Oct 25, 2010

Daifuku Forms Capital and Business Tie-Up with Knapp AG, Austria

October 25, 2010

Daifuku Co., Ltd. is pleased to announce that it has reached an agreement with Graz, Austria-based Knapp AG under which the two companies will collaborate in marketing material handling systems. Daifuku has also agreed to acquire from current Knapp management an equity stake in the company. Both agreements are dated October 22, 2010.

In April 2010, Daifuku announced a new three-year business plan called "Material Handling and Beyond." The plan calls for consolidated net sales of 220 billion yen and operating income of 11 billion yen for the fiscal year ending March 31, 2013, and envisions that these figures will lead to consolidated net sales of 250 billion yen and an operating margin equal to 10% of net sales for the fiscal year ending March 31, 2015. To achieve these management targets, Daifuku believes that its most important challenge is to identify new markets across the globe, going beyond conventional boundaries.

A solution provider in warehouse logistics and automation, Knapp services a broad range of industries mainly in Europe. It has a strong track record in piece-picking systems and software for pharmaceutical and cosmetics wholesalers in Europe and Latin America. In the European market, it is amongst the leading suppliers to pharmaceuticals wholesalers.

Daifuku specializes in large and midsize unit load automated warehouse systems and has an extensive customer base, while Knapp excels in piece-picking systems for the fashion industry and pharmaceuticals wholesalers. After building the framework for a cooperative partnership in sales and procurement between Daifuku and Knapp, the two companies expect further growth in their businesses and improved corporate value, given complementary products and customers and synergies in new markets.

To coincide with the collaboration, Daifuku took on October 22 a capital stake in Knapp with the acquisition from members of the current management team of approximately 6% of total shares outstanding. The minor impact on Daifuku's results in the current fiscal year ending March 2011 is estimated accordingly.

Profile of Knapp
Company name: Knapp AG
Headquarters: Graz, Austria
Representative: Eduard Wünscher, CEO
Established: 1952
Employees: 1,556
Net sales:
204.6 million euro (for the fiscal year ended March 2010) = 23.1 billion yen* (approximately)
*Converted at euro to 113 yen