ロボット ロボマシン

ANNUAL REPORT 2014
Year ended March 31, 2014

CONTENTS
Financial Highlights (Consolidated)･････････････2
A Message from the President･････････････････3
Summary of FANUC Business･･････････････････4
Business Report･･･････････････････････････････5
History of FANUC･････････････････････････････8
Financial Section･･････････････････････････････9
Global Network･････････････････････････････ 30

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

Millions of yen

Years ended March 31

2012

2013

2014

2014

¥ 538,492¥ 498,395¥ 450,976$ 4,378,408

138,819

120,484

110,930

1,076,990¥1,130,625¥1,219,113¥1,343,904$13,047,612

985,322

1,094,129

1,199,863

11,649,155

For the year:
Net sales
Net income
At the year end:
Total assets
Net assets

Yen

U.S. dollars

Per share data:
Net income¥Cash dividends

709.20¥

212.77615.59184.68¥

566.86$

5.50

170.061.65

Note :	The U.S. dollar amounts shown above and elsewhere in this annual report are converted from yen, for convenience only, atthe rate of ¥103 = U.S. $1.00.

Net Sales

Net Income(Millions of yen)

538,492(Millions of yen)

138,819498,395

2

2013(Millions of yen)

1,343,904
1,219,113

120,484

450,9762012

Total Assets

2014

2012

2013

110,930

1,130,625

2014

2012

2013

2014

FANUC CORPORATION ANNUAL REPORT 2014

A Message from the President

The business environment surrounding the FANUC Group was generally
unfavorable in the first half of the yearwith the slow recovery of the Chinese
market and stagnant Japanese andEuropean markets, despite lively activity in some areas such as the U.S.
market, which remained robust. Business gradually picked up in the second
half as markets recovered due to theeffects of the depreciation of the yen
and increase in facility investments inthe manufacturing industry.
Amidst such a climate, the FANUC
Group set up a new scheme in whichbusiness divisions were establishedfor each product line consisting of FA,
ROBOTs and ROBOMACHINEs. The relevant research laboratories and sales
force were placed under the supervision of each division, which is headed
by a general manager who oversees
the entire division. FANUC applies thisback-to-basics approach, whereby research laboratories collaborate closelywith sales staff, focusing on the markets of individual products, to understand customers’ requirements quickly
and correctly and immediately reflect
these in product development. The
new organizational structure contributes to the further promotion of highperformance and intelligence of products while sticking to the basics of highreliability in research and development.
As for manufacturing, FANUC continues to enhance productivity throughrobotization. Through such activities,
maximum efforts are made to improve
competitiveness.

During the year ended March 31, 2014,

divisions of FA, ROBOT and ROBOMA-

FANUC posted consolidated net sales

CHINE, the FANUC Group, together

totaling ¥450,976 million (down 9.5%),

with its overseas affiliated companies,

consolidated ordinary income totaling

will as a whole strive to speedily and¥174,360 million (down 8.8%), and con-accurately identify customer needs, so

solidated net income totaling ¥110,930

as to further enhance product devel-

million (down 7.9%). (Percentages inopment capabilities and facilitate theparentheses are comparisons with thehigher performance and intelligence ofprevious fiscal year)

our highly reliable products. Production efficiency will be pursued as well,

For the year ending March 3 1, 2 0 15,

through robotization in manufacturing.

it is anticipated that the first half will

By continuing such steadfast efforts, weshow good results due to the increase

will increase shares and sales, while re-in short-term demands from the IT in-taining a strong company constitution.

dustry, but in the second half, the special demands are expected to subside,and there is also concern about theslowdown in emerging economies, obscuring the outlook for the entire year.

Thank you for your continued support.
President and Chief Executive Officer

Yoshiharu Inaba

Under the scheme of the three business3

Summary of FANUC Business

FA Division
Main Products

Results for Fiscal 2013

●

CNC

●

Servo Motors

Consolidated sales was ¥222,643 million(up 11.3% from the previous fiscal year),●

LASER Oscillators

accounting for 40.2% of consolidated net
sales.

Refer to page 5 for details

Robot Division
Main Products

Results for Fiscal 2013

Consolidated sales was ¥146,866 million(up 23.3% from the previous fiscal year),● Learning Robots
accounting for 32.6% of consolidated net● Arc Welding Robots
sales.
●

Genkotsu-Robots

Refer to page 6 for details

Robomachine Division

4

Main Products

Results for Fiscal 2013●

ROBODRILL

Consolidated sales was ¥81,467 million●

ROBOSHOT●ROBOCUT●ROBONANO(up 54.5% from the previous fiscal year),accounting for 18.0% of consolidated net
sales.

