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

Supplementary Materials to the Notice of Convocation of
The 54th Ordinary General Meeting of Shareholders

1. Matters Related to Business Report
2. Consolidated Statement of Changes in Net Assets
3. Notes to the Consolidated Financial Statements
4. Non-Consolidated Statement of Changes in Net Assets
5. Notes to the Non-Consolidated Financial Statements

FANUC CORPORATION

11. Matters Related to Business Report(1) Directors of the Company
Overview of the limitation of liability agreements
The Company has entered into agreements with Outside Directors, Kazuo Tsukuda, Naoko Yamazaki,
Hiroto Uozumi, Yasuo Imai, Hidetoshi Yokoi and Mieko Tomita, limiting their liability for damages as
defined under Article 423, Paragraph 1 of the Companies Act, in accordance with Article 427, Paragraph
1 of the Companies Act. The amount of the limit of liabilities for damages under such agreement shallbe the amount of the minimum limit stipulated by laws and regulations.
(2) Accounting Auditor
1) Name of Accounting Auditor

Ernst & Young ShinNihon LLC

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

45 million yen
45 million yen

Notes 1. The amount of auditing fees is not distinguished under the auditing agreement concluded
between the Company and the Accounting Auditor with respect to audits under theCompanies Act and the audits under the Financial Instruments and Exchange Act.
Therefore, the amount in (a) represents the sum of the fees for such audits.
2. The overseas subsidiaries of the Company are subject to audits by audit firms other thanthe Accounting Auditor of the Company.
3. The reason for the approval by the Audit and Supervisory Committee of theamount of fees, etc. paid to the Accounting Auditor
In addition to obtaining the necessary documents and receiving reports from the
Directors, the related internal divisions and the Accounting Auditor, the Audit andSupervisory Committee examined the audit plans and the status of audit execution of
the previous fiscal year as well as the basis for calculating the estimated fees, etc. forthe fiscal year under review based on the “Practical Guidelines on Cooperation withAccounting Auditors” released by the Japan Audit & Supervisory Board Members
Association, and has determined that the fee levels are reasonable and has consented
to the amount of fees, etc.
3) Policy of determining dismissal or non-reappointment of the Accounting Auditor
The Company shall propose non-reappointment of the Accounting Auditor to the general meeting ofshareholders by resolution of the Audit and Supervisory Committee, as a general rule, in cases where it
is deemed difficult for the Accounting Auditor to execute audits in an appropriate manner, in addition todismissal of the Accounting Auditor by the Audit and Supervisory Committee based on the provisionsof Article 340 of the Companies Act.
(3) System to ensure the appropriateness of business activities (internal control system)
An overview of the resolution by the Board of Directors of the system to ensure the appropriateness ofbusiness activities is as follows.
1) System to ensure that duties of the Company’s Directors and employees are performed in compliancewith laws and regulations and the Company’s Articles of Incorporation :Education on laws and regulations and the Articles of Incorporation and other internal rules shall be
provided to the Directors and employees and other measures shall be taken to ensure that duties of
Directors and employees are performed in compliance with laws and regulations and the Articles ofIncorporation.

22) Rules and other systems concerning management of the Company’s exposure to the risk of loss :The Company has established a Risk Management Committee and has created risk management policies
in order to handle potential risks which may obstruct the continuation of the Company’s business,increase in the Company’s value, or sustainable development of the Company’s activities, and shallengage in appropriate risk management under the supervision of the Board of Directors. Furthermore, theInternal Audit Department, which directly reports to the President of the Company, shall conduct internal
audits regarding the status of risk management.
3) System to ensure that duties of the Company’s Directors are performed efficiently :The Managing Officer System shall be introduced to ensure that duties of the Directors will be
performed efficiently according to the internal rules providing for the organizational structure,division of duties, official authority, etc.
4) System for the storage and management of information concerning the performance of duties of theCompany’s Directors :Information concerning the performance of duties of the Directors shall be recorded and stored inaccordance with the internal rules. Directors shall be able to access such information at any time.
5) System to ensure the appropriateness of operations in the corporate group consisting of the Company
and its subsidiaries :The Company will strive to enhance corporate governance in our corporate group by thoroughly
disseminating the group’s code of conduct applied to our corporate group. Regarding important matterspertaining to the management of the Company’s subsidiaries, prior approval shall be requested or areport shall be submitted to the Company, according to the “FANUC Group Company Regulations.”
Each subsidiary shall individually endeavor to implement proper and efficient management, but as theparent company, the Company shall provide guidance and supervision through relevant departments
including the Internal Audit Department, in order to enforce the effectiveness of the corporate group’s
risk management and compliance, as deemed necessary.
6) Matters concerning employees who are to assist the Audit and Supervisory Committee in its duties andmatters concerning the effectiveness of instructions to such employees :(i) The Secretariat of the Audit and Supervisory Committee shall be established to assist in the dutiesof the Committee.
(ii) The employees belonging to the Secretariat of the Audit and Supervisory Committee shall assist in
the duties of the Audit and Supervisory Committee according to the instructions of the Committee.
Further, when an employee belonging to the Secretariat of the Audit and Supervisory Committee
receives any instruction from the Committee relating to its duties, he/she shall be free from thecommand and control of any Director or employee other than the Directors who are the Audit andSupervisory Committee Members with respect to such work so instructed.
(iii) The employees belonging to the Secretariat of the Audit and Supervisory Committee have a
confidentiality obligation regarding the content of instructions given by the Committee or a memberof the Committee.
7) Matters concerning the independence of the employees who are to assist the Audit and Supervisory
Committee :(i) The Audit and Supervisory Committee (or if the Committee nominates a specific member of theCommittee, such member of the Committee) shall be consulted in advance regarding personnel
affairs such as recruitment, transfer, performance appraisal, etc., of the employees belonging to theSecretariat of the Audit and Supervisory Committee.
(ii) Directors and employees shall pay attention not to impede the independence of the employees
belonging to the Secretariat of the Audit and Supervisory Committee.
8) System for reporting to the Audit and Supervisory Committee :(i) Directors and employees shall provide an appropriate report promptly upon any request forreporting on matters relating to the execution of business made by the Audit and Supervisory
Committee or any member of the Committee nominated by the Committee.

