To our shareholders and investors
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 first quarter of the fiscal year (from April 1, 2023 to June 30, 2023) , the global economic outlook remained uncertain with rising interest rates and concerns about economic recessions in the West due to continued inflation, together with the slow recovery of the Chinese economy.
The business environment surrounding the Daifuku Group has seen an accelerating investment in the shift to electric vehicles in the automotive industry. In addition, investment in automation at airports has grown in line with the recovery in the number of passengers. On the other hand, e-commerce-related and semiconductor investments, which had been at high levels in recent years, have entered a temporary lull.
In this economic and business environment, during the first quarter of the fiscal year under review, orders for automotive systems and airport systems remained favorable; however, orders for intralogistics systems from manufacturers and distributors declined from the same period the previous fiscal year when they were strong. Also, orders for cleanroom systems from semiconductor and flat-panel display manufacturers fell significantly, given a reactionary fall due to the orders received ahead of schedule in the previous fiscal year.
Sales were favorable in cleanroom, automotive, and airport systems, while sales of intralogistics systems fell short of the results of a year ago.
Specifically, the Group received orders of 130,019 million yen, down 38.3% from the same period the previous fiscal year, and recorded sales of 134,552 million yen, up 3.3%. Sales reached a new record high for the first quarter of the fiscal year.
Income reflected decreased sales of intralogistics systems and soaring raw material and labor costs.
Consequently, the Group posted operating income of 8,218 million yen, down 20.0% from the same period the previous fiscal year, and ordinary income of 9,410 million yen, down 10.7%. Net income attributable to shareholders of the parent company was 7,179 million yen, up 23.0%, mainly due to the absence of the extraordinary loss recorded in the year-ago period.
2. Outlook for the fiscal year ending March 31, 2024
| Year ended March 2023 | Year ending March 2024 (forecast) | Y/Y rate | |
| Orders received | 737.4 billion yen | 630.0 billion yen | down 14.6% |
| Net sales | 601.9 billion yen | 605.0 billion yen | up 0.5% |
| Operating income | 58.8 billion yen | 54.5 billion yen | down 7.4% |
| Ordinary income | 59.7 billion yen | 55.5 billion yen | down 7.1% |
| Net income attributable to shareholders of the parent company | 41.2 billion yen | 40.5 billion yen | down 1.8% |
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.
As part of our Value Transformation 2023 three-year business plan that began in April 2021, we aim to increase corporate value by investing in growth and achieve a consolidated payout ratio of 30% or higher.
We respectfully ask our shareholders and investors for their continued support.
August 2023
Hiroshi Geshiro, President and CEO