INTEGRATED REPORT

2022

Year ended March 31

INTEGRATED REPORT 2022

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INTEGRATED REPORT

2022

Contents
ProfileContents･････････････････････････････････････････････ ･1
Editorial･Policy････････････････････････････････････････ ･2
Basic･Principles/Vision/The･Three･Philosophies･･･････ ･3
FANUC･Code･of･Conduct･････････････････････････････ ･4
Supporting･Factory･Automation･ ･････････････････････ ･5
FANUC’s･Overview･･････････････････････････････････････････････7

Value Creation

Top･Message･････････････････････････････････････････ ･9Management･Policies・Management･Strategy････････ ･17
Track･Record･of･Value･Creation･･････････････････････ ･19
Value･Creation･Process･･････････････････････････････ ･21
Materiality･･･････････････････････････････････････････ ･23

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FANUC CORPORATION

Sustainability

Directors････････････････････････････････････････････ ･25
Enhancing･Corporate･Governance･･･････････････････ ･27
Three-way･Conversation･between･Outside･Directors･･････ ･30
Dialogue･with･Stakeholders･･････････････････････････ ･33
FANUC’s･Approach･to･Sustainability･････････････････ ･34
Targets･and･Initiatives･to･Achieve･Carbon･Neutrality･ ･････ ･38
Initiatives･for･TCFD･Recommendations･･･････････････ ･39
Enhancing･Employee･Engagement･･･････････････････ ･42
Special･Feature･･Female･Leaders･Discuss･the･Future･of･FANUC･･････ ･51

Data Section

Financial･and･Non-financial･Highlights･ ･･････････････ ･53
Business･Overview･and･Financial･Summary･･････････ ･55
Consolidated･financial･statements･･･････････････････ ･58
Corporate･Profile････････････････････････････････････ ･62
External･Recognitions････････････････････････････････ ･64

Editorial Policy
Publication of Integrated Report 2022

Forward-looking statements

FANUC has published this Integrated Report in order to share our value creation efforts with stakeholders.
Under the basic principles of “Strict Preciseness” and “Transparency,”
FANUC aims to achieve both social and economic value at the sametime, and to achieve sustainable growth.

Statements contained in this report that relate to the future operating
activities, business performance, events or conditions of FANUC are
forward-looking statements. Forward-looking statements are based on
judgments made by FANUC’s management based on information available at the time of publishing this report and are subject to significant
assumptions. As such, these forward-looking statements are subject tovarious risks and uncertainties and actual business results may vary
substantially from the forecasts expressed or implied in forward-looking statements. Accordingly, you are cautioned not to place undue reliance on forward-looking statements. FANUC disclaims any obligation
to revise forward-looking statements in light of new information, future
events or other findings.

Scope of Report and Reference Guidelines
Reporting Period From April 2021 to March 2022
Some information may refer to organizational structures and policies at the time of publication if those
have been recently updated.
Organizations

FANUC CORPORATION and its consolidated subsidiaries

Referential Guidelines We have referenced Integrated Reporting <IR> of theInternational Integrated Reporting Council (IIRC), as
well as the Guidance for Collaborative Value Creation issued by Ministry of Economy, Trade and Industry (METI) Government of Japan.

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Basic Principles“Genmitsu”(Strict Preciseness)“Tomei”(Transparency)“Strict Preciseness” and “Transparency”
are the basic principles of FANUC.
Strict PrecisenessA company will last forever and besound with strict preciseness.
Transparency
The corruption of an organization anddownfall of a company start from a lackof transparency.

VisionFANUC provides indispensable values throughout theworld in the field of factory automation through unceasingly creating technological innovations, and will continue to be a company that is trusted by all stakeholders.

The Three Philosophies
The three businesses of FA, ROBOT and
ROBOMACHINE are unified with SERVICE as“one FANUC”, to provide innovation and reassurance to manufacturing sites around theworld.

Reliable
Predictable
Easy to Repair

FANUC aims to Maximizing Uptime in all
factories all over the world.

Conforming to the spirit of “Service First”,
FANUC provides lifetime maintenance of its
products for as long as they are used by customers, through more than 260 service locations supporting more than 100 countries
throughout the world.

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FANUC CORPORATIONProfile

Value Creation

Sustainability

Data Section

FANUC Code of Conduct

Officers and employees of FANUC shall practice thefollowing with “Strict Preciseness” and “Transparency,”
which are the basic principles of FANUC.

❶ Upholding of a high standard of ethics❷ Compliance with laws and regulations, andinternal rules❸ Respect for human rights❹ Contribution to the benefit of FANUC
Prohibited Acts which require Particular Attention
1. To discriminate based on gender, age, nationality, ethnicity, race,
place of origin, religion, beliefs, disability, sexual orientation, sexual
identity, etc.
2. To engage in an act that creates, or appears to create, a conflict of interest between his or her personal interest and the FANUC group company’s interest, including dealing with the FANUC group company forthe benefit of him/herself or any particular individual or organization.
3. To engage in an act that violates antitrust laws, including, unjust or
unfair transactions.
4. To give money, gifts, entertainment or any other economic benefit topublic officials or persons in similar positions in connection with theirduties.
5. To unlawfully acquire, use or disclose intellectual property, personal
information, etc., of any company or individual.
6. To conduct insider trading of stocks based on the material facts of
the FANUC group or its business partners, etc.
7. To use forced labor or engage in an act that appears to use forcedlabor.
8. To develop or spread technology that is harmful to the environment.
9. To provide information that differs from the truth or misleads customers, business partners, etc.
10. To consent to an unjust request by anti-social forces, such as organized crime groups, or conduct a transaction with such entities or
any related company or individual.
* FANUC will establish a contact point for whistle-blowing through which, in principle,
all officers and employees of the FANUC group, including subsidiaries and sub-subsidiaries, can whistleblow to the headquarters of FANUC CORPORATION.
* This Code of Conduct applies to all officers and employees of the FANUC group, including subsidiaries and sub-subsidiaries (including contract workers).

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Supporting Factory Automation
FANUC Products in Various Fields
You can find FANUC technologies everywhere in our daily life. Automotive, Aerospace, Construction, Energy, Food and so on. FANUC products are utilized in various fields.

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FANUC CORPORATION

Parts machining with ROBODRILL

Handling

Welding

Plastic molding with ROBOSHOTProfile

Value Creation

Sustainability

Data Section

Installed in Machine Tools Worldwide

Inside of machine tool (image)

Machine tool appearance (image)

Since FANUC successfully developed the first commercial NC and Servo as a private company in Japan,
has devoted itself to focusing on factory automation. Having three businesses of FA business, , which encompasses basic technologies, consisting of NCs (numerical controls), servos and lasers, and ROBOT
business to which such basic technologies are applied and ROBOMACHINE busniess, FANUC contributes
to the development of manufacturing industries in Japan and overseas.
FANUC’s CNCs, servo motors, servo amplifiers, are the components of machine tools. We keep research and development so that we can provide efficient and safety machining. FANUC’s FA products
are installed in machine tools all over the world, and is active in various fields.

FANUC Products Indispensable for ManufacturingNow, take a look at automotive production line.
Machine tools and ROBODILLs are for parts machining. ROBOTs for assembly, transport, welding.
ROBOSHOTs for plastic injection molding. ROBOCUTs for cutting die and mold. Various FANUC
products are indispensable for manufacturing sites.
Heavy Payload Robot
ROBOCUT
Welding Robot
CO2Laser
Machine Tools

Collaborative
Robot

Handling Robot
ROBODRILLSCARA Robot
IoT

ROBOSHOT

Support for Factory Automation
FANUC provides various products to support further factory automation.
We aim to improve productivity and factories that never stop by connecting all production
equipments on the manufacturing site and collecting those information. FANUC celebrated its 50th
anniversary this year. We keen to provide indispensable values throughout the world throughincessant technological innovations in the field of factory automation.

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FANUC’s Overview

FA Basic products
FANUC provides basic productsthat enable factory automation,such as CNCs, which control theoperation of machine tools withnumerical information, servos,
which control speed and position, and laser oscillators, which
are used for welding and cutting.
In developing these products, we
aim to improve productivity in
our customers’ factories with energy saving, enhanced safety,
and higher performance.

ROBOT Applied products
Various tasks can be automated by applying the basic
technologies of CNCs and servos freely controlling robot arms. We contribute to improving work environments by releasing workers from dangerous, dirty, anddifficult jobs and improvement and stabilization of product quality through long-term stable continuous production. In addition, we contribute to the maintenance andgrowth of factories around the world by compensating
the shrinking labor pool, such as by developing robots
that can work in collaboration with humans.

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FANUC CORPORATIONROBOMACHINE Applied products
FANUC is developing compact machining centers, electric injection molding machines, wire electrical-dischargemachines that apply the basic technologies of CNCs andservos. We contribute to improving the productivity of
our customers by pursuing superior machining performance, operating rate, and ease of use.

Profile

Value Creation

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Data Section

Global Service

FANUC America

FANUC Europe

BEIJING-FANUCSHANGHAI-FANUC Robotics
SHANGHAI-FANUC ROBOMACHINETAIWAN FANUC

Head Oﬃce
Branch Oﬃce
Satellite

KOREA FANUC

FANUC INDIA

FANUC THAIFANUC INDONESIAFANUC SOUTH AFRICA

Sales Composition Ratio (Year ended March 31, 2022)
Sales by Business

Sales by Region(Billions of yen)
FA
226.2
30.9％

Service
93.7
12.8％

Asia
ex. China
117.9
16.1％

733.0

China
228.1
31.1％
ROBOMACHINE
144.6
19.7％

ROBOT
268.5
36.6％

(Billions of yen)
Japan
111.1
15.2％

Other
5.4
0.7％

733.0

Americas
149.7
20.4％

Europe120.8
16.5％

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Value Creation

Top Message

Supply Products Responsiblyas a Company that Supports
Manufacturing Sites around
the World
Kenji Yamaguchi

President and CEO

At FANUC, we aim for growth from a mid-to-long term perspective while working to respond toincreased demand for capital investment and strengthen our production system to fulfill our supply
responsibilities. Here, I would like to explain our current business environment and future growthstrategy, as well as discuss our ESG initiatives aimed at increasing corporate value.

Can you tell us how you feel as FANUC
celebrates its 50th anniversary?
Thanks to everyone’s support, FANUC was able tocelebrate the 50th anniversary since its founding in
1972. I would like to once again express my gratitude
to all of our stakeholders who have supported our
growth and development over the years.
FANUC spun off from Fujitsu Limited (hereinafter
Fujitsu) in 1972, and becoming an independentcompany came to be considered the starting pointof its foundation. FANUC cherishes “foundation” aswell as the “start of business.” The actual start ofbusiness can be traced back by 67 years to 1955,
when the late Dr. Seiuemon Inaba was appointed
leader of the project team for controls within Fujitsu.
The business was in the red at first, but with the9

FANUC CORPORATION

su p p o r t o f ma ny custo m e rs , N C s (N u m e ri c alControls) became a viable business.
If we set the 100th anniversary since the true
beginning of business as a milestone, this year is an
important point that has reached two-thirds of thatmilestone. The road to our 100th anniversary will
cer tainly not be smooth. We will continue toconsider and pursue what we can do to ensure that
FANUC remains a company that is needed by theworld and is trusted by all stakeholders.
C a n y o u t e l l u s a b o u t FA N U C ’s b a s i cprinciples and vision?
The “Strict Preciseness” and “Transparency” that
we uphold as our basic principles are based on the
beliefs that “a company will last forever and beProfile“Strict Preciseness”
Calligraphy by Yukei Teshima(1901‒1987), one of the threegreat
calligraphers from the Showa
Periodsound with strict preciseness and that the corruptionof an organization and downfall of a company startfrom a lack of transparency.” The late Dr. Seiuemon
Inaba emphasized these basic principles in his many
years of management as a way to demonstrate thebasic attitude and mindset of doing business.
I received direct guidance from him for about 10
years and spent time contemplating his beliefs andgoals. I have summarized them and clarified FANUC’s
vision with the following words: “FANUC provides
indispensable values throughout the world in thefield of factory automation through unceasingly
creating technological innovations, and will continue
to be a company that is trusted by all stakeholders.”
By pursuing technological innovations in the specificfield of factory automation, we have achieved topclass competitiveness for each product. As an entitythat supports manufacturing sites around the world,
we are aware that we have a great responsibility interms of technology and supply, and we contributeto society by providing that value.
What have you viewed as important in yourcorporate activities thus far?

I think that the biggest thing is “reliability.” There
are two aspects to this: the reliability of our products
and the reliability of the Company. We are awarethat it is important to always maintain both of theseand build long-term relationships with our customers.
The products provided by FANUC are specialized forfac to r y automation, and the reliabilit y of our
products is directly linked to the profits of ourcustomers’ factories. For this reason, in productdevelopment, we focus on maximizing uptime in ourcusto m e rs’ fa c to ri es a n d wo rk b a s e d o n t h e

Value Creation

Sustainability

Data Section“There is a history of technology, but for engineers there is nopast. There is only creation.”T h e s e w o rd s o f D r. I n a b a s p e l l o u t FA N U C ’s s t a n ce o ntechnological development.

philosophy of “Reliable, Predictable, Easy to Repair.”
It is important that a product is reliable and does notbreak, but nothing is absolutely indestructible. Therefore,
if a product can warn us before it breaks, it becomeseasier to schedule a replacement, and if the product iseasy to replace, then downtime can be minimized.
It is normal for customers to continue using FANUC
products for 10 years, and some have even been using
them for over 40 years. Moreover, as there are manycustomers who install not just one, but up to 100 units at
once, we always keep the reliability and failure
predictability of products in mind when developing them.
Furthermore, in the last few years, we have been
focusing on the ease of use of our products, and weare striving to develop products that improve ourcustomers’ work efficiency. As a result of these efforts,
we are now receiving high praise from our customers
for the reliability and ease of use of our products.
At the same time, we have been promoting initiatives
under the themes of “Service First” and “lifetime
maintenance” in order to enhance our maintenanceservices. Regarding “Service First,” we have set up
more than 260 service locations around the world
and provide high-level global standard maintenanceservices to customers in more than 100 countries. In
a d d i t i o n , “ l i fe t i m e m a i n te n a n ce” m e a n s t h a tmaintenance services will continue to be provided aslong as customers use FANUC products.
It is very difficult to maintain and continue “lifetime
maintenance.” If the production of electric andelectronic parts used in a product ends, it becomes
necessary to stock a huge number and variety of parts.
Moreover, if the stock runs out, we may have to design
and manufacture new units using parts available at thetime. Although it is a difficult initiative, our corporate
stance to put it into practice creates a strong
relationship of trust with customers, resulting in
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Basic technologies of CNC and Servo are applied to Robots

repeated product installations and new purchases.
I think it is safe to say that the initiatives discussed
above are not easy. The fact that we have continued
them for many years and intend to continue themgoing forward has led our customers to trust FANUC.

Hino parts center (left)

FA is delivered as a unit to machine tool builders, andthe end user installs the machine tool that incorporates
it, whereas ROBOTs and ROBOMACHINEs are directly
installed as the end user’s production equipment. 80%
to 90% of installation locations are overseas, andalthough a high proportion of installations are in theautomobile-related industry, installations in nonautomobile-related “general industries,” such as
construction machinery, IT, food, pharmaceuticals, andcosmetics are increasing, especially for ROBOTs.
Recently, the need for ROBOTs is increasing in thelogistics industry as well.
A major characteristic of our production is that
almost all products are produced in domesticf a c to r i e s . B y c e n t r a l i z i n g t h e p ro d u c t i o n o fstandardized products in Japan, we are able tomaintain quality and achieve highly efficient andautomated production lines.
As mentioned above, the high reliability and ease of use

Can you explain the characteristics of yourbusiness model and your stance on businessdevelopment?
FANUC develops, manufactures and sells “FA(CN C systems),”co nsisting of CN C s and ser vo
m o to rs a s b a si c p ro d u c t s , a n d R O B OTs a n d
ROBOM ACHINEs (compac t machining centers,
electric injection molding machines, wire electricaldischarge machines). By providing these products,
we have positioned “factory automation” as our
specialty, and we are developing business thatspecializes in this.
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FANUC CORPORATIONThe collaborative robot working with people at a bakery

Profile

Value Creation

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Data Section

Production line in the pharmaceutical industry (image)of our products, as well as the provision of “Service
First” and “lifetime maintenance,” has led to the supportof many customers for many years, and we have built aposition that cannot be imitated by other companies.
In terms of profitability, we focus on securing profits
at the design stage. We have been profitable due to
steady efforts such as striving to standardize, share,
and modularize as much as possible, as well as create
designs that use cheaper parts and designs that takeefficiency through automated production into account.
We are always aware of continuous technologicali n n ovati o n s , a n d we s t ri ve to i m p rove o u rtechnological capabilities not for the self-satisfactionof engineers, but in order to effectively sell products.
As for the stance on business development, we arein the capital goods, therefore we are subject to theeffects of economic fluctuations and changes incompanies’ interest in capital investment. It is
inevitable that the demand for our products will
shrink to some extent as the economy deteriorates,
and in our business ac tivities , we need fiscal
discipline based on this risk. In fact, in response to
the recent U. S. - China trade dispute and the
COVID-19 pandemic, net sales declined more than
expected, therefore we reduced investment inproduction equipment. However, even if investment
is resumed af ter being reduced, it may not be
possible to catch up with the trends in capital
investment, therefore it is necessary to always keep
an eye on mid-to-long term trends.
In the 2010s, there was a very large demand for
ROBODRILLs in some IT industries, and we were able
to capture high demand when it came every few
years. However, since it is difficult to maintain thesame level of demand for a long time, we did notthink that we would be able to meet the demand for
ROBOTs and FA, which was expected to increase in
the future, with a production system that specializes
in ROBODRILLs. Thus, we decided to increase theproduction capacity of ROBOTs and CNCs while
reducing ROBODRILL production capacity. Since ourexisting factories were not enough for this, we built alarge -scale production building, and as a BCP(business continuity plan) measure in preparation for
natural disasters such as earthquakes and heavy

snow, we built the Mibu Factory in Tochigi Prefecture
as the second CNC production site. Moreover, web uilt a syste m to a sse m b le ro b ot s in t h e
Headquarters area and the Tsukuba area. In this way,
we have made investments to establish multiple
production sites and to increase production capacity
over the past few years, and these investments are
now bearing fruit.
By focusing our business on the field of “factory
automation,” which is expected to grow significantlyin the future, FANUC will do its utmost to maintainand further enhance its world-class competitivenessin this field. If we apply the same robot technologies,
it may be possible to expand the range of applicationsuch as with service robots, but there are probably
other manufacturers that are more proficient in thesefields than us. The main reason why we specialize in“factory automation” is that we can make use of ourstrengths, including our familiarity with factory sites.

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The collaborative robot CRX series line-up

What are FANUC’s current important topics?

The Japan Machine Tool Builders’ Association,
chaired by Dr. Yoshiharu Inaba, the Chairman of
FANUC, positions the following three issues asimportant topics for the manufacturing industry going
forward: “Green” to support carbon neutrality, “Digital”
to realize automated production systems by using IoT,
AI, etc., and “Resilience” to strengthen the supply
chain. Based on the same recognition, we arepromoting initiatives that are in line with these topics.
Regarding “Green,” FANUC products that use electricmotors as the basis of power source are supportingcu s to m e rs a s t h e ra t i o o f re n ew a b l e e n e rg y
increases. We believe that contributing to therealization of carbon neutrality by striving to further
improve energy efficiency, such as by improving theelements and controls used in motors and reducing
the weight of ROBOTs and ROBOMACHINEs, willlead to significant growth opportunities.
When it comes to “Digital,” the phrase “from tangibles
to intangibles” is often used, but FANUC emphasizes theidea of adding the value of intangibles while enhancing
the value of tangibles. As part of this initiative, we will
promote the development of new products andfunctions that are conscious of digital twins. In addition,
we will work to solve problems at production sites
through digital transformation, such as with the IoT
platform for factories, “FIELD system.” Digital twins
cannot be created by digital technology alone, they can
13

FANUC CORPORATION

only function when there is excellent real technology as
well. We intend to leverage the strengths of both realand digital technologies to create new value.
Regarding “Resilience,” we place the greatest emphasison maintaining supply and avoiding production
stoppages in the supply chain. Over the past few years,
FANUC has established multiple production sites for
CNCs and ROBOTs, and steadily implemented measures
such as increasing the inventory of important parts andsourcing from multiple suppliers. Concerning the recent
shortage in parts, inventory and procurement measures
had some effects, but the situation was more strained
than expected, and drastic reviews were required. As thedifficult procurement environment continues, we areworking together, from research and development tofactories and purchasing, to take all possible measures,
including negotiating delivery dates, implementing designchanges, and securing distribution stocks. In addition tosoaring material and energy costs and continuing highlogistics costs, it is difficult to predict the shortage ofsemiconductors in the future, but we assume that thedifficult situation will continue for the time being.
We will continue to improve our resilience, including
quality first initiatives, information security, and compliance.
What opportunities do you see for future
growth?