3(ii) Directors and employees shall immediately report the details of any matter they discover which may
seriously affect the business or financial conditions of the Company or its subsidiaries to the Audit
and Supervisory Committee or any member of the Committee nominated by the Committee.
(iii) No person who provides a report as under (i) or (ii) above shall be treated disadvantageously due tosuch reporting.
9) System to otherwise ensure that auditing by the Audit and Supervisory Committee will be carried out
effectively :(i) The Audit and Supervisory Committee or any member of the Committee nominated by theCommittee shall have meetings with the Company’s Directors (other than the Audit andSupervisory Committee Members) as appropriate to exchange opinions on the management policy,
any issues to be dealt with by the Company, major risks surrounding the Company, enhancement of
the environment for auditing by the Audit and Supervisory Committee, important audit issues, etc.
(ii) Directors and employees may not reject a request by the Audit and Supervisory Committee or any
member of the Committee nominated by the Committee for expenses to consult with attorneys,
certified accountants and other external experts or to entrust any investigation, appraisement orother affairs as necessary for them to carry out audits, unless such expenses so requested are
deemed unnecessary for the performance of duties of the Audit and Supervisory Committee or themember of the Committee nominated by the Committee.
(4) Overview of the operation status of the system to ensure the appropriateness of business activities (internal
control system)
1) Compliance system
The Company recognizes that “a company will last forever and be sound with Strict Preciseness” and“the corruption of an organization and downfall of a company start from a lack of Transparency.” Basedon these basic principles of “Strict Preciseness and Transparency,” the Company has established theFANUC Code of Conduct and by widely communicating this Code of Conduct, it strives to raise theemployee’s awareness of compliance. The Company has also established a whistle-blowing system
where employees, etc., can whistleblow without fear of consequences.
2) Risk management system
The Company has established a Risk Management Committee to identify and evaluate risks that could
obstruct the continuation of the Company’s business, increase in the Company’s value, or sustainable
development of the Company’s activities. By also sharing the contents of discussions of the Risk
Management Committee with the Outside Directors and the Audit and Supervisory Committee, theCompany strives to ensure the effectiveness of risk management.
3) Management of group companies
Regarding important matters pertaining to the management of the group companies, the Company’s
subsidiaries are required to request for prior approval by the Company or report to the Company, in
accordance with the FANUC Group Company Regulations. The Company also strives to raiseawareness of compliance among the subsidiaries, by applying the FANUC Code of Conduct to thesubsidiaries and widely communicating the content to the employees and executives of the subsidiaries.
Additionally, a whistle-blowing system where employees, etc. of the subsidiaries can whistleblow
without fear of consequences is introduced to the subsidiaries.
4) Execution of duties by Directors
The Company has introduced the Managing Officer System, and Directors efficiently execute theirduties based on internal rules that stipulate organizational structure, duties of organizations, duties andauthorities of management, and other relevant matters. As a Company with an Audit and Supervisory
Committee, the Company is working to further strengthen the supervisory functions of the Board of
Directors and speed up management decision-making, such as by developing and refining relevant rules.
5) Execution of duties by the Audit and Supervisory Committee
The Audit and Supervisory Committee gathers necessary information as appropriate in collaboration
with the Accounting Auditor and the Internal Audit Department to efficiently carry out audit operations.

42. Consolidated Statement of Changes in Net Assets(From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity

Balance at April 1, 2022

Common stock

Capital surplus

Retainedearnings

Treasury stock,at costTotal
shareholders’equity69,01496,082

1,441,559(105,950)

1,500,705

Changes during the year
Dividends of surplus(96,484)(96,484)

Net income attributable toowners of parent

170,587

170,587

Purchase of treasury stock
Disposal of treasury stock

183(24,439)(24,439)183

366

Net change except
shareholders' equity during
the year–

Total changes during the year
Balance at March 31, 2023–

183

74,103(24,256)

50,03069,01496,265

1,515,662(130,206)

1, 550,735

Accumulated other comprehensive income

Balance at April 1, 2022

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

15,20436,087(16,187)

35,104

14,0701,549,879

Changes during the year
Dividends of surplus(96,484)

Net income attributable toowners of parent

170,587

Purchase of treasury stock(24,439)

Disposal of treasury stock366

Net change except
shareholders' equity during
the year(1,486)31,850(827)

29,537(1,891)

27,646

Total changes during the year

(1,486)31,850(827)

29,537(1,891)

