Fanuc : Financial Results for the six months Ended September 30, 2020 (Reference Material)

（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.

Financial Results for the six months

Ended September 30, 2020

FANUC CORPORATION

The 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.

1	October 29, 2020

Consolidated Financial Results

for the 2nd Quarter (6 months) of FY2020

	FY2019	FY2020
	1st Half	1st Half
(Billions of Yen)	Actual	Forecast

Net sales	261.0	212.4
Cost of sales	164.4	150.2
【to Net sales】	63.0%	70.7%
Operating income	49.0	20.4
【to Net sales】	18.8%	9.6%
Ordinary income	57.1	25.9
【to Net sales】	21.9%	12.2%
Extraordinary	-2.0	-
income or loss
Net income	40.2	18.7
【to Net sales】	15.4%	8.8%
FX Rate
Yen/1USD	108.63	103.81
Yen/1EUR	121.42	116.74

FY2020 1st Half Actual

230.4

156.7

68.0%

32.3

14.0%

38.2

16.6%

-

28.1

12.2%

106.92

121.30

	Change from	Change from
	1st Half of	Previous
	FY2019	Forecast
	-11.7%	+8.5%
	-4.7%	+4.3%
	-34.1%	+58.4%
	-33.1%	+47.6%
	-	-
	-30.0%	+50.3%
	-1.6%	+3.0%
	-0.1%	+3.9%

※"Net income" means "Net income attributable to owners of	2	October 29, 2020
parent".

Half-yearly Changes in Consolidated Sales and Profit/Loss

※"Net income" means "Net income attributable to owners of	3	October 29, 2020
parent".

Consolidated Financial Results

for the 2nd Quarter (3 months) of FY2020

		FY2019	FY2020	FY2020
		2Q	1Q	2Q	Change from	Change from
	(Billions of Yen)	(Jul～Sep)	(Apr～Jun)	（Jul～Sep）	2Q of FY2019	1Q of FY2020
Net sales	126.4	109.3	121.2	-4.1%	+10.9%
Cost of sales	82.3	77.8	78.9	-4.1%	+1.4%
	【to Net sales】	65.1%	71.2%	65.1%
Operating income	20.4	11.1	21.2	+4.0%	+91.8%
	【to Net sales】	16.2%	10.1%	17.5%
Ordinary income	25.0	13.1	25.1	+0.2%	+90.9%
	【to Net sales】	19.8%	12.0%	20.7%
Extraordinary	-2.0	-	-	-	-
income or loss
Net income	16.9	9.1	19.0	+12.5%	+109.2%
	【to Net sales】	13.4%	8.3%	15.7%
FX Rate			106.22
	Yen/1USD	107.35	107.62	-1.1%	-1.3%
	Yen/1EUR	119.34	118.48	124.11	+4.0%	+4.8%

※"Net income" means "Net income attributable to owners of	4	October 29, 2020
parent".

Quarterly Changes in Consolidated Sales and Profit/Loss

※"Net	October 29, 2020
parent".

Consolidated Sales by Division

(Billions of Yen)

180

160
140	126.4					125.5		121.8						121.2	10.9%
120									109.3
22.9					21.8		21.0					20.1	30.3%
100									15.4
18.7					17.2		16.9					21.1	14.8%
80									18.4
																47.4
60	51.5					54.0		50.0				40.6		16.7%
40
20	33.3					32.6				33.8				34.8			32.6		-6.5%
0
FY2019	FY2019			FY2019	FY2020		FY2020		Change from
	2Q		3Q			4Q	1Q		2Q	Previous Period
				FA			Robot		Robomachine			Service
Results for the 2nd Quarter (3 months) 〔Comparison with FY2020 1Q〕
・FA	→ Sales decreased in Japan, Europe and Korea. Sales increased in India.
	Sales remained strong in China.
・Robot	→ Sales for general industries were robust and sales for the automobile industry trended

toward recovery in the Americas. Sales increased in Europe. Sales remained strong in China. ・Robomachine → Sales of ROBODRILL in China increased. Sales of ROBOSHOT and ROBOCUT decreased. ・Service → Sales increased as compared with the first quarter effected by lockdowns and other factors.

