Outline of the DAIHEN Group

Corporate data

Contents

Company name

Date established

December 1, 1919

Capital

¥10,596 million

Sales

¥160,618 million (March 2022, consolidated)

Employees

3,783 (As of March 2022, consolidated)

Business

Manufacture, sale and servicing of power

equipment, welding machines, industrial robots,

RF generators for semiconductor manufacturing,

EV charging systems, etc.

Head office

2-1-11 Tagawa, Yodogawa-ku, Osaka

location

532-8512 Japan

Tel: +81-6-6301-1212

Business offices

Juso Business Ofce (Osaka)

and plants

Rokko Business Ofce (Kobe)

Mie Business Ofce (Taki-cho, Mie)

Kanehira Plant (Osaka)

Chitose Plant (Chitose, Hokkaido)

Regional offices

Hokkaido Regional Ofce, Tohoku Regional

Ofce, Tokyo Regional Ofce, Chubu Regional

Ofce, Chugoku Regional Ofce, Kyushu

Regional Ofce

Website

https://www.daihen.co.jp

Head Office (Juso Business Office)

Showrooms (1F Head Office)

Our Head Office Building is registered with Osaka City as a

Tsunami Evacuation Building.

  1. Corporate data, Executive ofcers
  2. Contents, Editorial policy
  3. Our Management Approach
  4. Message from the Management
  5. Special Feature
    Our Green Solutions Initiative

7 Special Feature

Our Tailored Solutions Initiative

  1. The DAIHEN Group TOPICS
  2. Financial Performance of the DAIHEN Group
  3. The DAIHEN Group and SDGs
  1. DAIHEN Products in Society
  1. History of the DAIHEN Group
  1. Businesses of the DAIHEN Group

19 Roles Played by DAIHEN Group Companies

21 Global Network

Environmental Report

Promoting Environmental Management

  1. The DAIHEN Group Environmental Policy / General Director Responsible for the Environment
  2. Environmental management at the DAIHEN Group
  3. Environmental initiatives: plans and results
  1. The DAIHEN Group's 7th Voluntary Environmental Action Plan
  2. Environmental management system (EMS)

30 Responding to recommendations under the TCFD framework

Initiatives for Fiscal 2021

  1. Prevention of global warming, Preservation of biodiversity
  2. Waste reduction, Air pollution control

Environmental Data

  1. The environmental impact of our business activities
  2. DAIHEN Group environmental accounting in scal 2021
  3. Environmental Preservation Initiatives of Our Business Ofces/Plants

39 Environmental Preservation Initiatives of Plants Outside Japan

Social Report

41 Our Relationship with Our Customers

  1. Our Commitment to Our Shareholders
  2. Our Commitment to Our Suppliers
  3. Our Commitment to Our Employees

49 Our Commitment to Society and Local Communities

Governance Report

Corporate Governance

  1. Corporate governance system
  2. Corporate ofcers
  3. Compliance and risk management initiatives
  4. Strengthening information security, Initiatives to protect our intellectual property

Executive officers (As of June 28, 2022)

Directors and operating officers

Chairman

Tetsuya Tajiri

President and Chief Executive Ofcer

Shoichiro Minomo

Executive Vice President and Member

Kazuo Kamo

of the Board

Executive Vice President and Member

Keiki Morimoto

of the Board

Senior Vice President and Member of

Haruhisa Kimura

the Board

Senior Vice President and Member of

Shingo Wada

the Board

Member of the Board

Keiichi Ando

Member of the Board

Emiko Magoshi

Member of the Board

Yasufumi Fujiwara

Auditors

Standing Auditor

Tatsuya Iba

Standing Auditor

Keitaro Takahashi

Auditor

Haruo Urata

Auditor

Masashi Yoshida

Auditor

Hiroyuki Shime

Operating officers / Fellows

Senior Vice President

Kentaro Kaneko

Vice President

Tong Hongjun

Senior Vice President

Ichiro Yamano

Vice President

Hideki Imura

Senior Vice President

Tomoyuki Ueyama

Vice President

Masana Morioka

Senior Vice President

Hiroaki Oichi

Vice President

Norbert Kleinendonk

Vice President

Yasuhiro Nishimori

Vice President

Kazuki Kondo

Vice President

Ryohei Tanaka

Vice President

Shigeo Ozawa

Vice President

Toshiyuki Arai

Fellow

Yuji Yoshizako

Vice President

Tadashi Kuriyama

Vice President

Yasuhiko Fujitomi

Editorial policy

We publish this report to let all of our stakeholders know the kind of business activities we are conducting in the DAIHEN Group and, by doing so, build trust between us. A lot of effort has gone into editing the layout so that people of all walks of life will nd the content easy to read and will gain a proper understanding of what we do.

