ロボット ロボマシン

ANNUAL REPORT 2016
Year ended March 31, 2016

FANUC’s Symbol “Keyaki” – Zelkova tree

CONTENTS
Financial Highlights (Consolidated)･････････････2
A Message To Our Shareholders･･･････････････3
Summary of FANUC Business･･････････････････4
Business Report･･･････････････････････････････5
Management Policy･･･････････････････････････8
History of FANUC･････････････････････････････9
Corporate Governance･･････････････････････ 10
Financial Section････････････････････････････ 13
Global Network･････････････････････････････ 36

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, theseforward-looking statements are subject to various risks and uncertainties and actual business results may vary substantially fromthe forecasts expressed or implied in forward-looking statements. Accordingly, you are cautioned not to place undue relianceon forward-looking statements. FANUC disclaims any obligation to revise forward-looking statements in light of new information,
future events or other findings.

1

Financial Highlights (Consolidated)Thousands of
U.S. dollars

Millions of yen

Years ended March 31

2014

2015

2016

2016

¥ 450,976¥ 729,760¥ 623,418$ 5,516,973

110,930

207,599

159,700

1,413,274

Total assets¥1,343,904¥1,611,626¥1,512,895$13,388,451

Net assets

1,199,863

1,386,695

1,334,910

11,813,363

For the year:
Net sales
Net income attributable to owners of parent
At year end:

Yen

U.S. dollars

Per share data:
Net income¥Cash dividends

566.86¥ 1,061.02

170.06636.62¥

816.78$

7.23

490.07

4.34

Note :	The U.S. dollar amounts shown above and elsewhere in this annual report are converted from yen, for convenience only, atthe rate of ¥113 = U.S.$1.00.

Net Sales

Net income attributable to owners of parent(Millions of yen)

Total Assets(Millions of yen)

(Millions of yen)729,760

1,611,626

1,512,895

207,599

623,418

1,343,904

159,700
450,976

110,930

2014

2

2015

2016

2014

2015

2016

2014

2015

2016

FANUC CORPORATION ANNUAL REPORT 2016

A Message To Our Shareholders

During this period, demand for capital investment was generally unchanged in Europe and Japan and remained steady in the Americas;
however, demand further slowed in China as well as in other parts of Asia due to the effects of economic conditions in China. These conditions made the business environment severe as a whole.
Under these circumstances, the FANUC Group strived to earn customers’ trust in our products and services to an even greater extent, by
becoming united as one group under the slogans “one FANUC,” “Reliable / Predictable / Easy to Repair,” and “Service First” in order to further
develop our business.
During the fiscal year ended March 31, 2016, FANUC posted consolidated net sales totaling ¥623,418 million, down 14.6%, consolidated
operating income totaling ¥215,567 million, down 27.6%, and consolidated net income totaling ¥159,700 million, down 23.1%, comparedwith the previous fiscal year.
Going forward, demand for capital investment in China is expected to remain sluggish for some time before any recovery. Furthermore, in the
midst of concerns over a market slowdown in the Americas, there are signs of instability in the movement of foreign exchange rates. As aresult of these and other factors, the situation is expected to continue to remain difficult and unpredictable.
In coping with such conditions, the FANUC Group, under the slogan of “one FANUC,” will take maximum advantage of our unique strength
by uniting our FA, Robot and ROBOMACHINE divisions to provide total solutions jointly and serve our customers throughout the world.
In addition, the FANUC Group will adhere to its origins as a producer of on-site manufacturing equipment and will thoroughly apply the idea
in our slogan, “Reliable / Predictable / Easy to Repair” in product development, in order to minimize downtime in our customers’ factories andimprove operation rates.
Furthermore, we will practice our core policy of “Service First” in providing high-level services worldwide based on FANUC’s global standard,and “lifetime maintenance” for as long as our customers use our products.
In addition to the basic policy outlined above, we will move quickly to enhance the support that we provide for the Internet of Things (IoT)
in order to promote efficiency in our customers’ manufacturing processes even further. Expectations are high for future growth that will result
from the FANUC Group developing new business that provides support for the IoT.
By uniting in the promotion of such actions, we will make efforts to gain our customers’ confidence and trust even more, resulting in thestability and growth of our core business, and ensuring we endure as a company.
Thank you for your continued support and assistance to FANUC.

Yoshiharu Inaba
Chairman & CEO

Kenji Yamaguchi
President & COO

3

Summary of FANUC Business

FA Division
Main Products

Results for Fiscal 2015

●

CNC

●

Servo Motors

Consolidated net sales was ¥170,211
million, down 17.6% compared with●

LASER Oscillators

the previous fiscal year, accounting for27.3% of consolidated net sales.
Refer to page 5 for details

Robot Division
Main Products

Results for Fiscal 2015

Collaborative Robot Consolidated net sales was ¥188,295
million, up 20.3% compared with the● Super Heavy
previous fiscal year, accounting for 30.2%
Payload Robotof consolidated net sales.
● Genkotsu-Robot●

Refer to page 6 for details

Robomachine Division
Main Products

Results for Fiscal 2015●

ROBODRILL

Consolidated net sales was ¥183,011●

ROBOSHOT●ROBOCUT●ROBONANO

million, down 37.2% compared withthe previous fiscal year, accounting for29.4% of consolidated net sales.

Refer to page 7 for details

Service Division
Results for Fiscal 2015
Consolidated net sales was ¥81,901 million, up 9.0% compared with the previous fiscal year, accounting for 13.1% ofconsolidated net sales.

4

FANUC CORPORATION ANNUAL REPORT 2016

Business Report

FA Business Division
The machine tool industry, the primary market for
FANUC CNC systems, witnessed a significant reduction in demand in China, the impact from which resulted in sluggish demand in Taiwan and South
Korea. Demand in Japan also slowed from the second half of the fiscal year. Under these circumstances, net sales of FANUC Group CNC systems
decreased.
On the development front, in the “30i Series” of nano
CNCs that deliver high-speed, and high-quality machining, the “iHMI” was developed as a management
tool that uses superior operability to comprehensively support efforts to improve productivity at machining sites based on the phases of “planning,”“machining,” and “improvement.” The “MT-LINKi,”
which runs on a PC, was developed as software forthe management of machine tool operations. Thesedevelopments make it easier to create production
management systems that promote IoT, and contribute to areas such as improvement of the operating
rate of factories.
Furthermore, the “30i Series” and “0i Series” were
given various upgrades and additional functions, including significant enhancement of basic performance.
In the servo field, the lineup of servo motors andspindle motors was enhanced and new functions
were developed in order to expand sales for a wide
range of fields such as large and small machine tools
as well as machining equipment for aircraft components.
FANUC laser sales were sluggish both domesticallyand abroad.
New developments in lasers included the fiber laser
oscillators “FANUC FIBER LASER series,” which features a lineup of devices ranging from 2kW to 6kW.
The series offers fine-tune response to customer
needs, support for high-speed, high-precision cutting of thin sheets in addition to cutting and weldingof thick sheets.

