DAI-DAN REPORT 2021-2022 - QUICK Money World

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DAI-DAN REPORT 2021-2022 - QUICK Money World
DAI-DAN CO., LTD.

                                                                      DAI-DAN REPORT 2021–2022
                                                                                                 DAI–DAN
                                                                                                 REPORT
                                                                                                 2021–2022
            DAI-DAN CO., LTD.
         https://www.daidan.co.jp/

    For any feedback or inquiries relating to this report,
                      please contact
DAI-DAN CO., LTD. DAI-DAN REPORT 2021 PROJECT
     1-9-25 Edobori, Nishi-ku, Osaka City 550-8520 Japan
                    TEL. +81-6-6447-8000
               E-mail: reportinfo@daidan.co.jp
                                                                        DAI-DAN CO., LTD.

                                         Published in November 2021
DAI-DAN REPORT 2021-2022 - QUICK Money World
Contents
          Dai-Dan’s 118-year History                                                                                                                                                                                                   2012
                                                                                                                                                                                                                                                                             Dai-Dan’s 118-year History ......................................................................................
                                                                                                                                                                                                                                                                             A Message from Management ...............................................................................
                                                                                                                                                                                                                                                                             Dai-Dan Group Sustainability Policy ..................................................................
                                                                                                                                                                                                                                                                             Our Services .......................................................................................................................
                                                                                                                                                                                                                                                                                                                                                                                                                    01
                                                                                                                                                                                                                                                                                                                                                                                                                    03
                                                                                                                                                                                                                                                                                                                                                                                                                    03
                                                                                                                                                                                                                                                                                                                                                                                                                    04

           As a building services engineering and installation provider, Dai-Dan has continued to use                                                                                                                                                                        Featured Interview with President Fujisawa ......................... 05
                                                                                                                                                                                             2011
           its advanced technology to add comfort and vibrancy to interior spaces where people gather.                                                                                                                                                                       Long-Term Vision Stage 2030 ........................................................................ 09
           For more than a century, we have been expanding the breadth of our expertise and                                                                                                                                                                                  Mid-Term Management Plan Stage 2030 Phase 1《Preparation Stage》.... 10
           securing the trust of our customers.                                                                                                                                                                                        JP Tower, Tokyo            June       Materiality at Dai-Dan ............................................................................................ 11
                                                                                                                                                                                                                                                                  2021
           At the same time, we are helping to achieve greater harmony with nature.                                                                                                                                                               February
                                                                                                                                                                                               CREATE, Singapore                                    2020                     Feature: Steering Our Way to Sustainable Growth ........ 13
                                                                                                                                                                                                                                        June                                                       Material Issues and Progress of Corresponding Efforts
                                                                                                                                                                                                                                        2019                                   Contributing to a carbon-free society .................................................. 13
                                                                                                                                                                                                                          May
           1907                                    1923                                  1964                                                                                                                             2019                                                 Responding to changes in the business environment via DX .... 15
                                                                                                                                                                                                           May                                                                 Achieving high-quality medical environments .............................. 17
                                                                                                                                                                                                           2017
                                                                                                                                                                                            May
                                                                                                                                                                                                                                                          Enefice Hokkaido   Recently Completed Noteworthy Projects ..................................................... 19
                                                                                                                                                                                                                                                                 TM
                                                                                                                                                                                            2016
                                                                                                                                                                                                                                                          (new Hokkaido      Dai-Dan’s Overseas Business ................................................................................ 21
                                                                                                                                                                                                                                                          Branch office
                                                                                                                                                                                                                                                          building) is
           Sumitomo General Head                   Nagoya City Library, Aichi            Nippon Budokan, Tokyo                                                                                                                                            completed.         Dai-Dan Innovation.............................................................................................. 22
           Office Building, Osaka
                                                                                                                                                                                                                                                Cellab Healthcare              Planning stage (planning and design) ...............................................................                                 23
                                                                                                                                                                                                                                                Service Co., Ltd. is           Construction stage (installation) ...........................................................................                        24
           1909                                    1931                                                                                                               April                                                                     established.                   Operations stage (production activities/management/maintenance) .....                                                                24
                                                                                                                                                                      2013                                                                                                     Technical Research Laboratory............................................................................                            25
                                                                                                                                                       March                                                                          Singapore Branch obtains the
                                                                                                                                                       2003                                                                           certification of ISO 45001.
                                                                                                                                          August                                                                                                                             Dai-Dan Engineering ......................................................................................... 26
                                                                                                                                           1993                                                                      Enefice Shikoku (new Shikoku Branch                       Industrial Applications ................................................................................................ 27
                                                                                                                                                                                                                                 TM

                                                                                                                             April                                                                                   office building) is completed.                            Medical Applications................................................................................................... 28
                                                                                                                             1987
                                                                                                              October                                                                                                                                                          ICT Applications ............................................................................................................ 29
           Bank of Japan Building,                 Bank of Japan Head Office                                                                                                                             The company is registered
           Hakodate Branch, Hokkaido               Building, Tokyo                                             1984                                               New Research Center                    as a ZEB Planner.
                                                                                                February                                                          is completed in                                                                                            Dai-Dan’s Practical Competence ....................................................... 30
                                                                                                  1983                                                            Technical Research        Enefice Kyushu (new Kyushu Branch office building)
                                                                                                                                                                                                    TM

                                                                                                                                                                                                                                                                               Introducing Our Installations .................................................................................. 31
                                                                                  January                                                                         Laboratory.               is completed.
                                                                                                                                                                                                                                                                               Enhancing Our Installation Expertise and
                                                                                    1979
                                                                    January                                                                          The company celebrates                                                                                                    Ability to Provide Design Solutions .................................................................... 34
                                                                      1965                                                                           its 100th anniversary.
                                                    December
                                                      1946                                                                              The company lists its stock on the first                                                                                             FY2020 CSR/ESG Targets and Performance ...................... 35
                                       September                                                                                        section of Tokyo Stock Exchange.                                                                                                       Environmental Contribution ....................................................................................                      37
                                          1943                                                                                                                                                                                                                                 Meeting Customer Expectations .........................................................................                              39
                        October                                                                                            The corporate name is changed to                                                                                                                    Initiatives with Subcontractors ..............................................................................                       40
                         1933                                                                                              DAI-DAN CO., LTD.
                                                                                                                                                                                                                                                                               Valuing Our Employees .............................................................................................                  43
          March
          1903                                                                                               Technical Research Laboratory is constructed at                                                                                                                   Partnering with Hosting Communities ..............................................................                                   45
                                                                                                             Miyoshimachi, Iruma-gun, Saitama Prefecture.                                                                                                                      Fair and Transparent Business Practices .......................................................                                      47

                                                                                                The building of head office is constructed at the current place                                                                                                              Dai-Dan’s Businesses
                                                                                                (Edobori, Nishi-ku, Osaka City).                                                                                                                                              Corporate Profile / Financial Highlights ........................................................... 51
                                                                                 Singapore Branch is opened.
                                                                                                                                                                                                                                                                             Third Party Opinion ........................................................................................................ 53
                                                                   The corporate name is changed to                                                                                                                                                                          Global Network ................................................................................................................. 54
                                                                   Osaka Denki Danbo Co., Ltd.
                                                    The corporate name is changed back to Osaka
                                                    Denki Shokai/Osaka Danbo Shokai Co., Ltd.                       1994                                 2010                                  2015                                    2017
                                                                                                                                                                                                                                                                                   Editorial Policy
                                       The corporate name is changed to                                                                                                                                                                                                            Since fiscal 2008, we have been publishing our CSR report as a
                                       Osaka Denki Tekkan Kogyo Co., Ltd.                                                                                                                                                                                                          means of informing our stakeholders of our business operations and
                                                                                                                                                                                                                                                                                   CSR initiatives. In fiscal 2014, we renamed this publication the
                       Osaka Denki Shokai/                                                                                                                                                                                                                                         Dai-Dan Report. Compiled as an integrated corporate report, it
                       Osaka Danbo Shokai Co., Ltd.                                                                                                                                                                                                                                contains both financial and non-financial data in addition to the
                       is incorporated.                                                                                                                                                                                                                                            conventional content.
                                                                                                                    Control Tower and Passenger          Labs and Center Building,             New K-1 Building, Nichia                GINZA SIX, Tokyo
          Founded.                                                                                                  Terminal, Kansai International       Okinawa Institute of Science and      Corporation, Tokushima                                                              Scope of This Report
                                                                                                                    Airport, Osaka                       Technology Graduate University,
                                                                                                                                                         Okinawa
                                                                                                                                                                                                                                                                                 ・Target organization
                                                                                                                                                                                                                                                                                  This report covers the operations of DAI-DAN CO., LTD. All financial
                                                                                                                                                                                                                                                                                  information is reported on a consolidated basis.
                                                                                1974                                1996                                 2010                                                     2018
                                                                                                                                                                                                                                                                                 ・Period
                                                                                                                                                                                                                                                                                  This report covers the fiscal year spanning April 1, 2020, to March
                                                                                                                                                                                                                                                                                  31, 2021. Some data refers to activities after April 1, 2021.