77,676

Balance at March 31, 2023

13,71867,937(17,014)64,641

12,1791,627,5555

3. Notes to the Consolidated Financial Statements

Notes to significant accounting policies for preparation of consolidated financial statements
1. Scope of consolidation
Number of consolidated subsidiaries and names of major consolidated subsidiaries
Number of consolidated subsidiaries: 37
Names of major consolidated subsidiaries:
FANUC America Corporation
FANUC Europe Corporation
KOREA FANUC CORPORATIONTAIWAN FANUC CORPORATIONFANUC INDIA PRIVATE LIMITEDSHANGHAI-FANUC Robomachine CO., LTD.
FANUC PERTRONICS LTD
FANUC SERVO LTD
Among the subsidiaries, some companies such as FANUC KOSAN LTD are not included in the scope of
consolidation.
The total amounts in terms of total assets, net sales, net income or loss (amount proportional to equity)and retained earnings (amount proportional to equity) of these unconsolidated subsidiaries are immaterial,
as such, and do not materially impact the consolidated financial statements as a whole.
2. Application of equity method
Number of equity method affiliates: 2
Names of the companies:
BEIJING-FANUC Mechatronics CO., LTD.
SHANGHAI-FANUC Robotics CO., LTD.
The net income or loss (amount proportional to equity) and retained earnings (amount proportional toequity) of these unconsolidated subsidiaries and affiliated companies that are not accounted for by theequity method (such as FANUC KOSAN LTD) are immaterial, as such, and do not materially impact theconsolidated financial statements as a whole.
3. Accounting policies(1) Valuation standards and valuation methods of significant assets(a) Securities
Available-for-sale securities(Securities other than shares, etc. that do not have a market price)
Stated at fair value (Differences in valuation are included directly in net assets and the cost of
securities sold is calculated by the moving average method.)(Shares, etc. that do not have a market price)
Stated at cost based on the moving average method.
(b) Inventories
Stated principally at cost by the specific identification method or at cost by the average method (themethod of writing down book value in accordance with decreased profitability).
(2) Depreciation method of significant depreciable assets(a) Property, plant and equipment
Property, plant and equipment are depreciated principally by the declining-balance method. However,for the Company and its domestic consolidated subsidiaries, buildings (excluding facilities attached tobuildings) acquired on or after April 1, 1998 and facilities attached to buildings and structuresacquired on or after April 1, 2016 are depreciated using the straight-line method.
(b) Intangible assets
Intangible assets are amortized principally by the straight-line method. Software for internal use isamortized over its internal estimated useful life (5 years) using the straight-line method.
(3) Basis of recording significant provisions(a) Allowance for doubtful accounts
The Company records allowance for doubtful accounts to prepare for possible losses on receivables
or loans based on the historical default rates for ordinary receivables and on estimates of collectability
for specific doubtful receivables.

6

(b) Warranty reserves
The Company records warranty reserves to allocate the accrual of warranty costs of the Company’s
goods to the net sales of the period based on historical experience. Additionally, necessary amounts
are estimated individually for specific cases.
(4) Other important matters forming the basis of preparation of the consolidated financial statements(a) Method of accounting for retirement benefits- Method of attributing the projected retirement benefits to periods
The benefit formula basis is applied as the method for attributing the expected retirement
benefits to periods of service for the calculation of the retirement benefit obligation.
- Method of amortization of actuarial differences and past service cost
Actuarial gain or loss is amortized in the year following the year in which the gain or loss isrecognized primarily by the straight-line method over a period (10 years) which is shorter thanthe estimated average remaining years of service of the eligible employees.
Past service cost is amortized as incurred by the straight-line method over a period (10 years)
which is shorter than the estimated average remaining years of service of the eligible employees.
(b) Significant revenue and expense recognition standards
The details of the main performance obligations in the major divisions related to revenue fromcontracts with customers of the Company and the Company’s consolidated subsidiaries and thetiming at which the Company typically satisfies these performance obligations are as follows.
(i) FA division, ROBOT division and ROBOMACHINE division
In the FA division, ROBOT division and ROBOMACHINE division, the Company mainly
develops, manufactures and sells products such as CNC systems (CNC and servo motors), lasers,
robots (including robot systems), and robomachines (ROBODRILLs (compact machining
centers), ROBOSHOTs (electric injection molding machines), and ROBOCUTs (wire electricaldischarge machines)).
Regarding the sale of these products, excluding export transactions, revenue is recognized mainly
when the customer accepts the product because it is judged that the customer gains control overthe product and the performance obligations are deemed satisfied when the products aretransferred to and accepted by the customer. For export transactions, revenue is recognized whenrisk is transferred to the customer based on trade conditions, etc. because it is judged that thecustomer gains control over the product and the performance obligations are deemed satisfied
when risk ownership is transferred to the customer based on trade conditions, etc.
In the ROBOT division, at certain consolidated subsidiaries, robots are manufactured and soldbased on contracts with customers who have set multiple milestones to measure the progress of
performance obligations, such as product development, design and installation, and revenue isrecognized over a period of time according to the achievement status of these milestones agreed
upon in the contract with the customer.
(ii) Service division
In the service division, the Company provides maintenance services and maintenance contracts
for products such as CNC systems (CNC and servo motors), lasers, robots (including robot
systems), and robomachines (ROBODRILLs (compact machining centers), ROBOSHOTs(electric injection molding machines), and ROBOCUTs (wire electrical-discharge machines)).
Regarding maintenance services, the Company has determined that it is a performance obligation
to complete maintenance based on contracts with customers and make Company products
available to customers, and revenue is mainly recognized when maintenance services are
accepted by the customer.
Regarding maintenance contracts, the Company has determined that it is a performanceobligation to provide customers with maintenance services that are always available based on thecontract, and revenue is recognized evenly over the period of the maintenance contract for thetransaction amount in the contract with the customer.
(c) Basis for the translation of foreign currency denominated assets and liabilities into Japanese yen
Monetary assets and liabilities denominated in foreign currency are translated into Japanese yen at the
spot exchange rate on the closing date and translation differences are recognized as profit or loss inthe corresponding fiscal year. Assets and liabilities of overseas subsidiaries and associates aretranslated into Japanese yen at the spot exchange rate on the closing date while revenue and expenses
are translated into Japanese yen at the average exchange rate for the period and exchange differences
are included in foreign currency translation adjustment under net assets.

7

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

2.