30i Series

SERVO MOTOR, SERVO AMPLIFIER

LASER

5

ROBOT Business Division
Sales of robots continued to remain steady in theAmericas and in Europe, and were also favorable in
China. In Japan, sales to both the automobile industry and general industries increased in the second
half of the fiscal year. The accumulative shipment
volume of robots at the end of November 2015 exceeded 400,000 units.
New developments included the enhancement of
the green robot “Collaborative Robot” series, which
does not require a safety fence and enables robots
and humans to work together, with the addition ofsmall payload types capable of lifting loads of 5kg, 6
kg or 7 kg.
In the multi-purpose intelligent “FANUC Robot R2000iC series,” which is the culmination of FANUC’s
long years of experience and technology, the longarm type 270 kg payload and 210 kg payload models were newly developed. The range of applications
is expected to expand due to improvements in areas
such as wrist payload capacity and rigidity. In the“FANUC Robot R-1000iA series,” which is smaller
than the R-2000iC series, a new type was addedthat has a higher degree of freedom of posture andcan work in smaller spaces than previous models.
As a result, manufacturing spaces can be made more
efficient.
In addition, the “FANUC Robot M-20iB” was developed with an increased payload as a successor
model to the medium-sized intelligent handling robot “FANUC Robot M-20iA”. The enhanced dustproof
andwaterproof
performanceandslimmed-down arm of the new model allow it to be
used in a wider range of work environments than
before.
Furthermore, “Zero Down Time (ZDT)” was developed as a maintenance diagnosis functional toolthat can be applied to various FANUC robots. By
monitoring the status of robots, ZDT plays a role inpreventive maintenance and thus helps improve theoperating rate of robots.
With such new products and new functions, therange of application of FANUC robots is anticipated
to expand further.

6

Collaborative Robot

R－２０００i C

M－２０i BFANUC CORPORATION ANNUAL REPORT 2016

ROBOMACHINE Business Division
Sales of the ROBODRILL (small machining center)decreased significantly compared with the previous
fiscal year during which time demand was prevalentthroughout the year. This was due to the end of
short-term demand from the IT industry in the firsthalf of the period and the almost complete absenceof any recovery in demand from IT industry thereafter; however, sales to other industries in Japan andoverseas markets remained steady.
On the development front, in the “FANUC ROBODRILL α-DiA series,” the addition of specifications to
attach a servo door to the front to enable fast opening/closing movement, combined with the existing
servo side door specifications, has further facilitatedautomation with robots. The effect of shortened cycle times and other factors are expected to lead toan increase in sales.
Sales of ROBOSHOTs (electric injection molding machine) were steady mainly in overseas markets including China. The accumulative shipment volume of
ROBOSHOTs at the end of February 2016 exceeded
50,000 units.
For the electric injection molding machine, “FANUCROBOSHOT α-SiA series,” the “FANUC ROBOSHOT
SI-20A”, a second injection unit, was developed toenable “two-component molding,” which is the combination of two types of resin. With such progress,
an increase in sales in the medical and automotive
fields is expected.

ROBODRILLROBOSHOT

Sales of ROBOCUTs (wire-cut electric discharge machine) remained steady mainly in Japan, Europe andChina.
New developments included efforts to increase theprecision of die and component machining further.
This was carried out with the thermal displacementcompensation function for the “FANUC ROBOCUT
α-CiA series,” which enables high-precision machining in environments with extremely volatile temperatures.
In addition, in the ROBOMACHINE Business Division,
as a part of our efforts in the IoT, the functions of the“LINKi” software were strengthened for ROBODRILL,ROBOSHOT and ROBOCUT; the “LINKi” software allows the operation status in a factory to be monitored by computer in real time. These initiatives
facilitate preventive maintenance and also enable
the improvement of operation rates at manufacturing sites.

ROBOCUT

7

Management Policy

Basic Management Policy
FANUC was the first private company to succeed in the development of NC’s and servomechanism inJapan, and ever since this success in 1956, has consistently pursued automation in factories.
With its three pillars consisting of the FA business, which comprises FANUC’s basic technologyof NC and servos, the ROBOT and ROBOMACHINE businesses which apply this basic technology,
FANUC contributes to the manufacturing industry in Japan and overseas by promoting automationand efficiency in manufacturing.

Three Key Words of FANUC

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

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 used bycustomers, through more than 250 service
locations in 46 countries throughout the world.

8

FANUC CORPORATION ANNUAL REPORT 2016

History of FANUC
1956
1959
1972


1974

1975
1977

1978

1980
1982

1984

1985
1986


1987
1989
1992


1997
1999
2003

2009

2012
2013
2015

2016

The first NC and SERVO systems in the Japanese private sector were developed successfully.
The first electro-hydraulic pulse motor was developed.
FANUC was established.
CNC was introduced.
NC Drill was developed.
ROBOTs were developed and installed in FANUC factories.
The production and sale of DC SERVO MOTORs were started under GETTYS MANUFACTURING., INC license.
Wire-cut electric discharge machine was completed.
FANUC USA CORPORATION was established.
The commercial production and shipment of ROBOTs started (ROBOT-MODEL1).
KOREA NUMERIC CORPORATION was jointly established by FANUC and Hwacheon Machinery Works, Co. Ltd.
FANUC EUROPE S.A. was established.
The Fuji Factory was completed.
GMFanuc Robotics Corporation was jointly established in the U.S.A. by FANUC and General Motors.
AC SERVO MOTOR was developed.
The headquarters were moved to the foot of Mt. Fuji.
All-electric plastics injection molding machine, “FANUC AUTOSHOT” was developed.
FANUC series 0 was developed.
FANUC TAIWAN Corporation was established.
GE Fanuc Automation Corporation was jointly established in the U.S.A. by FANUC and General Electric.
Digital SERVO was completed.
CO2 LASER was developed.
The Tsukuba Factory was constructed.
GMFanuc Robotics Corporation was restructured to FANUC’s wholly owned share holding company, FANUC Robotics Corporation, together with its subsidiaries.
BEIJING-FANUC Mechatronics CO., LTD was jointly established by FANUC and the Beijing Machine Tool Research Institute.
FANUC INDIA PRIVATE LIMITED was established.
SHANGHAI-FANUC Robotics CO., LTD. was jointly formed in China by FANUC and Shanghai Mechanical & Electric Industrial
Investment Corp.
The commercial production of 16i Series CNC started.
The commercial production of intelligent ROBOTs started.
The commercial production of 30i Series CNC started.
The joint venture with General Electric Company was resolved and joint venture’s FA operations in the Americas weretransferred to FANUC America Corporation.
The commercial production of the Genkotsu-Robot, a Parallel Link Robot, started.
European subsidiaries were reorganized, and FANUC Europe Corporation was established.
Subsidiaries in North and South America were reorganized, and FANUC America Corporation was established.
Collaborative ROBOT CR-35 A was developed.
FIBER LASER was developed
Sales
The Mibu Factory was completed

623

800
700

(Billions of Yen)
600
500
400
300
200
100

72

74

76

78

80

82

84

86

88

90

92

94

96

98

00

02
04
06
08
10
12
14
16
Consolidated from the year ended March 31,1983

0

9

CORPORATE GOVERNANCE

Fundamental Concept of Corporate GovernanceWe ensure the practice of the principle, “preciseness and transparency,” which has been the principle of
FANUC since its foundation. We think it is important for the practical functioning of governance to share suchan easy-to-understand and simple principle among all officers and employees of the Group.

About “Preciseness and Transparency”
PrecisenessThe permanence and soundness of a company are created by preciseness.
Transparency
The corruption of an organization and the collapse of a company start from opacity.
By establishing a specific code of conduct while practicing “preciseness and transparency,” we will makeefforts to maintain a high level of awareness of officers and employees of our Group into the future.

Organizational Structure
As we are surrounded by a very rapidly changing business environment, unless the Board of Directors
understands accurate information about customer and market trends, service status, etc., the Board will not
be able to make appropriate managerial decisions. Due to these circumstances, in principle, our directors
other than outside directors execute the business of our company, aiming at a system where directors are
involved in daily operations themselves, acquire accurate information themselves, and mutually share suchinformation among the members of the Board of Directors. Furthermore, we have chosen to be a company
with Audit & Supervisory Board, as an organizational design that can make best use of these characteristics.

