Fanuc : Consolidated Annual Financial Results For the Year ended March 31, 2020

(TRANSLATION)

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Consolidated Annual Financial Results

(based on Japanese standards)

For the Year ended March 31, 2020

		April 24, 2020
Company name: FANUC CORPORATION	Stock exchange listing: Tokyo Stock Exchange
Stock code:	6954	URL: https://www.fanuc.co.jp/eindex.html
Representative: (Title) President	(Name) Kenji Yamaguchi
Contact:	(Title) Manager, Public Relations	(Name) Keisuke Fujii TEL: [phone]

Scheduled date of the Annual Meeting of Shareholders: June 26, 2020

Scheduled date of commencing of dividend payments: June 29, 2020

Scheduled date of filing the Securities Report: June 30, 2020

Availability of supplementary briefing material on annual financial results: Available

Schedule of annual financial results briefing session: Scheduled

1. Consolidated Financial Results for the Year Ended March 31, 2020 (April 1, 2019 - March 31, 2020)

(1) Consolidated Results of Operations

(% represents changes from the previous term.)

	Net sales	Operating income	Ordinary income	Net income
	attributable to owners
							of parent
		YoY		YoY		YoY		YoY
	Millions of yen	change	Millions of yen	change	Millions of yen	change	Millions of yen	change
FY2019	508,252	%	88,350	%	102,816	%	73,371	%
(20.0)	(45.9)	(44.0)	(52.4)
FY2018	635,568	(12.5)	163,297	(28.9)	183,459	(26.5)	154,163	(15.3)

Note: Consolidated comprehensive income: FY2019: ¥ 57,377

million

(61.6)% FY2018: ¥149,357 million

(21.1)%

Net income

Net income

Ordinary

Operating

per share

Return on equity

income-to-total

income-to-net

per share

(diluted)

capital ratio

sales ratio

FY2019

Yen

Yen

%

5.3

%

6.6

%

381.89

-

17.4

FY2018

795.34

-

10.6

10.9

25.7

(Reference) Equity in earnings of affiliates: FY2019: ¥8,752 million

FY2018: ¥14,243 million

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets

per share

FY2019

Millions of yen

Millions of yen

%

Yen

1,512,499

1,362,865

89.6

7,064.22

FY2018

1,625,340

1,445,146

88.5

7,417.70

(Reference) Equity: FY2019: ¥1,355,100 million

FY2018: ¥1,437,775 million

(3) Consolidated Cash Flow Position

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents at end of

operating activities

investing activities

financing activities

period

FY2019

Millions of yen

Millions of yen

Millions of yen

Millions of yen

144,872

(84,319)

(140,726)

515,008

FY2018

177,738

(123,343)

(172,868)

607,714

2. Dividends

		Dividends per share		Total	Payout Dividends-to-
						amount of	ratio	net assets
	1st	2nd	3rd	Year-end
(Cut-off date)	Full year	dividends	(consoli	Ratio
Quarter	Quarter	Quarter	Dividends	(full year)	dated)	(consolidated)
FY2018	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
―	598.19	―	404.92	1,003.11	194,435	126.1	13.4
FY2019	―	125.35	―	174.65	300.00	57,558	78.6	4.1
FY2020	―	―	―	―	―		―
(forecast)

Note: The 2nd quarter-end dividends for the year ending March 31, 2019 consist of ordinary dividends of ¥252.87 and special dividends of ¥345.32.

Note: The year-end dividends for the year ending March 31, 2019 consist of ordinary dividends of ¥224.34 and special dividends of ¥180.58.

Note: The year-end dividends for the year ending March 31, 2020 consist of ordinary dividends of ¥103.79 and special dividends of ¥70.86.

Note: The forecasts of the 2nd quarter-end and year-end dividends for the year ending March 31, 2021, will be disclosed promptly upon their availability.

3. Consolidated Financial Forecasts for the second quarter of the Year Ending March 31, 2021(April 1, 2020 - September 30, 2020)

(% for the 2Q cumulative period represents changes from the same period of the previous fiscal year.)

Net sales	Operating income	Ordinary income	Net income	Net income
attributable to
per share
						owners of parent
Millions of yen	YoY	Millions of yen	YoY	Millions of yen	YoY	Millions of yen	YoY
change	change	change	change	Yen
2nd Quarter	%		%		%		%
(Cumulative)	(24.2)	18,900	(61.4)	23,100	(59.5)	16,400	(59.2)	85.49
197,900

Note: The forecast for the consolidated financial results for the second quarter (cumulative) of the year ending March 31, 2021, takes the impacts of the coronavirus (COVID-19) into consideration, based on information that is currently available, and therefore is susceptible to significant change.