Amount recorded in the consolidated financial statements for the fiscal year under review
Given a significant decline in the market price of the land of Headquarters offices (carrying amount in the
consolidated balance sheet: 79,716 million yen), which is categorized into jointly used assets, the Company
has determined that there is an indication of impairment for jointly used assets.
Other information that contributes to understanding of accounting estimates
Since there is an indication of impairment for jointly used assets, the Company conducted a test to
determine whether an impairment loss related to jointly used assets needs to be recognized with a larger
unit that covers jointly used assets and multiple asset groups related to the jointly used assets. As a result of
the test, the total amount of undiscounted future cash flows was found to exceed the carrying amount, andthus no impairment loss was recognized.
Although the assumptions used for these estimates are the best estimates at this point, uncertain economic
conditions and the Group’s business standing in the future may have a material impact on estimated future
cash flows.

Notes to the consolidated balance sheet
1.
2.

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

479,693 million yen
1 million yen

Notes to consolidated statement of changes in net assets
1. Class and number of shares outstanding as of March 31, 2023
Common share: 201,909,397 shares
Note: On April 1, 2023, the Company performed a 5 for 1 stock split of common share. However, the number ofshares stated above is the number before the stock split.
2. Dividends(1) Amount of dividends paid
Resolution
Ordinary General
Meeting of Shareholders
held on June 29, 2022
Meeting of the Board of
Directors held on
October 27, 2022
Total

Class ofsharesTotal amount ofdividends(Millions of yen)

Dividend
per share

Recorddate

Effective
date

Commonshare

45,975239.68 yen

March 31,2022

June 30,
2022

Commonshare

50,509264.02 yen

September
30, 2022

December
1, 2022

96,484(2) Dividends for which the record date falls in the fiscal year under review while the effective date will be in
the next fiscal year
The Company will present the following proposal on dividends for common stock at the Ordinary
General Meeting of Shareholders to be held on June 29, 2023.
1. Total amount of payout:
51,770 million yen
2. Dividend per share:
271.64 yen
3. Record date:
March 31, 2023
4. Effective date:June 30, 2023
The source of dividends is expected to be retained earnings.
Note: On April 1, 2023, the Company performed a 5 for 1 stock split of common share. However, dividends
with the record date March 31, 2023 are based on the number of shares before the stock split.

8Notes to financial instruments
1. Status of financial instruments(1) Basic policy to manage financial instruments
The Group relies on its resources to finance operations and does not raise funds from external resources.
In addition, the Group does not enter into any derivative contracts.
(2) Nature and extent of risks arising from financial instruments
Deposits denominated in foreign currencies are exposed to the risk of exchange fluctuations.
Receivables such as trade notes and trade accounts are exposed to customer credit risk and receivables
denominated in foreign currencies that arise from overseas operations are exposed to the market risk offluctuation in foreign currency exchange rates. Marketable securities are negotiable certificates ofdeposits, which are easily convertible into cash and within three months, and thus are exposed to an
insignificant risk of price fluctuations. Investment securities, which mainly consist of stocks incompanies with business relationships, are exposed to the risk of market price fluctuations. Payables
such as trade notes and trade accounts are due within one year.
(3) Risk management for financial instruments
1) Credit risk (Risk of default, etc. of customers)
The Group, in accordance with the rules on receivables management, periodically monitors thestatus of key customers and manages the due dates and the balances of receivables by customer, toensure early detection and mitigation of any concerns over collection associated with thedeterioration of their financial position.
2) Market risk (Risk of fluctuation of exchanges rates, etc.)
The Group regularly monitors each yen equivalent of deposits denominated in foreign currencies tomanage the market risk.
The Group regularly monitors the market price and the financial condition of the issuer (business
partner) with respect to its investment securities and continuously reviews the holding status bytaking into account its relationship with the business partner.
2. Fair value of financial instruments
The carrying amounts on the consolidated balance sheet, the fair values, and the difference thereof, as ofMarch 31, 2023 are summarized as follows.
(Millions of yen)
Carrying amount inFair value (*)
Variance
the consolidatedbalance sheet (*)
Marketable securities and investment
securities
Available-for-sale securities
50,44450,444–
Assets total
50,44450,444–*1 “Cash and bank deposits,” “notes receivables,” “accounts receivables,” “notes and accounts payables”
and “accrued income taxes” are omitted because they comprise cash and short-term instruments whosecarrying amount approximates its fair value.
*2 Securities other than shares, etc. that do not have a market price are not included in “Marketablesecurities and investment securities.” The carrying amounts of the relevant financial instruments are as
follows.
(Millions of yen)Classification

Fiscal year under review

Unlisted stocks

125,756

9

Redemption schedule of monetary claims and securities with maturities after the consolidated closing
date(Millions of yen)
Due after 10
Within 1 year
1-5 years
5-10 years
years
Cash and bank deposits
512,528–––
Notes receivables
24,824–––
Accounts receivables
137,961–––
Marketable securities andinvestment securities
Available-for-sale securities
16,700–––with maturity
Total
692,013–––
3. Fair value information by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to theobservability and materiality of inputs used to measure fair value.
Level 1 fair value: Fair value measured using observable inputs, i.e. quoted prices in active markets for
assets or liabilities that are the subject of measurement.
Level 2 fair value: Fair value measured using observable inputs other than Level 1 inputs.
Level 3 fair value: Fair value measured using unobservable inputs.
If multiple inputs are used that are significant to the fair value measurement, the fair value measurement
is categorized in its entirety in the level of the lowest level input that is significant to the entire
measurement.
Financial instruments measured at fair value
Classification(Millions of yen)
Fair value

Level 1

Level 2

Level 3

Total

Marketable securities andinvestment securities
Available-for-sale securities
Equity securities
Negotiable certificates ofdeposits
Other

30,868––30,868–16,700–16,700

2,876

–

–

2,876

Assets total

33,744

16,700–50,444Note. A description of the valuation techniques and inputs used in the fair value measurements
Marketable securities and investment securities
Listed shares are valued using quoted prices. As listed shares are traded in active markets, their fair value isclassified as Level 1. On the other hand, marketable securities held by the Company are negotiable certificatesof deposits (NCD), and as their fair values approximate their carrying amounts due to their short maturities, thecarrying amounts are used as fair values. Therefore, their fair value is classified as Level 2.

