of oureducation and human resource development.

■ CPD status of companywide initiatives* Abbreviation for Continuing Professional

Development, which refers to the continued
development of skills and knowledge throughout
an individual’s professional career.

** Quantified figures of an individual’s continuing

professional development record in accordancewith category specific point standards. They areused as official evidence of CPD history(performance results).

Category

Current
Previous
CPD points** CPD points

Major programmes

Technical information
learning

13,957

16,662

Attending external lectures and participating in
exhibitions, product information sessions and tours

II. In-house training/OJT

19,30019,258

Attending in-house training and OJTIII. Self-education

2,648

3,997

Taking recommended correspondence courses
and self-education using specialised books

9,040

9,180

Successful work, winning of internal awards,
installation review session, on-site inspections,safety inspections, teaching study groups andserving as a committee member for creatinginternal technical documents

V. Research andtechnology/reporting

870

950

Publication of research papers, contributing tojournals and other publications

VI. Provision of
information andtechnical instructions

1,087

1,353

External provision of information and technicalinstructions, participation in academic conferences
and research committees, and serving as an
instructor for official qualification courses

VII. Instructor

2,488

2,786

In-house training instructor, part-time lecturer ata university or technical college

VIII. Winning of an award,
acquisition ofqualification, others

4,960

5,580

Winning of an external award, acquisition of atechnical and safety plumbing related official
qualification, acquisition of a degree, andobtaining a patent

Total

54,35059,766I.

IV. Work experience

Valuing Our Employees

At the time I joined the company in April 2014, I underwent training at theTechnical Training Centre with a combination of expectation and unease.
This marked my first step away from student life and into my role as amember of society. But I lacked confidence about whether I could do mybest and prevail in a stricter social environment, and whether I could workand get along with such a large number of fellow new employees. Thenagain, I was full of positive energy and anticipating my growing process.
Fortunately, as we cooperated and made progress with the training
topics, the unity among all us new employees strengthened. My worries
gradually faded as we talked about our future work together and ourgoals.
At first, I still felt I was a student, but when the CAD training started inMay, I felt a new confidence merging with my awareness of being an
employee of Dai-Dan. Although I still find CAD difficult to master, thesubstantial training enabled me to develop my abilities little by little.
In addition to offering CAD training, the centre provided site tours andspecial training courses. This renewed my awareness that Dai-Dan is acompany with a truly broad training system.
During our field training that began at the end of July, I gained
experience at carrying in cubicles, laying cable racks, installing lighting
and working on power reception. I believe I gained a substantial amountof experience during this period.
The task of carrying in the cubicles had the biggest impression on
me. I was surprised at the workspace, the crane choice, and the manyother issues that must be considered, including safety management
during the carry-in process.

● Official qualification acquisition scheme

Notes:• Previous points are those points acquired between April 2012 and March 2013.
• Current points are those points acquired between April 2013 and March 2014.
• Categories II, III, IV, VII and category V have annual maximum points of 20 and 40 respectively.

Instructor System● Publication of the DAI-DAN Technical

Current NewsCounselling

49

Coaching

Teaching

Psychological support

Support for skills

Non-work related matters

Work-related skills

Mentors act ascounsellors to provide
psychological support

Enhancing specialised
knowledge andtechnical skills

DAI-DAN REPORT 2014

Shintaro Hanazono
Construction System
Development Division
Technical ResearchLaboratory

With the objective of publicising the technology we develop
and our research initiatives, we publish the DAI-DAN Technical
Current News every September. The publication gives
comprehensive explanations of experiments, assessment
methods and analysis results using charts and images. The
108th edition was published in September 2014. Copies ofthese publications are donated to the National Diet Library.

DAI-DAN REPORT 2014

50

Work-life balance and the work environment● Holidays● Supporting the balance between workand home■ Major holidays(excluding statutory paid annual leave)
Type of holiday

Details

Summer holiday

Three consecutive days in summer

Refreshment holiday

Seven consecutive days (annual)
10 years: 3 days

Long service leave

I took maternity leave and childcare leave from March to theend of November 2013.
After reporting my pregnancy to my boss for my thirdparental leave with a beating heart, my boss said
“Congratulations!” I felt doubly happy knowing that I would
be able to continue working after having become pregnant.
Thanks to the support of my boss and co-workers, after
giving birth I was able to return to the workplace that I am
accustomed to. I am also able to maintain a good balance
between my work and home life. Thanks to everyone, I havebeen able to devote myself to childcare during my leavefrom work, and my three sons are growing healthily by leaps
and bounds.

20 years: 5 days
30 years: 7 days

Action Plan

40 years: 5 days
Congratulatory or
condolence leave

Message from an employee
who took childcare leave

Dai-Dan has developed an action plan in line with the Act on
Advancement of Measures to Support Raising NextGeneration Children, in order to enable employees toachieve the best balance between work and home, to createa pleasant work environment for all employees, and to
ultimately allow staff to use their skills to their fullest extent.

