Fanuc : Notice Concerning Distribution of Dividends from Surplus (including Special Dividends) to Shareholders

April 24, 2019

Company name: FANUC CORPORATION

Representative: Kenji Yamaguchi, President

(Stock Code: 6954, 1st Section, Tokyo Stock Exchange)

Contact: Keisuke Fujii, Manager, Public Relations

Tel: (0555) 84 - 5555

Notice Concerning Distribution of Dividends from Surplus

(including Special Dividends) to Shareholders

At a meeting held on April 24, 2019, the Board of Directors of FANUC CORPORATION resolved to propose an agenda asking for authorization to distribute dividends including special dividends (for the six months ended March 31, 2019) from surplus, with record date on March 31, 2019, at the 50th Annual General Shareholders' Meeting to be held in June, 2019.

1．Details of dividends
Record date	March 31, 2019		September 30, 2018	March 31, 2018
	Resolution	Previous	Past record	Past record
		Forecast
	Yen		Yen	Yen
	404.92		598.19
Dividends per	(Ordinary dividends	－	(Ordinary dividends	297.75
share	224.34)		252.87)
	(Special dividends		(Special dividends
	180.58)		345.32)
	108.3%		141.9%
Payout ratio	(Ordinary dividends		(Ordinary dividends
	60.0%)	－	60.0%)	60.0%
(Consolidated)
	(Special dividends		(Special dividends
	48.3%)		81.9%)
Total amount of	Millions of Yen		Millions of Yen	Millions of Yen
		－
dividends	78,486		115,950	57,715
Effective date	June 28, 2019	－	December 3, 2018	June 29, 2018
Dividend	Retained earnings	－	Retained earnings	Retained earnings
resource

2．Reason for the dividend amount

Our basic policy of distributing profits to shareholders, announced on April 27, 2015, is as follows.

1. Dividends

In order to further enhance the distribution of profits to our shareholders in the long term, we have decided to implement a dividend payout ratio of 60% of our consolidated net income.

2. Share buybacks

We aim to buy back our own shares in a flexible manner depending on the level of our stock prices, taking into account the balance with our investment in growth, and where the Five-Year Average Total Return Ratio does not exceed 80%.

(Note) Five-Year Average Total Return Ratio means the ratio of the total combined amount of dividends and the total amount of share buybacks, over the total amount of our consolidated net income for a five-year period.

3. Cancellation of treasury shares

We aim to limit the number of our treasury shares that we hold to a maximum of 5% of the total number of issued shares. We will, as a general rule, cancel any portion exceeding that limit every fiscal year.

Since its announcement on April 27, 2015, we have carried out the distribution of profits to shareholders based on the above policy. For the year-end dividends of this fiscal year, we will pay the amount equivalent to about a half of the additionally required distribution amount (*) to realize a Five-Year Average Total Return Ratio of the maximum of 80% for the period of the last five years including this fiscal year as special dividends in place of a share buyback, in addition to the ordinary dividends of 60% of our consolidated second half net income.

*(The total amount of net income for each fiscal year from the fiscal year ended March 31, 2015 to the fiscal year ended March 31, 2019) × 20% - (the total amount of share buybacks and special dividends that were already carried out in each relevant fiscal year.)

As the result, the year-end dividend (planned) will be as follows.

	First half of	Second half of	FY 2018 in total
	FY 2018	FY 2018
	Yen	Yen	Yen

Current term (FY 2018)

Dividends per share		598.19	404.92	1,003.11
(Ordinary dividends)		(252.87)	(224.34)	(477.21)
(Special dividends)		(345.32)	(180.58)	(525.90)
Payout ratio		141.9%	108.3%	126.1%
(Ordinary dividends)		(60.0%)	(60.0%)	(60.0%)
(Special dividends)		(81.9%)	(48.3%)	(66.1%)
(Reference)
Previous term (FY 2017)
Dividends per share		265.45	297.75	563.20
Payout ratio		60.0%	60.0%	60.0%

End