10Notes to revenue recognition
1. Disaggregation of revenue from contracts with customers(Millions of yen)

DivisionFA

ROBOT

ROBOMACHINE

Service

Total

Japan

65,856

20,473

16,88522,033

125,247

Americas

7,666

134,251

11,30046,231

199,448

Europe22,17470,83922,471

31,158

146,642

China

68,623

113,630

60,616

2,773

245,642

Asia (other than China)

84,837

13,633

19,668

8,482

126,620

957
4,158
1,848
1,394
Revenue from contracts with
250,113356,984
132,788
112,071
customers
Sales to external customers
250,113356,984
132,788
112,071
Note. Sales by region are classified by country or region based on the location of customers.

8,357

Others851,956
851,956

Revenue generated from contracts with customers disaggregated by the time of revenue recognition is as follows.
(Millions of yen)
DivisionFA

ROBOT

ROBOMACHINE

Service

Total

Goods or services transferred
at a point in time

250,112344,435

130,595

98,281

823,423

Goods or services transferredover time1

12,5492,193

13,79028,533

Revenue from contracts withcustomers

250,113356,984

132,788

112,071

851,956

Sales to external customers

250,113356,984

132,788

112,071

851,956

2. Useful information in understanding revenue from contracts with customers(1) FA division, ROBOT division and ROBOMACHINE division
In the FA division, ROBOT division and ROBOMACHINE division, the Company mainly develops,
manufactures and sells products such as CNC systems (CNC and servo motors), lasers, robots(including robot systems), and robomachines (ROBODRILLs (compact machining centers),
ROBOSHOTs (electric injection molding machines), and ROBOCUTs (wire electrical-dischargemachines)).
Regarding the sale of these products, excluding export transactions, revenue is recognized mainly
when the customer accepts the product because it is judged that the customer gains control over the
product and the performance obligations are deemed satisfied when the products are transferred toand accepted by the customer. For export transactions, revenue is recognized when risk is transferredto the customer based on trade conditions, etc. because it is judged that the customer gains control
over the product and the performance obligations are deemed satisfied when risk ownership istransferred to the customer based on trade conditions, etc.
In the ROBOT division, at certain consolidated subsidiaries, robot systems are manufactured andsold based on contracts with customers who have set multiple milestones to measure the progress of
performance obligations, such as product development, design and installation, and revenue isrecognized over a period of time according to the achievement status of these milestones agreed
upon in the contract with the customer.
In the FA division, ROBOT division and ROBOMACHINE division, there are no contracts that
includes variable consideration because the transaction price is decided at the time the contract ismade. The consideration for the transaction is received within approximately two months after theacceptance of products is completed, and no significant financial factors are adjusted for thereceivables based on the contract with the customer.

11Moreover, in the product sales contracts in the FA division, ROBOT division and ROBOMACHINE
division, the Company has a product warranty obligation to repair or replace a product free of charge
for issues caused by product defects that occur within a certain period of time after the product is
accepted (varies by product and region, but generally within one to two years). As this warranty
obligation provides the customer with a guarantee that the product will function as intended inaccordance with the specifications set forth in the contract with the customer, it is not identified as aseparate performance obligation and is recognized as warranty reserves. If, in addition to thewarranty that the product complies with the agreed specifications, an extended warranty is provided,a separate paid maintenance contract is concluded, and revenue is recognized evenly over the periodof the maintenance contract in the service division.
(2) Service division
In the service division, the Company provides maintenance services and maintenance contracts for
products such as CNC systems (CNC and servo motors), lasers, robots (including robot systems),
and robomachines (ROBODRILLs (compact machining centers), ROBOSHOTs (electric injection
molding machines), and ROBOCUTs (wire electrical-discharge machines)).
Regarding maintenance services, the Company has determined that it is a performance obligation tocomplete maintenance based on contracts with customers and make the Company’s products
available to customers, and revenue is mainly recognized when maintenance services are acceptedby the customer.
Regarding maintenance contracts, the Company has determined that it is a performance obligation toprovide customers with maintenance services that are always available based on the contract, andrevenue is recognized evenly over the period of the maintenance contract for the transaction amountin the contract with the customer.
In the service division, there are no contracts that include variable consideration because thetransaction price is fixed at the start of revenue recognition. The consideration for the transaction isreceived within approximately two months after the acceptance of maintenance service is completedor the maintenance contract is concluded, and no significant financial factors are adjusted for thereceivables based on the contract with the customer.
3. Information in understanding the amount of revenue for the fiscal year under review and the following
fiscal years(1) Balance of contract liabilities, etc.
(Millions of yen)
Fiscal year under review(March 31, 2023)
Receivables from contracts with customers (beginning balance)
150,195
Receivables from contracts with customers (ending balance)
Contract liabilities (beginning balance)

162,785

Contract liabilities (ending balance)

22,442

20,903Mainly in the FA division, ROBOT division and ROBOMACHINE division, contract liabilities relate
to advance payments (included in “other current liabilities” in current liabilities) received from thecustomer at the time of ordering for a sales contract where revenue is recognized at the time of thecustomer’s acceptance. In the service division, regarding maintenance contracts with customers whererevenue is recognized over the period of the maintenance contract, contract liabilities relate to advancepayments for the maintenance contract period received from the customer based on the contract toreceive the transaction price for the maintenance contract period in a lump sum at the time the contract ismade. Contract liabilities are reversed upon recognition of revenue.
Of the amount of revenue recognized in the fiscal year under review, the amount included in thebalance of contract liabilities at the beginning of the period is 18,408 million yen.