(April 1, 2011–March 31, 2015)

Predetermined number of days foroccasions such as weddings

To improve the workplace environment to ensure

Target 1 that childcare leave is easy to take and the staff■ Summer holiday usage rate
Fiscal year

Rate

FY201291.0％

FY201391.2％

FY201492.2％

easy to return

To have at least one or more male employees takeTarget 2 childcare leave while the action plan is in operation

Target 3 To provide an opportunity to gain work experience byintroducing an internship system

Valuing Our Employees

Dai-Dan has established various holiday systems to allow
our employees to make the most of their holidays to refreshthemselves.
Since fiscal 2011, employees have been encouraged totake summer holidays at the same time as part of our efforts
to reduce electricity consumption. Employees are also
encouraged to take paid annual leave and refreshment
holidays before or after their summer holiday to have theirbody and mind refreshed.
Many employees make the most of an extended break as
a refreshment holiday to travel abroad or take the time toenjoy hobbies that they did not typically have time for.
Long-service employees are not only entitled to holidays,
but are also given a travel coupon depending on the durationof their service, making their family trips and other trips more
fulfilling.

■ Parental leave take-up rate

● Continued employment scheme
Dai-Dan has introduced a continued employment scheme aspart of our initiatives to meet the needs of Japan’s aging anddeclining population. Under this scheme, we extend theemployment of staff who reach retirement age but desire tokeep working. Through this we are leveraging skills andexpertise acquired over many years, and enabling thoseskills to be passed on to the next generation of workers.
In fiscal 2013, we employed all staff who desired tocontinue working until the age specified by the transitional
measures following the amendment of the Act on
Stabilisation of Employment of Elderly Persons.

■ Continued employment rate for persons of retirement age

Persons ofretirement age
Persons continuing
employment
Continued
employment rate

FY2011FY2012FY2013

33

29

26

28

26

25

84.8%

89.7%

96.2%

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

FY2011FY2012FY2013

2

3

4

2

3

4

1

2

2

100%

100%

100%

50%

67%

50%

0

0

0

Ritsuko Hosoi

Design Division 1, Design Department, Osaka Head Office● Initiatives to address mental health issues● A workplace that proactively employs females
Dai-Dan has continued to employ female workers for main career track positions when hiring recent graduates, and we provide
technical training for new employees without discrimination by gender. Engineers who have acquired the necessary basic
knowledge through this training are now playing an active role in design departments and at field installation sites.
In addition, we switch employees from minor career track positions to main career track positions using the Main Career Track
Position Switching System as needed, and our primarily female main career track positions remain active in sales departments
and official and administrative departments.
■ Employee breakdown

51

As of March 31,
2012

As of March 31,
2013

As of March 31,
2014

Male

FemaleMale

FemaleMale

FemaleNumber of
employees
Average yearsof service

1,225

126

1,236

128

1,259

130

18.7

11.2

18.8

11.7

18.8

12.3

Average age

42.7

33.4

42.8

33.9

43.0

34.5

Female main career
track positions

―

27

―

28

―

30

DAI-DAN REPORT 2014

Maintaining a healthy mind helps keep you highly motivatedfor work and vitalises 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
health to equip staff with the knowledge to allow them toidentify and cope 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. They also learn to address theissues as an organisation.
Beginning in fiscal 2013, all employees have undertaken
stress level checks, enabling them to identify their own level ofstress and understand their mental condition, allowing them tomake early diagnoses of any mental health issues.
Dai-Dan provides an environment where each employee isable to work with a healthy body and mind to ultimately build
an energetic company.

● Following up on employees working long hours
Dai-Dan provides employees working long hours, as definedby the Industrial Safety and Health Act (those who haveworked more than 100 hours over the legally defined monthly
work hour limit) and those who have worked more than 80
hours of the legally defined monthly work hour limit for threeconsecutive months, with consultations with medical doctors
once per month. Through this, we are managing the healthcondition of our employees and make improvements in linewith advice from doctors.

DAI-DAN REPORT 2014

52

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

Employee review

Performance
review

Employee
behaviour review

Competence
growth review①The level ofachievement overthe past year
compared to thegoal is reviewed.

①Competence
demonstrated toachieve theperformance isreviewed.

①The growth ofcompetence at thestage where theindividual’s base isestablished(approximately five
years after joining
the company) isreviewed.

② Determine
job-type specificoutcomecontribution items.

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

② For those whohave been
assigned todifferent job types,
the review is used
as a checklist.

Message from the Labour Union
Established in 1973, the Dai-Dan Labour Union began its
41st year in August 2014.
The union has all along been engaged in discussions
with the company and undertaking union activities while
recognizing the difficulty of reconciling diverse views
expressed by personnel from many offices in Japan andoverseas.
Moreover, the union leadership turns out at gatherings ineach workplace across the country in order to better
appreciate the authentic views of members.
Union members are making concerted efforts to achieveeven better working conditions and environments.

Meeting
Local Expectations
We undertake a variety of initiatives tomake contributions to the industry,
community and society in our position asa responsible corporate citizen.

