Online Annual Report | 2017

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


  • Consolidated Sales

  • Operating Margin

  • Rating

  • Global
    No. 2*

Value Innovation 2017 (FY2013–FY2016)


  • Business

    Mature Japanese markets;
    globalizing markets

  • Profitability
    Intensified price competition; competitors from emerging countries entering into markets

  • Operational

    Challenges in effectively using operating resources within the Group

  • Brand Power
    Limited differentiation from competitors with only enhancing hardware functionality

Initiatives and Results

  1. 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
  2. Bolstering global business
    • Non-Japan sales ratio: 52% → 65%
    • Non-Japan employee headcount: 3,742 → 5,536
  3. Expanding existing business
    • Service sales ratio: 25%
    • Established retrofitting business
  1. Increasing value added
    • Provided high-end solutions that deliver high value-added in e-commerce, etc.
  2. Boosting cost-competitiveness
    • Expanded non-Japan production
    • Implemented bulk purchasing, standardization
  3. Strengthening businesses using ICT*
    • Real-time sharing of customer/project data, etc., across the network to help boost productivity

* ICT: Information & Communications Technology

  1. Leveraging managerial resources
    • Initiated use of ATec’s Sym3 (3D software) for FA&DA business, providing avenues for using technology across businesses
  2. 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
  3. Streamlining business operations
    • Systematized Group operations
    • Optimized U.S./Chinese subsidiaries
  1. 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
  2. Changing the approach to customers
    • Shifted from physical-visit-based to information-based model of customer acquisition, making effective use of websites and exhibitions
  3. 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


  • Consolidated Sales

  • Operating Margin

  • Rating

  • Global
    No. 1*

Value Innovation 2020
FY2020 Targets
(Year ending March 2021)

  • Consolidated Sales

  • Operating Margin

  • Rating

  • The Truly Global
    No. 1

* Source: Modern Materials Handling