To our shareholders and investors

1. Operating and financial review

Consolidation period and comparative information due to the change in fiscal year-end
Effective from the fiscal year ended December 31, 2024, the fiscal year-end (the closing date of the fiscal year) of the Company has been changed from March 31 to December 31 every year. Accordingly, the previous fiscal year, an irregular accounting period, ran for nine months from April 1 to December 31, 2024 for Daifuku Co., Ltd. and its subsidiaries with a fiscal year ending in March, mainly in Japan. Most subsidiaries outside of Japan were consolidated for the 12-month period from January 1 to December 31, 2024. As a reference, comparative information with the same period of the previous year (hereinafter, “prior-year reference period”) is provided, adjusted by adding the results for the three-month period from January 1 to March 31, 2024 of Group companies with a fiscal year ending in March.

During the fiscal year ended December 31, 2025, the global economy generally remained favorable, although uncertainty increased due to the impact of U.S. trade policy and downside risks associated with the sluggish Chinese economy.

Looking at the business environment, for the manufacturing and distribution sectors in Japan and the United States, investment in automation at manufacturing and logistics sites is recovering against the backdrop of labor shortages and substantially higher labor costs. In the semiconductor industry, demand for advanced semiconductor investment including the automation of back-end processes, remains strong, supported by increasing demand for AI applications. In China, investment continues in line with efforts to strengthen and promote domestic production. In the automotive industry, while customers have temporarily delayed investment decisions to assess the impact of tariffs under U.S. Trade policy, a high level of investment continued to be planned, mainly in the United States. Meanwhile, demand is continuing for investment in automation at airports to meet the increase in the number of air passengers, particularly in the United States and certain other countries.

In this economic and business environment, during the fiscal year, orders for automotive systems fell short of the prior-year reference period, while orders for intralogistics systems from manufacturers and distributors, cleanroom systems from the semiconductor sectors, and airport systems remained steady.

Sales increased as intralogistics systems and cleanroom systems performed steadily, benefiting from an extensive order backlog from the end of the previous fiscal year.

Specifically, the Group received orders of 672,618 million yen, up 3.0% from the prior-year reference period, and recorded sales of 660,724 million yen, up 2.6%, marking a new record high and surpassing the previous peak recorded in the fiscal year ended March 2024.

In terms of profits, the profit margin improved and profit increased due to cost reductions achieved through production efficiency improvements and enhanced project management, as well as a focus on securing orders with strong profitability.

Consequently, the Group posted operating income of 100,816 million yen, up 24.4% from the prior-year reference period, and ordinary income of 104,649 million yen, up 24.1%. Net income attributable to shareholders of the parent company was 78,096 million yen, up 21.3%.

Operating income, ordinary income, and net income attributable to shareholders of the parent company all reached new record highs for four years in a row.

2. Outlook for the fiscal year ending December 31, 2026

The above forecast values are our projections based on information available at the time of this release and contain various uncertainties. Actual results may differ materially from forecast values due to factors such as changes in the business performance of the Company.

3. Basic policy for dividends

The Company regards the return of profits to shareholders as one of its most important management tasks and adopts a performance-based policy regarding cash dividends based on consolidated net income. After dividends, the Company appropriates the remaining surplus to internal reserves to be used as investment funds for future growth.

In the four-year business plan for 2027 that started in April 2024, the Company aims to achieve a consolidated dividend payout ratio of 35% or more for each fiscal year.

For the fiscal year ended December 31, 2025, the Company paid an interim dividend of 34 yen per share, and at a meeting held on February 12, 2026 the Board of Directors passed a resolution to pay a year-end dividend of 44 yen per share. As a result, the annual dividend is projected to be 78 yen per share, and the consolidated dividend payout ratio is expected to be 36.7%.

With respect to dividends for the fiscal year ending December 31, 2026, the Company plans to pay an annual dividend of 82 yen (an interim dividend of 36 yen per share and a year-end dividend of 46 yen), with a consolidated dividend payout ratio of 37.7%, based on the earnings forecast for the fiscal year ending December 31, 2026 and the shareholder return policy.

We respectfully ask our shareholders and investors for their continued support.

February 2026
Tomoaki Terai, President and CEO