Refer to page 7 for details

FANUC CORPORATION ANNUAL REPORT 2014

Business Report

FA Business Division
The machine tool industry, the primary market for
FANUC CNC systems, generally remained in a difficult condition domestically and abroad. In thesecond half of the period, however, demand picked
up due to factors including depreciation of theyen, and sales of FANUC CNC systems, which had
continued to face difficult conditions, also showed
moderate signs of recovery.
New developments in FANUC CNC include the “FANUC Series 0i -MODEL F”, with greatly enhanced basic
performance and improved operability and reliability.
This series is the successor of the FANUC Series 0i-MODEL D, which is renowned throughout the world
as a global standard CNC. Furthermore, addition of
new functions and enhancements were made to the
FANUC Series 30i /31i /32i /35i -MODEL B, one of theworld’s highest class performance CNCs, and the Power Motion i -MODEL A, a CNC for general industrial
machinery.
With regards to Servo, new servo motor models, theαi and βi Series, were introduced, which can accommodate axis feeds of all kinds of machine tools withimprovements in feeding smoothness and water
resistance. Furthermore, the “SERVO HRV+ Control”
was newly developed, which realizes high quality
and high precision in machining dies and parts.
The all-in-one servo amplifier, βi SVSP-B, with 3 axes
for servos and 1 axis for spindles, was also developed
to be used with the Series 0i -MODEL F. Improvements
in machining performance, operability rate, and usability made possible system configuration which ishighly cost effective.
FANUC laser sales remained stagnant domesticallyand abroad, but showed signs of recovery in thesecond half of the period.
New developments in laser included the enhancement of control functions, such as enhancements
in power-saving functions of the high-performance,high-functionality, and high-reliability CO2 laser oscillator, “FANUC Laser C series.”

Series0i -MODEL F

αi series SERVOFANUC LASER C4000i -MODEL C

5

ROBOT Business Division
The sales of robots in the domestic automobile industry was negatively affected by the slump in facility
investments in this industry, but increased for generalindustries. Regarding overseas markets, sales remainedin good condition in the U.S. market and clear signs ofrecovery could be seen in the second half of the period in European markets which had been weak. There
was also robust activity in the Chinese market.

In terms of development, the highly reliable, costeffective and intelligent FANUC Robot R-2000i B Series, which received high evaluation worldwide was
upgraded to the R-2000i C Series. Speed and operability have been improved in the new series, which
remains compatible with the preceding series. This
upgrade significantly improves productivity.
The Bin Picking Robot was also enhanced with thedevelopment of a hand that can automatically pickup parts of various shapes and sizes. In addition toits existing function of 3D area sensor, it can also
avoid interfering work nearby when picking up items.
The variety of parts that can be picked up automatically has been expanded.

R-2000i C

Bin Picking Robot

Furthermore, new models with more axes and arm
lengths were developed for the “Genkotsu - Robot

Series”, offering more expandability in work requiring
posture changes or assembly applications. These arecontributing to expansion into the food and pharmaceutical markets.

New developments include a variety of new models
and new features of the multi-purpose mini robot, LR
Mate 200i D which can adapt to diverse work environments. Utilization of these robots are anticipated in awide range of manufacturing sites, and they are currently actively used in the delivery and assembly of automobile parts in unfavorable environments.

6

Genkotsu-RobotFANUC CORPORATION ANNUAL REPORT 2014

ROBOMACHINE Business Division
The sales of ROBODRILL (small machining center)
was stable in the Japanese market and was in goodcondition overseas, yet compared to last year where
there was a momentary rise in demand from a segment in the IT industry, annual sales decreased
sharply. Amidst such circumstances, from the end of
the current fiscal year, there was another substantial
increase in demand from the IT industry, and a temporary and short-term rise in sales became appar-ent.
In terms of development, functionalities were expanded to satisfy overseas safety regulations and awider range of customer needs.
The sales of ROBOSHOT, an electric injection molding machine, increased steadily both in Japan andabroad.
New developments in FANUC ROBOSHOT included
the completion of the “FANUC ROBOSHOTα-Si A series”, a lineup of electric injection molding machines.
The α-S250 i A with ultra-high speed injection specifications, optimal for molding light-guiding plates (ITrelated parts), was also developed as a high-end
machine.

FANUC ROBODRILL α-D21Mi A5

FANUC ROBOSHOT α-S250i A

The sales of the ROBOCUT, a wire-cut electric discharge machine, also increased steadily both in Ja-

pan and abroad.
New developments included the “FANUC ROBOCUT
CCR” which is a high precision and compact turntable for the “FANUC ROBOCUT α-Ci A series.” With
this turntable, machining of a wide range of parts,

FANUC ROBOCUT α-C600i A

such as medical equipment, is made possible.

As to the ROBONANO, an ultra precision nano ma-chine, sales activities were reinforced for expansion
into overseas markets, and progress has been made.
In terms of development, development of functionalities were made to satisfy overseas safety regulations and to enhance operatability.

FANUC ROBONANO α-0i B

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

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 completed development.
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 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 Parallel Link “Genkotsu ROBOTs” started.
The European subsidiaries were reorganized, and FANUC Europe Corporation was established.
The American subsidiaries were reorganized, and FANUC America Corporation was established.
Sales

4,510

(Billions of Yen)

600.0

500.0

400.0

300.0

200.0

100.0

72

8

74

76

78

80

82

84

86

88

90

92

94

96

98

00
02
04
06
08
10
12
14
Consolidated from the year ended March 31,1983

0FANUC CORPORATION ANNUAL REPORT 2014

Financial Section
TEN-YEAR FINANCIAL SUMMARY･･･････････････････････････････ 10
CONSOLIDATED STATEMENTS OF INCOME････････････････････ 12
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME･･･ 13
CONSOLIDATED BALANCE SHEETS･････････････････････････････ 14
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS･･･ 15
CONSOLIDATED STATEMENTS OF CASH FLOWS･･･････････････ 16
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS･････ 17
NON-CONSOLIDATED STATEMENTS OF INCOME･ ･････････････ 28
NON-CONSOLIDATED BALANCE SHEETS･ ･･････････････････････ 29