The consolidated financial results for the year ending March 31, 2021 is not reported, as it is not feasible at present, to rationally estimate how far the coronavirus (COVID-19) infection will further spread and this crisis will be overcome. The results will be announced as soon as disclosure is possible.

*Notes

(1) Changes in Significant Subsidiaries during the year ended March 31, 2020

(changes in specific subsidiaries that caused change in scope of consolidation) : No

(2) Changes in Accounting Principles and Accounting Estimates, and Revisions/Restatements

1.	Changes associated with changes in accounting standards	:	Yes
2.	Changes in accounting principles other than 1	:	No
3.	Changes in accounting estimates	:	No
4.	Revisions/restatements	:	No

(3) Number of shares outstanding (Common shares)
1. Number of shares outstanding at the end of the period (including treasury stocks)	204,040,771
March 31, 2020	204,031,841	March 31, 2019
	shares		shares
2. Number of treasury stocks	12,205,848	March 31, 2019	10,210,522
March 31, 2020
	shares		shares

(% represents changes from the previous term.)

3. Average number of shares during the period	Year ended	193,834,048
Year ended	192,123,630
March 31, 2020	shares	March 31, 2019	shares

(Reference) Summary of Non-Consolidated Financial Results

1. Non-Consolidated Financial Results for the Year Ended March 31, 2020 (April 1, 2019 - March 31, 2020)

(1) Non-Consolidated Results of Operations

		Net sales	Operating income	Ordinary income	Net income
		Millions of yen	YoY	Millions of yen	YoY	Millions of yen	YoY	Millions of yen	YoY
			change		change		change		change
	FY2019	352,407	%	37,992	%	67,586	%	54,697	%
	(25.1)	(64.1)	(54.3)	(59.9)
	FY2018	470,644	(17.9)	105,852	(39.5)	147,956	(24.6)	136,326	(7.7)
		Net income	Net income
		per share
		per share
		(diluted)
	FY2019	Yen	284.69	Yen
		-
	FY2018		703.31	-
(2) Non-Consolidated Financial Position
		Total assets	Net assets	Equity ratio	Net assets
		per share
	FY2019	Millions of yen	Millions of yen	%	92.1	Yen
	1,177,585	1,084,633		5,654.25
	FY2018	1,292,323	1,173,464		90.8	6,054.08
	(Reference)	Equity: FY2019: ¥1,084,633 million	FY2018: ¥1,173,464 million

• The report of the annual financial results is not subject to audit by certified public accountant or audit firm.
• Any forward looking statements such as financial forecasts described in this report are subject to uncertain factors such as supply and demand trends, industry competition, economic conditions, and others in major markets. Actual results may differ from these forecasts. For the details of the financial forecasts, please refer to "Future Outlook" on page 4 of the Accompanying Documents. The forecasts of the 2nd quarter-end and the year-end dividends for the year ending March 31, 2021, will be disclosed promptly upon their availability.

Table of Contents of Accompanying Documents

１．Overview of Results of Operations and Financial Position	2
(1)	Overview of Results of Operations	2
(2)	Overview of Financial Position	4
(3)	Overview of Cash Flows	4
(4)	Future Outlook	4

1. Basic Policy on Return of Profit to Shareholders and

	Dividends for the Period ended March 31, 2020	5
２．Management Policy	7
(1)	Basic Management Policy	7
(2)	Challenges	7
３．Basic Way of Thinking Regarding the Choice of
Accounting Standards	8
４．Consolidated Financial Statements and Primary Notes	9
(1)	Consolidated Balance Sheets	9

1. Consolidated Statements of Income and

	Consolidated Statements of Comprehensive Income	11
(3)	Consolidated Statements of Changes in Net Assets	13
(4)	Consolidated Statements of Cash Flows	17
(5)	Notes to Consolidated Financial Statements	18
	（Note on premise of a going concern）	18
	（Changes in Accounting Principles）	18
	（Changes in presentation methods）	18
	（Segment information, etc.）	18
	（Per share data）	19
	（Significant subsequent events）	20
	1

1. Overview of Results of Operations and Financial Position

(1) Overview of Results of Operations

The overall business environment surrounding the FANUC Group during this period (from April 1, 2019 to March 31, 2020) was harsh, due primarily to the cautious approach to capital investment mainly in the Chinese market, stemming from the impact of the trade friction between the United States and China. In addition, as the impact of the coronavirus (COVID-19) became more severe towards the end of the period, the business environment became very difficult and unforeseeable.

