Securities Code:8840

Materiality

This section provides our materiality about sustainability.

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Creating Ties between People and Buildings

Through lifetime relationships with customers, the Daikyo Group strives to “create ties between people and buildings” by building up its stock of high-quality buildings, providing products and services that solve social issues and vitalizing local communities.

Building Up a Stock of High-Quality Buildings

Debut of GRANDINNO Brand of Entirely Renovated Condominiums in the 23 Wards of Tokyo

To build up its stock of high-quality buildings and revive buildings, Daikyo Anabuki Real Estate Incorporated supplies the GRANDINNO brand of entirely renovated condominiums, which have undergone large-scale repairs and renovation on entire buildings, including common areas and residential spaces of condominiums and corporate apartments, to increase their value.
In November 2017, the company introduced GRANDINNO Komagome, which is the fourth GRANDINNO condominium in Japan and the first in the 23 wards of Tokyo.

GRANDINNO Komagome

GRANDINNO Komagome

GRANDINNO Komagome (foyer)

GRANDINNO Komagome (foyer)

GRANDINNO Komagome (kitchen) L’s KITCHEN, originally created for newly built Lions Mansion, was employed.

GRANDINNO Komagome (kitchen)
L’s KITCHEN, originally created for newly built Lions Mansion, was employed.

Providing Products and Services That Solve Social Issues

Start of Intermediary Services with Free-of-Charge Inspections*

Daikyo Anabuki Real Estate started “Sumairu Check” intermediary services with free-of-charge inspections in April 2018. Daikyo Reform . Design Incorporated carries out inspection operations.
By conducting inspections through collaboration among Group companies and providing information on the condition of existing buildings, we will promote the distribution of second-hand condominiums and strive to realize a stock-oriented society.

Inspection: Building condition survey. Surveys are done by architects who have completed training stipulated by the Ministry of Land, Infrastructure, Transport and Tourism to identify the condition of degradation and deficiencies, including cracks and water leakage occurring at the building foundation, major structural parts such as exterior walls as well as areas that prevent the permeation of rainwater.

Conceptual image of inspection

Conceptual image of inspection

Vitalizing Local Communities

Participation in the Project to Establish the Japanese Version of Continuing Care Retirement Communities (CCRC) on Nakadori in Akita City

In February 2018, we decided to participate in the project to establish the Japanese CCRC on Nakadori in Akita City. Daikyo plans to obtain floors for residential use in the complex building to be constructed for this project and sell condominiums (construction scheduled in 2020).
Based on the policies laid out by Akita Prefecture and Akita City, this project aims to promote a vibrant and invigorating city center by constructing a building fitting as a station-front landmark complete with various commercial facilities. In addition to facilitating smart wellness and comprehensive community care through cooperation with surrounding medical institutions and nursing homes, the project will strive not only to provide high-quality condominiums equipped with advanced housing facilities and crime- and disaster-prevention measures but also to create a safe, convenient and healthy living environment for the residents.

Conceptual image of completed building This image is under consideration and subject to change.

Conceptual image of completed building
This image is under consideration and subject to change.

Japanese CCRC
The Japanese government has announced its plan for “communities that allow people to be active throughout their lives (Japanese CCRC).” In this scheme, from the standpoint of revitalizing local communities, the government aims to create communities that enable middle-aged and senior citizens to relocate either to the country or downtown as they wish, interact with residents of many generations of the community, spend a healthy and active life and receive medical and care services as they require.

Location: Nakadori 2-chome district, Akita City, Akita Prefecture (approx. 5 minutes from Akita Station, west exit)
Site area: Approx. 1,000 m2 (plan)
Scale of building: 17 floors above ground (plan)
Total floor space: Approx. 8,200 m2
Outline of facilities: Condominium units for sale and lease, financial institution, medical institution, nursing home office, community interaction space, etc.

