Daifuku Report 2021

Contents

01

Editorial Policy, Disclosed Information

02

Our Mission

04

History

06

Our Business

08

CEO Message

Chapter 1

18 Daifuku Value Creation Model

Daifuku's Value Creation

20

Our Competitive Edge

22 Global Presence

28

Our Material Handling Solutions

Editorial Policy

This report presents a brief summary of material information particularly relevant to the Daifuku Group's value creation in line with international frameworks, including IIRC*1 and GRI*2 standards. See the Company website for more detailed information: www.daifuku.com

  • The report covers 68 companies, including the parent company,
    66 consolidated subsidiaries, and one equity-method affiliate (as of March 31, 2021).

*1 IIRC: International Integrated Reporting Council

*2 GRI: Global Reporting Initiative

Period covered  Fiscal 2020 (April 2020 - March 2021) Whenever it is appropriate to include historical background information and data or recent examples, reporting may include matters outside this time period.

Chapter 2

Daifuku's Growth Strategy

  1. Historical Challenges of Growth Strategy
  1. Three-YearBusiness Plan Value Transformation 2023
  1. Message from the Corporate Officer Responsible for Finance
  1. Message from the Production Officer
  1. Strategies by Business
  1. Risk Management

Disclosed Information

For details about Daifuku, see the following.

Corporate

Financial

Chapter 3

52 Sustainability Management

Daifuku's Sustainability

54

Materiality

56 Sustainability Action Plan

58

Respect Human Dignity

60

Disclosure of Climate Change Information

62

Daifuku Environmental Vision 2050

64

SASB Disclosure Information Index

Chapter 4

68 Board of Directors

Daifuku's Governance

70

Management

74 Corporate Governance

82

Interview with Outside Directors

86

Key Performance Indicators

88

Eleven-Year Financial Summary

90

Company Profile and Stock Information

Corporate Site

www.daifuku.com

DAIFUKU PROFILE

www.daifuku.com/ir/financials/recent

Business

Intralogistics

www.daifuku-logisticssolutions.com/en

Cleanroom

www.daifuku.com/pro/efa

Automotive

www.daifuku.com/pro/aps

Airport

www.daifukuatec.com

Electronics (Contec Americas Inc.)

www.contec.com/us

Investor Relations

www.daifuku.com/ir

Daifuku Report 2021 Financial Section

www.daifuku.com/ir/library/annualreport

Non-Financial

ESG (environment, society, governance) Data

www.daifuku.com/sustainability/data/esg-data

Sustainability Management

www.daifuku.com/sustainability/management

Sustainability Action Plan

www.daifuku.com/sustainability/management/plan

Corporate Governance

www.daifuku.com/ir/policy/governance

1

Our Mission

The Daifuku Group revised its management philosophy in October 2021. The new management philosophy, "Automation that Inspires," expresses our determination to create a sustainable society that enhances well-being, minimizes burdens on the environment and respects human rights, through our core competence-automated material handling technology.

Corporate policies

Company creed

Today we are doing better

than we were yesterday.

Tomorrow we will be growing

ahead of where we are today.

Group Code of

Contact

Basic Stance

We will act in accordance with applicable laws rules, regulations, social norms and ethics.

We will place safety as a major premise in all aspects of our business activities.

We will remain committed to the creed of "Hini Arata" as we take on new challenges and make changes for the better.

Management philosophy

Inspire society, deliver prosperity and enhance well-being through our core competence- automated material handling technology.

We will

  1. strive to realize a sustainable society that minimizes burdens on people and
    the environment, respects human rights, and encourages responsible manufacturing.
  2. work together with customers around the world to create optimal smart logistics solutions that incorporate innovative technologies.
    ensure a fair and open corporate culture that respects diversity and allows each
  3. individual to excel. Further, we will strengthen our fundamental management practices globally to have a high level of transparency.

Brand message

In line with this development, Daifuku has also changed its brand message from "Always an Edge Ahead" to "Automation that Inspires."

Daifuku logo and new brand message

2

3

History

As a comprehensive manufacturer and integrator of material handling systems, Daifuku has been contributing

1993

2004

2011

2016

2020

to the modernization of material handling by constantly striving to move ahead of the times and catering to customer needs. Material handling technologies are now essential for society. Daifuku's technologies are applied to a wide range of sectors and contribute to such areas as factory automation for semiconductors, flat‑panel displays (FPDs), automobiles, and other manufacturers; labor-saving at distribution centers; and streamlining of airport operations.