Even under these circumstances, in order to continue management from a medium to long-term perspective, the FANUC Group promoted major initiatives consisting mainly of advancing product development featuring superior reliability and maintainability, establishing a manufacturing scheme to achieve high quality and short delivery time, and strengthening the service system that supports our customers' manufacturing activities, by uniting as one group under the slogans; "one FANUC", "Reliable, Predictable, Easy to Repair" and "Service First."

At the same time, to deal with the current strenuous market conditions, we have steadily fortified our corporate structure by reducing expenses and time, and streamlining business operations throughout the Company, as well as reviewing plans for equipment and facility investments according to priority.

During the fiscal year ended March 31, 2020, FANUC posted consolidated net sales totaling ¥508,252 million, down 20.0%, consolidated ordinary income totaling ¥102,816 million, down 44.0%, and consolidated net income totaling ¥73,371 million, down 52.4%, compared with the previous fiscal year.

(Note): "Net income" in "Overview of Results of Operations and Financial Position" means "Net income attributable to owners of parent" in the Consolidated Statements of Income.

During this period, "FANUC Robot R-2000iD/210FH," a product with cables integrated into its arm and featuring a good balance between design and function, won "Nikkan Kogyo Shimbun Best 10 New Product Awards 2019/Main Award" and the "Nikkei Business Daily Awards for Excellence/2019 Nikkei Superior Products and Services Awards." We also won a METI Minister's Award for Excellent Corporation Utilizing the Intellectual Property Rights System (open innovation promoter) in the "Intellectual Property Achievement Awards" run by the Japan Patent Office, METI.

The following is a summary of the results for each business division:

[FA Division]

Demand in the machine tool industry, the primary market for FANUC CNC systems, declined in the Chinese market due mainly to the impact of the trade friction between the United States and

2

China, and demand for machines also dropped in Taiwan, which is heavily dependent on the Chinese market. In the face of the restraining of capital investments, demand declined in Japan and Europe as well. Sales in South Korea, as well as India which had performed solid in the previous period, remained sluggish due mainly to weak domestic demand. Across the world, automobile-related investment, which greatly impacts demand for machines, was stagnant. As a result, net sales of CNC systems of the FANUC Group decreased compared with the previous fiscal year.

With regard to our lasers, although we continued focusing efforts on expanding sales, competition with overseas manufacturers has been intensifying.

The FA Division posted consolidated sales totaling ¥143,247 million, down 32.1% compared with the previous fiscal year, and FA Division sales accounted for 28.3% of consolidated net sales.

[ROBOT Division]

In the Robot Division, sales in the Americas were solid. In Japan, sales slightly increased for the automobile industry and slightly decreased for the general industries. Sales in China and Europe both for the automobile industry and for the general industries were sluggish. As a result, sales in the Robot Division as a whole decreased compared with the previous fiscal year.

The ROBOT Division posted consolidated sales totaling ¥202,491 million, down 6.9% compared with the previous fiscal year. ROBOT Division sales accounted for 39.8% of consolidated net sales.

[ROBOMACHINE Division]

As there was almost no short-term demand in the IT-related industry for the ROBODRILLs (compact machining centers), we focused on expanding sales in the market for automobile parts. However, as the automobile-related market slowed down in the latter half of the period, sales decreased. In addition, sales of the ROBOSHOTs (electric injection molding machines) slightly decreased, although we made persistent efforts to expand sales mainly to automobile parts, IT-related, and medical markets. With regard to the ROBOCUTs (wire-cut electric discharge machines), sales also declined, mainly in the Chinese market.

The ROBOMACHINE Division posted consolidated sales totaling ¥74,912 million, down 34.9% compared with the previous fiscal year. ROBOMACHINE Division sales accounted for 14.7% of consolidated net sales.

[Service Division]

The Service Division, under our slogan "Service First," reinforced our service system, increased efficiency through proactive introduction of IT technology, enhanced our service technology and improved our service tools. With maintaining a network of service centers counting 260 and more

covering 108 countries around the world we are providing rapid maintenance service activities to

3

minimize downtime in our customers' factories.

The Service Division posted consolidated sales totaling ¥87,602 million, down 4.7% compared with the previous fiscal year. Service Division sales accounted for 17.2% of consolidated net sales.

(2) Overview of Financial Position

Total assets were ¥1,512,499 million, down ¥112,841 million compared with the end of the previous fiscal year.

Total liabilities were ¥149,634 million, down ¥30,560 million compared with the end of the previous fiscal year.

Total net assets were ¥1,362,865 million, down ¥82,281 million compared with the end of the previous fiscal year.

We cancelled our treasury shares exceeding the 5% of the total number of issued shares (8,930 shares, ¥88 million) on May 31, 2019 based on the shareholder return policy stated on page 6. (There was no effect on the amount of total net assets.)

