(TRANSLATION)
This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail. The
Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages
arising from the translation.

Supplementary Materials to the Notice of Convocation of
The 52nd Ordinary General Meeting of Shareholders

Internet Disclosure Items
1.

Matters Related to Business Report2.

Consolidated Statement of Changes in Net Assets

3.

Notes to the Consolidated Financial Statements

4.

Non-Consolidated Statement of Changes in Net Assets

5.

Notes to the Non-Consolidated Financial Statements

The above materials are provided in accordance with Article 133, Paragraph 3 of the Ordinance for
Enforcement of the Companies Act and Articles 133, Paragraph 4 and Articles 134, Paragraph 4 of the Rulesof Corporate Accounting.

FANUC CORPORATION

1Internet Disclosure Items
1. Matters Related to Business Report(1) Directors and Audit & Supervisory Board Members of the Company
Overview of the limitation of liability agreements
The Company has entered into agreements with Outside Directors, Kazuo Tsukuda, Yasuo Imai, Masato
Ono, and Naoko Yamazaki, and Outside Audit & Supervisory Board Members, Masaharu Sumikawa,
Hidetoshi Yokoi, and Mieko Tomita, limiting their liability for damages as defined under Article 423,
Paragraph 1 of the Companies Act, in accordance with Article 427, Paragraph 1 of the Companies Act.
The amount of the limit of liabilities for damages under such agreement shall be the amount of theminimum limit stipulated by laws and regulations.
(2) Accounting Auditor
1) Name of Accounting Auditor

Ernst & Young ShinNihon LLC

2) Amount of fees, etc. paid to the Accounting Auditor in the fiscal year under review(a) Amount of fees, etc. as Accounting Auditor:(b) Total amount of cash and other proprietary benefits payable by the Company
and its subsidiaries:
Notes 1.

2.
3.

41 million yen
41 million yen

The amount of auditing fees is not distinguished under the auditing agreement concluded
between the Company and the Accounting Auditor with respect to audits under theCompanies Act and the audits under the Financial Instruments and Exchange Act.
Therefore, the amount in (a) represents the sum of the fees for such audits.
The overseas subsidiaries of the Company are subject to audits by audit firms other thanthe Accounting Auditor of the Company.
The reason for the approval by the Audit & Supervisory Board of the amount of fees, etc.
paid to the Accounting Auditor
In addition to obtaining the necessary documents and receiving reports from the
Directors, the related internal divisions and the Accounting Auditor, the Audit &Supervisory Board examined the audit plans and the status of audit execution of theprevious fiscal year as well as the basis for calculating the estimated fees, etc. for the
fiscal year under review based on the “Practical Guidelines on Cooperation withAccounting Auditors” released by the Japan Audit & Supervisory Board Members
Association, and has determined that the fee levels are reasonable and has consented
to the amount of fees, etc.

3) Policy of determining dismissal or non-reappointment of the Accounting Auditor
The Company shall propose non-reappointment of the Accounting Auditor to the general meeting ofshareholders by resolution of the Audit & Supervisory Board, as a general rule, in cases where it isdeemed difficult for the Accounting Auditor to execute audits in an appropriate manner, in addition todismissal of the Accounting Auditor by the Audit & Supervisory Board based on the provisions ofArticle 340 of the Companies Act.
(3) System to ensure the appropriateness of business activities
An overview of the resolution by the Board of Directors of the system to ensure the appropriateness ofbusiness activities is as follows.
1) Policy concerning the storage and management of information regarding the execution of the Company’s
Directors’ duties:
Pursuant to its documentation rules, the Company shall document and store information on theexecution of the Directors’ duties. The Directors and Audit & Supervisory Board Members shall haveaccess to such documents at all times.

