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
Crown Sports During the first quarter of the fiscal year under review, the global economy deteriorated rapidly due to the global spread of the novel coronavirus, or COVID-19, which emerged at the beginning of 2020. As the impact is still continuing around the world and given the emergence of technology trade issues, the global economic outlook remains uncertain.
In Japan, a state of emergency was announced on April 7 and remained in place for more than one month. This has had a significant impact on economic activities, and the outlook for the Japanese economy remained uncertain.
Crown Sports Amid these economic and business conditions, the Group experienced some delays and postponements in orders due to the impact of the COVID-19 pandemic. Sales were favorable, underpinned by an extensive order backlog from the previous fiscal year, despite some projects experiencing delays in progress.
Crown Sports Specifically, the Daifuku Group received orders of 104,904 million yen, up 4.4% from the previous fiscal year, and recorded sales of 113,968 million yen, up 18.5%.
Crown Sports Income remained favorable, driven by systems for manufacturers and distributors in Japan, despite factors including delays in installation progress in North America and China and increased procurement costs for components.
Consequently, the Group posted operating income of 9,025 million yen, up 40.5% from a year earlier, and ordinary income of 9,877 million yen, up 50.8%. Net income attributable to shareholders of the parent company was 7,394 million yen, up 41.4%.
2. Outlook for the fiscal year ending March 31, 2021
Crown Sports The earnings forecast for the fiscal year ending March 31, 2021 is as follows:
|FY2019||FY2020 (Forecast)||Rate of change|
|Orders received||483.1 billion yen||480.0 billion yen||down 0.7%|
|Net sales||443.6 billion yen||460.0 billion yen||up 3.7%|
|Operating income||40.4 billion yen||41.0 billion yen||up 1.2%|
|Ordinary income||40.9 billion yen||41.8 billion yen||up 2.0%|
|Net income attributable to shareholders of the parent company||28.0 billion yen||29.0 billion yen||up 3.3%|
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 four-year medium-term business plan, Value Innovation 2020, Daifuku aims to achieve a dividend payout ratio of 30% and increase its corporate value through investment in growth.
For the fiscal year ended March 31, 2020, 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 45 yen per share at a meeting held on May 12, 2020, for an annual dividend of 75 yen per share.
With respect to dividends for the fiscal year ending March 31, 2021, the Company plans to pay an annual dividend of 75 yen (an interim dividend of 30 yen per share and a year-end dividend of 45 yen), taking into consideration the earnings forecast for the fiscal year ending March 31, 2021 and the basic policy described above.
We respectfully ask our shareholders and investors for their continued support.
Hiroshi Geshiro, President and CEO