throbber
MURATA MACHINERY, LTD.
`Exhibit 2001
`DAIFUKU CO., LTD. and
`DAIFUKU AMERICA CORP. v.
`MURATA MACHINERY, LTD.
`IPR2015-01539
`
`1 of 31
`
`

`
`DAIFUKU CO., LTD. ANNUAL REPORT 2011 1
`
`restrictions; and 4) the impact of natural disasters and international threats, war, acts of terrorism, strikes, plagues. Moreover, there are other factors that may adversely affect the Company’s performance.
`exchange rates on sales, assets and liabilities denominated in U.S. dollars and other currencies; 3) the tightening of laws and regulations regarding safety and other matters that may lead to higher costs or sales
`these forward-looking statements. These crucial factors that may adversely affect performance include: 1) consumer trends and economic conditions in the Company’s operating environment; 2) the effect of yen
`agement team judging from the most current information, and, therefore, these prospects are subject to potential risks and uncertainties. Due to various crucial factors, actual results may differ substantially from
`The strategies, beliefs and plans related to future business performance as described in this annual report are not established facts. They are business prospects based on the assumptions and beliefs of the man-
`Cautionary Statement with Respect to Forward-Looking Statements
`
`delivering baggage to connecting flights at hub airports are core products of Logan Teleflex.
`steadily globalizing airport baggage handling system business. Tilt tray sorters (upper left and lower left photographs) used for
`Airport baggage handling systems produced by new Group member Logan Teleflex have become an integral part of Daifuku’s
`
`2011
`
`2010
`
`2009
`
`2008
`
`2007
`
`2011
`
`2010
`
`2009
`
`2008
`
`2007
`
`2011
`
`2010
`
`2009
`
`2008
`
`2007
`
`0
`
`4.0
`
`8.0
`
`12.0
`
`16.0
`
`20.0
`
`24.0
`(%)
`
`0
`
`2,000
`
`4,000
`
`6,000
`
`8,000
`
`10,000
`
`12,000
`
`(Millions of yen)
`
`0
`
`4,000
`
`8,000
`
`12,000
`
`16,000
`
`20,000
`
`24,000
`
`(Millions of yen)
`
`Net income/ROE
`
`Operating income
`
`0
`
`50,000
`
`100,000
`
`150,000
`
`200,000
`
`250,000
`(Millions of yen)
`
`Net sales
`
`Note: The U.S. dollar amounts in this annual report represent translations of Japanese yen, for convenience only, at ¥83.15 = U.S. $1.00, the rate prevailing on the Tokyo Foreign Exchange Market on March 31, 2011.
`
`934,631
`$ 1,964,988
`
`76,610
`38,747
`0.18
`0.02
`3,239
`20,763
`1,915,370
`$ 2,167,672
`
`47.9
`1.3
`0.7
`0.1%
`
`46.3
`0.3
`0.2
`1.1%
`
`5,395
`81,295
`¥ 165,430
`
`6,075
`2,280
`20.00
`9.20
`1,018
`80
`154,208
`¥ 133,211
`
`5,209
`77,714
`¥ 163,388
`
`6,370
`3,221
`15.00
`2.43
`269
`1,726
`159,263
`¥ 180,241
`
`2011
`
`2010
`
`2011
`
`(Thousands of U.S. dollars)
`
`(Millions of yen)
`
` Shareholders’ equity/total assets
` Return on shareholders’ equity (ROE)
` Net income/net sales
` Operating income/net sales
`Ratios
`
` Number of employees
` Net assets
` Total assets
`At Year-End
`
` R&D expenditures
` Capital investment
` Cash dividends per share (Yen and U.S. dollars)
` Net income per share (Yen and U.S. dollars)
` Net income
` Operating income
` Net sales
` Orders received
`For the Year
`
`For the years ended March 31, 2011 and 2010
`Daifuku Co., Ltd. and consolidated subsidiaries
`
`Financial Highlights
`
`53
`
`52
`
`19
`
`18
`
`16
`
`14
`
`12
`
`8
`
`Beyond Borders: Daifuku’s Global Expansion 6
`
`1
`
`2
`
`3
`
`Interview with the President
`
`Chairman’s Message
`
`Financial Highlights
`
`Contents
`
`Corporate Data/Investor Information
`
`Daifuku Global Network
`
`Financial Section
`
`Directors and Corporate Auditors
`
`Corporate Social Responsibility (CSR)
`
`2 of 31
`
`Corporate Governance
`
`At a Glance
`
`Southeast Asia and India 11
`10
`9
`Special Feature: Prevailing in Asia
`
`
`
` China
`
`South Korea and Taiwan
`
`
`
`

`
`DAIFUKU CO., LTD. ANNUAL REPORT 2011 3
`
`2 DAIFUKU CO., LTD. ANNUAL REPORT 2011
`
`we were finally passing through the worst of the recession and returning to a firm growth trajectory,
`income improved significantly and orders grew substantially. However, on March 11, 2011, just as
`
`management policy will be promoted in fiscal 2011, the second year of the plan?