22) Rules and schemes concerning management of the Company’s exposure to the risk of loss:
The Company has established a Risk Management Committee and has created risk management policies
in order to handle potential risks which may obstruct the continuation of the Company’s business,increase in the Company’s value, or sustainable development of the Company’s activities, and shallengage in appropriate risk management under the supervision of the Board of Directors. Furthermore, theInternal Audit Department, which directly reports to the President of the Company, shall conduct internal
audits regarding the status of risk management.
3) Policy to ensure efficient execution by the Company’s Directors of their duties:
The Company shall ensure efficient execution by the Directors of their duties by using the following
management policies:(i) Deliberation of vital matters in various major meetings between Directors and mainemployees.
(ii) Approval of vital matters and reports on monthly settlement of accounts at meetings of theBoard of Directors, to be held at least once per month.
4) Policy to ensure the execution by the Company’s Directors and employees of their duties to comply withlaws or ordinances and the Articles of Incorporation:
The Company shall offer training to the Directors and employees with regard to laws, ordinances, theArticles of Incorporation, and other internal rules to ensure that the execution of the duties of the
Directors and employees complies with laws or ordinances and the Articles of Incorporation.
Furthermore, the basic policy of having no affiliation with anti-social forces will be thoroughly madeknown to the Directors and employees, and unreasonable demands from anti-social forces will behandled systematically in collaboration with lawyers, police and other such experts and institutions
outside the Company.
5) Policies to secure the appropriateness of business activities of the corporate group comprised of theCompany and its subsidiaries:(i) Policy regarding reporting to the Company of the execution of the duties of the Directors of theCompany’s subsidiaries.
(ii) Rules and other policies regarding management of exposure to the risk of loss of the Company’s
subsidiaries.
(iii) Policy to ensure efficient execution of the duties of the Directors of the Company’s subsidiaries.
(iv) Policy to ensure that the execution of the duties of the Directors and employees of theCompany’s subsidiaries complies with laws or ordinances and the Articles of Incorporation:
The Company will strive to enhance corporate governance in our corporate group by thoroughly
disseminating the group’s code of conduct applied to our corporate group. Regarding important matterspertaining to the management of the Company’s subsidiaries, prior approval shall be requested or areport shall be submitted to the Company, according to the “FANUC Group Company Regulations.”
Each subsidiary shall individually endeavor to implement proper and efficient management, but as theparent company, the Company shall provide guidance and supervision through relevant departments
including the Internal Audit Department, in order to enforce the effectiveness of the corporate group’s
risk management and compliance, as deemed necessary.
6) Policy concerning the assignment of employees to assist the Company’s Audit & Supervisory
Board Members to execute their duties, when the Audit & Supervisory Board Members so request:
The Company shall assign its employees to assist the Audit & Supervisory Board Members to
execute their duties whenever necessary.
7) Policies for reporting to the Company’s Audit & Supervisory Board Members, and other policies toensure effective audits by the Company’s Audit & Supervisory Board Members:(i) Policy for the Company’s Directors and employees to report to the Company’s Audit &Supervisory Board Members.
(ii) Policy for Directors, Audit & Supervisory Board Members or employees of the Company’s