9Ten-Year Financial Summary

2005

2006

2007

2008

¥ 330,345¥ 381,074¥ 419,560¥ 468,399

120,210140,589

162,930

189,564

Operating income as a percentage of net sales

36.4%

36.9%

38.8%

40.5%

Income before income taxes and minority interests

124,774

150,832

179,412211,875

Net income

75,76490,438

106,756

127,030

Current assets

556,638

637,566

675,944

750,328

Current liabilities

81,671

82,433

100,810104,151

Total assets

799,575

903,410

951,664

1,046,837

Net assets

696,988795,228

820,556

911,395

339.09420.01499.83611.14

—

—

—

—

45.00

96.00

150.00183.35

3,167.70

3,614.17

3,816.91

4,225.39

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 ¥103 = U.S.$1.00.

10

FANUC CORPORATION ANNUAL REPORT 2014

Millions of yen except for per share data

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

2009

2010

2011

2012

2013

2014

2014

¥ 388,271¥ 253,393¥ 446,201¥ 538,492¥ 498,395¥ 450,976$ 4,378,408

134,449

55,024

189,757

221,834

184,821

164,134

1,593,534

34.6%

21.7%

42.5%

41.2%

37.1%

36.4%

36.4%

149,148

55,826

193,495

228,578

191,242

174,360

1,692,816

97,16237,511

120,155

138,819

120,484

110,930

1,076,990

683,719

623,573

753,992

848,669

906,440

1,027,801

9,978,650

55,72556,18889,589115,270

92,97399,449965,525

970,441

891,651

1,013,000

1,130,625

1,219,113

1,343,904

13,047,612

893,282

812,657

894,494

985,322

1,094,129

1,199,863

11,649,155

467.55187.75613.75709.20615.59566.86

5.50

—

—

—

—

—

—

—

140.2756.33

184.13212.77184.68170.06

1.65

4,177.28

4,133.89

4,550.71

5,013.69

5,565.64

6,102.20

59.24

11

Consolidated Statements of Income

Thousands of
U.S. dollars

Millions of yen

2012

2013

2014

2014

¥ 538,492¥ 498,395¥ 450,976$4,378,408

262,120

258,670

227,189

2,205,719

276,372

239,725

223,787

2,172,689

54,53854,90459,653579,155

221,834

184,821

164,134

1,593,534

Interest income

1,912

1,952

2,300

22,330Equity in earnings (loss) of affiliates

3,499

2,932

5,452

52,932Other, net (Note 10)

1,333

1,537

2,474

24,020

6,744

6,421

10,22699,282

228,578

191,242

174,360

1,692,816

Current

92,831

69,13362,036602,291

Deferred(3,695)

1,120

812

7,884

Income before minority interests

139,442

120,989

111,5121,082,641

Minority interests in income of
consolidated subsidiaries

623

505

582

5,651

¥ 138,819¥ 120,484¥ 110,930$1,076,990

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 andminority interests
Income taxes:

Net income

Yen

U.S. dollars

Amount per share of common stock:

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

12¥

709.20212.77¥615.59184.68¥

566.86170.06

$

5.50
1.65

FANUC CORPORATION ANNUAL REPORT 2014

Consolidated Statements of Comprehensive Income

Thousands ofMillions of yen

U.S. dollars

2012

2013

2014

2014

¥139,442¥120,989¥111,512$1,082,641

Valuation difference on availablefor-sale securities

(390)

982

2,171

21,077

Foreign currency translation adjustment(6,504)

24,683

26,987

262,010

42

2,033

5,597

54,340(6,852)

27,69834,755

337,427¥132,590¥148,687¥146,267$1,420,068

Owners of parent

132,074

147,644

145,139

1,409,117

Minority interests

516

1,043

1,128

10,951Years ended March 31

Income before minority interests
Other comprehensive income

Share of other comprehensive
income of affiliates accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:13Consolidated Balance Sheets
Millions of yen

As of March 31

ASSETS
Current assets:
Cash and cash equivalents
Receivables, trade:
Accounts and notes
Allowance for doubtful accounts
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:
Allowance for employees' retirement benefits (Note 6)
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 - 239,508,317 shares
Capital surplus
Retained earnings
Treasury stock, at cost :2013 - 43,796,678 shares2014 - 43,836,033 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
Minority interests
Total net assets
Total liabilities and net assets

See notes to the consolidated financial statements.

14

Thousands of
U.S. dollars

2013

2014

2014

¥727,753¥823,670$7,996,796

81,318(1,628)37,05327,724
7,407
19,035
7,778
906,440
39,10591,698(1,920)43,85735,5598,079
20,706
6,152
1,027,801
49,417890,272(18,641)
425,796345,233
78,437201,02959,7289,978,650
479,777

116,452
214,329
125,631
21,889(213,480)
264,821

117,543
224,764
140,998
6,395(227,227)
262,473

1,141,194
2,182,175
1,368,913
62,087(2,206,087)
2,548,282

8,286
461
8,747
¥1,219,113

3,689
524
4,213
¥1,343,904

35,816
5,087
40,903$13,047,612¥22,044
30,637
4,937
35,35592,973¥26,192
30,787
5,409
37,061
99,449$254,291
298,90352,515359,816
965,525