2Q of FY2020

FA by Region

0.1

9.1 6.9

28% 21% 0.9

2.0

42%

13.6

Robot by Region

1.7 0.4 4.1

10.0

21%

11.3 24% 42% 19.9

Robomachine by Region

2.3 0.2 1.8 1.5

11%

				11%	2.4
61%
12.9
	Service by Region
1.5	0.2		※The consolidated
0.5
				28%	5.5	net sales does not
				include the service
5.4 27%			business in China,
		which is operated
				34%		by the equitymethod
				6.9		affiliates.
			Japan
			The Americas
			Europe
			China
			Asia(Excluding China)
			ROW

6	October 29, 2020

Consolidated Sales by Region

(Billions of Yen) 180

160

126.4

125.5

121.2

140

1.0

1.0	121.8	109.3	10.9%
1.0	1.0

120 19.0

100 18.3

80 23.7

15.6	18.3	1.0	14.6	1.2%
21.9	24.3	14.4
	37.0	10.7%
25.1	33.4
22.8

60

40

32.4

33.6		17.4	21.1	21.6%
31.1
21.7	29.2
	34.3%

20 32.0

0

FY2019

2Q

28.3
	24.3		21.4		18.3	-14.6%
FY2019		FY2019		FY2020		FY2020	Change from
3Q		4Q		1Q		2Q	Previous Period

Japan

The Americas

Europe

China

Asia(Excluding China)

ROW

Results for the 2nd Quarter (3 months) 〔Comparison with FY2020 1Q〕

・Japan

→ Sales of FA and Robomachine decreased.

・The Americas

→ Sales of Robot increased because sales for general industries were robust and sales for the automobile industry

trended toward recovery.

・Europe

→ Sales of Robot increased. Sales of FA decreased.

・China

→ Sales of ROBODRILL increased. Sales of FA and Robot remained strong.

・Asia (Excluding China) → Sales of FA increased in India and decreased in Korea.

7	October 29, 2020

Consolidated Orders by Division

(Billions of Yen) 180

160

140

120

100

80

123.4

22.9

17.2

118.5

21.7

16.2

126.5		126.5	16.7%
21.3	108.4	20.1	33.1%
17.2	15.1	24.9	51.1%
16.5

60 53.6

40

20 29.7

0

FY2019

2Q

46.5

34.1

FY2019

3Q

51.8 43.9 49.2 12.1%

36.3
	32.9		32.2	-2.2%
FY2019		FY2020		FY2020	Change from
4Q		1Q		2Q	Previous Period

FA

Robot

Robomachine

Service

Results for the 2nd Quarter (3 months) 〔Comparison with FY2020 1Q〕

・FA

→ Orders decreased in Japan and Europe. Orders increased in Korea, Taiwan and India. Orders remained strong in China.

・Robot

→ Orders for general industries were robust and orders for the automobile industry trended toward recovery in the Americas.

Orders increased in Europe. Orders remained strong in China. Orders decreased in Japan.

・Robomachine → Orders of ROBODRILL in China increased. Orders of ROBOSHOT and ROBOCUT increased.

・Service

→ Orders increased as compared with the first quarter effected by lockdowns and other factors.

8

October 29, 2020

Consolidated Orders by Region

(Billions of Yen) 180

160

140

123.4

1.0

118.5

1.2

126.5		126.5	16.7%
1.0	108.4	0.9

120 14.9

100 18.6

80 23.7

16.1

22.4

19.7	0.6	15.3	22.6%
24.6	12.5	41.7
35.5	17.7%

60

40

35.7

25.1

28.2

22.9	21.1	22.0%
17.3
35.7	29.4	21.2%
24.3

20 29.5

0

FY2019

2Q

25.5

FY2019

3Q

22.6
	18.3		18.0	-1.6%
FY2019		FY2020		FY2020	Change from
4Q		1Q		2Q	Previous Period

Japan

The Americas

Europe

China

Asia(Excluding China)

ROW

Results for the 2nd Quarter (3 months) 〔Comparison with FY2020 1Q〕

・Japan

→ Orders of FA and Robot decreased.

・The Americas

→ Orders of Robot increased because orders for general industries were robust and orders for the automobile industry

trended toward recovery.