Directors and Audit & Supervisory Board Members
Member of the Board (13 in total, including 3 outside directors)
Representative Member of the Board, Chairman and CEO
Dr. Yoshiharu Inaba
Representative Member of the Board, President and COO
Kenji Yamaguchi (General Manager, FA Business Division)
Representative Member of the Board, Senior Executive Vice President and CTO
Hiroyuki Uchida (General Manager, ROBOMACHINE Business Division)
Representative Member of the Board, Senior Executive Vice President and CFO
Yoshihiro Gonda (General Manager, Corporate Administration Division)
Member of the Board, Executive Managing Officer
Dr. Kiyonori Inaba (General Manager, ROBOT Business Division)
Hiroshi Noda (Vice General Manager (R&D), FA Business Division)
Katsuo Kohari (Vice General Manager (Sales), FA Business Division, General Manager, Service Division)
Shunsuke Matsubara (General Manager, Research & Development Administration Division)Toshiya Okada (Vice General Manager, Corporate Administration Division, General Manager, Legal Division)
Member of the Board
Richard E. Schneider (Chairman, FANUC America Corporation)
Kazuo Tsukuda (Outside)
Yasuo Imai (Outside)
Masato Ono (Outside)
Audit & Supervisory Board Members (5 in total, including 3 outside Audit & Supervisory Board Members)
Shunsuke Kimura
Naoki Shimizu
Dr. Takeo Nakagawa (Outside)
Masaharu Sumikawa (Outside)
Hajime Harada (Outside)10

FANUC CORPORATION ANNUAL REPORT 2016

Outside Directors and Outside Audit & Supervisory Board Members
Outside Directors

Reason for appointment

Kazuo Tsukuda

In order to develop the Company’s business steadily and to enhance its corporate value, it is quite 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 experience in management, having a deep understanding of the Company’sbusiness. He will be expected to continue to contribute to the Company’s Board of Directors from an independent position as Outside Director.

Yasuo Imai

After joining in the Ministry of International Trade and Industry (currently, the Ministry of Economy, Trade and Industry), Yasuo Imai had experienceof 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 andEnergy. Subsequently he moved to the post of Director-General of the Manufacturing Industries Bureau, and then to the post of Commissionerof the Japan Patent Office. Based on these experiences, Yasuo Imai, being familiar with foreign affairs, has a global perspective and extensive
knowledge concerning manufacturing industry and the protection of intellectual property, etc. At the same time, he is a currently active corporate
executive and is also knowledgeable about corporate management due to his nearly 10 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. He will be expected to continue to contribute to the Company’s Board of Directors from an independent position as Outside Director.

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 theCompany with extremely valuable advice on enhancing corporate value from a totally different point of view by contributing to active discussions
at the meeting of the Board of Directors based on his many years of experience in management of financial institutions. Although Masato Ono
has served as Deputy President and Representative Director of Mizuho Financial Group, Inc., he meets the Company’s criteria for independenceof Outside Directors and Outside Auditors, (The Company has never applied for a loan from any banks of Mizuho Financial Group.), it has beenover eight (8) years since he retired as Director of the Mizuho Financial Group, Inc. and there is no risk of his independence being affected by thisposition. He will be expected to continue to contribute to the Company’s Board of Directors from an independent position as Outside Director.

Outside Audit &Supervisory Board
Members

Reason for appointment

Takeo Nakagawa

As Professor Emeritus of the University of Tokyo and a corporate manager, Takeo Nakagawa has been consistently engaged in “monozukuri(manufacturing).” For this reason, he has given us objective and valuable advice from various aspects based on his profound understanding of theCompany’s business. We believe that we can expect him to continue to play a significant role going forward.

Masaharu Sumikawa

We expect him to provide advice whenever necessary, based on his wide experience, expertise and knowledge he had obtained as a longserving corporate executive.

Hajime Harada

Hajime Harada has been providing the Company with extremely valuable advice whenever necessary based on his wide experience andknowledge as a lawyer. Although his term of office as Outside Auditor of the Company will have been for 12 years as of the conclusion of themeeting, he meets the Company’s criteria for independence of Outside Directors and Outside Auditors (see the section “Independent Directors/
Auditors”) and has no business transactions with or interest in the Group. As a lawyer, Hajime Harada has a responsibility under the Basic Ruleson the Duties of Practicing Attorneys to “maintain his or her freedom and independence” (Article 20 of the Rules) and to “perform his or her
duties fairly” (Article 5), and in fact he gives his frank opinion from an independent standpoint. We therefore believe that he maintains sufficient
independence now and in the future. In particular, he has a deep understanding of corporate governance, an issue that has grown increasingly
important in recent years, gained through his experience including service as a lawyer on compliance committees at another listed company
for many years. Furthermore, he has advanced, wide-ranging and specialized knowledge, based on his experience including court cases in avariety of fields such as systems development, intellectual property rights, antimonopoly law, international joint ventures, and claims collection.
For these reasons, we can expect him to continue to offer appropriate advice from an extremely broad perspective with regard to risks that theCompany may face in the future and other matters.

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 to make frank comments without hesitation at Boardof Directors meetings, etc. Furthermore, in order to ensure such real independence, as minimum requirements, candidates must meeteach 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 therespective 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 (ifthe 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 not meet the above conditions
1 through 5.

11

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FANUC CORPORATION ANNUAL REPORT 2016

Financial Section
TEN-YEAR FINANCIAL SUMMARY･･･････････････････････････････ 14
CONSOLIDATED STATEMENTS OF INCOME････････････････････ 16
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME･･･ 17
CONSOLIDATED BALANCE SHEETS･････････････････････････････ 18
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS･･･ 19
CONSOLIDATED STATEMENTS OF CASH FLOWS･･･････････････ 20
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS･････ 21
NON-CONSOLIDATED STATEMENTS OF INCOME･ ･････････････ 34
NON-CONSOLIDATED BALANCE SHEETS･ ･･････････････････････ 35

13

Ten-Year Financial Summary

2007

2008

2009

2010

¥ 419,560¥ 468,399¥ 388,271¥ 253,393

162,930

189,564

134,449

55,024

Operating income as a percentage of net sales

38.8%

40.5%

34.6%

21.7%

Income before income taxes and minority interests

179,412211,875

149,148

55,826

Net income attributable to owners of parent

106,756

127,030

97,16237,511

Current assets

675,944

750,328

683,719

623,573

Current liabilities

100,810104,151

55,72556,188

Total assets

951,664

1,046,837

970,441

891,651

Net assets

820,556

911,395

893,282

812,657

499.83611.14467.55187.75————150.00183.35140.2756.33

3,816.91

4,225.39

4,177.28

4,133.89

Years ended March 31

Net sales
Operating income

Per share data (Yen and U.S. Dollars):

Net income:
Basic
DilutedCash dividends
Net assets

Note : The U.S. dollar amounts shown above and elsewhere in this annual report are converted from yen, for convenience only, atthe rate of ¥113 = U.S.$1.00.

