Fanuc : Financial Results for the year Ended March, 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.

Financial Results for the year

Ended March, 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	April 24, 2020

Consolidated Financial Results for FY 2019

	FY2018	FY2019	FY2019	Change from	Change from
(Billions of Yen)	Actual	Forecast	Actual	FY2018	Previous
				Forecast
Net sales	635.6	506.7	508.3	-20.0%	+0.3%
Cost of sales	369.8	332.2	326.1	-11.8%	-1.8%
【to Net sales】	58.2%	65.6%	64.2%
Operating income	163.3	80.6	88.3	-45.9%	+9.6%
【to Net sales】	25.7%	15.9%	17.4%
Ordinary income	183.5	91.9	102.8	-44.0%	+11.9%
【to Net sales】	28.9%	18.1%	20.2%
Extraordinary income	25.1	-2.0	-2.0	-	-
or loss
Net income	154.2	65.9	73.4	-52.4%	+11.3%
【to Net sales】	24.3%	13.0%	14.4%
FX Rate			108.74
Yen/1USD	110.91	106.50	-2.0%	+2.1%
Yen/1EUR	128.41	119.54	120.82	-5.9%	+1.1%

※"Net income" means "Net income attributable to shareholders	2	April 24, 2020
of parent company".

Change in Consolidated Sales and Profit/Loss

※"Net income" means "Net income attributable to shareholders	3	April 24, 2020
of parent company".

Consolidated Financial Results for the 4th Quarter (3 months) of FY 2019

	FY2018	FY2019	FY2019
	4Q	3Q	4Q	Change from	Change from
(Billions of Yen)	(Jan～Mar)	(Oct～Dec)	（Jan～Mar）	4Q of FY2018	3Q of FY2019
Net sales	139.5	125.5	121.8	-12.7%	-3.0%
Cost of sales	84.3	82.5	79.2	-6.1%	-4.1%
【to Net sales】	60.4%	65.8%	65.0%
Operating income	29.2	19.6	19.7	-32.4%	+0.7%
【to Net sales】	20.9%	15.6%	16.2%
Ordinary income	33.0	22.6	23.1	-29.8%	+2.2%
【to Net sales】	23.6%	18.0%	19.0%
Net income	25.4	16.3	16.8	-33.7%	+3.1%
【to Net sales】	18.2%	13.0%	13.8%
FX Rate			108.92
Yen/1USD	110.20	108.76	-1.2%	+0.1%
Yen/1EUR	125.15	120.32	120.11	-4.0%	-0.2%

※"Net income" means "Net income attributable to shareholders	4	April 24, 2020
of parent company".

Quarterly Changes in Consolidated Sales and Profit/Loss

※"Net income" means "Net income attributable to shareholders	5	April 24, 2020
of parent company".

Yearly Changes in Sales by Division and Region

* (Billions of Yen)	*	*	*
		(Billions of Yen)

700

635.6

700 635.6

600 91.9

		508.3
500	115.1
	87.6	17.2%
400		74.9	14.7%

600

500

400

4.3

109.9

120.9

508.3

3.9

74.4 14.6%

88.6 17.4%

300

217.5

202.5 39.8%

300

122.2

99.2 19.5%

200

100

211.1

						143.2	28.2%
									.3%
0										Composition
	FY2018			FY2019
								Ratio
		FA		Robot		Robomachine			Service

125.1 24.6%

100

0

149.7

117.1 23.0%

Composition

FY2018

FY2019 Ratio

		Japan		The Americas
		Europe		China
		Asia(Excluding China)		ROW

6	April 24, 2020

・FA ・Robot

Consolidated Sales by Division

*(Billions of Yen)															*
180
160	139.5
140					134.6		126.4
									125.5		121.8	-3.0%
120	23.3					21.9
					22.9				21.8
										21.0	-3.6%
100	21.5					22.1
					18.7				17.2		16.9
										-1.3%
80
50.4
60					47.1		51.5				54.0		50.0	-7.4%
40
44.3					43.5
20								33.3				32.6			33.8	3.8%
0
FY2018	FY2019			FY2019	FY2019		FY2019	Change
	4Q		1Q			2Q	3Q		4Q
					from
																Previous
				FA			Robot		Robomachine			Service
																				Period
Results for the 4th Quarter (3 months)
*																				*

→ Sales increased in Europe, South Korea and Taiwan. Sales in Japan decreased.