28,172—
3,839
32,011—40,456
4,136
44,592—392,777
40,155432,932

69,01496,268
1,261,572

69,01496,2701,340,809

670,039
934,660
13,017,563(311,636)—
1,115,218—(312,299)
1,193,794—(3,032,030)
11,590,232

2,941(28,899)—(25,958)
4,869
1,094,129¥1,219,113

5,112
3,138
(8,012)238
5,831
1,199,863¥1,343,904

49,63130,466(77,786)
2,311
56,612
11,649,156$13,047,612

FANUC CORPORATION ANNUAL REPORT 2014

Consolidated Statements of Changes in Net Assets

Millions of yen

Commonstock
Balance at March 31, 2011

¥69,014

CapitalsurplusRetainedearnings¥96,261 ¥1,082,997

Valuation
Foreign RemeasureTreasury
Minority
Total
difference on currency
ments
stock,
available-for- translation of defined interests net assets
at costsale securities adjustment benefit plans(¥311,094)¥2,349(¥48,723)—¥3,690¥894,494

Cash dividends(41,566)(41,566)

Net income

138,819

138,819

Purchase of treasury stock(304)

Disposal of treasury stock

4

Change of scope of consolidation

4

8

306

306

Net change excluding shareholder'sequity during the year
Balance at March 31, 2012

(304)

¥69,014¥96,265 ¥1,180,556(¥311,394)(390)(6,354)¥1,959(¥55,077)—

309(6,435)¥3,999¥985,322

Cash dividends(39,468)(39,468)

Net income

120,484

120,484

Purchase of treasury stock
Disposal of treasury stock

3

(246)

(246)

4

7

Net change excluding shareholder'sequity during the year
Balance at March 31, 2013

¥69,014¥96,268 ¥1,261,572(¥311,636)

982

26,178¥2,941(¥28,899)

870—

28,030¥4,869 ¥1,094,129

Cash dividends(31,086)(31,086)

Net income

110,930

110,930

Change caused by merger(607)

Purchase of treasury stock
Disposal of treasury stock

2

(607)
(665)

(665)

2

4

Net change excluding shareholder'sequity during the year
Balance at March 31, 2014

¥69,014¥96,270 ¥1,340,809(¥312,299)

2,171

32,037(8,012)¥5,112¥3,138(¥8,012)962

27,158¥5,831 ¥1,199,863

Thousands of U.S. dollars

Balance at March 31, 2013

Retainedearnings

Valuation
Foreign RemeasureTreasury
Minority
Total
difference on currency
ments
stock,
available-for- translation of defined interests net assets
at costsale securities adjustment benefit plans

Commonstock

Capitalsurplus$670,039$934,641 $12,248,272 ($3,025,592)$28,553($280,573)—$47,272 $10,622,612

Cash dividends(301,806)(301,806)

Net income

1,076,990

1,076,990(5,893)(5,893)

Change caused by merger
Purchase of treasury stock
Disposal of treasury stock

19(6,456)(6,456)19

38

Net change excluding shareholder'sequity during the year
Balance at March 31, 2014

$670,039$934,660 $13,017,563 ($3,032,030)

21,078311,039(77,786)$49,631$30,466($77,786)

9,340

263,671$56,612 $11,649,156

See notes to the consolidated financial statements.

15

Consolidated Statements of Cash Flows
Thousands of
U.S. dollars

Millions of yen

Years ended March 31

Cash flows from operating activities
Income before income taxes andminority interests
Adjustments to reconcile income before
income taxes and minority interests to net
cash provided by operating activities:
Depreciation and amortization
Increase (decrease) in allowancefor doubtful accounts(Decrease) increase in allowancefor employees' retirement benefits
Increase (decrease) in 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
Cash flows from investing activities
Purchases of property, plant andequipment
Proceeds from sales of investment securities
Other
Net cash used in investing activities
Cash flows from financing activities
Purchases of treasury stock
Dividends paid
Other
Net cash used in financing 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
Cash and cash equivalents resulting fromconsolidation of subsidiaries
Increase (decrease) 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.

16

2012

2013

2014

2014

¥228,578¥191,242¥174,360$1,692,816

15,466

17,867

18,394

178,582

30

(865)

123

1,194

1,433

1,401

(28,475)(276,456)——

40,090389,223(2,563)(3,499)(19,282)(16,521)
9,501
10,139223,282
4,063(84,218)
1,096
144,223(2,767)(2,932)20,004
19,948(10,021)8,751
242,628
4,495(88,735)
460
158,848(3,590)(5,452)(4,418)(9,488)2,159(3,189)180,5145,596(61,262)711
125,559(34,854)(52,932)(42,893)(92,117)
20,961(30,961)
1,752,563
54,330(594,777)
6,903
1,219,019(43,959)(44,445)(16,623)(161,388)

2,277
(415)
(42,097)5
476(43,964)541(386)(16,468)

5,252(3,747)(159,883)(295)(41,551)(206)(42,052)(240)(39,426)(172)(39,838)(661)(31,100)(168)(31,929)(6,417)(301,942)(1,631)(309,990)(3,931)

15,636

17,633

171,194

56,143
583,486

90,682
637,069

94,795
727,751

920,340
7,065,543(2,560)

—

—

—

—

—

1,123

10,903¥637,069¥727,751¥823,669$7,996,786

FANUC CORPORATION ANNUAL REPORT 2014

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 inaccordance to accounting principles generally acceptedin Japan, which are different in certain respects as to theapplication and 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 Act of Japan.
In addition, the notes to the consolidated financial
statements include information which is not required
under accounting principles generally accepted in Japanbut is presented herein as additional information.
In preparing the consolidated financial statements,
the Company has made certain reclassifications and rearrangements to the consolidated financial statements
prepared in Japan in order to present them in a format
which is more familiar to readers outside Japan.

