Review of Value Innovation 2017
Daifuku achieved nearly all its management targets for the previous medium-term business plan, Value Innovation 2017. Under the new business plan, Value Innovation 2020 starting in fiscal 2017, we aim to become a truly world-leading company in material handling.
Steadily achieving goals
Aiming to become the Truly Global No. 1
under the Value Innovation 2020 Business Plan
FY2012
-
Consolidated Sales
¥202.3
billion -
Operating Margin
4.0% -
Rating
A-
[Stable] -
Global
No. 2*
Value Innovation 2017 (FY2013–FY2016)
Themes
-
Business
Domains
Mature Japanese markets;
globalizing markets -
Profitability
Intensified price competition; competitors from emerging countries entering into markets -
Operational
Efficiency
Challenges in effectively using operating resources within the Group -
Brand Power
Limited differentiation from competitors with only enhancing hardware functionality
Initiatives and Results
- Identifying new businesses and markets
- 2013: Acquired U.S.-based Wynright, to expand FA&DA business in the U.S.
- 2014: Acquired New Zealand-based BCS, to expand ATec business
- Served global demand for automation in the e-commerce market
- One-of-a-kind/Device businesses: BAGgate, D-PAD, CONPROSYS, audit
- Bolstering global business
- Non-Japan sales ratio: 52% → 65%
- Non-Japan employee headcount: 3,742 → 5,536
- Expanding existing business
- Service sales ratio: 25%
- Established retrofitting business
- Increasing value added
- Provided high-end solutions that deliver high value-added in e-commerce, etc.
- Boosting cost-competitiveness
- Expanded non-Japan production
- Implemented bulk purchasing, standardization
- Strengthening businesses using ICT*
- Real-time sharing of customer/project data, etc., across the network to help boost productivity
* ICT: Information & Communications Technology
- Leveraging managerial resources
- Initiated use of ATec’s Sym3 (3D software) for FA&DA business, providing avenues for using technology across businesses
- Enhancing financial integrity
- Paid-in capital: 8 billion yen → 15 billion yen
- Per-share dividend: 15 yen → 42 yen
- Included in the JPX-Nikkei Index 400
- Streamlining business operations
- Systematized Group operations
- Optimized U.S./Chinese subsidiaries
- Raising employee awareness
- Conducted annual employee awareness surveys, 4 times in total
- Offered global business training for Japan-based staff and leadership training for global staff
- Changing the approach to customers
- Shifted from physical-visit-based to information-based model of customer acquisition, making effective use of websites and exhibitions
- Building a new brand
- To evolve into a value innovator, established the brand message of “Always an Edge Ahead”
- Held brand briefings at affiliates and offices worldwide
FY2016
-
Consolidated Sales
¥320.8
billion -
Operating Margin
7.2% -
Rating
A-
[Positive] -
Global
No. 1*
Value Innovation 2020
FY2020 Targets
(Year ending March 2021)
-
Consolidated Sales
¥420.0
billion -
Operating Margin
8.0% -
Rating
A -
The Truly Global
No. 1
* Source: Modern Materials Handling