● Dissemination of technical information to external parties
In order to contribute to the development of Japan’s building services industry, Dai-Dan supports the running of academic
conferences and dispatches lecturers to external organisations. In particular, Dai-Dan’s engineers are dispatched to external
training centres and educational institutions across Japan as lecturers to provide classes on building service technologies.
Takuma Kishimoto Kazuhiko Matsuura
General Secretary

Chairperson

Atsushi Mogi

Vice-Chairperson■ External organisation memberships and positions�(as of September 2014)

Organisation

Dai-Dan Alumni Association

Society of Heating, Air-Conditioning and SanitaryEngineers of Japan

General Director,
Auditor-secretary

Institute of Electrical Installation Engineers of Japan
Air-conditioning & Plumbing Contractors Associationsof JapanJapan Electrical Construction Association
Association of Japan Instrumentation Industry
Japanese Association of Building Mechanical andElectrical Engineers

87 participants from the East Japan region

98 participants from the West Japan region

A lot of former employees got together again at this year’s party of
the “Dai-Dan Alumni Association.” The party was held for theCentral Japan region in Nagoya in October, for the West Japanregion in Osaka in November and for the East Japan region inTokyo in April. The party began with directors and executive
officers welcoming the members. The participants heard updatesof other members who were not there and watched a flower
bouquet presentation to members who have turned 88 years old ina friendly atmosphere.
Members chatted as enjoyably and cheerfully as they did when
they were working at the company.

46 participants from the Central Japan region

53

DAI-DAN REPORT 2014

Position■ Organisations to which Dai-Dan employees are dispatchedas lecturers

Organisation

Position

Kanto Gakuin University

Part-time lecturer

General Director

Society of Heating, Air-Conditioning and SanitaryEngineers of Japan

Lecturer

General Director

School of Tokyo Electrical Construction Association

Lecturer

Osaka Piping Higher Training School

Lecturer

Advisory committee
memberAdministration
council member

Contribution ofarticlesContribution ofarticlesJapan Industrial Publishing Co., Ltd.

General Director

Technical Information Institute Co., Ltd.

Japan Electrical Engineer Association

General Director

Institute for Aerial Studies Foundation

Lecturer

Osaka Electrical Construction Association

General Director

Japan Organisation for Employment of the Elderly,
Persons with Disabilities and Job Seekers

Lecturer

Aichi Electrical Construction Association

General Director

Tokyo Electrical Construction Association

Auditor-secretary● Signing of the Disaster Prevention Agreement● Assistance through the Dai-Dan Society

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 havealso entered into agreements directly with somemunicipalities and industry organisations, and haveestablished a system that allows 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 participatingin reconstruction efforts of the affected region.

In April 1993, as part of our social contribution activities forour 90th anniversary, the Dai-Dan Society Activity Fund wasestablished in the Osaka Community Foundation. Earningsof the fund are used to support social welfare enhancement
activities.

(cooperation with local communities)

Meeting Local Expectations● Employee review system

Activity Fund

FY2012: Dolphin-watching camp for children with developmental
disorders accompanied by volunteers
FY2013: Support for investigative interview session to prevent
deaths in solitude among single elderly people
FY2014: Development program for at-home care provider
volunteers (former nurses)

DAI-DAN REPORT 201454

● Donations
Community Chest of Japan, National Land Afforestation
Promotion Organization, TABLE FOR TWO International(NPO) and others.
We have also been donating to the areas affected by theGreat East Japan Earthquake every year since immediately
after the disaster happened.

Volunteer Support Program● Social contribution activities (initiatives by each site)

Forestry care and tree planting

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.
Community cleanups
Sites

Names of the projects or details

Hokkaido
Branch• Love Earth Cleanup in Hokkaido 2013 Trash
Pickup Beach Walk (Ishikarihama cleanup)• Volunteer cleanup of a dry riverbed on the
Toyohira River

Tohoku Branch• Sendai City Beautification Support Program(Ichibancho, Aoba Ward)

Niigata Branch• Cleanup in the area surrounding the Niigata
Branch• Shinano River Clean Mission

Tokyo Head Office
General• Cleanup in front of the Tokyo Head Office
Administration• Love River Cleanup Event (Cleanup of a dry
Division (Tokyo)
riverbed on the Tama River)
Sales Division
Industrial Facilities • Yasukuni Shrine cleanup
Department
Yokohama
Branch• Cleanup in the area surrounding the Yokohama
Branch• Port City Yokohama Beautification Cleanup
Project

Chiba Branch• Intensive cleanup on the Makuhari New City
Cleanup Day

Nagoya Branch• Cleanup in the area surrounding the Nagoya
Branch• Nagara River Beautification Campaign• Cleanup in Morishita Park

Hokuriku
Branch• Volunteer Support Program• Picking up Trash and Love the City Campaign(Area surrounding Kohrinbo of Kanazawa Cityand Tsuruga City of Fukui)• Clean Beach Ishikawa

Toyama Branch• Cosmo Earth Conscious Act Clean Campaign
in Iwasehama• Big cleanup project• Our Hometown Toyama Beautification Blitz

Fukui Branch• Fukui City Beautification Partner Scheme (Areasurrounding the Fukui Prefectural Office
Building)• Clean the Sea Campaign

