(TRANSLATION)
This document has been translated from the Japanese original for reference purposes only. In the event of any
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 thetranslation.

Consolidated Quarterly Financial Results (based on Japanese standards)
For the nine months ended December 31, 2016
January 26, 2017
Stock exchange listing: Tokyo Stock Exchange
URL http://www.fanuc.co.jp(Name) Yoshiharu Inaba(Name) Keisuke Fujii
Tel: (0555) 84-5555

Company name:
FANUC CORPORATION
Stock code:
6954
Representative: (Title) Chairman and CEO
Contact:(Title) Manager, Public Relations

1. Consolidated Financial Results for the Nine months Ended December 31, 2016 (April 1, 2016 –December 31, 2016)(1) Consolidated Results of Operations(% represents change from the corresponding previous nine months period.)
Net income
Nine months ended
attributable toNet
sales
OperatingincomeOrdinary
incomeDecember 31
shareholders ofparent company
Millions of yen%

Millions of yen

390,327 (19.9)
111,649487,591(7.4)
172,831
Note: Comprehensive income April-December 2016
April-December 2015
2016
2015

Nine months ended
December 31

Net income pershare% Millions of yen%

(27.3)(14.8)

Diluted net incomeper shareYenYen──

477.45650.702016
2015% Millions of yen(35.4) 125,120 (32.5)
92,573(18.4) 185,413 (16.8) 127,301¥87,376 million(25.6)%¥117,435 million(35.8)%(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen%

1,515,730
1,331,991
87.5
1,512,8951,334,910
87.8
Equity: December 31, 2016 ¥1,325,696 million
March 31, 2016 ¥1,328,483 million

December 31, 2016
March 31, 2016
(Ref.)

2. Dividends
1stquarter
Yen

Dividends per share
3rdYear-end
2ndquarter
Dividends
quarter
Yen

Yen

Yen

Full year
Yen

2015
－
281.86－208.21490.072016－－
186.202016(forecast)－－
Note: We have not changed the forecasts of dividends from the latest ones.
Note: The forecasts of the year-end dividends for the year ending March 31, 2017, will be disclosed
promptly upon their availability.3. Consolidated Financial Results Forecasts for the Year Ending March 31, 2017 (April 1, 2016 –March 31, 2017) (% represents change from the previous year.)
Net income
Net
attributable toNet sales
Operating income
Ordinary income
incomeshareholders ofparent company per share% Millions of yen%

Yen

Fiscal period
521,000 (16.4)
140,500 (34.8)
154,600 (32.6)
113,300
Note: We have changed the forecasts of financial results from the latest ones.

Millions of yen% Millions of yen% Millions of yen(29.1)

584.35*Notes(1) Changes in Significant Subsidiaries during the period(changes in specific subsidiaries that caused change in scope of consolidation):

No(2) Adoption of Simplified and Specifically Applied Accounting Method for Quarterly
Consolidated Financial Reporting:No(3) Changes in Accounting Principles and Accounting Estimates, and Revisions/Restatements
1. Changes associated with changes in accounting standards：

Applicable

2. Changes in accounting principles other than 1：

No

3. Changes in accounting estimates：No

4. Revisions/restatements： No
Note: For details, please see “3. Other Information (3) Changes in Accounting Principles andAccounting Estimates, and Revisions/Restatements” on Page 7 in Attachment.

(4) Number of shares outstanding (Common share)
1

Number of shares outstanding at the end of the period (including treasury stocks)
204,072,715 March 31, 2016
205,942,215
December 31, 2016
sharesshares2

Number of treasury stocks
December 31, 2016

3

10,212,474
sharesMarch 31, 2016

Average number of shares during the period
193,890,545 April-December 2015
April-December 2016
shares

11,300,237
shares
195,636,338
shares＊ Status of quarterly review
These quarterly financial results are not subject to the quarterly review based on the Financial Instruments
and Exchange Law. The review process for the quarterly financial statements based on the FinancialInstruments and Exchange Law has not been completed at the time of the disclosure of these results.
＊ Statements on the proper use of financial forecasts and other special notes
Any forecasts described in this report are subject to uncertain factors such as supply and demand trends,
industry competition, economic conditions, and others in major markets. Actual results may differ from theseforecasts. With regard to the forecasts of the year-end dividends for the year ending March 31, 2017, weexpect to disclose them promptly after we become able to disclose them.

Table of Contents of Accompanying Documents

1. Results of Operations and Financial Position(1) Results of Operations

22

(2)

Financial Position

2(3)Financial Results Forecasts

3

2. Consolidated Quarterly Financial Statements

4

3.