(3) Overview of Cash Flows

Cash and cash equivalents (hereinafter "Cash") for this fiscal year amounted to ¥515,008 million, down ¥92,706 million from the end of the previous fiscal year.

(Cash flows from operating activities)

Cash provided by operating activities during this period amounted to ¥144,872 million, down ¥32, 866 million from the previous fiscal year. This was mainly due to the decrease in income before income taxes.

(Cash flows from investing activities)

Cash used in investing activities during this period amounted to ¥84,319 million, down ¥39,024 million from the previous fiscal year. This was mainly because expenditure for the purchase of property, plant and equipment decreased.

(Cash flows from financing activities)

Cash used in financing activities during this period amounted to ¥140,726 million, down ¥32,142 million from the previous fiscal year. This was mainly due to the decrease in dividends paid.

(4) Future Outlook

Since it is difficult to rationally estimate how far the coronavirus (COVID-19) will further spread and when this crisis will be overcome, along with continuously having no expectations for a repetition

4

of the short-term demand from the IT-related industry and other uncertain factors, including changes in tariff policies of countries and foreign exchange fluctuation which reflect trade frictions, it is presumed that the situation will remain disturbing and unpredictable in general.

The forecast for the consolidated financial results for the second quarter (cumulative) of the year ending March 31, 2021, takes the impacts of the coronavirus (COVID-19) into consideration, based on information that is currently available, and therefore is subject to significant change.

Financial forecast for the second quarter (cumulative) of the year ending March 31, 2021

	Amount	Comparison with
	(Millions of yen)	Previous year (%)
Net sales	197,900	(24.2)
Operating income	18,900	(61.4)
Ordinary income	23,100	(59.5)
Net income	16,400	(59.2)

Note: The currency rate applied to the period from April 1, 2020 to September 30, 2020 is averaged at 100 yen/US dollar and 115 yen/Euro.

1. Basic Policy on Return of Profit to Shareholders and Dividends for the Period ended March 31, 2020

Our basic policy for distributing profits to shareholders is as follows:

1.Dividends

We have set a dividend payout ratio of 60% as our basic policy.

2.Share buybacks

We will buy back our own shares in a flexible manner depending on the level of our stock price, taking into account the balance with our investments for growth.

3.Cancellation of treasury shares

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

We have paid dividends based on the above shareholder return policy.

In addition, the Board of Directors resolved at meetings held on April 24, July 29, October 28,

5

2019, and January 29, 2020, to acquire treasury shares in amounts up to ¥50.0 billion, but given the extreme volatility of the stock market as a result of factors including trade friction between the United States and China and the new coronavirus pandemic, the amounts of treasury shares acquired did not reach the approved upper limits.

In addition to a dividend corresponding to a consolidated payout ratio of 60%, the proposed year-end dividend includes a special dividend, provided primarily from the difference between the upper limit amounts approved by the Board of Directors and the amounts of treasury shares actually acquired.

Dividends for this period are scheduled as follows:

	First half	Second half	Full year		Payout ratio
	(forecast)	(forecast)
		Yen		Yen
Current period (fiscal year	Yen	174.65	300.00	78.6%
ended March 31, 2020)	125.35	(Ordinary dividend: 103.79)	(Ordinary dividend:	229.14)
		(Special dividend: 70.86)	(Special dividend: 70.86)
(Reference)	Yen	Yen		Yen
598.19	404.92	1,003.11
Previous period (fiscal year	126.1%
(Ordinary dividend: 252.87)	(Ordinary dividend: 224.34)	(Ordinary dividend:	477.21)
ended March 31, 2019)
(Special dividend: 345.32)	(Special dividend: 180.58)	(Special dividend: 525.90)

6

2. Management Policy

1. Basic Management Policy

FANUC was the first to succeed in the development of NCs and servomechanism in Japan, in the private sector, and ever since this success in 1956, has consistently pursued factory automation.

With its three pillars consisting of the FA business, which comprises FANUC's basic technologies of NCs and servos, the ROBOT and ROBOMACHINE businesses, which apply these basic technologies, along with the business for "FIELD system" which is FANUC's open platform and flagship IoT product, FANUC contributes to the development of the manufacturing industry in Japan and overseas by promoting automation and efficiency in manufacturing.

(2) Challenges

Mainly due to the impact of the global spread of the coronavirus (COVID-19), uncertainty is growing in the global economy, and we must continue to keep alert.

The FANUC Group places highest priority on preventing customers, partners, employees and their families from being infected by the coronavirus and also on preventing the spread. At the same time, we will maintain delivery of products and service activities for our customers.