Going forward, we will continue to upgrade the content of the report by adding information that our stakeholders expect and want.

[Opinions and requests are welcome!]

Your opinions and requests are great sources of information that help us to improve not only this report but also our business activities. Let us know what you think.

DAIHEN Website >> Contact Us >> Other inquiries >> Inquiry form

Reporting period

This report covers scal year 2021 (April 1, 2021 to March 31, 2022). This report also contains some information from before scal 2020 and after 2022.

Scope of organizations covered

In principle, this report spans the initiatives of the DAIHEN Group, which comprises DAIHEN Corporation and its consolidated subsidiaries. The environmental report contained herein presents the environmental initiatives of our Group plants

  • in Tottori, Oita, Matsudo, Eniwa, Hirosaki, and Kagawa - that are participating in the environmental management system (EMS) of DAIHEN Corporation.

Reference guidelines

  • Guidelines 2013 of the Global Reporting Initiative (GRI)
  • Environmental Accounting Guidelines 2005, Ministry of the Environment, Japan
  • Environmental Reporting Guidelines 2018, Ministry of the Environment, Japan
  • JIS Z 26000, Japanese Standards Association

Next issue

The next issue of this report is scheduled for release in September 2023.

Disclaimer

This report includes our plans and prospects as of the date of publication; projections based on management plans and management policies; and past and current data on the DAIHEN Group. The reader is advised that these projections are assumptions or judgments based on the best information available at the time, and the possibility exists that future business performance may differ due to changes in various conditions, unforeseen results, and changes to forecast business activities.

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Our Management Approach (Adopted April 1, 2012)

The DAIHEN Group is committed to achieving "simultaneous contentment for all"*¹ through appropriate return of profits to stakeholders.

The DAIHEN Group has adopted the goal of "simultaneous contentment for all", which demonstrates our commitment to the happiness of all our stakeholders - customers, employees and their families, shareholders, suppliers, and our local communities. To that end, we have clearly set specific goals - which we refer to as targeted "returns"- for each category of stakeholder. We remain intensely focused on meeting these goals.

All DAIHEN Group employees throughout the company thus understand our corporate purpose and remain dedicated to working in unison as each individual plays an essential role in realizing it.

Message from the Management

Doing what we can to shape a sustainable world

Transitioning to an R&D-focused company that squarely confronts societal issues

Since its founding in 1919, DAIHEN has remained focused on the development of products that meet the needs of society. By developing transformers, welding machines, industrial robots, and RF generators for semiconductor manufacturing equipment, we have contributed to the advancement of the power infrastructure that forms the industrial foundation of daily life. At the same time, we are driving the evolution of the manufacturing

Corporate Objective

Achieving

Simultaneous

Contentment for All

Customers

Employees and their families

Shareholders

Suppliers

Regional communities

Targeted "Returns"

Invest 6% of sales in development to ensure a continuous pipeline of unique

Customers

products*².

Ensure our unique products account for at least 40% of sales.

Employees and

Third bonus

Paid when profits increase by at least 5% relative to the

preceding fiscal year.

their families

Minimum operating profit: 8 billion yen: 1.0 month

10 billion yen: 1.5 months

12 billion yen: 2.0 months (maximum)

Shareholders

Achieve a minimum dividend payout ratio of 30%.

Suppliers

Achieve a 50% return on cost reductions.

Regional

Donate 1% of operating income to child welfare and child protection.

Build a product portfolio comprising a minimum of 80% environment-friendly

communities

products

sector around the globe.

We are now entering a new era that marks our transition to an R&D-focused company dedicated to addressing societal issues head-on. By developing energy management systems that contribute to greater use of renewable energy, we can offer our Green Solutions that contribute to the emergence of a decarbonized society. These include charging infrastructure that is indispensable to the adoption of EVs as well as our innovative joining processes that help reduce vehicle body weight. Moreover, we are developing solutions targeting labor shortages while seeking to diversify our workforce and work styles. We remain focused on these areas even as we strengthen our development of Tailored Solutions that provide the optimal approach to problem-solving. Our solutions include individually tailored robot systems that accommodate the specific circumstances of customers in the manufacturing sector. By introducing a series of products with unique market value, we are demonstrating our commitment to serving the needs of the world while ensuring customer satisfaction.

We look forward to your continued support as we pursued these future objectives.

"We are confident our customers will be pleased with our products and services,

Returns

which are valuable and useful to the world". - Our founder, Aizo Kobayashi

Business Policies

: Develop unique products.

Invest 6% of sales in development funds.