Currently, the demand for robots is rising rapidly
all over the world. In order to respond to this,FANUC is considering building a new robot factory

Profile

Robot programmingwith icons is available
on a tablet TP.

at the Tsukuba Factory, while increasing production
capacity by expanding the equipment within theexisting factory. As the demand for robots increases,
so will the demand for the controllers, motors, andamplifiers required for them. Accordingly, we arestrengthening the production system at the Mibu
Fac tor y, but the ser vo motor fac tor y and themolding factory within Mibu Factory are close tobeing full with manufacturing equipment, so we areconsidering building a new factory here as well.
In ad dition, as a new trend in b oth the
manufacturing industry and the logistics industry,
the need for efficiency is increasing due to labors h o r t a g e s a n d i n c re a s e d l o g i s t i c s , a n d t h e
introduction of robots for picking work and others
is expanding. FANUC will firmly capture this demanda n d f u r t h e r ex p a n d g row t h o p p o r t u niti es .
In the automobile-related industry, the electrificationof vehicles is progressing rapidly as climate change
countermeasures continue to spread. Some people
think that the shift away from internal combustion
engines will lead to a decrease in demand formachine tools, but since the realization of carbon
n eu t ralit y re q uires a l a rge a m o u nt of c a pital
investment, there will likely be ample potential fori n c re a s e d d e m a n d . Co n ce rn i n g R O B OTs , t h edemand for battery manufacturing is increasing,
and we can also expect demand for the
manufacturing of inverters and motors to increase
going forward. It can be said that the electrificationof vehicles presents a big opportunity for FANUC.
The welded structure around the body is almost thesame for both internal combustion engine and electricvehicles, therefore the demand for robots in thisValue Creation

Sustainability

Data Section

regard remains unchanged. However, the assembly
work around the powertrain, including the engine, isdifficult, and so far there has not been much progresswith robotization. Electrification simplifies the
structure of automobiles, and the use of robots forthe assembly of parts such as batteries, inverters, andmotors will probably become more common incomparison to conventional drive systems .
In recent years, there has been a growing movementof maintaining stability in product supply throughdispersed production while limiting investments, aswell as of securing safet y for op erators byredesigning p ro duc tio n lines to avoid p e ople
working close together in order to prevent infection.
Reacting to such trends, FANUC has focused on
introducing “collaborative robots” that work incollaboration with people at production lines.
Collaborative robots facilitate the establishment of
low-cost automation systems and enable flexibility
in production sites without requiring major layoutchanges. Collaborative robots still do not accountfor a large percentage of ROBOT net sales, but their
growth rate far exceeds that of conventional robots,and we are actively working to increase production
c a p a c i t y. FA N U C ’s c o l l a b o r a t i v e ro b o t s a reoutstanding in terms of ease of use, for instancethey eliminate the need for programming in a
special robot language, and they are highly rated bycustomers for their reliability and maintenanceservices. We expect that this product will drive
growth for FANUC going forward.
Can you explain the business environmentand growth targets?
Looking back at the business environment in
FY2021, capital investment in the entire manufacturingsector, which had been declining due to the impact of
COVID-19, recovered and became active. As a result,
FANUC’s order intake reached a record high in Q4.
On the other hand, the supply of semiconductors andother electronic components was tight across global
supply chains, and the impact on production activities
was prolonged due to factors such as soaring raw
material costs and continuing high logistics costs. As I
mentioned earlier when discussing the important topic
of “Resilience,” we strove to continuously supply
products and service activities to customers, andregarding the sho r tage of par t s such as
semiconductors, we took all possible measures,
including the adoption of alternative products anddesigns changes, and put in every effort to minimize
INTEGRATED REPORT 2022

14

Value Creation

impact. In addition, even in this difficult situation, we

the SBT (Science Based Targets) initiative. We will promote

developing new products and functions with anawareness of Green and Digital, and increasing the
production capacity of our factories. As a result, in
FY2021, net sales reached a record high of 733.0 billion
yen due to significant sales growth in all divisions.
Typically, FANUC does not disclose mid-to-long term
performance targets because we aim to be a company
that contributes to society by maintaining appropriate
profits and a strong corporate structure withoutobsessing over the expansion of the scale of sales.
One of the most important indicators for us to beatthe competition, understand the market evaluation of
our products, and aim to create greater social value, ismarket share. Many of our products have world-classcompetitiveness in their respective categories. Market
share is an indicator of competitiveness, and we place
great importance on increasing market share evenwhen we introduce new products to the market. Of
course, it is also important that we do not place toomuch emphasis on market share and focus solely on
expanding sales, neglecting appropriate profits.

factories, and further promote the installation of solar
panels at the Company and energy saving initiatives atfactories and other facilities. At the same time, we arepositioning the improvement of energy saving performanceof products as the most important issue in productdevelopment in order to reduce Scope 3 emissions.
As the movement toward decarbonized societies
spreads worldwide, FANUC, which is expanding its
business globally, believes that responding to climatechange is a social responsibility that companies should
fulfill and that it is directly linked to strengthening thecompetitiveness of products, and we view it as an
essential initiative for business growth.
All FANUC products are driven by electric motors, so
increasing the ratio of renewable energy in their use willlead to a reduction in GHG emissions for our customers.
However, in addition to this, we must also make efforts
to further improve the energy saving performance of the
products themselves. For example, motors andpromoted initiatives for future development, such as

Can you tell us about your thoughts andinitiatives regarding ESG?
Regarding ESG, we are actively working on
environment, social, and governance themes, as they
contribute to improving corporate value. Over the past
few years, FANUC has expanded its ESG-related
promotion framework and strengthened its initiatives.
Regarding the environment theme, FANUC expressed its
support for the TCFD (Task Force on Climate-related
Financial Disclosures) recommendations in December
2021 and are disclosing information in line with theserecommendations. We have set targets to achieve carbon
neutrality by 2050 and reduce GHG (greenhouse gas)emissions from our business activities by 4 2% by 2 0 3 0(compared to 2020). The 2030 target has been certified by

The panoramic view of research & development division. We also work to
improve energy efficiency.

15

FANUC CORPORATION

reductions in Scope 1 and Scope 2 emissions at our

amplifiers can be made more energy efficient byimproving the elements and controls. For ROBOTs andROBOMACHINEs, we could immediately turn off thepower when they stop, and, when multiple robots are
moving, we could optimize their movements tomaximize energy efficiency. While aiming to be the bestin the industry in these areas, we will also contribute to
the promotion of carbon neutrality in society.
Regarding the social theme, we recognize theimportance of human capital and are focusing on work
style reforms and human resource development.
In terms of work style reforms, we have been working to

reduce overtime work and encourage employees totake annual vacations over the past few years. However,
due to the expansion of our business, it is naturally
difficult to absorb the increase in working hours just by
improving work efficiency, therefore we are also actively
recruiting new graduates and experienced personnels.
As for human resource development, we continuously
work to enhance education and training based on ourbelief that people are the most important factor for
FANUC’s growth. In order to improve management andleadership, we have established division head training,department head training, and workplace management
training for all section heads, and we have also enhanced
the content of the conventional training for new executive
employees. We have also introduced young employee
training for employees who have been with the Company
for three to seven years and team leader training to
improve management capabilities at manufacturing sites.
Alongside these initiatives, we intend to put even more
effort into enhanced fulfilling workplace.
I feel that the theme of governance has many aspects
that relate to FANUC’s basic principles of “Strict
Preciseness” and “Transparency.” We are working toProfile

improve governance, centered on the creation ofeffective systems and the establishment of regulations,and in June 2021, we transitioned to a company with an
Audit and Supervisory Committee. As a result, the Boardof Directors has introduced a system in which former
Audit & Supervisory Board Members have voting rights
and the number of internal directors has been reduced
to make Outside Directors the majority, improving
effectiveness. The appointment of female directors andnon-Japanese directors has increased diversity andgenerated lively discussions. Going forward, besides theBoard of Directors, we plan to promote the delegationof authority to the meeting of Managing Officers and the
responsible persons as well, so that the Board of
Directors may focus on discussions from a broader
perspective. Moreover, based on the skills matrix, we
aim to further diversify the Board of Directors and createa system that facilitates more active discussions that
contribute to the improvement of mid-to-long term
corporate value.
FANUC’s evaluations from external institutions regarding
ESG have improved over the past few years, but we areaware that there is still room for improvement. There aretimes when further improvements are needed in our

Value Creation

Sustainability

Data Section

dialogue with institutional investors, and we willcontinue to put effort into improving this.

What is your message to stakeholders?
Amid the U.S. - China trade dispute and the
COVID-19 pandemic, we faced a difficult period in termsof our performance due to customers’ wait and see
approach to capital investment, but, during this period,
FANUC was able to continue its initiatives to improve
corporate value over the mid-to-long term, and these
initiatives have been useful in the period of rapid
recovery from the COVID-19 pandemic. We owe this tothe understanding and support of our stakeholders, towhom we would like to express our deepest gratitude.
Even in a world where the future is uncertain andincreasingly unstable, we will continue to focus on
the field of factory automation, continue to create
products and technologies that our customers need,
and work to further improve our corporate value.
I look forward to the continued support of all
stakeholders as FANUC continues to grow anddevelop.
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Value Creation

Management Policies・Management Strategy
VisionFANUC provides indispensable values throughout the world in the field of factory
automation through unceasingly creating technological innovations, and will continue tobe a company that is trusted by all stakeholders.

Management Policies
FANUC has consistently pursued factory automation since 1955 when it started its business.
The targets at its beginnings were to become a company, though small in size, having the robustness of a giantwith roots firmly spread in the ground, and to concentrate on technology to go forward, by “walking a straight andnarrow path.” This is being pursued to this day.
In order to turn this vision into reality, the FANUC Group has established “Genmitsu (Strict Preciseness)” and “Tomei (Transparency)” as its basic principles. In these principles lie the belief that a company will last forever and besound with strict preciseness, and that the corruption of an organization and downfall of a company will start froma lack of transparency.
FANUC engages in the FA, ROBOT and ROBOMACHINE Businesses. The FA Business encompasses basic technologies consisting of NCs, Servos and Lasers, which are also applied to the ROBOT and ROBOMACHINE Businesses.
In addition, by actively incorporating IoT/AI technologies in all three areas, the company endeavors to make
FANUC products more efficient for customers to use.
Being true to its origins as a supplier of capital goods, maintenance and service support is provided for FANUC
products for as long as they are used by customers.
Through such activities, the FANUC Group contributes to the development of manufacturing industries in Japanand overseas, by promoting automation and efficiency in customers’ factories. FANUC expects to steadily grow in
the field of factory automation, which is extremely promising in the mid-to-long term.

Management Strategy
FANUC is thorough in implementing its basic principles of “Genmitsu (Strict Preciseness)” and “Tomei(Transparency),” and promotes the following policies united as a group. By doing so, the FANUC Group aims tobecome an ever-lasting organization by increasing our customers’ feelings of assurance and trust towards us, aswell as by adapting to severe changes in the environment.

one FANUC
Under the slogan of “one FANUC,” the three Businesses of FA, ROBOT and ROBOMACHINE collaborate to offer total solutions, and the Group bonds together to take good care of our customers throughout the world. This is aunique advantage of the FANUC Group which we leverage to the fullest.
Especially, the combined usage of CNC machines and ROBOTs, and the automation of ROBOMACHINEs with ROBOTs, are perceived as key concepts in developing products.

Reliable, Predictable, Easy to Repair
Considering our foundation as a producer of capital goods that are used in manufacturing sites, FANUC is meticulous in ensuring that that our products are “Reliable, Predictable, Easy to Repair” in their development, to minimize downtime and maximize the operating rate in our customers’ factories.

Ease of Use
As demands for factory automation increase while acquiring skilled workers becomes more difficult, further emphasis is placed on ease of use in developing products, to deal with this situation.

Strengthening CompetitivenessIn order to develop highly competitive products and introduce them to the market, FANUC vigorously invests inresearch and development. By narrowing down to our area of expertise, which is factory automation, and aggressively investing in R&D in this area, products which are highly competitive are developed and released. This leads
to the fulfillment of intellectual property.

Service First“Service First” is a basic policy followed by the FANUC Group. Through “Service First,” high level maintenance service in line with FANUC’s global standards are provided anywhere in the world, as well as “Lifetime Maintenance”
of FANUC products for as long as they are used by our customers. Particularly, lifetime maintenance, which is difficult for our competitors to imitate, is a primary feature of the FANUC Group, which shall continue to be focused on.
17

FANUC CORPORATIONProfile

Value Creation

Sustainability

Data Section

Fortifying the Corporate Structure
Basic policies from the past to make the company stronger will be promoted from a long-term perspective. These
include making our products more competitive, strengthening sales and service activities, advancing factory automation and robotization, reducing expenses and time, and streamlining operations.

IoT / AI Technology
By actively applying IoT and AI technologies to all fields of FA, ROBOT and ROBOMACHINE, customers’ manufacturing processes are made more efficient.

Responsibility to Supply
As a supplier of capital goods, FANUC will fulfill its responsibilities to supply under any circumstances. For thisend, manufacturing sites and service offices are being increased and established in various locations so that service activities can be maintained. Furthermore, measures are being taken to strengthen our supply chain. Examples are procuring parts from multiple suppliers, and having an adequate amount of parts in stock.

Enrichment of Human Capital
From the viewpoint that human resources is the most vital for mid-to-long term growth, improvements in thework environment and motivation of employees are considered important topics to be addressed. In addition,
looking towards the future, FANUC strongly invests in human capital to employ necessary people and educate
employees. Through such efforts, human capital is continuously enriched.

Management Indices
In addition to operating margins, ordinary margins and ROE, market shares are regarded as being critical management indices. Assessments and judgments are made comprehensively based on such indices.

Actions to Prevent Infection
Highest priority is placed on the prevention of infection and spread of infection to our customers, partners, employees and their families as well as the community. FANUC shall continue to supply products and offer services
to our customers placing safety first.

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Value Creation

Track Record of Value Creation

FANUC’s History

The history of FANUC began with the Numerical Control (NC) technology. In 1955, aproject team for control was established at Fuji Tsushinki Manufacturing Co., Ltd.. And
the following year, in 1956, the Company became Japan’s first private-sector company
to successfully develop NCs and SERVO mechanism, realizing the automation of controlof machine tools, which require absolute position accuracy and until then were performed manually, by numerically controlling them. In 1959, the Company developed
electro-hydraulic pulse motor, which forms the basis for its SERVO technology, helping
the NC business establish a strong market position.

1980

1955
1956
1959

Fuji Factory constructed. Unmannedmachining during nights was realized.

1990

FS16/18 was developed.

DC Servo Motor M series was developed.

1991

Hayato Factory completed.

1992

BEIJING-FANUC Mechatronics CO.,LTD. jointly established with Beijing
Machine Tool Research Institute.

1981

FANUC ROBOT S-MODEL 1 was developed.

1982

GMFanuc Robotics Corporation jointly establishedin the U.S. by FANUC and General Motors.

GMFanuc Robotics Corporation became
FANUC Robotics Corporation, a 100%
Fanuc owned company, and its subsidiary.

Project team for control was establishedat Fuji Tsushinki Manufacturing Co., Ltd.
(presently Fujitsu Limited).
First successful development of NCs and
SERVO mechanism in Japan (private sector).
The first electro-hydraulic pulse
motor was developed.

LR Mate was developed.
ROBODRILL α-T10A was developed.

Listed on the first section of the Tokyo Stock Exchange.

1984

FANUC AUTOSHOT was developed.

FANUC’s first CNC, FANUC 250
was developed.

1970

High Pulse Motor was developed.

1972

FUJITSU FANUC Ltd. was established.
(Changed to FANUC CORPORATION in 1982)

FANUC EYE was developed.

FANUC DRILL was developed.

Basic Research Laboratory established.

FANUC 200A was developed.
Electric Pulse Motor was developed.
1974

DC servo motor was licensed
from Gettys Manufacturing Co.

1975

FANUC TAPE CUT-SERIES A was developed.
FANUC 2000C was developed.

1985

FANUC SYSTEM 0 was developed.

1986

FANUC TAIWAN LTD established.

1978

KOREA NUMERIC CORPORATION
jointly established by FANUC and
Hwacheon Machinery Works Co.

1994

AC Servo Motor α/β series was developed.

iM-410 was developed.
1995

FANUC NC LASER-MODEL C1000 was developed.

1996

Linear Motor was developed.

i

i

i

i

FS16 /18 /21 was developed.
Call Center for Service established.

1997

FANUC ROBOT S-MODEL 420 was developed.
ARC Mate was developed.

SHANGHAI-FANUC Robotics CO., LTD.
jointly established in China with Shanghai
Electric Group Company Limited.

i

ROBODRILL α-T A was developed.

FS15 was developed.

FANUC U.S.A. CORPORATION established.
FANUC TAPE CENTER-MODEL C
was developed.

ROBOSHOT α-A was developed.

M-710 was developed.

GE Fanuc Automation Corporation jointly establishedin the U.S. by FANUC and General Electric.
1987

ROBOCUT α-1A was developed.
YAG LASER was developed.

Relocation of headquarters to the foot of Mt. Fuji.

FANUC SYSTEM 5 was developed.

FANUC ROBOT MODEL 1 was developed.

1993

FS10/11/12 was developed.

DC Spindle Motor was developed.
1977

Product Development Laboratory divided
into four laboratories consisting of the
CNC Laboratory, Servo Laboratory, Robot
Laboratory and Machine Laboratory.

AC SERVO MOTOR was developed.
1983

1964

1976

FANUC INDIA PRIVATE LIMITED established.

FANUC TAPE CUT-W was developed.
1988

Product Development Laboratory relocatedto headquarters site (Oshino-mura).

1989

Area 1 of the Tsukuba factory completed.

1999

FS-30 was developed.

i

ROBOSHOT α- A was developed

Laser Research Laboratory established.
Built-in Spindle Motor was developed.

FANUC EUROPE S.A. established.
FANUC TAPE CUT-MODEL Ｅ was developed.
1979

FANUC SYSTEM 6 was developed.
AC Spindle Motor was developed.

72
72

74
74

Years
Yearsended
endedMarch
March313119

FANUC CORPORATION

76
76

78
78

80
80

82
82

84
84

86
86

88
88

Consolidated
Consolidatedfrom
fromthetheyearyearended
endedMarch
March31,1983
31,1983

90
90

92
92

94
94

96
96

Profile

Value Creation

Sustainability

Data Section

In 1972, the NC division was spun off from Fujitsu Limited to form FUJITSU FANUC Ltd.
(later renamed as FANUC CORPORATION ). The Company adopted a keyaki (zelkova)
tree, firmly rooted in the ground and growing powerfully up toward the sky, as its symbol, which represents a wish to grow into a company with strong corporate structure.
In addition to improving the performance of NC and SERVO products, FANUC has since
expanded business to products that use the NC technology, developing the NC drillingmachines, which was aimed at popularizing NC machine tools, and robots installedwith NC that automate wide-ranging work processes.

2000

i i
i

2012

FS0 /0 Mate was developed.
R-2000 A was developed.

2001
2002
2003

ROBODRILL α-Ti B was developed.
2013
ROBOnano Ui was developed.
ROBOSHOT S-2000i A was developed.
AC Servo Motor αi /βi series was developed.
Robot cells put to practical use, enabling 720
2014
hours of continuous unmanned operation.

i

i

i

FS30 /31 /32 was developed.