2. Summary of significant accounting policies

with a maturity of three months or less at thetime of purchase as 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 as of thebalance sheet date. Foreign exchange gain orloss upon 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 exchange rates as of theirrespective balance sheet dates except for shareholders' equity which is translated at historicalrates. Differences arising from translation arereflected as "foreign currency translation adjustments" as a part of net assets. Income andexpense accounts are translated at the average
rates for the year.
(d) Valuation of securities
Securities other than investments in affiliates are(a) Principles of consolidation

classified as available-for-sale securities ("Other

The consolidated financial statements include

securities") and include securities other than

the accounts of the Company and its subsidiaries

trading securities and securities held to maturity.

except for those that are low in significance. Sig-

Other securities whose fair value is readily de-nificant intercompany accounts transactions haveterminable are stated at fair value with the cor-been eliminated in consolidation.

responding unrealized gain or loss, net of taxes,

The investments in unconsolidated subsidiaries

recorded directly as a separate component ofand affiliated companies over which the Company

net assets. Other securities whose fair value isexerts substantial influence are, except for those

not readily determinable are stated at movingthat are low in significance, accounted for under

average cost. The cost of other securities sold isthe equity method.

calculated by the moving average method.

Goodwill is amortized over a period of five
years.

(e) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at(b) Cash equivalents

an amount deemed sufficient to cover estimated

The Group considers all highly liquid investments

future losses.
17

(f) Inventories

fiscal year (except for provisions described in

Raw materials and purchased components are

Section 35 of the Standard and in Section 67 of thestated primarily at cost determined by the most

Guidance.), whereby the method has been

recent purchase price method.

changed to where retirement benefit obligation,Work in progress is stated at actual cost

net of plan assets, is recorded as net defined

which includes direct costs for materials andbenefit liability, and unrecognized actuarial gain

labor as well as overhead manufacturing costs

or loss and unrecognized past service cost are re-including depreciation.

corded as net defined benefit liability.

Finished goods are stated principally at cost

Concerning the application of the "Accounting(method of reducing book value due to decline

Standards for Retirement Benefits", based on thein profitability) by the average method.

provisional treatment set out in Section 37 of theStandard, the effects of such changes in the current(g) Property, plant and equipment and depreciation

fiscal year have been reflected in remeasurements

Property, plant and equipment, including signifi-

of defined benefit plans.

cant renewals and additions, is stated at cost.

The straight-line basis is applied as the meth-

Depreciation is computed principally by theod for attributing the expected retirement ben-declining-balance method at rates based on theefits to periods up to the current fiscal year for

estimated useful lives of the respective assets

the caluculation of retirement benefit obligation.

which vary according to general classification,

Actuarial gain or loss is amortized in the year

type of construction, and use.

following the year in which the gain or loss is

Maintenance and repairs, including minor

recognized primarily by the straight-line method

renewals and improvements, are charged to in-over a period (10-11 years) within the estimatedcome as incurred.

average remaining years of service of the eligible
employees.

(h) Warranty reserves

Past service cost is being amortized as incurred

The Group provides warranty reserves for goods

by the straight-line method over a period (10-11

sold under warranty agreements. Estimates foryears) within the estimated average remaining

these warranty reserves are based primarily on

years of service of the eligible employees.

historical performance. In addition, they are calculated with reference to current information(j) Revenue recognition

concerning specific issues.

In general, sales of products, other than thoseexported, are recognized in the accounts upon(i) Retirement benefits

acceptance by customers. Export sales are rec-

The Company adopted the "Accounting Standard

ognized as of the date of shipment.

for Retirement Benefits" (Accounting Standards

18

Board of Japan ("ASBJ") Statement No. 2 6, issued(k) Income taxes

on May 17, 2012; hereinafter the "Standard") and

Deferred income taxes are recognized by the"Guidance on Accounting Standard for Retirement

asset and liability method, whereby deferred

Benefits" (ASBJ Guidance No. 2 5, issued on May

income tax assets and liabilities are determined

17, 2012; hereinafter the "Guidance") from the current

based on the temporary differences between

FANUC CORPORATION ANNUAL REPORT 2014

the financial statements and the tax bases of theassets and liabilities, using the enacted tax rates
which will be in effect during the years in which
the differences are expected to be eliminated.
(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 weightedaverage number of shares of common stock outstanding during the year.
(m) Shareholders' equity
As prescribed by the Companies Act of Japan, aminimum of 1 0% from the amount expended as
appropriation of surplus shall be allotted to legal
retained earnings until the sum of legal capitalsurplus and legal retained earnings is equivalent
to 25% of capital stock. In addition, the part of thesum of legal capital surplus and legal retained earnings that exceeds 25% of capital stock can be distributed as dividends upon resolution at ashareholder's meeting.