3subsidiaries, or a person who has received a report from a Director, Audit & Supervisory
Board Member or employee of the Company’s subsidiary to report to the Company’s Audit &Supervisory Board Member.
By attending meetings of the Board of Directors and various major meetings set forth in 3) above, theAudit & Supervisory Board Members shall share information necessary for management with the
Directors and employees. When Directors and employees detect any material fact of violation of laws
and ordinances or the Articles of Incorporation, or incidents which could have a materially negative
impact on the Company, they are required to immediately report such facts or incidents to the Audit &Supervisory Board Members.
8) Policy for protecting the person conducting the internal reporting in the above 7) (whistleblower) from
retaliation for having reported:
The person reporting as in the above 7) (whistleblower) will not receive any disadvantageous treatment
due to having reported to an Audit & Supervisory Board Member.
9) Matters concerning advance payment or reimbursement for expenses incurred from the execution of
the Company’s Audit & Supervisory Board Member’s duties and other policies regarding
processing of expenses or debts incurred from the execution of the Company’s Audit & Supervisory
Board Member’s duties:
Requests for advance payment and others for expenses generated for the execution of an Audit &Supervisory Board Member’s duties will be granted except in such cases where the expense is deemed
unnecessary for the execution of the Audit & Supervisory Board Member’s duties.
(4) Overview of the management of the system to ensure the appropriateness of business activities
1) Compliance system
The Company recognizes that “a company will last forever and be sound with Strict Preciseness” and“the corruption of an organization and downfall of a company start from a lack of Transparency.” Basedon these basic principles of “Strict Preciseness and Transparency,” the Company has established theFANUC Code of Conduct and by widely communicating this Code of Conduct, it strives to raise theemployee’s awareness of compliance. The Company has also established a whistle-blowing system
where employees, etc., can whistleblow without fear of consequences.
2) Risk management system
The Company has established a Risk Management Committee to identify and evaluate risks that could
obstruct the continuation of the Company’s business, increase in the Company’s value, or sustainable
development of the Company’s activities. By also sharing the contents of the discussions of the Risk
Management Committee with the Outside Directors and the Outside Audit & Supervisory Board
Members, the Company strives to ensure the effectiveness of risk management.
3) Management of group companies
Regarding important matters pertaining to the management of the group companies, the Company’s
subsidiaries are required to request for prior approval by the Company or report to the Company, in
accordance with the FANUC Group Company Regulations. The Company also strives to raiseawareness of compliance among the subsidiaries, by applying the FANUC Code of Conduct to thesubsidiaries and widely communicating the content to the employees and executives of the subsidiaries.
Additionally, a whistle-blowing system where employees, etc. of the subsidiaries can whistleblow
without fear of consequences is being successively introduced to the subsidiaries.
4) Execution of duties by Directors
The Company has introduced the Managing Officer System, and the Directors efficiently execute theirduties based on internal rules that stipulate organizational structure, duties of organizations, duties andauthorities of management, and other relevant matters. Additionally, in order for the Board of Directors
to fulfill its monitoring and supervising functions in line with the field, Directors executing businessactivities disclose and explain accurate and timely information from the worksites to the Board of
Directors and strive to ensure that discussions at the Board of Directors meetings are constructive.
5) Execution of duties by the Audit & Supervisory Board Members
Audit & Supervisory Board Members gather necessary information as appropriate in collaboration
with the Accounting Auditor and the Internal Audit Department to efficiently carry out audit operations.

42. Consolidated Statement of Changes in Net Assets(From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity

Balance at March 31, 2020

Common stock

Capital surplus

Retainedearnings

Treasury stock,at costTotal
shareholders’equity69,01496,265

1,351,122(127,822)

1,388,579

Changes during the year
Dividends of surplus(50,369)(50,369)

Net income attributable toowners of parent

94,012

94,012

346

346

Changes by merger
Change in equity fromtransactions with noncontrolling shareholders

(270)

(270)

Purchase of treasury stock
Disposal of treasury stock2

Retirement of treasury stock(2)(22,093)

(283)

(283)

2

4

22,095–

Net change except
shareholders' equity during
the year–

Total changes during the year
Balance at March 31, 2021

–

(270)

21,896

21,81443,44069,014

95,995

1, 373,018(106,008)

1, 432,019

Accumulated other comprehensive income

Balance at March 31, 2020

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

5,058(26,608)(11,929)(33,479)

7,765

1,362,865

Changes during the year
Dividends of surplus(50,369)

Net income attributable toowners of parent

94,012

Changes by merger

346

Change in equity fromtransactions with noncontrolling shareholders(270)

Purchase of treasury stock(283)

Disposal of treasury stock4

Retirement of treasury stock－

Net change except
shareholders' equity during
the year

11,852

21,759(6,672)

26,9392,310

29,249Total changes during the year

11,852

21,759(6,672)