2015

DD Motor was developed.

i

2005

ROBODRILL α-T E was developed.

2008

Super Heavy Payload Robot was developed.
Area 2 of the Tsukuba factory completed.

2009

Joint venture with General Electric was dissolved.

2016

Delta Robot was developed.

i

ROBOCUT α-C A was developed.
ROBODRILL α-D A was developed.
ROBOSHOT α-S A was developed.
European subsidiaries reorganized to
FANUC Europe Corporation.
Subsidiaries in the Americas reorganized
to FANUC America Corporation.
FS0 -F was developed.
AC Servo Motor α -B/β -B series was developed.
Collaborative Robot was developed.
FANUC FIBER LASER was developed.
FF Laser Corporation established.
Partnership with Preferred Networks announced.
Mibu Factory completed.

i
i

i

i

i

i HMI was developed.
ROBOCUT α-C800i B was developed.

Reliability Evaluation Building and
Performance Evaluation Building completed.
ROBODRILL α-D B was developed.
2017

2018

i

FIELD system was developed.
SCARA Robot was developed.
ROBONANO α-NM A was developed. 2019
FANUC ACADEMY established.
FS 0 -F Plus was developed.
FANUC Advanced Research Laboratory established.
New Nagoya Service Center opened.

i

i

i

ROBOSHOT α-S450 A was developed.

i i iFS 30 /31 /32 -B Plus was developed.

i

ROBONANO α-NT A was developed.

iCRX-10 A was developed.

Sales

733.0

(Billions(BillionsofofYen)
Yen)

800
800

■■

600
600

■■

400
400

■■

200
200

■■

00
98
98

00
00

02
02

04
04

06
06

08
08

10
10

12
12

14
14

16
16

18
18

20
20

22
22

INTEGRATED REPORT 2022

20

Value Creation

Value Creation Process

Development of
the manufacturingindustry and solutionof social issues

In 1955, a project team for control was established at Fuji Tsushinki Manufacturing Co., Ltd.. And the following year 1956, we succeeded in the development of NCs (Numerical Controls) and SERVO mechanism for the first time in the Japanese private sector. Since then FANUC has been consistently pursuing
the automation of factories. We will create economic value and social value by advancing the automation and robotization of our customers’ factories
through constant technological innovation and contributing to the solution of social and environmental issues in the manufacturing industry around the world.

INPUT(Year ended March 31)

Financial capital
Total assets¥1,783.9 billion

Operating income ¥183.2 billion

Manufacturing capitalBook value ofkey equipment“Genmitsu (Strict Preciseness)” “Tomei (Transparency)”¥396.7 billion

Capital investment ¥41.1 billion

Business activities

Social issues

Intellectual capital
Number of patents granted
11,815in Japan and overseas
R&D expenses¥50.0 billion

FA Business

ROBOT Business

ROBOMACHINE Business

Service Business

Human capital
Number of consolidated
8,675
Employees(FANUC CORPORATION)% of female directors 27.3％% of foreign directors 9.1％
% of females in
3.5％
executive employees

Social capital
Global service network

Materiality
Responsibility to Supply

Customer-Oriented Advanced Technologies

Climate ChangeHigh Level of Reliability and Safety of Products

Development of and Engagement with Human Resources

More than 260 service offices,
covering more than 100 countries

Natural capital

ESG Initiatives

ISO14001 certification 33 offices
GHG Emissions (Scope1+2) 145,429t-CO2
Total Water Used 1,058 thousand ㎥

Increase in Capital

21

FANUC CORPORATIONProfile

Contribution to the Resolutions of Social Issues

Value Creation

Sustainability

Data Section

Value Creation for Society
Energy Saving & Carbon Neutrality

OUTPUT… Major products and services
Reducing GHG Emissions

FA⃝CNC⃝Servos⃝Lasers

Reducing Power
Consumption

Utilizing Green Energy

SDGs

ROBOT
⃝RobotProviding Solutions to Improve Working Conditions, Increase Productivity, and Waste Reduction

Sustainable growth
ROBOMACHINE⃝ROBODRILL⃝ROBOSHOT⃝ROBOCUT

Enhance Corporate Value

Net sales

733.0 Billions of yen

Operating income ratio

25.0%

Ordinary income ratio

29.1%

ROE

10.5%

INTEGRATED REPORT 2022

22

Value Creation

Materiality
FANUC, which has continuously pursued Factory Automation (FA), commands an exceptionally high market shares for

CNC systems and industrial robots. FANUC products of FA, ROBOT, and ROBOMACHINE businesses are used atfactories throughout the world. Any interruption in the supply of such products would thus lead to stoppages atcustomers’ factories. Furthermore, as the Company’s products also contribute to the decarbonization of and productivity
improvements at customers’ factories, they have an important and extensive impact on the environment and society.
With its customer-oriented products, FANUC is shaping the future of the manufacturing industry.
If FANUC is to achieve sustainable growth under its basic principles of “Strict Preciseness” and “Transparency,” it must
create both social and economic value and conduct long-term management without focusing solely on short-term gains.
Doing so will require us to solve social issues through our businesses in order to contribute to a sustainable society.
In this light, we have revised our materiality based on our belief that their resolution is important for such management
to be successful.

Process for Identifying Materiality

STEP

1

Clarification of Issues
FA N U C d e t e r m i n e d s o c i a l a n d c u s t o m e r n e e d s a n d c l a r i f i e dsustainability-related issues with reference to global disclosure standards,*
ESG rating agencies, and industry trends.
*ISO 26000, SDGs, GRI Standards, and SASB Standards

STEP

STEP

23

2

3

4

FANUC CORPORATIONThe Sustainability Committee, which is chaired by the President andRep resentative D ire c to r an d co mp ose d of m emb ers taske d withspearheading management, such as the Chairman and Representative
Director and the general managers of each business division, evaluatedeach of the issues clarified and classified. Through questionnaires andindividual interviews, all committee members evaluated said issues inte r m s o f t h e i r i m p o r t a n c e to FA N U C a n d t h e i r i m p o r t a n c e to
stakeholders. The committee also reflected in its evaluations objective
opinions obtained through dialogues with outside experts and investors.

Identification of Materiality
The Company narrowed
down issues throughdiscussions by the
Sustainability Committee.
Thereafter, taking into accountthe opinions of outside
directors, we identified ourMateriality following
deliberations at a meeting of
the Board of Directors.

Future Actions

Material Topics
Highly important

Responsibility
to Supply
ClimateChangeImportance to stakeholders

STEP

Examination of the Importance of Issues

Customer-Oriented
Advanced Technologies

High Level of
Reliability and Safetyof Products

Development of and Engagementwith Human Resources

Importance to FANUC

Highly important

FA N U C w i l l p ro m o teinitiatives in relation to its Materiality and raise awareness thereofCompanywide. Moreover, with the Sustainability Committee taking thelead in periodically revising the Materialit y and with the Board of
D i re c t o r s d e l i b e r a t i n g a n d m o n i t o r i n g t h e m , w e w i l l p ro m o t emanagement based on our Materiality.

Profile

Value Creation

Sustainability

Data Section

Materiality
Responsibility to Supply

Building and maintaining long-term relationships of trust with customers⃝ Why the Issue is Material

Fulfilling our responsibility to supply is of the utmost importance for maintaining relationships of trust withcustomers. As any interruptions in supply from FANUC would lead to stoppages at customers’ factories,
we take such responsibility extremely seriously. A strength of the Company is its continuous operation of amaintenance service system for customers, while its ability to stably supply products and services enables
FANUC to offer added value. Fulfilling our responsibility and continuing to exist as a company needed bysociety are crucial.

⃝ Ideal state

As a supplier of capital goods, FANUC will anticipate a wide range of scenarios, including natural disasters
and geopolitical risks faced by the Company and its suppliers. Mindful of such scenarios, we will supply
products in a stable manner and continuously operate a sophisticated maintenance service system inaccordance with global standards while paying close attention to environmental and social trends. In thisway, we will contribute to improving the uptime of factories around the world.

Customer-Oriented Advanced Technologies

Anticipating and creating customer needs⃝ Why the Issue is Material

Pursuing a customer-oriented approach has been and will remain a key value in FANUC’s stance. Our ability
to promptly provide feedback on our research and development efforts by using our products at companyowned factories serves as a strength. Anticipating customer needs based on such information enables
FANUC to enhance customer satisfaction while helping it maintain and improve product competitivenessand shape the future of the manufacturing industry. Maintaining our industry-leading position by offering
highly advanced products that are based on innovative technologies and which underpin production floors
is thus vital.

⃝ Ideal state

FANUC will firmly grasp customer needs by rigorously ensuring that it constantly pursues a customeroriented approach. Through the development and popularization of advanced technologies, we willcontinuously improve customer satisfaction and shape the future of the manufacturing industry by
developing products that anticipate customer needs and the changing times.

Climate Change

Contributing to climate change mitigation⃝ Why the Issue is Material

Greenhouse gas emissions associated with the use of its products at customers’ factories far outweighsuch emissions resulting from FANUC’s business activities. Accordingly, there is an increasing need amongcustomers and in society for energy-saving products, making it essential that we contribute to efforts inrelation to carbon neutrality. FANUC can curb the energy consumption of its customers by improving the
productivity of factories around the world through highly energy-efficient products arising from innovation.

⃝ Ideal state

Viewing climate change as both a risk and an opportunity, FANUC will promote the development of highquality, environment-friendly products, including those that realize energy-savings and high levels of energy
efficiency. Doing so will allow us to contribute to the achievement of carbon neutrality and a sustainable
society.

High Level of Reliability and Safety of Products

Maximizing Uptime in customers’ sites⃝ Why the Issue is Material

FANUC’s product development is centered on the principle of “Reliable, Predictable, Easy to Repair.” Thehigh level of reliability realized by the durability of such products helps improve productivity at factories,
thereby raising the competitiveness of FANUC as well as of its customers. In addition, FANUC’s products arevital in that they not only protect those operating them from physical hazards but also boast a high level ofcyber security.

⃝ Ideal state

FANUC will maintain and improve the high quality of its products and offer extensive maintenance services
to improve the uptime of customers’ factories. We will also aim to realize safe and secure production sites.

Development of and Engagement with Human Resources

Cultivating human resources to lead the future of the manufacturing industry⃝ Why the Issue is Material

Outstanding human resources are the driver of corporate activities, making them indispensable to thesustainability and innovation of companies. Efforts to develop human resources must thus be reinforced
from a medium- to long-term perspective, requiring proactive and continuous efforts that lead to improved
motivation.

⃝ Ideal state

Given that human resources are of the utmost importance for ensuring growth over the medium- to longterm, FANUC will strive to enhance its conditions for developing human resources and further improve theirmotivation. We will attract and secure outstanding human resources and seek to establish an organizational
culture and environment conducive to cultivating and enhancing human resources who will lead the futureof the manufacturing industry.
INTEGRATED REPORT 202224

Sustainability

Directors (As of June 24, 2022)

Yoshiharu Inaba

Representative Director, Chairman

Kenji Yamaguchi

Representative Director, President

Michael J. Cicco

Director of the Company

Personal history

Personal history

Personal history

April
1973 Joined Isuzu Motors Limited
September 1983 Joined the Company
June
1989 Appointed Director of the Company
June
1992 Appointed Senior Vice President (Director) of the Company
June
1995 Appointed Executive Vice President (Director) of theCompany
May
2001 Appointed Senior Executive Vice President (Representative
Director) of the Company
June
2003 Appointed President (Representative Director) of theCompanyJune2016 Appointed Chairman and CEO (Representative Director) of
the Company
April2019 Appointed Chairman (Representative Director) of theCompany (to the present)

April
1993 Joined the Company
June2008 Appointed Executive Vice President (Director) of the Company
February 2012 Appointed Senior Executive Vice President (Director) of the Company
October 2013 Appointed Senior Executive Vice President (Representative
Director) of the Company
June2016 Appointed President and COO (Representative Director) of
the Company
April2019 Appointed President and CEO (Representative Director) of
the Company (to the present)

August 1999 Joined FANUC America Corporation (“FAC”)
November 2015 Appointed Vice President of FAC
April
2016 Appointed President and COO of FAC
June
2016 Appointed Managing Officer of the Company
July2016 Appointed President and CEO of FAC (to the present)June2017 Appointed Senior Managing Officer of the Company
June2020 Appointed Director of the Company (to the present)

Kazuo Tsukuda
Director

Outside Director

Naoko Yamazaki
Director

Independent Director RenominatedOutside Director

Hiroto Uozumi
Director

Independent Director RenominatedOutside Director

Personal history

Personal history

Personal history

April
June

April

April
April

April
June
April
April
June
June
June
June

1968 Joined Mitsubishi Heavy Industries, Ltd.
1999 Appointed Director (Member of the Board) of Mitsubishi
Heavy Industries, Ltd.
2002 Appointed Managing Director (Member of the Board) of
Mitsubishi Heavy Industries, Ltd.
2003 Appointed President (Member of the Board) of Mitsubishi
Heavy Industries, Ltd.
2008 Appointed Chairman (Member of the Board) of Mitsubishi
Heavy Industries, Ltd.
2013 Appointed Senior Executive Advisor (Member of the Board)of Mitsubishi Heavy Industries, Ltd.
2013 Appointed Senior Corporate Advisor of Mitsubishi Heavy
Industries, Ltd.
2015 Appointed Director of the Company (to the present)
2019 Appointed Executive Corporate Advisor of Mitsubishi Heavy
Industries, Ltd.
2021 Appointed Honorary Advisor of Mitsubishi Heavy industries,
Ltd. (to the present)

1996 Joined the National Space Development Agency of Japan(currently Japan Aerospace Exploration Agency (JAXA))
September 2001 Authorized as an astronaut to board the International
Space Station
April
2010 Served as a mission specialist on the Space Shuttle
Discovery, and engaged the mission of assembling theInternational Space Station (STS-131(19A))
March 2016 Appointed Outside Director of Nabtesco Corporation
September 2017 Appointed Outside Director of OPTORUN Co., Ltd. (to thepresent)
June2018 Appointed Outside Director of TOPCON CORPORATION (tothe present)
July
2018 Appointed Representative Director of Space Port Japan
Association (to the present)June2020 Appointed Director of the Company (to the present)June
2021 Appointed Chairman of Young Astronaut Club-Japan (tothe present)

April
April
July
April
April
April
April
April
June
June

25

FANUC CORPORATION

Independent Director Newly Nominated1975 Joined Hitachi, Ltd.
2003 General Manager of Nuclear Power Systems Production
Division, Nuclear Systems Division, Power and Industrial
Systems Group, Hitachi, Ltd.
2004 Deputy General Manager of Hitachi Works, Power Systems
Group and Vice Division Director, Nuclear Power Systems
Production, Hitachi, Ltd.
2005 Deputy General Manager of Air-Conditioning Systems
Division, Hitachi Plant Engineering & Construction Co., Ltd.
2007 Appointed Executive Vice President of Hitachi-GE Nuclear
Energy, Ltd.
2011 Appointed President and Representative Director of HitachiGE Nuclear Energy, Ltd.
2013 Appointed Vice President and Executive Officer, Hitachi, Ltd.
2015 Appointed Chairman of the Board of Hitachi-GE Nuclear
Energy, Ltd.
2017 Senior Corporate Officer of Nuclear Energy Business Unit,
Hitachi, Ltd.
2020 Senior Corporate Officer of Nuclear Damage Compensation
and Decommissioning Facilitation Corporation
2021 Appointed President & CEO of Atomic Energy Association(to the present)
2022 Appointed Director of the Company (to the present)

Profile

Katsuo Kohari

Director who is an Full-time Audit and Supervisory Committee Member

Value Creation

Katsuya Mitsumura

Director who is an Audit and Supervisory Committee Member

Sustainability

Yasuo Imai

Director who is an Audit and Supervisory Committee Member
Outside Director

Personal history

Personal history

April
May
April

April

1968 Joined Fujitsu Limited
1976 Transferred to the Company
2003 Assistant to General Manager for Sales and Service of theCompanyJune2003 Appointed Director of the Company
June2012 Appointed Senior Vice President (Director) of the Company
October 2013 Appointed Executive Vice President (Director) of theCompanyMay
2014 Vice General Manager (Sales), FA Business Division of theCompany
October 2014 General Manager, Service Division of the Company
June2016 Appointed Executive Managing Officer (Director) of theCompany
June2019 Appointed Standing Audit & Supervisory Board MemberJune2021 Appointed Director (Audit & Supervisory Committee
Member) of the Company (to the present)

July
July
July
July
July
April
June
April

June
April
June

Director who is an Audit and Supervisory Committee Member
Outside Director

Independent Director Renominated

Personal history

1974 Joined Showa Audit Corporation (current Ernst & Young
ShinNihon LLC)
March 1977 Registered as Certified Public Accountant (to the present)
January 1982 Founder and head of Katsuya Mitsumura C.P.A. and Tax
Accountant Office (to the present)June2019 Appointed Audit & Supervisory Board MemberJune2021 Appointed Director (Audit & Supervisory Committee
Member) of the Company (to the present)

June

Hidetoshi Yokoi

Data Section

1971 Joined the Ministry of International Trade and Industry(currently the Ministry of Economy, Trade and Industry)
2002 Appointed Director - General, Manufacturing Industries
Bureau of the ministry2003 Appointed Commissioner of Japan Patent Office
2004 Appointed Adviser of Japan Industrial Policy ResearchInstitute2006 Appointed Senior Managing Executive Officer, Executive
Vice President of Pipe & Tube Company, of Sumitomo Metal
Industries, Ltd (currently NIPPON STEEL CORPORATION)
2007 Appointed Senior Managing Executive Officer, President of
Pipe & Tube Company of the company
2007 Appointed Director & Senior Managing Executive Officer(Member of the Board) , President of Pipe & Tube Companyof the company
2008 Appointed Director & Executive Vice President (Memberof the Board) , President, Pipe & Tube Company of thecompany
2011 Appointed President, Chief Operating Officer (Member ofthe Board) of AIR WATER INC.
2015 Appointed Director of the Company
2017 Appointed Director, Vice Chairman of the Board of AIR
WATER INC. (to the present)
2021 Appointed Director (Audit & Supervisory Committee
Member) of the Company (to the present)

Mieko Tomita

Director who is an Audit and Supervisory Committee Member

Independent Director RenominatedOutside Director

Personal history

Personal history

April
1983 Lecturer, Institute of Industrial Science of University of Tokyo
January 1985 Assistant Professor, Institute of Industrial Science ofUniversity of Tokyo
July
1997 Professor, Institute of Industrial Science of University of Tokyo
July
1998 Professor, Center for Collaborative Research of University of Tokyo
April
2005 Director, Center for Collaborative Research of University of Tokyo
April
2008 Professor, Institute of Industrial Science of University of Tokyo
May
2015 Field II Program Officer, Adaptable and Seamless
Technology Transfer Program through Target-driven R&D ofJapan Science and Technology Agency (to the present)
March 2019 Retired as Professor, Institute of Industrial Science ofUniversity of Tokyo
June
2019 Professor Emeritus of the University of Tokyo (to thepresent) Appointed Audit & Supervisory Board Member of
the Company
June2021 Appointed Director (Audit & Supervisory Committee
Member) of the Company (to the present)

April

Independent Director Renominated1980 Registered as lawyer (to the present) Joined Nishi and Iseki Law
Office (currently Nishi & Partners Attorneys and Counselors at Law)
April
1995 Appointed Auditor of Kanagawa Learning Disability
Research Association
April
2001 Appointed Civil Conciliation Commissioner, Tokyo District
Court (to the present)
April
2004 Appointed Instructor, Showa Women’s University
October 2007 Appointed a member of the National Bar Examination
Commission, Code of Civil ProcedureJune2012 Appointed External Audit & Supervisory Board Member of
MORINAGA MILK INDUSTRY CO., LTD.
April
2017 Senior Partner, Nishi & Partners Attorneys and Counselorsat Law (to the present)June2019 Appointed Outside Director (Member of the Audit & Supervisory
Committee) of Nisshin Seifun Group Inc. (to the present)June2020 Appointed Audit & Supervisory Board Member of the Company
June2021 Appointed Director (Audit & Supervisory Committee
Member) of the Company (to the present)
Appointed Outside Director of TEKKEN CORPORATION (tothe present)

Diversity of Board Members●Independent Outside Directors

6／11 …… Ratio of Outside Directors 55%●Foreign National/Female Directors

3／11 …… Ratio of Foreign National/Female Directors 27%
Foreign national

Female Director

INTEGRATED REPORT 2022

26

Sustainability

Enhancing Corporate Governance
Basic Approach

Promotion Framework and Initiatives

FANUC has always worked on enhancing corporate
governance based on our Basic Principles of “Strict
Preciseness” and “Transparency.” As we proceed inseparating our supervisory and executive functions, inorder to further strengthen the supervisory functionsof the Board of Directors and speed up management
decisions, we transitioned to a company with an Audit and Supervisory Committee, that allows us to establish an Audit and Supervisory Committee
consisting of the Directors who are Audit and Supervisory Committee Members and to expand the delegation of decision-making authority for businessexecution from the Board of Directors to Directors.
Thus, we are further endeavoring to enhance corporate governance and increase corporate value. In addition, FANUC has established the Nomination andRemuneration Committee, a majority of which comprises Independent Outside Directors, and is chairedby an Independent Outside Director. By increasing
the objectivity and transparency of the appointment
and evaluation of Directors, this committee ensures
the strict preciseness and transparency of supervisory functions to management.