14

FANUC CORPORATION ANNUAL REPORT 2016

Millions of yen, except for per share data

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

2011

2012

2013

2014

2015

2016

2016

¥ 446,201¥ 538,492¥ 498,395¥ 450,976¥ 729,760¥ 623,418$ 5,516,973

189,757

221,834

184,821

164,134

297,839

215,567

1,907,672

42.5%

41.2%

37.1%

36.4%

40.8%

34.6%

34.6%

193,495

228,578

191,242

174,360

311,951

229,3612,029,743

120,155

138,819

120,484

110,930

207,599

159,700

1,413,274

753,992

848,669

906,440

1,027,801

1,273,355

1,072,770

9,493,540

89,589115,270

92,97399,449172,611106,116

939,080

1,013,000

1,130,625

1,219,113

1,343,904

1,611,626

1,512,895

13,388,451

894,494

985,322

1,094,129

1,199,863

1,386,695

1,334,910

11,813,363

613.75709.20615.59566.86

1,061.02

816.78

7.23

—

—

—

—

—

—

—

184.13212.77184.68170.06636.62490.074.34

4,550.71

5,013.69

5,565.64

6,102.20

7,049.39

6,825.27

60.40

15

Consolidated Statements of Income

Thousands of
U.S. dollars(Note 3)

Millions of yen

2014

2015

2016

2016

¥ 450,976¥ 729,760¥ 623,418$5,516,973

227,189

350,746

326,9122,893,027

223,787

379,014

296,506

2,623,946

59,653

81,17580,939716,274

164,134

297,839

215,567

1,907,672

Interest income

2,300

2,628

2,537

22,451Equity in earnings of affiliates

5,452

9,886

11,494

101,717

Other, net (Note 10)

2,474

1,598

(237)

(2,097)

10,226

14,112

13,794122,071

174,360

311,951

229,3612,029,743

Current

62,036111,261

66,123585,159

Deferred812(8,162)

2,906

25,717

Net income

111,512208,852

160,332

1,418,867

582

1,253

632

5,593

¥ 110,930¥ 207,599¥ 159,700$1,413,274

Years ended March 31

Net sales
Cost of goods sold (Note 9)
Gross profit
Selling, general and administrative
expenses (Note 9)
Operating income

Other income (expenses):

Income before income taxes
Income taxes:

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

U.S. dollars(Note 3)

Yen

Amounts per share of common stock:

Net income
Cash dividends
See notes to the consolidated financial statements.

16¥

566.86¥ 1,061.02

170.06636.62¥

816.78490.07

$

7.23
4.34

FANUC CORPORATION ANNUAL REPORT 2016

Consolidated Statements of Comprehensive Income

Thousands ofMillions of yen

U.S. dollars

2014

2015

2016

2016

¥111,512¥208,852¥160,332$1,418,867

Valuation difference on availablefor-sale securities

2,171

2,370

(3,091)(27,354)

Foreign currency translation adjustment

26,987

22,178(21,866)(193,504)

Remeasurements of defined benefit
plans

—

(2,736)(15,337)(135,726)

Share of other comprehensive
income of affiliates accounted forusing equity method

5,597

4,687

(2,085)(18,451)

Total other comprehensive income

34,75526,499(42,379)(375,035)¥146,267¥235,351¥117,953$1,043,832

145,139

233,467

117,873

1,043,124

1,128

1,884

80

708

Years ended March 31

Net income
Other comprehensive income

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

17

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
Deferred income taxes (Note 11)
Other current assets
Total current assets
Investments (Note 5)
Property, plant and equipment, at cost:
Land
Buildings
Machinery and equipment
Construction in progress
Less accumulated depreciation
Property, plant and equipment, net
Intangible assets:
Goodwill
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 (Note 6)
Other long-term liabilities
Total long-term liabilities
NET ASSETS
Shareholders’ equity:
Common stock:
Authorized - 400,000,000 shares
Issued - 205,942,215 shares
Capital surplus
Retained earnings
Treasury stock, at cost :2015 - 43,863,212 shares2016 - 11,300,237 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
See notes to the consolidated financial statements.

18

Thousands of
U.S. dollars(Note 3)

2015

2016

2016

¥871,236¥686,662$6,076,655

135,127(2,164)
120,000
54,28042,85911,662
26,686
13,6691,273,355
71,396

100,307(1,568)145,000
52,736
39,206
11,124
23,107
16,196
1,072,770
84,190887,673(13,876)
1,283,186
466,690346,956
98,442
204,487
143,327
9,493,540
745,044

125,893
225,144
146,174
8,009(239,295)
265,925

131,800
232,538
154,216
85,917(252,411)
352,060

1,166,372
2,057,858
1,364,743
760,328(2,233,726)
3,115,575

—
950
950
¥1,611,626

—
3,875
3,875
¥1,512,895—
34,292
34,292$13,388,451¥40,572
72,2196,546
53,274
172,611¥24,815
17,1996,676
57,426106,116$219,602
152,203
59,079508,195
939,079

47,534
4,786
52,32068,346
3,523
71,869604,832
31,177
636,009

69,01496,2771,500,635

69,01496,206
1,269,557

610,743
851,381
11,235,018(312,855)—
1,353,071—(90,574)
1,344,203—(801,540)
11,895,602

7,482
29,372(10,748)
26,106
7,518
1,386,695¥1,611,626

4,391
5,974
(26,085)(15,720)
6,427
1,334,910¥1,512,895

38,85952,867(230,841)(139,115)
56,876
11,813,363$13,388,451

FANUC CORPORATION ANNUAL REPORT 2016

Consolidated Statements of Changes in Net Assets

Millions of yen

Commonstock
Balance at March 31, 2013
Cumulative effects of changes
in accounting policies
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change of scope of consolidation
Net change except shareholder’sequity during the year
Balance at March 31, 2014
Cumulative effects of changes
in accounting policies
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change of scope of consolidation
Net change except shareholder’sequity during the year
Balance at March 31, 2015
Cumulative effects of changes
in accounting policies
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change of scope of consolidation
Net change except shareholder’sequity during the year
Balance at March 31, 2016

¥69,014

Capitalsurplus

Valuation
Foreign RemeasureNonTreasury
difference on currency
ments
Total
controllingstock,
available-for- translation of defined
net assetsinterests
at costsale securities adjustment benefit plans(¥311,636)¥2,941(¥28,899)—¥4,869 ¥1,094,129

Retainedearnings¥96,268 ¥1,261,572—¥69,014¥69,014¥96,268 ¥1,261,572 (¥311,636)(31,086)
110,930
(607)
(665)
2
2

¥96,270 ¥1,340,809(¥312,299)¥2,941(¥28,899)

—

2,171

32,037(8,012)¥5,112¥3,138(¥8,012)¥4,869 ¥1,094,129(31,086)
110,930
(607)
(665)
4
—
—
962

¥5,831 ¥1,199,863(¥1,452)¥69,014(¥1,452)¥96,270 ¥1,339,357 (¥312,299)(46,559)
207,599¥5,112¥3,138(¥8,012)¥5,831 ¥1,198,411(46,559)
207,599
—
(559)
10
—
238

2,370

26,234(2,736)

1,687¥7,482¥29,372(¥10,748)

(559)
3

7
238
¥69,014¥96,277 ¥1,500,635

27,158(¥312,855)

27,555¥7,518 ¥1,386,695—¥69,014¥96,277 ¥1,500,635 (¥312,855)(151,385)
159,700
7(78)¥69,014(239,393)¥96,206 ¥1,269,557¥7,482¥29,372(¥10,748)¥7,518 ¥1,386,695(151,385)
159,700—(17,194)
11——(3,091)(23,398)(15,337)(1,091)¥4,391¥5,974(¥26,085)¥6,427 ¥1,334,910(17,194)4
239,471(¥90,574)(42,917)

Thousands of U.S. dollars (Note 3)

Commonstock
Balance at March 31, 2015
Cumulative effects of changes
in accounting policies
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change of scope of consolidation
Net change except shareholder’sequity during the year
Balance at March 31, 2016

$610,743

Valuation
Foreign RemeasureNonTreasury
difference on currency
ments
Total
controllingstock,
available-for- translation of defined
net assetsinterests
at costsale securities adjustment benefit plans$852,009 $13,279,956 ($2,768,628)$66,212$259,929($95,115)$66,531 $12,271,637

CapitalsurplusRetainedearnings—$610,743$852,009 $13,279,956 ($2,768,628)(1,339,690)
1,413,27462(690) (2,118,522)$610,743$851,381 $11,235,018

See notes to the consolidated financial statements.

