Contents
Message from the President and CEO and CIO･･･････････ 02
Basic Principles and the Three Philosophies･･････････････ 03
Management Policy･･････････････････････････････････････ 04
Track Record of Value Creation･･････････････････････････ 05
Process of Value Creation･･･････････････････････････････ 07
Achievement of SDGs Through Creation of New Value･･･ 09
Materiality･･･････････････････････････････････････････････ 13
Governance･ ････････････････････････････････････････････ 14
Financial Highlights (Consolidated)･･･････････････････････ 17
Business Review and Challenges･････････････････････････ 18
Ten-Year Financial Summary･････････････････････････････ 21
Financial Section･････････････････････････････････････････ 23
Global Service Network･･････････････････････････････････ 29
Forward-looking statements
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 to various risks and uncertainties and actual businessresults 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.

01

FANUC Annual Report 2020

Message from the President and CEO and CIO

Aiming for sustainablegrowth throughcontinuous technologicalinnovation

We have been under the business circumstances characterized mainly by the COVID-19
pandemic crisis, and the ever-lasting trade friction between the U.S. and China. However, evenunder such circumstances, or all the more in these times, the need for factory automation is
expected to increase.
Our products will be vulnerable to such economic environment, it is vital, therefore, that
we strive for continuous technological innovation, while adapting to expected changes andmaintaining a medium- to long-term perspective, in our management stance.
KPIs such as market share and operating income play an important part in this medium- tolong-term perspective. Going forward, however, it will also be vital to closely monitor ourcapital efficiency, which means how much profit the capital we have invested is generating,
and will generate in the future. While focusing on such efficiency and effectiveness of costs
and investments, we intend to turn the needs for automation into our medium- to long-term
growth through our continuous technological innovation.
We will provide unique value for customers around the world through continuous
technological innovation in the field of factory automation. Recognizing that such acommitment will also contribute to the achievement of the Sustainable Development Goals(SDGs) adopted by the United Nations, FANUC aims to enhance its corporate value andcontinue to be a company that is always trusted by our stakeholders.
We would like to ask for your continued understanding and support.

Kenji Yamaguchi
Representative Director, President and CEO and CIO

FANUC Annual Report 202002

Basic Principles“Strict Preciseness” and“Genmitsu”(Strict Preciseness)“Transparency” are the basic
principles of FANUC.
Strict PrecisenessA company will last forever and besound with strict preciseness.

“Tomei”(Transparency)

Transparency

The corruption of an organizationand downfall of a company startfrom a lack of transparency.

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

Reliable
Predictable
Easy to Repair

FANUC aims to minimize downtime in all
factories all over the world.

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

03

FANUC Annual Report 2020

Management Policy
1. Basic Policy
FANUC has been consistently pursuing the automation of factories
since 1956, when it succeeded in the development of NCs (numerical controls) and SERVO mechanism for the first time in the Japanese private sector.
It has sought to become a tough company which, although it may
be small, has the strength of a giant firmly rooted in the groundwith an unwavering focus on technology—a goal it set in its earlyyears. It endeavors to walk straight in a “narrow path.”
In order to achieve this ideal model, the FANUC Group has set“Strict Preciseness” and “Transparency” as its basic principles.
What lies behind these philosophies is the philosophy that a company will last forever and be sound with strict preciseness, andthe corruption of an organization and downfall of a company startfrom a lack of transparency.

FANUC will continue to provide customers with value
indispensable for the world through development of products withfocus placed on the FA business, which encompasses basic technologies consisting of NCs, servos and lasers, and the ROBOT and
ROBOMACHINE businesses where these basic technologies areapplied, and the IoT business targeting manufacturing sites.
Based on its starting point as a supplier of production goods, FANUC also offers service, with a policy of not terminating support of
FANUC products as long as they are used by customers.
Through such activities, FANUC aims to contribute to the development of manufacturing industries in Japan and overseas byenhancing automation and efficiency in customers’ factories, andpursue steady growth in the area of factory automation, which is
expected to grow over the medium to long term.

2. Business Policy
one FANUC
This philosophy has two meanings. One is that the three businesses of FA, ROBOT and ROBOMACHINE are united and act as one tojointly provide total solutions for the promotion of automation and robotization efforts in customers’ factories, while the other is that the
FANUC headquarters and FANUC Group members across the globe are united and act as one to serve customers all over the world.

Reliable, Predictable, Easy to Repair
Founded upon the basics that our products are production goods to be used at manufacturing sites, the FANUC
Group will thoroughly implement our philosophy “Reliable” “Predictable” “Easy to Repair” in product development, tominimize downtime in our customers’ factories and improve their operating rates.

Service FirstWe will improve operating rates of customers’ factories by providing high-level services pursuant to FANUC’s global
standard anywhere in the world and “lifetime maintenance” as long as our customers use our products.

3. Management Policy
Reinforcing Corporate Structure
We are working to maintain a strong corporate structure by improving operational efficiency through optimization of expenses
and working hours and rationalization of operation, and improving capital efficiency through appropriate investment activity.

Importance of Human Resources
As human resources are the most important factor for a
medium- to long-term growth, we will work to create better work environments and further improve motivation.

Pursuit of SDGs
FANUC will proceed with efforts across our business activities
including product development, manufacturing, and after-sales services in consideration of contribution to achieving the 17 Sustainable Development Goals (SDGs) adopted by the United Nations.
FANUC Annual Report 202004

Track Record of Value Creation
Since its early years, the FANUC Group has sought to become a tough company which, although it may be small, has the strength of agiant firmly rooted in the ground. A tough company is a company that always has highly sophisticated technology and is equipped witha robust capital structure. Aiming to achieve this end, the FANUC Group has striven to walk this “narrow path,” straight and steadily.

FANUC’s History
The history of FANUC began with the numerical control (NC) technology. In 1956, theCompany became Japan’s first private-sector
company to successfully develop NCs and
SERVO mechanism, realizing the automationof control of machine tools, which require
absolute position accuracy and until thenwere performed manually, by numericallycontrolling them. In 1959, the Company developed electro-hydraulic pulse motor, whichforms the basis for its SERVO technology,
helping the NC business establish a strong
market position.

In 1972, the NC division was spun off from Fujitsu Limited to form 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 ofNC and SERVO products, FANUC has since
expanded business to products that use theNC technology, developing the NC drillingmachine, which was aimed at popularizing NC
machine tools, and robots installed with NC
that automate wide-ranging work processes.

1980

Fuji Factory constructed. Unmanned machining during nights was realized.

1990

1982

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

1992

1981

FANUC ROBOT S-MODEL 1 was developed.

1991


1956
1959
1964
1972


1974

1975

1976
1977


1978




72

05

First successful development of NCs and
SERVO mechanism in Japan (private sector).
The first electro-hydraulic pulse motor was developed.
FANUC’s first CNC, FANUC
250 was developed.

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



FANUC 200A was developed.

DC servo motor was licensed
from Gettys Manufacturing Co.
FANUC TAPE CUT-SERIES A
was developed.
FANUC 2000C/3000C wasdeveloped.

FANUC SYSTEM 5 was developed.
FANUC U.S.A. CORPORATION established.

FANUC ROBOT MODEL 1 was developed.



AC SERVO MOTOR was developed.

1984

FANUC AUTOSHOT was developed.



FANUC SYSTEM0 was developed.

1996

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

1997

1983



1985

1986



1987





1989

Listed on the first section of the Tokyo Stock Exchange.
Relocation of headquarters to the foot of Mt. Fuji.
FANUC TAIWAN LTD established.

FANUC NC LASER-MODEL C1000 was developed.

FANUC ROBOT S-MODEL 420 was developed.

FANUC Series16 was developed.

Hayato Factory completed.
FANUC Series18 was developed.

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

FANUC INDIA PRIVATE LIMITED established.