`mainly to expand its operating framework. What aspects of the Company’s
`
`ATo summarize the previous fiscal year, although sales increased only slightly year on year, operating
`QAmid severe operating conditions during the first year of the plan, Daifuku worked
`
`is a distinct possibility.
`profit margin will rise rapidly. In that event, reaching our target of 11 billion yen in the following fiscal year
`if Daifuku can secure sufficient orders and increase the operational capacity of its factories, profitability and
`targets. In terms of operating income (which we expected to rise 3 billion yen during the current fiscal year),
` Given the positive effects of a backlog of orders and M&As, it is highly likely that we will meet sales
`normalizes, interest in investment among industrial circles will return.
`particularly in automobile-related markets. Regarding Japan, I believe that if production among automakers
`China, India, Thailand and Indonesia. At the same time, momentum is increasing in North America and Brazil,
`accounted for by markets outside of Japan, we are fortunate enough to benefit from steady performance in
`Accordingly, we will place a strong emphasis on obtaining orders in fiscal 2011. With half of our sales
`and operating income of 11 billion yen. Expanding orders in fiscal 2011 is a key to achieving these targets.
`The targets for fiscal 2012, the final year of Material Handling and Beyond, are net sales of 220 billion yen
`
`
`
`uncertainty remains in its aftermath.
`the Great East Japan Earthquake struck. Although we have not been significantly impacted by the disaster,
`
`obtaining orders to achieve targets set in the final year.
`Material Handling and Beyond, Daifuku will focus on
`In the second year of the three-year business plan
`
`Interview with the President
`
`Chairman’s Message
`
`Chairman and Co-CEO
`Katsumi Takeuchi
`
` We respectfully ask for the support of our stakeholders, including shareholders and investors.
`We will focus our efforts on achieving these targets in order to bring this business plan to a successful conclusion.
`
`Net income: 800 million yen
`Operating income: 3,000 million yen
`Sales: 190,000 million yen
`
`Targets for the second year of Material Handling and Beyond are as follows:
`
`
`
`companies, including Logan Teleflex (UK) Ltd., which operates an airport baggage handling system business.
`wash equipment business operations in Japan and reached a share acquisition agreement with three
`with Austria-based Knapp AG to improve sales in Europe. In addition, we acquired YASUI Corporation’s car
`for lithium-ion battery factories, a new business area, and entry into an alliance involving capital participation
`the Group’s overall operating framework expanded, with orders received for transport and storage systems
`
`In fiscal 2010, we actively engaged in developing new markets and launching new businesses. As a result,
`
`
`
`production methods; building new global partnerships; and launching new businesses.
`taking on five new challenges: entering new markets; creating new products and systems; developing new
`of changes in the business environment from a varied and broad perspective. In particular, the Group is
`and businesses firmly based on its core material handling business and through an accurate understanding
` Material Handling and Beyond outlines a vision of the Group’s future as creator of new products, markets
`establish a business foundation within three years capable of maintaining sustainable growth into the future.