$66,212$259,929($95,115)$66,531 $12,271,637(1,339,690)
1,413,274—(152,159)
97——(27,354)(207,062)(135,726)(9,655)$38,858$52,867($230,841)$56,876 $11,813,362(152,159)
35
2,119,212($801,540)(379,797)

19

Consolidated Statements of Cash Flows
Thousands of
U.S. dollars(Note 3)

Millions of yen

2014

2015

2016

2016

¥174,360¥311,951¥229,361$2,029,743

18,394
123(28,475)
40,090(3,590)(5,452)(4,418)(9,488)2,159(3,189)180,5145,596(61,262)711
125,559

21,685223—
6,081(3,665)(9,886)(37,331)(17,712)
11,723
1,266
284,335
6,379(68,891)
1,089
222,912

21,106(536)—
21,311(3,909)(11,494)
29,207
1,602(13,749)(21,506)
251,393
10,061(121,281)460
140,633

186,779(4,743)—
188,593(34,593)(101,717)
258,469
14,177(121,672)(190,319)
2,224,717
89,035(1,073,283)
4,071
1,244,540

Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of investment securities
Proceeds from sales of investment securities
Other
Net cash used in investing activities(16,623)
—
541
(386)
(16,468)(21,427)(3,355)1(145)(24,926)(102,008)(7,830)—(2,839)(112,677)(902,726)(69,292)—(25,124)(997,142)

Cash flows from financing activities
Purchases of treasury stock
Dividends paid
Other
Net cash used in financing activities(661)(31,100)(168)(31,929)(549)(46,568)(197)(47,314)(17,253)(151,237)(1,082)(169,572)(152,681)(1,338,381)(9,575)(1,500,637)

17,633

16,425(17,958)(158,920)

94,795
727,751

167,097
823,669(159,574)
991,236(1,412,159)
8,772,000

—

470

—

—

1,123

—

—

—

¥823,669¥991,236¥831,662$7,359,841

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
Allowance for doubtful accounts
Allowance for employees' retirement benefits
Net defined benefit liability
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

Effect of exchange rate changes on cash
and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalentsfrom newly consolidated subsidiaries
Increase in cash and cash equivalents caused by merger
between consolidated and non-consolidated subsidiaries
Cash and cash equivalents at end of year
See notes to the consolidated financial statements.

20

FANUC CORPORATION ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

1. Basis of preparation
The accompanying consolidated financial statements of FANUC CORPORATION (the “Company”) and its consolidated subsidiaries (together, the“Group”) are prepared on the basis of accounting
principles generally accepted in Japan, which are
different in certain respects as to the applicationand disclosure requirements of International Financial Reporting Standards, and have been compiled from the consolidated financial statements
prepared by the Company as required by the Financial Instruments and Exchange Law of Japan.
In addition, the notes to the consolidated financial statements include information which is
not required under accounting principles generally accepted in Japan but is presented herein
as additional information.
In preparing the accompanying consolidated
financial statements, the Company has madecertain reclassifications and rearrangements tothe consolidated financial statements preparedin Japan in order to present them in a format
which is more familiar to readers outside Japan.

2. Summary of significant accounting policies(b) Cash equivalents
The Group considers all highly liquid investmentswith a maturity of three months or less when purchased to be cash equivalents.
(c) Translation of foreign currency accounts
All monetary receivables and payables denominated in foreign currencies are translated into
Japanese yen at the exchange rates in effect atthe balance sheet date. Foreign exchange gainor loss on translation is recognized in the consolidated statements of income.
Assets and liabilities of the consolidated subsidiaries outside Japan are translated into Japanese yen at the applicable year-end rates except
for shareholders’ equity which is translated at thehistorical rates. Differences arising from translation are reflected as “Foreign currency translation
adjustments” in a separate component of net assets. Income and expense accounts are translated at the average rates for the year.
(d) Valuation of securities
Securities other than investments in affiliates areclassified as available-for-sale securities (“Other
securities”) and include securities other than(a) Principles of consolidation

trading securities and securities held to maturity.

The consolidated financial statements include the

Other securities whose fair value is readily deter-

accounts of the Company and, with minor excep-

minable are stated at fair value with the corre-tions, the subsidiaries under its control. Intercom-

sponding unrealized gain or loss, net of taxes,

pany accounts and significant intercompany trans-

recorded directly as a separate component ofactions have been eliminated in consolidation.

net assets. Other securities whose fair value is

The investments in unconsolidated subsidiaries

not readily determinable are stated at moving

and affiliated companies over which the Company

average cost. The cost of other securities sold isexerts substantial influence are, with minor excep-

calculated by the moving average method.

tions, stated at their underlying equity value.
Goodwill is amortized over a period of five
years.

(e) Allowance for doubtful accounts
The allowance for doubtful accounts is provided
at an amount deemed sufficient to cover estimated future losses.

21

(f) Inventories

the method of calculating retirement benefit

Raw materials and purchased components are

obligation and service cost has been revised.

stated primarily at cost determined by the mostBased on this revision, the method of attributing

recent purchase price method.

expected retirement benefits to periods has

Work in progress is stated at actual cost which in-

been changed from straight-line basis to benefit

cludes direct costs for materials and labor and over-formula basis, while the method of determining

head manufacturing costs including depreciation.

discount rates has been changed.

Finished goods are stated principally at cost(the valuation method) by the average method.

Concerning the application of the “AccountingStandards for Retirement Benefits,” based on theprovisional treatment set out in Paragraph 37 of(g) Property, plant and equipment and depreciation

the Standard, the effects of changes in the method

Property, plant and equipment, including signifi-

of calculating retirement benefit obligation andcant renewals and additions, is stated at cost.

service cost is stated as an adjustment to retained

Depreciation is computed principally by theearnings at the beginning of the fiscal year 2014.

declining-balance method at rates based on the

The benefit formula basis is applied as theestimated useful lives of the respective assets

method for attributing the expected retirement

which vary according to general classification,

benefits to periods of service for the calculation

type of construction and use.

of the retirement benefit obligation.

Maintenance and repairs, including minor re-Actuarial gain or loss is amortized in the year

newals and improvements, are charged to in-following the year in which the gain or loss iscome as incurred.

recognized primarily by the straight-line method
over a period (10 years) which is shorter than the(h) Warranty reserves

estimated average remaining years of service of

The Group provides warranty reserves for goods

the eligible employees.

sold under warranty agreements. Estimates for

Past service cost is being amortized as incurred

these warranty reserves are based primarily onby the straight-line method over a period (10 years)

historical experience. In addition, they are calcu-

which is shorter than the estimated average

lated with reference to current information con-remaining years of service of the eligible employees.

cerning specific issues.
(j) Revenue recognition(i) Retirement benefits

In general, sales of products, other than those ex-

Effective from the beginning of the fiscal year 2014,

ported, are recognized in the accounts upon ac-

the Company adopted the “Accounting Standard

ceptance by the customers. Export sales are rec-for Retirement Benefits” (Accounting Standards

ognized as of the respective dates of shipment.