GMFanuc Robotics
Corporation reorganized
to FANUC 100%
subsidiaries, FANUC
Robotics North America,
Inc. and FANUC
Robotics Europe S.A..
FANUC ROBOT LR Matewas developed.

i i i

FANUC Series16 /18 /21
was developed.

SHANGHAI-FANUC Robotics
CO., LTD. jointly establishedwith Shanghai Electric Group
Company Limited.

FANUC ROBOT ARC Mate was developed.
FANUC Series15 was developed.
Tsukuba Factory completed.

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

FANUC SYSTEM 6 was developed.

74

76

FANUC Annual Report 2020

78

80

82

84

86

88
90
92
94
Consolidated from the year ended March 31,1983

96

Value Creation

FANUC’s Mission

Trust with Society

The value FANUC aims to create is
the value for customers. We believe
the attitude of seeking such value
will lead to enhansed corporate value of our company.

FANUC’s business areas are divided into the
FA business, comprised of NC, servo, andlaser, which are our basic technologies, the
ROBOT and ROBOMACHINE businesses,
where these basic technologies are applied,
and initiatives for IoT and AI for manufacturing sites. The FANUC Group’s mission is tohelp customers automate and robotize theirfactories by developing products and services
focused on the above areas and eventuallycontribute to the progress of domestic andoverseas manufacturing industry.

In order for the company to grow,
FANUC needs to build trust withsociety, in addition to making solebusiness efforts. Society, as far as it
shares interest with us, is our stakeholders which include customers,
employees, business partners, creditors, and local communities andshareholders. FANUC always thinksof how it can build trust with thesestakeholders.

i i

2012

2000

FANUC Series0 /0 Mate was developed.

2003

FANUC Series30 /31 /32 was developed.

2013

Delta Robot was developed.

2015



2009


i

FANUC Robot R-2000 A was developed.

i

i

i

Joint venture with General Electric was dissolved.



2016
2017
2018

European subsidiaries reorganized
to FANUC Europe Corporation.

Subsidiaries in the Americas reorganized
to FANUC America Corporation.
Collaborative Robot was developed.

FANUC FIBER LASER was developed.
Mibu Factory completed.

FIELD system was developed.

FANUC ACADEMY established.

Sales

5,082

(Billions of Yen)

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0
98

00

02

04

06

08

10

12

14

16

18

20

FANUC Annual Report 202006

Value Creation Process
The driving force for FANUC is the tough corporate structure it has built by exclusively focusing efforts on the FA, ROBOT, andROBOMACHINE businesses and the IoT business for manufacturing sites, without blindly seeking business expansion. We aim
to create economic as well as social value by promoting automation and robotization of customers’ factories through continued technological innovation and helping manufacturers around the world solve social and environmental issues.

FANUC’s Key Products

Financial capital▌Common stock: ¥69.0 billion▌Operating income: ¥88.3 billion

ＦＡ
Basic products

Manufacturing capital●▌B ook value of¥524.6 billion
key equipment:

CNCs, servos, lasers▌Capital investment: ¥70.4 billion

Intellectual capital▌Number of patents grant8,972
ed in Japan and overseas:▌R&D expenses: ¥51.3 billion

Input

Human capital▌Number of consol8,164
idated employees:

Social capital▌Global service network:
More than 260 service offices,
covering more than 100
countries

Natural capital▌ISO14001 certification: 33 offices▌Energy consumption: 2,662,325 GJ▌Total Water Used: 910.374 Thousands of ㎡

07

FANUC Annual Report 2020

ROBOMACHINEs
Applied products

ROBODRILL, ROBOSHOT,●ROBOCUT, ROBONANO

and Concept

Improved customer productivity▌Minimizing down time
▌Sophisticated manufacturing

ROBOT▌Products easy-to-use
for unskilled workers

Improved work environment in customers’ factories▌Liberation from dangerous,
dirty, and difficult jobs
▌Superior safety

Reduction in environmental load
▌Energy saving products/functions▌Shorter processing time▌Smaller, lighter products,
fewer components▌Reduction in the amount ofharmful substances used

Applied products
Robot

●

Outcome
Securing employee diversity▌Female officers:

11.7%▌Officers with non-Japanese nationality: 5.8％

Creation of new value
through linking▌Female executive employees: 3.2％

Conservation of biological diversity▌Forest conservation activities▌Conservation of rare plant species

Platform for manufacturersthat transcends boundaries of manufacturing
companies and generations

Right tools implemented in right places
through sophisticated use of data fromproduction sites
FANUC Annual Report 202008

Achievement of SDGs Through Creation of New ValueFANUC operates the businesses of FA, ROBOT, andROBOMACHINE, as well as the IoT business that improves
these three businesses. Since its foundation, we have developed a tough corporate structure by focusing on thesebusinesses, without blindly seeking to expand the scale ofits business.
And we aim to remain a company trusted by stakeholders
by working to provide essential value to not just customers

but also to society through persistent technological innovation in all of our businesses and fulfilling our social responsibility through our business activities.
Demand for factory automation is expected to continue
to grow. FANUC will continue to aim to achieve SDGs bycreating new value and working to resolve environmental
issues such as climate change and other social issues including the need to improve work environment.

See our website for more information about sustainability.

FA (Basic products)
FANUC provides basic products that enablefactory automation, such as CNCs, which
control the operation 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 ourcustomers’ factories with energy
saving, enhanced
safety, and higher
performance.

09

Contribution to efforts to achieve 17 SDGs and 169 targets

ROBOT (Applied products)

ROBOMACHINE (Applied products)

Various tasks can be automated by applying the basic technologies of CNCs and servos freely controling robot arms.
We contribute to improving work environments by releasing
workers from dangerous, dirty, and difficult jobs and enhance
the stability of productquality by enabling longhour, consistent, andcontinuous production. In
addition, we contributeto the maintenance andgrowth of factories aroundthe world by compensating
the shrinking labor pool,such as by developing
robots that can work incollaboration with humans.

FANUC is developing compact machining
centers, electric injection molding machines,
wire-cut electric discharge machines, andultra-precision machines that apply the basic
technologies of CNCs and servos. We contribute to improving
the productivityof our customers
by pursuing superior machining
performance,
operating rates,and ease of use.

FANUC Annual Report 2020

FA Business
Products: CNCs, servos, lasers

Strengths: FANUC’s basic technology
Top-level global market share of CNCs
(FANUC estimate)

Business Overview
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) andservo technologies that control machine tools using
numerical information. Until then, highly skilled engineers, who have acquired know-how through many
years of training, were indispensable for high-precision
processing by machine tools. FANUC made it possible
to complement skilled engineers’ skills with NCs andservos. Computer-controlled NCs (CNCs) and servos

further made it possible to process complex shapes andproduce varied items efficiently. Currently, FANUC offers
CNCs and servos covering a broad range from simple
machine tools to composite machining equipment withcomplex 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 labor saving. Believing improved compatibility between machine tools and robots is important,
FANUC is developing the functions to enhance it.

Value Created by FA Business
High-machining performance CNCs and high-speed, high-precision servos contribute to improved productivity as they enable
more precise, higher-speed machining. We have implemented
energy saving features in our servos.
Laser products contribute to improving quality of products ofmachine users with their high-quality machining capability supported by FANUC’s CNCs and servos installed in them.
It is essential to improve operating rates for improving productivity of factories. In order to avoid extended suspension of
production lines due to machine trouble or emergency maintenance work, we attach importance to functions and designs
for preventive maintenance. Factory operation at high operating rates becomes possible through monitoring of insulation
resistance of motors, drops in the numbers of rotations of fan
motors for CNCs and servo amplifiers, etc. and conducting
preventive maintenance in advance of a halt of the machine.