Meanwhile, under these difficult circumstances, we will continue management from a medium to long-term perspective, focusing on the Company's future.

Guided by the slogan of "one FANUC," the FA, ROBOT, and ROBOMACHINE divisions of the FANUC Group will unite to provide total solutions, and combine our efforts as a Group to provide products and services to customers throughout the world.

Since FANUC products are production goods, we will be thorough in applying our slogan, "Reliable, Predictable, Easy to Repair" in product development, to minimize downtime in our customers' factories and improve their operating rates. Also, as a supplier of production goods, we will fulfill our responsibilities to our customers by building secure and reliable production system.

Furthermore, we will practice our basic policy of "Service First" in providing FANUC's global standard of high-level services anywhere in the world, and "lifetime maintenance" for as long as our customers use our products.

The FANUC Group believes that IoT and AI are indispensable technologies for continuing to develop and launch highly competitive products in the market. By actively adopting these technologies in FA, ROBOT, and ROBOMACHINE products, we will further increase customers' manufacturing efficiency.

Although the current market conditions surrounding our Company are harsh, the FANUC Group

will implement initiatives from a long-term perspective, to make our corporate structure even

7

stronger by increasing product competitiveness, enhancing sales and support activities, as well as promoting automation and robotization of factories. In parallel, efforts will be made to reduce expenses and time, and streamline operations throughout the Company, as well as review equipment and facility investment plans according to priority.

The FANUC Group shall be thorough in pursuing "Strict Preciseness" and "Transparency," which are FANUC's basic principles, and unite as one to promote these measures. In this manner, we shall endeavor to gain more customer confidence and trust in the FANUC Group while adapting to dramatic changes in the environment, in our efforts to continue to grow forever.

3. Basic Way of Thinking Regarding the Choice of Accounting Standards

In consideration of enabling the comparison of consolidated financial statements for designated periods and comparison with other companies, FANUC will continue its policy of generating consolidated financial statements according to Japanese standards for the foreseeable future.

8

1. 4. Consolidated Financial Statements and Primary Notes

2. Consolidated Balance Sheets

			(Millions of yen)
		March 31, 2019	March 31, 2020
Assets
	Current assets
	Cash and bank deposits	607,155	405,861
	Notes and accounts receivables, trade	106,204	85,266
	Marketable securities	15,000	126,700
	Finished goods	71,042	65,122
	Work in progress	55,174	51,979
	Raw materials and supplies	29,930	25,450
	Other current assets	24,302	10,833
	Allowance for doubtful accounts	(1,123)	(831)
	Total current assets	907,684	770,380
	Noncurrent assets
	Property, plant and equipment
	Buildings	301,179	310,060
	Machinery and equipment	55,823	60,216
	Land	145,885	146,085
	Construction in progress	56,715	65,458
	Other, net	14,974	15,317
	Total property, plant and equipment	574,576	597,136
	Intangible assets	9,603	10,219
	Investments and other assets
	Investment securities	86,674	83,337
	Deferred income taxes	36,552	33,912
	Net defined benefit asset	6,737	13,968
	Others	3,970	4,003
	Allowance for doubtful accounts	(456)	(456)
	Total investments and other assets	133,477	134,764
	Total noncurrent assets	717,656	742,119
	Total assets	1,625,340	1,512,499

9

			(Millions of yen)
		March 31, 2019	March 31, 2020
Liabilities
Current liabilities
	Notes and accounts payables, trade	36,567	26,974
	Accrued income taxes	15,007	9,270
	Warranty reserves	8,215	8,306
	Other current liabilities	75,278	56,413
	Total current liabilities	135,067	100,963
Long-term liabilities
	Net defined benefit liability	42,097	44,652
	Other long-term liabilities	3,030	4,019
	Total long-term liabilities	45,127	48,671
Total liabilities	180,194	149,634
Net assets
Shareholders' equity
	Common stock	69,014	69,014
	Capital surplus	96,265	96,265
	Retained earnings	1,380,439	1,351,122
	Treasury stock, at cost	(91,040)	(127,822)
	Total shareholders' equity	1,454,678	1,388,579
Accumulated other comprehensive income
	Valuation difference on available-for-sale	9,111	5,058
	securities
	Foreign currency translation adjustment	(6,677)	(26,608)
	Remeasurements of defined benefit plans	(19,337)	(11,929)
	Total accumulated other comprehensive	(16,903)	(33,479)
	income
Non-controlling interests	7,371	7,765
Total net assets	1,445,146	1,362,865
Total liabilities and net assets	1,625,340	1,512,499