⃝ As a company with an Audit and Supervisory Committee, we have separated the Board of Directors (supervisory function) from the management side (executivefunction) to maintain the independence of each.
⃝ Six of the eleven members of the Board of Directors are Independent Outside Directors, which account for majority of the Board of Directors.
⃝ We are promoting diversity initiatives in the Board of
Directors, and our Board of Directors includes two
female directors and one non-Japanese director.
⃝ Three of the five Audit and Supervisory Committee
Members are Outside Audit and Supervisory Committee Members, one of whom is a woman.
⃝ We continue to periodically review the contents of
the Board of Directors and the Audit & Supervisory
Committee from the perspectives of whether the independence of the Board of Directors and management is maintained, whether the effects of diversity
are evident, and whether discussions in the Board of
Directors and the Audit & Supervisory Committee
are active, and make improvements as necessary.

Corporate Governance System
Supervisory Functions

President

Nomination and Remuneration Committee(The majority are Outside Directors)（Chairperson : Outside Director）

Auditing Functions

Audit

Audit and Supervisory Committee(The majority are Outside Directors)

Coordinate
Elect

Management Meeting

Accounting Auditor

Each Business Division, etc
Internal Audit Department

Elect

Executive Functions

Supervise

Board of Directors（The majority are Outside Directors）

Audit

General Meeting of Shareholders

Elect

Audit

Each Subsidiary
Audit

Frequency of Board of Directors and Audit Committee Meetings⃝ In addition to the Board of Directors meets once amonth in principle, it also meets as needed. (The
Board of Directors held a total of 12 meetings in
FY2021)⃝ In FY2021, the Board of Corporate Auditors held
two meetings prior to the transition to a company

27with an Audit and Supervisory Committee on June24, 2021. The Audit and Supervisory Committee
met 11 times in the period from the transition to
the last day of the fiscal year.
⃝ Attendance of individual Directors at meetings of theBoard of Directors and other meetings is as follows.

Board of Directors meetings

Audit & Supervisory Board
meetings (Until June 24, 2021)

Audit and Supervisory
Committee

Kenji Yamaguchi

12 of 12--

Yoshiharu Inaba

12 of 12--

Michael J. Cicco

12 of 12--

Kazuo Tsukuda

12 of 12--Masaharu Sumikawa

12 of 122 of 2-

Naoko Yamazaki

12 of 12--

Katsuo Kohari

12 of 122 of 211 of 11

Katsuya Mitsumura

12 of 122 of 211 of 11

Yasuo Imai

12 of 12-11 of 11

Hidetoshi Yokoi

11 of 121 of 211 of 11

Mieko Tomita

11 of 122 of 211 of 11FANUC CORPORATIONProfile

Criteria for Independence of Outside Directors
and Outside Audit & Supervisory Board Members
With regard to Independent Outside Directors andOutside Audit & Supervisory Board Members, theCompany nominates candidates who do not haveany certain interest in the Company, and who can be
expected to make frank comments without hesitation at Board of Directors meetings, etc. Furthermore,in order to ensure such real independence, as minimum requirements, candidates must meet each of
the following conditions.
1. Sales to the individual’s former workplace (organization) from the Company will be under 2% of theconsolidated sales of the Company, and sales to
the Company from the individual’s former workplace will be under 2% of the consolidated salesof the individual’s former workplace.
2. The Company must not have any loans from thecompany from which the candidate comes (if thecandidate comes from a bank.)
3. The Company must not have any important transactions such as advisory contracts with the candidate or the firm he works for (if the candidate is alawyer or other professional.)
4. The candidate must not come from the audit firmthat is the Company’s Accounting Auditor.
5. There must be no other particular reasons that
could give rise to a conflict of interest with theCompany.
6. The candidate must not be the spouse or a relative within the second degree of anyone whodoes not meet the above conditions 1 through 5

Nomination and Remuneration Committee
With respect to appointment and dismissal and remuneration, etc. of Directors, we have establishedthe Nomination and Remuneration Committee, themajority of which is composed of Independent Outside Directors, to secure the objectivity and transparency, etc. of procedures through the deliberation by
this Committee.
〈Member〉
Outside Director Kazuo Tsukuda (Chairman)
Outside Director Masaharu Sumikawa
Outside Director Naoko Yamazaki
Outside Director who is an Audit and Supervisory Committee Member Mieko Tomita
Representative Director, Chairman Yoshiharu Inaba
Representative Director, President, CEO Kenji Yamaguchi

Directors’ Remuneration
1. Matters concerning the Policy for Determining the
Details of Remunerations for Individual Directors
The Company has established a policy for determining
the details of remunerations for individual Directors(excluding the Directors who are Audit and Supervisory Committee Members; the same applies hereinafterin this paragraph) (hereinafter, “Policy”) in place as
outlined below.: (Resolved at a meeting of the Company’s Board of Directors held on June 24, 2021)⃝ Fixed remunerations shall be determined according to the position of each Director.
⃝ Performance-based remunerations shall be linked
to the current net income attributable to theshareholders of the parent company as in the caseof shareholder return in principle.
⃝ Stock-based remuneration shall be provided as remuneration of restricted stock, taking various factors,
such as the degree of contribution of the Director,
into consideration in a comprehensive manner.
⃝ Remuneration for Directors comprises fixed remuneration, performance-based remuneration andValue Creation

Sustainability

Data Section

stock-based remuneration whose ratios shall be
set considering his/her position, responsibility, performance, etc., in a comprehensive manner.
⃝ Remuneration of Outside Directors shall comprise
fixed remuneration only. The Policy shall be determined by a resolution of the Board of Directors. As
for remunerations for the Directors who are Audit
and Supervisory Committee Members, the amount of
remuneration for the individual Directors who are
Audit and Supervisory Committee Members shall be
determined by consultation among the Directors
who are Audit and Supervisory Committee Members.
2. Matters concerning Resolution of Shareholders’Meeting on Remunerations for the Directors
With respect to the aggregate amount of remunerations for the Directors (excluding the Directors who
are the Audit and Supervisory Committee Members),
it was approved at the 52nd Ordinary General Meeting of Shareholders held on June 24, 2021 that itshall be capped at the sum of (a) the fixed remuneration limit and (b) the performance-based remuneration limit specified below. Further, it was also
approved that, in addition to (a) and (b), (c)stockbased remuneration may be provided to the Directors except for the Outside Directors.
⃝ (a) Fixed remunerations of 800 million yen or lessannually (including 100 million yen or less annuallyfor the Outside Directors);⃝ (b) Performance-based remunerations of anamount equivalent to 0.7% or less of the current
net income attributable to the shareholders of theparent company for the fiscal year immediately
preceding the Meeting of Shareholders at which
they are appointed or reappointed (but not exceeding an amount equivalent to three years of
fixed remunerations);⃝ (c) The aggregate amount of monetary remuneration claims provided as stock-based remuneration(remuneration regarding restricted stock, etc.)
shall be 350 million yen or less annually. Total
number of such restricted stocks allotted for eachfiscal year shall be capped at 28,000 shares.
As of the conclusion of the Ordinary General Meetingof Shareholders, the number of Directors (excluding
the Directors who are the Audit and Supervisory
Committee Members) is six (6), and it is three (3) excluding the Outside Directors. As for the aggregate
amount of remunerations for the Directors who are
the Audit and Supervisory Committee Members, it
was approved at the 52nd Ordinary General Meetingof Shareholders held on June 24, 2021 to be capped
at 200 million yen annually.
As of the conclusion of the Ordinary General Meetingof Shareholders, the number of Directors who are Audit and Supervisory Committee Members is five (5).
3. Matters concerning Determination on the Details of Remunerations for Individual Directors (excluding the Directors
who are the Audit and Supervisory Committee Members)
When reviewing remuneration standards, the Company selects benchmark companies and also refers toremuneration standards that takes into consideration
results of surveys conducted by external third-party
professional organizations. At the Company, theBoard of Directors then determines the details of theamount of remunerations for the Directors (excluding
the Directors who are the Audit and Supervisory
Committee Members) after consultation with theNomination and Remuneration Committee majority ofwhich are independent Outside Directors and chairedby an Outside Director. Since the amounts of remunerations for individual Directors are determinedthrough such procedures, the Board of Directors
judges that their details are in line with the Policy.
INTEGRATED REPORT 2022

28

Sustainability

Analysis and Evaluation of Board of Directors Effectiveness1. Efforts to Improve EffectivenessTo ensure effective good governance, we adhere
to our basic principles of “Strict Preciseness” and“Transparency.” We conduct an annual survey of
directors to assess Board of Directors effectiveness, and establish opportunities for the exchangeof such opinions in a timely manner. Furthermore,
we maintain a system that incorporates directors’
opinions and evaluations in the Corporate Governance Guidelines when advisable, and put theseresults into practice.
2. Evaluation Methods
To evaluate Board of Directors effectiveness, in
October, 2021 we conducted a questionnaire survey of all directors who are members of the Boardof Directors. In order to increase transparency andevaluate effectiveness from rigorous and multifaceted perspectives, we employed an external organization to design the survey and to analyze andevaluate the results. The survey sought to determine whether the Board of Directors was able tofunction effectively when making important decisions and overseeing significant matters such as
the composition of the Board of Directors, its operations, and management strategy, given ourtransition to a company guided by an Audit andSupervisory Committee in June 2021 and revisionof the Corporate Governance Code.
3. Evaluation Results Summary
Our Board of Directors was highly praised for its
diversity in terms of gender, nationality, work experience and other factors, and for its fostering anenvironment that encourages the free and open
exchange of opinions and facilitates the examination of issues from multiple perspectives. On theother hand, the evaluation results pointed to aneed for more comprehensive discussions on ways
to further develop human resources, to further
promote sustainable corporate growth.
The FANUC Board of Directors will continue striving
to improve its effectiveness.

Constructive Dialogue with Shareholders
We have a Public Relations & Shareholder Relations
Department to serve as a point of contact in relation
to constructive dialogue with shareholders, and weare taking the following actions.
1. Overview of Public Relations & Shareholder Relations Department
We think we should promote dialogue with shareholders, for the sustainable growth of the Company and the medium and long-term enhancement ofcorporate value, while putting emphasis on ourcore business. We have a Public Relations & Shareholder Relations Department, as a section responsible for the promotion of constructive dialogue
with shareholders both within and outside Japan.
2. Policy on Promotion of Constructive Dialogue with
Shareholders
The Public Relations & Shareholder Relations Department works on the following as measures forthe promotion of constructive dialogue with shareholders.
(１) Dialogue with Shareholders
The Public Relations & Shareholder Relations
Department actively promotes dialogue by

providing shareholders with opportunities toparticipate in various meetings, factory tours,
etc. Dialogues are lively, except that information that is likely to be regarded as insider information or may interfere with our businessactivities is not discussed.
(２) Opinions, etc. Provided in Dialogue
To promote the sustainable growth of ourCompany and the medium and long-term enhancement of corporate value, we will makeefforts to utilize opinions, etc., provided byshareholders through such dialogues.

Measures to Vitalize the General Shareholder
Meetings and Smooth Exercise of Voting Rights
1. Early Notification of General Shareholder Meeting
The Notice of the General Shareholders’ Meeting
and reference materials are sent approximately
three weeks prior to the date of the meeting.
The Notice of the General Shareholders’ Meeting
and reference materials are posted on our website
in both English and Japanese approximately fourweeks prior to the date of the meeting.
2. Exercise of Voting Rights by Electronic Methods
Shareholders can cast their votes from the website
for exercise of voting right for General Meeting of
Shareholders.
3. Participation in Electronic Voting Platform
We have adopted the use of Electronic Voting
Platform for Foreign and Institutional Investors operated by ICJ, Inc.
4. Provision of Convocation Notice in English
We prepare an English version of documents, including the Notice of General Shareholders’ Meeting, which is posted to our website approximately
four weeks prior to the date of the meeting.

Basic Policy on Return of Profit to Shareholders
1. Dividends
We have set a dividend payout ratio of 60% as ourbasic policy.
2. Share buybacks
We will buy back our own shares in a flexible manner depending on the level of our stock price, taking into account the balance with our investments
for growth.
3. Cancellation of treasury shares
We limit the number of our treasury shares to 5% of
the total number of shares issued. As a general rule,
we will cancel any portion exceeding that limit every
fiscal year.

Dividend payout ratio and total return ratio
Dividend payout ratio

Basic dividend policy 60%

FANUC CORPORATION

■

160%

■

140%

■

120%

■

100%

■

80%

■

60%

■

40%

■

20%
0%

2015

29

Total return ratio

2016

2017

2018

2019

2020

2021

2022

Profile

Value Creation

Sustainability

Data Section

Three-way Conversation between Outside Directors

Outside Director

Kazuo Tsukuda

Outside Director (Audit andSupervisory Committee Member)

Mieko Tomita

Outside Director (Audit andSupervisory Committee Member)

Yasuo ImaiFANUC’s Value Creation as Seen from an External Perspective
FANUC appoints Outside Directors in order to incorporate an objective perspective into management
and enhance corporate governance for sustainable growth and value creation. We asked three
Outside Directors to discuss FANUC’s current situation, issues, and direction for the future.

Transitioning to a Company with an Audit and Supervisory Committee
Tomita─I was fortunate enough to be introduced
to the Company by a previous Outside Audit & Super visory Board Member. My impression is that
FANUC is an ex tremely good company. In June
2021, we transitioned into a company with an Audit
and Supervisory Committee, whereby I became a
Director who is an Audit and Supervisory Committee Member. With this transition, eight of the elevenmembers became Directors without direct involvement in the execution of business, with the Company’s system now closer to a monitoring model. As aresult of this, we have become more able to discussmatters freely. I am the only member with legal expertise, and so, even though my position within the
Co m p a ny ha s cha n ge d , I remain co m mit te d tochecking and at tending to legal mat ters with asense of responsibility.
Tsukuda─This year marks the eighth year since I
became an Outside Director of the Company. We
have had a lot of extremely meaningful discussions
in that time. We have transitioned away from a
Board of Directors based on the management model towards one with strengthened monitoring functions, and management itself has been transferredto the meeting of Managing Officers. Division heads,
who are responsible for management of the various
divisions, report on the current business situation

during meetings of the Board of Directors. We listen
to these reports and provide monitoring oversight.
By clarifying the respective roles of the meeting ofManaging Officers and the Board of Directors, andthen linking them together, we have developed asystem that enables more ef fective governance.
Moving forward, I would like for the future trajectoryof the Company to be discussed at meetings of theBoard of Directors. Furthermore, in order to ensurethat we maintain our sustainable growth, considering the next developments, I think it would be agood idea if internal members such as assistants
and advisors to the Chairman and the President also
took part in meetings of the Board of Directors.
These are already topics being discussed at meetings of the Board of Directors, and I am keen forthese types of reforms to get underway.
Imai─I worked for the Ministry of Economy, Tradeand Industry for 30 years, followed by 20 years working at a manufacturing company, giving me a total of
50 solid years working in manufacturing. By happenstance, I was then fortunate enough to be invited totake on this role at the Company, whereby I havebeen able to contribute in a positive manner. The
meetings of the Company’s Board of Directors havebeen characterized by extremely lively discussions,even before the transition, thanks to the natural qualities

INTEGRATED REPORT 2022

30

Sustainability● Outside Director Kazuo Tsukuda

of Mr. Tsukuda. Along with this transition, we also
aimed to improve the Internal Audit Department. The
Audit and Supervisory Committee and Internal Audit
Department have been enabled to exchange opinions, set a direction for the Company, and engage inmore in-depth discussions. The Manager of the Internal Audit Department also works with the secretariatof the Audit and Supervisory Committee, and the system has evolved to take into consideration the ability

to conduct audits in accordance with the internal
control systems.
Imai─The top-level management of the Company,
namely the Chairman and President, are enlightenedin their approach. Even before we transitioned to acompany with an Audit and Supervisory Committee,
their stance was one of listening intently to discussions held at meetings of the Board of Directors andresponding to those discussions accordingly. In thatsense, the top management of the Company is extremely flexible and inspires us all to express ouropinions and put our heads together as we move
forward. The role of the Outside Director is to provide an external perspective. Our mission is to makethe most of our respective capabilities in service of
this.
Tomita─That’s right. I really do feel that discussions at meetings of the Board of Directors have become livelier. When I was appointed as an Audit &Supervisory Board Member, there were various aspects of the Company’s organization that I did nothave a good understanding of, and even when I
asked questions, I would sometimes still feel that I
was unclear on some things. Now, however, eachmember is able to better utilize their own areas ofexpertise and discuss matters on a more equal footing. And on that basis, I feel like this has enabled us
to more actively exchange opinions with one another.
Tsukuda─When I was first appointed, it seemed
discussions were less active, but now, that has completely changed. This is the result of the ef forts
made by the Chairman and President to realize a robust governance structure.

The Challenges of Developing Human Resources Who can Guide FANUC’s Future
Tomita─ One of the issues highlighted in the evaluation of the effectiveness of the Board of Directors
was the development of human resources towards
the realization of the Company’s sustainable growth.
The Company’s organizational structure is verticallyoriented due to the importance placed on various
technical expertise. However, when it comes tomanagement personnel, it is necessary that they
adopt a bird’s eye view of the entire organizational
structure, transcending these boundaries within theorganization. We are yet to see how such management personnel are being cultivated.
Tsukuda─ It is necessary to have a succession
plan for top management, but I don’t think themethod by which the Company should cultivate
such human resources is necessarily something thatmust be thought about too rigidly. The tendency is
to look to examples of companies in the U.S. andEurope for guidance, but I think we should al soplace more importance on the spirit born from Japanese culture, which is the result of more than 2,000
years of history. If you look at the way heads ofprominent families were educated about their succession, you come across the idea that they are nottrained to assume this role, but rather naturally mature to become a leader.
Imai─Four or five years ago, I had the opportunity
to listen to a top management round table discussion organized by the Japan Business Federation(KEIDANREN). It appears that at one company, whenemployees reached the age of around 3 0, they appointed these personnel as Presidents and Directors
of affiliate companies and continued to monitor theiractions to select the upcoming generation of leaders from among them. There was also discussion
about how, at one particular financial institution,
they demanded that any potential candidates be figures with a steady nerve. To that end, they appointe d su ch a c a n d i d ate a s t h e p resi d e nt o f t h ei r
American subsidiary, had that person put his or
her very best into the position, and then made their

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FANUC CORPORATION

decision based thereon. In this way, I think the way
a company develops its management personnel canbe reflective of its own characteristics as a company. Therefore, while it is good to refer to rules andguidance regarding a succession plan, I think it’sbest to not overly commit to a set-criteria and instead focus on ensuring diversity among those in
top management positions.
Tomita─ Both the Chairman and President are
paying close attention to the issue of fostering a successor, and, we have been asking them what theCompany’s policy is in this regard. I think it is truethat it is the position that a person holds that makes● Outside Director (Audit and Supervisory Committee Member) Yasuo ImaiProfilethat person. Authority and responsibility are twosides of the same coin. In other words, the person
who cannot correctly utilize authority cannot fulfill
their responsibility as a leader. It is such opportunities that result in the development of a person. As
part of efforts to address the relationship between
the Company and its Group companies, a governance system was established which sets out in its
managerial regulations to what extent the Group
companies should report to Company headquarters
and what level of authorit y is delegated to theGroup companies. In doing this, we can consider asystem that allows us to entrust the management ofa subsidiary somewhere to a given person and ascertain their credentials for a top management position within the Company by seeing if they really havethe nerve for such a role.
Tsukuda─The development of young employees
is also important. I think it is good to allow employees to take on challenges proactively and to letthem fail. We can encourage them to give it a go, belenient with them even if they do not succeed, andValue Creation

Sustainability

Data Section

give them another chance. It’s the same as hitting
an out of bounds shot in golf. You’re not going to
make that same shot a second or third time. If you
hit into the rough, then you are going to learn how
to get out of it. And in practicing this, you develop
resilient individuals. It is as Isoroku Yamamoto once
said, “They won’t listen to you unless you show
them how to do it, teach it, let them try it, and thengive them positive feedback on their performance.”
Imai─I know people would not like me to maketoo many comparisons with “the olden days,” butwhen looked at from our generation, I understandthat companies in general these days are dealing
with some deeply rooted problems, particularly inregard to new employees in technical positions, because some of them are unable to do the math. In
cases like these, the only option is to have them gothrough the learning process again at each company. But, since it is they who will shoulder the burdenof guiding this country’s future, I guess we have no
choice but to try and get behind them.