3. U.S. dollar amounts

4. Financial instruments
Basic policy to manage financial instruments andrelated risk
(1) Group policy for financial instruments
The Company and its consolidated subsidiaries
rely on their own resources to finance operations
and do not raise funds from external sources. 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 in foreign currencies that arises fromoverseas operations are exposed to the market
risk of fluctuation in foreign currency exchange
rates. Investment securities, which mainly consistof stocks in business partners, are exposed to
the risk of market price fluctuations.
Payables such as trade notes and trade accounts
are mostly due within one year.
(3) Risk management for financial instruments( i ) Management of credit risk

The Company and its domestic consolidated sub-

The Group monitors due dates and manages

sidiaries maintain their books of account in yen. Thebalances of receivables by customer in accor-

U.S. dollar amounts included in the consolidated fi-

dance to internal guidelines and periodicallynancial statements and the notes thereto represent

checks credit risks of key customers taking into

the arithmetic results of translating yen into dollars

account their financial position and other fac-at ¥103 = U.S.$1.00, the rate of exchange prevailingtors.

on March 31, 2014.
U.S. dollar amounts are presented solely for( ii ) Management of market risk

the convenience of the reader and the transla-

The Group regularly monitors the market pricetion is not intended to imply that assets and li-

and the financial condition of the issuer withabilities which denominated in yen have been or

respect to its securities and continuously re-could readily be converted, realized or settled inviews the investments made in each company,

U.S. dollars at the above or any other rate.

taking into account its relationship with thecounterparty.
19

5. Other securities and investments
Other securities whose fair value was determinable at March 31, 2013 and 2014 are summarized as follows:
2013

Millions of yen

Book value
reflected in thebalance sheet

Acquisition
cost

Equity securities¥6,459¥3,280¥3,179Subtotal

6,459

3,280

3,179

Type ofsecurities
Other securities
with unrealized gain

Net

Other securities

Equity securities

18

19

(1)

with unrealized loss

Bonds

82

82

—

100

101

(1)

¥6,559¥3,381¥3,178Subtotal
Total
2014

Millions of yen

Book value
reflected in thebalance sheet

Acquisition
cost

Equity securities¥9,414¥3,299¥6,115

SubtotalType ofsecurities
Other securities

Net

9,414

3,299

6,115

Other securities

Equity securities

—

—

—

with unrealized loss

Bonds

1

1

—

1

1

—

¥9,415¥3,300¥6,115

with unrealized gain

Subtotal
Total
2014

Thousands of U.S. dollars

Book value
reflected in thebalance sheet

Acquisition
cost

Net

Equity securities$91,398$32,029$59,369

Subtotal

91,39832,02959,369Type ofsecurities
Other securities
with unrealized gain
Other securities

Equity securities

—

—

—

with unrealized loss

Bonds

10

10

—

10

10

—

$91,408$32,039$59,369

Subtotal
Total

Other securities sold during the years ended March 31, 2013 and 2014 are not presented since they
are insignificant.
Investments at March 31, 2013 and 2014 consisted of the following:

20

Investments in affiliates
Other securities
Allowance for doubtful accounts
Other
Total

2013

Millions of yen¥25,144
6,635
(1)
7,327
¥39,1052014¥32,252
9,491
(1)
7,675
¥49,417

Thousands of
U.S. dollars

2014$313,126
92,146(10)
74,515$479,777

FANUC CORPORATION ANNUAL REPORT 2014

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.
Information on the defined benefit pension plans for the year ended March 31,2013 is as follows;
Millions of yen

Projected benefit obligation

2013(¥111,128)

Fair value of plan assets

83,921

Projected benefit obligation in excess of plan assets(27,207)

Unrecognized net actuarial loss

1,922

Unrecognized past service cost

(1,064)

Subtotal
Prepaid pension cost
Allowance for employees' retirement benefits(¥26,349)
1,823(¥28,172)

Pension cost related to the plans for the year ended March 31, 2013 are as follows:
Millions of yen

Service cost2013

¥3,390Interest cost

2,560

Expected return on plan assets(1,361)

Amortization of net actuarial loss

967

Amortization of past service cost(309)

Net pension cost

¥5,247

The Group's assumptions for the year ended March 31, 2013 which were used in determining pension costs and allowance for employees' retirement benefits shown above, are as follows:
2013

Discount rate

2.0%-4.81%

Expected rate of return on plan assets

1.5%-3.0%

Method of allocation of retirement benefit cost

Flat allocation

Period for amortization of past service cost

10-12 years

Period for amortization of actuarial loss

10-12 years

Notes have been changed from the year ended March 31, 2014 due to the adopting of "AccountingStandard for Retirement Benefits" and "Guidance on Accounting Standard for Retirement Benefits" revised on May 17, 2012.