                                                                                                                                                                                                                                                                                   Report Guideline References
                                                                                                                                                                                                                                                                                   ISO 26000
                                                                                                                                                                                                                  msb Tamachi Station Tower S /                                    Ministry of the Environment Environmental Reporting Guidelines
                                                                                Supreme Court Office                M-Wave Nagano Olympic                Haneda Airport Terminal 2,                               Pullman Tokyo Tamachi, Tokyo                                     (2018)
                                                                                Building, Tokyo                     Memorial Arena, Nagano               Tokyo                                                                                                                     GRI Sustainability Reporting Standards

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DAI-DAN REPORT 2021-2022 - QUICK Money World
A Message from Management

                                                                                        A Message from Management
                                                                                                                                                                                                                                               Our Services
                                                                                        Inspired by Light, Air & Water

                                                                                                                                                                                                                                                                                                                                                               Our Services
                                                                                        At Dai-Dan, our duty has always been to provide people with safe, comfortable places in which to live and work,                                      Electrical installations
                                                                                        while also giving due consideration to the environment.
                                                                                                                                                                                                                                                Electricity is what brings a building to life, and it is our electrical installations
                                                                                        This 118-year journey is one we have shared with a variety of stakeholders, not only our customers, but also the
Inspired by Light, Air & Water / Dai-Dan Group Sustainability Policy

                                                                                                                                                                                                                                                that support its supply, creation, and storage.
                                                                                        shareholders, investors, subcontractors, employees, and communities we have met along the way.                                                              Our installations are comprised of such varied elements as high-efficiency

                                                                                                                                                                                                                                                                                                                                                               Electrical installations / Air conditioning installations / Plumbing installations
                                                                                                                                                                                                                                                power receiving and transforming equipment, solar power systems for
                                                                                        We believe that continuing to meet their expectations will lead to raising our corporate value in a sustainable way.                                    generating electrical power, LED lighting fixtures that help to lower power
                                                                                        Going forward, we hope we can count on your continued understanding and support for our activities.                                                     consumption, storage batteries for optimizing power usage, and IoT-driven
                                                                                                                                                                                                                                                control systems.
                                                                                                                                                                                                                                                    Dai-Dan assembles the various pieces of equipment into electrical
                                                                                                                                                                                                                                                systems that serve the intended purpose whether to build or retrofit buildings
                                                                                                                                                                                                                                                with ZEB technologies, ready buildings for disasters as part of business
                                                                                                                                                                                                                                                continuity planning, or other need.

                                                                                                                                                                                                                                          Air conditioning installations
                                                                                        Shohei Kitano                                                                                           Ichiro Fujisawa                                 It is our air conditioning installations that maintain optimal levels of temperature,
                                                                                                                                                                                                                                                humidity, and airflow to create high-quality living or working environments.
                                                                                        Representative Director                                                                                 Representative Director
                                                                                                                                                                                                                                                     They vary widely in size and performance from typical AC systems for office
                                                                                        Chairman                                                                                                President
                                                                                                                                                                                                                                                buildings to precision models required by semiconductor manufacturing
                                                                                        DAI-DAN CO., LTD.                                                                                       DAI-DAN CO., LTD.
                                                                                                                                                                                                                                                plants. Dai-Dan has advanced technologies and vast experience with planning,
                                                                                                                                                                                                                                                designing and installing air conditioning systems. In fact, the large data centers
                                                                                                                                                                                                                                                that underscore today’s internet society adopt many of our technologies—for
                                                                                                                                                                                                                                                example—to introduce cold outdoor air in order to reduce air conditioning load
                                                                                                                                                                                                                                                and to effectively direct cooled air towards IT equipment. Moreover, we can tap
                                                                                                                                                                                                                                                renewable geothermal energy as a heat source in order to efficiently manage a
                                                                                                                                                                                                                                                building’s energy balance to meet ZEB criteria.

                                                                                                                                                                                                                                             Plumbing installations
                                                                                                                                                                                                                                                Our plumbing installations both supply water that is high-quality and work to
                                                                                                                                                                                                                                                recycle it.
                                                                                                                                                                                                                                                     In this field, we are putting our efforts into purification to prevent the

                                                                                                              Dai-Dan Group Sustainability Policy
                                                                                                                                                                                                                                                contamination of rivers and oceans and we also pursuing greater reuse of
                                                                                                                                                                                                                                                water, which is a limited resource. Our environmentally friendly plumbing
                                                                                                                                                                                                                                                equipment covers such processes as purifying contaminated water or
                                                                                                                                                                                                                                                wastewater from factories, or transporting supplies of water, whether hot or
                                                                                        The management principles that guide the Dai-Dan Group explicitly challenge us to “create value for our customers while                                 cold, or gas.
                                                                                        contributing to the development of a better environment and stronger communities.” Those principles underscore the Corporate                                 In addition to the above, the Plumbing Department also takes charge of
                                                                                                                                                                                                                                                firefighting equipment. As a company that is responsible for safety, we
                                                                                        Code of Ethics on which we seek the trust of our stakeholders and the business activities through which we strive to solve the
                                                                                                                                                                                                                                                constantly strive to create installation technologies that can be relied on.
                                                                                        problems facing society and the environment, and contribute to the realization of affluent but sustainable ways of life. In doing                            Water is something that we take for granted in our daily lives, and Dai-Dan
                                                                                        what we can to help steer society towards true sustainability, we at Dai-Dan are committed to:                                                          is putting its technologies to work to ensure that does not change.

                                                                                        1. Finding and applying light, air and water technologies that protect the global and local environments while providing            The Dai-Dan Group—centered on renovations and maintenance
                                                                                             comfortable work and living spaces by reducing environmental loads.

                                                                                        2. Fostering a corporate culture that respects the human rights and individuality of all persons by welcoming diversity into the
                                                                                             workplace.

                                                                                        3. Ensuring full compliance with laws, regulations and agreements by continuously improving our systems of corporate
                                                                                             governance.

                                                                                        4. Maintaining an open dialog with stakeholders that allows us to meet social expectations and demands, and build strong
                                                                                             bonds of trust with all.

                                                                                        5. Sharing this policy with group subsidiaries and subcontractors so that we can promote sustainability initiatives in unison.

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DAI-DAN REPORT 2021-2022 - QUICK Money World
Featured Interview with President Fujisawa

                                                                                                                               Helping to bring about a richer,
with President Fujisawa

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    with President Fujisawa
     Featured Interview

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Featured Interview
                                                                                                                               more sustainable society by refining our light, air,                                                                                                                                         Mizutani: Dai-Dan announced its long-term vision in February
                                                                                                                                                                                                                                                                                                                            this year and selected six areas of materiality, i.e., important
                                                                                                                                                                                                                                                                                                                                                                                                Fujisawa: That’s right. In future, we will push for more analysis
                                                                                                                                                                                                                                                                                                                                                                                                on the impact climate change will have on our business and

                                                                                                                               and water technologies
                                                                                                                                                                                                                                                                                                                            issues for management, by evaluating the impact on society          disclose that information. With regards to encouraging the
                                                                                                                                                                                                                                                                                                                            and the environment of your corporate activities. The first         spread of ZEBs, we will go even further in our promotion
                                                                                                                                                                                                                                                                                                                            concerns environmental issues, with net Zero Energy Buildings       efforts than we have been. For ourselves, we are making
     Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies
                                                                                                                                                                                                                                                                                                                            (ZEBs) as its central theme. I feel that many companies don’t       progress with switching our older branch offices over to ZEBs;
                                                                                                                               In 2023, Dai-Dan will reach its 120th anniversary.
                                                                                                                                                                                                                                                                                                                            clearly address the question of how environmental initiatives tie   so far, we have completed works in Kyushu, Shikoku, and
                                                                                                                               Securities analyst Toshiya Mizutani, a Dai-Dan shareholder and investor, spoke to President Ichiro Fujisawa about the                                                                        in to corporate value; how do you position environmental            Hokkaido, now we’re turning our attention to Hokuriku.
                                                                                                                               group’s vision and strategies for the future.                                                                                                                                                issues within managing the company?                                 Mizutani: It’s not just in the construction part either, you’re
                                                                                                                                                                                                                                                                                                                            Fujisawa: This goes back to what I said a moment ago, but I         verifying that energy input and output for actual operations are
                                                                                                                                                                                                                                                                                                                            think carbon neutrality (CN)—moving from a low-carbon               net zero, too.
                                                                                                                                                                                                                                                                                                                            society to a carbon-free one—is a major theme for us as a           Fujisawa: Yes. We believe that making smaller buildings ZEBs
                                                                                                                                                                                                                                                                                                                            building services engineering and installation provider. On that    in this way is a key way of achieving CN. That we are gaining
                                                                                                                                                                                                                                                                                                                            basis, we will first go even further to achieve CN throughout       experience with these construction projects at the same time
                                                                                                                                                                                                                                                                                                                            our business activities, such as through energy-saving              as accumulating expertise on the business operations front is
                                                                                                                                                                                                                                                                                                                            measures at our offices or by introducing eco-friendly vehicles.    becoming one of our strengths. Publicizing and passing these
                                                                                                                                                                                                                                                                                                                            Mizutani: I saw that you have also announced your support           on as we apply them to projects across the country will help to
                                                                                                                                                                                                                                                                                                                            for the Task Force on Climate-related Financial Disclosures         promote ZEBs even further.
                                                                                                                                                                                                                                                                                                                            (TCFD) guidance.