Profits

: Implement initiatives to cut losses.

*1 When the Company adopted its management philosophy "Reliability and Creativity" in 1985, our 5th President Keijiro Kobayashi publicly expressed his view that, when we ponder the rationale behind our work, we must come to the ultimate realization that we are committed to simultaneous contentment for all.

*2 Proprietary products offering overwhelming value that also contribute solutions to societal issues

Shoichiro Minomo

President and Chief Executive Officer

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Overview of the demonstration project for an in-motionEV charging system
Battery level: 90%
Battery level: 70%
Battery level: 30%
Charging Battery
commands level: 50%
Charging commands
Supplies surplus
renewable
energy
Acquires
location
information,
etc.
Acquires
location
information,
etc.
In-motionEV charging system
Control commands
Acquires information Administratoron renewable
energy generated
Photovoltaic power and other sources of renewable energy
180-kWquick charger

Special Feature Our Green Solutions Initiative

As part of our effort to contribute to the emergence of a society committed to decarbonization, we are focused on expanding sales and strengthening the development of various energy management systems (EMS). These comprise control technologies and devices that contribute to the growing introduction of renewable energy as well as the charging infrastructure that is essential to the adoption of EVs.

Developing an EMS-compatiblehigh-capacity180-kW quick charger

Developing technologies for joining dissimilar materials (resin and metal) to meet the demand for lighter EV bodies

In recent years, companies and local governments have been promoting EVs as a means of contributing to the emergence of a society committed to decarbonization.

In the EV charging market, the need for quick charging at high power levels is increasing in light of the shift to larger EVs such as buses, trucks, and other commercial vehicles and the increasing size of on-board storage batteries in these new vehicles. In addition, the increasing occurrence of peak power consumption (and concomitant cost increases) due to congestion at charging facilities and concentration of charging infrastructure in public facilities such as expressway service areas has presented a challenge. Clearly, a need has arisen for quick charging of multiple units as well as energy management capabilities.

The quick charger we have developed, which boasts the smallest footprint in its class, outputs up to 90 kW per plug to two EVs concurrently. What's more, this device helps to alleviate charging congestion by charging four EVs concurrently with the simple addition of two supplementary plugs. Furthermore, with the installation of Synergy Link - our proprietary autonomous distributed cooperative control technology - it is possible to minimize power peaks (and thereby control running costs) while facilitating links to a variety of facilities such as existing customer systems and renewable energy facilities such as photovoltaic power generation systems. These innovations have the potential to be very effective at expanding future decarbonization efforts.

As a comprehensive manufacturer of EV charging systems that meet a wide range of EV charging needs, our addition of these product lines to our existing lines of 6 kW level 1 chargers, 30/50 kW quick chargers, and wireless charging systems is contributing to the ongoing widespread adoption of EVs.

Laser head

Bonding pressurization mechanism

Consistent joining

Pressure

is possible by

irradiating the

target workpiece

with a laser while

Rollers

applying pressure

with rollers

New prototype of a laser head and mechanism for applying pressure to workpieces

We have developed technologies for joining resin and metal to meet the increasing demand for lighter EVs made of multiple materials, which are becoming more widespread. We are focused on commercializing this bonding technology in fiscal 2023.

In recent years, automakers have been working to reduce the weight of EV bodies in order to extend the cruising range of these vehicles. The use of lightweight resin and metals such as ultra-high-tensile steel and aluminum is increasing. In particular, the use of resins with a low specific gravity is expected to double from the current level by 2030, and the scope of application is expected to expand to include hoods, doors, roofs, and other body components.

The technology we have developed for joining dissimilar materials employs lasers, which in one fell swoop solves the problems of processing labor and costs that have plagued conventional joining methods employing adhesives, rivets, and other such mechanical fastening methods. In addition to accommodating general bonding of resins and metals, stable wire-welding is possible not only for glass-fiber-reinforced polypropylene (PP) and glass-fiber-reinforced polyphenylene sulfide (PPS), which are considered difficult-to-join materials, but also for ultra-high tensile strength steels. This approach now provides sufficient strength to fracture the resin base material at a level that can be put to practical use.

Participating in demonstrations of wireless charging systems

We have participated in a variety of demonstration projects with the aim of deploying such systems at Expo 2025 Osaka, Kansai and offering them commercially in the future.

Demonstration of an in-motion EV charging system

In collaboration with the Kansai Electric Power Company and others, we have participated a project to develop technology for an in-motion EV

charging system. This project has been adopted as a subsidized project under the Program to Develop and Promote the Commercialization of

Energy Conservation Technologies to Realize a Decarbonized Society implemented by the New Energy and Industrial Technology Development Organization (NEDO). In this project, we are developing EMS technology for "smart cities" that have introduced in-motion charging systems that can charge EVs in a non-contact manner.