26,9392,310

72,689Balance at March 31, 2021

16,910(4,849)(18,601)(6,540)10,075

1,435,5545

3. Notes to the Consolidated Financial Statements

Notes to significant accounting policies for preparation of consolidated financial statements
1. Scope of consolidation
Number of consolidated subsidiaries and names of major consolidated subsidiaries
Number of consolidated subsidiaries: 35
Names of major consolidated subsidiaries:
FANUC America Corporation
FANUC Europe Corporation
KOREA FANUC CORPORATIONTAIWAN FANUC CORPORATIONFANUC INDIA PRIVATE LIMITEDSHANGHAI-FANUC Robomachine CO., LTD.
FANUC PERTRONICS LTD
FANUC SERVO LTD
Among the subsidiaries, some companies such as FANUC KOSAN LTD are not included in the scope of
consolidation.
The total amounts in terms of total assets, net sales, net income or loss (amount proportional to equity)and retained earnings (amount proportional to equity) of these unconsolidated subsidiaries are immaterial,
as such, and do not materially impact the consolidated financial statements as a whole.
2. Application of equity method
Number of equity method affiliates: 2
Names of the companies:
BEIJING-FANUC Mechatronics CO., LTD.
SHANGHAI-FANUC Robotics CO., LTD.
The net income or loss (amount proportional to equity) and retained earnings (amount proportional toequity) of these unconsolidated subsidiaries and affiliated companies that are not accounted for by theequity method (such as FANUC KOSAN LTD) are immaterial, as such, and do not materially impact theconsolidated financial statements as a whole.
3. Accounting policies(1) Valuation standards and valuation methods of significant assets(a) Securities
Available-for-sale securities(Securities whose fair values are readily determinable)
Stated at fair value based on the market prices as of the closing date, etc. (Differences invaluation are included directly in net assets and the cost of securities sold is calculated by themoving average method.)(Securities whose fair values are not readily determinable)
Stated at cost based on the moving average method.
(b) Inventories
Stated principally at cost by the specific identification method or at cost by the average method (themethod of writing down book value in accordance with decreased profitability).
(2) Depreciation method of significant depreciable assets(a) Property, plant and equipment
Property, plant and equipment are depreciated principally by the declining-balance method. However,for the Company and its domestic consolidated subsidiaries, buildings (excluding facilities attached tobuildings) acquired on or after April 1, 1998 and facilities attached to buildings and structuresacquired on or after April 1, 2016 are depreciated using the straight-line method.
(b) Intangible assets
Intangible assets are amortized principally by the straight-line method. Software for internal use isamortized over its internal estimated useful life (5 years) using the straight-line method.
(3) Basis of recording significant provisions(a) Allowance for doubtful accounts
The Company records allowance for doubtful accounts to prepare for possible losses on receivables
or loans based on the historical default rates for ordinary receivables and on estimates of collectability
for specific doubtful receivables.

6

(b) Warranty reserves
The Company records warranty reserves to allocate the accrual of warranty costs of the Company’s
goods to the net sales of the period based on historical experience. Additionally, necessary amounts
are estimated individually for specific cases.
(4) Other important matters forming the basis of preparation of the consolidated financial statements(a) Method of accounting for retirement benefits- Method of attributing the projected retirement benefits to periods
The benefit formula basis is applied as the method for attributing the expected retirement
benefits to periods of service for the calculation of the retirement benefit obligation.
- Method of amortization of actuarial differences and past service cost
Actuarial gain or loss is amortized in the year following the year in which the gain or loss isrecognized primarily by the straight-line method over a period (10 years) which is shorter thanthe estimated average remaining years of service of the eligible employees.
Past service cost is amortized as incurred by the straight-line method over a period (10 years)
which is shorter than the estimated average remaining years of service of the eligible employees.
(b) Basis for the translation of foreign currency denominated assets and liabilities into Japanese yen
Monetary assets and liabilities denominated in foreign currency are translated into Japanese yen at the
spot exchange rate on the closing date and translation differences are recognized as profit or loss inthe corresponding fiscal year. Assets and liabilities of overseas subsidiaries and associates aretranslated into Japanese yen at the spot exchange rate on the closing date while revenue and expenses
are translated into Japanese yen at the average exchange rate for the period and exchange differences
are included in foreign currency translation adjustment under net assets.
(c) Accounting for consumption tax
The tax-excluded method is used.

Notes to changes in presentation methods
The Company has applied the “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No.
31, March 31, 2020) from the fiscal year under review and provides notes to accounting estimates in the Notes to theConsolidated Financial Statements.

Notes to accounting estimates
Impairment of property, plant and equipment and intangible assets
1.

2.