                                                                                                                                                                                                                                                                                                                             In developing environments where female employees can actively participate, DX now plays a major role

                                                                                                                                                                                                                                                                                                                            Mizutani: Sticking with the theme of the environment, I’d like      Fujisawa: That’s right. While the proportion of female
                                                                                                                                                                                                                                                                                                                            to hear your thoughts on working environments where people          employees has risen, most of that increase is in specialist jobs,
                                                                                                                                                                                                                                                                                                                            want to work, and which pay due consideration to health and         such as in design or as CAD operators, and in administrative
                                                                                                                                                                                                                                                                                                                            safety.                                                             positions. By promoting DX, we’ve been able to connect job
                                                                                                                              Ichiro Fujisawa                                                                                 Toshiya Mizutani                                                                              Fujisawa: Last year, we formed a committee to look at ways of       sites and offices remotely, and it has made it possible for
                                                                                                                              Representative Director & President, DAI-DAN CO., LTD.                                          Securities Analyst                                                                            improving work-life balances within the company. Both the           employees to do some job site tasks in the office. This has
                                                                                                                               April 1979   Joined the company.                                                               May 2000     Joined KOKUSAI Securities (now Mitsubishi UFJ Morgan Stanley
                                                                                                                               June 2009    Director, Corporate Officer, Head of Industrial Facilities Division, and                       Securities) where he worked corporate and industry surveys, and was              committee and our change to the age of retirement to 65 are         meant that female office workers have, in a way, taken
                                                                                                                                            Manager of Technical Department                                                                responsible for the construction industry in particular (an industry for which
                                                                                                                               April 2013   Director, Senior Executive Corporate Officer, in charge of East Japan Area, and                he has been responsible for more than 30 years)                                  key examples for that topic.                                        responsibility for certain aspects of progress made at job sites.
                                                                                                                                            General Manager of Tokyo Head Office                                              2007–2017 For 11 years in a row, he came in first place in rankings produced by an
                                                                                                                               April 2018   Representative Director and President (currently)                                              American financial magazine (in 2016, he was inducted into their Hall of Fame)   Mizutani: Particularly in the case of publicly listed companies,    As job sites are where the construction industry derives its
                                                                                                                                                                                                                              April 2019 onwards Active as a workplace management consultant
                                                                                                                                                                                                                                                                                                                            that those companies that have a large proportion of female         profits, having female employees be part of our main business,
                                                                                                                                                                                                                                                                                                                            directors or managers do well in terms of share value and           has had a dramatic effect on productivity.
                                                                                                                                                                                                                                                                                                                            performance is something we see all over the world. How do          Mizutani: That’s fantastic.
                                                                                                                                 For management, using ZEBs to resolve environmental issues is the top priority                                                                                                             you view developing environments in which female employees          Fujisawa: Full-scale cooperation between our job sites and
                                                                                                                                                                                                                                                                                                                            can play an active role?                                            offices via remote communications first began in 2017. That
                                                                                                                               Mizutani: During my more than 30 years following various                                       energy consumption makes up a large proportion of the total                                   Fujisawa: I’m aware that this is an issue in the construction       was four years ago, making us one of the first in the industry to
                                                                                                                               companies as a securities analyst, I get the impression that                                   used by society as a whole. As such, we have always worked                                    industry. In the past, women made up only 10% of this               implement DX initiatives. I think that was probably one of the
                                                                                                                               the past 5 years or so in particular have seen dramatic                                        passionately to research and develop ways of saving energy and                                company—a woefully low figure. Of the 1,721 officers and            reasons we were selected as a DX Stock.
                                                                                                                               changes in the market environment. While in the past the only                                  reducing environmental load for our equipment. In other words,                                employees who currently work for Dai-Dan (as of the end of          Mizutani: I see.
                                                                                                                               thing asked of companies was to increase profits, I feel that                                  we have long been aware that ESG perspectives, particularly to                                June 2021), 14%, more than 250, are women. While most               Fujisawa: At the Shareholders’ Meeting in June this year,
                                                                                                                               there are now strong demands on companies to also consider                                     do with resolving environmental issues, is something that our                                 work in our offices, the number of female engineers working on      Ikumi Sato, previously an outside auditor, was appointed as an
                                                                                                                               ESG perspectives and work more for the environment and                                         industry can make a major contribution towards. In recent years,                              job sites in our frontlines is also increasing.                     outside director, the first female to sit on the board. I like to
                                                                                                                               society.                                                                                       though, I feel more strongly the importance of fully disclosing our                           Mizutani: From what I’ve heard, you’ve fully introduced a           think that her accomplishment opens up a career path for our
                                                                                                                               Fujisawa: The industry in which we work, building systems, is                                  efforts and sharing them so that all stakeholders can understand                              digital transformation (DX) and this has been a massively           female employees to aspire to.
                                                                                                                               one that requires huge expenditures of energy; our industry’s                                  what it is we do.                                                                             positive major change for female employees.

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DAI-DAN REPORT 2021-2022 - QUICK Money World
with President Fujisawa

                                                                                                                                                                                                                                                                                                                                                                                                                                with President Fujisawa
     Featured Interview

                                                                                                                                                                                                                                                                                                                                                                                                                                     Featured Interview
                                                                                                                                 Training excellent human resources on job sites is part of Dai-Dan’s 120-year-old heritage                                             vital importance to us. It might sound obvious, but as
                                                                                                                                                                                                                                                                        evaluations of publicly listed companies are predicated on
                                                                                                                               Mizutani: Moving on the S part of ESG—Social—could you              Fujisawa: Then, for new employees, at least in the case of           their ability to generate revenue, if we cannot achieve our
                                                                                                                               give me some examples of the measures you take to invest in         engineers, we carry out six months of group training. After that     revenue targets, we will not be judged kindly. That could lead
                                                                                                                               personnel and train younger employees?                              period, trainees are dispatched for three-month placements at        to our market capitalization falling short of the standards set
                                                                                                                               Fujisawa: As a building services installation and engineering       job sites for each of the different corporate offices so that they   for the Prime Market.
     Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies

                                                                                                                                                                                                                                                                                                                                                                                                                                     Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies
                                                                                                                               provider, we buy in all sorts of materials and components and       get a real feel for job sites. Currently, we are incorporating       Mizutani: That’s true.
                                                                                                                               our job is to turn those into functioning equipment inside          teleworking into the group training—through this and other           Fujisawa: In terms of our status within the industry, which is a
                                                                                                                               buildings. The important part to make devices and materials into    means we are gradually changing our methods to meet the              little easier to understand, we have set ourselves targets of
                                                                                                                               a functional system is people, it is people who design layouts to   needs of the times. That said, job-site training as the basis of     200 billion yen in sales and 10 billion yen in operating income
                                                                                                                               fit the spaces provided and to complete the actual construction.    our training is something we will never alter.                       in three years. If we can first achieve these targets, we will
                                                                                                                               Mizutani: That makes sense.                                         Mizutani: That’s part of the Dai-Dan corporate culture.              have cemented our position as an industry leader. With a new
                                                                                                                               Fujisawa: Engineers at construction job sites must have a           Fujisawa: It is. March 2023 marks 120 years since Dai-Dan            position will come a new perspective, and in turn new ideas
                                                                                                                               broad swathe of knowledge about materials, equipment, and           was founded and throughout all that time there are certain           and then surely our behavior will also change. On the other
                                                                                                                               technologies and they must be able to communicate with a            things that have been passed down in an unbroken line, what          hand, that we will contribute, however little, to resolving
                                                                                                                               variety of representatives from different professions, as well as   you could call Dai-Dan’s heritage. The changes we are seeing         societal and environmental issues, is a fact that we must
                                                                                                                               keep work moving even as they attend meeting after                  now are undoubtedly dramatic, but training personnel,                share, and so raise the awareness of every one of our
                                                                                                                               meeting—in other words, they must have the ability to create        assigning them to positions, and having them challenge               employees.
                                                                                                                               building systems.                                                   themselves to produce results, is part of a corporate culture        Mizutani: I’m not sure if they’re worried about being seen as
                                                                                                                               Mizutani: Right.                                                    that remains unchanged these last 120 years.                         unfairly favoring their employees and business partners, but a      be aware of and announce more firmly. I would have thought
                                                                                                                                                                                                                                                                        surprisingly large number of companies don’t expressly declare      that boasting to society about your approach of working with
                                                                                                                                                                                                                                                                        that they value them. I think that’s something Dai-Dan should       employees is something quite important, too.