Towards Discussions That Serve as Guidance for Tomorrow
Tomita─I really love the Company’s Basic Principles; “Strict Preciseness” and “Transparency.” A company will l ast fo rever and b e sound with stric t
preciseness, while the corruption of an organizationand the downfall of a company start from a lack oftransparency. The mantra of “Strict Preciseness” and“Transparency” is something that is repeated whenever issues arise, and not just by management, butalso among we Outside Directors too. Furthermore,
the Company’s “lifetime maintenance” initiative isalso a source of pride for the Company’s employees
and, again, for we Outside Directors also.
Tsukuda─When I worked as the head of Nagoya
Equipment Manufacturing af ter being appointed
director of Mitsubishi Heavy Industries, Ltd. (hereinafter, Mitsubishi Heavy Industries), we considereddeveloping a large hydraulic injection molding machine that would be hybrid in terms of using an electric servo motor for clamping and positioning that
required precision and speed. When I visited FANUC
Headquarters to ask if they were able to supply
large servo motors, which were key parts in our development project, the late Honorary Chairman, Dr.
Seiuemon Inaba said to me, “We are unable to meetyour low volume request of around 100 units a year,
but we are willing to provide instructions on how tomeet the specifications required by Mitsubishi Heavy
Industries to the small factory that makes servo motors near Nagoya.” After that meeting, we were able
to complete the development of the hybrid machine
in a short period, with the machine going on to become our flagship product. What impressed me at
the time was that Dr. Inaba was extremely generous
when it came to people who attempted to push theboundaries of technology. The background to theCompany’s development of technologies was a willingness to embrace the possibility of failure.
Imai─ At the same time, the Company has been extremely solid thus far, and been managed in a waythat has produced tremendous growth and profit. I
think that is a result of all the hard work of the current
officers and directors in coming up with answers to
problems facing the Company in an environment
where there were many great managers and engineers, not least the late Honorary Chairman, Dr. Seiuemon Inaba. Companies with such high profitability as
FANUC are extremely rare, even in Japan. The Boardof Directors will continue to have lively discussions
regarding the growth strategy it will draw up going
forward, for FANUC to grow from its current positionof a “Small Giant.”
Tomita─True enough, we have been judged to bea good company so far, but, even though that issomething we can be proud of, we must continue to● Outside Director (Audit and Supervisory Committee Member) Mieko Tomita

adapt and evolve. There are various discussions going on regarding what direction this should take. For
myself, being something of a novice in technicalmatters, I try to proactively participate as a legal
professional.
Tsukuda─The title of the company history published by Mitsubishi Heavy Industries in 1990 was“To the Sea, Land, and on to Space” (Umi ni Riku ni
Soshite Uchu e). Till the middle of the Showa Era,
the company’s main business was shipbuilding, but
afterwards, the focus pivoted towards other areas,such as turbines and internal-combustion engines
for onshore plants, as China and South Korea entered the shipbuilding business, and took over ourrole as a major player in the industry. Now, the company has started to engage in developments for theaero space industry. Such transitions may only serve
as reference, but our Company has superb numerical control technology. I think we should look to further discussio ns aroun d grow th strategies thatleverage these strengths of the Company.

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Sustainability

Dialogue with Stakeholders
Stakeholders

Customers

Communication
methodFrequency

Content

Sales
representatives

As needed

Collect and provide feedback on demands and requests to
FANUC. In addition, give customers tours of factories toenhance their understanding about new products anddevelopment schemes.

ServiceAs needed

More than 2,300 service personnel and support staff members
around the world provide telephone support, onsite customer
support, and maintenance parts management.

MembershipwebsiteAs needed

Answer customer inquiries by email and chatbot. In addition,customers can purchase maintenance parts thorough ourmembership website.

New products
Every year
open house show

Invite customers and introduce our latest products. Cancelled
our new products open house show in 2020 and 2021 due tothe COVID-19 pandemic, but in 2022 it was conducted underadequate infection prevention measures.

Exhibitions

As needed

Exhibit at trade shows in Japan and abroad to introduce ourlatest products.

ESG rating

As needed

Answer questionnaire for EcoVadis, CDP etc.

Labor union

At least
twice amonth

Hold discussions, negotiations, and exchanges of opinions
through regular monthly meetings and committees, quarterly
meetings, and labor-management negotiations.
Conducted these activities online in 2022 due to the COVID-19
pandemic, as in the previous year.

Organizational
culture survery

Every year

We conduct an “organizational culture survey” to ascertain
employees’ awareness. Each organization uses the results of thesurvey to identify organizational issues and implements
countermeasures in a PDCA cycle to consistently improve theworkplace environment and enhance employee job satisfaction.

General meetingof shareholders

Annually

Report on business reports, consolidated and non-consolidated
financial statements, and audit results, and deliberate and makeresolutions on matters to be resolved after Q&A.

Financial results
briefing

Quarterly

Hold briefings and telephone conferences on the contents offinancial results and business forecasts, as well as engage in
Q&A sessions.

Individual
dialogues withinstitutional
shareholders

As needed

Explain FANUC’s initiatives and governance, and exchange
opinions.

ESG disclosure

As needed

Publicize ESG activities, as needed.

Employees

Shareholders

Communities

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FANUC CORPORATION

Coexistence with
As neededcommunities

Contribute to the revitalization of the local economy through tax
payments, job creation, and having businesses with local
companies.

FA Foundation

As neededAward prizes to recognize research results on factory
automation (FA) and industrial robot technology.

Economic andindustry
associations

As needed

Participate in the planning and implementation of various
initiatives by organizations.

Public-private
joint projects

As needed

Participate in various public-private joint projects and promotetechnical exchanges.

Profile

Value Creation

Sustainability

Data Section

FANUC’s Approach to Sustainability

Sustainability Basic Policy
The FANUC Group will continue to provide indispensable values throughout
the world in the field of factory automation through unceasingly creating technical innovations, abiding by our basic principles of “Genmitsu (Strict Preciseness)” and “Tomei (Transparency).”
Our goals are to enhance our value as a company and to contribute to building a sustainable society.

This mark consisting of a “tree leaf” and an “infinity”
symbol represents FANUC’s commitment to creating asustainable society by overcoming environmental andsocial challenges through unceasingly creating
technological innovations.

Two Perspectives on Sustainability

1 - Energy Saving & Carbon Neutrality
Reducing GHG Emissions

Reducing Power Consumption

Utilizing Green Energy

2 - SDGs
Providing Solutions to Improve Working Conditions,
Increase Productivity, and Waste Reduction

Initiatives for Sustainability
Promote Various Initiatives to Achieve Carbon Neutrality
Support User’s SDGs through Business Activities and Product Functions

Sustainability Promotion Framework
At the “Sustainability Committee” chaired by theR e p r e s e n ta t ive Di r ec to r , Pr e sid e n t , we wil ldeliberate and make decisions on important
policies and measures related to sustainability, andreport to the Board of Directors.

Board of Directors
MonitorReports

Sustainability Committee- Committee Chairman: Representative Director, President- Administrative office: Public Relations & Shareholder Relations Department
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Sustainability

Initiatives in FA Business
Reduction of energy consumption related to machining
Reduces energy consumption in CNC, servo and laser system.

⃝ Development of low power consumption CNC⃝ Power source regeneration returns deceleration energy to the power supply for effective use (35% reduction compared to the resistance regeneration method in our example)⃝ Amplifier loss reduction through the application of low-loss power elements (loss reduction has beenachieved continuously since the past and is currently up to 28% less than in 1995)⃝ Motor loss reduction by high-speed current control⃝ Laser power saving function

Reduction of energy consumption related to operating timeHigh speed drilling and tapping⃝ Control technology for cycle time reduction reduces operating time of auxiliary equipment, etc.
Drilling and tapping processes are sped up through the optimization ofmachining paths
Cycle time reduction through speed control that optimizes cutting loadHandling of the latest machining tools and technologies, such as turning through a reciprocating motion
Improved efficiency of peripheral device operation, etc., through fastersequence control

Reduction of warm-up timeStandard
With AI thermal displacement compensation
Accuarcy⃝ AI thermal displacement compensation using machine learning
corrects thermal displacement immediately after machine power-on. Reduces warm-up time and power consumption. (In theexample right, warm-up time is reduced to 1/6.)

Tolerance
5min ※
30min ※

Reduce warm-up timeStandard warm-up time

Reduction of energy consumption in whole machining process⃝ Displays supplied power and power recovered by power regeneration in real time on the power consumption
monitor⃝ Provides an energy saving level selection function that allows selection of operation settings that prioritize machining time or power consumption, enabling confirmation of power consumption and machining time. Levelcan be set by confirming the power consumption amount and machining time on the CNC screen⃝ Visualizes operation status and power consumption through MT-LINKi and supports optimization of machine
operation⃝ Reduces power consumption during trial machining by utilizing machining simulation to reduce trial machining

35

FANUC CORPORATIONProfile

Value Creation

Sustainability

Data Section

Initiatives in ROBOT Business
Energy Saving and Carbon Neutrality⃝ Reduce and visualize power consumption through energy-saving
functions such as power regeneration, weight reduction, etc.
⃝ Disperse peak power by night operation using robots
Support⃝ CO2 emissions are reduced by reduction of power consumption,and of exhaust gas during transportation due to reduced weight.
⃝ Ratio of clean energy is improved by reduction of demand forthermal power generation through power dispersion.
⃝ Resource efficiency in production is improved.

EnergySavingProtect Employment and Factories⃝ Maintain and improve productivity by high performanceand collaborative robots⃝ Improve operating rates
・ Reliable
・ Predictable
・ Easy to Repair
Support⃝ Employment and factories are protected through solution oflabor shortage and productivity improvement by robots.

Easy to Use⃝ Robots developed in pursuit of ease of use
・ Collaborative robots that can be used safely without fences
・ Intuitive UI・ Easy-to-use application functions
・ PC simulation that simplifies system integration
・ Easy connection with machine tools
Support⃝ Automation of manual-labor-based production sites⃝ Mastering of robot operation by more people⃝ Introduction of robots into more production sites

Safety and Release from Dangerous, Dirty, Difficult Tasks⃝ Alternative means to do dangerous, dirt y, dif ficult, or
monotonous tasks⃝ Certified safe design
Contact stop safety function and design of collaborative robots
Position and speed monitoring function etc. based on
redundant design
Support⃝ People can have a more productive and decent work in
comfortable, safe, and secure environment by leaving
dangerous, dirty, difficult, or monotonous tasks to robots.
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Sustainability

Initiatives in ROBOMACHINE Business
ROBODRILL initiatives⃝ Improved productivity
High machining performance...Reduces cycle time with a unique fixed cycle that ensures smooth and lean operation.
High operating rate...ROBODRILL-LINKi collects and visualizes operating information,
contributing to improved operating rate and work efficiency.
Ease of use...Utilization of dedicated G-code significantly reduces programming time
⃝ Power consumption reduction
Power source regeneration...Motor regenerative energy is returned to the power supply for reuse.
Energy saving functions...Various energy saving functions minimize power consumption during standby.
Power consumption monitor...Visualizes power consumption and can be centrally monitored with ROBODRILL-LINKi.
⃝ Waste reduction
Rechargeable battery unit … Reduces disposal of backup batteries, making the machine maintenance free.
Longer spindle life…Environmental resistance has been improved by adding air purge to the rear side of thespindle.
Longer life of each spindle cover…Each spindle cover has been reinforced to improve durability.

ROBOSHOT initiatives⃝ Improved productivity
High molding performance … Simultaneous operation reduces cycle
time.
High operating rate … ROBOSHOT-LINKi2 can be used to analyze
the operating rate and examine ways to improve it.
Ease of use … Outstanding operability achieved by a large screen
display unit.
⃝ Power consumption reduction
Power source regeneration … Motor regenerative energy is returned to the power supply for reuse.
Barrel heat insulation cover … Full enclosure with heat insulation material suppresses heat dissipation fromthe heater and reduces power consumption.
Power consumption monitor … Analyzes power consumption and supports energy saving activities.
⃝ Support for environmentally friendly resins
Recycled resins … The deep groove of the plasticizing screw enables stable measurement of recycled resin(crushed material).
Biomass resin … Molding of biomass-derived resin contributes to carbon neutrality.

ROBOCUT initiatives⃝ Improved productivity
High machining performance … High-speed machining conditions improvemachining speed.
High operating rate … Operating rate is improved by high wire connection
rate with AWF3 automatic wire connection.
Ease of use … Guidance function prevents operation errors and supports
lean operation.
⃝ Power consumption reduction
Discharge power regeneration … Energy stored in the feed cable when generating discharge pulses is regenerated and reused in the DC power supply of the discharger.
Sleep mode … Minimizes power consumption during standby to reduce unnecessary power consumption.
Power consumption monitor … Visualizes power consumption to support energy saving activities.
⃝ Longer life of expendable parts
Longer life of filter … Filter life is extended through flow control.
Extended electrode pin life … Contact pressure between wire and electrode pin is increased to suppress
wear caused by electrical discharge, extending the life of the electrode pin.
ROBOCUT-LINKi … The usage of expendable parts can be monitored remotely.

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FANUC CORPORATIONProfile

Value Creation

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Data Section

Targets and Initiatives to Achieve Carbon Neutrality
Responses to climate change
To achieve carbon neutrality, FANUC has set mid-term and long-term targets for reducing greenhouse gas (GHG)
emissions and is promoting efforts to achieve them.

Targets for reducing GHG emissions
FY2050 Target• Scope 1, 2 ： Carbon neutral by FY2050

FY2030 Targets• Scope 1, 2 ： 42% reduction by FY2030 (in comparison with FY2020)• Scope 3 ： 12.3% reduction of emissions due to the use of sold products by FY2030(in comparison with FY2020).

FANUC’s GHG emissions reduction targets have been certified by the SBT initiative.
FY2030 targets are certified by the SBT (Science Based Targets) initiative.

Regarding Scope 1 and 2, part of the power consumed in the FANUC
Headquarters’ area, Mibu factories and Tsukuba factories will be renewableelectricity, and other sites will also switch to using renewable electricity in thenear future. Furthermore, solar panels will be set up, and measures to saveenergy will be further accelerated to reduce GHG emissions resulting from ourbusiness activities.

FANUC Headquarters

Mibu Factories

Regarding Category 11 (Use of sold products) of Scope 3, FANUC will contribute to reducing the emissions byenhancing of energy saving features of FA, ROBOT and ROBOMACHINE products.

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Sustainability

Initiatives for TCFD Recommendations
Disclosure in Accordance with TCFD Recommendations
Since the adoption at COP21 (21st Conference of theParties to the United Nations Framework Convention
on Climate Change) of the Paris Agreement, movement
towards a de-carbonized society is spreading. The
FANUC Group with its business activities expandingaround the world promotes these initiatives as we recognize climate change as a critical business challenge.
In the meantime, FANUC expressed its support for theTask-Force on Climate-related Financial Disclosuresand its recommendations (hereafter, TCFD recommendations) in December 2021.
Further, we would like to utilize the framework of TCFD
recommendations, and continue enhancing the quality
and amount of disclosures to promote climate change
initiatives still further, and contribute to achieving a sustainable society.

Governance
FANUC recognizes climate change as a critical businesschallenge.
At the “Sustainability Committee” chaired by the Representative Director, President, we will deliberate andmake decisions on important policies and measures related to climate change, and report to the Board of Directors. Based on the reported content, the Board of
Directors will supervise to check whether identificationof risks and opportunities, and measures related to climate change are promoted appropriately.

Board of Directors
MonitorReports

Sustainability Committee- Committee Chairman: Representative Director, President- Administrative office: Public Relations & Shareholder Relations Department

Strategy
FANUC conducted a scenario analysis targeting midterm (2030) and long-term (2050) with a 1.5℃ scenario, 2 ℃scenario, and 4 ℃scenario on the FA Business,
ROBOT Business, and ROBOMACHINE Business to
identify the risks and opportunities related to climatechange, and to check how these will impact the FANUC Group businesses. Regarding the scenario analysis, we referred to IEA NZE, IPCC RCP1.9, etc., for 1.5℃
, IEA SDS, IPCC RCP2.6, etc., for 2 ℃ , and IEA STEPS,
IPCC RCP8.5, etc., for 4℃. For each scenario, we identified the risks and opportunities related to climatechange, and quantitatively and qualitatively examined

39

FANUC CORPORATION

and evaluated the impact on the business.
Among these, we identified the following risks that will
have a significant impact on the businesses: “Increasein costs due to introduction of carbon tax,” “Increase incosts due to the rise in raw material prices,” and “Decrease in demand for a part of FANUC products dueto the consumer behavior change and shift to EV/
FCV.” We also identified the following opportunities:“Increase in demands for FANUC products due to energy saving and robotization,” and “Increase in demands for FANUC products due to the shift to EV/
FCV.”Profile

Indentified risks and opportunities

Transition
risks⃝ Introduction of carbon tax will increase costs.
⃝ The rise in raw material prices will increase
costs.
⃝ Consumer behavior change and shift to EV/FCV
will decrease demand for a part of FANUC
products.

Physicalrisks⃝ Increasing severity of natural disasters will
damage production sites, etc., and as thisnegatively impacts production. recovery costs
will increase.

⃝ Energy saving/robotization will increase demand for FANUC products.
⃝ The shift to EV/FCV will increase demand for
FANUC products.
Opportunities⃝ Demand for FANUC products capable ofworking under harsh operating and transportation environments will increase due to the
influence of rising average temperature.

In the 1.5℃ and 2℃ scenario, the world is expected
to undergo major social changes as it transitions to
de-carbonization. There is a possibility for costs to increase due to the introduction of carbon taxes andrise in raw material prices, but we believe that we
can expand the FA Business, ROBOT Business, andROBOMACHINE Business as energy saving/robotization and the shift to EV/FCV will expand. The 4℃
scenario does not promote low carbonization, andincreasing severity of natural disasters will be expected due to climate change, such as increases in average temperature. This creates a potential increase in

Value Creation

Sustainability

Data Section

Responses to identified risks and opportunities⃝ Set up mid-to long-term goals for reducing greenhouse gas (GHG) emissions, andpromote energy saving and introductionof renewable energy, etc., in business activities to reduce GHG emissions.
⃝ Promote the support of business continuity plan (BCP) (Multiple production sites
and suppliers,etc.)⃝ Promote the development of productsthat contribute to customers’ energy saving/robotization, and that meet the demand from the shift to EV/FCV.
⃝ Promote the development of productsthat can maintain high performance andhigh reliability under harsh operating andtransportation environments.

recovery costs as production sites, etc., will be damaged, having a negative impact on production. For
these reasons, we will continue to promote the support of our business continuity plan (BCP), and deal
with physical risks.
The findings of the scenario analysis on FA Business,
ROBOT Business and ROBOMACHINE Business rated
these businesses as highly resilient in all scenarios
used for the analysis. We will further promote initiatives in order to meet the challenges of identified
risks and realize these opportunities in the future.