Real Estate Industry’s First Attempt at Alliance/Cooperation to Prevent Special Fraud and Other Crimes

In recent years, issues of special fraud, including scams where criminals have their victims remit money to bank accounts on false pretenses, have been becoming increasingly severe as the methods of doing so have diversified.
Daikyo Astage Inc. and Anabuki Community Inc. believe that efforts are needed to prevent harm to people living in condominiums, especially senior citizens. In 2016, a total of about 2,100 superintendents, who work at all the buildings Daikyo Astage manages in Tokyo, and employees of the Daikyo head office were appointed as “bank transfer fraud prevention advisors” by the Tokyo Metropolitan Police Department. Since then, we have been working with prefectural police nationwide. As measures to create safe and comfortable local communities, we are promoting activities that prevent residents from falling victim to special fraud, including bank transfer scams. In October 2017, we received a letter of appreciation from a police station for actually preventing such a crime.

The Kyoto Branch of Daikyo Astage and the Keiji Branch of Anabuki Community were appointed as the business offices which cooperate with the Kyoto Prefectural Police for fraud prevention, a first in the real estate industry.

The Kyoto Branch of Daikyo Astage and the Keiji Branch of Anabuki Community were appointed as the business offices which cooperate with the Kyoto Prefectural Police for fraud prevention, a first in the real estate industry.

The Tohoku Branches of Daikyo Astage and Anabuki Community signed the agreement for an alliance and cooperation for the prevention of crimes such as special fraud with the Miyagi Prefectural Police.

The Tohoku Branches of Daikyo Astage and Anabuki Community signed the agreement for an alliance and cooperation for the prevention of crimes such as special fraud with the Miyagi Prefectural Police.

Development That Is Gentle on the Environment

The Daikyo Group promotes the provision of products and services that consider the environment as well as Group-wide activities to reduce CO2 emissions and waste. We also strive to consider and protect the environment through “addressing to climate change,” “effective utilization of resources” and “conservation of biodiversity” as well as commit ourselves to development that is gentle on the environment.

Environmental Policy

Based on its Management Philosophy and Medium-term Management Plan, the Daikyo Group has established the environmental policies and promotes eco-conscious manufacturing.

Environmental Policy

Conservation of Biodiversity

“Biotope, “Fureai Forest” Ecosystem Event” Held on the Premises of Condominium

Lions Kohoku Newtown Laurel Court (Yokohama City, Kanagawa Prefecture), obtained in 2015 the Business Innovation in Harmony with Nature and Community Certificate, which is an accolade given to facilities that give consideration to biodiversity. In 2016, an event to interact with nature was held for the first time on the premises after residents moved in.

Lions Kohoku Newtown Laurel Court

Lions Kohoku Newtown Laurel Court

Release of killifish in the premises of the condominium

Release of killifish in the premises of the condominium

Addressing Climate Change

Japan’s First Certification for Nearly Zero Energy House (Nearly ZEH)*

Daikyo’s Lions Ashiya Granfort obtained Japan’s first Building-Housing Energy-efficiency Labeling System (BELS) certification as a Nearly ZEH condominium defined by the Ministry of Economy, Trade and Industry.
The condominium boasts higher heat-insulating and energy-saving performance through improved building outer-skin functionality while realizing an average of 32% reduction in energy savings in all housing units by employing the Low-E double-glazed windows infused with argon gas and the high-performance aluminum-plastic composite sash and by installing the next-generation fuel cell (ENE-FARM). In addition, the rooftop solar panels contribute to realizing an average energy generation of 48% in all housing units.

Rendering of Lions Ashiya Granfort

Rendering of Lions Ashiya Granfort

Condominiums that comply with Nearly ZEH-M guidelines and achieve a reduction of 75% or more in primary energy consumption through energy savings and creation

Dramatically Improving Energy Use Efficiency through Management-Integrated ESCO Project

An energy service company (ESCO) is a commercial business that provides comprehensive services related to energy savings at facilities and other buildings. It guarantees energy-efficient effects and receives a fee for a portion of the energy cost savings.
ORIX Facilities Corporation, a Daikyo Group company, has been working with Mitsubishi UFJ Lease & Finance Company Limited and Totech Corporation for comprehensive energy savings throughout the five campuses of the University of Fukui and its affiliated school. Together with the university facility managers and facility users, the three companies have been promoting the Management-Integrated ESCO Project and rotating the plan-do-check-act (PDCA) cycle.
The project was recognized for its energy-saving effects and awarded the Chairman Prize of The Energy Conservation Center, Japan in the 2017 Energy Conservation Grand Prize program.