21

The Company and its domestic consolidated subsidiaries provide employees' pension fund plans
and lump-sum severance payment plans as their defined benefit pension plans.
Certain overseas consolidated subsidiaries also provide defined benefit pension plans and/or defined contribution pension plans.
Information on the pension plans for the year ended March 31, 2014 is as follows;
1. Defined Benefit Pension Plans(1) Changes in the projected benefit obligation (PBO)
Millions of yen

PBO at beginning of year
Service cost
Interest cost
Actuarial gain or loss
Benefit payments
Influence of exchange
Other
PBO at end of year2014

$1,078,913
36,02926,75785,524(2,141)2,524
1,554¥128,341(20,786)
24,50515,087$1,246,029

Millions of yen

22

2014

¥111,128
3,711
2,756
8,809

(2) Changes in the fair value of plan assets

Fair value of plan assets at beginning of year
Expected return on plan assets
Actuarial gain or loss
Employer contribution
Benefit payments
Influence of exchange
Other
Fair value of plan assets at end of year

Thousands of
U.S. dollars

2014¥83,921
1,501(1,294)
3,618(1,247)1,410(24)¥87,885

Thousands of
U.S. dollars

2014$814,767
14,573(12,563)
35,126(12,107)
13,689(233)$853,252

FANUC CORPORATION ANNUAL REPORT 2014

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

2014

PBO in savings-type pension plan
Fair value of plan assets
PBO in non-savings-type pension plan
Net amount of liability and asset recognized in consolidatedbalance sheets
Net defined benefit liability
Net amount of liability and asset recognized in consolidatedbalance sheets2014¥124,484(87,885)
36,5993,857$1,208,582(853,252)
355,330
37,44740,456

392,777

40,456

392,777¥ 40,456$ 392,777(4) Components of pension cost
Millions of yen

2014¥ 3,711

Service costThousands of
U.S. dollars

Thousands of
U.S. dollars

2014$ 36,029

Interest cost

2,756

26,757

Expected return on plan assets(1,501)(14,573)

Amortization of actuarial gain or loss

(173)

(1,679)Amortization of past service cost

(302)

(2,932)

13

126¥ 4,504$ 43,728

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

Millions of yen

Unrecognized actuarial gain or loss
Unrecognized past service cost
Total

2014

¥ (749)

Thousands of
U.S. dollars

2014$ (7,272)

13,370129,806¥12,621$122,534(6) Plan assets
1) Components of plan assets
The components are as follows:
Debt securities

2014

80%

Cash and deposits

19%

Other

1%

Total

100%

23

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 plan assets.
(7) Actuarial assumptions

2014

Discount rate

1.5 - 4.4%

Expected rate of return on plan assets

1.5 - 3.0%

2. Defined Contribution Pension Plans
Contributions of consolidated subsidiaries to the plan are ¥523 million ($5,078 thousand).

7. Leases
Future rent payments, including interest, under operating leases subsequent to March 31, 2013 and2014 are summarized as follows:2013

Due within one year

Millions of yen

¥270

2014

Thousands of
U.S. dollars

2014¥ 577$ 5,602

Due after one year¥688

¥ 849$ 8,243

Total

¥958

¥1,426$13,845

8. Contingent liabilities
Contingent liabilities with respect to guarantees for employees' mortgage loans with banks at March
31, 2013 and 2014 amounted to 132 million and 104 million ($1,010 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, 2012, 2013 and 2014 are summarized as follows:2012¥20,478

24

Millions of yen

2013¥20,1482014¥18,372

Thousands of
U.S. dollars

2014$178,369

FANUC CORPORATION ANNUAL REPORT 2014

10. Other income (expenses)-Other, net
Other, net for the years ended March 31, 2012, 2013 and 2014 consisted of the following:

Dividend income
Loss on sales and disposal of fixed assets
Exchange gain or loss, net
Profit on sales of investment securities
Loss on devaluation of securities
Miscellaneous, net
Total

2012

¥ 651
(185)
(600)
—
—
1,467
¥1,333

Millions of yen

2013¥ 815
(281)
34
—
—
969
¥1,5372014¥1,290
(163)
222
—
—
1,125
¥2,474

Thousands of
U.S. dollars

2014$12,524(1,582)
2,156——
10,922$24,020

11. Income taxes
Net deferred tax assets at March 31, 2013 and 2014 are summarized as follows:
Millions of yen

Deferred tax assets:
Allowance for employees' retirement benefits
Net defined benefit liability
Intercompany profit on inventories and property,
plant and equipment
Depreciation
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 (liabilities)

Thousands of
U.S. dollars

2013

2014

2014

¥ 9,234——¥13,432—$ 130,408

6,514

7,554

73,340

5,553
1,895
1,146
12,03736,379(1,157)35,222

6,070
2,210
1,146
12,25742,669(1,157)41,51258,932
21,456
11,126
119,000
414,262(11,233)
403,029(10,270)(2,836)(13,106)¥ 22,116(13,072)(3,732)(16,804)¥24,708(126,913)(36,233)(163,146)$ 239,883

25

12. 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 CNC’s and servo motors in all of its products. For this reason, the decision is
made, taking the status of orders, sales and production of all products, in addition to the status ofparticular products.
As mentioned above, FANUC Group runs only one business segment based on decision by the entire
group for investment. Thus, the segment information is not stated herein.
(Additional Information)
From the current fiscal year, “Accounting Standard for Disclosures about Segments of an Enterpriseand Related Information” (ASBJ Statement No. 17, effective March 27, 2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Guidance No. 20, effective March 21, 2008) have been applied.

