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 (the period from April 1, 2021 to June 30, 2021), the global economy did at one point see a resumption of economic activity, aided by the start of vaccination campaigns against the COVID-19 pandemic from the second half of the previous fiscal year; however, the outlook remains uncertain given the spread of coronavirus variants and the uncertain timing of the end of the pandemic.
Amid these economic and business conditions, orders received by the Daifuku Group recovered significantly, mainly in Japan, from the same period of the previous fiscal year, when business negotiations were stagnant due to the impact of the COVID-19 pandemic. In addition, sales remained favorable.
Specifically, the Group received orders of 138,427 million yen, up 32.0% from the same period the previous fiscal year, and recorded sales of 120,220 million yen, up 5.5%.
Income increased, driven by increased sales of intralogistics systems for manufacturers and distributors and cleanroom systems for the semiconductor sector.
Consequently, the Group posted operating income of 10,517 million yen, up 16.5% from the same period the previous fiscal year, and ordinary income of 10,856 million yen, up 9.9%. Net income attributable to shareholders of the parent company was 7,726 million yen, up 4.5%.
2. Outlook for the fiscal year ending March 31, 2022
|FY2020||FY2021 (Forecast)||Rate of change|
|Orders received||451.0 billion yen||525.0 billion yen||up 16.4%|
|Net sales||473.9 billion yen||500.0 billion yen||up 5.5%|
|Operating income||44.5 billion yen||47.0 billion yen||up 5.5%|
|Ordinary income||45.8 billion yen||47.9 billion yen||up 4.5%|
|Net income attributable to shareholders of the parent company||32.3 billion yen||34.0 billion yen||up 5.0%|
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, 2021, Daifuku paid an interim dividend of 30 yen per share, and the Board of Directors passed a resolution to pay a year-end dividend of 50 yen per share at a meeting held on May 11, 2021, for an annual dividend of 80 yen per share, an increase of 5 yen per share from the initial plan. The consolidated dividend payout ratio was 31.1%.
With respect to dividends for the fiscal year ending March 31, 2022, Daifuku plans to pay an annual dividend of 85 yen (an interim dividend of 35 yen per share and a year-end dividend of 50 yen), taking into consideration the earnings forecast for the fiscal year ending March 31, 2022 and the basic policy described above.
We respectfully ask our shareholders and investors for their continued support.
Hiroshi Geshiro, President and CEO