Path of innovation

1959

1966

1976

1984

Develops the world's first

Develops an environmentally

Develops the world's fastest

Commences sales of the world's

electrified monorail system

friendly automobile paint system

airport baggage handling system

first wireless battery charging

with non-contact power supply

system for electric forklifts

Develops an automated warehouse system with shuttle vehicles, which enables extra high-density storage of large lot items

(Billion yen)

500

450

400

350

Delivers Webb chain conveyors

Delivers Japan's first high-rise

Delivers Japan's first steel

Develops cleanroom transport

to Japan's first passenger

automated warehouse system

belt-type automated sorter

systems-a pioneering step

300

automobile factory

in the development of

semiconductor manufacturing

250

200

150

100

50

Sales

0

1960

1970

1980

1990

2000

2010

2020 (FY)

1950s

1960s -1970s 

1980s -1990s

Since 2000

Since 2013

Motorization

Factory automation (FA)

Entering the semiconductor market,

LCD growth, air passenger growth

E-commerce momentum

full-scale distribution automation, advanced FA

Product development by business

1937

Founded

1969

1973

1976

1986

1992

Online-controlled

Automated frozen

Automated

Pick-to-light

Automated sorting

automated

storage

sorters

systems

system for small

warehouse

goods

systems

1984

Cleanroom transport

and storage systems

1957

1983

1991

Webb chain conveyor systems

Electrified monorail

Chainless conveyor

(Technical partnership with U.S.-based

systems for automobile

systems

Jervis B. Webb Company from 1957 to 1977)

production

1977

1998

Launch of the car wash machine business

Gate-type car

wash machines

1975

Establishes Contec Co., Ltd.

2010

2012

2014

2020

Intralogistics Business

Fresh produce

Mini load automated

High-throughput mini load automated

Extra high-density

Manufacturing and distribution systems

sorting systems

warehouse systems

warehouse systems

unit load automated

with shuttle vehicles

warehouse systems

2002

2012

2016

2017

Cleanroom Business

5G LCD panel

Nitrogen purge systems for

Wireless

10.5G FPD production

Cleanroom production line systems

transport systems

semiconductor factories

battery

line systems

charging systems

2004

2012

2014

2018

Automotive Business

Environmentally friendly

Automobile

Temporary storage/sortation

Drive-through

Automobile production line systems

paint systems

assembly leveling

systems for parts

loading/unloading

systems

truck stations

2007

2011

2014

2016

Airport Business

Enters the airport business

Baggage Tray System

Self-service baggage

Early Baggage Storage

Airport technologies

(Jervis B. Webb joins

check-in system

the Daifuku Group)

(NZ-based BCS joins

the Group)

2007

2018

Auto Wash Business

Environmentally friendly

Large-vehicle wash

Car wash machines

car wash machines

machines

2007

2015

Electronics Business

Contec listed on

Products for

the Second Section of

the IoT market

the Tokyo Stock Exchange

4

5

Our Business

As a comprehensive manufacturer and integrator of material handling systems, Daifuku has been offering its solutions to respond to the challenges of customers in a wide range of industries.

Intralogistics

Manufacturing and distribution systems

Provides storage, transport, sorting, and picking systems to distributors and manufacturers in wide-ranging sectors, including e-commerce.

Cleanroom

Cleanroom production line systems

Provides cleanroom storage and transport systems to semiconductor and FPD factories essential for smartphones and tablet terminals.

Automotive

Automobile production line systems

Provides automobile production line systems to automakers worldwide, centered around Japanese companies. The systems convey car bodies through the entire manufacturing process, including press, weld, paint, and assembly.

Airport

Airport technologies

Provides a broad range of automated systems for airports, including baggage handling systems, to maintain safety, efficiency, and reliability.

Auto Wash

Car wash machines

Provides car wash machines and related equipment mainly for service stations, car dealers, and self-service car washes.

Electronics

Provides high-end industrial personal computers, circuit boards for measurement control, and network-related products through Daifuku's subsidiary Contec Co., Ltd.

FY2020 Results

Precision equipment,

Other

printing, office equipment

1. 8%

3 . 4%

Iron, steel,

Airport

Automobile,

nonferrous metals

0 . 9 %

8 .7 %

auto parts

16 . 9 %

Food

3.7%

Chemicals,

pharmaceuticals

3 . 9 %

Sales

Machinery

by industry

2 . 4%

Transportation,

warehousing

5 . 0 %

Commerce, retail

Electronics

24 . 4%

28 . 9 %

Electronics

Intralogistics

Auto Wash

Airport

Sales

by business

Automotive

Cleanroom

Other

2 . 9 %

Europe

Japan

2 . 8%

34 . 6%

Asia

30 . 4%Sales

by destination

North America 29 . 3%

Other

Europe

Japan

Taiwan

Patents registered

China

by region

South Korea

U.S.A.

6

7

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Daifuku Co. Ltd. published this content on 19 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2021 15:31:08 UTC.