12(2) Transaction price allocated to the remaining performance obligations
The Company and its consolidated subsidiaries have applied the practical expedient to the notes ontransaction prices allocated to the remaining performance obligations, and do not disclose contracts
with an original expected duration of one year or less. These performance obligations are mainly
related to maintenance contracts in the service division. The total transaction price allocated to theremaining performance obligations and the time frame the Company expects to recognize the amountof revenue are as follows.

PeriodWithin 1 year

(Millions of yen)
Fiscal year under review(March 31, 2023)
10,133

Over 1 year

7,495
Total

17,628Notes to per share information
Net assets per share
Net income per share

1,695.19 yen
178.55 yen

Note: On April 1, 2023, the Company performed a 5 for 1 stock split of common share.
“Net assets per share” and “Net income per share” were calculated assuming that the stock split was
performed at the beginning of the fiscal year under review.
Significant subsequent events(The stock split and the partial amendment to the Articles of Incorporation due to the stock split)
On April 1, 2023, the Company performed the stock split in accordance with the resolution of the Board of
Directors meeting held on January 27, 2023.
(1) Purpose of the stock split
The stock split aims to reduce the minimum investment price for the Company’s stock, increase theliquidity of the stocks, and to further expand the investor base.
(2) Overview of the stock split[1] Stock split method
On March 31, 2023, the record date of the stock split, each common share owned by shareholders listed orrecorded in the shareholder registry split into five shares.
[2] Increase in the number of shares as a result of the stock split
Total number of shares outstanding as of March 31, 2023

201,909,397 shares

Increase in the number of shares as a result of the stock split

807,637,588 shares

Number of shares outstanding after the stock split

1,009,546,985 shares

Number of authorized shares after the stock split

2,000,000,000 shares[3] Stock split schedule
Date of public notice of the record date

March 16, 2023

Record date

March 31, 2023

Effective date

April 1, 2023

13

(3) Partial amendment to the Articles of Incorporation[1] Reason for the amendment
Due to the stock split described above, the Company has amended the total number of shares authorized to
be issued stipulated in Article 5 of the Articles of Incorporation effective April 1, 2023, by a resolution of
the Board of Directors held on January 27, 2023, pursuant to the Paragraph 2 of Article 184, of theCompanies Act.
[2] Details of the amendment
The details of the amendment are as follows.
(Changes are underlined.)
Before the amendment

After the amendment

Article 5 (Total Number of Shares Authorized to Be
Issued)Article 5 (Total Number of Shares Authorized to Be
Issued)The total number of shares authorized to be issued
by the Company shall be four hundred million(400,000,000) shares.

The total number of shares authorized to be issued by
the Company shall be two billion (2,000,000,000)
shares.

[3] Amendment schedule
Effective date of amendment to the Articles of Incorporation

April 1, 2023

(4) Others[1] Change in common stock
The above stock split shall not change the Company’s common stock.
[2] Dividend
The above stock split shall be effective as of April 1, 2023. The year-end dividend for the year ended March
31, 2023 shall be paid based on the number of shares before the stock split.
(Cancellation of treasury shares)
At the meeting of the Board of Directors held on April 26, 2023, the Company resolved to cancel treasury sharesin accordance with Article 178 of the Companies Act.
(1) Types of shares to be cancelled:

Company common shares(2) Number of shares to be cancelled:

6,472,996 shares(Ratio of total number of issued shares prior tocancellation: 0.64%)(3) Scheduled date of cancellation:

May 31, 2023

(4) Total number of issued shares after cancellation:

1,003,073,989 shares

144. Non-Consolidated Statement of Changes in Net Assets(From April 1, 2022 to March 31, 2023)

Common stock
Balance at April 1, 2022

(Millions of yen)

Shareholders’ equity
Capital surplus
Legal capital
Other capitalsurplussurplus69,014

96,057

Total capitalsurplus87

96,144183

183

Changes during the year
Reversal of reserve for
reduction entry
Dividends of surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net change except
shareholders’ equity during
the year
Total changes during theyear
Balance at March 31, 2023

–

–

183

183

69,014

96,057

270

96,327

Shareholders’ equity
Retained earnings
Other retained earnings

Legalretainedearnings
Balance at April 1, 2022

Reserve forresearch anddevelopment

8,252

Reserve for
reduction
entry

311,800

33

Retainedearnings
brought
forwardGeneralreserve
303,580

Total retained
earnings

452,307

1,075,972

1–

Dividends of surplus(96,484)(96,484)

Net income

190,643

190,643

Changes during the year
Reversal of reserve for
reduction entry(1)

Purchase of treasury stock
Disposal of treasury stock
Net change except
shareholders’ equity during
the year
Total changes during theyear
Balance at March 31, 2023

–

–

(1)

–

94,16094,1598,252

311,800

32

303,580

546,467

1,170,131

15

Shareholders’ equity

Balance at April 1, 2022

Treasurystock, at cost

Total
shareholders’equity(105,950)

1,135,180

Valuation and translation
adjustments
Valuation
Total
difference on
valuation andavailable-for-saletranslation
securities
adjustments
14,843

14,843

Total net
assets1,150,023

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

Dividends of surplus(96,484)(96,484)

Net income

190,643

190,643

Purchase of treasury stock(24,439)(24,439)(24,439)

Disposal of treasury stock

183

366

366

Net change except
shareholders’ equity
during the year
Total changes during theyear
Balance at March 31, 2023

(1,432)(1,432)(1,432)(24,256)

70,086(1,432)(1,432)

68,654(130,206)