Ensuring Customer Safety
It is important to help operators not used to operatingmachines use FANUC products safely, as the numbers ofpeople working in the manufacturing industry and highly
skilled engineers are expected to decrease. FANUC’s
products are compliant with safety standards, including
the ISO/IEC standards, and certified by accreditation
organizations.
In addition, sufficient attentions are paid to safety use as
CNCs are equipped with functions to suspend operation
upon receiving an alarm in case of operational errors.

Areas of contribution to environmental/social issues- Measures to address decreases in working population and highly skilled engineers- Improvement of customers’ productivity- Energy saving in customers’ factories- Waste reduction in customers’
factories- Improvement of work environment
in customers’ factories

Sales of FA business(Millions of yen)
222,254

170,211

175,016

2016

2017

211,088
143,247

2018

2019

2020

FANUC Annual Report 2020

10

ROBOT Business
Products: robots

Strengths: P roducts applied with CNCs and servos,
FANUC’s basic products
Top-level global market shares (FANUC
estimate)

Business Overview
FANUC exclusively targets industrial robots, instead ofservice, medical, or entertainment robots. We concentrate on helping customers automate or robotize theirfactories 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 inwide-ranging industries, including automotive, electronicparts, logistics, food, pharmaceuticals, and cosmetics.
FANUC’s industrial robots are general-purpose robots
and used in many industry sectors.

Value Created by ROBOT Business
Robots help solve a variety of issues society is facing.
Robots, which perform strenuous work as programmed
even under harsh environment, release workers fromdangerous, dirty, and difficult jobs. Robots can also improve productivity and reduce night shift for workers
as they can perform precise work over a long time at a
certain speed, even at night.
COVID-19 outbreaks occurred in 2020. In such a time,
robots can help protect health and safety of peo­ple by substituting some workers to allow them toavoid the “Three Cs” (closed spaces, crowded places,
close-contact settings).

Introducing Zero Down Time (ZDT), a maintenance anddiagnosis function using IoT, can service robots before
they break down, helping to avoid extended suspensionof a production line just because of trouble in a single
robot.
Robots thus not only promote automation and robotization of factories and contribute to improved productivity
but also help improve work environment, ultimately
achieving improved productivity in labor-intensive industries through technology, a target of SDGs.

Robots for a new age
The market of “collaborative robots,” which can work
alongside human workers, is growing. As collaborative
robots automatically stop safely when touched by humans, they do not require safety fences. By assisting
work alongside human workers, operators can avoid
strenuous work and workers whose physical power isweak can work safely.
The CRX series, light-weight collaborative robots FA­
NUC announced in December 2019, are a new type ofcollaborative robots developed to achieve thoroughease of use for customers. As these products are light,
you can carry and install them without using a crane.
The manual guided teaching feature that allows users to

directly move the arm by hands enables intuitive robot operation. Users can design teaching programs ina smartphone-like operation, usingdrag-and-drop operation on a tablet
device they are familiar with. The robots, designed with an aim to create
an appearance that coexists withhumans, make workers feel safe.
They are robots for a new age,equipped with a safety feature thatstops itself when touched and maintenance-free, high reliability.

New Collaborative
Robot CRX

Targeting Expanding Robot Market
According to statistics by the International Federationof Robotics, the number of industrial robots in operation
has increased year by year and is expected to continue
to grow. FANUC develops robots that can help solve

issues faced by society and as measures to improve productivity of customers’ factories and address decreases
in working population and highly skilled workers.

<TOPIC>“FANUC Robot R-2000iD/210FH,” a product with cables integrated into its arm and featuring a good balance
between design and function, won “2019 Nikkan Kogyo Shimbun Best 10 New Products Award/Main Award”
and “Nikkei Sangyo Shimbun Award for Excellence in the 2019 Nikkei Superior Products and Services Awards.”

Areas of contribution to environmental/social issues- Measures to address decreases in working population and highly skilled engineers- Improvement of work environment in customers’
factories- Improvement of customers’ productivity- Energy saving in customers’ factories- Waste reduction and effective
use of resources in customers’
factories

11

FANUC Annual Report 2020

Sales of ROBOT business
188,295

190,043

2016

2017

(Millions of yen)

227,827

217,526

2018

2019

202,491

2020

ROBOMACHINE Business
Products: ROBODRILLs (compact machining centers),
ROBOSHOTs (electric injection molding
machines), ROBOCUTs (wire-cut electric
discharge machines), and ROBONANOs (ultraprecision machines)

Strengths: Products applied with CNCs and servos, FANUC’s basic productsHigh precision performance, high operating rates, 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)

Business Overview
Products of the ROBOMACHINE business are comprised of machine tools
or industrial machinery installed with FANUC’s CNCs and servos. They areused 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 for machining 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 real time will enable designing of more precise production plans

and improvement in operating rates (ROBODRILL-LINKi, ROBOSHOT-LINKi,
and ROBOCUT-LINKi).
ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business
expenses supporting businesses rationalizing energy use in production
equipment, allocated in the fiscal 2019 supplementary budgets in recognition of their energy saving potential. ROBOMACHINE products are usedin the production of medical instruments, including syringes and artificial
bones, contributing to efforts to achieve a goal among SDGs of securing
healthy life.

Value Created by ROBODRILLs
ROBODRILLs are compact machining centers. They are used for machining
metal materials, such as iron and aluminum, with tools and for drilling
holes.
The products have superior machining performance for their compactness
and contribute to making production equipment smaller and saving energy.
They improve production efficiency by thoroughly reducing redundancy inmachines’ operation, and achieve more stable machining through the useof AI thermal displacement compensation function. These features help
improve machine users’ product quality and productivity.

Impeller for automotive
superchargers

Aircraft turbine blades

Wristwatch bezel

Value Created by ROBOSHOTs
ROBOSHOTs are electric injection molding machines. They form melted
plastics, etc. into shapes by casting them into metal molds. Many components used in daily lives, including mobile phone components, auto parts,and medical instruments, are made using injection molding machines.
FANUC’s products can perform more precise and stable molding thanks to
the highly-rigid and low-friction mechanism and contribute to manufacturing of high value-added precision molded products. AI backflow monitor
helps estimate the amount of wear on backflow prevention rings, allowing

for replacement of components at optimum timing. This contributes to reducing molding defects and improving operating rates.

Auto headlight

Syringe

Value Created by ROBOCUTs
ROBOCUTs are wire-cut electric discharge machines, which use discharge
phenomena between wire electrodes and the workpiece to perform machining. They can perform machining on anything from thin boards to ultrahard materials, which are difficult to process for cutting tools, into complex
shapes as long as the material is conductive, regardless of its hardness.
By achieving stable machining through the use of the AI thermal displacement compensation function, these products contribute to improving
machine users’ product quality. The automatic wire feeding (AWF3) can

automatically recoverfeeding when a wire is
accidentally cut and disconnected during machining,
thereby enabling unmanned
operation for long periods.
These features contribute toimproving operating rates.

Mold parts for motor cores

Value Created by ROBONANOsROBONANOs are ultra-precision machines that challenge the boundaries
of machining by realizing a 0.1 nm programming command, combining FANUC’s latest CNC and servo control technologies. The machining and lathe
types of ROBONANO address nano-level machining needs in the areas of
optical electronics, clocks, biotechnology, and healthcare.

1μm

Mold for automotive
head-up displays

Mold for ornamental holograms

Mold forsmartphone lenses<TOPIC>FANUC’s contribution to the ultra-precision small plastic molded parts market through ROBOSHOTs was highly
appraised, and was awarded the “2019 Okochi Memorial Production Prize” for the “development of fully electric
injection molding machines for ultra-precision small plastic molded parts” from the Okochi Memorial Foundation.
Areas of contribution to environmental/social issues- Measures to address decreases in working population and highly skilled engineers- Improvement of customers’
productivity- Energy saving in customers’ factories-E nsuring healthy life throughprovision of healthcare products

Sales of ROBOMACHINE business
190,182
183,011

115,056

93,9392016

2017(Millions of yen)

2018

2019

74,9122020

FANUC Annual Report 202012

Materiality
Materiality

Risks

Opportunities

Maintain and improve
competitiveness●T he emergence of competitive
products utilizing new technologies may cause our products tolose their core competence.