                                                                                                                                 Aiming to make our employees happy, even as we work hard to give back to society and our shareholders

                                                                                                                               Mizutani: I once attended a study seminar that discussed            Mizutani: The way in which you announce information is really         An approach of entrusting others to take on challenges will foster Dai-Dan’s next generation
                                                                                                                               what was important for a company. The conclusion that was           important. By the way, I feel that the pandemic has transformed
                                                                                                                               reached was that whatever industry the company was in, the          how society views companies.                                         Mizutani: There’s one last thing I’d like to talk about. For        uniforms seem very interested in them, don’t they?
                                                                                                                               answer was information disclosure and dialogue. In other            Fujisawa: I do, too.                                                 example, when you start to further promote DX, have you             Fujisawa: Yes. The final result also applied some of the
                                                                                                                               words, companies should disclose information, whether good          Mizutani: In the past, if asked who a company was for, most          considered appointing individuals in their thirties or forties to   feedback we had from female employees who wanted
                                                                                                                               or bad, and engage in dialogue with investors, shareholders,        people would say shareholders. But now, the focus has                take the lead or some other challenge? I think that could help      distinct uniforms for men and women with different silhouettes
                                                                                                                               and even ordinary people. Ultimately, I feel as though that must    shifted somewhat from shareholders to stakeholders. So               breathe new life into the company and lead to a new corporate       and for the uniforms to be lined. What we ended up with is a
                                                                                                                               be true.                                                            while shareholders are still included, the idea that companies       culture.                                                            stylish design that doesn’t look like work clothing to an
                                                                                                                               Fujisawa: In that respect, there are many of our initiatives that   exist to benefit a range of people—society, employees,               Fujisawa: Actually, only the other day, we renewed the design       old-fashioned type like me! The tops come in an inner and an
                                                                                                                               are well ahead of the rest of the industry that we could call       business partners, the next generation, etc.—has become the          for our work uniforms. To take charge of the project I picked a     outer, there are three different varieties of trousers… the list
                                                                                                                               society’s attention to. However, we aren’t yet able to disclose     mainstream point of view.                                            number of people I thought seemed capable from among the            goes on.
                                                                                                                               or publicize that information well and so people are not            Fujisawa: I entirely agree.                                          ranks of the job-site engineers and they were at its heart as it    Mizutani: That’s wonderful. There was a frank and lively
                                                                                                                               sufficiently aware of those; that’s something I’ve reflected on.    Mizutani: As such, can you, as president of Dai-Dan, tell the        went forwards.                                                      exchange of ideas. If the project had been left to just
                                                                                                                               Mizutani: I see, that is definitely something I’d like to see       stakeholders about the company’s aims for the future and its         Mizutani: Oh, that sounds wonderful.                                higher-ups in the company, it probably wouldn’t have turned
                                                                                                                               Dai-Dan improve on.                                                 long-term vision?                                                    Fujisawa: It really got the employees excited to tackle the         out like this.
                                                                                                                               Fujisawa: For instance, during the first state of emergency,        Fujisawa: The company I would personally like to see Dai-Dan         project independently. There’s a forum for engineers on the         Fujisawa: I think that’s true.
                                                                                                                               declared in response to COVID-19, we fully implemented              become is one where employee happiness comes first. That’s           company intranet and there’s tweet-like messages, mainly            Mizutani: I think this is an excellent example of the company’s
                                                                                                                               measures to prevent its spread. Moreover, we continued to           because whatever kind of fantastic ideal we might set as our         various questions and answers about technical matters, that         corporate culture of setting challenges to get results in
                                                                                                                               carry out maintenance work at medical institutions, including       goal, no matter how well we outline our direction or organize        engineers can write freely, from all over the country. When         action. In other fields, say DX or similar, if you can appoint
                                                                                                                               those that cared for those infected with the disease. Within the    the company, unless employees can sympathize with that               the forum asked employees what they wanted to see for the           younger employees to work on it, and incorporate some
                                                                                                                               company, we swore to react swiftly to any requests because a        goal and work autonomously towards its achievement, we               new uniform, they were soon dozens of replies. It also seems        supervision from higher-ups, that could lead to even better
                                                                                                                               fault in a single pump or ventilator could cause a hospital to      will never see any results. Of course, our contribution to           that using teleworking more they were able to make                  results.
                                                                                                                               stop functioning, we didn’t publicize that intent outside the       sustainability is not something we could step away from, and         progress.                                                           Fujisawa: I agree. And I think that brings our discussion to a
                                                                                                                               company for more than a brief time.                                 our shareholders, who support our business activities, are of        Mizutani: The employees at job sites who will be wearing the        close, thank you for speaking with me today.

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Long-Term
                                 Vision
                                                                   Stage 2030                                                                                                               Mid-Term Management Plan
                                                                                                                                                            Stage 2030 Phase 1《 Preparation Stage》
                                                                    Moving from building services engineering and installation
                                                                    to creating value in spaces                                                                                                           (FY2021–2023)
Long-Term Vision

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

                                                                                                                                                                                                                                                                                                                     Mid-Term Management Plan Stage 2030 Phase 1 《Preparation Stage》
                              Management Plan, entitled Preparation Stage.
                                                                                                                                                           ■ As we move towards 2030, the end point for our long-term vision, the first three years will be the Preparation Stage, in
                                                                                                                                                              which we strengthen our foundations in Japan and overseas.

                                What is a “space value creator”?                                                                                           ■ As we try to expand consolidated sales, we will also challenge ourselves to open up new business and establish a
                                                                                                                                                              corporate group framework.
                                                                                                                                                           ■ We will aim to become a space value creator, and go beyond the framework of being a building services engineering and
                              Since our founding, we have always                                                                                              installation provider to offer value for customers’ spaces.
                              provided the equipment needed for living
                                                                                         Phase                     Phase                     Phase
                              and working spaces that the times demand
                              as a building services engineering and
                              installation provider.
                                  As a company involved in space value
                                                                                          1                         2                          3           Phase 1 《Preparation Stage》Strategies

                              creation—a space value creator—it is our              Preparation                 Refining                 Excellence                    Basic Policy                            Business Strategy                  《Preparation Stage》Strategy
                              role to satisfy the needs of customers and               Stage                     Stage                     Stage
                              society through the “creation” of “spaces”                                                                                                                                                                        ・Expand industrial facility works
                                                                                                                                                                                                             Expand core businesses             ・Strengthen renovation and maintenance
                              that have the essential and potential
                                                                                                                                                                                                                                                  services
                              “value” they demand.                                                                                                            Comfortable, optimal spaces
                                  In order to continue contributing to the                                                               Demonstrating                                                                                          ・Develop a unified foundation for
                                                                                                                                          overall group                                                   Strengthen overseas business            overseas expansion
                              realization of a sustainable society and to             Developing            Bolstering overall                                                                                                                  ・Open up new business sites
                                                                                                                                           capabilities
                              continue creating value in spaces, we must            foundations in          group capabilities
                                                                                  Japan and overseas
                              go beyond the framework of being a                                                                                                                                                                                ・Strengthen competency for construction
                              building     services    engineering    and                                                                                                                                 Enhance technical capabilities          job sites
                                                                                    To end of FY2023         To end of FY2026           To end of FY2029                                                                                        ・Expand ZEB and IoT businesses
                              installation provider and enter a new stage
                                                                                                                                                            Richer, more sustainable society
                              of our evolution as a space value creator.                                                                                                                                                                        ・Contribute to practical application of
                                                                                                                                                                                                             Open up new businesses               regenerative medicine
                                                                                                                                                                                                                                                ・Promote environmental load reduction
                                                                                                                                                                                                                                                  business

                                                                                                                                                                                                                                                ・Improve working environment
                                Basic policies and business strategies                                                                                             Trustworthiness and
                                                                                                                                                                                                           Bolster business foundations         ・Strengthen the corporate group
                                                                                                                                                                   organizational depth                                                           framework
                                                                                                                                                                                                                                                ・Promote DX
                              Through our business activities, we will help to make a richer society and to resolve the myriad issues that face society.