1,205,266

13,411

13,411

1,218,677

16

5. Notes to the Non-Consolidated Financial Statements

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

175. Revenue and expense recognition standards
The details of the main performance obligations in the major divisions related to revenue from contracts
with customers of the Company and the Company’s consolidated subsidiaries and the timing at which theCompany typically satisfies these performance obligations are as follows.
(1) FA division, ROBOT division and ROBOMACHINE division
In the FA division, ROBOT division and ROBOMACHINE division, the Company mainly develops,
manufactures and sells products such as CNC systems (CNC and servo motors), lasers, robots (including
robot systems), and robomachines (ROBODRILLs (compact machining centers), ROBOSHOTs(electric injection molding machines), and ROBOCUTs (wire electrical-discharge machines)).
Regarding the sale of these products, excluding export transactions, revenue is recognized mainly when
the customer accepts the product because it is judged that the customer gains control over the productand the performance obligations are deemed satisfied when the products are transferred to and acceptedby the customer. For export transactions, revenue is recognized when risk is transferred to the customer
based on trade conditions, etc. because it is judged that the customer gains control over the product andthe performance obligations are deemed satisfied when risk is transferred to the customer based on tradeconditions, etc.
(2) Service division
In the service division, the Company provides maintenance services and maintenance contracts for
products such as CNC systems (CNC and servo motors), lasers, robots (including robot systems), androbomachines (ROBODRILLs (compact machining centers), ROBOSHOTs (electric injection molding
machines), and ROBOCUTs (wire electrical-discharge machines)).
Regarding maintenance services, the Company has determined that it is a performance obligation tocomplete maintenance based on contracts with customers and make the Company’s products available
to customers, and revenue is mainly recognized when maintenance services are accepted by the customer.
Regarding maintenance contracts, the Company has determined that it is a performance obligation toprovide customers with maintenance services that are always available based on the contract, andrevenue is recognized evenly over the period of the maintenance contract for the transaction amount in
the contract with the customer.

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

2.

Amount recorded in the non-consolidated financial statements for the fiscal year under review
Given a significant decline in the market price of the land of Headquarters offices (carrying amount in the
non-consolidated balance sheet: 79,716 million yen), which is categorized into jointly used assets, theCompany has determined that there is an indication of impairment for jointly used assets.
Other information that contributes to understanding of accounting estimates
Same as “2. Other information that contributes to understanding of accounting estimates” in “Notes toaccounting estimates, Notes to the Consolidated Financial Statements.”

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

431,437 million yen

2. Balance of Guaranteed obligations:
1 million yen
The Company guarantees the obligations of employee mortgage loans.
3. Monetary receivables from and payables to subsidiaries and associates
Short-term monetary receivables:
61,686 million yen
Short-term monetary payables:
2,095 million yen
Long-term monetary receivables:
968 million yen

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

18

467,873 million yen
14,255 million yen
102,859 million yen

Notes to non-consolidated statement of changes in net assets
Class and number of shares of treasury stock at the end of the fiscal year under review
Common share: 11,325,339 shares
Note: On April 1, 2023, the Company performed a 5 for 1 stock split of common share. However, the number ofshares stated above is the number before the stock split.

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

11,281 million yen
14,643 million yen
1,123 million yen
5,781 million yen
390 million yen
9,009 million yen
42,227 million yen(1,703) million yen
40,524 million yen

Deferred tax liabilities
Prepaid pension costs
Valuation difference on available-for-sale securities
Other
Total deferred tax liabilities
Net deferred tax assets(880) million yen(4,582) million yen(37) million yen(5,499) million yen
35,025 million yen

19Notes to related-party transactions
Subsidiaries and affiliated companies
Type

Company
name or
name

Ratio ofvoting rights
ownership(owned)Relationshipwith relatedparty

Subsidiary

FANUC
America
Corporation(Ownership)
Direct100%

Sales of theCompany’s
products

Subsidiary

FANUC
EuropeCorporation(Ownership)
Direct100%

Sales of theCompany’s
products(Ownership)
Direct50%

Sales of theCompany’s
products(Ownership)
Direct50%

Sales of theCompany’s
products

Affiliate

Affiliate

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

Balance asof March
31, 2023(Millionsof yen)Transaction
amount(Millions ofyen)Account

94,464

Accounts
receivable,
trade

87,372

Accounts
receivable,
trade

18,742

Sales of FA(note)

69,959Accounts
receivable,
trade

5,463

Sales of
Robots(note)

102,877

Accounts
receivable,
trade

21,986

Transaction
amount(Millions ofyen)Account

Balance asof March
31, 2023(Millionsof yen)

45

–

–

45

–

–

27

–

–

Details of thetransaction
Sales of FA,
Robots, andRobomachines(note)
Sales of FA,
Robots, andRobomachines(note)

7,913

Business conditions and the policy for the determination of business conditions
Note. Transaction prices are determined by taking into account general market prices.
Officers and major individual shareholders
Type

OfficerCompany
name or
name

Ratio ofvoting rights
ownership(owned)Relationshipwith related
party

Yoshiharu
Inaba(Owned)Direct0.0

Representative
Director,
Chairman of
the Company

Kenji
Yamaguchi(Owned)Direct0.0

Representative
Director,
President of
the Company

Yoshihiro
Gonda(Owned)Direct0.0

Senior Executive
Vice President of
the Company

Details of thetransaction
In-kind contributionof monetarycompensation claims(note)
In-kind contributionof monetarycompensation claims(note)
In-kind contributionof monetarycompensation claims(note)

Business conditions and the policy for the determination of business conditions
Note. They are in-kind contributions of monetary compensation claims based on the restricted stock remuneration
system.
The details of the allotment of restricted stock are determined after thorough consideration of various
factors such as contributions made by eligible Directors and Managing Officers, and the policy fromdetermining details of remuneration, etc. for individual Directors and Managing Officers of the Company.