10

1. Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income

					(Millions of yen)
			Years ended March 31
			2019	2020
	Net sales	635,568		508,252
	Cost of goods sold	369,761		326,095
	Gross profit	265,807		182,157
	Selling, general and administrative expenses	102,510		93,807
	Operating income	163,297		88,350
	Non-operating income
		Interest income	4,195		3,861
		Dividends income	1,510		1,444
		Equity in earnings of affiliates	14,243		8,752
		Miscellaneous income	4,222		2,733
		Total non-operating income	24,170		16,790
	Non-operating expenses
		Removal expenses of noncurrent	1,955		971
		assets
		Loss on valuation of investment	47		454
		securities
		Donations	292		300
		Miscellaneous expenses	1,714		599
		Total non-operating expenses	4,008		2,324
	Ordinary income	183,459	102,816
	Extraordinary income
		Gain on transfer of benefit obligation	25,081		－
		relating to employees' pension fund
		Total extraordinary income	25,081		－
	Extraordinary losses
		Impairment loss	－		1,973
		Total extraordinary losses	－	1,973
	Income before income taxes	208,540		100,843
	Income taxes-current	48,977	24,450
	Income taxes-deferred	4,794		1,776
	Total taxes and others	53,771	26,226
	Net income	154,769		74,617
	Net income attributable to non-controlling	606	1,246
	interests
	Net income attributable to owners of parent	154,163		73,371

11

Consolidated Statements of Comprehensive Income

			(Millions of yen)
		Years ended March 31
		2019	2020
	Net income	154,769	74,617
	Other comprehensive income
	Valuation difference on	(3,979)	(4,053)
	available-for-sale securities
	Foreign currency translation	(1,946)	(18,634)
	adjustment
	Remeasurements of defined benefit	4,780	7,408
	plans
	Share of other comprehensive
	income of affiliates accounted for	(4,267)	(1,961)
	using equity method
	Total other comprehensive income	(5,412)	(17,240)
	Comprehensive income	149,357	57,377
	Comprehensive income attributable
	to:
	Owners of parent	148,906	56,796
	Non-controlling interests	451	581

12

(3) Consolidated Statements of Changes in Net Assets Year ended March 31, 2019 (April 1, 2018 - March 31, 2019)

				(Millions of yen)
			Shareholders' equity
			Retained	Treasury stock,	Total
	Common stock	Capital surplus	shareholders'
	earnings	at cost
			equity
Balance at March 31, 2018	69,014	96,265	1,398,977	(91,020)	1,473,236
Cumulative effects of
changes in accounting					－
policies
Restated balance	69,014	96,265	1,398,977	(91,020)	1,473,236
Changes during the year:
Dividends of surplus			(173,665)		(173,665)
Net income attributable			154,163		154,163
to owners of parent
Changes by merger			1,121		1,121
Purchase of treasury				(187)	(187)
stock
Disposal of treasury		6		4	10
stock
Retirement of treasury		(6)	(157)	163	－
stock
Net change except
shareholders' equity
during the year
Total changes during the	－	－	(18,538)	(20)	(18,558)
year
Balance at March 31, 2019	69,014	96,265	1,380,439	(91,040)	1,454,678

13

			Accumulated other comprehensive income
							Non-
			Valuation	Foreign currency	Remeasurements	Total accumulated
			controlling	Total net assets
			difference on	translation	of defined benefit	other	interests
			available-for-	comprehensive
			adjustment	plans
			sale securities	income
Balance at March 31, 2018	13,090	(619)	(24,117)	(11,646)	6,040	1,467,630
Cumulative	effects	of
changes in	accounting						－
policies
Restated balance		13,090	(619)	(24,117)	(11,646)	6,040	1,467,630
Changes during the year:
Dividends of surplus							(173,665)
Net income attributable						154,163
to owners of parent
Changes by merger							1,121
Purchase of treasury							(187)
stock
Disposal of treasury							10
stock
Retirement of treasury						－
stock
Net change except
shareholders' equity		(3,979)	(6,058)	4,780	(5,257)	1,331	(3,926)
during the year
Total changes	during	the	(3,979)	(6,058)	4,780	(5,257)	1,331	(22,484)
year
Balance at March 31, 2019	9,111	(6,677)	(19,337)	(16,903)	7,371	1,445,146

14

Year ended March 31, 2020 (April 1, 2019 - March 31, 2020)

(Millions of yen)