In the future, our test site at the DAIHEN Technology Institute in Oita Prefecture will conduct charging control tests using EMS technology, identify issues related to the safety of electromagnetic waves, research the installation of in-road charging systems, and promote the development of in-motion EV charging systems and EMS technologies.

  • Demonstration project for electric vessel

Working in collaboration with the Kansai Electric Power Company and the e5 Lab, we are jointly developing a high-capacity wireless charge/discharge system intended to promote the development and adoption of an electric vessel in the Kansai Bay area. In response to the potential adoption of this technology under Osaka Prefecture's Industry Creation Business of Renewable Energy, we conducted high-capacity wireless charge/ discharge demonstration experiments for electric vessels at Hachikenyahama and at Universal City Port in Osaka City. We will utilize the data obtained from this demonstration project to build an EMS and devise the optimal charging system for electric vessels that offers higher capacity and greater speed.

Demonstration project for an electric vessel

  • Demonstration project for ultra-compact electric mobility vehicles in collaboration with Osaka Prefecture

Our wireless charging system has been adopted for the charging facilities for ultra-compact electric mobility vehicles used by staff members of the Osaka Prefectural Government. Through this demonstration project, we can identify operational issues related to wireless charging systems. This will further enhance their functions in the runup to their future widespread deployment in the marketplace.

Wireless charging system for ultra-compact electric mobility vehicles

Developing an optimal welding system offering the high-quality joining required for EVs

In recent years, automakers have been increasing their use of ultra-high tensile strength steel and aluminum to reduce the weight of EV bodies.

However, the welding and joining of these materials present challenges. Ultra-high tensile strength steels are quite hard, making them difficult to process, so yields decline due to variations in processing accuracy. Moreover, aluminum is prone to melt-off and joint distortion because it readily transmits heat.

In response to this situation, we have developed the Synchro-feed Evolution. This innovation is resistant to variations in machining accuracy, as it provides a wide and flat welding seam. It also helps to prevent melt-off at the weld point by allowing for careful control of heat input.

Going forward, we will continue to employ the world's most advanced technology to the full. We have acquired this expertise in an effort to contribute to the high-quality joining of diverse materials as required by the shift to EVs.

Synchro-feed Evolution

For more details, visit our website

https://www.daihen-robot.com/items/synchro

Column

Production equipment incorporating our laser-arc hybrid welding system is recognized with the Technology and Development Award from Toyota Motor Corporation

Our recent innovation was recognized with the 2021 Technology and Development Award from Toyota Motor Corporation. This award is presented to suppliers who have made significant advances in using the latest technology to improve the appeal of the company's products.

The company's production facilities equipped with our laser-arc hybrid welding system earned high praise for their contribution to efforts to significantly reduce the weight of vehicle bodies, thereby improving productivity, reducing costs, and saving space.

We will continue to refine our world-class joining technology in order to overcome the various challenges manufacturers face today.

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AR marker
Automatic recognition of weld lines
Teaching a robot with a tablet-based teaching-lessprogramming system

Special Feature Our Tailored Solutions Initiative

We seek to provide optimal solutions to the challenges faced by those employed in a wide range of manufacturing positions. We are devising solutions to the labor shortage and other societal challenges, liberating people from dirty, difficult, and dangerous tasks, and adopting varied work styles for an increasingly diverse workforce. As well, we are developing equipment and systems that contribute to automation in confined spaces, reducing the burdens of facility management, and addressing the shortage of instructional workers.

Developing a tablet-basedteaching-less programming system for industrial robots

We have developed a tablet-basedteaching-less programming system that can be used to easily generate programs for robot operation.

Industrial robots are not suitable for high-mixlow-volume production situations, as a complex teaching program must be prepared for the robot for each type of product being manufactured. Various systems have been considered to simplify the teaching process. However, the cost of this task increases even further when expensive laser sensors are employed, and specialized and complicated adjustment work is required to improve the accuracy of sensor measurements. These issues have presented barriers to the introduction of robots in some production environments.

In response to this situation, we have developed a tablet-basedteaching-less programming system that enables easy program generation by means of image manipulation on an iPad*. Teaching is performed simply by capturing images with the camera and using them to indicate the movement of the robot. Because teaching is so easy, robots can easily be introduced in small and medium-sized factories and other production plants that produce a wide variety of products in small quantities. This innovation enables robots to be used

almost immediately to automate production in such scenarios.

*iPad is a trademark of Apple Inc.