University-wide ESCO Project that involves multiple campuses (the first for a national university)

University-wide ESCO Project that involves multiple campuses (the first for a national university)

Becoming a Trustworthy Company for All Stakeholders

Together with promoting appropriate risk management and compliance, we aim to become a vibrant corporate group with diverse human resources.
By utilizing human resources who are capable of responding to the rapid changes in society and possess flexible and wide-ranging expertise, we strive to create an organization that allows individuals to exert their full potential and abilities.

Becoming a Trustworthy Company for All Stakeholders

Creation of an Organization That Grows with Employees

To flexibly respond to an ever-changing society and diverse values and provide new value to customers, we believe that it is essential to gather the multiple viewpoints of employees and make the most of our power as an organization. Therefore, we aim to capitalize on the individuality of each employee while enabling them and the organization to grow together.

Workplace Innovation Project

We engage in an activity in which all employees of the Daikyo Group identify the issues and challenges of the workplace under the theme of “How to be excited about working” and “How to become a trustworthy company for all stakeholders.” We then compile the required measures to solve these issues and present them to management.
Based on past proposals, we introduced Platinum Week, which allows employees to acquire consecutive days of leave, as well as longer year-end and New Year holidays, so that employees can maintain a work-life balance. In addition, we started to completely switch off the lights in buildings, utilize an office system where employees are free to change their desks and introduce telecommuting on a trial basis.

System to Support Career Advancement

For employees to think about their vision for their career, we hold “career support interviews.” Specifically, an employee and his/her supervisor review the activities of the individual by summarizing past experiences and confirming his/her strengths and challenges. In addition, employees are advised to establish short- to long-term career goals for self-enlightenment and changing their approach to their work.
Furthermore, each department holds a “human resources utilization meeting” to study each employee’s career enhancement. By considering employees’ requests and aspirations as well as their aptitude evaluated by their supervisor, each employee’s position and work assignment are determined.

Systems to Select Job Type and Tasks

We have a “job type change system” to allow various working styles that fit each employee’s life events and develop careers over the long term.
Employees can focus on their private time by limiting job tasks or place of work. They can also remove limitations for career advancement. In this way, it is possible to make arrangements according to each employee’s personal situation. We also have a “job challenge (open recruitment) system” that allows employees to apply for various job opportunities within the Daikyo Group. Since employees choose and take on challenges by themselves, their motivation to work is increased, thereby raising the morale of the entire organization.

Human Resources Development That Brings Out the Abilities of Each Individual

Employees who listen sincerely to the voices of customers and pursue added value are Daikyo’s valuable human capital. Based on this belief, we develop human resources that can deliver the best results by striving for their growth on their own as well as by promoting communication across Daikyo Group companies.

Training System That Improves Ability

The Daikyo Group’s human resources development system has four major elements: “hierarchical training” tailored to the level of each employee; “business training” aimed at improving employees’ skills in their respective tasks; “selective training” (including dispatching employees to outside) to encourage employee growth through collaboration with other companies; and “self-education support” enabling employees themselves to select what to learn. In addition, we help employees to obtain the qualifications required for their tasks at the earliest time possible.

Training System That Improves Ability

Realization of a Flexible Working Style

By creating a working system suited to each task and the private lives of employees, we strive to realize a flexible working style that allows employees to demonstrate their abilities to the fullest and increase productivity.

