Targets and Results

Evolving existing businesses, expanding into new areas, developing next-generation solutions

We are strengthening the development of products and solutions that incorporate advanced technologies as well as our proposals aimed at new markets and meeting customer needs. We are making steady progress toward achieving the targets set for each business unit.

• *Transportation Security Administration

Predictive maintenance system using AI technology

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In our intralogistics business, the Group has established a unique predictive maintenance system that automates visual, manual, and auditory inspections. The predictive maintenance system measures vibration, heat generation, and acoustics using our proprietary sensors, analyzes the data collected by edge devices onsite using a PC, and notifies the customer of equipment abnormalities and predicted failure points. The system also automatically uploads data to the cloud, analyzes failure data, and builds an equipment diagnostic abnormality detection model using AI. This system eliminates conveyor system breakdowns and keeps equipment running smoothly.

Establishing a system to bolster growth

We are taking steps for the cultivation of human resources who will lead further growth of the Group and future-oriented technical development. We are also maintaining capital investments in Japan, the United States, and India, as well as investments for digitalization and expansion of our human capital.

• *Capital investment, R&D expenses, investment in human capital, etc.

Construction of new plants

In fiscal 2023, Daifuku (Suzhou) Cleanroom Automation Co., Ltd., which handles sales and manufacturing of transport systems for LCD and semiconductor plants in Suzhou, China, relocated and began operations at a newly built headquarters and plant. The site has an area of approximately 31,000m² and a total floor area of approximately 37,000m², and this new facility is expected to increase production capacity by about 1.4 times that of the previous. The facility was built based on the concepts of progressiveness, energy conservation, CO₂ emissions reduction, and social contribution, and it includes a display line for customers, a large-scale photovoltaic system on the roof, and a work environment that contributes to employee productivity.

Daifuku Intralogistics India Private Limited, which develops systems for general manufacturing and distribution industries, has constructed a new plant in Telangana, India, and full-scale operations began in April of 2025. Due to the growth of the Indian market in recent years, the demand for material handling systems is increasing dramatically. With the construction of this new factory, the company will manufacture automated warehouses, conveyors, and other systems for manufacturers in the food, chemicals, machinery, and rubber product industries as well as retail, transport, and warehousing distributors, expanding the product lineup. The production space has been expanded to approximately four times that of the previous plant, and it is expected to double in size again in the future with further expansion. In addition, photovoltaic systems have been installed on the premises, and initiatives to reduce CO₂ emissions are underway.

Revamping overall business operations

In order to disseminate the Group’s Sustainable Procurement Guidelines and to understand and mitigate risks in the supply chain, we started implementing a self-assessment questionnaire (SAQ) for suppliers in Japan based on these guidelines. We are strengthening our management of procurement risks through audits based on the results of responses to this questionnaire and interviews with subsidiaries outside of Japan among other measures.

• *Accidents caused by the malfunction of Daifuku’s products or systems leading to death or serious illness and/or injury during operations (injury and/or illness requiring 30 or more days of treatment)

Safety reinforcement

Within and outside of Japan, the number of accidents resulting in lost time remained at the same level as the previous fiscal year. In order to prevent the recurrence of similar accidents, we will strengthen safety training within and outside of Japan, such as by sharing examples of past accidents.

• *1Calculations include installation contractors
• *2Accidents resulting in death or permanent injury during work at Daifuku

Eliminating environmental impact

To achieve the Daifuku Environmental Vision 2050, we are working to reduce the CO₂ emissions generated throughout our supply chain and introduce electricity derived from renewable energy sources, and we are globally expanding our activities related to biodiversity conservation.

• *1For Scope 3 Category 1 and Category 11, pursue qualitative targets with the aim of a 30% reduction (compared to FY2018) by FY2030
• *2Daifuku’s own framework on efforts (sharing of goals and supporting measures to reduce emissions, etc.) to reduce CO₂ emissions at suppliers
• *3Waste generated (tons) divided by net sales (100 million yen)
• *4Water consumption (1,000 m³) divided by net sales (100 million yen)
• *5Sites with 100 or more employees
• *6Daifuku’s unique program for sustainability awareness and training

Strengthening management structure and refining business management

In addition to strengthening our management structure by improving the effectiveness of the Board of Directors, we are working to disseminate the management philosophy, Group policies, management strategies, etc., and to strengthen our response to critical risks with a view to refining business management on a global scale. We will also continue to engage in dialogue with all stakeholders and reflect the findings into our measures.

Organizational strengthening

We are working to expand the human capital necessary to achieve further growth and to create an environment where each employee is able to realize a sense of job satisfaction and ease of work. Moreover, we are increasing our efforts to respect human rights, including by continuing to conduct human rights due diligence and beginning to consider the introduction of grievance mechanisms to support this process.