				Shareholders' equity
					Treasury stock, at	Total
		Common stock	Capital surplus	Retained earnings	shareholders'
					cost	equity
Balance at March 31, 2019	69,014	96,265	1,380,439	(91,040)	1,454,678
Cumulative	effects of
changes in	accounting			(63)		(63)
policies
Restated balance	69,014	96,265	1,380,376	(91,040)	1,454,615
Changes during the year:
Dividends of surplus			(102,541)		(102,541)
Net income attributable			73,371		73,371
to owners of parent
Changes by merger					－
Purchase of treasury				(36,875)	(36,875)
stock
Disposal of treasury		4		5	9
stock
Retirement of treasury		(4)	(84)	88	－
stock
Net change except
shareholders' equity
during the year
Total changes during the	－	－	(29,254)	(36,782)	(66,036)
year
Balance at March 31, 2020	69,014	96,265	1,351,122	(127,822)	1,388,579

15

			Accumulated other comprehensive income
							Non-
			Valuation	Foreign currency	Remeasurements	Total accumulated
			controlling	Total net assets
			difference on	translation	of defined benefit	other	interests
			available-for-	comprehensive
			adjustment	plans
			sale securities	income
Balance at March 31, 2019	9,111	(6,677)	(19,337)	(16,903)	7,371	1,445,146
Cumulative	effects	of
changes in	accounting						(63)
policies
Restated balance		9,111	(6,677)	(19,337)	(16,903)	7,371	1,445,083
Changes during the year:
Dividends of surplus							(102,541)
Net income attributable						73,371
to owners of parent
Changes by merger							－
Purchase of treasury							(36,875)
stock
Disposal of treasury							9
stock
Retirement of treasury						－
stock
Net change except
shareholders' equity		(4,053)	(19,931)	7,408	(16,576)	394	(16,182)
during the year
Total changes	during	the	(4,053)	(19,931)	7,408	(16,576)	394	(82,218)
year
Balance at March 31, 2020	5,058	(26,608)	(11,929)	(33,479)	7,765	1,362,865

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(4) Consolidated Statements of Cash Flows

					(Millions of yen)
				Years ended March 31
				2019	2020
	Cash flows from operating activities
		Income before income taxes	208,540	100,843
		Depreciation and amortization	39,709	45,913
		Impairment loss	－	1,973
		Increase (decrease) in allowance for doubtful	(200)	(261)
		accounts
		Increase (decrease) in net defined benefit liability	(25,320)	2,762
		(Increase) decrease in net defined benefit asset	(6,732)	(7,456)
		Interest and dividend income	(5,705)	(5,305)
		Equity in (earnings) losses of affiliates, net	(14,243)	(8,752)
		(Increase) decrease in receivables, trade	67,500	18,358
		(Increase) decrease in inventories	(6,249)	10,288
		Increase (decrease) in payables, trade	(16,393)	(8,646)
		Other	3,855	14,118
		Subtotal	244,762	163,835
		Interest and dividends received	13,662	11,965
		Income taxes paid	(79,985)	(29,655)
		Other	(701)	(1,273)
		Net cash provided by operating activities	177,738	144,872
	Cash flows from investing activities
		Payments into time deposits	(60,142)	(32,248)
		Proceeds from withdrawal of time deposits	67,357	28,672
		Purchases of property, plant, and equipment	(125,324)	(75,429)
		Other	(5,234)	(5,314)
		Net cash used in investing activities	(123,343)	(84,319)
	Cash flows from financing activities
		Purchases of treasury stock	(183)	(36,870)
		Dividends paid	(173,571)	(102,546)
		Other	886	(1,310)
		Net cash used in financing activities	(172,868)	(140,726)
	Effect of exchange rate changes on cash and cash	(580)	(12,533)
	equivalents
	Net increase (decrease) in cash and cash equivalents	(119,053)	(92,706)
	Cash and cash equivalents at beginning of year	725,903	607,714
	Increase in cash and cash equivalents resulting from	864	－
	merger with unconsolidated subsidiaries
	Cash and cash equivalents at end of year		607,714	515,008

17

1. Notes to Consolidated Financial Statements

(Note on premise of a going concern) Not applicable

(Changes in Accounting Principles)

(Adoption of IFRS 16 Leases)

Subsidiaries which adopt the International Financial Reporting Standards have adopted IFRS

16 Leases (hereinafter referred to as "IFRS 16") since this fiscal year 2019. As a result, lessees have recorded all leases, in principle, as assets and liabilities in the balance sheet.

The adoption of IFRS 16 is subject to transitional treatment, and the cumulative effect of the change in the accounting policy was recorded in retained earnings at the beginning of this fiscal year 2019.

The impact of the adoption of this accounting standard on the consolidated financial statements is immaterial.