Amount recorded in the consolidated financial statements for the fiscal year under review
Given a significant decline in the market price of the land of Headquarters offices (carrying amount in the
consolidated balance sheet: 78,971 million yen), which is categorized into jointly used assets, the Company has
determined that there is an indication of impairment for jointly used assets.
Other information that contributes to understanding of accounting estimates
Since there is an indication of impairment for jointly used assets, the Company conducted a test to determine
whether an impairment loss needs to be recognized with a larger unit that covers jointly used assets and multiple
asset groups related to the jointly used assets. As a result of the test, the total amount of undiscounted future cash
flows was found to exceed the carrying amount, and thus no impairment loss was recognized.
Although the assumptions used for these estimates are the best estimates at this point, uncertain economic
conditions and the Group’s business standing in the future may have a material impact on estimated future cash
flows.

Notes to the consolidated balance sheet
1.
2.

Accumulated depreciation of property, plant and equipment:
Guaranteed obligations:
The Company guarantees the obligations of employee mortgage loans.

7402,064 million yen
6 million yen

Notes to consolidated statement of changes in net assets
1. Class and number of shares outstanding as of March 31, 2021
Common stock: 201,922,097 shares
2. Dividends(1) Amount of dividends paid
Resolution

Class ofsharesTotal amount ofdividends(Millions of yen)

Dividend
per share

Ordinary General
Common33,502174.65 yen
Meeting of Shareholders
stock(13,593)(70.86 yen)held on June 26, 2020
Meeting of the Board of
Common16,86787.93 yen
Directors held on
stock
October 29, 2020
Total
50,369Note: The amount in parentheses represents the special dividend.

Recorddate

Effective
date

March 31,2020

June 29,2020

September
30, 2020

December
1, 2020(2) Dividends for which the record date falls in the fiscal year under review while the effective date will be in
the next fiscal year
The Company will present the following proposal on dividends for common stock at the Ordinary
General Meeting of Shareholders to be held on June 24, 2021.
1. Total amount of payout:
39,541 million yen
2. Dividend per share:
206.14 yen
3. Record date:
March 31, 2021
4. Effective date:June 25, 2021
The source of dividends is expected to be retained earnings.

Notes to financial instruments
1. Status of financial instruments(1) Basic policy to manage financial instruments
The Group relies on its resources to finance operations and does not raise funds from external resources.
In addition, the Group does not enter into any derivative contracts.
(2) Nature and extent of risks arising from financial instruments
Deposits denominated in foreign currencies are exposed to the risk of exchange fluctuations.
Receivables such as trade notes and trade accounts are exposed to customer credit risk and receivables
denominated in foreign currencies that arise from overseas operations are exposed to the market risk offluctuation in foreign currency exchange rates. Marketable securities are negotiable certificates ofdeposits, which are easily convertible into cash and within three months, and thus are exposed to an
insignificant risk of price fluctuations. Investment securities, which mainly consist of stocks incompanies with business relationships, are exposed to the risk of market price fluctuations. Payables
such as trade notes and trade accounts are due within one year.
(3) Risk management for financial instruments
1) Credit risk (Risk of default, etc. of customers)
The Group, in accordance with the rules on receivables management, periodically monitors thestatus of key customers and manages the due dates and the balances of receivables by customer, toensure early detection and mitigation of any concerns over collection associated with thedeterioration of their financial position.
2) Market risk (Risk of fluctuation of exchanges rates, etc.)
The Group regularly monitors each yen equivalent of deposits denominated in foreign currencies tomanage the market risk.
The Group regularly monitors the market price and the financial condition of the issuer (business
partner) with respect to its investment securities and continuously reviews the holding status bytaking into account its relationship with the business partner.