●We can maintain our superiority
by developing competitive products, enhancing our services, andproviding our customers with attractive products.
●Creation of new markets throughthe use of new technologies also
introduces new business oppotunities for FANUC to expand its
business domain and grow.
●W e have nearly ﬁnished establishing multiple production sites
for our CNC (computer numericalcontrol) systems and robots, sothat we can continue to serve ourcustomers, even in the event of alarge-scale disaster.

●O ur factory may comes to analmost complete stop, if a largescale disaster happens in thearea where the factory is located.

Response to environmental issues●Stricter environmental regulations
on resource conservation led by
Europe, such as reducing greenhouse gas emissions and managing chemical substance, may leadto increased costs.

●The transition from internal combustion engines to EVs poweredby electric motors, driven by measures taken by the automobile industry to combat climate change,
may have a major effect on themarket environment for our main
products in the FA business.

13●T he concept of lifetime maintenance, which embodies our commitment to continue providing
maintenance as long as our customers continue to use our products, as well as providing highly
dependable, high quality productsthat are “Reliable, Predictable,
Easy to Repair” and minimizing
downtime of our customers’ factories by putting “service ﬁrst”,
has helped to reduce waste forour customers around the world.
●Leading the development of energy-saving products and products high in energy efﬁciency will
provide opportunities to expand
sales of our products in developed markets such as Europe.
The transition to EVs will broaden
the range of robot applications,and create opportunities to increase product sales. The numberof sensors and cameras mounted
to EVs will grow, and is expected to stimulate the increase insales of ROBOSHOTs (electric
injection molding machine).
Furthermore, the demand forhigh-precision parts used in EVs
and the demand for molds for EV
components are both expected
to increase. This will boost thedemand for machine tools in this
sector, leading to a higher demand for CNCs.

Shrinking labor force
population●It may become difﬁcult to hirecompetent people.

●T he rising need for automationin manufacturing sites also represents an opportunity to expand
the industrial robot market, andwill lead to the development ofsafe and secure work environments.

Building a governancesystem●There is a possibility that correct
management decisions will not
be made, or that decision-making
will be delayed.

●P roper decision-making will bemade possible by establishing agovernance system under which
the roles and responsibilities ofthe executive bodies (the management) are separated fromthose the monitoring bodies (theBoard of Directors) .

FANUC Annual Report 2020

Governance
FANUC recognizes that a company will last forever andbe sound with “strict preciseness” and the corruption ofan organization and downfall of a company start froma lack of “transparency”. Based on this basic principleof strict preciseness and transparency, FANUC hasestablished a governance system (internal control system), and is striving to fulﬁll its responsibilities to stakeholders, including customers, employees, shareholders,
suppliers, and local communities, and to achieve sustainable growth as a company.

Governance
Promotion Framework
With regard to governance (internal control system), theCompliance Committee, which is chaired by the Representative Director, has been established to deliberate
whistleblowing cases, establish countermeasures, andgive advice to parties involved. For important matters,
the details of each case, along with countermeasures
are reported to the Board of Directors and the President& CEO and CIO.

Corporate Governance
Policies
In order for the Board of Directors to fulﬁll its monitoring
functions in sync with the ﬁeld, Executive Directors shalldisclose and explain accurate and timely informationfrom worksites to the Board of Directors. The Board of
Directors shall not restrict itself to theoretical discussions, but rather, shall strive to hold discussions that are
constructive. In addition, FANUC has established theNomination and Remuneration Committee, a majority ofwhich comprises Independent Outside Directors, and ischaired by an Independent Outside Director. By increasing the objectivity and transparency of the appointment
and evaluation of Directors, this committee ensures thestrict preciseness and transparency of monitoring functions of management (the executive functions).

Promotion Framework and Initiatives
FANUC is a company with an Audit & Supervisory Board.
We place importance on the opinions of the Audit & Supervisory Board Members at the Board of Directors, while
keeping the Directors (the monitoring functions of management) and the management side (executive functions) independent from each other. Four of the twelve members of
the Board of Directors are Independent Outside Directors,
which account for over one-third of the Board of Directors.
In our efforts to promote diversity in the Board of Directors,
the Directors include one woman and one foreign national.
Three of the five Audit & Supervisory Board Members are
Outside Audit & Supervisory Board Members, one of whom
is a woman. In addition, the Nomination and Remuneration
Committee, the majority of which is comprised of Independent Outside Directors, and is chaired by an Independent
Outside Director, has been established to improve theobjectivity and transparency of the monitoring of the executive functions.
Evaluation of the effectiveness of the Board of Directors
is conducted twice per year at meetings where opinions
are exchanged, by receiving opinions and evaluations from
Directors (especially Independent Outside Directors) and
Audit & Supervisory Board Members. In addition, annual
questionnaire surveys, are conducted to find necessary
topics related to the evaluation. The Board of Directors deliberates on these topics, as appropriate, and discloses thedetails of these deliberations in the corporate governancereport. Last year, there was a particularly lively exchangeof views on strengthening internal governance as well as
corporate governance. As a result, on November 1, 2019, apart of the functions of the Legal Department was made independent , to become the new Governance Department.

Directors and Audit & Supervisory Board Members
Directors (12 in total, including 4 outside directors)
Representative Director, Chairman
Dr. Yoshiharu Inaba
Representative Director, President and CEO and CIO
Kenji Yamaguchi
Representative Director, Senior Executive Vice President and CTO
Hiroyuki Uchida (General Manager, ROBOMACHINE
Business Division)
Representative Director, Senior Executive Vice President and CFO
Yoshihiro Gonda (General Manager, Corporate Administration Division)
Director, Senior Executive Vice President and CISO
Yutaka Saito (General Manager, IoT Administration
Division)
Director, Executive Managing Officer
Dr. Kiyonori Inaba (General Manager, ROBOT Business Division)
Hiroshi Noda (General Manager, FA Business Division)

Director
Michael J. Cicco (President and CEO, FANUC America Corporation)
Kazuo Tsukuda (Outside)
Yasuo Imai (Outside)
Masato Ono (Outside)
Naoko Yamazaki (Outside)
Audit & Supervisory Board Member (5 in total, including
3 outside audit & supervisory board members)Standing Audit & Supervisory Board Member
Katsuo Kohari
Audit & Supervisory Board Member
Katsuya Mitsumura
Masaharu Sumikawa (Outside)
Hidetoshi Yokoi (Outside)
Mieko Tomita (Outside)

FANUC Annual Report 2020

14

Criteria for Independence of Outside Directors and Outside Audit & Supervisory Board Members
With regard to Independent Outside Directors and Outside Audit & Supervisory Board Members, the Company nominates candidates who do not have any certain interest in the Company, and who can be expected tomake 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. Business transactions between the Company and the company from which the candidate comes must
amount to less than 2% of the respective consolidated sales of both companies.
2. The Company must not have any loans from the company from which the candidate comes (if the candidate 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 a lawyer or other professional.)
4. The candidate must not come from the audit firm that is the Company’s Accounting Auditor.
5. There must be no other particular reasons that could give rise to a conflict of interest with the Company.
6. The candidate must not be the spouse or a relative within the second degree of anyone who does notmeet the above conditions 1 through 5.