20

Notes to revenue recognition
Useful information in understanding revenue from contracts with customers(1) FA division, ROBOT division and ROBOMACHINE division
In the FA division, ROBOT division and ROBOMACHINE division, the Company mainly develops,
manufactures and sells products such as CNC systems (CNC and servo motors), lasers, robots (including
robot systems), and robomachines (ROBODRILLs (compact machining centers), ROBOSHOTs (electric
injection molding machines), and ROBOCUTs (wire electrical-discharge machines)).
Regarding the sale of these products, excluding export transactions, revenue is recognized mainly when
the customer accepts the product because it is judged that the customer gains control over the product andthe performance obligations are deemed satisfied when the products are transferred to and accepted by thecustomer. For export transactions, revenue is recognized when risk is transferred to the customer based on
trade conditions, etc. because it is judged that the customer gains control over the product and theperformance obligations are deemed satisfied when risk ownership is transferred to the customer based on
trade conditions, etc.
In the FA division, ROBOT division and ROBOMACHINE division, there are no contracts that includes
variable consideration because the transaction price is decided at the time the contract is made. The
consideration for the transaction is received within approximately two months after the acceptance of
products is completed, and no significant financial factors are adjusted for the receivables based on thecontract with the customer.
Moreover, in the product sales contracts in the FA division, ROBOT division and ROBOMACHINE
division, the Company has a product warranty obligation to repair or replace a product free of charge forissues caused by product defects that occur within a certain period of time after the product is accepted(varies by product and region, but generally within one to two years). As this warranty obligation
provides the customer with a guarantee that the product will function as intended in accordance with thespecifications set forth in the contract with the customer, it is not identified as a separate performanceobligation and is recognized as warranty reserves. If, in addition to the warranty that the product complies
with the agreed specifications, an extended warranty is provided, a separate paid maintenance contract isconcluded, and revenue is recognized evenly over the period of the maintenance contract in the service
division.
(2) Service division
In the service division, the Company provides maintenance services and maintenance contracts for
products such as CNC systems (CNC and servo motors), lasers, robots (including robot systems), androbomachines (ROBODRILLs (compact machining centers), ROBOSHOTs (electric injection molding
machines), and ROBOCUTs (wire electrical-discharge machines)).
Regarding maintenance services, the Company has determined that it is a performance obligation tocomplete maintenance based on contracts with customers and make the Company’s products available tocustomers, and revenue is mainly recognized when maintenance services are accepted by the customer.
Regarding maintenance contracts, the Company has determined that it is a performance obligation toprovide customers with maintenance services that are always available based on the contract, and revenue
is recognized evenly over the period of the maintenance contract for the transaction amount in thecontract with the customer.
In the service division, there are no contracts that include variable consideration because the transaction
price is fixed at the start of revenue recognition. The consideration for the transaction is received withinapproximately two months after the acceptance of maintenance service is completed or the maintenancecontract is concluded, and no significant financial factors are adjusted for the receivables based on thecontract with the customer.

21

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

1,278.89 yen
199.54 yen

Note: On April 1, 2023, the Company performed a 5 for 1 stock split of common share.
“Net assets per share” and “Net income per share” were calculated assuming that the stock split was
performed at the beginning of the fiscal year under review.

Significant subsequent events(The stock split and the partial amendment to the Articles of Incorporation due to the stock split)
On April 1, 2023, the Company performed the stock split in accordance with the resolution of the Board of Directors
meeting held on January 27, 2023.
(1) Purpose of the stock split
The stock split aims to reduce the minimum investment price for the Company’s stock, increase the liquidity ofthe stocks, and to further expand the investor base.
(2) Overview of the stock split[1] Stock split method
On March 31, 2023, the record date of the stock split, each common share owned by shareholders listed orrecorded in the shareholder registry split into five shares.
[2] Increase in the number of shares as a result of the stock split
Total number of shares outstanding as of March 31, 2023

201,909,397 shares

Increase in the number of shares as a result of the stock split

807,637,588 shares

Number of shares outstanding after the stock split

1,009,546,985 shares

Number of authorized shares after the stock split

2,000,000,000 shares[3] Stock split schedule
Date of public notice of the record date

March 16, 2023

Record date

March 31, 2023

Effective date

April 1, 2023

(3) Partial amendment to the Articles of Incorporation[1] Reason for the amendment
Due to the stock split described above, the Company has amended the total number of shares authorized to beissued stipulated in Article 5 of the Articles of Incorporation effective April 1, 2023, by a resolution of theBoard of Directors held on January 27, 2023, pursuant to the Paragraph 2 of Article 184, of the Companies Act.

22

[2] Details of the amendment
The details of the amendment are as follows.
(Changes are underlined.)
Before the amendment

After the amendment

Article 5 (Total Number of Shares Authorized to Be
Issued)Article 5 (Total Number of Shares Authorized to Be
Issued)The total number of shares authorized to be issued
by the Company shall be four hundred million(400,000,000) shares.

The total number of shares authorized to be issued by
the Company shall be two billion (2,000,000,000)
shares.

[3] Amendment schedule
Effective date of amendment to the Articles of Incorporation

April 1, 2023

(4) Others[1] Change in common stock
The above stock split shall not change the Company’s common stock.
[2] Dividend
The above stock split shall be effective as of April 1, 2023. The year-end dividend for the year ended March 31,
2023 shall be paid based on the number of shares before the stock split.
(Cancellation of treasury shares)
At the meeting of the Board of Directors held on April 26, 2023, the Company resolved to cancel treasury shares inaccordance with Article 178 of the Companies Act.
(1) Types of shares to be cancelled:

Company common shares(2) Number of shares to be cancelled:

6,472,996 shares(Ratio of total number of issued shares prior tocancellation: 0.64%)(3) Scheduled date of cancellation:

May 31, 2023

(4) Total number of issued shares after cancellation:

1,003,073,989 shares23