8

2. Fair value of financial instruments
The carrying amounts on the consolidated balance sheet, the fair values, and the difference thereof, as ofMarch 31, 2021 are summarized as follows. Financial instruments whose fair values are not readily
determinable are not included in the table below (See Note 2).
(Millions of yen)
Carrying amount in
the consolidated
Fair value (*)
Variancebalance sheet (*)(1) Cash and bank deposits
429,784
429,784–(2) Notes and accounts receivables
128,171
128,171–
Marketablesecurities
and(3)
investment securities
192,565
192,565–
Available-for-sale securities(4) Notes and accounts payables(44,015)(44,015)–(5) Accrued income taxes(22,131)(22,131)–(*) Amounts in parentheses denote items reported under liabilities.
Note 1. Calculation method of fair values of financial instruments and matters concerning securities
Assets(1) Cash and bank deposits and (2) Notes and accounts receivables
The carrying amount is used, as their fair values approximate their carrying amounts due to theirshort maturities.
(3) Marketable securities and investment securities
Marketable securities are negotiable certificates of deposits (NCD), and as their fair values
approximate their carrying amounts due to their short maturities, the carrying amounts are usedas fair values. Investment securities are equity securities whose fair values are measured at thequoted market price at the stock exchange.
Marketable securities and investment securities are held as available-for-sale securities and thedifference between the carrying amounts in the consolidated balance sheet and the acquisition
costs with respect to such available-for-sale securities are as follows.
（Millions of yen）
Carrying amount
AcquisitionTypein the consolidated
Difference
costbalance sheet
Carrying amount in the
Equity35,565
12,932
22,633securities
consolidated balance sheet
35,565
12,932
22,633exceeds the acquisition cost Subtotal
Carrying amount in the
Equity－－－consolidated balance sheet
securities
does not exceed theNCD
157,000
157,000－
acquisition cost
Subtotal
157,000
157,000－
Total
192,565
169,932
22,633Liabilities(4) Notes and accounts payables and (5) Accrued income taxes
The carrying amount is used, as their fair values approximate their carrying amounts due to theirshort maturities.
Note 2. Financial instruments whose fair values are not readily determinable
Given that unlisted stocks (carrying amount in the consolidated balance sheet: 73,647 million yen)
have no market price and the future cash flows thereof cannot be estimated, they are deemed to befinancial instruments whose fair values are not readily determinable and are thus not included in “(3)Marketable securities and investment securities, Available-for-sale securities.”

9Note 3. Redemption schedule of monetary claims and securities with maturities after the consolidated
closing date（Millions of yen）
Due after
Within 1 year
1-5 years
5-10 years
10 years
Cash and bank deposits
429,784－－－
128,171
Notes and accounts receivables－－－
Marketable securities andinvestment securities
Available-for-sale securities
157,000－－－
with maturities
Total
714,955－－－

Notes to per share information
Net assets per share
Net income per share

7,431.58 yen
490.11 yen

Significant subsequent events(Share buyback)At a meeting held on April 27, 2021, the Board of Directors of the Company authorized the repurchase of its
common shares pursuant to Article 156 of the Companies Act as applied pursuant to Article 165, Paragraph 3of the Companies Act, as described below.
1. Purpose of share buyback
To maintain the flexibility and mobility of the Company’s capital policy, in response to changes in the
management environment.
2. Summary of share buyback(1) Class of shares to be repurchased:(2) Total number of shares to be repurchased:

Common shares
Up to 2.5 million shares(1.30% of outstanding shares, excluding treasury shares)
Up to 50.0 billion yen
Market purchase on the Tokyo Stock Exchange
April 28, 2021 – March 31, 2022

(3) Aggregate amount of shares to be repurchased:(4) Method of share buyback:(5) Buyback period:10

4. Non-Consolidated Statement of Changes in Net Assets(From April 1, 2020 to March 31, 2021)

Common stock
Balance at March 31, 2020

(Millions of yen)

Shareholders’ equity
Capital surplus
Legal capital
Other capitalsurplussurplus69,014

96,057

Total capitalsurplus－96,057

2

2

(2)

(2)

Changes during the year
Reversal of reserve for
reduction entry
Dividends of surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasurystock
Net change except
shareholders’ equity during
the year
Total changes during theyear
Balance at March 31, 2021

–

–

–

–

69,014

96,057–

96,057

Shareholders’ equity
Retained earnings
Other retained earnings

Legalretainedearnings
Balance at March 31, 2020

Reserve forresearch anddevelopment

8,252

Reserve for
reduction
entry

311,800

38

Retainedearnings
brought
forwardGeneralreserve
303,580

Total retained
earnings

418,982

1,042,652

3–

Dividends of surplus(50,369)(50,369)

Net income

70,45170,451(22,093)(22,093)

Changes during the year
Reversal of reserve for
reduction entry(3)

Purchase of treasury stock
Disposal of treasury stock
Retirement of treasurystock
Net change except
shareholders’ equity during
the year
Total changes during theyear
Balance at March 31, 2021