Optional Nomination and Remuneration Committee
With respect to appointment and dismissal and remuneration, etc. of Directors, we have established the Nomination
and Remuneration Committee, the majority of which is composed of Independent Outside Directors, to secure theobjectivity and transparency, etc. of procedures through the deliberation by this Committee.
Members:
Outside Director Kazuo Tsukuda (chairperson)
Outside Director Yasuo Imai
Outside Director Masato Ono

Outside Director Naoko Yamazaki
Representative Director and Chairman Yoshiharu Inaba
Representative Director, President, CEO and CIO Kenji Yamaguchi

Directors’ Remuneration
The system for Directors’ remuneration, etc. is as follows.
The upper limit of the total amount was set at the following total amount by resolution of the 37th Ordinary
General Meeting of Shareholders of June 28, 2006.
1) Fixed annual aggregate ceiling amount of ¥1 billion2) Variable aggregate ceiling amount, which is set by multiplication of the consolidated net profit of each halfyear and 1/25 of the dividend payout ratio (%). (It should be noted, however that the variable amount for
the first half of the fiscal year shall be paid in the second half of the relevant fiscal year and that for thesecond half shall be paid in the first half of following the fiscal year.)
Note: The payout ratio (%) shall be calculated in accordance with the following formula for each halfyear:
Payout ratio for the first half of the fiscal year (April to September)= Amount of interim dividend per share for the said period
÷ Consolidated net income per share for the said period × 100
Payout ratio for the second half of the fiscal year (October to March next year)= Amount of year-end dividend per share for the said fiscal year÷ (Consolidated net income per share for the said fiscal year
－ consolidated net income per share for the first half of the said fiscal year) × 100

15

FANUC Annual Report 2020

Outside Directors and Outside Audit & Supervisory Board Members
Outside Director

Reason for appointment

Kazuo Tsukuda

In order to develop the Company’s business steadily and to enhance its corporate value, it isquite effective to introduce to the Board of Directors an outsider’s eye with a broad perspective and excellent insight. Kazuo Tsukuda has been providing the Company with extremely
valuable advice, with his outstanding knowledge of manufacturing and extensive experiencein corporate management, having a deep understanding of the Company’s business.

Yasuo Imai

After joining in the Ministry of International Trade and Industry (currently, the Ministry of
Economy, Trade and Industry), Yasuo Imai had experience of being posted overseas as General Manager of the Washington Office of Japan National Oil Corporation. He successfully
held a number of positions starting from the post of Deputy Director-General, Director-General of the Petroleum Department of Agency for Natural Resources and Energy. Subsequently
he moved to the post of Director-General of the Manufacturing Industries Bureau, and thento the post of Commissioner of the Japan Patent Office. Based on these experiences, Yasuo
Imai, being familiar with foreign affairs, has a global perspective and extensive knowledge
concerning the manufacturing industry and the protection of intellectual property, etc. At thesame time, he is currently an active corporate executive and is also knowledgeable about
corporate management due to having more than 13 years’ experience in business. Yasuo Imai
has been providing the Company with extremely valuable advice as Outside Director with his
extensive experience in various fields and from his broad vision.

Masato Ono

Our company has specialized in business activities in the narrow field of the automation of
manufacturing and as such the Board of Directors consists mostly of Directors with engineering background focusing on its core business. Given this context, Masato Ono has been
providing the Company with extremely valuable advice on enhancing corporate value from a
totally different point of view, contributing to active discussions at meetings of the Board of
Directors based on his many years of experience in management of financial institutions.

Naoko Yamazaki

Naoko Yamazaki has extensive knowledge of advanced aerospace engineering and manned
spacecraft systems, including robotic arms, as an engineer. She is well versed in science andtechnology, as well as risk management including crisis management, and has experienced
extremely challenging environments as an astronaut. Based on her wealth of experience andinsight, she can be expected to oversee the Company’s management and provide useful advice for the improvement of corporate values. Thus her new appointment as Outside Director
is proposed.

Outside Audit &Supervisory Board
MemberReason for appointment

Masaharu Sumikawa

Masaharu Sumikawa, who has extensive knowledge based on his many years of experiencein corporate management in the manufacturing industry, has been providing the Company
with advice, etc. from a point of view different from that of the Company while having a deep
understanding of the manufacturing industry, contributing greatly not only to statutory audit
activities but to the Board of Directors and other meetings that require active and rational
discussions.

Hidetoshi Yokoi

Hidetoshi Yokoi has extensive knowledge in the manufacturing field as well as insight built
upon his activities at Japan Science and Technology Agency, which tackles various issues in
response to the needs of society. As we believe that we can expect him to provide appropriate advice with a broad perspective eyeing society as a whole based on these knowledge
and insight, we propose his election as an Outside Audit & Supervisory Board Member.

Mieko Tomita

Mieko Tomita has specialized knowledge and broad insights cultivated as a lawyer. As she
can be expected to provide advice from an objective standpoint on strengthening the audits
and supervision of the Company’s business and corporate governance, as well as maintaining
and improving compliance, her appointment as Outside Audit & Supervisory Board Member is
proposed.

FANUC Annual Report 202016

Financial Highlights (Consolidated)
Millions of yen(except per share amounts)

2018

2019

2020

Net sales

726,596

635,568

508,252

EBITDA

263,794

203,006

134,250

EBITDA margin (%)

36.3

31.9

26.4

Operating income

229,604

163,297

88,350

31.6

25.7

17.4

Operating income ratio (%)
Net income attributable to owners of parent

181,957

154,163

73,371

Total assets

1,728,227

1,625,340

1,512,499

Net assets

1,467,630

1,445,146

1,362,865

ROE (%)

12.9

10.6

5.3

ROA (%)

11.0

9.2

4.7

Cash dividends (¥)

563.201,003.11300.00

Payout ratio (%)

60.0

126.1

78.6

Net sales

Net income/ROE(Millions of yen)

726,596
635,568(Millions of yen)(%)

181,957
154,163508,252

12.9

73,371
10.6

5.3
2018

2019

2020

Net sales by business division(2020)
Service 87.6
17.2％

ROBOMACHINE 74.9
14.7％

17

FANUC Annual Report 2020

(Billions of yen)
FA 143.2
28.3％

2019

2018

2020

Net sales by region(2020)

Asia ex. China 74.4
14.6％

Other 3.9
0.8％(Billions of yen)Japan 117.1
23.0％

China 88.6
17.4％
ROBOT 202.5
39.8％

Europe 99.2
19.5％

Americas 125.1
24.6％

Business Review and Challenges
Business Review
The overall business environment surrounding the FANUC Group during this period was harsh, due primarily to thecautious approach to capital investments mainly in the Chinese market, stemming from the impact of the trade friction between the United States and China. In addition, as the impact of the coronavirus (COVID-19) became more
severe towards the end of the period, the business environment became very difficult and unclear.
Even under these circumstances, in order to continue management from a medium to long-term perspective, the
FANUC Group promoted major initiatives consisting mainly of advancing product development featuring superiorreliability and maintainability, establishing a manufacturing scheme to achieve high quality and short delivery time,and strengthening the service system that supports our customers’ manufacturing activities, by uniting as one group
under the slogans; “one FANUC,” “Reliable, Predictable, Easy to Repair,” and “Service First.”
At the same time, to deal with the current strenuous market conditions, we have steadily fortified our corporate
structure by reducing expenses and time, and streamlining business operations throughout the Company, as well as
reviewing plans for equipment and facility investments according to priority.
During the fiscal year ended March 31, 2020, FANUC posted consolidated net sales totaling ¥508,252 million, down
20.0%, consolidated operating income totaling ¥88,350 million, down 45.9%, and net income attributable to ownersof parent ¥73,371 million, down 52.4%, compared with the previous fiscal year.

〔FA Division〕
Demand in the machine tool industry, the primary market for FANUC CNC systems, declined in the Chinese
market due mainly to the impact of the trade friction
between the United States and China, and demand
for machines also dropped in Taiwan, which is heavily
dependent on the Chinese market. In the face of therestraining of capital investments, demand declined inJapan and Europe as well. Sales in South Korea, as well
as India which had performed solid in the previous period, remained sluggish due mainly to weak domestic
demand. Across the world, automobile-related investment, which greatly impacts demand for machines, wasstagnant. As a result, net sales of CNC systems of the
FANUC Group decreased compared with the previous
fiscal year.
With regard to our lasers, although we continued focusing efforts on expanding sales, the competitions withoverseas manufacturers has intensified.
The FA Division posted consolidated sales totaling¥143,247 million, down 32.1% compared with the previous fiscal year, and FA Division sales accounted for
28.3% of consolidated net sales.