System to Secure Holidays and Leave and Allow Employees to Maintain a Work-Life Balance

In addition to Saturdays, Sundays and public holidays, we provide a summer holiday period and a year-end/New Year holiday period.
For employees whose regular holidays are Tuesdays and Wednesdays, to compensate for any shortfall in annual holidays taken for salespeople who show customers around condominiums, we set the second Thursday of every month as a holiday to give them three days off, while offering a “flexholiday” arrangement that allows employees to freely set the date of their holidays. In addition, to encourage employees to take paid leave, we have introduced Platinum Week so that they can schedule consecutive days of leave as well as longer year-end and New Year holidays.
Also, we allow employees to keep expiring paid holidays so that they can use them later as savings-type paid holidays for specified reasons or as medical leave for cancer treatment.

Actual annual holidays in 2017: 127 days

Introduction of Systems That Allow Employees to Choose the Time and Place to Work

We have introduced systems that allow employees to freely select the time and place of their work depending on respective tasks and lifestyle.
They include “staggered working hours” and partial “select telecommuting.” More and more employees are using these systems every year. In addition, we are promoting measures to expand remote working by utilizing mobile PCs, trialing the introduction of telecommuting and working out of the office for certain kinds of work, and establishing satellite offices within the Daikyo Group bases.

Utilization of Diverse Values

We strive to create a workplace that allows each employee to grow, work with satisfaction and demonstrate their abilities by sharing the joy of working and by respecting each other regardless of age, gender or nationality. The workplace shall also enable employees to work while handling their environment and situation.

Employees with Varied Attributes

In recent years, our human resources have been progressively diversified. The ratio of female employees and female managers is currently about 23.6% and 4.3% (68 people), respectively, and these numbers are increasing year by year.
In 2010, we began hiring non-Japanese employees. So far, we have employed more than 15 people. New values and ideas brought about by the diversification of human resources are playing an important role in accelerating diversity.

Childcare Support

To support employees on childcare leave to smoothly return to the workplace, we hold “information exchange meetings (childcare leave community)” between employees who are on childcare leave and employees who have returned to work and are balancing both work and child care. At the same time, we arrange interviews with supervisors and a human resources administrator to eliminate anxieties about their work and working style. We also encourage male employees to actively participate in parenting by providing childcare leave at the time of childbirth and allowing them to convert parts of childcare leave into paid leave.

Childcare leave community

Childcare leave community

Utilization of Seniors

Many seniors are working in the areas of condominium, building and construction management.
For example, 85% of total condominium superintendents (6,178 people) are over 60 years old, of which 4,766 people are aged 65 years old or over.
Many of them retired after working in various industries and joined the Daikyo Group. We remain committed to proactively employing seniors.

As of March 31, 2018

Caregiving Support

The number of employees who provide care to family members while working is increasing every year. We are promoting measures to avoid the situation where employees have to leave the Daikyo Group to provide care. We offer caregiving seminars for employees, individual consultations with specialists and a telephone hotline for employees and their families. Through these measures, we provide appropriate advice that matches each situation.

The TOMONIN logo certifies a company that supports employees who balance both work and caregiving.

The TOMONIN logo certifies a company that supports employees who balance both work and caregiving.

For Employees to Work in a Lively Manner and Maintain Their Health (Health Management)

Having healthy employees who can work safely is the basis for everything. The health of an employee is not only the foundation of their life, but also an important asset for a company to keep growing. Therefore, we strive to create a workplace that allows each employee of the Daikyo Group to work in a lively manner and maintain their health.

Certification as Excellent Enterprise of Health and Productivity Management (White 500)

As a company that practices excellent health management, Daikyo was certified as an Excellent Enterprise of Health and Productivity Management (White 500) by Japan’s Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi.
We were highly evaluated for our unique initiatives to maintain and promote employees’ health including the BMI improvement support program, joint measures with the health insurance association and a stop smoking program.

Health and Productivity Management

Daikyo Health Program

As a measure to invest in the health of employees, we promote the Group-wide Daikyo Health Program. During fiscal 2017, we conducted various measures to promote health, including cooking lessons for healthy dishes, walking events, one-on-one support from personal trainers, seminars on health, Company-wide no-smoking days and the total prohibition of cigarettes.

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