To Daifuku’s Shareholders and Investors

To Daifuku's 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 fiscal year ended March 31, 2021 (the period from April 1, 2020 to March 31, 2021), the global economy has continuously reflected the impact from the COVID-19 pandemic. During the second half, Japan and other countries did at one point see a resumption of economic activity and started their vaccination campaigns; 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, the Daifuku Group gives top priority to the lives, health and safety of its employees. The Group has continued its business activities in compliance with the requests and/or guidelines of authorities in each country, appropriately incorporating telework and taking other measures to prevent infections in all locations, including production, installation and servicing sites.

Orders bounced back from the third quarter as economic activities restarted; however, the figure fell short of the results of the previous fiscal year, reflecting delays in negotiations with customers, mainly due to restrictions on international/domestic movements and working at the office during the first half. In contrast, sales marked a new record high, underpinned by an extensive order backlog at the end of the previous fiscal year.

Specifically, the Group received orders of 451,065 million yen, down 6.6% from a year earlier, and recorded sales of 473,902 million yen, up 6.8%.

Income remained favorable, driven by increased sales of intralogistics systems for manufacturers and distributors in Japan.

Consequently, the Group posted operating income of 44,566 million yen, up 10.0% from the previous fiscal year, and ordinary income of 45,846 million yen, up 11.9%. Net income attributable to shareholders of the parent company was 32,390 million yen, up 15.4%.

2. Outlook for the fiscal year ending March 31, 2022

The earnings forecast for the fiscal year ending March 31, 2022 is as follows:

The earnings forecast for the fiscal year ending March 31, 2022 (April 1, 2021 - March 31, 2022)
FY2020 FY2021 (Forecast) Rate of change
Orders received 451.0 billion yen 520.0 billion yen up 15.3%
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.

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.

May 2021
Hiroshi Geshiro, President and CEO