Risk Management
To address risks that may hinder the continuity of ourbusiness, the enhancement of our corporate value, orthe sustainable development of our corporate activities, FANUC has established a Risk Management
Committee and risk management policies, and weare conducting appropriate risk management under
the supervision of the Board of Directors. The risks ofclimate change will also be placed in the rules, andmanaged.

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Sustainability

Metrics and Targets
The FANUC Group’s greenhouse gas (GHG) emissions (Scope 1, 2 and 3) in FY2021 are as follows:

Scope 1 + 2 (145 kt-CO2)

1%

Scope 3 (25,933 kt-CO2)

99%

The breakdown of Scope 3 is as follows
Category

Emissions (t-CO2)

Category 1 Purchased goods and services

1,874,563

Category 2 Capital goods

26,079 kt-CO2

Fuel-and energy-related activities(not included in Scope 1 or 2)

30,420Category 4 Upstream transportation and distribution

158,134

Category 5 Waste generated in operations

3,697

Category 6 Business travel

1,329

Category 7 Employee commuting

3,573

Category 3

Category 8 Upstream leased assets−

Category 9 Downstream transportation and distribution−

Category 10 Processing of sold products−

Category 11 Use of sold products
Category 12 End of life treatment of sold products

FANUC CORPORATION

23,699,697
2,021

Category 13 Downstream leased assets−

Category 14 Franchiseｓ−

Category 15 Investments

−

Total

25,933,100

FANUC has set up a long-term target of reducing
GHG emissions from the business activities of the
FANUC Group (Scope 1, 2) to zero by FY2050.
To achieve this long-term target, we have set a midterm target of 42% reduction of the same emissions
by FY2030 (in comparison with FY2020). Regarding
Scope 3, we aim for 12.3% reduction of emissions
due to the use of sold products (Category 11) by
FY2030 (in comparison with FY2020).
These mid-term targets are certified by the SBT (Science Based Targets) initiative.
Scope 1 and 2 for FY2021 were 5.7% lower than thebase year.
The main reason is that a part of the electricity used

41

159,666in the Headquarters area, the Mibu Factories, Tsukuba Factories, etc. was switched to electricity derived
from renewable energy sources. We plan to installand operate solar panels in the Headquarters area
and the Mibu area in FY2022, aiming for further emission reductions.
In FY2021, emissions due to the use of sold products
for Scope 3 (Category 11) were 42.2% higher thanthe base year. This was mainly due to a significant increase in the sales of our products. We will continue
to aim for emission reductions by further improving
the energy saving performance of our FA, ROBOT,
and ROBOMACHINE products.

Profile

Value Creation

Sustainability

Data Section

Enhancing Employee Engagement
Creating a Fulfilling Workplace
Basic Approach
A work environment in which each employee can develop a career vision based on the values they cherish and continue to grow to fulfill that vision isnecessary to improve the job satisfaction of our employees.
As a mechanism for this purpose, we are currently
working to create opportunities for dialogue within
the workplace to support individual career development and growth through the implementation ofrank-specific trainings, and we have also introduced
an internal recruitment system to match departmentsthat recruit personnel with employees who plan toachieve their career goals.
In addition, we are continuously engaged in efforts toimprove organizational issues to create a fulfilling
workplace through the implementation of a yearlyorganizational culture survey.

Initiatives■ Career Development Support■ Internal Recruitment

We are working to create opportunities for dialogue
between supervisors and subordinates through training programs in order to support the career development of each one of our employees. We provide
training for supervisors to improve their management
and leadership skills, conveying the importance of
supporting the growth of their subordinates throughinteractive dialogue, as well as to acquire skills andknowledge that can be utilized in dialogue situations
with subordinates. For subordinates, we provide“young employee training” to implement growthplans based on values they cherish as well as“mid-career employee training” to pursue areas of
specialization as professionals, creating a mechanism
for them to share their respective career visions with
their supervisors and receive support from them.

We conduct internal recruitment where departments
in need of new human resources clarify the requirements they are seeking and recruit personnel internally. With this system in place, employees areencouraged to take on new challenges to achieve
their own career goals, thereby revitalizing the organization and enhancing individual motivation.

■ Organizational Culture Survey
Every year, we conduct an “organizational culture
survey” to ascertain employees’ awareness. Each organization uses the results of the survey to identify
organizational issues and implements countermeasures in a PDCA cycle to consistently improve theworkplace environment and enhance employee job
satisfaction.

Department head training

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Sustainability

Development and Training of Employees
Basic Approach
FANUC supports the growth of our employees inconsidering them as being human resources who areindispensable for FANUC’s business activities andwho enhance the company’s value.
In order to realize sustainable growth as a company
in the future, we believe it is necessary to provide
employees with opportunities to deepen theirunderstanding of our basic principles and organizational vision, to act autonomously as strong individuals who recognize their own role, as well as to learn
and grow according to their own career aspirations
and strengths, and to maximize their strengths
through mutual interaction.

Initiatives
FANUC strives to enhance the value of our employees by providing support for their individual growthand career development.
As an educational system for this purpose, we are
currently providing executive employees with trainings to improve their management and leadership in
the workplace according to their responsibilities. Furthermore, we are conducting training for mid-career
employees to pursue their areas of expertise as professionals, and training for young employees toimplement growth plans based on the values theycherish, and we are working to support their careerdevelopment and growth through dialogue within theworkplace.
We also conduct trainings for employees to givethem the specific knowledge and skills that are required in the individual workplaces. For example, theService Division strives to improve customer satisfaction by providing technical education to service personnel in Japan and overseas.

■ Current Education and Training Framework
Training for All Employees
Training Name
Diversity training

Trainee

Content

Encourage understanding of the significance and importance of promoting diversity, fosterAlland instill a sense of ownership, and communicate key points that each individual should be
employees
aware of and work on in their own workplace

Acquire basic knowledge needed to prevent harassment and create a friendly work enviHarassment prevention All
employees ronment
training
Promote understanding and increase awareness of mental health issues, as well as deepen
Mental health training All
employees understanding of the care expected of managers for workplace members(line care/self-care)
Raise employee security awareness and literacy, with the aim of preventing information
Information security All
employees security incidents
education

Compliance education

We post various policies and guidelines on our company-wide portal site, and we are working to foster compliance awareness by raising consciousness and dissemination activities
All
through various types of education.
employees In 2022, we conducted compliance training on whistleblowing for FANUC officers and employees (including contract employees and part-time employees) based on the revised
Whistleblower Protection Act.

Management and Leadership Improvement
Training Name
Training for divisionhead

Trainee

Content

All division Improve skills required to overcome management issues that should be considered byheads
management leaders (management skills, growth strategy skills, life skills)

All
Training for department
Establish management and leadership styles to lead the workplace based on awareness ofdepartment
head
the role of one’s own department from a company-wide perspective
heads
Training on workplace All section Learn the basics of management to enhance organizational capability as a manager of anheads
organization and maximize their section’s outcomesmanagement
Training for new
executive employees

43

FANUC CORPORATION

Employees
promoted Learn leadership for achieving results as a team, with the aim of deepening their own experto executive tise and solving issues that they are addressing as the FANUC Grouppositions

Profile

Value Creation

Sustainability

Data Section

Career Development
Training Name
Mid-career
employee training

Trainee

Content

Cultivate an awareness as a “professional” who plays a central role in the execution of workGeneral mid-career
place operations, and pursue their “unique” area of expertise to lead the workplace as aemployees
front-runner.

Young employees inYoung employee career-track positions Foster independent human resources who can proactively approach their work from their own
training(three years sinceawareness of the expectations of others, their personal strengths, and their core values
joining the Company)

Management Capability Improvement for Manufacturing Sites
Training Name

Trainee

Content

Raise awareness of one's role as a supervisor at the frontline of the manufacturing site and imTeam leader training All team leaders
prove the knowledge and practical skills required to manage a workplace as a leader
Young technical
Cultivate an awareness as a member of the organization who is responsible for the execution ofYoung technical employees (7 or 8
manufacturing operations and the preservation and enhancement of organizational strength,
employees training years with theand connect it to actions for encouraging others and resolving work issues.
Company)

New Recruit Training
Training Name

Trainee

Content

Learn basic knowledge as employees of FANUC, such as its business, history, basic principles,
All new-graduate
New Recruit Trainorganizational structure, and corporate culture.
recruits and miding
Explain and require compliance with governance and various other policies as well as human
career hires
rights policies.
Etiquette
training

All new-graduate Acquire business manners to facilitate work and become a trusted corporate person throughrecruits
appropriate behavior and communication as a member of society.

Foreign Language Training (English and Chinese)
To help individual employees enhance their skills according to the language proficiency requirements of their work, in addition to the
TOEIC exam, we have expanded our training options for language skill acquisition, including business English, English conversation, andChinese conversation.

Division-based Training
Besides the training programs described above, each division has their employees attend external workshops and provides training
sessions for them to acquire the particular knowledge and skills required for their assigned tasks.

Team leader training

New recruit training

Group discussion

Lectures by external instructors

Lectures by management

INTEGRATED REPORT 2022

44

Sustainability

Education and Training for Service Engineers
The Service Division conducts cultivation and educational training for service personnel. At FANUC, we
believe that improving the level of the services provided by our service personnel is of utmost importance. As such, we are working to provide high-quality
services globally through the cultivation and education of our service personnel.
In addition to etiquette training for all new-graduate
recruits, we strive to further improve customer satisfaction by giving consideration to personal appearance, behavior, and speaking manner, based on theService Engineer Code of Conduct.
In addition, we have started an initiative to transfer
young service personnel to the sales and technicalsupport departments (for a designated period of
about two years) in order to cultivate a multifaceted
viewpoint, which will lead to career advancement
and improvement of duties, by allowing them to see
their own departments from the outside.
Apart from this, we would like to further improve theefficiency of current duties by appointing younger
field service personnel for call center duties, which
until now we thought could only be performed byveterans, using databases and reception systems.
As for the new employee training, in 2022, as in
2021, we set up a videoconferencing system available at all times in one of the classrooms at FANUC
ACADEMY of FANUC Headquarters, allowing theHino Branch and FANUC ACADEMY to view eachother’s activities. We also provided all employeeswith a tablet and laptop computer immediately after
they joined the Company. In addition, we provided
our new employees with basic knowledge by sharing
with them the e-Learning contents produced by FANUC ACADEMY and other resources prepared inhouse by individual departments.
Currently, new employees watch the e-Learning contents in their free time for preparation and review.

45

Over the approximately five months after joining theCompany, we have provided technical training, basic
education as a working member of society, and safe
driving education by an external lecturer. For future
required qualifications, we have started providing
special education for operating industrial robots,
low-voltage electricity, full harnesses, etc., from thetime they join the Company so that they can safely
carry out their duties.
Moreover, in order to drive company-owned vehicles
on a daily basis, they attend courses such as on-sitetraining from local police departments and “safe driving based on accident examples” from non-life insurance companies to improve their safety awareness.
(Domestic Service Division)
Because our business is essentially based on client
visits, we conduct not only general information security training, but also training on client information
management, in order to ensure thorough information management.
Similarly, for technical training, safe driving education,and lessons on safe working for service personnel already active in the field., we conducted online education by connecting FANUC Headquarters, Hino
Branch, and each service location throughout Japan.
In the past, we have had business trip to trade shows
and other events, but since we are trying to minimize
business trips to distant locations during the
COVID-19 pandemic, our service personnel are also
watching the customer-oriented online distribution toenhance their product knowledge.
For those who were not able to participate in that either, we are also working on online training courses.
We maintain a high level of service overseas througheducation and training on maintenance technics byusing videoconferencing systems, on-demand seminars, and video materials to overseas service personnel.

Technical education at FANUC

ACADEMYFANUC ACADEMY provides technical education to service personnel Japanese and overseas almost every week, utilizing training programs thatincorporate our customers’ requests.

Technical education at group companies

We also provide technical education to service personnel at FANUC America,
FANUC Europe, and other group companies With regard to education on newmodels and advanced technology, the persons in charge participate in programs offered by FANUC ACADEMY to acquire the necessary skills, and deploy
them within their offices after returning to their countries.

Introductory training and follow-up training of new employees

In Japan, we provide intensive education to new service personnel for four tofive months, at the time of onboarding. Service personnel hired overseas arealso given training in a planned manner at the Headquarters.
Furthermore, follow-up tIn Japan, we provide intensive education to new service personnel for four to five months, at the time of onboarding. Service personnel hired overseas are also given training in a planned manner at the
Headquarters.
Furthermore, follow-up training is provided to new hires one year after joining theCompany.raining is provided to new hires one year after joining the Company.

Winter intensive training (Japan)

In the winter, FANUC ACADEMY conducts intensive skill improvement training, mainly with regard to new products, so that all service personnel areable to provide high-quality service based on FANUC’s global standards.

FANUC CORPORATIONProfile

Value Creation

Sustainability

Data Section

Implementation Status of Education and Training for FY2021
Number of FANUC ACADEMY participants

Domestic service personnel: 236
Overseas service personnel: 96

Number of trainees trained in groupcompanies

Overseas service personnel: 828

Number of FANUC ACADEMY training
hours (annual average per participants)

Domestic service personnel: 20.83 hours

Award Programs
On July 1 every year, at the Anniversary of Foundation Ceremony, FANUC presents awards to groups
and individual employees who have made significant
contributions to the Company’s business performance or who have undertaken outstanding activities
that serve as a model for others. Other awards include those for employees who have created patented inventions and other inventions that are beneficial
to our business.
In 2021, we presented the Special Achievement
Award, Achievement Award, Invention Award, andOutstanding Safety Workplace Award.
The awardees received a certificate of commendation and cash reward, and the Special Achievement
Award recipient was also presented with a medal.
The Special Achievement Award and Achievement
Award are often given to teams that cross businessdivisions and administration divisions, signifying thepractice of “one FANUC.”
The Outstanding Safety Workplace Award was presented to workplaces that achieved remarkable results in the elimination of occupational accidents.

As for services, at the annual Global Service Conference, we present awards to the top service personnel from all over the world who have provided
excellent service in the past year. In 2 0 2 2, we presented awards to 1 1 individuals or groups from ten
companies.
For sales, we present awards to the top sales personnel ans top sales support personnel.
For inventions, devices, and designs made by our
employees, we ensure that reward payments are
made at the time of registration in accordance with
our in-house rules for handling inventions, devices,and designs. In addition, we also offer the same rewards for confidential inventions. Furthermore, every
year, among inventions, devices, and designs thathave been registered for 5, 10, and 15 years, weevaluate those that have made a significant contribution to the Company’s business performance, and weoffer awards and reward payments at our Company’s
Anniversary Ceremony. By enhancing this Invention
Reward and Award Program, we work to motivate
employees involved in research and development.

Employee Engagement in Group Companies
FANUC America Corporation
At FANUC America, we seek our employees’ feedback in our pursuit of creating a desirable employee
experience and continuing to attract and retain top
talent. We empower them to share feedback in anannual survey which generates high-quality information that helps us understand how our employees
feel at work, where we need to improve our employee experience and what solutions we can implement.
Managers whose team includes five or more survey
respondents receive specific team reports. These reports are used to drive discussions at the group leveland further refine our understanding of the feedback
and development of action items supporting employee engagement.
In 2021, 72% of our employees participated in thesurvey. Employees’ opinions of communications within
the Company, of their job and of the Company continued at the same high levels as measured in previous
years. Favorable responses to questions about theability to accomplish career objectives at FANUC

America increased from 83% to 85%, the opportunity
for promotion / advancement within the company increased from 63% to 66%, providing a supervisor/
manager they can respect increased from 90% to 91%
and treating employees with respect and dignity also
increased from 90% to 91%. Talent development continues to be an area of focus.
FANUC America also participates in a survey that
identifies Top Workplaces in the Southeast Michigan
and Chicago regions based on the results of an independent employee satisfaction survey. FANUC
America headquarters has
been a winner of thisaward for the past 10
years, and for 2018-2021,
FANUC America’s Chicago
office was also named as a
Top Workplace winner.
2012-2021 Detroit

2018-2021 Chicago

INTEGRATED REPORT 2022

46

Sustainability

Promotion of Employee Diversity & Equal Opportunity
Basic Approach
FANUC believes that (1) each individual should be
able to respect each other’s individuality and maximize their abilities, and (2) individuals and the organization should grow together by integrating individual
strengths as organizational activities, thereby creating

new value for society. Through the promotion of diversity and inclusion, FANUC will work to create anenvironment that accepts and provides equal opportunities for the diversity of our employees.

○ Diversity & Inclusion Statement
Diversity is the cornerstone of “one FANUC” and the driving force of our growth
Each of us has diverse values, sensibilities, and abilities.
We believe that we can make FANUC develop and grow even stronger by combining our strengths as“one FANUC” through respecting each other’s differences as “individuality” and by maximizing our abilities and playing an active role.
The objective of FANUC’s diversity and inclusion is to connect the strengths of individuals and making themthe strengths of the organization, enabling individuals and the organization to grow together sustainably.
The FANUC Group provides indispensable value throughout the world in the field of factory automationby promoting diversity, and will continue to be a company that is trusted by all stakeholders.

○ Diversity & Inclusion Action Policy⃝ We aim to create an environment in which all employees, regardless of gender, nationality, race, religion, age, disability, sexual orientation, etc., have a sense of responsibility as members of the FANUC
Group and can maximize their abilities.
⃝ We will provide support so that each employee can play an active role and continue to grow throughtheir own work.
⃝ We respect the individuality of every employee, and by bringing together their strengths as “oneFANUC,” we aim to build a corporate culture that is creative and full of vitality, and to become acompany in which all employees can contribute to the development of society.

Initiatives❶ Implementation of Diversity Training

FANUC positions the promotion of diversity as a key
issue for the Company’s sustainable growth and willcontinuously hold diversity training for all employees
in order to foster an organizational culture in which
diversity is accepted by all employees. The training
aims to foster and instill a sense of ownership
through an understanding of the significance and importance of diversity promotion, as well as to convey
key points that each individual should be aware of
and work on in their own workplace in order to leadto concrete actions on their part.

❷ Gender-Related Initiatives

Promoting the Active Participation of Women
In addition to striving to ensure that employees canplay an active part in the workplace regardless offactors such as nationality and gender, etc. FANUC
has enhanced various systems including maternity
leave, child-care leave, and shorter working hours until children finish elementary school, so that womencan pursue their careers without interruption. In this47

FANUC CORPORATION

manner, FANUC fully supports the active participation of women in the workplace.
In April 2021, we renewed our General Employer Action Plan Based on the Act on Promotion of Women’sParticipation and Advancement in the Workplace,and we are actively promoting the recruitment of
women, with the aim of increasing the percentage offemale employees. Under this plan, FANUC has established a target of 1 0% of regular female employees for the Company as a whole. This numericaltarget was set in consideration of the small numberof women in the population of students in the mechanical, electrical, and information fields, which are
the focus of our recruiting activities.
To achieve these goals, we are promoting efforts
such as having female employees visit schools andhandle company visits by female students when recruiting for technical positions, and promoting efforts
to create opportunities for women to discuss workand actual lifestyles. We are also implementing initiatives such as external seminars to support career development for female employees.
Recently, women have increasingly been playing

Profile

active roles as executives in various fields, with two
female employees promoted as officers.
〈Support for Balancing Work and Home Life〉
At FANUC, 100% of the female employees who haveused the child-care leave system during the past
three years have returned to work, which confirmsthat the Company’s working environment is comfortable for women. Furthermore, we opened a nurseryfor employees’ children in the Headquarters’ area in
April, 2019, using the company-initiated nursery business system, supervised by the Cabinet Office. To reduce total actual working hours, we have set theannual paid leave-taking rate to at least 80%, so paid
leave can be more easily used to balance work andhome life.
As an initiative to encourage male employees to takechild-care leave, we have posted on the companywide portal site Q&A and guidance documents regarding leave systems for child care and nursing care
as well as support offered by the government. A help
desk has also been set up in the Human Resources
Department to support the balance between workand child care and nursing care. This approach has
spread knowledge and understanding of our initiatives within the Company, and more male employees
are taking child-care leave.
In addition, we have established a “Wife’s Maternity
Leave System,” which can be taken when a spousegives birth. It allows for 5 days of leave with 100% of
pay guaranteed. In FY2021, 107 employees took thisleave, for a take-up rate of 78.7% (number of employees who took leave/number of employees eligible for leave).

