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 three quarters of the fiscal year (from April 1, 2022 to December 31, 2022), the global economy generally showed signs of recovery, as behavioral restrictions imposed by the COVID-19 pandemic have been lifted or eased, mainly in Europe and the United States. Meanwhile, inflation and supply chain disruptions have not ended and given rising interest rates and recessionary concerns in Europe and the United States, the outlook remains uncertain.
In this economic and business environment, the Daifuku Group saw year-on-year increases in orders in all businesses. In particular, orders for cleanroom systems and airport systems remained strong. Sales were generally robust, driven by cleanroom systems and airport systems underpinned by an extensive order backlog from the end of the previous fiscal year, although some projects were affected by factors such as the longer time required to procure materials and components.
Specifically, the Group received orders of 599,857 million yen, up 35.9% from the same period the previous fiscal year, and recorded net sales of 435,689 million yen, up 17.9%.
Income was affected by factors such as soaring raw material costs and labor expenses. However, due to the increased sales, the Group posted operating income of 40,170 million yen, up 21.8% from the same period the previous fiscal year, and ordinary income of 40,739 million yen, up 20.0%. Net income attributable to shareholders of the parent company was 28,763 million yen, up 20.6%.
Orders received, net sales, operating income, and ordinary income reached new record highs for the first three quarters of the fiscal year.
2. Outlook for the fiscal year ending March 31, 2023
|FY2021||FY2022 (Forecast)||Rate of change|
|Orders received||589.0 billion yen||720.0 billion yen||up 22.2%|
|Net sales||512.2 billion yen||590.0 billion yen||up 15.2%|
|Operating income||50.2 billion yen||57.0 billion yen||up 13.4%|
|Ordinary income||51.2 billion yen||57.7 billion yen||up 12.6%|
|Net income attributable to shareholders of the parent company||35.8 billion yen||40.0 billion yen||up 11.5%|
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.
The Company has decided its interim dividend for the fiscal year ending March 31, 2023 to 40 yen per share, based on a resolution made at the Board of Directors meeting held on November 8, 2022. The Company plans to pay a year-end dividend of 65 yen per share, for an annual dividend of 105 yen and dividend payout ratio of 33.1%
We respectfully ask our shareholders and investors for their continued support.
Hiroshi Geshiro, President and CEO