`three-year business plan, Material Handling and Beyond in April 2010. Through this plan, we intend to
`In light of the severe operating environment following the Lehman Shock, the Daifuku Group launched the
`
`material handling industry.
`and industrial computers. In global terms, the Group is currently in the top echelons of the specialty
`care-provider vehicles as well as such electronic devices as interface boards for measurement controls
`consists of businesses engaged in car wash machines, bowling alley equipment, and wheelchair lifts for
`The Daifuku Group focuses primarily on material handling systems and equipment. The Group also
`
`3 of 31
`
`

`
`DAIFUKU CO., LTD. ANNUAL REPORT 2011 5
`
`4 DAIFUKU CO., LTD. ANNUAL REPORT 2011
`
`President and Co-CEO
`Masaki Hojo
`
`I would like to take this opportunity to ask all stakeholders for their ongoing understanding and support.
`all industries due to the recent disaster while taking steps to establish unified policies in response to this issue.
`we will work together with government authorities to survey the extent of damage to logistic systems across
` As an upcoming issue to be addressed, Daifuku will strengthen its disaster countermeasures. To this end,
`its employees.
`we will augment human resource training that integrates and passes along the best of Daifuku’s values to
`able to once again reaffirm our traditional capabilities and cohesion during this emergency. Furthermore,
`production and distribution operations—which form the foundation of the economy and society—we were
`
`
`
`In the face of the hardships suffered by customers who have made such great efforts to rapidly restore
`
`
`
`are located a significant distance from the epicenter. We immediately set in motion our prepared
`The Daifuku Group did not suffer any casualties or damage to its main production facilities, which
`
`ADaifuku would like to extend its deepest condolences to all those affected by this tragic disaster.
`QHow has Daifuku responded to the March 2011 Great East Japan Earthquake?
`
`customer operations.
`employees of the Daifuku Group as well as its partner companies, who have done their utmost to restore
`impassible roads and material shortages, I would like to express the immense sense of pride I feel for all the
`resume operations, for which Daifuku received high praise. Amid such numerous difficulties as aftershocks,
`their restoration work. In the two months following the earthquake, 90% of our customers were able to
`With customers located in 1,040 locations throughout the affected areas, we moved quickly to assist with
`the extent of damage to Group and customer facilities, and delivering relief supplies to affected areas.
`business continuity plan (BCP) and took such actions as confirming the safety of employees, determining
`
`shareholder return?
`
`In the near future, we expect to nurture personnel able to oversee local operations.
`
`
`
`recruiting local employees who are knowledgeable in these industries.
`disparate industries as general manufacturing and distribution, further market development hinges on
`in order to provide training in marketing style and technologies. For businesses serving customers in such
`quality. Given this, it is necessary to dispatch personnel from Japan to subsidiaries in Taiwan and South Korea
`
`In businesses oriented to flat-panel displays and semiconductors, “made in Japan” is synonymous with
`
`
`
`AInterest-bearing liabilities stood at 40.9 billion yen, a fall of 4.3 billion yen from the previous fiscal
`QAre you working to strengthen Daifuku’s financial position or improve
`
`surplus for internal reserves in order to support future growth.
`eration of performance as well as our dividend history. It is also Daifuku policy to appropriate the remaining
`has adopted a dividend policy based on performance, with determinations as to payouts made with consid-
`of 15 yen per share in fiscal 2011. With regard to the payment of dividends from retained surplus, Daifuku
`comprehensive review of business conditions and results in fiscal 2010, we plan to pay an annual dividend
` Daifuku regards the return of profits to shareholders as its most important management task. Based on a
`to further strengthen its financial position.
`
`a slight improvement year on year. Targeting a debt-equity ratio of less than 0.5, Daifuku will work
`year. The ratio of interest-bearing liabilities to net assets (the debt-equity ratio) was thus 0.53,
`
`at Daifuku America Corporation.
