Growth and VisionCEO Message Our strength lies in our in-house development of hardware and software, and our comprehensive support system for customers that includes consulting, system building, production, installation, and maintenance. We will establish these strengths at a global level toward achieving further success amid fierce market competition. For the systems we deliver, in addition to providing maintenance services, we develop equipment comprising state-of-the-art electronic parts and make replacements whenever parts go out of production, even after many years of use. This support system ensures stable operation for customers using Daifuku products. Although ensuring stable operation and repaying the trust placed in us is a big responsibility, it has provided Daifuku with a large number of assets and customers. Services are a major part of our business, accounting for more than 20% of total sales (see figure below).Promoting greater social sustainabilityRecent years have seen calls for a greater focus on governance, the environment, and society. In fiscal 2019, Daifuku established an 11-member Board of Directors, four of whom are outside directors, and built the Audit Division that aims to strengthen internal control and is led by an officer with extensive auditing experience. Going forward, we will continue to construct a well-balanced corporate governance structure with an eye to even more transparent management. In addition, to increase the effectiveness of our internal whistleblowing system, we expanded the system to allow whistleblowing from partner companies as well as Group companies. Future efforts will focus on achieving an ever higher standard in fairness and ethics while building a more open corporate culture. Since 2011, Daifuku has contributed to society through an environmental certification program for its products, which aims at energy and resource conservation, as well as pollution control. We are now taking this a step further—starting last fiscal year, we have been carrying out an environmental management strategy aimed at decarbonizing society and achieving the SDGs (Sustainable Development Goals). As part of these efforts, in May 2019 we declared our support for the TCFD (Task Force on Climate-related Financial Disclosures) recommendations. In the future, we plan to disclose non-financial information within the framework of the TCFD recommendations.120100080Service salesRatio to net sales604020600402030105020182017201620152014201320122011201020092008(FY)(Billion yen)2121262627272525292931313030272728282525232351.951.940.240.243.343.350.150.158.658.675.875.881.281.292.392.389.489.4101.0101.0107.9107.9(%)12
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