–

–

(3)

–

(2,008)(2,011)8,252

311,80035

303,580

416,974

1,040,641

11

Shareholders’ equity

Balance at March 31, 2020

Treasurystock, at cost

Total
shareholders’equity(127,822)

1,079,901

Valuation and translation
adjustments
Valuation
Total
difference on
valuation andavailable-for-saletranslation
securities
adjustments
4,732

4,732

Total net
assets

1,084,633

Changes during the year
Reversal of reserve for
reduction entry––

Dividends of surplus(50,369)(50,369)

Net income

70,45170,451

Purchase of treasury stock

(283)

(283)

(283)

Disposal of treasury stock

2

4

4

Retirement of treasurystock
Net change except
shareholders’ equity
during the year
Total changes during theyear

22,095––

21,814

Balance at March 31, 2021

(106,008)

11,806

11,806

11,80619,803

11,806

11,806

31,6101,099,704

16,538

16,5381,116,242

12

5. Notes to the Non-Consolidated Financial Statements

Notes to significant accounting policies
1. Valuation standards and valuation methods of securities
Shares of subsidiaries and associates
Stated at cost based on the moving average method
Available-for-sale securities(Securities whose fair values are readily determinable)
Stated at fair value based on the market prices as of the closing date, etc. (Differences invaluation are included directly in net assets and the cost of securities sold is calculated by themoving average method.)(Securities whose fair values are not readily determinable)
Stated at cost based on the moving average method.
2. Valuation standards and valuation methods of inventories
Finished goods and work in progress: Stated at cost by the specific identification method or at cost by theaverage method (the method of writing down book value in accordance with decreased profitability.)
Raw materials: Stated at cost determined by the most recent purchase price method.
Supplies: Stated at cost determined by the first-in-first-out method.
3. Depreciation method of noncurrent assets(1) Property, plant and equipment
Property, plant and equipment are depreciated by the declining-balance method. However, buildings(excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached tobuildings and structures acquired on or after April 1, 2016 are depreciated using the straight-line method.
(2) Intangible assets
Intangible assets are amortized by the straight-line method. Software for internal use is amortized overits internal estimated useful life (5 years) using the straight-line method.
4. Basis for recording provisions(1) Allowance for doubtful accounts
The Company records allowance for doubtful accounts to prepare for possible losses on receivables orloans based on the historical default rates for ordinary receivables and on estimates of collectability forspecific doubtful receivables.
(2) Warranty reserves
The Company records warranty reserves to allocate the accrual of warranty costs of the Company’s
goods to the net sales of the period based on historical experience. Additionally, necessary amounts are
estimated individually for specific cases.
(3) Allowance for employees’ retirement benefits
The Company records a provision for retirement benefits to provide retirement benefits to employees
based on the projected amount of retirement benefit obligations and pension assets at the end of the
fiscal year under review.
Allowance for employees’ retirement benefits and defined benefit cost are accounted for as follows.
1) Method of attributing the projected retirement benefits to periods
The benefit formula basis is applied as the method for attributing the expected retirement benefits toperiod of service for the calculation of the retirement benefit obligation.
2) Method of amortization of actuarial differences and past service cost
Actuarial gain or loss is amortized in the year following the year in which the gain or loss isrecognized primarily by the straight-line method over a period (10 years) which is shorter than theestimated average remaining years of service of the eligible employees.
Past service cost is amortized as incurred by the straight-line method over a period (10 years) whichis shorter than the estimated average remaining years of service of the eligible employees.
The accounting treatment of unrecognized actuarial differences and unrecognized past service cost isdifferent from that used in the Group’s consolidated balance sheet.
5. Accounting for consumption tax
The tax-excluded method is used.

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Notes to changes in presentation methods
The Company has applied the “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No.
31, March 31, 2020) from the fiscal year under review and provides notes to accounting estimates in the Notes to the
Non-Consolidated Financial Statements.

Notes to accounting estimates
Impairment of property, plant and equipment and intangible assets
1.

2.