Value Creation

Sustainability

Data Section

Work employment centers and the Yamanashi Prefecture Vocational Center for Persons with Disabilities, and by appointing vocational life counselors for
persons with disabilities.

❹ Initiatives for Nationality, Race, and Religion

In accordance with our Human Rights Policy, FANUC
considers respect for human rights to be a fundamental principle for all of our activities, and we respect the human rights of all people involved in ourbusiness. FANUC thoroughly implements the “prohibition of discrimination based on race, creed, gender,social status, religion, nationality, age, mental or
physical disability, etc.” in its recruitment practices,
as well. While we hire students from overseas, we
prohibit any special treatment or discrimination
against them in any way because of nationality.
FANUC also strives to provide a working environment that is comfortable for foreign employees. We
offer vegetarian food, gluten-free food, etc. to employees for whom religious dietary considerations
are required. FANUC ACADEMY has facilities thattake into account the religions and customs of employees from all over the world, including Muslim
prayer room for trainees.

Prayer room

❸ Disability-Related Initiatives

When determining assignments, FANUC takes into
account the characteristics of each individual’s disabilities as well as his/her aptitudes, while also considering safety aspects so that persons withdisabilities can play an active role in the Company.
We have also established a support system to promote the employment of persons with disabilities, bycooperating with the Japanese government’s Hello

Place for Wudu

Door sign❺ Age-Related Initiatives

In October 2006, FANUC extended its mandatory retirement age from 60 to 65 years.
Employees who have reached the retirement age of
65 years may continue to work at the Company if both
the Company and the employee so wish.

INTEGRATED REPORT 2022

48

Sustainability

Health and Productivity Management
Health and Productivity Management Statement
Creating an Environment in which Employees can Thrive and Feel Fulfilled
In order to make our vision a reality, we consider thehealth and well-being of our employees and theirfamilies as being the foundation that upholds ourbusiness activities. Based on this belief, Health Management has been promoted from April 2022.

As part of this endeavor, we will create an environment in which our employees can work actively withenthusiasm and a sense of worth, be healthy both inbody and mind, and have a happy and fulfilling livelihood.

FANUC’s Health and Productivity Management Statement

GOOD HEALTH AND WELL-BEING

Health and happiness for all employees and their families!
FANUC CORPORATION’s Vision
FANUC provides indispensable values throughout the worldin the field of factory automation through unceasingly
creating technological innovations, and will continue tobe a company that is trusted by all stakeholders.
In order to make our vision a reality, we consider the health andhappiness of our employees and their families as being thefoundation that upholds our business activities.
We will create an environment in which our employees can work
actively with enthusiasm and a sense of worth, be healthy bothin body and mind, and have a happy and fulfilling livelihood.

Promotion Framework
The General Manager of the Human Resources Division is responsible for health promotion, and the
Welfare Department serves as the administrative office.

Six task force teams have been established under the
Health Promotion Committee to actively incorporate
the opinions of related divisions and work together
to promote the program.

Health Promotion Supervisor
General Manager ofthe Human Resources Division

Health Promotion Committee

Task Force Teams
Prevention, Health,and Health
Guidance Team49

FANUC CORPORATION

Health InsuranceSocietyCommunication Team

Education Team

Public Relations andBusiness Partners
Support Team

Health Initiative
Promotion Team

Dietary
Improvement TeamProfile

Value Creation

Sustainability

Data Section

Activity Policy
1) We will turn “health promotion,” which will further
strengthen our health foundation, into a new engine for improving corporate value.
2) We will acquire “Excellent Health Management
Corporation” status in FY2022 and promote activities from a medium- to long-term perspective.

Note: “Excellent Health Management Corporation” isa certification program of the Ministry of Economy, Trade and Industry, which is given to corp o ratio ns that p rac tice excellent h ealthmanagement.

❶❽

Commitment
1) First, learn proper lifestyle habits in general,
starting with “exercise.”
2) Stimulate “education” and “communication” tocreate a corporate culture in which people canwork actively.
3) Link the effects of each of the health promotion
projects.
Implement PDCA operation in the annual business cycle
In this way, we will promote the acquisition ofhealth literacy, which encourages people to become physically and mentally healthy on theirown

Veriﬁcationof PDCAeﬀectiveness

START

Matching
analysis of
medical checkup
results andreceipt❷
Medicalcheckupappointment

Improve overall healtheﬀectiveness by interlinking eachstep and adopting a PDCA cycle❼
Incentive
healthpromotion
project

FANUC Wellness Cycle❻

Speciﬁc healthguidance andprevention ofsevere disease❸
Medicalcheckup results
display❹❺

Integrated
Management of
medical checkup
results and
HR dataStresscheck

Initiatives⃝E-mail newsletter (every month)⃝e-Learning

Mental health (line care) training(Managers)

Mental health (self care) training(Employees and part-time employees)⃝Walking events using smart phone application for health management

Health Literacy Improvement Education(Managers)

INTEGRATED REPORT 2022

50

Sustainability

Special Feature

Female Leaders Discuss the Future of FANUC

Human Resources Division
Human Resources Department
Labor Section
Section Manager

Sachiko Matsuo

Robomachine Business Division
Roboshot Research & Development
Division
Chief Engineer

Liu Chang

Corporate Finance Division
Finance & Accounting Department
Accounting & Tax Section
Section Manager

Fang Myongson

The FANUC Group promotes the creation of a rewarding workplace. Therefore, we held around-table discussion with three female leaders concerning the future of the FANUC
Group.

Home Is Where You Make It:
Oshino Village, Yamanashi Prefecture
Liu ─I joined the Company after graduating from
graduate school in 2010. Currently, I am working as
Chief Engineer in a position that serves as a bridge

Sachiko Matsuo

51

FANUC CORPORATION

between development and sales, reflecting customer requests in development. If you have a car, nothing is too inconvenient to daily life in Oshino Village
in Yamanashi Prefecture, where FANUC is located.
Rather, I find myself able to focus on research anddevelopment surrounded by the rich nature and quiet environment, and now the village feels like home.
Matsuo─I joined the Company in 2000. In 2005, I
was transferred to the Human Resources Department and have been involved in labor relations,working on such things as the investigation andplanning of employment regulations and various
working conditions. In 2019, I was appointed as Section Manager. When I joined the Company andmoved to Oshino Village, Yamanashi Prefecture,
where FANUC Headquarters is located, I felt that it
was inconvenient as there were no convenience
stores or supermarkets nearby. Nowadays, however,life feels more convenient here due to an increase in
the amount of shops around the Company and theability to shop online, and the village has come tofeel like home.
Fang─ I worked for an audit firm for around 15
years. After that, I joined FANUC in 2018 because
the venture company I was working for was acquiredby FANUC through M&A. Currently, I work on accounting and tax affairs as the Section Manager ofthe Accounting & Tax Section of the Finance & Accounting Department. I am currently working awayfrom home, but I think that there are many people
who have various responsibilities such as childcare

Profile

Value Creation

Sustainability

Data Section

and I am still working while raising my child, taking
advantage of systems such as maternity leave, childcare leave, and shortened working hours. In China,maternity leave and child-care leave are short, andit’s normal to lose your position if you don’t return towork after three months. I’m grateful that I was able
to join FANUC and work in this favorable environment.
Fang─When I worked in my previous position at
an audit firm, I was able to build a variety of careers
for myself because work was assigned without gender discrimination in comparison to typical businesscompanies. I would like to be able to use the systems we have discussed to continue working without interrupting my career.

Liu Changand nursing care, therefore I hope that the Company
will give employees more flexible options concerning
things such as where one works going forward.

Providing Opportunities for
Challenges and Promoting
Growth while Following Up
Liu─ In the Research & Development Divisions,
there are “aces” who pave the way when starting newthings and “leaders” who determine the departmentsin charge and promote the growth of the entire organization while ensuring respect within the departments. As one of these “leaders,” following theproverbial advice to “practice what you preach” foundin Records of the Grand Historian, also known by its
Chinese name Shiji, I always try to take initiative myself before encouraging others to do the same.
Fang─As accounting is a highly specialized field, I
would like for junior employees to have a professional mindset. Therefore, we hold study sessions
within the Finance & Accounting Department whenneeded, focusing on matters that affect FANUC,
such as revisions to and topics concerning accounting standards, as well as actual cases of application.
Matsuo─So far, I feel that I have grown as a resultof the challenging tasks given to me by my superiors.
I am not the kind of person who has strong leadership, therefore I would like to speak to each and every section member and junior employee, challenge
them in the same way that my superiors have challenged me, and encourage them to grow while following up with them.

Instilling Professional Pride in
Junior Employees
Fang─I would like junior employees to engage inwork with an awareness that they are professionals,
as no matter what work they do, it will undoubtedly
benefit them in the future. I myself will continue tokeep up to date with the latest accounting standards
and legal systems, as well as changes and trends inthe environment surrounding our Company. I will
also endeavor to improve myself so that I can provide information that contributes to management
decisions.
Liu─The leadership of superiors has traditionallybeen strong at our Company, therefore I would likejunior employees to have the spirit to create the future of FANUC themselves, and think and act on
their own accord instead of waiting for instructions.
Even if you fail at something, I believe that you candefinitely grow if you build up successful experiencesin the process.
Matsuo─At the Company, we have an environment where employees can feel that their work is
rewarding by moving forward one step at a time
without fear of failure. If you report and consult withyour superiors properly, you will not be penalized,even if you made a mistake. When I made a mistake,my superiors did not reprimand me. Instead, I wastold that it was important to think about how to
avoid repeating the same mistake next time, and I
was motivated to take on new challenges. Therefore,
I want junior employees to take on new challenges
without fear. I believe that the daily growth of eachand every employee, regardless of age or position,
will make FANUC better and lead to its growth.

Various Systems Made Possible
by Senior Colleagues
Matsuo─When I joined the Company, I had manyfemale senior colleagues who got married and retired, and I think there was a strong trend towards
that within the Company. Later, some women continued to work after marriage and childbirth, and as aresult of these senior colleagues becoming rolemodels and paving the way, various systems havebeen put in place, and variations in working styles,
including shortened working hours, have expanded.
Liu─It’s interesting to hear that FANUC used to bethat way too. I gave birth after joining the Company,

Fang Myongson

INTEGRATED REPORT 2022

52

Data Section

Financial and Non-financial Highlights (Years ended March 31)
Financial Highlights
Years ended March 31

2013

2014

2015

2016

Net sales

498,395

450,976

729,760

623,418

EBITDA

202,688

182,528

319,524

236,673

40.7

40.5

43.8

38.0

184,821

164,134

297,839

215,567

37.1

36.4

40.8

34.6

Net income attributable to owners of parent

120,484

110,930

207,599

159,700

Capital investment

45,091

13,906

26,628113,315

Depreciation and amortization

17,867

18,394

21,685

21,106

Research and development expenses

20,14818,372

28,10534,567

Total assets（Persons）

1,219,113

1,343,904

1,611,626

1,512,895

Net assets

1,094,129

1,199,863

1,386,695

1,334,910

ROE（％）

11.6

9.7

16.1

11.8

ROA（％）

10.3

8.7

14.0

10.2

184.68170.06636.62490.07

30.0

30.0

60.0

60.0

EBITDA margin（％）
Operating income
Operating income ratio（％）

Dividend (¥)
Dividend payout ratio（％）⃝EBITDA margin = EBITDA / Net sales ⃝ROE = Net income / Average shareholders’ equity ⃝ROA＝Net income / Average total assets

Non-financial Highlights
Years ended March 31

2013

2014

2015

2016

Number of employees

5,261

5,469

5,840

6,327

Average number of consecutive years served (FANUC CORPORATION)

18.5

18.9

17.7

16.5

Scope1−−

6,521.60

7,189.30

Scope2−−

88,981.50

80,915.50

Scope3−−−−

Greenhouse Gas Emissions（t-CO2)※※ From 2021, The boundary covers FANUC CORPORATION and its consolidated subsidiaries and the scope of products have expanded (covering all products).

Capital investment/Depreciation
and amortization

Research and development
expenses

Number of employees(unit: Millions of yen)(unit: Millions of yen)(unit: Persons)Capital investment

Depreciation and amortization

133,106

52,95656,162

116,11051,31546,94949,970

7,163

7,866

8,164

8,256

2020

2021

8,675

70,47834,19039,70945,91345,102 47,077
41,101

18,553

2018

53

2019

2020

FANUC CORPORATION

2021

2022

2018

2019

2020

2021

2022

2018

2019

2022

Profile

Value Creation

Sustainability

Data Section

Millions of yen

2017

2018

2019

2020

2022

2021

536,942

726,596

635,568

508,252

551,287

733,008

179,747

263,794

203,006

134,263

157,616

230,317

33.5

36.3

31.9

26.4

28.6

31.4

153,217229,604

163,297

88,350112,514183,240

28.5

31.6

25.7

17.4

20.4

25.0

127,697

181,957

154,163

73,371

94,012

155,273

83,207116,110133,106

70,47818,553

41,101

26,53034,19039,70945,91345,10247,07742,331

52,95656,16251,31546,94949,9701,564,769

1,728,227

1,625,340

1,512,499

1,625,191

1,783,964

1,369,457

1,467,630

1,445,146

1,362,865

1,435,554

1,549,879

9.5

12.9

10.6

5.3

6.8

10.5

8.3

11.0

9.2

4.7

5.8

8.7

395.18563.201,003.11300.00294.07

485.70

60.0

60.0

126.1

78.6

60.0

76.3

2017

2018

2019

2020

2022

2021

6,738

7,163

7,866

8,164

8,256

8,675

15.8

15.1

14.3

14.0

14.2

14.4

7,864.40

14,254.00

25,213.20

34,875.00

47,059.42

52,804.27

95,515.80

112,524.00

108,563.60

91,639.00

107,208.02

92,624.88−−

2,414,478.63

1,824,211.72

18,134,471.65

25,933,099.74% of females in executive employees(FANUC CORPORATION)

GHG Emissions (Scope1+2)※

Total Water Used※(unit: %)(unit: t-CO2)(unit: thousand ㎥)

2.8

2018

3.1

2019

3.2

2020

3.4

2021

3.5

2022

154,267
126,778

2018

133,7772019

126,514

2020

2021

1,059

145,429

2022

875

880

910

2018

2019

2020

827

2021

2022

INTEGRATED REPORT 2022

54

Data Section

Business Overview and Financial Summary (Year ended March 31)
FA ─ FA Business ─Business
Overview
Products CNCs, Servos, Lasers

Strength

FANUC’s basic technology

Top-level global market share of CNCs (FANUC estimate)

The FA Business is the origin of FANUC and its basic technology.
FANUC is the first private-sector company in Japan to have developed
Numerical Control (NC) and servo technologies that control machine
tools using numerical information. Until then, highly skilled engineers,
who have acquired know-how through many years of training, wereindispensable for high-precision processing by machine tools.
FANUC made it possible to complement skilled engineers’ skills withNCs and servos. Computercontrolled NCs (CNCs) and servos further
made it possible to process complex shapes and produce varied
items efficiently. Currently, FANUC offers CNCs and servos covering abroad range from simple machine tools to composite machining
equipment with complex configurations to industrial machinery.
Further, demand for introduction of robots in machine tools is increasing at machining sites, with an aim to automate processes or laborsaving. Believing improved compatibility between machine tools androbots is important, FANUC is developing the functions to enhance it.

Financial
Summary
In the FA Division, demand from the machine tool industry, theprimary market for CNC systems, remained strong in all major
markets, as evidenced by an increase on a global scale from Europe, the Americas, Asia, Japan as well as from China. Sales of
the CNC systems for machine tools also increased in line with thisincrease in demand. In February 2022, the cumulative production
number for the Company’s CNC systems reached 5 million units.
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 ¥226,165 million, up 51.5% compared with the previous fiscal year, and FA Division sales accounted for 30.9% of consolidated net sales.

To p i c s
FANUC Reaches CNC Production Milestone of 5 Million
FANUC has consistently pursued factory automation since1955 when it started its business.
Since the start of production of the first NC in 1958, the accumulated production has increased steadily resulting in
10,000 units in 1974, 1 million units in 1998, 2 million units
in 2007, 3 million units in 2013, 4 million units in 2018, culminating in a total of 5 million units in February, 2022.

55

FANUC CORPORATION

Sales of FA Business (Millions of yen)
222,254226,165

211,088

143,247 149,240

2018

2019

2020

2021

2022

(Year ended March 31)

Profile

Value Creation

Sustainability

Data Section

ROBOT ─ ROBOT Business ─Business
Overview
Product

RobotsStrengths

Products applied with CNCs and servos, FANUC’s basic products

Top-level global market shares (FANUC estimate)

FANUC exclusively targets industrial robots, instead ofservice, medical, or entertainment robots. We concentrateon helping customers automate or robotize their factories
and contributing to improved productivity. Our industrial
robots, which include types for welding, material handling(transportation of articles), assembly, and painting, according to application, are used in wide-ranging industries,
including automotive, electronic parts, logistics, food,
pharmaceuticals, and cosmetics. FANUC’s industrial robots are general-purpose robots and used in many industry sectors.

Financial
Summary

Sales of ROBOT Business (Millions of yen)
268,478
227,827

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 theautomobile industry with EV-related demand, and demand
from general industries in Europe also remained strong. In
Japan, there was a gradual recovery in terms of demand,with sales increasing compared with the corresponding
period of the previous fiscal year.
The ROBOT Division posted consolidated sales totaling¥268,478 million, up 27.8% compared with the previous
fiscal year. ROBOT Division sales accounted for 36.6% ofconsolidated net sales.

2018

217,5262019

202,491 210,024

2020

2021

2022

(Year ended March 31)

To p i c s
FANUC Robot M-1000i A
won GOOD DESIGN AWARD 2022
FANUC Robot M-1000i A was awarded “GOOD DESIGN BEST 100” by GOOD
DESIGN AWARD 2022 (sponsored by Japan Institute of Design Promotion).

INTEGRATED REPORT 2022

56

Data Section

ROBOMACHINE ─ ROBOMACHINE Business ─Business
Overview
Products

ROBODRILLs (compact machining centers)

ROBOSHOTs (electric injection molding machines)
ROBOCUTs (wire electrical-discharge machine)

Strengths

Products applied with CNCs and servos, FANUC’s basic productsHigh precision performance, high operating rate, easy to use

Top-level global market share of ROBODRILLs (compact machining centers) (FANUC estimate)

Top-level global market share of ROBOSHOTs (electric injection molding machines) (FANUC estimate)

Products of the ROBOMACHINE Business are comprised of machine tools or industrial
machinery installed with FANUC’s CNCs and Servos. They are used for production in factories of machine users. They are all highly compatible with FANUC Robots. Factory automation is enhanced through the combination of ROBOMACHINEs and Robots.
Machine users can improve quality of their products and shorten the time it takes formachining by using FANUC’s highly reliable, high-performance ROBOMACHINE products.
The products will contribute to improved productivity of machine users’ factories.
Furthermore, a function to monitor the operational status of the entire factory in realtime will enable designing of more precise production plans and improvement in operating rate (ROBODRILL-LINKi, ROBOSHOT-LINKi, and ROBOCUT-LINKi).
ROBOSHOTs and ROBODRILLs became eligible for a subsidy for business expenses supporting promotion of advanced energy-saving investments, allocated in the FY2022 supplementary budgets in recognition of their energy-saving potential. Furthermore, ROBOSHOT became eligible for a subsidy in the FY2022 for ESG lease promotion business forthe establishment of a decarbonized society.
ROBOMACHINE products are used in the production of medical instruments, including
syringes and artificial bones, contributing to efforts to achieve a goal among SDGs of securing healthy life.