                                                                                                                                                           Phase 1 《Preparation Stage》Targets
                                                          Comfortable, optimal spaces

                                                    To lead daily lives or to operate businesses requires spaces with comfortable, optimal environments.                                                   Preparation Stage Year 1                   Preparation Stage Target
                                                                                                                                                                            Item                                  (FY2021 forecast)                                 (FY2023)
                                                    By refining the elements of light, air, and water through our technologies, we will continue to be a
                                                   corporate group that can offer new value through spaces.
                                                                                                                                                                                                                                                               200 billion yen
                                                                                                                                                                   Sales (consolidated)                            168 billion yen                            Increased proportion from
                                                 Richer, more sustainable society                                                                                                                                                                             consolidated subsidiaries

                                          So that people can lead safer, healthier lives with peace of mind, a more sustainable society is called for.      Operating income (consolidated)                        7.5 billion yen                             10 billion yen
                                         Through our new technologies and advanced specialisms, we will continue to be a corporate group that can
                                        help bring about a richer, more sustainable society.
                                                                                                                                                                                                                        ROE                                     8% or higher
                                                                                                                                                                     Financial indices
                                       Trustworthiness and outstanding organization                                                                                                                            Dividend payout ratio                           30% or higher
                                                                                                                                                                                                         DX promotion (construction job
                                 For an organization to continue to provide value to society, the most important thing is to have reliable personnel.                                                       sites/work style reform)
                                By fostering such human resources, we will raise corporate value and continue to be a corporate group that is                        Investment plan                     Corporate group reinforcement              20 billion yen over 3 years
                               trusted by all its stakeholders.                                                                                                       (3-year cumulative)             New business, research, development,
                                                                                                                                                                                                                      etc.

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Materiality at Dai-Dan

                                      Selecting Areas of Materiality                                                                                                                                                                                          Materiality Mapping
Long-Term Vision

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Long-Term Vision
                                    To promote activities aimed at fulfilling our social responsibilities as a building services engineering and installation provider, we                                                                                 We selected 18 issues for which both the impact on stakeholders in terms of the environment, society, and other factors, and the
                                    have long been guided by the “challenge of creating value for our customers while contributing to the development of a better                                                                                          importance to Dai-Dan, was high.
                                    environment and stronger communities,” as set forth in our management principles at Dai-Dan. We are conscious of the fact,                                                                                                By mapping the levels of both, we came up with six material issues.
                                    though, that it is more important than ever to contribute to the achievement of the UN’s Sustainable Development Goals (SDGs)
                                    and grow sustainably, hand-in-hand with society. As such, we have evaluated the impact of our business on society and the                                                                                                                           Extremely                                                                                            Enhancing quality and
                                                                                                                                                                                                                                                                                                                                                                                             environmental management
                                                                                                                                                                                                                                                                                                                                                                                                                                                   Contributing to
                                                                                                                                                                                                                                                                                                                                                                                                                                                   a carbon-free society
                                                                                                                                                                                                                                                                                             high
Materiality at Dai-Dan

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Materiality at Dai-Dan
                                    environment, and selected specific areas of materiality (material issues) in which we should prioritize our efforts.

                                                                                                                                                                                                                                                                                Impact on stakeholders in terms of the environment,
                                       By addressing these issues, we aim to maximize the value we provide our stakeholders.

                                                                                                                                                                                                                                                                                  —with special consideration for shareholder and
                                                                                                                                                                                                                                                                                                                                                                                            Putting in place better
                                                                                                                                                                                                                                                                                                                                                                                            corporate governance
                                                                                                                                                                                                                                                                                                                                                                                                                                                 Designing working environments
                                                                                                                                                                                                                                                                                                                                                                                                                                                 where people want to work with
                                                                                                                                                                                                                                                                                                                                                                           Strengthening compliance        Furthering water conservation         attention to health and safety

                                                                                                                                                                                                                                                                                             society, and other factors

                                                                                                                                                                                                                                                                                              investor perspectives—
                                                                                                                                                                                                                                                                                                                                                    Respecting human rights and                                   Achieving high-quality

                                      Material Issue Selection Process
                                                                                                                                                                                                                                                                                                                                                    adhering to labor standards                                   medical environments
                                                                                                                                                                                                                                                                                                                                                                                                                                              Promoting innovation and improving
                                                                                                                                                                                                                                                                                                                                        Promoting gender equality                              Responding to changes in the business          productivity through research and
                                                                                                                                                                                                                                                                                                                                        and female participation                               environment via DX                             better trained human resources

                                     1. Issue Selection                                                                                              4. Board of Directors                                                                                                                                                                                                 Reducing waste                                        Building better partnerships with
                                                                            2. Issue Grouping and                                                       Resolution                            5. Updates (Stakeholder                                                                                                                                                                                                            subcontractors and suppliers
                                     We referred to both the SDGs,                                                                                                                               Dialogue)
                                                                               Prioritizing                                                          The issues were considered from
                                     which are a series of international
                                                                            We made a list of the 18          3. Stakeholder Dialogue                the standpoint of our management         By deepening the level of dialogue
                                     targets to make a better, more                                                                                                                                                                                                                                                                    Producing resilient local
                                                                            candidates to be our important    Through discussions with external      plan and other factors, and discussed    we have with stakeholders, we plan
                                     sustainable world, and other                                                                                                                                                                                                                                                                      communities with the                                    Creating jobs and supporting                      Devising healthy living spaces
                                                                            issues and evaluated them from    stakeholders, we verified the          in-house. We narrowed down the list to   to revise our material issues, targets,
                                     international guidelines (including                                                                                                                                                                                                                                                               participation of the community                          employees to learn skills
                                                                            two perspectives: 1) impact on    importance of the issues identified.   six material issues for which efforts    and key performance indicators
                                     GRI Standards, ISO 26000, and
                                                                            stakeholders and, 2) importance                                          are a top priority, which received       (KPIs) to adapt to changes in the
                                     SASB Standards) to identify                                                                                                                                                                                                                                                                                                                                                                           Providing optimal objects
                                                                            to Dai-Dan.                                                              final approval from the Board of         social environment.                                                                                                                                                       Bolstering our risk management
                                     issues that affect our company.                                                                                                                                                                                                                                                                                                                                                                       and spaces
                                                                                                                                                     Directors in January 2021.
                                                                                                                                                                                                                                                                                                              High
                                                                                                                                                                                                                                                                                                                                      High                                           Importance to Dai-Dan                                                             Extremely
                                                            Implementation of the PDCA cycle in line with the period of the Mid-Term Management Plan                                                                                                                                                                                                                                                                                                                        high

                                      Material Issues and KPIs                                     * In the Features over the following pages, we will introduce our efforts to tackle these material issues.
                                                                                                                                                                                                                                                                                                                                                                                                                      Participation in the UN Global Compact
                                      No.                  Material issue                                                KPI                                               FY2020 performance                               Target                             Remarks                                                                                   SDGs                                                         We are onboard with the United Nations Global Compact as
                                                                                                                                                                                                                                                                                                                                                                                                                      a signatory and responsible corporate citizen committed to
                                                                                                                                                                      Reduced 36% from FY2013 levels    Long-term target: FY2030
                                                                                       Reduce greenhouse gas (GHG) emissions (Scopes 1 & 2)                               (FY2020: 3,996 t-CO2)                                                                                                                                                                                                                       realizing a sustainable society. We fully agree with the Ten
                                                                                                                                                                                                     Reduce 46% from FY2013 levels
                                                                                                                                                                          (FY2013: 6,235 t-CO2)                                                                                                                                                                                                                       Principles espoused in the fundamental areas of “Human
                                                         Contributing to                                                                                                                                Long-term target: FY2030                                                                                                                                                                                      Rights,” “Labour,” “Environment” and “Anti-Corruption,” and
                                       1
                                                                                                                                                                      Reduced 11% from FY2013 levels Reduce 46% from FY2013 levels              Set mid-term reduction targets for GHG                                                                                                                                develop strategies and activities to enact these values with
                                                 Feature a carbon-free                 Reduce GHG emissions by our offices                                                (FY2020: 1,637 t-CO2)                                                 emissions from electricity consumption,
                                                         society                                                                                                          (FY2013: 1,842 t-CO2)          Mid-term target: FY2023                particularly from offices                                                                                                                                             the wholehearted commitment of top management.
                                                                                                                                                                                                     Reduce 24% from FY2013 levels
                                                                                       Increase cumulative total of projects (no. of orders and gross floor                      9 orders                            Cumulative total           Disclose cumulative total for gross floor
                                                                                                                                                                                                                                                area, incl. for ZEB planning orders, as
                                                                                       area) related to ZEBs                                                           Gross floor area: 131,405 m2                 for FY2021–23: 40           one of the indicators we monitor
                                                                                       Increase instances of job site adoption of ICT tools such as 3D                                                                                          Disclose the no. of instances for each
                                                                                       recording and conversion technology                                                          6 cases                                                     fiscal year as one of the indicators we
                                                         Responding to                                                                                                                                                                          monitor

