Fanuc : Consolidated Quarterly Financial Results For the three months ended June 30, 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 three months ended June 30, 2021

		July 29, 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 filing quarterly report: August 5, 2021

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 Three Months Ended June 30, 2021 (April 1, 2021 - June 30, 2021)

(1) Consolidated Results of Operations

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

Three months	Net sales				Operating income		Ordinary income		Net income
					attributable to owners
ended June 30
																of parent
	Millions of yen		%	Millions of yen			%			Millions of yen		%			Millions of yen		%
2021	185,293		69.6	52,070			370.0			57,960		341.1			40,295		343.2
2020	109,260		(18.8)	11,078			(61.3)			13,140		(59.0)		9,091		(61.0)
Note: Consolidated	comprehensive income: April-June 2021:	¥47,920 million 278.8%
						April-June 2020: ¥12,650 million (6.3)%
Three months	Net income				Net income
			per share
ended June 30	per share
			(diluted)
2021	Yen				Yen
210.07			-
2020	47.39			-
(2) Consolidated Financial Position
	Total assets	Net assets		Equity ratio
	Millions of yen	Millions of yen		%
June 30, 2021	1,625,732	1,443,540					88.1
March 31, 2021	1,625,191	1,435,554					87.7	1,425,479 million
(Reference) Equity: June 30, 2021: ¥1,432,815 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	-
FY2021						-			-	-				-
(forecast)

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

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 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	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
2nd Quarter	367,400	59.5	101,900	215.3	114,800	200.4	81,800	191.0	426.46
(Cumulative)
Fiscal period	727,600	32.0	194,400	72.8	216,400	68.1	156,000	65.9	813.30

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

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 period

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

(2) Adoption of Simplified and Specifically Applied Accounting Method for Quarterly

Consolidated Financial Reporting

: No

(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.

1. Number of shares outstanding (Common shares)

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

	June 30, 2021	201,909,397	March 31, 2021	201,922,097
		shares		shares
2.	Number of treasury stocks	10,097,478	March 31, 2021	10,108,169
	June 30, 2021
		shares		shares
3.	Average number of shares during the period	April-June 2020	191,825,011
	April-June 2021	191,812,543
		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 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.	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
	(2)	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

1. 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

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1. Results of Operations and Financial Position

(1) Results of Operations

Regarding the circumstances surrounding the FANUC Group during the first quarter (from April 1 to June 30, 2021), capital investment across the entire manufacturing sector which had been declining due to the impact of the spread of the coronavirus (COVID-19) increased. The outlook remained uncertain however, with fears of the renewed spread of COVID-19, a shortage in major components such as semiconductors, and the impact of friction between the United States and China.

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 three months from April to June 2021, FANUC posted consolidated net sales totaling ¥185,293 million, up 69.6%, consolidated ordinary income totaling ¥57,960 million, up 341.1%, and net income attributable to owners of parent totaling ¥40,295 million, up 343.2%, 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 China and India, and recovered overall, including in Europe and the Americas. Japan, South Korea, and Taiwan performed strongly, with an increase in exports to Europe and the Americas, in addition to the Chinese market. With regard to our lasers, the Chinese market and the European market are on a recovery trend, but competition from overseas manufacturers remains fierce. As a result, net sales in the FA Division amounted to ¥52,206 million, up 49.8% 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. Demand from general industries in Europe remained strong, and sales increased. In Japan, sales are recovering after bottoming-out in October last year. As a result, net sales in the Robot Division amounted to ¥58,806 million, up 44.7% compared with 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 computer, tablet, and smartphone markets. Sales of the ROBOSHOTs (electric injection molding machines) increased due to strong demand from IT-related and medical markets. Sales of the ROBOCUTs (wire-cut electric discharge machines) also increased. As a result, net sales in the Robomachine Division amounted to ¥53,239 million, up 189.9% compared with the corresponding period of the previous fiscal year.

In the Service Division, sales recovered to the same level as in normal years. Net sales in the Service Division amounted to ¥21,042 million, up 36.5% compared with the corresponding period of the previous fiscal year.

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(2) Financial Position

Total assets were ¥1,625,732 million, up ¥541 million compared with the end of the previous fiscal year.

Total liabilities were ¥182,192 million, down ¥7,445 million compared with the end of the previous fiscal year.

Total net assets were ¥1,443,540 million, up ¥7,986 million compared with the end of the previous fiscal year.

(3) Financial Results Forecasts

For a while, the Company anticipates strong demand in various areas in the fields of FA, Robots, and Robomachines, and as such, forecasts financial results for the first half of fiscal 2021 (the fiscal year ending March 31, 2022) and fiscal 2021, as follows.

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.

For the first half of the fiscal year 2021 (April 1, 2021 through September 30, 2021)

(Millions of yen)

	Previous forecast		Increase from
	(released on	New forecast
	previous forecast (%)
	April 27, 2021)	[B]
	[(B-A) / A]
	[A]
Net sales	348,200	367,400	5.5
Operating income	87,700	101,900	16.2
Ordinary income	97,400	114,800	17.9
Net income	70,800	81,800	15.5
attributable to owners
of parent

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

(Millions of yen)

	Previous forecast		Increase from
	(released on	New forecast
	previous forecast (%)
	April 27, 2021)	[B]
	[(B-A) / A]
	[A]
Net sales	657,100	727,600	10.7
Operating income	148,400	194,400	31.0
Ordinary income	164,500	216,400	31.6
Net income	120,500	156,000	29.5
attributable to owners
of parent

Note: The currency rate applied to the period from July 1, 2021 to March 31, 2022 is averaged at 105 yen/US dollar and 125 yen/Euro.

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