→ Sales decreased in the Americas as a reaction to the increase in sales for the automobile industry in the third quarter. Sales in Japan and Europe decreased. Sales increased in China.

・Robomachine → Sales in Japan decreased. Sales of ROBOSHOT decreased in China. Sales of ROBODRILL in China and Asia (Excluding China) increased.

4Q of FY2019

*		*
	FA by Region
	0.1
11.0	32%	10.2
30%
	24%	1.0
	8.2	3.4

Robot by Region 2.30.5 5.7

11.1 22% 11%

22% 39% 19.6

10.8

Robomachine by Region

3.7 0.1 3.2

22% 19%

27%	12% 2.0
19%
4.6		3.2
	Service by Region	※The consolidated
		1.4 0.2
0.4		net sales does not
				5.1	include the service
			24%	business in China,
5.4 26%		which is operated
				by the equitymethod
							affiliates.
			41%	8.5
	Japan				The Americas
	Europe				China
	Asia(Excluding China)			ROW

*	*
7	April 24, 2020

Consolidated Sales by Region

*

*

(Billions of Yen) 180

160	139.5	134.6
	0.9	126.4	125.5
140	0.9
23.7	1.0	1.0
120	21.5
	19.0	15.6
	21.7
100	24.1	18.3	21.9
80	28.3	27.6	23.7	25.1
60

121.8

1.0

18.3

24.3

22.8

-3.0%

17.6%

10.9%

-9.1%

40

29.0

28.0

32.4

33.6

31.1

-7.3%

20

35.9

32.5

32.0

28.3

24.3

-14.3%

0

Change

FY2018

FY2019

FY2019

FY2019

FY2019

from

4Q

1Q

2Q

3Q

4Q

Previous

Period

Japan

The Americas

Europe

China

Asia(Excluding China)

ROW

*

*

・Japan

→ Sales of FA, Robot and Robomachine decreased.

・The Americas

→ Sales of Robot decreased as a reaction to the increase in sales due to large-scale transactions for automotive industry

in the third quarter.

・Europe

→ Sales of Robot and Robomachine decreased.

・China

→ Sales of Robot increased. Sales of ROBODRILL increased for IT-related industries and other industries. Sales of ROBOSHOT

decreased.

・Asia (Excluding China) → Sales of FA increased in South Korea and Taiwan. Sales of ROBODRILL increased in other Asian countries.

8	April 24, 2020

Consolidated Orders by Division

*(Billions of Yen) 180

160

140.7

140

22.1

120

20.1

100

80

55.3

60

40

20 43.2

0

FY2018

4Q

137.1
22.1	123.4	118.5
20.9	22.9	21.7
17.2
	16.2
56.1	53.6	46.5

38.0

34.1

29.7

FY2019

FY2019

FY2019

1Q

2Q

3Q

FA

Robot

Robomachine

Service

126.5

21.3

17.2

51.8

36.3

FY2019

4Q

*

6.8%

-1.9%

6.2%

11.3%

6.5%

Change

from

Previous

Period

*

・FA	→ Orders increased in South Korea, Taiwan and India because inventory adjustments come full circle.
	Orders decreased in Japan.
・Robot	→ Orders especially for the automobile industry increased in the Americas. Orders increased in China.
	Orders decreased in Japan and Europe.

・Robomachine → Orders of ROBOSHOT increased in China and Taiwan, etc. Orders of ROBODRILL remained unchanged. Orders of ROBOCUT decreased.

9	April 24, 2020

Consolidated Orders by Region

*(Billions of Yen)	*
180

160 140.7

140 0.8

137.1

0.9 123.4

118.5

126.5

1.0

6.8%

21.2

20.2 1.0

1.2

120

100

23.1

22.1

14.9

18.6

16.1

22.4

19.7

24.6

22.7%

9.9%

80 28.6

60

32.7

40

20 34.3

0

FY2018

4Q

27.6 23.7

36.1 35.7

30.2 29.5

FY2019	FY2019
1Q	2Q

25.1

28.2

25.5

FY2019

3Q

22.9

35.7

22.6

FY2019

4Q

-8.8%

26.7%

-11.4%

Change

from

Japan The Americas Europe China Asia(Excluding China) ROW

Previous

Period

*

・Japan	→ Orders of FA, Robot and Robomachine decreased.
・The Americas	→ Orders of Robot especially for the automobile industry increased.
・Europe	→ Orders of Robot decreased. Orders of FA increased.
・China	→ Orders of Robot and Robomachine increased.