                                       2
                                                         changes in the                Increase no. of job sites implementing job site support remote
                                                 Feature business environment                                                                                                    217 projects                     FY2023: 320 projects
                                                                                       teams
                                                         via DX
                                                                                       Teleworking implementation rate                                                       FY2021 Q1: 32.5%                                                   Set targets for FY2022 onwards

                                                                                       Expand usage for medical development devices and systems                                                                      Cumulative total
                                                                                                                                                                                   13 cases                         for FY2021–23: 30
                                                                                       (sputum collection booths and the INF Series)
                                                         Achieving
                                       3
                                                                                       Expand usage for regenerative medical devices and systems                                                                     Cumulative total
                                                 Feature high-quality medical          (incl. animal racks)
                                                                                                                                                                                    3 cases
                                                                                                                                                                                                                    for FY2021–23: 45
                                                         environments
                                                                                       Expand collaborative relationships outside the company for                                                                                               Disclose the no. of relationships in
                                                                                                                                                                                    4 cases                                                     practice per fiscal year as one of the
                                                                                       business creation (universities, start-ups, etc.)                                                                                                        indicators we monitor
                                               Promoting innovation and                Increase net sales per domestic engineer                                         131 million yen per person
                                                                                                                                                                                                                         FY2021:
                                                                                                                                                                                                               135 million yen per person
                                                                                                                                                                                                                                                                                                                                                                                                                      Support for TCFD Guidance
                                               improving productivity
                                       4       through research and better             Increase no. of intellectual properties held (incl. patents and other
                                                                                                                                                                             Patent rights: 127
                                                                                                                                                                                                                                                                                                                                                                                                                      We have announced our agreement with the guidelines
                                               trained human resources                 expertise)                                                                                                                                                                                                                                                                                                                     published by the Task Force on Climate-related Financial
                                                                                                                                                                                                                                                                                                                                                                                                                      Disclosures (TCFD). To aid in the achievement of a carbon-free
                                                                                                                                                                                                                                                Answers from employee questionnaires
                                                                                       Improve employee satisfaction                                                                  2.54                        FY2023: 2.7 or above          (max score 4.0)                                                                                                                                                       society, we will evaluate climate-related risks and opportunities
                                               Designing working
                                                                                                                                                                                                                                                                                                                                                                                                                      that may come up in our business and proactively disclose
                                       5
                                               environments where people
                                                                                       Frequency rate of job site accidents                                                           0.25                             FY2021: 0.25                                                                                                                                                                                   their potential impact.
                                               want to work with attention                                                                                                                                                                      Calculate employee accidents or
                                               to health and safety                                                                                                                                                                             illnesses resulting from work tasks that
                                                                                                                                                                                                                                                led to one day or more work missed
                                                                                       Severity rate of accidents                                                                    0.004                             FY2021: 0.01

                                                                                       Improve retention rate for subcontractor Meisters and Excellent                                                                    FY2023:
                                                                                                                                                                             Meisters: 72%
                                               Building better partnerships                                                                                                                                      Meisters: 75% or higher
                                                                                       Foremen                                                                           Excellent Foremen: 46%
                                       6       with subcontractors and
                                               suppliers
                                                                                                                                                                                                             Excellent Foremen: 50% or higher
                                                                                       No. of CSR procurement agreement forms collected from                                                                 Cumulative total for FY2021–23:
                                                                                       subcontractors and suppliers                                                                                                3,600 companies

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Steering Our Way to Sustainable Growth                                                                                         Construction work ends on enefice Hokkaido
                                                      Feature                                                                                                                                                 (Hokkaido Branch Office)
                                                                               Material Issues and Progress of Corresponding Efforts                                                                        Construction on enefice Hokkaido began in May 2020 with a
                                                                                                                                                                                                            design that incorporated the following concepts:
                                                                               Of the six issues we selected as material issues,                                                                              ∙ Resilience against disaster damage
                                                                               here we introduce efforts to address three of them.                                                                            ∙ Cold-weather ZEB that pushes forward ZEB technologies
                                                                                                                                                                                                                further
                                                                                                                                                                                                              ∙ A “wellness office” that considers ease of working
                                                                                                                                                                                                                Construction work on enefice Hokkaido was completed in
Feature 1

                                                                                                                                                                                                                                                                                                                                                                                                            Feature 1
                                                                                                                                                                                                            June 2021. The building achieved our target of creating a
                                                                                                                                                                                                            cold-weather ZEB as it received five-star ZEB certification under
                                                                                                                                                                                                            the Building-Housing Energy-efficiency Labeling System (BELS)                                  ■ BELS 5☆『ZEB』                               ■ CASBEE rank S
                                                        Feature                                                                                                                                             as a building with energy-saving characteristics. The building was
                                                           1         Contributing to a carbon-free society                                                                                                  also given S ranking under the CASBEE-SWO system, which
Contributing to a carbon-free society

                                                                                                                                                                                                                                                                                                                                                                                                            Contributing to a carbon-free society
                                                                                                                                                                                                            evaluates a building’s environmental characteristics, the wellness it
                                                                                                                                                                                                            offers users, and the specifications, characteristics, and efforts
                                                   With an eye on achieving carbon neutrality by 2050, the government declared a target of reducing Japan’s CO2 emissions by                                aimed at supporting the maintenance and improvement of comfort.
                                                   46% from fiscal 2013 levels by 2030.                                                                                                                         In terms of the building’s running, it uses a cloud-based
                                                                                                                                                                                                            supervisory control and data acquisition system, REMOVISTM,
                                                      Of the country’s total CO2 emissions, the business category, which includes office buildings, accounts for around 17%. As
                                                                                                                                                                                                            and promotes further efforts towards becoming carbon-free.
                                                   such, energy-saving measures for buildings to reduce emissions is an urgent issue. More than ever, ZEBs are indispensable for
                                                   a carbon-free society—as their specifications that have low environmental load, they are installed with highly efficient
                                                   equipment, and they use electricity derived from renewable energy sources for virtually zero energy consumption. Dai-Dan is                               Reducing LCCO2* effectively
                                                                                                                                                                                                                                                4