`industry, personnel from Jervis B. Webb Company have already been dispatched to conduct employee training
`who make proposals in tandem with sales staff. In businesses geared toward the North American automobile
`in addition to reinforcing sales staff, we will bolster our engineering staff—especially at global affiliates—
`being a system integrator that can offer comprehensive systems centered on Daifuku products. For this reason,
`ahead, we need to increase orders from local customers to ensure sustainable growth. The Group is proud of
`To date, the Daifuku Group has expanded its business worldwide alongside its Japanese customers. Looking
`4. Bolstering global operations by fostering personnel
`
`Since services and marketing are closely connected, we will further strengthen the linkages between them.
`marketing and sales divisions to gain orders for new projects, and, as markets shrink, so does demand for services.
`which profits from services can be expected in two to three years time. Amid fierce competition, it is not easy for
` Daifuku’s business model involves sales teams taking the initiative in acquiring greater shares of markets in
`and to enhance our 24-hour telephone support.
`suitable for use in upgrading projects, including nitrogen purge stockers for semiconductor miniaturization;
`the number of customers who use our services by acquiring business from industry peers; to develop products
`In fiscal 2010, we exceeded this target, reaching 27%. This result was attributable to our efforts to increase
`The Group has been aiming to raise the ratio of the service business to total net sales to 25% or above.
`3. Increasing profitability through service business expansion
`
`periods while increasing quality and will, in turn, help us gain the trust of our customers.
`and budget management. Such actions will enable us to reliably undertake projects with shorter delivery
`with local partners, Daifuku will increase its competitiveness by improving the accuracy of delivery schedule
`since many of our products and systems are highly specialized. While fostering longstanding relationships
`In the area of installation, forming expert partnerships with local companies has become a major issue
`
`
`
`in Turkey.
`production resources through such initiatives as using its factory in South Korea for an automotive project
`AS/RSs. In addition, the Group will overcome fierce cost competition by organically networking its global
`Group is stepping up local production in China of standard-type stacker cranes, the core unit of its mainstay
`Daifuku focuses on manufacturing and installation operations worldwide. In the area of manufacturing, the
`2. Strengthening cost competitiveness through global production and procurement
`
`services and products that are lightweight, use regenerated electric power and save water.
`Environmental Vision 2020. The Group will develop and provide throughout society environmentally friendly
`
`To confront global warming, an increasingly urgent issue, the Group has developed the Daifuku
`
`
`
`companies with these advanced systems while developing its products at lower costs for emerging markets.
`a superfast mini load AS/RS (automated storage and retrieval system). Daifuku will differentiate itself from other
`a conveyor system for paint lines at automotive factories; and receiving orders for large systems using DUOSYS,
`factories; expanding orders for products in the agricultural area, such as fruit sorting systems; delivering E-DIP,
`
`In fiscal 2010, Daifuku achieved satisfactory results that included acquiring orders for lithium-ion battery
`
`
`
`products while raising the utilization rate of factories by taking in new demand.
`in its non-consolidated operating income, the Company will focus more on developing new markets and new
`Daifuku is recovering more slowly than its subsidiaries in Japan and overseas. To achieve a positive turnaround
`1. Restoring Daifuku Co., Ltd.’s operating income to the black by developing new markets and new products
`
`AWe have positioned the next fiscal year as an important period for achieving a recovery in business
`QPlease provide more details of these measures.
`
`flexibly to changes in the market. Accordingly, we will focus on the following four initiatives:
`performance and meeting the targets of the three-year business plan by responding quickly and
`
`4 of 31
`
`

`
`DAIFUKU CO., LTD. ANNUAL REPORT 2011 7
`
`lineup of products.
`ber of which are used at hub airports, have further complimented the Group’s
`Logan Teleflex’s destination coded vehicles and tilt tray sorters, a large num-
`and production structures owing to Logan Teleflex’s entry into the Group.
`market for airport baggage handling systems. We are rapidly building sales
`ers. Following China and India, the Middle East is seen as the next growth
`firm capital expenditure among Brazilian and Turkish automobile manufactur-
`
`The Daifuku Group’s performance is improving against the backdrop of
`
`
`
`forte, automatic picking systems.