Cleanup in Morishita Park

Sites

Names of the projects or details

Osaka Head Office • Osaka City Beautification Partner Scheme
Internal Audit Office (footpaths in Yotsubashi area)
General• Gomingo Ishikawa Cleanup in the area
Administration
surrounding Tamatebashi
Division• Mt. Kongo Clean Hike
Sales Division(Osaka)• Cleanup activity of the Citizens’ Association for
Better Environment of Yamato Koriyama
Technical
Development• “Cleanup Blitz” held by Ando-cho, Ikoma-gun,Division (Osaka)
Nara
Industrial Facilities • Neyagawa Clean Day Cleanup Scheme
Department (Osaka)
Kobe Branch• Kobe City Old Foreign Settlement Cleanup
Project

Okayama
Branch• Cleanup in the area surrounding the Okayama
Branch• Cleanup in the area surrounding the Korakuen
GardenChugoku
Branch• Volunteer cleanup in the area surrounding the
Chugoku Branch• Peace Memorial Park Cleanup Volunteers• Sports GOMI Pickup in Hiroshima• Volunteer Road
• Road Fureai Month Cleanup

Shikoku Branch• Intensive cleanup at Sunport Takamatsu,
Chuo-dori and other areas

Kyushu Branch• CLEAN UP OUR TOWN 2013
• Ohori Park Cleanup Team• Fukuoka Castle Cleanup Project

Kumamoto
Branch• Pick-and-Love-the-Town Movement• Ozu-machi, Kumamoto Cleanup Activity

Volunteer cleanup in the area surrounding
the Chugoku Branch

Company-wide activities

Sites

Names of the projects or details

Name

Tohoku Branch

Osaki Hachimangu Shrine’ forest revegetation
project

Eco-cap ProjectNiigata Branch

Forest development project (forestry care)

Ishikawa Prefectural Artistic And Cultural
Hokuriku Branch Association Ishikawa Geijutsu no Mori Project(cherry blossom tree planting)

In FY2013, 301,000 caps were collected(equivalent to vaccines for 352 people).

Charity Calendar In January 2014, 1,674 calendars and diaries
Marketwere donated from throughout Japan.

Chugoku Branch Peace Memorial Park Active Volunteers
Technical
Construction Division• Miyoshi Green Support Squad
Technical(Tree planting in woodlands and forests care)
Development Division
Technical Research • Young Pine Tree Growing Campaign
Laboratory

Details

Tanzania
Pole Pole Club

6.63 kg of used stamps were sent in from sites
throughout Japan. They will be used for the tree
planting projects on the world heritage listed
Mount Kilimanjaro in Tanzania. 80 g of usedstamps can be used for the planting of one tree.
(6.63 kg of stamps is equivalent to 82 tree
seedlings.)

Meeting Local Expectations

Dai-Dan contributes financial support for various causes tohelp create and build a better community.
Our contributions include donations to geoenvironmental
protection organisations, university scholarship funds andartistic activities, as well as sponsoring community events inareas across the country where our sites are based.
Part of sales proceeds from beverage vending machines
used by Dai-Dan employees is donated to the Central

Nursing home visit
In June 2013, our Kumamoto Branch staff visited nursing
homes in Kumamoto City.

Red Feather Community Chest street donation
Our Kumamoto Branch staff ran a fund drive at the East Gateof Kagoshima Chuo Station in October 2013.

Repainting scribbled wall
Peace Memorial Park Active Volunteers

In November 2013, a parking lot wall with sprayed scribbles
was repainted white and “Festival (Princess Kaguya)” wasnewly drawn on it by our Kyushu Branch staff.

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

Young Pine Tree Growing Campaign
Love Earth Cleanup in Hokkaido
2013 Trash Pickup Beach Walk
(Ishikarihama cleanup)

Port City Yokohama Beautification
Cleanup Project
Repainting scribbled wall

55

DAI-DAN REPORT 2014

DAI-DAN REPORT 2014

56

Page

■ Consolidated Balance Sheets

57

Consolidated Income Statements

58

Consolidated Statements of Comprehensive Income

58

Consolidated Statements of Changes in Net Assets

59

Consolidated Statements of Cash Flows60(in million yen)(in million yen)

Assets
Accounts

Previous Consolidated Current Consolidated
Accounting Year
Accounting Year(As of March 31, 2013)

Accounts(As of March 31, 2014)

Current assets(As of March 31, 2013)

22,447

Notes receivable, accounts receivable fromcompleted construction contracts and other

24,626

Notes payable, accounts payable forconstruction contracts

56,32457,189

Short-term loans payable

49

−

314

152

0

0

Provision for warranties for completed construction

Deferred tax assets

1,003

1,273

Other

2,446

2,488

(6)

(6)

82,58185,724

Costs on uncompleted construction contracts
Raw materials and supplies

Allowance for doubtful accounts
Total current assets

Previous Consolidated Current Consolidated
Accounting Year
Accounting Year(As of March 31, 2014)