                                                   actively working to encourage the spread of ZEBs.
                                                                                                                                                                                                            When considering how much a building produces in terms of
                                                                                                                                                                                                            CO2 emissions over the course of its whole life cycle, from
                                                     Dai-Dan Hokuriku Branch Office Renewal Project                                                                                                         construction to demolition, more than 60% of CO2 is emitted                                                                                           Monitoring
                                                                                                                                                                                                                                                                                                                            REMOVIS                                center
                                                                                                                                                                                                            during the time the building is in active use. Carbon-free                                                 Monitoring/
                                                                                                                                                                                                            initiatives, therefore, start by creating buildings with a low                                             management
                                                                                                                                                                                                                                                                                                                                         Data
                                                                                                                                                            ■ BELS * 5☆『 ZEB 』
                                                                                                                                                                          1
                                                                                                                                                                                                            environmental load, but it is more important that they are also                                      Instructions                    Data                            PC
                                                                                                                                                                                                            run with a small load.                                                                                                Instructions
                                                                                                                                                                                                                                                                                                                                                             Daily equipment, device, and
                                                                                                                                                                                                                 Since operations began at enefice Shikoku in May 2019, the                                                     Data                         operations status verification
                                                                                                                                                                                                            use of REMOVIS has allowed us to monitor the building remotely                                                                                   Energy usage status
                                                                                                                                                                                                                                                                                                                                                             confirmation
                                                                                                                                                                                                            and carry out timely eco-tuning so that it meets ZEB criteria even                                                                               Timely eco-tuning
                                                                                                                                                                                                            when in use, which led us to receive an award at the 9th Carbon
                                                                                                                                                                                                                                                                                                               enefice Shikoku             enefice Hokkaido
                                                                                                                                                                                                            Neutral Awards. To minimize the amount of energy used to heat
                                                                                                                                                                                                            or cool offices, and resolve the problem of different people
                                                                                                                                                                                                            feeling temperatures differently, we developed the seat-based,                                         ■ Clima chair
                                                                                                                                                                                                            task-specific heating/cooling system, the Clima chairTM*5, and we
                                                                                                                                                                                                            have been able to verify its validity.                                                                  Heating mode
                                                                                                                                                               *1   Building-Housing Energy-efficiency
                                                                                                                                                                    Labeling System                              Dai-Dan pays careful attention to comfort and ease of                                             Hamstrings warmed by built-in heater
                                                                                                                                                                                                            working as it applies effective energy-saving technologies. By
                                                                                                                                                                                                            continuously optimizing these applications, we will endeavor to
                                                                                                                        We have started work on a project to renew our Hokuriku                                                                                                                                     Cooling mode
                                                                                                                                                                                                            reduce LCCO2 effectively.
                                                                                                                        Branch Office, both because of the existing building’s age                                                                                                                                 Upper body cooled by air blown
                                                                                                                                                                                                            *4   Life Cycle CO2: refers to the total amount of carbon dioxide emitted over the                     from both sides
                                                                                                                        and as part of our resilience*2 measures. Work is expected                               entire life cycle of a building (from design to construction, running, and demolition)            Hamstrings cooled by air suction
                                                                                                                        to continue until June 2022. The design for the new office                          *5   Manufactured by Okamura Corporation
                                                                                                                        building is inspired by a fusion of tradition and innovation
                                                                                                                        and uses wooden building materials such as CLT*3 as well
                                                                                                                        as straight-eave tiles. That design results in a next-generation
                                                                                                                                                                                                            ■ ZEB Leading Owner                                                   ■ ZEB Planner                                                         ■ Eco-tuning Provider
                                                                                                                        office building that harmonizes with the surrounding town
                                                                                                                                                                                                                                   Dai-Dan has been registered                                            Having been registered as a ZEB                 No. 200144
                                                                                                                        while also considering both the environment and ease of                                                    as a ZEB Leading Owner, an                                             Planner, we offer potential
                                                                                                                        working. With the building we have achieved ZEB Ready status.                                              advanced building owner that has                                       customers consulting services
                                                                                                                            The home of the new building, the city of Kanazawa, has                                                constructed a net-zero building.                                       such as proposal and planning
                                                                                                                                                                                                                                   We contribute to the adoption of                                       for ZEB conversions as well as
                                                                                                                        established a set of five courses of action for Imagine
                                                                                                                                                                                                                                   ZEB by disseminating information                                       design, installation, and operation
                                                                                                                        Kanazawa 2030 as the city’s own SDGs.                                                                      through tours and by encouraging                                       services.
                                                                                                                            Dai-Dan supports Kanazawa’s initiative and through the                                                 customers to experience the
                                                                                                                        renewal of its branch office will seek to help give form to a                                              benefits of net-zero construction.
                                                                                                                        more sustainable regional community.
                                                                                                                        *2   Refers to the ability of a building to resist damage during an unexpected      Construction record                                                   Planning record                                                       In March 2021, we were certified as
                                                                                                                             crisis and remain functional, or its ability to return to normal function as
                                                                                                                             quickly as possible                                                                                                                                                                                                        an Eco-tuning Provider; now, we
                                                                                                                                                                                                            Number of ZEB assets                                3 units           ZEB                                                   3 units         are contributing to improvements to
                                                                                                                        *3   Cross-Laminated Timber: wooden building material created by sticking
                                                                                                                                                                                                                                                                                  Others                                               18 units
                                                                                                                             overlapping, perpendicular wooden boards together for a thick material                                                                                                                                                     the ways our customers run their
                                                                                                                             which better resembles natural timber                                                                                                                                                                                      buildings appropriately.

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DAI-DAN REPORT 2021-2022 - QUICK Money World
Feature     Responding to changes in the business                                                                                                                      3      BIM applications
                                                                              2        environment via DX                                                                                                                                        BIM integrates stages from design to installation, maintenance and management and to utilize it to make work tasks more
                                                                                                                                                                                                                                                 efficient, our branch office buildings (in Kyushu, Shikoku, Hokkaido, and Hokuriku) are working to construct a workflow that
                                                                      To further promote DX, we have established a new set of IT and digital strategic policies. Since we were                                                                   uses BIM as they go through their building renewals.
                                                                      selected as a DX Stock 2020, we have been accelerating our efforts and we are now pushing forwards with
                                                                      DX technologies that utilize people.                                                                                                                                       Our BIM coordinators are involved in the projects from the design stage.             ■ enefice Shikoku (Equipment perspective images)
                                                                                                                                                                                                                                                 Their role is to make adjustments to equipment installations and
                                                                                                                                                                                                                                                 positioning, and to maintenance spaces, to investigate prefabrication
                                                                        1         Dai-Dan Group IT & Digital Strategic Policies                                                                                                                  for piping and modular equipment and devices, and to carry out
Feature 2

                                                                                                                                                                                                                                                                                                                                                                                                                Feature 2
                                                                                                                                                                                                                                                 front-loading that incorporates this into the installation drawings. After
                                                                                      Philosophy & vision                                             IT and digital strategic policies and measures                                             installation work starts, their ability to quickly order materials or
                                                                                                                                                                                                                                                 undertake work will hopefully allow fewer engineers or workers for
                                                                      Promoting DX technologies that utilize                             1 Promoting building system DX                                                                          construction work.
                                                                      people to achieve our long-term vision
Responding to changes in the business environment via DX

                                                                                                                                                                                                                                                                                                                                                                                                                Responding to changes in the business environment via DX
                                                                                                                                             By promoting DX and BIM in the design and installation stages, we will increase
                                                                                                                                                                                                                                                     Furthermore, in addition to ensuring an optimal building environment
                                                                      of becoming a space value creator                                      the efficiency of installation processes; we will also carry out R&D towards
                                                                                                                                             advanced applications of ICT.                                                                       through various technical calculations and simulations via BIM, we are
                                                                      · Use digital technologies in every stage of a
                                                                                                                                                                                                                                                 working on achieving labor savings in daily management tasks (daily
                                                                        building’s life cycle to provide customers with                  2 Improving and expanding our IT foundations
                                                                        better spaces                                                        We will promote reforms to work styles, make use of cloud-based operations, and                     cleaning, inspections, preventive and conservation efforts, etc.) in the
                                                                      · Bring about reforms to work styles so employees                      improve, and then expand, our hardware and telecommunications environment.                          maintenance and management stage too, by using spatial information.
                                                                        feel involved through digital technologies and                   3 Strengthening our governance system
                                                                        create better human resources to raise                               We will enhance our information security, strengthen our IT and DX promotion
                                                                        organizational value                                                 framework, evaluate our performance via major results indices, and disclose
                                                                                                                                             information.                                                                                        ■ Plumbing unit shown using BIM

                                                                        2         Remote Support Team initiatives using the ICT environment                                                                                                                                                                                           ■ Hokuriku Branch Office
                                                                                                                                                                                                                                                                                                                                         (Night lighting artist’s impression)
                                                                      Using the ICT environment (online meetings, cloud file servers, shared BIM*, CAD software, etc.), the Remote Support Team of CAD operators, who
                                                                                                                                                            1

                                                                      once had to be stationed onsite, can now offer effective support remotely and are contributing to improvements in productivity. It will also allow us to
                                                                      cater to a variety of work styles, including limited working hours for those raising children, teleworking during the pandemic, or other situations.

                                                                       Remote support RTR*2                                                                      Blueprint RTR
                                                                      As well as splitting up individual support tasks (creation of BIM/CAD                     Via online meetings, the teams share BIM and CAD 3D
                                                                      diagrams, job-site paperwork, documents to notify government                              images with jobs-site employees and can carry out blueprint
                                                                      agencies, etc.), adjusting schedules, supporting blueprint and                            reviews or give advice remotely. This allows them not only to
                                                                      document preparation needed during                                                        verify construction quality, but also
                                                                      construction, and making labor-saving                                                     contribute to improvements in the
                                                                      changes to job-site tasks, the teams also                                                 engineering skills of less experienced
                                                                      offer support for organizing survey records                                               job-site employees.
                                                                      and producing other types of construction
                                                                      completion-related documents.                                                                                                                                               4      Application of ICT installation support tools
                                                                       Remote job-site patrols                                                                   Security patrols                                                                As part of job-site management or installation, we apply the ICT technologies that we have introduced to make tasks more
                                                                      Mobile web cameras allow images to be shared between offices                              To ensure information security, we can check the running status                  efficient and increase quality.
                                                                      and workplaces, and we are conducting progress checks and                                 of job-site computers remotely. This reduces the number of
                                                                                                                                                                                                                                                 ● Temporary installation materials             ■ Temporary installation materials management system
                                                                      quality patrols remotely.                                                                 tasks that require employees to visit sites and massively                          management system that uses
                                                                                                                                                                increases efficiency.                                                              Bluetooth beacons (wireless                                                                                   Display and reservation