Amount recorded in the non-consolidated financial statements for the fiscal year under review
Given a significant decline in the market price of the land of Headquarters offices (carrying amount in the nonconsolidated balance sheet: 78,971 million yen), which is categorized into jointly used assets, the Company has
determined that there is an indication of impairment for jointly used assets.
Other information that contributes to understanding of accounting estimates
Same as “2. Other information that contributes to understanding of accounting estimates” in “Notes to accounting
estimates, Notes to the Consolidated Financial Statements.”

Notes to non-consolidated balance sheet
1. Accumulated depreciation of property, plant and equipment:

367,722 million yen

2. Guaranteed obligations:
6 million yen
The Company guarantees the obligations of employee mortgage loans.
3. Monetary receivables from and payables to subsidiaries and associates
Short-term monetary receivables:
39,440 million yen
Short-term monetary payables:
2,544 million yen
Long-term monetary receivables:
900 million yen

Notes to non-consolidated statement of income
Transactions with subsidiaries and associates
Sales to subsidiaries and associates:
Purchases from subsidiaries and associates:
Non-operating transactions with subsidiaries and associates:

275,744 million yen
13,386 million yen
23,775 million yen

Notes to non-consolidated statement of changes in net assets
Class and number of shares of treasury stock at the end of the fiscal year under review
Common stock: 10,108,169 shares

14Notes to tax effect accounting
1. Breakdown of major causes for deferred tax assets and deferred tax liabilities
Deferred tax assets
Allowance for employees’ retirement benefits
Depreciation
Accrued enterprise taxes
Accrued expenses
Investment securities
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets

9,846 million yen
11,864 million yen
1,018 million yen
4,570 million yen
1,146 million yen
10,679 million yen
39,123 million yen(2,459) million yen
36,664 million yen

Deferred tax liabilities
Prepaid pension costs
Valuation difference on available-for-sale securities
Other
Total deferred tax liabilities
Net deferred tax assets(2,309) million yen(6,080) million yen(43) million yen(8,432) million yen
28,232 million yen

15

Notes to related-party transactions
Subsidiaries and affiliated companies
Classification

Subsidiary
Subsidiary
Affiliate

Affiliate

Company
nameRatio ofvoting rights
ownership(owned)Relationshipwith related
party

Details of thetransaction

FANUC
America
Corporation
FANUC
EuropeCorporation(Ownership)
Direct100%(Ownership)
Direct100%

Sales of theCompany’s
products
Sales of theCompany’s
products

Sales of FA,
robots, andRobomachines
Sales of FA,
robots, andRobomachines(Ownership)
Direct50%

Sales of theCompany’s
products

Sales of FA(Ownership)
Direct50%

Sales of theCompany’s
products

Sales ofrobotsBEIJINGFANUC
Mechatronics
CO., LTD.
SHANGHAI-FANUC
Robotics
CO., LTD.

Transaction
amount(Millions ofyen)

55,38544,46454,612

48,947

Account
Accounts
receivable,
trade
Accounts
receivable,
trade
Accounts
receivable,
trade
Accounts
receivable,
trade

Balance asof March
31, 2021(Millionsof yen)

6,777
4,850
4,490

11,552Business conditions and the policy for the determination of business conditions
Notes 1. Transaction prices are determined by taking into account general market prices.
2. The transaction amount and the balance as of March 31, 2021 do not include consumption tax.

Notes to per share information
Net assets per share

5,819. 40 yen

Net income per share

367. 28 yen

Significant subsequent events(Share buyback)At a meeting held on April 27, 2021, the Board of Directors of the Company authorized the repurchase of its
common shares pursuant to Article 156 of the Companies Act as applied pursuant to Article 165, Paragraph 3of the Companies Act, as described below.
1. Purpose of share buyback
To maintain the flexibility and mobility of the Company’s capital policy, in response to changes in the
management environment.
2. Summary of share buyback(1) Class of shares to be repurchased:(2) Total number of shares to be repurchased:

Common shares
Up to 2.5 million shares(1.30% of outstanding shares, excluding treasury shares)
Up to 50.0 billion yen
Market purchase on the Tokyo Stock Exchange
April 28, 2021 – March 31, 2022

(3) Aggregate amount of shares to be repurchased:(4) Method of share buyback:(5) Buyback period:

16