`European market while supplementing our product lineups with Knapp AG’s
`
`October 2010. These developments will allow us to further penetrate the
`into a business alliance with one of its competitors, Austria’s Knapp AG, in
`sidiaries of the Daifuku Group in April 2011. Moreover, the Group entered
`80 countries worldwide, particularly in Europe—became wholly owned sub-
`track record of delivering more than 400 airport baggage handling systems in
`Three companies, including Logan Teleflex (UK) Ltd.—which has a proven
`
`
`
`material handling and manufacturing market.
`has been widening the scope of its operations in the competitive European
`over 700 stores across Europe. Through this and other endeavors, Daifuku
`distribution center, which was set up by Netto A/S, a retail chain that boasts
`In 2003, Daifuku constructed a logistics system for Scandinavia’s largest
`
`Europe and Other Regions
`
`Sales Composition (compared with consolidated net sales)
`
`3.8%
`
`6 DAIFUKU CO., LTD. ANNUAL REPORT 2011
`
`Webb and Daifuku America segments.
`Holding will become a reportable segment of Daifuku and will replace the
`ultimately, bolster its North American business. In fiscal 2011, Daifuku Webb
`aims to maintain further growth, expand and improve customer services, and,
`resources while implementing further restructuring efforts, the Daifuku Group
`nies to share business operations, expertise, products and management
`Company to oversee Daifuku America and Webb. By enabling the two compa-
`mated warehouses. In January 2011, we established Daifuku Webb Holding
`combining that company’s automatic guided vehicles with Daifuku’s auto-
`Group in 2007, and the two entities have already collaborated on projects
`operations primarily through these two companies. Webb joined the Daifuku
`
`baggage handling systems. The Group is expanding its North American
`used in production lines for the Detroit Three automakers as well as airport
`ized industrial manufacturing. Presently, Webb produces conveyor systems
`Ford Motor Company’s production system, which single-handedly revolution-
`breaking presence in material handling industries worldwide by establishing
`Established in 1919, Jervis B. Webb Company (“Webb”) forged a ground-
`turers and distributors as well as the electronics and other industries.
`America currently produces material handling systems for general manufac-
`tion to providing conveyor systems for automobile production lines, Daifuku
`bile manufacturers began to penetrate the North American market. In addi-
`Daifuku America Corporation was established in 1983 as Japanese automo-
`
`5 of 31
`
`North America
`
`Sales Composition (compared with consolidated net sales)
`
`15.3%
`
`(FY)
`
`2010
`
`2009
`
`2008
`
`2007
`
`(FY)
`
`2010
`
`2009
`
`2008
`
`2007
`
`6.04
`
`6.55
`
`0
`
`2.50
`
`5.00
`
`7.50
`
`9.42
`
`9.81
`
`10.00
`
`(Billions of yen)
`
`Net Sales in Europe and Other Regions
`
`16.59
`
`24.46
`
`24.92
`
`0
`
`10.00
`
`20.00
`
`30.00
`
`34.13
`
`40.00
`
`(Billions of yen)
`
`Net Sales in North America
`
`0
`
`15
`
`30
`
`45
`
`60
`
`75
`(%)
`
`(FY)
`
`2010
`
`2009
`
`2008
`
`2007
`
`2006
`
`79.579.7
`
`81.7
`
`72.4
`
`50
`
`47
`
`52
`
`115.5
`
`126.6
`
`44
`
`45
`
`101.4
`
`103.6
`
`130.2
`
`129.1
`
`Non-Japan sales ratio
`Japan sales
`Non-Japan sales
`
`
`
`
`
`
`
`0
`
`30.0
`
`60.0
`
`90.0
`
`120.0
`
`(Billions of yen)
`
`150.0
`
`49.9%
`
`(consolidated)
`Non-Japan Sales Ratio
`
`will continue to expand beyond borders.
`as there are people and goods, Daifuku’s material handling operations
`approximately 50% of the Company’s consolidated net sales. As long
`systems. As a result, net sales outside of Japan currently account for
`Group works to maintain optimal local production and procurement
`
`expanded into 20 countries and regions worldwide, the Daifuku
`related to transnational manufacturing and distribution. Having
`Daifuku systems provide assistance in the area of material handling
`ognize that supply chains worldwide are increasingly interconnected.
