Fanuc : Consolidated Annual Financial Results For the Year ended March 31, 2021

(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, 2021

		April 27, 2021
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 & Shareholders Relations Department
		(Name) Naoki Yukisada TEL: [phone]

Scheduled date of the Annual Meeting of Shareholders: June 24, 2021

Scheduled date of commencing of dividend payments: June 25, 2021

Scheduled date of filing the Securities Report: June 30, 2021

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, 2021 (April 1, 2020 - March 31, 2021)

(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
FY2020	551,287	%	112,514			%			128,744		%			94,012		%
8.5			27.4				25.2				28.1
FY2019	508,252	(20.0)	88,350			(45.9)			102,816		(44.0)		73,371		(52.4)
Note: Consolidated comprehensive income: FY2020: ¥ 124,079 million 116.3% FY2019: ¥57,377	million
(61.6)%
	Net income		Net income											Ordinary			Operating
		per share				Return on equity		income-to-total		income-to-net
	per share
		(diluted)										capital ratio		sales ratio
FY2020	Yen			Yen			%	6.8			%		8.2		%
490.11		-														20.4
FY2019	381.89		-							5.3						6.6			17.4
(Reference) Equity in earnings of affiliates: FY2020: ¥11,640 million	FY2019: ¥8,752 million
(2) Consolidated Financial Position
	Total assets	Net assets			Equity ratio				Net assets
					per share
FY2020	Millions of yen	Millions of yen			%	87.7				Yen	7,431.58
1,625,191		1,435,554
FY2019	1,512,499		1,362,865						89.6					7,064.22
(Reference) Equity: FY2020: ¥1,425,479 million	FY2019: ¥	1,355,100 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
FY2020	Millions of yen	Millions of yen		Millions of yen				Millions of yen
	117,996			(16,770)						(53,132)					577,919
FY2019		144,872			(84,319)						(140,726)					515,008

2. Dividends

		Dividends per share		Total	Payout Dividends-to-
	1st	2nd	3rd	Year-end		amount of	ratio	net assets
(Cut-off date)	Full year	dividends	(conso-	Ratio
Quarter	Quarter	Quarter	Dividends	(full year)	lidated)	(consolidated)
FY2019	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
―	125.35	―	174.65	300.00	57,558	78.6	4.1
FY2020	―	87.93	―	206.14	294.07	56,407	60.0	4.1
FY2021	―	―	―	―	―		―
(forecast)
Note: The year-end dividends for the year ended 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, 2022, will be disclosed promptly upon their availability.

3. Consolidated Financial Forecasts for the second quarter of the Year Ending March 31, 2022 (April 1, 2021

• March 31, 2022)

(% for the 2Q cumulative period and for the full year represent changes from the same quarter of the previous fiscal year and changes from 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	348,200	51.1	87,700	171.3	97,400	154.8	70,800	151.8	369.11
(Cumulative)
Fiscal period	657,100	19.2	148,400	31.9	164,500	27.8	120,500	28.2	628.21

Note: Actual results may differ from these forecasts, subject to various conditions, including how far the coronavirus (COVID-19) will further spread, and when the pandemic will end. We will promptly publish new information, which may greatly affect actual results if any, upon their availability.

*Notes

(1) Changes in Significant Subsidiaries during the year ended March 31, 2021

(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	:	No
2.	Changes in accounting principles other than 1	:	No
3.	Changes in accounting estimates	:	No
4.	Revisions/restatements	:	No

1. Number of shares outstanding (Common shares)

1. Number of shares outstanding at the end of the period (including treasury stocks)

	March 31, 2021	201,922,097	March 31, 2020	204,031,841
		shares		shares
2.	Number of treasury stocks	10,108,169	March 31, 2020	12,205,848
	March 31, 2021
		shares		shares
3.	Average number of shares during the period	Year ended	192,123,630
	Year ended	191,820,543
	March 31, 2021	shares	March 31, 2020	shares

(Reference) Summary of Non-Consolidated Financial Results

1. Non-Consolidated Financial Results for the Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)

1. Non-ConsolidatedResults of Operations

(% represents changes from the previous term.)

		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
	FY2020	415,939	%	63,481	%	87,889	%		70,451	%
	18.0	67.1	30.0		28.8
	FY2019	352,407	(25.1)	37,992	(64.1)	67,586	(54.3)		54,697	(59.9)
		Net income	Net income
		per share
		per share
		(diluted)
	FY2020	Yen	367.28	Yen
		-
	FY2019		284.69	-
(2) Non-Consolidated Financial Position
		Total assets	Net assets	Equity ratio		Net assets
			per share
	FY2020	Millions of yen	Millions of yen	%	90.3		Yen
	1,236,223	1,116,242			5,819.40
	FY2019	1,177,585	1,084,633		92.1		5,654.25
	(Reference)	Equity: FY2020: ¥1,116,242 million	FY2019: ¥1,084,633 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 5 of the Accompanying Documents. The forecasts of the 2nd quarter-end and the year-end dividends for the year ending March 31, 2022, 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	3
(3)	Overview of Cash Flows	4
(4)	Future Outlook	5

1. Basic Policy on Return of Profit to Shareholders and

	Dividends for the Period ended March 31, 2021	5
２．Management Policy, Business Environment, Challenges,
and Other Matters	6
(1)	Basic Management Policy	6
(2)	Business Environment and Challenges	6
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
	（Segment information, etc.）	18
	（Per share data）	19
	（Significant subsequent events）	19

1

1. Overview of Results of Operations and Financial Position

(1) Overview of Results of Operations

Regarding the business environment surrounding the FANUC Group during this period (April 1, 2020 - March 31, 2021), the market conditions became harsh owing to factors including an ongoing global trend of reduction in capital investment due to the impact of the spread of the coronavirus (COVID-19). However, in addition to recovery first taking place in China, other regions also rebounded gradually from around the second quarter.

Under these circumstances, the FANUC Group has striven to maintain the delivery of products and service activities for our customers while placing utmost priority on preventing the spread of COVID-19. In addition, to deal with changing market conditions, we fortified our corporate structure by reducing expenses and optimizing business operations, among other measures.

During the fiscal year ended March 31, 2021, FANUC posted consolidated net sales totaling ¥551,287 million, up 8.5%, consolidated ordinary income totaling ¥128,744 million, up 25.2%, and net income attributable to owners of parent totaling ¥94,012 million, up 28.1%, compared with the previous fiscal year.

During this period, the new collaborative robot "FANUC Robot CRX Series", which is equipped with all of "Safety", "Ease of Use" and "High Reliability" won the "Nikkan Kogyo Shimbun Best 10 New Product Awards 2020/Main Award," the "Nikkei Business Daily Awards/2020 Nikkei Superior Products and Services Awards," and the METI Minister's Award in METI's Ninth Robot Awards program.

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

[FA Division]

In the FA Division, demand from the machine tool industry, the primary market for CNC systems, recovered earlier and remained strong in China. Demand in India is also undergoing a recovery, especially for agricultural machinery and motorcycles. Although demand in Japan, Europe, South Korea, and Taiwan had remained sluggish, these countries are seeing gradual increases in demand with machine exports to the Chinese market and other markets. As a result, net sales of CNC systems of the FANUC Group increased compared with the previous fiscal year.

With regard to our lasers, the Chinese market and the European market are on a recovery trend, but competition from overseas manufacturers remains fierce.

The FA Division posted consolidated sales totaling ¥149,240 million, up 4.2% compared with the previous fiscal year, and FA Division sales accounted for 27.1% of consolidated net sales.

2