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 fiscal year (from April 1, 2023 to March 31, 2024), the global economy generally remained favorable, despite a slowdown in the Chinese economy and concerns of an economic slowdown due to monetary tightening in Europe and the United States.

The business environment surrounding the Daifuku Group has seen accelerating capital spending associated with the shift to xEVs (a generic term for electric vehicles, including BEVs, HEVs, PHEVs, and FCEVs) in the automotive industry. In addition, investment in automation at airports has grown in line with the recovery in the number of air passengers. Over the past several years, while investment in e-commerce, which had been robust in North America and Japan, has been experiencing a temporary lull, capital spending in the general manufacturing sector has been recovering. In the semiconductor industry, investment in legacy semiconductors in China continued at a high level, and signs of recovery are seen in investment in logic and memory semiconductors, which had been weak.

In this economic and business environment, orders received by the Group were almost in line with the initial plan announced at the beginning of the fiscal year under, despite a reactionary fall in orders for cleanroom systems for semiconductor and flat-panel display production lines from the orders received ahead of schedule in the previous fiscal year.

Sales were strong in automotive systems and airport systems, benefiting from an extensive order backlog from the end of the previous fiscal year, while sales of intralogistics systems for manufacturers and distributors and cleanroom systems fell short of the results of a year ago.

Specifically, the Group received orders of 620,312 million yen, down 15.9% from the same period of the previous fiscal year, and recorded sales of 611,477 million yen, up 1.6%.

Overall, income significantly exceeded the initial plan. In intralogistics systems, profitability improved in North America, mainly reflecting progress in revising prices in line with higher costs due to soaring raw material and labor expenses. In cleanroom systems, profitability improved due to cost reduction efforts, despite the impact of lower sales. In automotive systems, profitability increased along with increased sales. Meanwhile, profitability declined in airport systems, mainly reflecting soaring raw material and labor costs and one-time costs recorded for certain projects in Oceania.

Consequently, the Group posted operating income of 62,079 million yen, up 5.5% from the previous fiscal year, and ordinary income of 64,207 million yen, up 7.4%. Net income attributable to shareholders of the parent company was 45,461 million yen, up 10.2%. Sales, operating income, ordinary income, and net income attributable to shareholders of the parent company reached new record highs for the second consecutive year.

2. Outlook for the fiscal year ending March 31, 2024

  Year ended March 2024 Year ending December 2024 forecast [Reference]
Year ending December 2024 forecast adjusted (12 months)
Orders received 620.4 billion yen 575.0 billion yen 630.0 billion yen
Net sales 611.4 billion yen 550.0 billion yen 630.0 billion yen
Operating income 62.0 billion yen 52.0 billion yen 65.6 billion yen
Ordinary income 64.2 billion yen 53.5 billion yen 67.1 billion yen
Net income attributable to shareholders of the parent company 45.4 billion yen 39.0 billion yen 48.4 billion yen

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.

Due to the change in fiscal year-end, the fiscal year ending December 2024 will be a 9-month period in Japan and a 12-month period outside of Japan. In the table above, "Year ending December 2024 forecast" reflects results for 9 months in Japan and 12 months outside of Japan, and "Year ending December 2024 forecast adjusted (12 months)" is calculated assuming a 12-month period in and outside of Japan.

3. Basic policy for dividends

We regard 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. We will appropriate the remaining surplus to invest for future growth.

Under the four-year business plan for 2027, we have increased the target of consolidated dividend payout ratio to 35% or more for each year to enhance shareholder returns.

We respectfully ask our shareholders and investors for their continued support.

May 2024
Hiroshi Geshiro, President and CEO


The information you are about to access is not for release, publication or distribution in the United States of America. By proceeding to access the information, you agree and confirm that you are not in the United States of America.