(1)

Consolidated Quarterly Balance Sheet

4(2)Consolidated Quarterly Statement of Income and Consolidated
Quarterly Statement of Comprehensive Income

5

Consolidated Quarterly Statement of Income5Consolidated Quarterly Statement of Comprehensive Income

6

Other Information

7(1)Changes in Significant Subsidiaries during the period7(2)Adoption of Simplified and Specifically Applied Accounting
Method for Quarterly Consolidated Financial Reporting

7

Changes in Accounting Principles and Accounting Estimates,and Revisions/Restatements

7(4)Note on Premise of a Going Concern7(5)Note on the Substantial Change in the Shareholders’ Equity

7(3)Supplement to Consolidated Financial Results

181. Results of Operations and Financial Position(1) Results of Operations
The FANUC Group’s results for the third quarter (April to December 2016) are as follows.
In the FA Division, the machine tool industry (the primary market for our CNC systems) saw someareas of vigorous movement in China, including increases in short-term demand, but continued toexperience severe difficulties in other Asian economies and Europe. Sales in Japan were steady. With
regard to our lasers, amid declining demand for CO2 LASER oscillators, we continued to focus ourefforts on expanding sales of fiber laser oscillators. Under such circumstances, net sales in the FA
Division decreased compared with the corresponding period of the previous fiscal year.
In the Robot Division, sales in China were favorable, and sales, particularly to the automobileindustry, remained steady in Japan. However, sales in the Robot Division decreased overall comparedwith the previous fiscal year due to the effect of a trough in facility investments in the Americas andEurope during the first half of the current fiscal year. Nevertheless, demand for robots is expected toexpand in the future, and we are therefore proceeding with plans to boost robot production capacity,including conversion of part of the Tsukuba Factory to robot manufacturing.
In the Robomachine Division, sales of ROBODRILL (compact machining center) decreased
compared with the previous fiscal year during which still existed a short-term IT-related demand.
However, sales in the automobile and motorcycle parts processing remained steady, and weaccelerated the expansion of sales channels with the market launch of a new model in last autumn.
Sales of ROBOSHOTs (electric injection molding machine) declined due to the continued stagnation inIT-related demand, but we worked to cultivate new sales channels with the market launch oftwo-components molding options. Sales also decreased slightly for ROBOCUTs (wire-cut electricdischarge machine). However, we have high expectations going forward as the introduction of large
machines to the market is just starting to contribute to our business results.
Under these circumstances, the FANUC Group strived to make customers trust our products andservices to an even greater extent, by becoming united as one group under the slogans “one FANUC,”“Reliable / Predictable / Easy to Repair,” and “Service First,” accelerated preparations for adaptation toIoT through FIELD (FANUC Intelligent Edge Link and Drive) system, and pressed forward withmeasures to stabilize and develop our future business.
As a result, during the nine months from April to December 2016, FANUC posted consolidated net
sales totaling ¥390,327 million, down 19.9%, consolidated ordinary income totaling ¥125,120 million,down 32.5%, and consolidated net income totaling ¥92,573 million, down 27.3%, compared with thecorresponding period of the previous fiscal year.
Looking at the performance by business group, the FA Group posted consolidated sales totaling¥127,678 million, down 4.6%, the Robot Group posted consolidated sales totaling ¥136,220 million,down 4.8%, the Robomachine Group posted consolidated sales totaling ¥69,163 million, down 53.5%,
and the Service Group posted consolidated sales totaling ¥57,266 million, down 7.3%, compared withthe corresponding period of the previous fiscal year.
※ “Net income” in “Results of Operations and Financial Position” means “Net
income attributable to shareholders of parent company” in the Statement ofIncome.

(2)

Financial Position

Total asset increased ¥2,835 million to ¥1,515,730 million compared with the end of the previous
fiscal year.
Total liabilities increased ¥5,754 million to ¥183,739 million compared with the end of the previous
fiscal year.
Total net assets decreased ¥2,919 million to ¥1,331,991 million from the end of the previous fiscalyear.
We cancelled our treasury shares exceeding the 5% of the total number of issued shares(1,869,500 shares, ¥13,379 million) on June 8, 2016 based on the new shareholder return policy weannounced on April 27, 2015. (There was no effect on the amount of total net assets.)2(3) Financial Results Forecasts
The prospects of the business environment surrounding the FANUC Group remain uncertain. Ourconsolidated financial forecasts at present are as follows.

For the fiscal year 2016 (April 1, 2016 through March 31, 2017)(Millions of yen)Previous forecast(released onOctober 31, 2016)

New forecast

Net sales

501,900

521,000

3.8

Operating income

134,700

140,500

4.3

Ordinary income

142,200

154,600

8.7

Net income

104,100

113,300

8.8

Comparison withPrevious forecast (%)

Note: The currency rate applied to the period from January 1, 2017 to March 31, 2017 is averaged at 110 yen/US
dollar and 115 yen/euro.