This product earned the Main Prize at the 65th Nikkan Kogyo Shimbun's Best 10 New Product Awards in 2022.

Developing autonomous carriers suitable for a variety of transportation scenarios

We have developed a line of autonomous transport vehicles that contribute to the automation of in-factory transport.

Against the backdrop of a serious labor shortages at many manufacturing plants, a growing need has arisen to automate not only the manufacturing process but also the in-plant logistics for which AGV/AGF/AMR* units have been developed. AMRs in particular are attracting attention, as their routes can be easily modified. Many conventional AMRs have specifications adopted for specific transport applications, and their scope of automation is limited. Due to restrictions on the driving method, they can be difficult to use in the dead ends and along the narrow passages that are commonly found in manufacturing plants.

In addition to supporting a wide range of transported items and transportation scenarios, the autonomous transport trolleys we have developed can accommodate narrow aisles while avoiding obstacles. With the industry's first product line featuring three models specialized for carrier, towing, and

Developing an arc welding robot designed for optimal collaboration

We have developed a compact and easily transportable arc welding robot designed for optimal collaboration. It features the rigidity and durability that are essential for welding applications, and it offers low vibration and high tracking accuracy.

In small and medium-sized plants in particular, the challenges to be overcome when installing industrial robots include high equipment costs and significant space requirements for installing safety fences.

The arc welding robot we have developed for optimal collaboration features a robot arm shape that requires no safety fences as it is designed not to entrap workers, allowing for collaborative work with humans. Because it is compact, it can be employed as a plug-and-play solution in a wide range of welding scenarios, including large working spaces for large-scale structures as well as for processing tasks that require precision.

Arc welding robot designed for

optimal collaboration

Developing a wafer transfer robot capable of the industry's fastest transfer speed

We have developed the UT-VDW3000, a wafer transfer robot capable of the industry's fastest transfer rate in a vacuum environment.

In recent years, the rapid growth in demand for semiconductors due to the spread of 5G and the sweeping transition to digitization has led to semiconductor supply shortages around the world. Moreover, manufacturing processes have become more complex as semiconductors have become smaller while employing more layers. As a result, strong demand exists for ways of accelerating semiconductor production processes.

Unlike transfer in the atmosphere, wafer transfer in a vacuum environment cannot use mechanisms such as wafer sucking or gripping of wafers with claws. In addition, low vibration is essential for wafer transfers. The wafer transfer robot we have developed incorporates a direct-drive motor for the robot's arm axis and swivel axis as well as a steel belt for the arm drive. Thanks to these innovations, we have succeeded in reducing vibration during transfer to the minimum possible, thereby achieving the industry's fastest transfer speed.

Model UT-VDW3000 vacuum

wafer transfer robot

  • Development process for the UT-VDW3000 vacuum transfer robot

forklift operations, we can provide units to accommodate various transportation scenarios without limiting the mode of transportation.

*AGV: Automated Guided Vehicle, a trolley that travels along a route delineated with magnetic tape or the like. AGF: Automated Guided Forklift, an unmanned forklift that operates on the same principle as an AGV.

AMR: Autonomous Mobile Robot, a trolley that runs without a guide by determining its own position by means of a laser scanner or the like.

Conventional product

Although it was possible to design the robot to operate at high speed, the vibrations that occurred decreased the accuracy of wafer transfer. As a result, the number of wafers that could be transferred per hour was limited to 500.

Highlights of DAIHEN's technology for

achieving high transfer

speeds with low vibration

  • Direct-drivemotor
    Steel belt
    High-friction pads

UT-VDW3000

This model has achieved industry-leading wafer transfer speeds. In addition to significantly improving the productivity of semiconductor manufacturing, it has increased the number of wafers processed without increasing the number of devices used in the manufacturing operation.

[Carrier model]

[Towing model]

[Forklift model]

Pallets loaded with items for transport as

This model transports items by towing a

This model is capable of lifting and transporting

well as processed metal products can be

basket trolley or the like loaded with items to

packages and pallets placed directly on the

30 UP

Number of wafers transferred per hour:

500

Number of wafers transferred per hour:

650

placed on the platform of the main unit and

be transported.

floor.

transported.

This product earned the Main Prize at the 64th Nikkan Kogyo Shimbun's Best 10 New Product Awards in 2021.

For more details, visit our website

https://www.daihen.co.jp/newinfo_2022/news_220415.html

For more details, visit our website

https://www.daihen.co.jp/products/cleanrobot/wafer/ut-vdw3000hs.html

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DAIHEN REPORT 2022 8

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Disclaimer

Daihen Corporation published this content on 11 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 October 2023 08:54:05 UTC.