Board of Japan (“ASBJ”) Statement No. 26, issued

22

on May 17, 2012) and “Guidance on Accounting(k) Income taxes

Standard for Retirement Benefits” (ASBJ GuidanceDeferred income taxes are provided by the asset

No. 25, issued on March 26, 2015), with respect

and liability method. Deferred income tax assets

to the provisions described in the main clause ofand liabilities are determined based on the tem-Paragraph 35 of the Standard and in the main

porary differences between the financial state-clause of Paragraph 67 of the Guidance, whereby

ments and the tax bases of the assets and liabili-

FANUC CORPORATION ANNUAL REPORT 2016

ties, using the enacted tax rates which will be ineffect during the years in which the differences
are expected to reverse.
(l) Net income per share
Net income per share is calculated based on the
net income available for distribution to shareholders of common stock and the weighted-average number of shares of common stock outstanding during the year.
(m) Shareholders’ equity
The Companies Act of Japan provides that an
amount equal to 10% of the amount to be disbursed
as distributions of capital surplus (other thancapital reserve) and retained earnings (otherthan legal reserve) be transferred to capital reserve and legal reserve, respectively, until thesum of the capital reserve and the legal reserve
equals 25% of the capital stock account. Such distributions can be made at any time by resolutionof the shareholders or by the Board of Directors
if certain conditions are met.

3. U.S. dollar amounts
The Company and its domestic consolidated subsidiaries maintain their books of account in yen.

4. Financial instruments
Basic policy to manage financial instruments andrelated risk
(1) Group policy for financial instruments
The Company and its consolidated subsidiaries relyon their own resources to finance operations anddo not raise funds from external resources.
In addition, they do not enter into any derivative contracts.
(2) Nature and extent of risks arising from financial instruments
Receivables such as trade notes and trade accounts are exposed to customer credit risk andreceivables denominated in foreign currencies
that arise from overseas operations are exposedto the market risk of fluctuation in foreign currency exchange rates. Marketable securities are negotiable certificate of deposits, which are easily
convertible into cash and within three months,
and thus are exposed to insignificant risk of pricefluctuations. Investment securities, which mainly
consist of stocks in companies with business relationships, are exposed to the risk of market pricefluctuations.
Payables such as trade notes and trade accounts are mostly due within one year.

The U.S. dollar amounts included in the accompanying consolidated financial statements and the(3) Risk management for financial instruments

notes thereto represent the arithmetic results of( i ) Management of credit risk

translating yen into dollars at ¥113 = U.S.$1.00,

The Group monitors due dates and manages

the approximate rate of exchange prevailing onbalances of receivables by customer on the ba-

March 31, 2016.

sis of internal guideline and periodically checks

U.S. dollar amounts are presented solely forcredit risks of key customers taking into ac-

the convenience of the reader and the transla-count their financial position and other factors.

tion is not intended to imply that assets and liabilities which originate in yen have been or could( ii ) Management of market risk

readily be converted, realized or settled in U.S.

The Group regularly monitors the market pricedollars at the above or any other rate.

and the financial condition of the issuer withrespect to its securities and continuously reviews the investment made in each company,
23

taking into account its relationship with the counterparty.
Fair value of financial instruments
The carrying amount and fair value of financial instruments at March 31, 2015 and 2016 are summarized
as follows. Financial instruments whose fair value is not readily determinable are not included in thetable below.
2015

Millions of yen

Carrying
amountFair
value

Cash and bank deposits¥871,236¥871,236—

Notes and accounts receivables

135,127

135,127—

Marketable securities and investment securities
Other securities

136,049

136,049—

Notes and accounts payables(40,572)(40,572)—

Accrued income taxes(72,219)(72,219)—

2016

Variance

Millions of yen

Thousands of U.S. dollars

Carrying
amountFair
value

Cash and bank deposits¥686,662¥686,662—

Notes and accounts receivables

100,307

100,307—887,673887,673—

162,582

162,582—

1,438,779

1,438,779—

Notes and accounts payables(24,815)(24,815)—(219,602)(219,602)—

Accrued income taxes(17,199)(17,199)—(152,204)(152,204)—

Variance

Carrying
amountFair
value$6,076,655 $6,076,655

Variance—

Marketable securities and investment securities
Other securities

Cash and bank deposits, Notes and accounts receivable
The carrying value of cash and bank deposits and notes and accounts receivables approximate fairvalue due to their short maturities.
Marketable securities and investment securities
Marketable securities are negotiable certificates of deposit (NCD), and the carrying value of those
approximate fair value due to their short maturities.
Investment securities are equity securities whose fair value is measured at the quoted market
price at the stock exchange.
See Note 5 for information on the fair value of investment securities by classification.
Notes and accounts payables
The carrying value of notes and accounts payables approximate fair value due to their shortmaturities.

24

FANUC CORPORATION ANNUAL REPORT 2016

The carrying amount of financial instruments whose fair value is not readily determinable at March
31, 2015 and 2016, is as follows:
Thousands of
U.S. dollars

Millions of yen

Unlisted stock(consolidated balance sheet amount)

2015

2016

2016

¥43,704¥48,227$426,788

Redemption schedule after fiscal year-end for monetary assets and securities with maturity dates asof March 31, 2015 and 2016 is as follows:
2015

Millions of yen

Within 1 year

1 - 5 years

5 - 10 years

Due after
10 years

Cash and bank deposits¥871,236———

Notes and accounts receivables

135,127

—

—

—

—

—

—

—

120,000———¥1,126,363

—

—

—

1 - 5 years

5 - 10 years

Due after
10 years¥ 686,662

—

—

—

100,307

—

—

—

—

—

—

—

145,000———¥ 931,969

—

—

—

1 - 5 years

5 - 10 years

Due after
10 years$6,076,655

—

—

—

887,673

—

—

—

—

—

—

—

1,283,186———$8,247,514

—

—

—

Investment securities
Other securities with maturity(1) Government bond(2) Negotiable certificates of deposit
Total
2016

Millions of yen

Within 1 year
Cash and bank deposits
Notes and accounts receivables
Investment securities
Other securities with Maturity(1) Governmental bond(2) Negotiable certificates of deposit
Total
2016

Thousands of U.S. dollars

Within 1 year
Cash and bank deposits
Notes and accounts receivables
Investment securities
Other securities with Maturity(1) Governmental bond(2) Negotiable certificates of deposit
Total

25

5. Other securities and investments
Other securities whose fair value was determinable at March 31, 2015 and 2016 are summarized as follows:
2015

Other securities
with unrealized gain
Other securities
with unrealized loss
Total
2016

Other securities
with unrealized gain
Other securities
with unrealized loss
Total
2016

Book value
Type ofreflected in the
securities
balance sheet
Equity securities¥ 16,049
Subtotal
16,049Negotiablecertificates ofdeposit
120,000
Equity securities
1
Subtotal
120,000¥136,049

Book value
Type ofreflected in the
securities
balance sheet
Equity securities¥ 17,372
Subtotal
17,372
Negotiablecertificates ofdeposit
145,000
Equity securities
210
Subtotal
145,210¥162,582

Other securities
with unrealized loss
Total

26

Acquisition
cost
¥

Net

6,754
6,754

¥9,295
9,295

120,000
1
120,000¥126,754———¥9,295

Millions of yen

Acquisition
cost

Net

¥ 12,343
12,343¥5,0295,029

145,000
288
145,288¥157,631

—
(78)
(78)
¥4,951Thousands of U.S. dollars

Book value
Acquisitionreflected in thecostbalance sheet
Equity securities$ 153,735 $ 109,230
Subtotal
153,735
109,230
Negotiablecertificates ofdeposit
1,283,186
1,283,186
Equity securities
1,858
2,549
Subtotal
1,285,044
1,285,735$1,438,779 $1,394,965
Type ofsecurities

Other securities
with unrealized gain

Millions of yenNet$44,504
44,504
—
(690)
(690)
$43,814

FANUC CORPORATION ANNUAL REPORT 2016

Other securities sold during the years ended March 31, 2015 and 2016 are not presented since they
are insignificant.
Investments at March 31, 2015 and 2016 consisted of the following:

Investments in affiliates
Other securities
Allowance for doubtful accounts
Other
Total

2015

Millions of yen¥43,627
16,127(0)
11,642¥71,396

2016¥46,686
19,123(1)
18,382¥84,190

Thousands of
U.S. dollars

2016$413,150
169,230(9)
162,673$745,04427

6. Retirement benefits
The Company and its domestic consolidated subsidiaries provide employees’ pension fund plans andlump-sum severance payment plans as their defined benefit pension plans.
Certain overseas consolidated subsidiaries also provide defined benefit pension plans and defined contribution pension plans.
Information on the pension plans for the years ended March 31, 2015 and 2016 is as follows;
1. Defined benefit pension plans(1) Changes in projected benefit obligation (PBO)

Thousands of
U.S. dollars

Millions of yen

PBO at beginning of year

2015

¥128,341

2016¥147,299

2016$1,303,531

2,234

—

—

¥130,575¥147,299$1,303,531

Service cost

4,717

4,970

43,982

Interest cost

2,731

2,977

26,345

Actuarial gain or loss

7,749

26,248232,283

Benefit payments(2,498)(3,798)(33,611)

02,519

22,2933,649(2,366)(20,938)

376

786

6,956

¥147,299¥178,635$1,580,841

Cumulative effects of changes in accounting policies
Restated balance

Accrued past service cost
Influence of exchange
Other
PBO at end of year
(2) Changes in the fair value of plan assets

Thousands of
U.S. dollars

Millions of yen

2016

2016

¥87,885¥ 99,765$882,876

Expected return on plan assets

1,598

1,871

16,558Actuarial gain or loss

2,319

5,610

49,646

Employer contribution

6,670

7,288

64,496

Benefit payments(1,419)(2,693)(23,832)

Influence of exchange

2,748(1,505)(13,319)

(36)

(47)

(416)

¥99,765¥110,289$976,009

Fair value of plan assets at beginning of year

Other
Fair value of plan assets at end of year

28

2015

FANUC CORPORATION ANNUAL REPORT 2016

(3) Amount recognized in consolidated balance sheets at end of year
Millions of yen

Thousands of
U.S. dollars

2015¥142,913

2016¥174,726(99,765)(110,289)(976,009)

43,14864,437570,239

PBO in non-savings-type pension plan

4,386

3,909

34,593

Net amount of liability and asset recognized inconsolidated balance sheets

47,534

68,346604,832

Net defined benefit liability

47,534

68,346604,832¥ 47,534¥ 68,346$ 604,832

PBO in savings-type pension plan
Fair value of plan assets

Net amount of liability and asset recognized inconsolidated balance sheets(4) Components of defined benefit costThousands of
U.S. dollars

Millions of yen

Service cost2015

¥4,7172016$1,546,248

2016¥4,9702016$43,982

Interest cost

2,731

2,977

26,345

Expected return on plan assets(1,598)(1,871)(16,558)

Amortization of actuarial gain or loss

832

468

4,142

Amortization of past service cost

(303)

937

8,292

20

15

133

¥6,399¥7,496$66,336

Other
Defined benefit cost(5) Remeasurements of defined benefit plans, before tax
The components (before adjustment of tax effect) are as follows:

Millions of yen

Past service cost2015(¥303)

2016

Thousands of
U.S. dollars

2016(¥2,572)($22,761)

Actuarial gain or loss

(3,762)(18,914)(167,381)

Total(¥4,065)(¥21,486)($190,142)

29

(6) Remeasurements of defined benefit plans
The components (before adjustment of tax effect) are as follows:

Thousands of
U.S. dollars

Millions of yen

Unrecognized past service cost2015(¥444)

2016¥2,1502016$19,027

Unrecognized actuarial gain or loss

16,89735,794

316,761

Total¥16,453¥37,944$335,788

2015

2016

(7) Plan assets
1) Components of plan assets
The components are as follows:
Debt securities

76%

74%

Cash and bank deposits

23%

25%

Other

1%

1%

Total

100%

100%

2) Expected rate of return on plan assets
The expected rate of return on plan assets is determined based on the current and estimatedfuture rates of return on various pension assets.
(8) Actuarial assumptions

2015

2016

Discount rate

1.5 - 4.7%

0.5 - 4.1%

Expected rate of return on plan assets

1.5 - 3.0%

0.5 - 3.0%

Expected rate of salary increase

2.5 - 4.3%

2.3 - 4.1%

2. Defined contribution pension plans
Contribution of consolidated subsidiaries to the plan was ¥546 million for fiscal year 2014 and ¥865
million ($7,655 thousand) for fiscal year 2015.

30

FANUC CORPORATION ANNUAL REPORT 2016

7. Leases
Future rent payments, including interest, under operating leases subsequent to March 31, 2015 and2016 are summarized as follows:2015

Due within one year

Millions of yen¥ 777

2016

Thousands of
U.S. dollars

2016¥1,021$ 9,035

Due after one year

¥1,441¥1,048$ 9,275

Total¥2,218¥2,069$18,310

8. Contingent liabilities
Contingent liabilities with respect to guarantees for employees’ mortgage loans with banks at March
31, 2015 and 2016 amounted to ¥75 million and ¥51 million ($451 thousand), respectively.

9. Research and development expenses
Research and development expenses charged to manufacturing costs and selling, general and administrative expenses for the years ended March 31, 2014, 2015 and 2016 are summarized as follows:2014¥18,372

Millions of yen

2015¥28,1052016¥34,567

Thousands of
U.S. dollars

2016$305,903

10. Other income (expenses)-Other, net
Other income (expenses)-Other, net for the years ended March 31, 2014, 2015 and 2016 consistedof the following:

Dividend income
Loss on sales and disposal of fixed assets
Exchange gain or loss, net
Other, net
Total

2014

¥1,290
(163)
222
1,125
¥2,474

Millions of yen

2015¥1,037
(906)
(43)
1,510
¥1,5982016¥1,372(857)(2,090)1,338(¥ 237)

Thousands of
U.S. dollars

2016$12,142(7,584)(18,496)
11,841($ 2,097)

31

11. Income taxes
Net deferred tax assets at March 31, 2015 and 2016 are summarized as follows:
Millions of yen

Deferred tax assets:
Net defined benefit liability
Unrealized profit on inventories and property, plantand equipment
Accrued expenses
Depreciation and amortization
Accrued enterprise taxes
Investment securities
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Undistributed earnings of affiliated companies
Other
Total deferred tax liabilities
Net deferred tax assets

Thousands of
U.S. dollars

2015

2016

2016

¥15,834¥21,731$192,310

8,713

9,380

83,009

5,404
7,548
4,545
1,032
10,52953,605(1,041)
52,564

5,418
8,222
1,169
986
9,881
56,787(995)
55,792

47,94772,761
10,3458,726
87,442502,540(8,805)
493,735(12,234)(6,624)(18,858)¥33,706(11,729)(5,674)(17,403)¥38,389(103,796)(50,213)(154,009)$339,726

Reconciliation of the statutory income tax rate to the effective income tax rate for the years ended
March 31, 2014, 2015 and 2016 was as follows:
Japanese statutory income tax rate

2014

—

2015

35.0 %

2016

32.3 %Tax exemption—(1.6)%(3.1)%

Dividend income not taxable—(3.2)%(4.4)%Tax rate difference of foreign subsidiaries—(1.5)%(0.5)%

Elimination of dividends received

—

3.5 %

4.7 %

Equity in earnings of affiliates—(1.1)%(1.6)%

Other

—

1.9 %

2.7 %

—

33.0 %

30.1 %

Effective income tax rate

The above information for the year ended March 31 2014 is not presented because, as permitted,
the difference between the statutory income tax rate and the effective income tax rate was less than
5% of the statutory income tax rate.