3

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheet(Millions of Yen)
March 31, 2016
AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable – trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax asset
OthersAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
OthersAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Notes and accounts payable – trade
Income taxes payable
Warranty reserves
OthersTotal current liabilities
Noncurrent liabilities:
Liability related to retirement benefits
OthersTotal noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equityAccumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Accumulated adjustment to retirement benefits
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

4

December 31, 2016

686,662
100,307
145,000
52,736
39,206
11,124
23,107
16,196(1,568)1,072,770

631,91498,079145,000
59,88942,622
12,163
20,20918,838(1,503)
1,027,211

131,800
220,260
352,060
3,875

133,053
265,407398,460
4,572

65,80918,382(1)
84,190440,125
1,512,895

63,48921,999(1)
85,487
488,519
1,515,730

24,815
17,1996,676
57,426106,116

35,745
10,142
7,028
59,180112,095

68,346
3,523
71,869177,985

68,3793,265
71,644
183,739

69,01496,206
1,269,557(90,574)
1,344,203

69,01496,2081,272,130(90,586)
1,346,766

4,391

7,320

5,974
(26,085)(3,364)(25,026)(15,720)(21,070)

6,427
1,334,910
1,512,895

6,295
1,331,991
1,515,730

(2) Consolidated Quarterly Statement of Income andConsolidated Quarterly Statement of Comprehensive Income
Consolidated Quarterly Statement of Income(Millions of Yen)
Nine months ended
December 31, 2015

Nine months ended
December 31, 2016

Net sales
Cost of sales

487,591
253,517

390,327
220,330

Gross profit

234,074

169,997

Selling, general and administrative expenses

61,24358,348Operating income

172,831

111,649

1,830
1,080
9,032
2,012

1,678
1,346
7,393
4,229

13,954

14,646

283
1,089

446

Non-operating income
Interest income
Dividends income
Investment profit on equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Donation
Miscellaneous expenses
Total non-operating expenses

729

1,372

1,175

Ordinary income

185,413125,120

Income before income taxes

185,413125,120

Income taxes-current
Income taxes-deferred

54,117
3,461

34,315(2,033)

Total taxes and others

57,57832,282

Net income

127,835

92,838Net income attributable to non-controlling interests

534

265

Net income attributable to shareholders of parent
company

127,301

92,573

5

Consolidated Quarterly Statement of Comprehensive Income(Millions of Yen)
Nine months ended
December 31, 2015
Net Income
Other Comprehensive Income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Adjustment to retirement benefit
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income for the nine months ended
December 31
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

6

Nine months ended
December 31, 2016

127,835

92,838(1,486)(6,608)
(950)

2,929
(531)
1,059

(1,356)(8,919)(10,400)(5,462)

117,435

87,376

117,19124487,223
153

3.

Other Information(1) Changes in Significant Subsidiaries during the period(changes in specific subsidiaries that caused change in scope ofconsolidation):
None
(2)

(3)

Adoption of Simplified and Specifically Applied Accounting Method
for Quarterly Consolidated Financial Reporting:

None

Changes in Accounting Principles and Accounting Estimates, andRevisions/Restatements:
Changes in accounting principles(Application of Accounting Standard for Business Combinations andother standards)
Following the amendment to the Corporation Tax Act, FANUCCORPORATION has adopted the "Practical Solution on a change indepreciation method due to Tax Reform 2016 (PITF No.32, June 17,2016)" effective from the first quarter of the consolidated fiscal year
under review. The depreciation method for building fixtures andstructures purchased on or after April 1, 2016 has been changed fromthe declining-balance method to the straight-line method.
The impact of this change on the profit/loss of the nine months ended
December 31, 2016 is negligible.

(4)

Note on Premise of a Going Concern:

None

(5)

Note on the Substantial Change in Shareholders’ Equity:
Based on a resolution approved at a meeting of the Board of Directors
held on May 27, 2016, the Company cancelled 1,869,500 shares oftreasury stock on June 8, 2016. As a result, capital surplus decreasedby ¥2 million, retained earnings decreased by ¥13,377 million, andtreasury stock decreased by ¥13,379 million.

7

Supplement to Consolidated Financial Results
1

Consolidated Results (April ～ December, 2016)
1) Net income
92.6 billion yen(27% down from the same period of last year)2) Net sales

390.3 billion yen(20% down from the same period of last year)3) Operating income 111.6 billion yen(35% down from the same period of last year)
Ordinary income
125.1 billion yen (33% down from the same period of last year)
Ordinary income to net sales ratio
32.1%4) Sales by GroupFA
Robot
Robomachine
Service127.7 billion yen
136.2 billion yen
69.1 billion yen
57.3 billion yen(5% down from the same period of last year)(5% down from the same period of last year)(54% down from the same period of last year)(7% down from the same period of last year)5) Orders404.6 billion yen(11% down from the same period of last year)

2

Consolidated Results Forecast for the Year ending March 31, 2017
(April 1, 2016 ～ March 31, 2017)
Net sales
521.0 billion yen (16% down from the same period of last year)
Operating income 140.5 billion yen (35% down from the same period of last year)
Ordinary income 154.6 billion yen (33% down from the same period of last year)
Net income
113.3 billion yen(29% down from the same period of last year)

3

Quarterly Changes of Consolidated Financial Results (Billions of yen)

250.0
Net sales

200.0
150.0137.6

135.8

129.5

127.6

133.2 Ordinary income
Net income

100.0
50.0

48.6
35.4

44.0
32.4

October-December
2015

January-March
2016

41.6
30.2

April-June
2016

39.7
30.0

July-September
2016

43.8
32.4

October-December
2016※ “Net income” in this Supplement means “Net income attributable to shareholders ofparent company.”8