Daifuku Report 2019

Elite Line Services (Texas)Jervis B. Webb of Canada (Ontario)BCS Group (Auckland)Intersystems (Asia Pacific)(Brisbane)BCS Integration Solutions (Kuala Lumpur)Scarabee Aviation Group (Amsterdam)Jervis B. Webb (Michigan)Daifuku Logan (Hull)Global operationsMarket environmentThe number of air passengers around the world reached 4.1 billion in 2017 and is forecast to rise to 8.2 billion by 2037, according to the International Air Transport Association (IATA). This growth in air passenger numbers and a shift to smart airports with enhanced safety, security, and convenience for passengers represents a business opportunity. One example can be found in moves to cut the waiting time required for airport procedures. IATA’s Fast Travel program places an emphasis on self-service processes to be performed by passengers. The air industry seeks an airport baggage handling system that integrates passenger and baggage information to boost the efficiency of airport operations and increase passenger satisfaction.InitiativesSince active capital investment is anticipated over the medium and long terms, we will boost sales capabilities to increase both sales volume and income. North America is the biggest market for the Daifuku Group, with brisk demand for the upgrading of aging facilities. We will enhance training on installation and construction quality and risk management for engineers and project managers. In Asia and Oceania, airport terminals are being expanded and there is growing demand for smart airport technologies, such as self-service bag drops (SBDs) that shorten check-in process times and achieve labor savings. With a short delivery lead time, SBDs have high earnings potential. In Europe, the European Commission is toughening its baggage inspection standards. Airports must meet the standards by 2020 in the United Kingdom and by 2022 on the Continent. We are stepping up sales efforts to capture such demand arising from the stricter security regulations. Going forward, in addition to our operations in existing hardware-centered businesses, we are going to expand our Airport Technologies business through our recent entry into the growing markets of airport security systems, integrated information systems and other digital related businesses. Through collaboration between all our airport-related affiliates around the world, we will bolster our global competitiveness. Capitalizing on the technologies and knowledge that we have developed as a leading supplier of systems for airports, we will continue to provide a broad array of automated systems that contribute to airport safety, efficiency, and accuracy.Global air traveler forecastSource: Based on data from Japan Data Communications Association (JADC) and IATA01,0002,0003,0004,0005,0007,0006,0008,0009,00020152005201720102037Forecast8,2004,1003,5682,6422,023M North AmericaM EuropeM Asia PacificM OtherBCS Airport Systems (Victoria)(Million)(CY)31Daifuku Report 2019

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