                                                                                                                                                                                                                                                   transmitters)                                  System structure                                               management system

                                                                           Video transmission and calls
                                                                                                                                                                                                                                                 ● Tablet-controlled building                                                        Data server                       Internet
                                                                                                                                                                     Patrols                                                                       equipment marking system                                                             (Cloud)                       AP server
                                                                                                                                                                                                                                                                                                                                                                         (Cloud)
                                                                                                                                                                                                                                                 ● 3D recording (3D scanners and                            Rx             Rx
                                                                                                        Cloud                 Save videos/                                                                                                         point cloud processing software)                                                    LTE            DB
                                                                                                                                                                                                                                                                                                                                                                 ∙ Displays locations of

                                                                                                                              photos
                                                                                                                                                                            Phone interviews                                                                                                                                                                       work vehicles and
                                                                                                                                                                                                                                                                                                                                                                   scaffolding, etc.
                                                                                                                                                                                                                                                                                                                  Mesh
                                                                                                                                                                                                                                                 ● Mixed Reality projection                                                                                      ∙ Manages reservations
                                                                              Realtime meetings alongside                                                                                                                                                                                              Rx        network        Rx      GW        Relay          ∙ Monitors equipment
                                                                                                                                                                                                                                                   technologies in job-site progress
                                                                              live video footage
                                                                                                           Video viewing                                                                                                                           management tasks
                                                                                                             and calls
                                                                                                                                                                                                                                                                                                                   Rx
                                                                                                                                                                                                                         Time required:          ● Information-sharing cloud servers
                                                                                                                                                                                                                        approx. 10 mins.           and dedicated websites with
                                                                                                                                                                                                                                                   subcontractors
                                                                                                                                                                     Check job-site computers remotely                                                                                                 Tx                   Tx
                                                                                                                                                                                                                                                                                                                                             Legend             Possible to manage
                                                                                                                                                                                                                                                                                                                   Tx                                             reservations or
                                                                      *1   Building Information Modeling: a system that creates building information models that include not only 3D computer-generated modeling information, but material                                                                                                   Rx   Receiver      operational statuses
                                                                           and component specifications and characteristics and finishes, combined with additional, related information about the building. At every stage from design to
                                                                           construction and operations, the system allows blueprint preparation, estimates, various technical calculations, simulations, and other processes to be effectively                                                               Beacon                          Tx   Transmitter
                                                                                                                                                                                                                                                                                                                                                                  by tablet or PC
                                                                                                                                                                                                                                                                                                                                                                 (Check via web browser)
                                                                           linked and put into practice, for higher quality.                                                                                                                                                                                advertising
                                                                      *2 Remote Team Review

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DAI-DAN REPORT 2021-2022 - QUICK Money World
Feature      Achieving high-quality medical environments
                                                                 3        Initiatives in the field of regenerative medicine

                                                         To provide high-quality medical treatment requires there to be a safe medical environment in place. Dai-Dan is an equipment
                                                         engineering pioneer, and as such we now offer safe, easy-to-use facilities that are optimized for medical institutions that                              Initiatives to introduce operation support services
                                                         handle cell products as part of regenerative medicine. Currently, as the number of requests we receive from customers for
                                                         operation support post-installation has increased, so as to propose even better medical environments, we are working to                                 Through joint research with universities and other companies, we are gaining the operations management expertise needed for
                                                         provide services that bring together design, installation, and operation support for assistance that goes beyond just the                               regenerative medicine-related facilities and are giving concrete form to services our customer will find useful.
                                                         installation front.
Feature 3

                                                                                                                                                                                                                                                                                                                                                                           Feature 3
                                                                                                                                                                                                                  ① Preparing operational procedure documentation
                                                                                                                                                                                                                     (through joint research with the Center for Transfusion Medicine and Cell Therapy at the Keio University School of Medicine)
                                                           Launch of operation support services                                                                                                                  As part of our joint research with Keio
Achieving high-quality medical environments

                                                                                                                                                                                                                                                                                                                                                                           Achieving high-quality medical environments
                                                                                                                                                                                                                 University School of Medicine’s Center for
                                                         In order for Dai-Dan to develop products for use in                                                                                                     Transfusion Medicine and Cell Therapy,
                                                         regenerative medicine and offer operational support for                                                                                                 we have installed air barrier booths in
                                                         cell processing facilities (CPFs), we are utilizing joint                                                                                               their CPF and general-use rooms. Given
                                                         research with customers as a means of establishing                                                                                                      that work applications vary, operational
                                                         operation support services that are catered to the specific                                                                                             procedure documentation that also takes
                                                                                                                                                                                                                 the installation room into account is
                                                         applications or scales of different facilities. As the first
                                                                                                                                     Planning                                    Providing                       required. Keio University Hospital is
                                                         stage of these efforts, we launched a maintenance service
                                                                                                                                operation support                              operation support                 actually using our air barrier booths in
                                                         business in the last fiscal year, and that business has been
                                                                                                                                    services                                       services                      their work, and we are working together to
                                                         taken over by our subsidiary, Cellab Healthcare Service
                                                                                                                               Facility engineering                                                              formulate optimal operational procedure
                                                         Co., Ltd. (CHS) from this fiscal year onwards. Going
                                                                                                                                   capabilities                                 Provide feedback                 documentation using their results.
                                                         forward, we will strengthen cooperation between Dai-Dan               (Hospitals, pharmaceutical
                                                                                                                                                                                    based on
                                                                                                                               manufacturing, cell product                                                                                                          Air barrier booth for installation           Air barrier booth for installation
                                                         and CHS on a range of projects, including preparing                          production)                              consultations when
                                                                                                                               Develop methods of                               providing services                                                                               in CPFs                              in general-use rooms
                                                         operational procedure documentation, providing operation
                                                                                                                              supporting operations
                                                         support systems that utilize our cloud-based automatic
                                                         control system REMOVIS. By proposing a wide array of
                                                         support tasks, we will help lighten the load for medical
                                                         practitioners and contribute to making medical                                                                                                           ② Developing an operation support system using the IoT and cloud (through joint research with Cuorips)
                                                         environments higher quality and easier to use.
                                                                                                                                                                                                                 In conjunction with Cuorips Inc., we are researching methods of managing CPF remotely in an optimal manner using REMOVIS. In order
                                                                                                                                                                                                                 to be able to also monitor the status of manufacturing sites remotely, we are incorporating customer requests into REMOVIS and
                                                            We are also suggesting ways in which our products can                                                                                                evaluating those changes. It is expected to do well in future in the medical industry as a CPF management method focused on DX.
                                                         be adapted to medical treatment processes in medical institutions. From booths in which cells are produced to the rooms where
                                                         patients receive treatment, we are supporting medical procedures through medical environments by creating safe, easy-to-use
                                                         facilities.

                                                                                                                                                                                                                            Air Barrier CPF
                                                                                                                                                                                                                                                                        TM

                                                                                                                  Product lineup

                                                                          Clean booths                  Cell processing                          Surgery                           Patient room
                                                                                                         facility (CPF)

                                                                                                                                                                                                                  Diversification of our services business

                                                                                 TM                                                                                                                              We will combine the facility engineering                                                                      Accumulated
                                                                                                         Air Barrier CPF TM      Karatto-Ope TM        Hybrid operating room     Room for compromised patients                                                      Investment in regenerative                            intellectual properties
                                                                                                   TM

                                                                                                                                                                                                                 capabilities that we have gained at
                                                                                                                                                                                                                                                                    medicine-related ventures                                  and expertise
                                                                                                                                                                                                                 Dai-Dan with expertise we have acquired
                                                                 Selected                                                                                                              Selected                  through joint research to create a new
                                                                                                                                                                                                                 business, operation support service.
                                                                                                        In line with medical procedures,
                                                                                                                                                                                                                 Moreover, as well as in investing in
                                                                                                          we provide the items needed                                                                            regenerative medicine-related ventures
                                                                                              TM

                                                                                                            from our product lineup.                                     Hotto Cure        TM

                                                                                                                                                                 (Room for compromised patients)                 that show future potential, we are active
                                                                                                                                                                                                                 in expanding our business into such
                                                                                                                                                                                                                                                                                       Joint research
                                                                                                                                                                                                                 areas as cell production contracting.

                                                                                                                                                                                                                                                                                                 Establishment of              Expansion of
                                                                                                                                                                                                                                                                          Facility
                                                                                                                                                              Medical treatment in a dedicated                                                                                                   operation support             our services
                                                            Cell production at the hospital             Commercialize at      Administer to patients                                                                                                                    engineering
                                                                          (not cultivation)              other facilities        at the hospital              room for compromised patients                                                                                                          business                    business

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