(Financial Accounting Standards Board Accounting Standards Codification 606 － Revenue From Contracts With Customers)

Subsidiaries adopting the US-GAAP have started to apply Financial Accounting Standards Board Accounting Standards Codification "Revenue from Contracts with Customers" (hereinafter referred to as "ASC 606") since this fiscal year 2019.

As a result of this change, revenue is recognized at the time the promised goods or services are transferred to the customer, in an amount that reflects the consideration expected to be received in exchange for the goods or services.

As a measure in applying this accounting standard, a method is adopted of recognizing the cumulative effects of applying this standard, adjusting retained earnings at the beginning of this fiscal year 2019.The impact of the adoption of this accounting standard on the consolidated financial statement is immaterial.

(Changes in presentation methods)

(Consolidated statement of income related)

In the previous consolidated fiscal year, "Loss on sales and retirement of noncurrent assets" under "Non-operating expenses" was shown independently.

However, as its monetary significance has become negligible, starting from the current consolidating fiscal year, it is shown after including in "Miscellaneous expenses" under "Non-operating expenses".

Also, "Loss on valuation of investment securities" and "Donations" shown after including in "Miscellaneous expenses" under "Non-operating expenses" in the previous consolidated fiscal year. However as its monetary significance has become substantial, starting from the current consolidating fiscal year, it is shown independently.

For incorporating this revision of the presentation method, the consolidated financial statements for the previous consolidated fiscal year have been reclassified.

As a result, "Loss on sales and retirement of noncurrent assets" of ¥1,059 million and "Miscellaneous expenses" of ¥994 million shown under "Non-operating expenses" have been reclassified as "Loss on valuation of investment securities" of ¥47 million, "Donations" of ¥292 million and "Miscellaneous expenses" of ¥1,714 million.

(Segment information, etc.)

1. Segment information

Year ended March 31, 2019 (April 1, 2018 - March 31, 2019) and

Year ended March 31, 2020 (April 1, 2019 - March 31, 2020)

FANUC Group focuses on the development, production, and sales of CNC systems and related application products based on FANUC's CNC system technologies as a comprehensive supplier of

18

factory automation (FA) systems. Ultimately, FANUC CNC systems and the related application products are used in automated production systems.

FANUC Group uses CNCs and servo motors in all of its products. For this reason, the decision is made, taking into consideration the status of orders, sales and production of all products, in addition to the status of particular products.

As mentioned above, FANUC Group runs only one business segment based on the decision that the entire group makes for investment. Thus, the segment information is not stated herein.

2. Relevant information

Year ended March 31, 2020 (April 1, 2019 - March 31, 2020)

1. Information by product and service

					(Millions of yen)
	FA	ROBOT	ROBOMACHINE	Service		Total
Net sales to
unaffiliated	143,247	202,491	74,912	87,602		508,252
customers

1. Information by region
2. • Net sales

					(Millions of yen)
Japan	Americas	Europe	Asia	Other	Total
117,134	125,121	99,157	162,941	3,899	508,252

Note: Net sales are broken down by country or region where customers are located.

• Property, plant and equipment, at cost

As the amount of the property, plant and equipment, at cost located in Japan constitute more than 90% of those stated in the consolidated balance sheets, the statement on the information about them is omitted.

(Per share data)

Fiscal year 2018			Fiscal year 2019
(April 1, 2018 - March 31, 2019)		(April 1, 2019 - March 31, 2020)
Net assets per share	7,417.70	yen	Net assets per share	7,064.22	yen
Net income per share	795.34	yen	Net income per share	381.89	yen
Net diluted income per share is not stated herein	Net diluted income per share is not stated herein
as there exist no dilutive shares.			as there exist no dilutive shares.

Note: Net income per share is calculated based on the following:

	Fiscal year 2018	Fiscal year 2019
	(April 1, 2018 - March 31, 2019)	(April 1, 2019 - March 31, 2020)
Net income attributable to owners of
parent (Millions of yen)	154,163	73,371
Amount not accruing to common shares
(Millions of yen)	―	―
Net income attributable to owners of
parent, assigned to common share
(Millions of yen)	154,163	73,371
Average number of shares outstanding
(Thousands of share)	193,834	192,124
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(Significant subsequent events)

(The Cancellation of Treasury Shares)

At a meeting held on April 24, 2020, the Board of Directors of FANUC CORPORATION resolved to cancel its treasury shares pursuant to the provision of Article 178 of the Company Act.

(1)	Class of shares to be cancelled	: Common shares
(2)	Number of shares to be cancelled	: 2,109,744shares
		(1.03% of the shares outstanding before cancellation)
(3)	Date of cancellation	: May 29, 2020

(4) The number of outstanding shares after cancellation : 201,922,097 shares

20