Online Annual Report | 2017

Business Model

Societal Issues

  • Changes in business flows due to growth in e-commerce (C2B)

  • Labor shortages and the need to enhance productivity

  • Use of new technologies such as IoT, AI, and VR*

* VR: Virtual Reality



  • Financial capital
    Funds that can be used in sustainable corporate activities, including fund-raising and fund usage
  • Manufactured capital
    Non-current assets, including production equipment and systems
  • Human capital
    The skills and abilities of employees and their motivation as well as the organizational experience
  • Intellectual capital
    All types of intangible assets, including intellectual property and software, which the Company uses in creating value
  • Social and relationship capital
    Engagement and bonds of trust with society and stakeholders, along with systems to further develop those
  • Natural capital
    The natural environment and material resources that have an impact on the Company’s business activities and its sustainability

Seven Strengths

Product lineup, Financial capital, Human resources, Global reach, Installation record, Corporate governance, Services

Daifuku’s Business Activities

Daifuku’s Total Support: Consulting, Planning & Engineering, Design, Production, Installation & Operation, After-Sales Service & Retrofits; Value Innovation 2020

Value Provided

Customers Safety/Security Quality/Accuracy
We aim to develop products that meet customer needs and deliver the best, most appropriate solutions, designed with workplace safety and security in mind.
Shareholders and Investors Transparency
Through the timely disclosure of corporate and financial information, we aim to foster deeper understanding among shareholders and investors while also increasing our enterprise value through sustained growth.
Employees Work-Life Balance
We aim to foster a corporate culture that recognizes the role that all employees play in supporting our business by greatly valuing individual lifestyles and enabling employees to fully utilize their capabilities and derive fulfilment from their work.
Suppliers Trust Relationships
We work as one with our suppliers in the manufacturing of goods and equipment. Putting in place the means for the regular sharing of information, we strive daily to maintain good relationships based on mutual trust, and consistently adhere to laws and regulations in line with a common desire to work with confidence in each other.
Communities Environmental Conservation
As a good corporate citizen, we work closely with local communities towards global environmental conservation, and in addressing numerous social issues.

Risk Factors  >>

Price competition

We believe that the Daifuku Group’s products offer high value-added and incorporate technology, quality, and cost characteristics that competitors cannot easily replicate, but competition in the industries in which we do business is fierce, and the intensification of price competition has the potential to put pressure on our earnings.

Product quality issues

We endeavor to apply rigorous quality management to all products produced in Japan and abroad, and we hold liability insurance to safeguard against the possibility of unforeseen quality claims, but serious quality claims, should they arise, have the potential to affect the Group’s financial results.

Capital expenditures and economic conditions

All of our customers in the semiconductor and flat-panel display (FPD) market and the automotive market are among the industry leaders, actively engaged in capital expenditures with a view to the future, and exhibit strong growth, but temporary suspensions and/or postponements of capital expenditures due to sudden changes in demand trends in both markets, were they to occur, have the potential to affect the Group’s financial results.

Non-Japan business

We do business globally, particularly in North America and Asia. Relative to domestic operations in Japan, however, overseas business operations are subject to higher levels of risk from changes in social, political, and economic conditions, unforeseen regulatory changes, and the like.

Increasing project scale

With the recent advance of e-commerce, reductions in semiconductor sizes, increases in FPD sizes, and so forth, the systems that we are involved with are becoming more sophisticated and larger in scale than ever before. Our financial results may be affected by the timing of orders recorded, along with how efficiently all aspects of projects are managed.