Fanuc : Consolidated Quarterly Financial Results For the nine months ended December 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 Quarterly Financial Results

(based on Japanese standards)

For the nine months ended December 31, 2021

		January 26, 2022
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 filing quarterly report: February 9, 2022

Scheduled date of commencing of dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 - December 31, 2021)

(1) Consolidated Results of Operations

(% represents changes from the previous corresponding Nine-month period.)

Nine months

Net sales

Operating income

Ordinary income

Net income

ended

attributable to owners

December 31

of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

2021

540,250

44.0

139,946

114.4

161,534

114.2

118,772

114.6

2020

375,229

(2.9)

65,263

(4.9)

75,397

(5.4)

55,344

(2.1)

Note: Consolidated

comprehensive income:

April-December 2021:

¥137,892 million

93.9%

April-December 2020:

¥71,131 million

45.0%

Nine months

Net income

Net income

ended

per share

per share

December 31

(diluted)

2021

Yen

Yen

-

619.20

2020

288.52

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

December 31, 2021

1,703,468

1,486,555

86.5

March 31, 2021

1,625,191

1,435,554

87.7

1,425,479 million

(Reference) Equity: December 31, 2021: ¥1,473,978 million

March 31, 2021: ¥

2. Dividends

Dividends per share

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Full year

Dividends

FY2020

Yen

Yen

Yen

Yen

Yen

―

87.93

―

206.14

294.07

FY2021

―

246.02

―

FY2021

―

―

(forecast)

Note: We have not changed the forecasts of dividends from the latest ones.

Note: The forecasts of year-end dividends for the year ending March 31, 2022 will be disclosed promptly upon their availability.

3. Consolidated Financial Forecasts for the Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(% represents 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	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal period	726,200	31.7	186,500	65.8	214,700	66.8	159,300	69.4	830.48

Note: We have changed the forecasts of financial results from the latest ones.

*Notes

(1) Changes in Significant Subsidiaries during the period

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

(2) Adoption of Simplified and Specifically Applied Accounting Method for Quarterly	: No
Consolidated Financial Reporting

(3) 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

Note: For details, please see "3. Other Information (3) Changes in Accounting Principles and Accounting Estimates, and Revisions/Restatements" on Page 8 in Attachment.

(4) Number of shares outstanding (Common shares)
1.	Number of shares outstanding at the end of the period (including treasury stocks)	201,922,097
	December 31, 2021	201,909,397	March 31, 2021
		shares		shares
2.	Number of treasury stocks	10,088,254	March 31, 2021	10,108,169
	December 31, 2021
		shares		shares
3.	Average number of shares during the period	April-December 2020	191,822,350
	April-December 2021	191,816,435
		shares		shares

• The report of the quarterly 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 see "Financial Results Forecasts" on page 3 of the Accompanying Documents. The forecasts of 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．Results of Operations and Financial Position	2
(1)	Results of Operations	2
(2)	Financial Position	3
(3)	Financial Results Forecasts	3
2．Consolidated Quarterly Financial Statements	4
(1)	Consolidated Quarterly Balance Sheet	4

1. Consolidated Quarterly Statement of Income and

	Consolidated Quarterly Statement of Comprehensive Income	6
	Consolidated Quarterly Statement of Income	6
	Consolidated Quarterly Statement of Comprehensive Income	7
3．Other Information	8
(1)	Changes in Significant Subsidiaries during the Period	8
(2)	Adoption of Simplified and Specifically Applied Accounting
	Method for Quarterly Consolidated Financial Reporting	8

1. Changes in Accounting Principles and Accounting Estimates, and

	Revisions/Restatements	8
(4)	Note on Premise of a Going Concern	8
(5)	Note on the Substantial Change in Shareholders' Equity	8

1

1. Results of Operations and Financial Position

(1) Results of Operations

Regarding the circumstances surrounding the FANUC Group during the first nine-month period of the fiscal year ending March 31, 2022 (from April 1 to December 31, 2021), capital investment in the entire manufacturing sector, which had been declining due to the impact of the spread of the coronavirus (COVID-19), recovered and thus was made vigorously. The outlook remained uncertain, however, due to the prolonged impact on manufacturing activities from a shortage in components such as semiconductors across global supply chains.

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.

During the nine months from April to December 2021, FANUC posted consolidated net sales totaling ¥540,250 million, up 44.0%, consolidated ordinary income totaling ¥161,534 million, up 114.2%, and net income attributable to owners of parent totaling ¥118,772 million, up 114.6%, compared with the corresponding period of the previous fiscal year.

An overview of the results for each business division is as follows:

In the FA Division, demand from the machine tool industry, the primary market for CNC systems, remained strong in all major markets, as evidenced by an increase in Europe and the Americas as well as in China, where demand has been robust, and sales of FANUC's CNC systems also increased. With regard to our lasers, competition from overseas manufacturers remains fierce. As a result, net sales in the FA Division amounted to ¥163,854 million, up 56.0% compared with the corresponding period of the previous fiscal year.

In the Robot Division, sales in China remained strong, mainly in IT-related industries and for EVs, heavy machinery and construction machinery. Strong sales were also recorded in the United States, to general industries and to the automobile industry with EV-related demand, and demand from general industries in Europe remained strong, resulting in an increase in sales. In Japan, sales increased compared with the sluggish sales seen in the corresponding period of the previous fiscal year. As a result, net sales in the Robot Division amounted to ¥198,070 million, up 38.1% from the corresponding period of the previous fiscal year.

In the Robomachine Division, sales of the ROBODRILLs (compact machining centers) increased, due to vigorous demand for use in the personal computer and tablet markets in China. Sales of the ROBOSHOTs (electric injection molding machines) increased due to strong demand from IT-related and medical markets. Sales of the ROBOCUTs (wire electrical-discharge machines) also increased due to strong demand from IT-related and automobile component markets. As a result, net sales in the Robomachine Division amounted to ¥109,229 million, up 54.0% compared with the corresponding period of the previous fiscal year.

In the Service Division, sales recovered to the same level as in normal years. As a result, net sales in the Service Division amounted to ¥69,097 million, up 23.7% compared with the corresponding period of the previous fiscal year.

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(2) Financial Position

Total assets were ¥1,703,468 million, up ¥78,277 million compared with the end of the previous fiscal year.

Total liabilities were ¥216,913 million, up ¥27,276 million compared with the end of the previous fiscal year.

Total net assets were ¥1,486,555 million, up ¥51,001 million compared with the end of the previous fiscal year.

(3) Financial Results Forecasts

The outlook remains uncertain due to a shortage in components such as semiconductors. However, the Company anticipates strong demand in various areas in the fields of FA, Robots, and Robomachines, and as such, the Company forecasts financial results for fiscal 2021 (the fiscal year ending March 31, 2022), as follows.

For the fiscal year 2021 (April 1, 2021 through March 31, 2022)

(Millions of yen)

	Previous forecast		Comparison with
	(released on	New forecast
	Previous forecast (%)
	October 27, 2021)	[B]
	[(B-A) / A]
	[A]
Net sales	708,900	726,200	2.4％
Operating income	177,500	186,500	5.1％
Ordinary income	203,400	214,700	5.6％
Net income			5.6％
attributable to owners	150,800	159,300
of parent

Note: The currency rate applied to the period from January 1, 2022 to March 31, 2022 is averaged at 105 yen/US dollar and 125 yen/Euro.

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