〔ROBOT Division〕
In the ROBOT Division, sales in the Americas were solid. In Japan, sales slightly increased for the automobile
industry and slightly decreased for the general industries. Sales in China and Europe both for the automobile
industry and for the general industries were sluggish.
As a result, sales in the ROBOT Division as a whole decreased compared with the previous fiscal year.
The ROBOT Division posted consolidated sales totaling¥202,491 million, down 6.9% compared with the previous fiscal year. ROBOT Division sales accounted for
39.8% of consolidated net sales.

FANUC Annual Report 2020

18

〔ROBOMACHINE Division〕
As there was almost no short-term demand in the IT-related industry for ROBODRILLs (compact machining
centers), we focused on expanding sales in the market
for automobile parts. However, as the automobile-related market slowed down in the latter half of the period, sales decreased. In addition, sales of ROBOSHOTs(electric injection molding machines) slightly decreased,
although we made persistent efforts to expand sales
mainly to automobile parts, IT-related, and medical
markets. With regard to ROBOCUTs (wire-cut electric
discharge machines), sales also declined, mainly in the
Chinese market.
The ROBOMACHINE Division posted consolidated sales
totaling ¥74,912 million, down 34.9% compared withthe previous fiscal year. ROBOMACHINE Division sales
accounted for 14.7% of consolidated net sales.

〔Service Division〕
The Service Division, under our slogan “Service First,” reinforced our service system, increased efficiency throughproactive introduction of IT technology, enhanced ourservice technology and improved our service tools. By
maintaining a network of over 260 service offices covering more than 100 countries around the world, we areproviding rapid service activities to minimize downtime
in our customers’ factories.
The Service Division posted consolidated sales totaling¥87,602 million, down 4.7% compared with the previous fiscal year. Service Division sales accounted for
17.2% of consolidated net sales.

【Approaches to IoT and AI】
In our efforts to support IoT technology, we released
the third version of the base software of FIELD system,
which is an open platform that connects machines, sensors and other devices of various companies in manufacturing sites, and allows a wide range of companies toparticipate in the development of application software.
This version includes more functions and improves operability and reliability. FIELD system is an IoT productthat connects various equipment in manufacturing sites
to improve productivity, and its major feature is that it isable to process information in real-time at the edge (onsite in machining and assembly lines) of manufacturing
sites.
We also began collaboration with Fujitsu Limited and
NTT Communications Corporation targeting the creation of a “Digital Utility Cloud.” This is an initiative toaccelerate digital innovation with the aim to streamline
overlapping internal operations, which can be seen
throughout the machine tool industry, and improving
the level of customer services. In order to achieve thisobjective, the three companies, including FANUC, willdevelop cloud services that can be used in common by
all companies in the industry for the digitization of theirbusinesses.

19

FANUC Annual Report 2020

With regard to AI, we are collaborating with Preferred
Networks, Inc. to promote the development of morepractical AI functions for use in all products of the FA,
ROBOT, ROBOMACHINE, and FIELD system Divisions.
For example, the AI servo monitors (FA), AI path control(ROBOT), and AI thermal displacement compensation(ROBODRILL, ROBOCUT) functions that we have recently developed, have already been released in the markets of each product group, where they are contributing
to improvements in the operating rate, ease of use,
and machining precision of manufacturing equipment in
actual manufacturing sites. In addition, our Next-Generation Technology Laboratory is currently developing
the next AI functions that will be launched in the market
over the next few years, and has begun research on fundamental AI technologies that will lay the foundations
for the future. We also utilize AI technologies to makeall products of the FA, ROBOT, ROBOMACHINE, and
FIELD system Divisions more intelligent, in order to differentiate ourselves from our competitors.

Challenges
As FANUC products are production goods that are significantly affected by economic changes, we continue
management from a long-term perspective without being affected by short-term events.
The trade friction between the U.S. and China has prolonged, and with the additional impacts of the global
spread of COVID-19, it is anticipated that the situation
will remain difficult and unpredictable for some time. On
the other hand, the demand for factory automation is
expected to grow over the medium to long-term.
In order to adapt to these environmental changes, the
FANUC Group will continue to focus on managementthat is based on a long-term perspective.
Guided by the slogan “one FANUC,” the FANUC Groupwill take maximum advantage of our unique strength inuniting our FA, ROBOT, and ROBOMACHINE Divisions tojointly provide total solutions and take care of customers throughout the world. In particular, we perceive collaboration between CNC machine tools and ROBOTs,
and between ROBOMACHINEs and ROBOTs, as one of
our key themes, and will develop products accordingly.
In addition, the FANUC Group will adhere to its origins
as a producer of production goods to be used at manufacturing sites, and will be thorough in implementing ourslogan “Reliable, Predictable, Easy to Repair” in productdevelopment, to minimize downtime in our customers’
factories and improve their operating rates. Moreover,
we will develop products with an even greater focus onease of use, in order to respond to the increase in demands for factory automation, as acquiring skilled workers becomes more difficult.
Furthermore, we will practice our basic policy of “Service
First” in providing high-level maintenance services pursuant to FANUC’s global standard anywhere in the world,and “lifetime maintenance” for as long as our customers
use our products. In particular, we will continue to focus on “lifetime maintenance,” as it is one of the corestrengths of the FANUC Group, which is difficult forcompetitors to imitate.
The FANUC Group believes that IoT and AI are indispensable technologies for FANUC to continue developing and launching highly competitive products to themarket. By aggressively adopting these technologies inall areas of FA, ROBOT, and ROBOMACHINE products,
we will further promote customers’ production efficiency. We will continue to develop IoT technologies, suchas the “FIELD system” open platform. With regard to

AI technologies, we will develop functions that will be
useful in actual manufacturing sites. For technologies
that the Company does not possess, we will continue toactively collaborate with other companies, and strive toengage in speedy development.
We will pursue measures to strengthen our corporate
structure from a long-term perspective, such as reinforcing product competitiveness, strengthening sales andservice activities, promoting automization and robotization in factories, and enhancing administrative efficiency.
In addition, as a supplier of production goods, we areestablishing multiple production sites and service centers in order to fulfill our responsibilities as a supplierand maintain service activities under any circumstance.
Furthermore, we are also fortifying our supply chain byincreasing the number of parts suppliers and maintaining appropriate inventory levels for parts.
Along with such activities, the FANUC Group is also
striving to maintain its strong corporate structure by
reducing expenses and time, and streamlining business
operations. In addition, we consider human resources
as being most vital for achieving medium and long-term
growth. From this perspective, we will work on the key
issues of creating better working environments for our
employees and further improving employee motivation.
With regard to management, we will focus even moreon the fact that FANUC’s products can make major
contributions to the achievement of SDGs. In addition tothe operating income ratio, ordinary income ratio, andROE, market shares will also be considered to be an important business indicator, and decisions will be madecomprehensively with these in mind.
As a pressing issue, the FANUC Group is prioritizing theprevention of COVID-19 infection among its customers,
partners, employees, and family members, along withcontaining its spread, while striving to continue to provide products and services to customers.
The FANUC Group will continue to thoroughly practiceour basic principles of “Strict Preciseness” and “Transparency,” and promote such measures united as one
group in all aspects, in order to gain more customer
confidence and trust in the FANUC Group while adapting to dramatic changes in the environment, in our efforts to become a company that will continue forever.
Thank you for your continued support and assistance to
FANUC.