Current liabilities

Cash and deposits

Securities

Noncurrent assets

Net sales of completed construction contracts

121,919

124,445

Income before minority interests

Cost of sales of completed construction contracts

109,177

110,307

Other comprehensive income

12,742

14,137

6,251

5,686

Selling, general and administrative expenses

9,992

9,966

788

1,381

Operating income

2,749

4,171

2,435

3,124

Non-operating income

100

92

Interest income

15

16

Provision for loss on construction contracts

391

130

Dividends income

162

181

Loss reserve related to antimonopoly law−

771

Real estate rent

34

33

6,458

7,346

Insurance fee

9891

56,40558,539383

155

Long-term loans payable

1,378

1,903

Total non-operating income

Non-operating expenses

Advances received on uncompleted
construction contracts

Other
Total current liabilities

Foreign exchange gain

11

3

705

482

154

150

Guarantee commission

12

18

Other

10

13

177

182

3,278

4,471

Income on sales of noncurrent assets−

2

Extraordinary income

−

2

Other

5,417

5,409

Deferred tax liabilities

1,455

2,304

(2,718)(2,862)

Provision for retirement benefits

1,328

−

Buildings and structures, net

2,699

2,546

Net defined benefit liability

Machinery, equipment and vehicles

146

154

Provision for environment measures

(111)

(123)

Provision for overseas investment loss

−

1,398

220

220

2

18

376

352

Interest expenses

Total non-operating expenses

34

31

Tools, furniture and fixtures

766

780

Other

Accumulated depreciation

(587)

(624)

Total noncurrent liabilities

Tools, furniture and fixtures, net

179

155

Land

1,057

1,054

Total property, plant and equipment

3,970

3,788

Capital stock

4,479

4,479

Loss on retirement of noncurrent assets

49

0

417

260

Capital surplus

4,809

4,809

Loss on sales of noncurrent assets−

4

33,774

34,597

Loss on valuation of investment securities

−

0

(660)

(666)

Loss on valuation of golf club membership4

142,40343,221

Provision of loss reserve related to antimonopoly law−

771

Provision of loss reserve on overseas investment−

17

Total extraordinary loss

54

797

Income before income taxes and minority interests

3,224

3,676
1,781

Machinery, equipment and vehicles, net

Intangible assets

Total liabilities

11,007

13,229

0

0

4,761

6,197

61,16764,737

Shareholders’ equity

Retained earnings

Investments and other assets
Investment securities

Long-term accounts payable

Treasury stock

Ordinary income

1−

Accumulated other comprehensive income

−

6,921

Valuation difference on available-for-sale securities

2,412

3,690

Other

2,222

2,086

Foreign currency translation adjustment

40

68

Allowance for doubtful accounts

−

(559)

Income taxes—current

1,007

2,453

3,199

Income taxes—deferred

574

184

131

189

Total income taxes

1,582

1,965

44,98846,609

Income before minority interests

1,641

1,710

106,155

111,347

Net defined benefit assets

Total investments and other assets

Total noncurrent assets

(632)

(665)

Remeasurements of defined benefit plans

19,186

21,574

Total accumulated other comprehensive income

23,57425,623

Minority interests
Total net assets

Total assets

106,155

111,347

Total liabilities and net assets

Minority interests in income
Net income

57

DAI-DAN REPORT 2014

(From April 1, 2012 toMarch 31, 2013)(From April 1, 2013 toMarch 31, 2014)

1,641

1,710

1,847

1,278

28

45

Total other comprehensive income

1,876

1,323

Comprehensive income

3,518

3,034

Comprehensive income attributable to owners of the parent

3,460

2,976

Comprehensive income attributable to minority interests

57

57

Foreign currency translation adjustment(Particulars)

Extraordinary loss2

Prepaid pension costs

Total shareholders’ equity

Valuation difference on available-for-sale securities

Previous Consolidated Current Consolidated
Accounting Year
Accounting Year

Extraordinary income

6,587

Deferred tax assets

Accounts(From April 1, 2013 toMarch 31, 2014)

Gross profit on completed construction contracts

Income taxes payable■ Consolidated Statements of Comprehensive Income (in million yen)

(From April 1, 2012 toMarch 31, 2013)

40,007

Accumulated depreciation

Accumulated depreciation

Accounts(in million yen)Previous Consolidated Current Consolidated
Accounting Year
Accounting Year39,979Noncurrent liabilities

Property, plant and equipment
Buildings and structures■ Consolidated Income Statements

Liabilities and net assets

Financial Report

Financial Report

Consolidated Balance Sheets

42

39

1,599

1,670

DAI-DAN REPORT 201458

■ Consolidated Statements of Changes in Net Assets■ Consolidated Statements of Cash Flows■ Previous Consolidated Accounting Year (From April 1, 2012 to March 31, 2013)

Accumulated othercomprehensive income

Balance at the beginningof current period

4,479

Capitalsurplus

4,809

Retainedearnings

32,889Valuation
Total
difference on
Treasuryshareholders’ available-forstock
equitysale securities

(647)

564

41,531―591

73

Total net
assets42,197

(714)

(714)
1,599

Net income
Purchase of treasury
stock

1,599

3,224

3,676

Depreciation and amortization

402

425

Increase (decrease) in allowance for doubtful accounts

(186)

33

Increase (decrease) in provision for retirement benefits(104)(1,328)Current net income before tax adjustments, etc.