Relevant Information
Information by product and service
Net sales: External customers
FA
ROBOT
ROBOMACHINE
Total

2012

¥267,585¥114,785¥156,122¥538,492

Millions of yen

2013¥200,118¥119,149¥179,128¥498,395

2014¥222,643¥146,866¥ 81,467¥450,976

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

26

2012

¥126,780¥ 75,398¥ 65,771¥268,124¥ 2,419¥538,492

Millions of yen

2013¥107,213¥ 84,334¥ 55,051¥249,783¥ 2,014¥498,395

2014¥105,706¥103,012¥ 71,981¥168,015¥ 2,262¥450,976

Thousands of
U.S. dollars

2014$2,161,583$1,425,883$ 790,942$4,378,408

Thousands of
U.S. dollars

2014$1,026,272$1,000,116$ 698,845$1,631,214$ 21,961$4,378,408

FANUC CORPORATION ANNUAL REPORT 2014

13. Derivatives
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, 2013 and 2014.

27

NON-CONSOLIDATED STATEMENTS OF INCOME

Thousands of
U.S. dollars

Millions of yen

2012

2013

2014

2014

¥464,108¥407,289¥324,469$3,150,184

233,739

216,747

176,679

1,715,330

230,369

190,542

147,790

1,434,854

29,862

27,921

25,596

248,505

200,507

162,621122,194

1,186,349

Interest income

166

212

275

2,670

Dividend income

22,646

8,597

9,932

96,427

Other, net

1,324

972

1,027

9,971

24,136

9,781

11,234

109,068

224,643

172,402

133,428

1,295,417

Current

83,28460,881

45,984446,447

Deferred

(662)

339

446

4,330

82,622

61,22046,430450,777¥142,021¥111,182¥ 86,998$ 844,640

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 of common stock:¥ 725.57¥ 568.06

U.S. dollars¥ 444.56

Note: The U.S. dollar amounts are converted from yen, for convenience only, at the rate of ¥103 = U.S.$1.00.

28

$

4.32

FANUC CORPORATION ANNUAL REPORT 2014

NON-CONSOLIDATED BALANCE SHEETSAs of March 31
ASSETS
Current assets:
Cash and cash equivalents
Receivables, trade:
Accounts and notes
Subsidiaries and affiliates
Allowance for doubtful accounts
Inventories
Deferred income taxes
Other current assets
Total current assets
Investments and long-term loans:
Subsidiaries and affiliates
Deferred income taxes
Other
Total investments and long-term loans
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 - 239,508,317 shares
Capital surplus
Retained earnings
Treasury stock, at cost
Total shareholders' equity
Valuation and translation adjustments:
Net unrealized holding gain on other securities
Total net assets
Total liabilities and net assets

Millions of yen

Thousands of
U.S. dollars

2013

2014

¥ 587,931¥ 634,111$ 6,156,417

38,285
15,863(539)
39,6288,692
5,006
694,866

39,68818,888(545)
50,6998,336
3,681
754,858

385,320
183,379(5,291)
492,223
80,93235,738
7,328,718

108,539
11,265
6,663
126,467

107,337
10,251
9,586
127,174

1,042,107
99,524
93,0681,234,699

106,836
194,148
113,439
21,736436,159(195,690)
240,469268¥1,062,070

106,945
202,592
127,476
6,153
443,166(206,938)
236,228263¥1,118,523

1,038,301
1,966,913
1,237,631
59,7384,302,583(2,009,107)
2,293,476
2,554$10,859,447

¥

¥

$

16,684578
16,30528,061
1,970
2,284
65,882

19,684823
13,27926,8632,012
2,374
65,035

2014

191,107
7,990
128,922
260,806
19,53423,049631,408

25,403
2,796
28,19925,4102,825
28,235

246,699
27,427274,126

69,014
96,1191,111,551(311,636)
965,048

69,014
96,122
1,167,462(312,299)
1,020,299

670,039933,223
11,334,583(3,032,029)
9,905,816

2,941
967,989¥1,062,070

4,954
1,025,253¥1,118,523

48,097
9,953,913$10,859,447

Note: The U.S. dollar amounts are converted from yen, for convenience only, at the rate of ￥103 = U.S.$1.00.

29

Global Network

FANUC Global Service Network
Over 230 Offices in 45 Countries and Growing

Stuttgart
Dusseidorf

OdensoTuusulaLuxembourg

Oslo

LondonStockholm

Coventry

Moscow

Paris

Praha

Elgoibar

Tmava

Beijing

Budapost

Vigo
Porto

Wrociaw

Saint-Petersburg

Sofia
Bologna

Barcelona
Lyon

Changwon

Wohan

Istanbul

Milan
Biel

GurgaonChengduRajkotHanoi

MumbaiPune
Coimbatore

ChennaiShanghai

BangkokBangalore

Taichung
Shen zhen
ManilaHo Chi Minh

Kuata Lumpur
Singapore
Johannesburg

Jakarta

BrisbaneSydneyDurbanAdelaide
Port Elizabeth

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

30

FANUC America
Detroit, U.S.A.

Melbourne

FANUC Europe
The Grand Duchy of Luxembourg

BEIJING-FANUC
Beijing, China

FANUC CORPORATION ANNUAL REPORT 2014

Detroit
ChicagoTorontoMinneapolis

Bostonロボット ロボマシン

Headquarters

San Francisco
Los Angeles

Cleveland
DallasNew Jersey

Chariotte
Cincinnati
Atlanta

Mexico City

Manaus

Sao Paulo

Buenos Aires

AucklandSHANGHAI-FANUC Robotics
Shanghai, China

KOREA FANUC
Changwon, Korea

TAIWAN FANUC FA
Taichung, Taiwan

FANUC INDIA
Bangalore, India

31

FANUC CORPORATIONWeb Site: http://www.fanuc.co.jp/