・Asia (Excluding China) → Orders of FA increased in South Korea, Taiwan and India because inventory adjustments come full circle. Orders of ROBOSHOT increased in Taiwan.

10	April 24, 2020

Capital Investment ・Depreciation and amortization・

Research and development expenses

	FY2018		FY2019	Change from
(Billions of Yen)	Full Year		Full Year	FY2018
Capital	133.1	70.5	-62.6
Investment
Depreciation	39.7	45.9	6.2
and
amortization
Research and	56.2	51.3	-4.9
development
expenses

11	April 24, 2020

Consolidated Financial Forecast

			FY2019			FY2020	Change	Change
					from
							from
		1st Half	2st Half		Full Year	1st Half	Previous
			FY2018
(Billions of Yen)	Results	Results		Actual	Forecast	Period
Net Sales	261.0	247.3		508.3	197.9	-24.2%	-20.0%
Cost of sales	164.4	161.7		326.1	134.5	-18.2%	-16.8%
【to Net sales】	63.0%	65.4%		64.2%	68.0%
Operating income	49.0	39.3		88.3	18.9	-61.4%	-52.0%
【to Net sales】	18.8%	15.9%		17.4%	9.6%
Ordinary income	57.1	45.7		102.8	23.1	-59.5%	-49.5%
【to Net sales】	21.9%	18.5%		20.2%	11.7%
Extraordinary income	-2.0	-		-2.0	-	-	-
or loss
Net Income	40.2	33.2		73.4	16.4	-59.2%	-50.6%
【to Net sales】	15.4%	13.4%		14.4%	8.3%
FX Rate
Yen/1USD	108.63	108.84		108.74	100.00	-7.9%	-8.1%
Yen/1EUR	121.42	120.22		120.82	115.00	-5.3%	-4.3%
※"Net income" means "Net income attributable to shareholders	12		April 24, 2020
	of parent company".

Annual Dividend

Dividends

Payout Ratio

126.1%

（incl. special

dividend）

1,003.11JPY

636.62JPY				525.90
490.07JPY	395.18JPY	563.20JPY	JPY
60%	60%	60%	60%	60%

Payout

Ratio

30%

170.06JPY

477.21

JPY

78.6%

（incl. special

dividend）

60%

300.00JPY

Special Dividend

Ordinary	70.86JPY
Dividend	229.14
JPY

13	April 24, 2020

CRX

New Collaborative Robot - Safe, Reliable and Easy to Use

Safe

• Safely stops with a light contact with operators

Reliability

• FANUC's renown reliability supported by years of experience

Easy to Use

 Simple installation without lifting equipment  Intuitive operations and simple teaching  Easy connection to various grippers

CRX-10iACRX-10iA/L

• High interest and inquiries have been received all over the world since the first exhibition at iREX in December, 2019
• The first ex-factory is scheduled in June, 2020

14	April 24, 2020

Digital Utility Cloud

FANUC CORPORATION, Fujitsu Limited, and NTT Communications Corporation announced together an agreement to jointly develop a new service to achieve their vision of a "Digital Utility Cloud." (2019,Sep)

FIELD System （*1）

The "Digital Utility Cloud" concept aims for the acceleration of digital innovation by streamlining internal operations and improving customer service, which are often duplicated throughout the machine tool industry. To achieve this goal, the three companies will work to develop cloud services that can be adopted by any company and ultimately seek to establish the solution as a new de facto standard in the industry.

（*1） FIELD system：FANUC Intelligent Edge Link & Drive system.

15	April 24, 2020

Digital Utility Cloud

Drawing on its expertise in the machine tool industry, FANUC will outline the functions required for the Digital Utility Cloud. FANUC will additionally be in charge of functions required for the edge layer, taking advantage of experience gained through the development of its "FIELD system", which is a solution used for edge layer.

Fujitsu will manage the application layer, leveraging knowledge gained through the development of its "FUJITSU Manufacturing Industry Solution COLMINA" suite of digital manufacturing solutions, which consolidates the various manufacturing technologies and tools that the company has developed to date in a single platform.

NTT Com will oversee the ICT infrastructure and security functions required to realize secure data utilization by relying on expertise gained through the provision network, cloud, and security services and solutions.

Future Plans

The three companies will additionally promote "Digital Utility Cloud" with a view toward establishing a joint venture in the future.

16	April 24, 2020