−

1,268

(177)

(198)

Interest expenses

154

150

(714)

Increase (decrease) in reserve for overseas investment loss−

16

Loss (gain) on valuation of investment securities

−

0

1,599

Loss (gain) on sales of noncurrent assets−

2

Loss on retirement of noncurrent assets

49

0Increase (decrease) in loss reserve related to antimonopoly law

−

771

(14)

(14)

(14)

1

1

1

Increase (decrease) amount of net defined benefit liability

Loss on valuation of golf club memberships

Disposal of treasury
stock

0

Net changes of items otherthan shareholders’ equity
Total changes of items
during the period―

Balance at the end ofcurrent period

4,479

1,847

13

―

1,861

57

1,919

0

885

(13)

871

1,847

13

―

1,861

57

2,790

4,809

33,774(660)

42,403

2,412

40

―

2,453

131

44,988Decrease (increase) in notes and accounts receivable—trade

Capitalstock

Balance at the beginningof current period

4,479

Capitalsurplus

4,809

Retainedearnings

33,774(in million yen)

Accumulated othercomprehensive income

Valuation
Total
difference on
Treasuryshareholders’ available-forstock
equitysale securities(660)

42,403

2,412

Total
Minority
RemeasureForeign
accumulated
ments ofcurrencyinterests
otherdefinedtranslation
comprehensive
adjustment benefit plansincome

40

―

2,453

131

Total net
assets

152

162

(780)

(141)

Decrease (increase) in other noncurrent assets

(657)

6,586

Increase (decrease) in net defined benefit asset−(7,666)

Increase (decrease) in notes and accounts payable—trade
Increase (decrease) in advances received on uncompleted construction contracts

(847)

(847)

1,670

Net income
Purchase of treasury
stock

(5)

44,988

(847)

1,670

1,670

(5)

(5)

Disposal of treasury
stock

−

Net changes of items otherthan shareholders’ equity

1,278

Total changes of items
during the period――

Balance at the end ofcurrent period

4,479

4,809

27

(559)

746

57

Subtotal

689

(126)

695

(60)

(24)

1,952

4,265

177

198

Interest expenses paid

(153)

(150)

Income taxes (paid) refund(714)(1,195)

Net cash provided by (used in) operating activities

1,261

3,117

803

823

(5)

817

1,278

27

(559)

746

57

1,621

34,597(666)

43,221

3,690

68

(559)

3,199

189

46,609Proceeds from withdrawal of time deposits

27

27

Payments into time deposits

(27)

(27)

Purchase of securities

(49)

−

Proceeds from sales and redemption of securities

99

49

(845)

(125)

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment−

3

Purchase of investment securities

(3)

(255)

2

30

Payments of loans receivable

(30)

(4)

Collection of loans receivable

34

4

Expenditures by acquiring of other noncurrent assets

(68)

(68)

Proceeds from sales and redemption of investment securities

Revenue by sales of other noncurrent assets

121

192

Net cash provided by (used in) investing activities

(740)

(172)

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

32,38034,570Decrease in short-term loans payable(32,230)(35,070)

Proceeds from long-term loans payable

1,800

2,600

Repayment of long-term loans payable(2,177)(2,139)

(14)

(5)

1

−

Cash dividends paid

(714)

(847)

Net cash provided by (used in) financing activities

(955)

(892)

Proceeds from sales of treasury stock

DAI-DAN REPORT 2014

27

30

Interest and dividends income received

Purchase of treasury stock59(1,255)

Net cash provided by (used in) investing activities

Changes of items during
the period
Dividends from surplus

1
(884)

Decrease (increase) in other current assets

Increase (decrease) in other noncurrent liabilities■ Current Consolidated Accounting Year (From April 1, 2013 to March 31, 2014)

4
1,283

Decrease (increase) in costs on uncompleted construction contracts

Increase (decrease) in other current liabilities

Shareholders’ equity(From April 1, 2013 toMarch 31, 2014)

Interest and dividends income

Changes of items during
the period
Dividends from surplus(From April 1, 2012 toMarch 31, 2013)

Net cash provided by (used in) operating activities

Total
Minority
RemeasureForeign
accumulated
ments ofcurrencyinterests
otherdefinedtranslation
comprehensive
adjustment benefit plansincome27

Accounts

Current Consolidated
Accounting Year

Financial Report

Shareholders’ equity
Capitalstock(in million yen)(in million yen)Previous Consolidated
Accounting Year

Effect of exchange rate change on cash and cash equivalents

217

126

Net increase (decrease) in cash and cash equivalents

(215)

2,178

Cash and cash equivalents at beginning of period

22,63522,420Cash and cash equivalents at end of period

22,42024,598DAI-DAN REPORT 201460

Third Party Opinion

Site List

This opinion statement expresses views on this report. The statement has been completed by going
through 30 questions in cooperation with attorneys (Daisuke Inayoshi, Ryota Matsui and Yasuko Fujii)
belonging to the Kinki Branch of the Japan Federation of Bar Associations based on the associations’“Corporate Social Responsibilities (CSR) Guideline 2009.” The process for completing the statement
also included reviews of internal regulations and other related documents, as well as interviews withdepartment managers.
Dai-Dan’s continuous efforts made this year in its PDCA cycle-based initiatives and feedback of its
employees’ opinions, including responses of those who read the report, deserve recognition as a
noteworthy challenge to firmly establishing their CSR activities. Additionally, from this year, financial
information has been incorporated into the report. I expect the company to further exercise its ingenuity
in enhancing the significance and the role of this report.