32

FANUC CORPORATION ANNUAL REPORT 201612. Segment information
FANUC Group focuses on the development, production and sales of CNC systems and related application products based on FANUC’s CNC system technologies as a comprehensive supplier of factory
automation (FA) systems. Ultimately, FANUC CNC systems and the related application products areused in automated production systems.
FANUC Group uses CNCs and servo motors in all of its products. For this reason, the decision is
made, taking into consideration the status of orders, sales and production of all products, in addition
to the status of particular products.
As mentioned above, FANUC Group runs only one business segment based on the decision thatthe entire group makes for investment. Thus, the segment information is not stated herein.

Relevant Information
Information by product and service
Net sales: Unaffiliated customers
FA
ROBOT
ROBOMACHINESERVICE
Total

2014

¥222,643¥146,866¥ 81,467—¥450,976

Millions of yen

2015¥206,611¥156,497¥291,488¥ 75,164¥729,760

2016¥170,211¥188,295¥183,011¥ 81,901¥623,418

Information by region
Net sales: Unaffiliated customers
Japan
America
Europe
Asia
Other
Total

2014

¥105,706¥103,012¥ 71,981¥168,015¥ 2,262¥450,976

Millions of yen

2015¥123,593¥124,057¥ 87,970¥391,577¥ 2,563¥729,760

2016¥119,228¥142,700¥ 94,017¥264,629¥ 2,844¥623,418

Thousands of
U.S. dollars

2016$1,506,292$1,666,327$1,619,566$ 724,788$5,516,973

Thousands of
U.S. dollars

2016$1,055,115$1,262,832$ 832,009$2,341,850$ 25,167$5,516,973

13. Derivative transactions
Not applicable as the Group does not enter into any derivative contracts.

14. Related-party transactions
No related-party transactions were recorded for the years ended March 31, 2015 and 2016.

33

NON-CONSOLIDATED STATEMENTS OF INCOME

Thousands of
U.S. dollars

Millions of yen

2014

2015

2016

2016

¥324,469¥554,448¥457,479$4,048,487

176,679

283,370258,083

2,283,921

147,790271,078

199,396

1,764,566

25,59640,651

41,351365,938

122,194

230,427

158,045

1,398,628

Interest income

275

364

561

4,964

Dividend income

9,932

32,41934,879308,664

Other, net

1,027

1,324

(3,243)(28,699)

11,234

34,10732,197284,929

133,428

264,534

190,242

1,683,557

Current

45,98488,194

46,989415,832

Deferred446(4,987)3,169

28,044

46,43083,20750,158443,876¥86,998¥181,327¥140,084$1,239,681

Years ended March 31

Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):

Income before income taxes
Income taxes:

Net income

Yen

Net income per share:¥444.56¥ 926.74

U.S. dollars¥ 716.46

Note: The U.S. dollar amounts are converted from yen, for convenience only, at the rate of ¥113 = U.S.$1.00.

34

$

6.34

FANUC CORPORATION ANNUAL REPORT 2016

NON-CONSOLIDATED BALANCE SHEETSAs of March 31
ASSETS
Current assets:
Cash and bank deposits
Receivables, trade:
Notes and accounts
Subsidiaries and affiliates
Allowance for doubtful accounts
Marketable securities
Inventories
Deferred tax assets
Other current assets
Total current assets
Investments and other assets:
Subsidiaries and affiliates
Deferred tax assets
Other
Total investments and other assets
Property, plant and equipment, at cost:
Land
Buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Property, plant and equipment, net
Intangible assets
Total assets
LIABILITIES AND NET ASSETS
Current liabilities:
Payables, trade:
Accounts
Subsidiaries and affiliates
Accrued expenses
Accrued income taxes
Warranty reserves
Other current liabilities
Total current liabilities
Long-term liabilities:
Allowance for employees’ retirement benefits
Asset retirement obligations
Total long-term liabilities
NET ASSETS
Shareholders' equity:
Common stock:
Authorized - 400,000,000 shares
Issued - 205,942,215 shares
Capital surplus
Retained earnings
Treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustment:
Net unrealized holding gain on other securities
Total net assets
Total liabilities and net assets

Millions of yen

Thousands of
U.S. dollars

2015

2016

¥ 670,413¥ 487,763$ 4,316,487

41,92027,815(651)
120,000
65,034
13,775
10,312
948,618

36,76322,196(544)
145,000
56,888
10,135
13,564
771,765

325,336
196,425(4,814)
1,283,186
503,434
89,690120,035
6,829,779

107,086
9,744
16,220133,050

108,065
11,485
19,215
138,765

956,328
101,637
170,044
1,228,009

114,250
199,893
131,474
5,997
451,614(216,364)
235,250596¥1,317,514

118,378
206,648
139,077
82,226546,329(229,167)
317,1623,362¥1,231,054

1,047,593
1,828,743
1,230,770
727,664
4,834,770(2,028,027)
2,806,743
29,752$10,894,283

¥

¥

$

28,777906
25,49564,5482,651
3,186
125,563

16,148633
32,076
14,2782,943
2,944
69,022

2016

142,903
5,602
283,858
126,354
26,044
26,053
610,814

28,777
2,811
31,58830,3852,840
33,225

268,894
25,133
294,027

69,014
96,1281,300,778(312,855)
1,153,065

69,014
96,0571,050,085(90,574)
1,124,582

610,743
850,062
9,292,788(801,540)
9,952,053

7,298
1,160,363¥1,317,514

4,225
1,128,807¥1,231,054

37,3899,989,442$10,894,283

35

Global Network

FANUC Global Service Network
Over 250 Offices in 46 Countries and Growing
Stuttgart
Dusseldorf
Shenyang

OdenseLuxembourg

Changchun

Brussels

HarbinStockholm
Helsinki

Coventry
Paris

PragueElgoibar

Wroclaw

Moscow
Kiev

Madrid
Biel
Milan

Sofia
Celje

CheonanZhengzhou

Daegu

Xi’an

Ulsan
Changwon

Wuhan

Istanbul Faridabad
Ahmedabad

Linz
Bologna

Yantai

Nanjing

Budapest Trnava
Barcelona

DalianBeijingSaint-Petersburg Taiyuan

GurgaonPorto

TianjinPune
Coimbatore

Chongqing
ChengduNingboXiamenHa NoiChennaiShanghaiTaipeiTaichung
TainanShenzhen
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Ho Chi Minh

Kuala Lumpur
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Johannesburg

Jakarta

Cikarang

BrisbaneSydneyAdelaide

Melbourne

FANUC CORPORATION (Headquarters)
Oshino-Mura, Yamanashi, Japan

36

FANUC America
Detroit, U.S.A.

FANUC Europe
The Grand Duchy of Luxembourg

BEIJING-FANUC
Beijing, China

FANUC CORPORATION ANNUAL REPORT 2016

DetroitToronto

ChicagoSeattleHeadquarters

Montreal

Minneapolis

BostonSan Francisco
Los Angeles

Cleveland

New JerseyCharlotte

HoustonCincinnati

Lake Forest
AtlantaAguascalientes
QueretaroMonterrey

Manaus

Sao Paulo

Buenos Aires

AucklandSHANGHAI-FANUC Robotics
Shanghai, China

KOREA FANUC
Changwon, Korea

TAIWAN FANUC
Taichung, Taiwan

FANUC INDIA
Bangalore, India

37

Web Site: http://www.fanuc.co.jp/