FANUC Annual Report 202020

Ten-Year Financial SummaryYears ended March 31

2011

2012

2013

2014

Net sales

446,201

538,492

498,395

450,976

EBITDA

203,078

237,300

202,688

182,528

45.5

44.1

40.7

40.5

189,757

221,834

184,821

164,134

Operating income ratio（％）

42.5

41.2

37.1

36.4

Net income attributable to owners of parent

120,155

138,819

120,484

110,930

Capital investment

9,800

45,71945,091

13,906

Depreciation and amortization

13,321

15,466

17,867

18,394

Research and development expenses

15,543

20,47820,14818,372

Number of employees

4,926

5,198

5,261

5,469

1,013,000

1,130,625

1,219,113

1,343,904

Net assets

894,494

985,322

1,094,129

1,199,863

ROE（％）

14.1

14.8

11.6

9.7

ROA（％）

12.6

13.0

10.3

8.7

Dividend (¥)

184.13212.77184.68170.06

30.0

30.0

30.0

30.0

EBITDA margin（％）
Operating income

Total assets（Persons）

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

21

FANUC Annual Report 2020

FANUC CORPORATION ANNUAL REPORT 2020

Millions of yen, except for per share data

Thousands of
U.S. dollars,
except for per share data

2015

2016

2017

2018

2019

2020

2020

729,760

623,418

536,942

726,596

635,568

508,252$4,662,862

319,524

236,673

179,747

263,794

203,006

134,250

1,231,651

43.8

38.0

33.5

36.3

31.9

26.4

26.4

297,839

215,567

153,217229,604

163,297

88,350810,541

40.8

34.6

28.5

31.6

25.7

17.4

17.4

207,599

159,700

127,697

181,957

154,163

73,371

673,128

26,628113,315

83,207116,110133,106

70,478646,587

21,685

21,106

26,53034,19039,70945,913421,220

28,10534,56742,331

52,95656,16251,315

470,779

5,840

6,327

6,738

7,163

7,866

8,164

8,164

1,611,626

1,512,895

1,564,769

1,729,080

1,625,340

1,512,499

13,876,138

1,386,695

1,334,910

1,369,457

1,467,630

1,445,146

1,362,865

12,503,348

16.1

11.8

9.5

12.9

10.6

5.3

5.3

14.0

10.2

8.3

11.0

9.2

4.7

4.7

636.62490.07395.18563.201,003.11300.00

2,752

60.0

60.0

60.0

60.0

126.1

78.6

78.6

FANUC Annual Report 202022

Financial Section
CONSOLIDATED STATEMENTS OF INCOME････････････････････ 24
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME･･･ 25
CONSOLIDATED BALANCE SHEETS･････････････････････････････ 26
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS･･･ 27
CONSOLIDATED STATEMENTS OF CASH FLOWS･･･････････････ 28

23

FANUC Annual Report 2020

FANUC CORPORATION ANNUAL REPORT 2020

Consolidated Statements of Income

Thousands of
U.S. dollars

Millions of yen

2019

2020

2020

¥ 635,568¥ 508,252$4,662,862

369,761

326,095

2,991,697

265,807

182,157

1,671,165

102,51093,807

860,614163,297

88,350810,541

Interest income

4,195

3,861

35,412Equity in earnings of affiliates

14,243

8,752

80,293

Other, net

1,724

1,853

17,00020,162

14,466

132,715

25,081ーーー(1,973)(18,100)

25,081(1,973)(18,100)

208,540

100,843925,155

Current

48,97724,450224,311

Deferred

4,794

1,776

16,284

Net income

154,769

74,617684,550

Net income attributable to non-controlling interests

606

1,246

11,422

Net income attributable to owners of parent¥ 154,163

73,371$ 673,128

Years ended March 31

Net sales
Cost of goods sold
Gross profit
 elling, general and administrativeS
expenses
Operating income
Other income (expenses):

Extraordinary income (loss)
 ain on transfer of benefit obligationG
relating to employees’ pension fundImpairment loss

Income before income taxes
Income taxes:¥

U.S. dollars

Amounts per share of common stock:
Net income
Cash dividends¥

795.34
1,003.11¥

381.89300.00

$

3.50
2.75

Thousand U.S. dollar figures are converted from yen figures that are rounded down to the nearest million yen.
Accordingly, the total amount may not be equal to the combined total of individual items.

FANUC Annual Report 2020

24

FANUC CORPORATION ANNUAL REPORT 2020

Consolidated Statements of Comprehensive Income

Thousands of
U.S. dollars

Millions of yen

2019

2020

2020

¥154,769¥74,617$684,550

Valuation difference on available-for-sale securities(3,979)(4,053)(37,174)

Foreign currency translation adjustment(1,946)(18,634)(170,954)

Remeasurements of defined benefit plans

4,780

7,408

67,963

Share of other comprehensive income of affiliates accounted for using equity method(4,267)(1,961)(17,981)

Total other comprehensive income(5,412)(17,240)(158,155)¥149,357¥57,377$526,394

148,906

56,796

521,055

451

581

5,330

Years ended March 31

Net income
Other comprehensive income

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

Thousand U.S. dollar figures are converted from yen figures that are rounded down to the nearest million yen.
Accordingly, the total amount may not be equal to the combined total of individual items.

25

FANUC Annual Report 2020

FANUC CORPORATION ANNUAL REPORT 2020

Consolidated Balance Sheets

Millions of yen

As of March 31
ASSETS
Current assets:
Cash and bank deposits
Receivables, trade:
Notes and accounts
Allowance for doubtful accounts
Marketable securities
Finished goods
Work in progress
Raw materials and supplies
Other current assets
Total current assets
Investments
Property, plant and equipment, at cost:
Land
Buildings
Machinery and equipment
Construction in progress
Less accumulated depreciation
Property, plant and equipment, net
Intangible assets:
のれん
Other intangible assets
Total intangible assets
Total assets
LIABILITIES AND NET ASSETS
Current liabilities:
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
NET ASSETS
Shareholders’ equity:
Common stock:
Authorized - 400,000,000 shares
Issued - 204,031,841 shares
Capital surplus
Retained earnings
Treasury stock, at cost :2019 - 10,210,522 shares2020 - 12,205,852 shares
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

Thousands of
U.S. dollars

2019

2020

2020

¥607,155¥405,861$3,723,486

106,204(1,123)15,00071,042
55,17429,93024,302907,684
133,477

85,266(831)
126,700
65,122
51,97925,45010,833
770,380
134,764

782,247(7,614)
1,162,385
597,440
476,871
233,486
99,376
7,067,706
1,236,357

145,885
463,312
236,778
56,715(328,114)
574,576

146,085
458,383
292,695
65,458(365,485)
597,136

1,340,220
4,205,348
2,685,275
600,522(3,353,064)
5,478,311

ー
9,603
9,603
¥1,625,340

ー
10,21910,219¥1,512,499

ー
93,74393,743$13,876,137¥36,567
15,007
8,215
75,278135,067¥26,974
9,270
8,306
56,413
100,963$247,458
85,04576,192
517,550926,256

42,097
3,030
45,12744,652
4,019
48,671

409,642
36,871
446,51369,01496,265
1,380,439

69,01496,265
1,351,122

633,155
883,155
12,395,614(91,040)ー
1,454,678

ー(127,822)
1,388,579

ー(1,172,678)
12,739,256

9,111(6,677)(19,337)(16,903)
7,371
1,445,146¥1,625,340

5,058(26,608)(11,929)(33,479)
7,765
1,362,865¥1,512,499

46,403(244,110)(109,431)(307,146)
71,23812,503,348$13,876,137

Thousand U.S. dollar figures are converted from yen figures that are rounded down to the nearest million yen.
Accordingly, the total amount may not be equal to the combined total of individual items.
FANUC Annual Report 2020

