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 first half of the fiscal year (from April 1, 2022 to September 30, 2022), the global economic outlook remained uncertain. Although restrictions on international and domestic movements imposed by the COVID-19 pandemic were eased, sharp and sustained rises in raw material and energy prices, supply chain disruptions due to lockdowns in China, rising interest rates and concerns about economic recessions in Europe and the United States all contributed to the volatility.

In this economic and business environment, during the first half of the fiscal year, the Daifuku Group saw a significant year-on-year increase in orders for cleanroom systems and airport systems. In addition, orders remained steady in automotive systems and intralogistics systems. Sales were generally positive, 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 400,121 million yen, up 49.7% from the same period the previous fiscal year, and recorded net sales of 277,782 million yen, up 14.1%.

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 24,466 million yen, up 20.4% from the same period the previous fiscal year, and ordinary income of 24,883 million yen, up 21.1%. Net income attributable to shareholders of the parent company was 17,013 million yen, up 22.2%.

Orders received, net sales, operating income, and ordinary income reached new record highs for the first half 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 710.0 billion yen up 20.5%
Net sales 512.2 billion yen 580.0 billion yen up 13.2%
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.

November 2022
Hiroshi Geshiro, President and CEO