● Initiatives to improve workplaceenvironments for employees

The company has proactively enhanced its various systemsof support for young employees (Dai-Dan Mentor System),holidays, follow-up of employees working long hours, mental
health measures including the introduction of stress checks,
continuous employment and so on, to ensure that its
employees can work on continual basis in a healthy andcomfortable environment. It should be noted that these
initiatives have already achieved certain results. This year’s
report has also incorporated the viewpoint of gender equality
as it includes a new section entitled “Workplace where
women are active” that highlights women engineers. I hope
they will strategically consider building a framework that
promotes the appointment of women to key positions.
Moving forward, I expect that conscious efforts will betaken in providing workplaces where employees can work ina wide variety of working styles, encouraging male
employees to take child-rearing leave and promoting careleave education.

● Initiatives to conserve the environment
Dai-Dan’s unique CSR activities supported by its
sophisticated technologies are to be highly rated as they are
performed continuously based on the PDCA cycle.
This year, their self-assessment was rather strict, but theassessment should be appropriately analysed and madeuseful in target setting. When setting targets and presenting
achievement levels, I anticipate careful consideration will begiven in the selection of target items, etc. in light of theirunderstanding of their stakeholders, changes in social andeconomic needs, as well as technological viewpoints.

Headquarters Organisations
Name

Tsuneo Yamada

Attorney/Former
Chairman of Osaka Bar
Association
Director of Japan CSR
Promotion Association
Branch Manager of Kinki
BranchIn the previous Third Party Opinion, I gave a high mark to thecompany for the way top management was highly aware ofcompliance and their proactive efforts to ensure its permeationand establishment. However, it is extremely regrettable that an
antitrust case involving bid-rigging by industry-leading
companies including Dai-Dan occurred last year. I must admitthat the compliance awareness was not fully permeated andestablished across the company. Nevertheless, their proactive
disclosure of such negative information to their stakeholders is
recognised as a sincere attitude toward reoccurrence
prevention. Actually, the company has set up a Compliance
Office and Compliance Committee to absorb outside opinions.
Moreover, they swiftly took reoccurrence prevention
measures, such as to create a Compliance Month andenhance training with lecturers invited from outside thecompany. These efforts are to be recognised. I hope they willcontinue efforts for the permeation and establishment ofcompliance awareness in the company.
In order to eliminate cases of bid-rigging, the industry’s
structures and practices must be improved. I anticipate thecompany’s initiatives to be adopted by others throughout theindustry.
As for training, it is advisable to be creative by, for instance,
providing opportunities where trainees can place themselvesin the position of other persons through role-playing games
based on difficult-to-judge or similar cases in the past. At thesame time, continuous post-training surveys are necessary to
see whether or not what was learned from training is being put
into practice at work by checking the levels of employee
understanding using questionnaires or other means. I hopethat the PDCA cycle will be established and utilised in thisarea.

Reflecting on the Third Party Opinions

61

DAI-DAN REPORT 2014

Telephone
NumberAddress

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,049-258-1891
Saitama Prefecture

PostalCode

Name

Technical
Development
Division
Technical
Research
Laboratory
Industrial
Facilities
Department

Telephone
NumberAddress

354-0044 390 Kita-Nagai, Miyoshimachi,
Iruma-gun, Saitama Prefecture049-258-1891

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

354-0044

102-8175 2-15-10 Fujimi, Chiyoda-ku, Tokyo

03-5276-4710

Branch/Office Organisations● Initiatives to ensure compliance

I would like to express my sincere appreciation for the opinions and suggestions regarding our
DAI-DAN REPORT 2014 provided again this year by attorney at law Mr. Tsuneo Yamada in the form ofa Third Party Opinion.
This year’s report includes financial and non-financial data with an aim to make it a comprehensive
corporate report.
We will remain committed to further enhancing our compliance system and working on corporate
activities toward achieving the development of a better environment and stronger communities as set
forth in our Corporate Principles.