`The Great East Japan Earthquake on March 11, 2011, forced us to rec-
`
`Taking Advantage of Its Worldwide Manufacturing Operations
`Accelerating Daifuku’s Global Expansion by
`
`Beyond Borders
`
`

`
`DAIFUKU CO., LTD. ANNUAL REPORT 2011 9
`
`Daifuku’s skills training center established at its Taiwanese affiliate in 2010
`
`6 of 31
`
`such, we are able to respond to customer needs for short delivery times and high quality.
`installation achievements in the area of small and medium-sized panel production lines. As
`smartphones and other mobile devices. For Daifuku, this is familiar territory given its wealth of
`to active investment in touch panels, for which demand is rapidly growing based on their use in
`forward to construct factories in Japan to produce liquid crystal panels. This drive is attributable
`
`Despite a lull in the rise in demand for large-sized TVs outside of China, plans are moving
`
`
`
`stockers with nitrogen purge capabilities.
`the usefulness of nitrogen purge (air removal) is well known, leading to increased demand for
`tionally stored in a regular air environment since they degrade in a short period. Consequently,
`technology. The production of normal circuits is not possible if their components are conven-
`corresponding to circuit plates is one of the challenges related to developing miniaturization
`single wafer, leading to decreases in manufacturing costs. Increasing the durability of reticles
`Electronic circuit miniaturization increases the number of chips that can be produced from a
`
`Active investment in circuit miniaturization technology and touch panels
`
`nomic development enabled by the ECFA.
`opportunities are anticipated to be created on the back of increased investment and eco-
`panies are forecasted to aggressively enter into the Chinese market. Accordingly, business
`2010. The ECFA has reduced the customs tariffs on 824 items to zero, and Taiwanese com-
`Taiwan and China signed the Economic Cooperation Framework Agreement (ECFA) in
`
`
`
`ments related to touch panels and 3D panels to increase even further.
`received orders for touch panel-related projects in Taiwan and China. We expect invest-
`In Taiwan, Daifuku has received orders for major semiconductor-related projects and
`
`
`
`a major role in global production, including projects for customers in Turkey.
`ment during the second half of the previous fiscal year, South Korean factories are playing
`automobile manufacturers are ranked 5th globally. Reflecting a recovery in capital invest-
`in and outside of that country. Producing 4.27 million vehicles annually, South Korean
`automobile manufacturers (which are enjoying increasing brand strength worldwide) both
`projects. In addition, we are expanding our participation in projects involving South Korean
`we developed nitrogen purge stockers for miniaturization fabrication related to upgrading
`ticular was able to revamp a customer’s factory using its unique technologies. For example,
`Investment in semiconductors in South Korea accelerated in fiscal 2010. Daifuku in par-
`
`
`
`need for Daifuku’s transport systems in cleanroom factories.
`ing into the world’s information technology (IT) product manufacturing hub, there is a
`account for a major portion of Daifuku’s Asian customer base. With both countries evolv-
`South Korean and Taiwanese semiconductor and flat-panel display (FPD) manufacturers
`
`and Taiwan
`
`
`South Korea
`
`sia (excluding Japan)
`
` A
`
`
`
` Japan
`
` Europe
`
` The Americas
`
`(Forecast)
`
`2012
`
`2011
`
`2010
`
`2009
`
`20072008
`
`0
`
`50,000
`
`100,000
`
`150,000
`
`200,000
`
`250,000
`
`300,000
`
`Semiconductor Market Forecasts by Region
`
`350,000
`(Millions of U.S. dollars)
`
`Taiwan 17.9%
`South Korea 24.9%
`
`Semiconductor and FPD Sales Share (2011)
`
`for by Asia
`Percentage of Non-Japan Sales Accounted
`
`Europe and other regions
`
`making a strong contribution to the Group’s operations.