26

FANUC CORPORATION ANNUAL REPORT 2020

Consolidated Statements of Changes in Net Assets
Millions of yen

Commonstock

Capitalsurplus¥69,014¥69,014¥96,264¥96,264

Balance at March 31, 2018
Restated balance
Cash dividends
Net income attributableto owners of parent
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change due to tax rate change
Change in equity from transactions
with non-controlling shareholders
Net change except shareholder'sequity during the year
Balance at March 31, 2019
Cumulative effects of changes
in accounting policies
Restated balance
Cash dividends
Net income attributableto owners of parent
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change due to tax rate change
Change in equity from transactions
with non-controlling shareholders
Net change except shareholder'sequity during the year
Balance at March 31, 2020

6
(6)

Valuation
Foreign RemeasureTreasury
NonTotaldifference on currency
ments
stock,
controlling
net assets
available-for- translation of definedinterests
at costsale securities adjustment benefit plans¥1,398,977(¥91,020)¥13,090(¥619)(¥24,117)¥6,040 ¥1,467,630¥1,398,977(¥91,020)¥13,090(¥619)(¥24,117)¥6,040 ¥1,467,630(173,665)(173,665)

Retainedearnings

154,163

154,163

1,121

1,121
(187)
10
ー
ー

(157)

(187)
4
163

ー

¥69,014¥96,264¥1,380,439(¥91,040)(3,979)(6,058)

4,780

1,331

(3,926)¥9,111(¥6,677)(¥19,337)¥7,371¥1,445,146(63)¥69,014¥96,264¥1,380,376(102,541)(63)(¥91,040)¥9,111(¥6,677)(¥19,337)¥7,37173,371

4
(4)

(84)

¥1,445,082(102,541)
73,371
ー(36,875)
9ーー(36,875)588

ー¥69,014¥96,264¥1,351,122(¥127,822)(4,052)(19,931)

7,408

394

(16,182)¥5,058(¥26,608)(¥11,928)¥7,765¥1,362,865

Thousands of U.S. dollars

Commonstock

Capitalsurplus$633,155$883,155

Balance at March 31, 2019
Cumulative effects of changes
in accounting policies
Restated balance
Cash dividends
Net income attributableto owners of parent
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change due to tax rate change
Change in equity from transactions
with non-controlling shareholders
Net change except shareholder'sequity during the year
Balance at March 31, 2020

Valuation
Foreign RemeasureTreasury
NonTotaldifference on currency
ments
stock,
controlling
net assets
available-for- translation of definedinterests
at costsale securities adjustment benefit plans$12,664,577($835,229)$83,587($61,256) ($177,403)$67,623 $13,258,220

Retainedearnings(577)$633,155$883,155$12,664,000(940,743)(577)($835,229)$83,587($61,256)($177,403)

673,128

36
(36)

(770)

ー
(338,302)
82
ーー(338,302)
45
807

ー

$633,155$883,155$12,395,614($1,172,678)(37,174)(182,853)

67,963

3,614(148,458)$46,403($244,110)($109,431)$71,238$12,503,348

Accordingly, the total amount may not be equal to the combined total of individual items.
FANUC Annual Report 2020

$13,257,633(940,743)
673,128

Thousand U.S. dollar figures are converted from yen figures that are rounded down to the nearest million yen.

27

$67,623

Consolidated Statements of Cash FlowsFANUC CORPORATION ANNUAL REPORT 2020

Thousands of
U.S. dollars

Millions of yen

Years ended March 31

Cash flows from operating activities
Income before income taxes
Adjustments to reconcile income before income
taxes to net cash provided by operating activities:
Depreciation and amortization
Loss on impairment of non-current assets
Allowance for doubtful accounts
Net defined benefit liability
Net defined benefit asset
Interest and dividend income
Equity in earnings of affiliates, net(Increase) decrease in receivables, trade(Increase) decrease in inventories
Increase (decrease)in payables, trade
Other
Cash generated from operations
Interest and dividends received
Income taxes paid
Other
Net cash provided by operating activities

2019年

2020年

2020年

¥208,540¥100,843$925,155

39,709ー(200)(25,320)(6,732)(5,705)(14,243)
67,500(6,249)(16,393)
3,855
244,762
13,662(79,985)(701)
177,738

45,913
1,973
(261)
2,762
(7,456)(5,305)(8,752)
18,358
10,288(8,646)
14,118
163,835
11,965(29,655)(1,273)
144,872

421,220
18,100(2,385)25,330(68,403)(48,660)(80,293)
168,412
94,385(79,321)
129,522
1,503,064
109,761(272,055)(11,678)
1,329,091(60,142)(295,844)
263,045(692,009)(7,642)(41,100)(773,559)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchases of property, plant and equipment
Purchases of investment securities
Other
Net cash used in investing activities(125,324)(244)(4,990)(123,343)(32,248)
28,672(75,429)(834)(4,480)(84,319)

Cash flows from financing activities
Purchases of treasury stock
Dividends paid
Other
Net cash used in financing activities(183)(173,571)
886(172,868)(36,870)(102,546)(1,310)(140,726)(338,247)(940,779)(12,018)(1,291,064)(580)(12,533)(114,981)(119,053)
725,903(92,706)
607,714(850,513)
5,575,357

864

ー

ー

¥607,714¥515,008$4,724,834

Effect of exchange rate changes oncash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of year

67,357

Thousand U.S. dollar figures are converted from yen figures that are rounded down to the nearest million yen.
Accordingly, the total amount may not be equal to the combined total of individual items.

FANUC Annual Report 2020

28

Global Service Network
FANUC fully supports customers in over 100 countries, through more than 260 service locations throughout the world.

FANUC America

FANUC Europe

BEIJING-FANUCSHANGHAI-FANUC Robotics
SHANGHAI-FANUC ROBOMACHINEKOREA FANUC

FANUC INDIA

FANUC THAIFANUC INDONESIA■ The Americas

SHANGHAI-FANUC Robotics CO., LTD.

FANUC America Corporation

SHANGHAI-FANUC ROBOMACHINE CO., LTD.

Chicago, U.S.A. Tel.（1）847-898-5000

ROBOT system development, manufacture, sales and services;

Detroit, U.S.A. Tel.（1）248-377-7000
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;

Shanghai, China Tel.（86）21-5032-7700

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 CORPORATIONROBOT system development, manufacture, sales and services

Taichung, Taiwan Tel.（886）4-2359-9101■ AsiaROBOT system sales and services

BEIJING-FANUC Mechatronics CO., LTD.
Beijing, China Tel.（86）10-6298-4726

CNC manufacture, sales and services; LASER sales and services

CNC manufacture, sales and services; LASER, ROBOT and

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

29

FANUC Annual Report 2020

Core Service Center

FANUC has two core service centers in Japan.
One is in Hino in Tokyo, and the other is in Komaki, in Aichi
Prefecture.
Each has a call center, a parts center, and a warehouse forspare parts for overseas use. With this, FANUC is able toprovide better services.

TAIWAN FANUC

NagoyaNagoya Service Center

Hino Branch Office

FANUC SOUTH AFRICA

FANUC THAI LIMITEDFANUC PHILIPPINES CORPORATION

CNC, ROBOT, ROBOT system and ROBOMACHINE sales and

CNC, LASER, ROBOT and ROBOMACHINE services

services; LASER services

FANUC VIETNAM COMPANY LIMITED

Bangkok, Thailand Tel.（66）2-714-6111

FANUC MECHATRONICS（MALAYSIA）SDN. BHD.

Manila, Philippines Tel.（63）49-546-0178（63）49-546-0179

Ho Chi Minh, Vietnam Tel.（84）28-7309-7970

Kuala Lumpur, Malaysia Tel.（60）3-3082-1222

CNC, LASER, ROBOT and ROBOMACHINE services

CNC, ROBOT, ROBOT system and ROBOMACHINE sales and

FANUC OCEANIA PTY. LIMITED

services; 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

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 andservices; LASER services

FANUC Annual Report 202030

Web Site: https://www.fanuc.com/
Reprint or reproduction is prohibited without permission. All rights reserved