PostalCode

Name

Telephone
Number001-0020

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

011-716-9116

ObihiroBranch

080-0010

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

0155-25-3559

Hakodate
Branch041-0851 4-17-40 Hondori, Hakodate City, Hokkaido 0138-55-7086

Name
Osaka Head
OfficePostalCode

Telephone
NumberAddress

550-8520 1-9-25 Edobori, Nishi-ku, Osaka City

Tenri Branch 632-0012

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

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

06-6441-8231
0743-63-1231
078-221-7777

Tohoku Branch980-0811

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

022-225-7901

Kyoto
Branch604-8186

Urbanex Oike Bldg. East Wing 2F 361-1 Umeya-cho,075-251-6411
Kurumayaoike-sagaru, Nakagyo-ku, Kyoto City

Aomori
Branch030-0802

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

017-773-1582

Wakayama
Branch640-8203

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

Akita Branch 010-0951

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

018-824-6491

Shiga
Branch

527-0025

Janty 21 Room 11, 6-55 Yokaichi Higashihonmachi,
0748-25-5400
Higashi-omi City, Shiga Prefecture

Morioka
Branch020-0032

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

Okayama
Branch

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

Fukushima
Branch

960-8031

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

Chugoku
Branch

730-0812 2-22 Kakomachi, Naka-ku, Hiroshima City 082-241-4171

Yamagata
Branch

990-0043

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

023-634-2620

Yamaguchi
Branch

754-0011

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

083-976-0121

San-inBranchHeights Shalom Room 103 2-29-13
690-0015
Agenogi, Matsue City

0852-27-5890

Shikoku Branch 760-0018 11-20 Tenjinmae, Takamatsu City

087-861-6030

Niigata Branch

950-0088 2-4-3 Bandai, Chuo-ku, Niigata City

025-247-0201

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

03-3261-8231

073-433-9431

086-223-3106

048-644-8468

Matsuyama
Branch

790-0065 2-208-1 Miyanishi, Matsuyama City089-922-7161

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

Kochi
Branch

780-0088 10-16 Kitakubo, Kochi City

088-884-8231

321-0953

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

Tokushima
Branch

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

IbarakiBranch300-0037

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

Kyushu Branch 810-0023 3-1-24 Kego, Chuo-ku, Fukuoka City

092-771-4361

Chiba
Branch

261-0023

NTT Makuhari Bldg. 25F 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
BranchNisseki Yokohama Bldg. 24F 1-1-8
231-0062
Sakuragi-cho, Naka-ku, Yokohama City

045-683-1050

MiyataBranch680-1 Shiromaru, Miyawaka City,
823-0016
Fukuoka Prefecture0949-33-2602

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

052-973-4750

Saga Branch 841-0031

Kanto
BranchGINZA YAMATO 3 Bldg. 3F 1-10-2
330-0854
Sakuragi-cho, Omiya-ku, Saitama City

Gunma
Branch

371-0805

Tochigi
BranchNagoya Branch 461-0005

Sungarden Yarita Room101 436-1
Yaritamachi Tosu City, Saga Prefecture0942-84-2350

0565-28-1841

Nagasaki
BranchDejima Asahiseimei Aoki Bldg. 8F 1-14
850-0027
Dejimamachi, Nagasaki City

095-828-0772

ToyotaBranch1-20 Akebono-cho, Toyota City, Aichi
471-0835
Prefecture

MikawaBranch

448-0011

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

0566-27-0324

Oita Branch

870-0033

Matsumoto Bldg. Room 402 1-3-22
Chiyomachi, Oita City

097-532-4350

NaganoBranch380-0824

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

026-228-3820

Miyazaki
Branch

880-0933

Inoue Bldg. Room 201 2189-2
Kusabazaki, Otsubo-cho, Miyazaki City

0985-54-6382

MatsumotoBranch390-0811

Orii Bldg. 2F 1-1-2 Chuo, Matsumoto City,
0263-33-7016
Nagano Prefecture

Kagoshima
Branch

890-0052

Arima Bldg. Room 201 26-5
Uenosono-cho, Kagoshima City

099-256-3662

Shizuoka
Branch422-8067

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

Okinawa
Branch

900-0015

Arute Bldg. Naha 4F 3-15-9 Kumoji, Naha
098-868-1700
City

Mie Branch514-0004

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

Gifu Branch

500-8175

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

ToyamaBranchHirokazu Kawakubo

Address

Hokkaido
Branch

Hokuriku
BranchDirector Senior Executive Corporate Officer
Head of General Administration Division

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

010-6562218488

920-0902 1-6-15 Owari-cho, Kanazawa City

076-261-6147

Hong Kong
Branchー

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

010-85222898888

930-0019 1-10-20 Yayoi-cho, Toyama City

076-441-3371

Philippine
Branchー

FABTECH Building, 1229 Quezon Avenue,
1104 Quezon City, Metro Manila, Philippines

010-632413-3333

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

0776-23-2166

Malaysia
BranchーNo.75-2 Jalan SS 23/15, Taman SEA,
47400 Petaling Jaya, Selangor, Malaysia

010-60-378055443

Fukui Branch 910-0005* The green shading indicates regional headquarters

DAI-DAN REPORT 2014

62

DAI-DAN Co., Ltd.

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

DAI-DAN Co., Ltd. DAI-DAN REPORT 2014 PROJECT
1-9-25 Edobori, Nishi-ku, Osaka-city 550-8520 Japan
TEL. 06-6447-8000 http://www.daidan.co.jp/
Published in December 2014