`
`Daifuku’s operations in Japan. In addition, Daifuku’s Asian affiliates are
`
`post-delivery follow-up services are undertaken in cooperation with
`
`Korea and one each in Taiwan and Thailand. New projects and
`
`8 DAIFUKU CO., LTD. ANNUAL REPORT 2011
`
`FY2010: 49,052 million yen
`FY2010: 49,052 million yen
`
`Asian Net Sales
`Asian Net Sales
`
`83,087 million yen
`83,087 million yen
`FY2008:
`FY2008:
`
`44,681 million yen
`44,681 million yen
`FY2004:
`FY2004:
`
`21,851 million yen
`21,851 million yen
`FY2002:
`FY2002:
`
`10,842 million yen
`10,842 million yen
`FY1998:
`FY1998:
`
`6 of 31
`
`62%
`
`Asia
`
`North America
`
`A noteworthy feature of Daifuku’s non-Japan net sales is that 60% of the total is accounted for by the
`
`able to avoid currency-exchange risks. Daifuku has two production facilities in China, two in South
`
`Group’s sales in Asia. As transactions in this region are conducted almost exclusively in yen, we are
`
`Special Feature: Prevailing in Asia
`
`

`
`DAIFUKU CO., LTD. ANNUAL REPORT 2011 11
`
`10 DAIFUKU CO., LTD. ANNUAL REPORT 2011
`
`A staff member of Daifuku Singapore introduces case studies for RFID
`
`AS/RS installed at a pharmaceutical wholesaler
`
`produced by its subsidiary Contec Co., Ltd.
`businesses, including supervisor dispatching outside of Singapore and sales of electronics
` Utilizing the numerous strengths of experts in the field of IT, Daifuku develops an array of
`real-time management and tracking of carts in a 30,000 square meter area.
`components carts at an aircraft engine maintenance factory. This technology enables the
`to cleanroom suits, a world first. Daifuku also attached RFID tags to the more than 300
`clean rooms that monitors the entry and exit of people at its facilities using RF tags attached
`2010, we delivered to a major semiconductor manufacturer a RFID access control system for
`frequency identification (RFID), including large-sized AS/RSs for port facilities. In November
`and storage systems used in semiconductor factories as well as logistics systems that use radio
`Singapore-based affiliate is increasing its installation record in the advanced area of transport
`Singapore aims to secure its status as Asia’s high-tech base. The Daifuku Group’s
`
`efforts to increase automation.
`the tens of thousands of orders that are shipped daily. Moreover, a rise in wages is spurring on
`accelerated rise of mail-order sales in China, advanced distribution systems are required to handle
`born annually, demand for disposable diapers in China is rapidly growing. Also, with the
`average of 89 bottles), this amount is expected to continue to rise. In light of 18 million children
`per person in China in 2010 was 34 bottles (compared with 178 bottles in Japan and a global
`Chinese lifestyles are also changing. For example, although the amount of cola consumed
`
`
`
`industry are planned for the distribution of good quality drugs in regional cities and rural areas.
`industry leader. In the pharmaceutical industry, national policies to restructure the wholesale drug
`by incidents of melamine poisoning, a manufacturer that uses Daifuku’s AS/RSs has become an
`and food products. Within the powdered milk manufacturing industry, which has been impacted
`market. This expansion was triggered by consumer desire for safe and reliable pharmaceuticals
`Changes in Chinese consumer spending are causing an expansion in the material handling
`
`7 of 31
`
`Penetrating new areas through high technology
`
`Improving Chinese living standards drive market expansion
`
`age investment for rationalizing logistics in Indonesia.
`throughout the ASEAN region as well as tax incentives and low-interest credit to encour-
`will concentrate its efforts on tapping these markets amid vigorous capacity investment
`bution systems, Singapore covers a wide range of sectors in the ASEAN region. Daifuku
` As a base for non-automobile-related industries, including semiconductors and distri-
`an opportunity that we intend to translate into orders.