Sales of ROBOMACHINE Business (Millions of yen)

Financial
Summary

190,182

In the ROBOMACHINE Division, sales of the ROBODRILLs (compact
machining centers) increased, due to 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) increased due to strong demand from IT-related and automobile component markets.
The ROBOMACHINE Division posted consolidated sales totaling¥144,633 million, up 26.3% compared with the previous fiscal year.
ROBOMACHINE Division sales accounted for 19.7% of consolidated
net sales.

144,633
115,056

114,518
74,912

2018

2019

2020

2021

2022

(Year ended March 31)

To p i c s
Energy saving, carbon neutrality and environmental measures by Robomachines were appealed at exhibitions
Demos by ROBODRILL⃝Energy saving by utilizing latest servo technologies⃝Visualization of power consumption by power
consumption monitor
Demos by ROBOSHOT⃝Heat radiation reduction by insulated heater
cover⃝Environmental measures by recycle plastics
and biomass plastics molding

57

FANUC CORPORATION

Demos by ROBOCUT⃝Energy saving by standby power reduction⃝Longer lifetime of filter by flow control andelectrode pin

Profile

Value Creation

Sustainability

Data Section

Consolidated Statements of Income (unit: Millions of yen）
Years ended March 31
Net sales

2022

2021
¥

551,287¥

733,008

Cost of goods sold349,327

437,374

Gross profit

201,960

295,634

Selling, general and administrative expenses

89,446112,394

Operating income

112,514183,240

Non-operating income
Interest income

2,088

2,055

Dividends income

1,339

1,137

Equity in earnings of affiliates

11,64023,126

Miscellaneous income

3,330

5,956

Total non-operating income

18,39732,274

Removal expenses of noncurrent assets

523

644

Loss on valuation of investment securities

85

410

Donations

481

397

ー

288

1,078

380

Non-operating expenses

Litigation settlement
Miscellaneous expenses

2,167

2,119

128,744

213,395

Impairment lossー478

Total extraordinary lossesー

478

Income before income taxes

128,744

212,917

Income taxes-current

32,38557,721

Total non-operating expenses
Ordinary income
Extraordinary losses

Income taxes-deferred101(3,294)

Total taxes and others

32,48654,427

Net income

96,258

158,490

Net income attributable to non-controlling interests
Net income attributable to owners of parent

3,217

2,246
¥

94,012¥

155,273

Consolidated Statements of Comprehensive Income (unit: Millions of yen）
Years ended March 31
Net income

2022

2021
¥

96,258¥

158,490

Other comprehensive income
Valuation difference on available-for-sale securities

11,852(1,706)

Foreign currency translation adjustment

22,07230,969Remeasurements of defined benefit plans(6,672)

2,414

569

11,090Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income

42,767

27,821¥

124,079¥

201,257

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

120,951

196,917

3,128

4,340

INTEGRATED REPORT 2022

58

Data Section

Consolidated Balance Sheets (unit: Millions of yen）
Years ended March 31
AssetsCurrent assets
Cash and bank deposits
Notes and accounts receivables, tradeMarketable securities
Finished goods
Work in progress
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Machinery and equipment
Land
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred income taxes
Net defined benefit asset
OthersAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payables, trade
Accrued income taxes
Warranty reserves
Other current liabilities
Total current liabilities
Long-term liabilities
Net defined benefit liability
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

59

FANUC CORPORATION

2022

2021

¥

¥
¥

¥

429,784
128,171
157,000
81,25352,00831,007
11,253(782)
889,694¥

423,515150,195
177,700
114,228
80,00655,33014,996(1,024)
1,014,946

309,11359,863
148,389
44,40815,073576,846
9,952

326,459
56,665
155,369
24,292
15,348578,133
8,933

109,212
31,141
4,772
3,998
(424)
148,699
735,497
1,625,191

135,70934,607
7,809
4,252
(425)
181,952
769,018
1,783,964

44,015
22,131
8,860
60,112
135,118¥¥

49,47337,572
10,73979,818
177,60249,3795,140
54,519189,637

51,693
4,790
56,483
234,085

69,014
95,995
1,373,018(106,008)
1,432,019

69,01496,082
1,441,559(105,950)
1,500,705

16,910(4,849)(18,601)(6,540)10,075
1,435,554
1,625,191

15,20436,087(16,187)
35,104
14,0701,549,879
1,783,964¥

Profile

Value Creation

Sustainability

Data Section

Consolidated Statements of Changes in Net Assets (unit: Millions of yen)
Year ended March 31, 2021 (April 1, 2020 - March 31, 2021)

Balance at March 31, 2020
Changes during the year:
Dividends of surplus
Net income attributable to owners of parent
Changes by merger
Change in equity from transactions
with non-controlling shareholders
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net change except shareholders’ equity during the year
Total changes during the year
Balance at March 31, 2021

Balance at March 31, 2020
Changes during the year:
Dividends of surplus
Net income attributable to owners of parent
Changes by merger
Change in equity from transactions
with non-controlling shareholders
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net change except shareholders’ equity during the year
Total changes during the year
Balance at March 31, 2021

Commonstock
69,014

Shareholders’ equity
CapitalRetained
Treasury Total shareholders’surplusearnings stock, at costequity96,265
1,351,122(127,822)
1,388,579(50,369)
94,012
346(50,369)
94,012
346

(270)

ー
69,014

(270)

2
(2)

(22,093)(283)
222,095(270)
95,99521,896
1,373,018

21,814(106,008)

(283)
4
ー
ー
43,4401,432,019

Accumulated other comprehensive income
NonValuation difference Foreign currency Remeasurements Total accumulated controllingon available-forsale
translationof defined other comprehensive interests
securities
adjustment
benefit plansincome5,058(26,608)(11,929)(33,479)
7,765

Total net
assets1,362,865(50,369)
94,012346(270)

11,852
11,852
16,91021,75921,759(4,849)(6,672)(6,672)(18,601)

26,93926,939(6,540)

2,310
2,310
10,075(283)
4
ー
29,24972,6891,435,554

Year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

Balance at March 31, 2021
Changes during the year:
Dividends of surplus
Net income attributable to owners of parent
Changes by merger
Change in equity from transactions with
non-controlling shareholders
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net change except shareholders’ equity during the year
Total changes during the year
Balance at March 31, 2022

Balance at March 31, 2021
Changes during the year:
Dividends of surplus
Net income attributable to owners of parent
Changes by merger
Change in equity from transactions with
non-controlling shareholders
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net change except shareholders’ equity during the year
Total changes during the year
Balance at March 31, 2022

Commonstock
69,014

Shareholders’ equity
CapitalRetained
Treasury Total shareholders’equitysurplusearnings stock, at cost
95,995
1,373,018(106,008)
1,432,019(86,732)
155,273(86,732)
155,273
ー
ー
(234)
159
133

220
(133)
ー
69,01487
96,082

68,541
1,441,559

58(105,950)

(234)
379
ー
ー
68,6861,500,705

Accumulated other comprehensive income
NonValuation difference Foreign currency Remeasurements Total accumulated controllingon available-forsale
translationof defined other comprehensive interests
securities
adjustment
benefit plansincome16,910(4,849)(18,601)(6,540)10,075

Total net
assets1,435,554(86,732)
155,273ーー(1,706)(1,706)
15,20440,93640,93636,0872,414
2,414(16,187)

41,644
41,64435,104

3,995
3,995
14,070(234)
379
ー
45,639114,325
1,549,879

INTEGRATED REPORT 2022

60

Data Section

Consolidated Statements of Cash Flows (unit: Millions of yen)
Years ended March 31

2022

2021

Cash flows from operating activities
Income before income taxes¥

128,744¥

212,91745,10247,077

Increase (decrease) in allowance for doubtful accounts

(121)

195

Increase (decrease) in net defined benefit liability

4,252

1,851

(Increase) decrease in net defined benefit asset

9,040(2,232)

Interest and dividend income(3,427)(3,192)Equity in (earnings) losses of affiliates(11,640)(23,126)(Increase) decrease in receivables, trade(37,122)(14,498)(Increase) decrease in inventories(16,828)(74,740)

Increase (decrease) in payables, trade

15,239

2,758

Other

(2,985)

12,445

Subtotal

130,254

159,455

7,082

8,056

(20,153)(43,332)

813

1,402

117,996

125,581

Payments into time deposits(31,849)(29,199)

Proceeds from withdrawal of time deposits

40,021

12,012

Purchases of property, plant, and equipment(21,768)(34,363)

Other(3,174)(2,379)Net cash used in investing activities(16,770)(53,929)

(283)

(234)

Dividends paid

(50,484)(86,799)

Other(2,365)(2,121)

Net cash used in financing activities(53,132)(89,154)

Effect of exchange rate changes on cash and cash equivalents

14,465

14,238Net increase (decrease) in cash and cash equivalents

62,559(3,264)

Cash and cash equivalents at beginning of year

515,008

577,919352－

Depreciation and amortization

Interest and dividends received
Income taxes paid
Other
Net cash provided by operating activities

Cash flows from investing activities

Cash flows from financing activities
Purchases of treasury stock

Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of year

61

FANUC CORPORATION¥

577,919¥574,655

Profile

Value Creation

Sustainability

Data Section

Corporate Profile
OutlineCompany Name

FANUC CORPORATION

Established1972

Principal Sites

Head office

Oshino-mura, Minamitsuru-gun, Yamanashi Prefecture

Research andDevelopment

Oshino-mura and Yamanakako-mura, Minamitsuru-gun, Yamanashi Prefecture

Branches

Hino Branch (Hino City), Nagoya Branch (Komaki City), Osaka Branch (Osaka City),
Hokkaido Branch (Ebetsu City), Tohoku Branch (Sendai City), Tsukuba Branch(Tsukuba City), Maebashi Branch (Maebashi City), Echigo Branch (Mitsuke City),
Hakusan Branch (Hakusan City), Chugoku Branch (Okayama City), Hiroshima Branch(Hiroshima City), Kyushu Branch (Kikuyo-machi, Kikuchi-gun, Kumamoto Prefecture)

Factories

Headquarters Factory (Oshino-mura and Yamanakako-mura, Minamitsuru-gun,
Yamanashi Prefecture), Mibu Factory (Mibu-machi, Shimotsuga-gun, Tochigi
Prefecture), Tsukuba Factory (Chikusei City), Hayato Factory (Kirishima City)

Training

FANUC ACADEMY (Oshino-mura, Minamitsuru-gun, Yamanashi Prefecture)

Number of
employees

The Company 4,257
The FANUC Group 8,675

Principal
Subsidiaries

FANUC America Corporation, FANUC Europe Corporation, KOREA FANUCCORPORATION, TAIWAN FANUC CORPORATION, FANUC INDIA PRIVATE LIMITED,SHANGHAI-FANUC Robomachine CO., LTD., FANUC PERTRONICS LTD, FANUC SERVO LTD

Principal AffiliatedCompanies

BEIJING-FANUC Mechatronics CO., LTD., SHANGHAI-FANUC Robotics CO., LTD.

Matters Concerning the Shares of the Company （Years ended March 31）
Total number of shares authorized to be issued by the Company

400,000,000 shares

Total number of issued shares

201,909,397 shares

Number of shareholders

55,638The ten largest shareholders:Name

Number of shares(In thousands)

Percentage of equity
participation(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

44,51823.2

Custody Bank of Japan, Ltd. (Trust Account)

15,934

8.3

Citibank, N.A. - NY, as Depositary Bank for Depositary Shareholders

4,918

2.6

SSBTC Client Omnibus Account

4,780

2.5

JPMorgan Chase Bank 380055

4,014

2.1

State Street Bank West Client - Treaty 505234

3,202

1.7

Custody Bank of Japan, Ltd. (Securities Investment Trust Account)

2,960

1.5

The Bank of New York Mellon 140042

2,617

1.4

JPMorgan Chase Bank 385781

2,496

1.3

Government of Norway

2,362

1.2

Note: The percentages of equity participation are calculated after subtracting the number of treasury shares (10,090 thousand shares) from the total
number of issued shares.

INTEGRATED REPORT 2022

62

Data Section

Global Service Network■ Japan■ The Americas

本社

FANUC America Corporation〒401-0597 山梨県南都留郡忍野村忍草3580
Tel.（0555）84-5555/Fax. 5512（代）

日野支社〒191-8509 東京都日野市旭が丘3-5-1
Tel.（042）584-1111/Fax.589-8899（代）名古屋支社〒485-0077 愛知県小牧市西之島1918-1
Tel.（0568）73-7810/Fax.3799（代）名古屋サービスセンタ〒485-0802 愛知県小牧市大草5409-2
Tel.（0120）240-716/Fax.833（FA）
Tel.（0120）240-613/Fax.673（ロボット、ロボマシン）

大阪支店〒559-0034 大阪府大阪市住之江区南港北1-3-41
Tel.（06）6614-2110/Fax.2121（代）北海道支店〒069-0832 北海道江別市西野幌114-6
Tel.（011）385-5080/Fax.5084（代）

東北支店〒981-3206 宮城県仙台市泉区明通4-5-1
Tel.（022）378-7756/Fax.7759（代）

筑波支店〒305-0856 茨城県つくば市観音台1-25-1
Tel.（029）837-1161/Fax.1165（代）

前橋支店〒371-0846 群馬県前橋市元総社町521-10
Tel.（027）251-8431/Fax.8330（代）

越後支店〒954-0111 新潟県見附市今町7-17-38
Tel.（0258）66-1101/Fax.1141（代）

白山支店〒924-0071 石川県白山市徳光町2394-15
Tel.（076）276-2044/Fax.2062（代）

中国支店〒701-0165 岡山県岡山市北区大内田834
Tel.（086）292-5362/Fax.5364（代）

広島支店〒732-0032 広島県広島市東区上温品1-7-3
Tel.（082）289-7972/Fax.7971（代）

九州支店〒869-1196 熊本県菊陽町津久礼2522-13
Tel.（096）232-2121/Fax.3334（代）FANUC ACADEMY〒401-0597 山梨県南都留郡忍野村忍草字丸尾岸1183
Tel.（0555）84-6030/Fax.5540

壬生工場〒321-0234 栃木県下都賀郡壬生町大字羽生田3101

筑波工場
筑波１区

〒300-4522 茨城県筑西市向上野1500-2

筑波２区〒300-4541 茨城県筑西市松原284-4

隼人工場〒899-5116 鹿児島県霧島市隼人町内2277

Detroit, U.S.A. Tel.（1）248-377-7000
Chicago, U.S.A. Tel.（1）847-898-5000
ROBOT and ROBOT system development, manufacture, sales and services; CNC, LASER and ROBODRILL sales and services■ Europe
FANUC Europe Corporation, S.A.

Luxembourg Tel.（352）72-7777-1
CNC, LASER, ROBOT and ROBOMACHINE sales and services;
ROBOT system development, manufacture, sales and services■ AsiaBEIJING-FANUC Mechatronics CO., LTD.

Beijing, China Tel.（86）10-6298-4726
CNC manufacture, sales and services; LASER sales and services

SHANGHAI-FANUC Robotics CO., LTD.
SHANGHAI-FANUC ROBOMACHINE CO., LTD.

Shanghai, China Tel.（86）21-5032-7700
ROBOT system development, manufacture, sales and services;
ROBOT and ROBOMACHINE sales and services

KOREA FANUC CORPORATION

Changwon City, Korea Tel.（82）55-278-1200
CNC, LASER, ROBOT, ROBOT system and ROBOMACHINE sales
and services

TAIWAN FANUC CORPORATIONTaichung, Taiwan Tel.（886）4-2359-9101
CNC manufacture, sales and services; LASER, ROBOT and
ROBOT system sales and services

FANUC INDIA PRIVATE LIMITED

Bangalore, India Tel.（91）80-2852-0057
CNC manufacture, sales and services; ROBOT system development,
manufacture, sales and services; LASER, ROBOT and ROBOMACHINE
sales and services

FANUC THAI LIMITED

Bangkok, Thailand Tel.（66）2-714-6111
CNC, ROBOT, ROBOT system and ROBOMACHINE sales andservices; LASER services

FANUC MECHATRONICS（MALAYSIA）SDN. BHD.

Kuala Lumpur, Malaysia Tel.（60）3-3082-1222
CNC, ROBOT, ROBOT system and ROBOMACHINE sales andservices; LASER services

PT. FANUC INDONESIA

Jakarta, Indonesia Tel.（62）21-4584-7285
CNC, ROBOT, ROBOT system and ROBOMACHINE sales andservices; LASER services

FANUC SINGAPORE PTE. LTD.

Singapore Tel.（65）6-220-3911
CNC, LASER, ROBOT and ROBOMACHINE sales and services

FANUC PHILIPPINES CORPORATION

Manila, Philippines Tel.（63）49-546-0178（63）49-546-0179
CNC, LASER, ROBOT and ROBOMACHINE services

FANUC VIETNAM COMPANY LIMITED

Ho Chi Minh, Vietnam Tel.（84）28-7309-7970
CNC, LASER, ROBOT and ROBOMACHINE services

FANUC OCEANIA PTY. LIMITED

Sydney, Australia Tel.（61）2-8822-4600
CNC, LASER, ROBOT and ROBOMACHINE sales and services■ South Africa
FANUC SOUTH AFRICA（PROPRIETARY）LIMITED

Johannesburg, South Africa Tel.（27）11-392-3610
ROBOT system development, manufacture, sales andservices; CNC, ROBOT, ROBODRILL and ROBOCUT sales and services;
LASER services

63

FANUC CORPORATIONProfile

Value Creation

Sustainability

Data Section

External Recognitions
Inclusion in Major ESG Stock Indexes⃝ FTSE Blossom Japan Index⃝ MSCI Japan ESG select leaders index⃝ FTSE4Good Global Index⃝ MSCI Japan SRI Indexes（2020〜）（2021〜）（2022〜）（2022〜）⃝ S&P/JPX carbon efficient index（2018〜）⃝ FTSE Blossom Japan Sector Relative Index（2022〜）

FTSE Russell confirms that FANUC CORPORATION has been independently assessed according to
the index criteria, and has satisfied the requirements to become a constituent of the FTSE4Good,the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index. Created by the
global index and data provider FTSE Russell, the FTSE4Good, the FTSE Blossom Japan Index and theFTSE Blossom Japan Sector Relative Index are designed to measure the performance of companies
demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good, theFTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index are used by a wide
variety of market participants to create and assess responsible investment funds and other products.

THE INCLUSION OF FANUC CORPORATION IN ANY MSCI INDEX, AND THE
USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION
OF FANUC CORPORATION BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEXNAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITSAFFILIATES.

Sustainability Assessment⃝ MSCIIn 2022, Fanuc received an MSCI ESG rating of AA.

⃝ CDP

In 2022, FANUC was evaluated “A-” in the
Climate Change program and “B” in the
Water Security program by the CDP.

⃝ Sustainalytics
THE USE BY FANUC CORPORATION OFANY MSCI ESG RESEARCH LLC OR ITSAFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS,SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF FANUCCORPORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF
MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND
WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS ORSERVICE MARKS OF MSCI.

Endorsement of Initiatives⃝ The Task Force on Climate-Related Financial Disclosures (TCFD)
FANUC expressed its support for the Task-Force on Climate-related
Financial Disclosures and its recommendations in December 2021.

In Oct. 2022, FANUC CORPORATION received an ESG Risk Rating of 26.1 and was assessed by Sustainalytics to be at Medium risk of experiencing material financial impacts
from ESG factors.

Evaluation of Innovation⃝ Clarivate Top 100 Global Innovator 2022

FANUC CORPORATION has been selected as one of the top
100 global innovators for 2022 by the global leader in providing
information and analytics, Clarivate Plc, on February 24, 2022.
FANUC has also been recognized in 2012 and 2013, making thisthe third time the Company has received this honor.

⃝ SBT (Science based targets)

Targets to reduce GHG emissions by FY 2030 are certified by the SBT(Science Based Targets) initiative.

INTEGRATED REPORT 2022643580, Shibokusa, Oshino-mura, Minamitsuru-gun, Yamanashi, 401-0597, JAPANhttps://www.fanuc.co.jp/eindex.html
TEL 0555-84-5555 FAX 0555-84-5512

INTEGRATED REPORT 2022
Reprint or reproduction is prohibited without permission. All rights reserved©FANUC CORPORATIONiFANUC CORPORATION