FA ROBOT ROBOMACHINEANNUAL REPORT2013
Year ended March ３１, ２０１3

CONTENTS
Financial Highlights (Consolidated)
A Message from the President
Summary of FANUC BusinessBusiness Report
History of FANUC
Financial Section
Global Network

2
3
4
5
8
9
26

ANNUAL REPORT 2013 ●1

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

Millions of yen
2011

2012

2013

2013

Net sales￥446,201￥538,492￥498,395$5,302,074

Net income

120,155

138,819

120,484

1,281,745

Total assets￥1,013,000￥1,130,625￥1,219,113$12,969,287

Net assets

894,494

985,322

1,094,129

11,639,670

Years ended March 31
For the year :At the year end :U.S. dollars

Yen
Per share data:
Net income￥613.75￥709.20￥615.59$6.55

Cash dividends

184.13212.77184.681.96

Note : T he U.S. dollar amounts shown above and elsewhere in this annual report are converted from yen, forconvenience only, at the rate of ￥94 = U.S. $1.00.

Net Sales(Millions of yen)

Net Income(Millions of yen)

Total Assets(Millions of yen)

138,819

538,492
498,395

1,219,113

446,201

2011

2 ● ANNUAL REPORT 2013

1,130,625

120,484

120,155

1,013,000

2012

2013

2011

2012

2013

2011

2012

2013

A Message from the President
During the fiscal year ended March 2013, the demands for production facilities remained generally
weak in the overseas markets, mainly in Europe having debt problems and in China. Particularly inthe second half, the demands for IT related equipment decreased.
The level of demands in the Japanese market was also weak. The unfavorable export environment
caused by the strong Japanese yen, which was at a record high level, also had a serious impact on
FANUC this fiscal year. These conditions caused the business environment surrounding the FANUC
Group to be severe.
Under these circumstances, our research and development team further enhanced each productline’s technology for precision and intelligence with continued focus on high-reliability performance.
In the area of production, we continued to increase production capacity, robotization and efficiency of
our factories. Due to these actions and our all-out efforts to reduce cost and expense we continued
to strengthen our competitiveness.
In the fiscal year ended March 31, 2013, the FANUC Group posted ¥498,395 million (down 7.4％
from the previous fiscal year) in sales with ordinary income totaling ¥191,242 million (down 16.3% )and net income totaling ¥120,484 million (down 13.2% ) on a consolidated basis.
In the coming year, although the strong Japanese yen is showing signs of weakening, we anticipate
that the unpredictable situation will continue due to the downside risk of the European economy
caused by the debt problem and the uncertainty of the future of the Chinese economy. Against a
backdrop of such circumstances, the FANUC Group is committed to increasing market share andsales by strengthening its competitiveness of each product line with enhanced intelligence andprecision of products as well as increased robotization of production.
Thank you for your continued support and assistance to FANUC.

Dr. Eng. Yoshiharu Inaba, President & CEO
ANNUAL REPORT 2013 ●3

Summary of FANUC Business
FA Division
Main Products

Results for Fiscal 2012

ＣＮＣ
Servo Motors
LASER Oscillators

Consolidated sales was¥200,118 million (down 25.2％
from the previous fiscal year).
FA sales accounted for 40.2％
of consolidated sales.

Robot Division
Main Products

Results for Fiscal 2012

Genkotsu Robot
Learning Robot
Arc Welding Robot

C o nsolid ate d s ales was¥119,149 million (up 3.8 ％from the previous fiscal year).
Robot sales accounted for
23.9％ of consolidated sales.

Robomachine Division

4 ● ANNUAL REPORT 2013

Main Products

Results for Fiscal 2012

ROBODRILLROBOSHOTROBOCUTROBONANO

Consolidated sales was¥179,128 million (up 14.7％ fromthe previous fiscal year).
Robomachine sales accounted
for 35.9％ of consolidated sales.