`already reached 2.5 million. Capital investment stemming from active sales in this area is
`lowing Japan, given that its passenger vehicle market is increasing 30% annually and has
`three years’ time, India is poised to become the fourth highest purchaser of vehicles fol-
`houses are increasing, triggered by the presence of two dominant local automakers. In
`menting production systems in that country. In Malaysia, inquiries for automated ware-
`world’s fourth largest population, Japanese manufacturers have established and are aug-
` Amid the rapid spread of automobile and motorcycle sales in Indonesia, which has the
`outside Thailand.
`Daifuku’s Thai subsidiary produces conveyor systems for these companies both within and
`struct, upgrade and increase the capacity of factories in Thailand. Against this backdrop,
`United States and other countries have aggressively moved forward with plans to con-
`a topic of interest in 2010. In addition to Japanese companies, automakers from the
`America and in most of Asia as the Nissan March), in Thailand for export to Japan became
` Nissan Motor’s decision to manufacture its compact model, Micra (known in Latin
`area that includes Malaysia, Indonesia and the rest of the Asia-Pacific region.
`Centering on Singapore and Thailand, Daifuku is expanding its business across a wide
`
`and India
`
`
`Southeast Asia
`
`Trucks, buses
`
`Passenger vehicles
`
`2009
`
`2008
`
`2007
`
`0
`
`1,000,000
`
`2,000,000
`
`3,000,000
`
`Number of Automobiles Produced in India
`
`127
`140
`158
`164
`185
`195
`233
`318
`1,214
`1,354
`
`Japan
`Russia
`Nigeria
`Bangladesh
`Pakistan
`Brazil
`Indonesia
`United States
`India
`China
`
`10
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`(Millions)
`
`World’s Top 10 Populous Countries (2010)
`
`consolidated subsidiary of Daifuku in fiscal 2011.
`operations of the local joint-venture company owned by Logan Teleflex, which became a
`systems. We will focus on obtaining orders for airport facilities in China by leveraging the
` At the same time, China is becoming a large market for airport baggage handling
`sales in China through the early introduction of car wash models that suit local needs.
`from conventional labor-intensive methods of washing vehicles by hand. We will increase
` Daifuku anticipates the popularization of car wash machines owing to a move away
`food, beverages and pharmaceuticals.
`In addition, Daifuku will increase its focus on logistics systems in such favorable areas as
`ipated in demand for efficient distribution centers among manufacturers and distributors.
`consumer activity due to improving living standards in China. In particular, growth is antic-
`upgrades in such logistical networks as large-scale distribution centers driven by vigorous
`Korean and Taiwanese makers make plans to enter this market. We expect further
`cal year. Regional manufacturers will continue to expand their facilities, while South
`for TVs amid a threefold increase in the sale of such items compared with the previous fis-
`In fiscal 2010, regional companies in China began full-scale production of LCD panels
`
`
`
`anticipated to grow even more in the years ahead.
`as living standards in China improve. In turn, distribution system markets in China are
`nomic development. Innovations in distribution systems are expected to gain momentum
`China’s presence on the world stage continues to gain significance thanks to its rapid eco-
`
`China
`
` Chinese GDP
`
`Wages in China (monthly average)
`
`2008
`
`2007
`
`2006
`
`2005
`
`0
`
`7,000
`
`10,000
`
`25,000
`
`30,000
`
`35,000
`(Billions of yuan)
`
`0
`
`500
`
`1,000
`
`1,500
`
`2,000
`
`2,500
`(Yuan)
`
`Average Wage (manufacturing Industry)
`Chinese Gross Domestic Product (GDP) and
`
`

`
`DAIFUKU CO., LTD. ANNUAL REPORT 2011 13
`
`12 DAIFUKU CO., LTD. ANNUAL REPORT 2011
`
`A tractor assembly line
`
`Airport baggage handling system
`
`Digital signage
`
`Cleanroom transport system for semiconductor factories
`
`Picking system (agricultural market)
`
`lion yen, a jump of 127.8%.
`yen, up 9.4%, and segment income of 597 mil-
`previous fiscal year, net sales of 31,524 million
`orders of 34,510 million yen, up 30.0% from the
`
`Consequently, the Other segment recorded
`
`
`
`products of Jervis B. Webb Company.
`i

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