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
