To our shareholders and investors

Hiroshi Geshiro, President and CEO

We would like to begin this message by expressing gratitude to our shareholders and investors for their ongoing support.

1. Operating and financial review

During the fiscal year (from April 1, 2021 to March 31, 2022) under review, the global economy continued to experience a moderate recovery overall, emerging out of the economic stagnation created by the COVID-19 pandemic. Nonetheless, the outlook remains uncertain, with risks including a resurgence of infections with new COVID-19 variants, soaring raw material and energy prices, rising labor costs in some regions, and delays in production and sales caused by difficulty in procuring materials.

Amid this business environment, orders received by the Daifuku Group increased significantly, particularly in intralogistics systems for manufacturers and distributors in Japan and cleanroom systems for the semiconductor and flat-panel display (FPD) sectors in Asia, backed by strong capital investment in customer industries. Sales also surpassed the level of the previous fiscal year, underpinned by an extensive order backlog from the end of the previous fiscal year.

Specifically, the Group received orders of 589,069 million yen, up 30.6% from a year earlier, and recorded sales of 512,268 million yen, up 8.1%, achieving new record highs in orders and sales.

Income remained favorable overall, driven by profitability in intralogistics systems in Japan, despite being affected by additional costs posted in large projects involving automotive systems outside of Japan.

Consequently, the Group posted operating income of 50,252 million yen, up 12.8% from the previous fiscal year, and ordinary income of 51,253 million yen, up 11.8%. Net income attributable to shareholders of the parent company was 35,877 million yen, up 10.8%.

2. Outlook for the fiscal year ending March 31, 2023

  FY2021 FY2022 (Forecast) Rate of change
Orders received 589.0 billion yen 600.0 billion yen up 1.9%
Net sales 512.2 billion yen 565.0 billion yen up 10.3%
Operating income 50.2 billion yen 56.5 billion yen up 12.4%
Ordinary income 51.2 billion yen 57.5 billion yen up 12.2%
Net income attributable to shareholders of the parent company 35.8 billion yen 39.6 billion yen up 10.4%

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

Daifuku regards the return of profits to shareholders as its most important management task and has adopted a performance-based policy for cash dividends based on consolidated net income, with the aim of achieving additional profit distribution to shareholders. We appropriate the remaining surplus to internal reserves for future growth.

Under its three-year business plan Value Transformation 2023, Daifuku aims to achieve a consolidated dividend payout ratio of 30% or more on average for the three years and increase its corporate value through investment in growth. For the fiscal year ended March 31, 2022, the Company paid an interim dividend of 35 yen per share, and the Board of Directors passed a resolution to pay a year-end dividend of 55 yen per share at a meeting held on May 13, 2022, for an annual dividend of 90 yen per share, an increase of 5 yen per share from the initial plan. This represents a dividend payout ratio of 31.6%.

With respect to dividends for the fiscal year ending March 31, 2023, the Company plans to pay an annual dividend of 105 yen (an interim dividend of 40 yen per share and a year-end dividend of 65 yen) and a dividend payout ratio of 33.4%, taking into consideration the earnings forecast for the fiscal year ending March 31, 2023 and the basic policy described above.

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

May 2022
Hiroshi Geshiro, President and CEO