・Europe

→ Orders of Robot increased. Orders of FA decreased.

・China

→ Orders of ROBODRILL increased. Orders of FA and Robot remained strong.

・Asia (Excluding China)

→ Orders of FA increased in Korea, Taiwan and India.

9

October 29, 2020

Capital Investment ・Depreciation and amortization・

Research and development expenses

	FY2019	FY2019	FY2020	Change from
(Billions of Yen)	1st Half	Full Year	1st Half	1st Half of
	(Apr～Sep)		(Apr～Sep)	FY2019
Capital	44.4	70.5	10.6	-33.8
Investment
Depreciation
and	22.2	45.9	21.7	-0.5
amortization
Research and
development	26.4	51.3	23.4	-3.0
expenses

10	October 29, 2020

Consolidated Financial Results Forecasts

		FY2020 Forecast	Change from	Change from
	FY2019
	Previous	New forecast	FY2019	Previous
		Forecast
(Billions of Yen)		forecast
Net sales	508.3	423.3	502.5	-1.1%	+18.7%
Cost of sales	326.1	299.8	330.3	+1.3%	+10.2%
【to Net sales】	64.2%	70.8%	65.7%
Operating income	88.3	38.5	85.4	-3.3%	+121.8%
【to Net sales】	17.4%	9.1%	17.0%
Ordinary income	102.8	47.7	96.3	-6.3%	+101.9%
【to Net sales】	20.2%	11.3%	19.2%
Extraordinary	-2.0	-	-	-	-
income or loss
Net income	73.4	34.5	71.8	-2.1%	+108.1%
【to Net sales】	14.4%	8.2%	14.3%
FX Rate			103.46
Yen/1USD	108.74	101.91	-4.9%	+1.5%
Yen/1EUR	120.82	115.87	120.65	-0.1%	+4.1%

FY2020 3Q～FY2020 4Q Assumed FX Rate

100Yen / 1USD 120Yen / 1EUR

※"Net income" means "Net income attributable to owners of	11	October 29, 2020
parent".

Establishment of DUCNET Co., Ltd.

FUJITSU, FANUC and NTT Communications Establish a Joint Venture

to Accelerate Digital Transformation in Manufacturing

FUJITSU Limited, FANUC CORPORATION, and NTT Communications Corporation will establish DUCNET Co., Ltd. a new company that will offer a cloud service to support digital transformation (DX) first in the machine tool industry and subsequently in the broader manufacturing industry, in November

(※) DUCNET Co., Ltd. is going to be established and start the business after clearance by the competent antitrust authorities.

12	October 29, 2020

Establishment of DUCNET Co., Ltd.

"DUCNET" will commence operations in November 2020, and is scheduled to start providing cloud services in April 2021.

Going forward, "DUCNET" will contribute to further strengthening the manufacturing capabilities of companies that use "Digital Utility Cloud" with the aim of building an ecosystem in which each participating company, including machine manufacturers, machine users, trading companies, and IT vendors, can be a service provider and a service user.

		[Company Information]
1.	Company Name	: DUCNET Co., Ltd
2.	Capital : 250 million yen (Shareholders: FUJITSU 40%, FANUC 30%, NTT Com 30%)
3.	Establishment	: Scheduled for November 2020
4.	Start of business	: Scheduled for November 2020

"FANUC's approach to this project"

• Brush up for the Performance of Service while using DUCNET for FANUC's own DX
• Trying to create a DX service for the machine tool industry and provide it through the ecosystem created by DUCNET.

13	October 29, 2020

Establishment of DUCNET Co., Ltd.

"Digital Utility Cloud Service" provided by DUCNET

1. DUC platform

Deploy services safely and securely in a space protected by high security

2） Trust SNS（ Communication tool ）

All SNS data can be managed and reused by users (know-how)

3） Storage service

Supports large-capacity data sharing outside the company and AI search (planned) for multi-item data

4） EC store

Supports digital content license management and subscription sales

Service to be provided by FANUC using "Digital Utility Cloud "

1） Remote maintenance tool

Supports machine tool failure diagnosis

2） AI search tool

Search for digital information such as manuals

3） Visual guidance

Visual manual creation tool

14	October 29, 2020