Business Report
FA Division
The machine tool industry, the primary market for
FANUC CNC systems, faced low demand both in
the domestic and overseas markets. FANUC’s sales
substantially decreased in Asia including China after
the summer of 2012 and although a slight sign ofrecovery appeared in the beginning of the second
half of the fiscal year, the very severe sales situation
remained.
I n the field of C N Cs , the “ FA N U C S eries
30+/31+/32+/35+-MODEL B” was enhanced tosupport simultaneous 5-axis machining for faster,

Series31i-MODEL B

higher precision, and smoother machining. “FANUC
Series 0+/0+ Mate-MODEL D” introduced a flexible
setup of control axes to expand the range of themachine tools to which this CNC model can beapplied. “FANUC Power Motion +-MODEL A” forgeneral industrial machinery is expected to widen its
application within the packaging industry withenhanced multi-axis and high speed operation andfast response coordinated control features.
FANUC developed new models and new functions,
including the development of the SERVO MOTOR β+F series utilizing ferrite magnets, enhancement of
the output of the SPINDLE MOTOR α+I series, andαiⅠ SPINDLE MOTOR

the addition of a higher speed model to the
SYNCHRONOUS BUILT-IN SERVO MOTOR D+S
series.
For FANUC LASER products, sales remained weak
both in the domestic and overseas markets.

Newdevelopments included enhancement of control
features such as upgrading of the power saving
functions of the high-performance, high-functionality,
high-reliability CO2 laser oscillator.
FANUC LASER C4000i-MODEL C

ANNUAL REPORT 2013 ●5

Robot Division
The robot business stayed strong in the Americanand domestic markets, mainly within the automobile
industry. The European and Asian markets wereweak.
In the field of development, “Learning Robot,”which realizes faster motion by suppressing
vibration, was upgraded to achieve higher optimum
speed, by taking into consideration the available
torque of the robot motors, life of reducers, and othercritical factors. These upgrades enabled the
Learning Robot to increase production capability
substantially where this innovative feature is applied.
The “Bin-picking Robot” achieved faster operations

Learning Robot

with the newly developed 3D area sensor.
“Genkotsu Robot,” which is used in applications
requiring ultra high speed transfer and assembly,
added faster variants and new models. Genkotsu
Robot will be promoted in a wide variety of industries
including parts machining, food, and pharmaceuticalindustries requiring sorting and packing.
In addition, many new robots and new features
were developed including the “Multi-Purpose Mini
Robot LR Mate 200+D,” a replacement for LR Mate
2 0 0 +C w i t h s i g n i f i c a n t l y i m p r o v e d m o t i o n

Genkotsu Robot M-2iA

performance.

LR Mate 200iD

6 ● ANNUAL REPORT 2013

Robomachine Division
The demand for ROBODRILL suddenly dropped in
the overseas markets, especially in China. With theintroduction of newly developed higher output
models, however, ROBODRILL has been expanding
its market including automotive part machining.
With this improvement overall demand has
recovered. In the years to come it is expected themodels with higher output, higher precision, andlower prices will allow ROBODRILL to be sold to awider market.
The demand for the ROBOSHOT product line (allelectric plastics injection molding machine) in theAmerican and European markets was stable andrecovered to previous levels. New developmentsallow high quality molding by using high precisionclamp specification and ultra high speed injection
specification, targeting IT devices such as advanced
specification mobile phones.

FANUC ROBODRILL

D21MiA5FANUC ROBOSHOT

S100iAFANUC ROBOCUT

C600iAFANUC expanded the market for ROBOCUT (wirecut electric discharge machines) with focus on the
medical equipment field in the United States and the
diamond tool machining field in Europe and Japan.
New developments in ROBOCUT product line
included further advancements of automatic wire
feeding function and high-precision cutting control.
Regarding ROBONANO (ultra precision nanomachine), orders for contract machining steadily
increased. FANUC will use this position to develop
the market for ROBONANO products, both
domestically and overseas.

FANUC ROBONANO

0iB

ANNUAL REPORT 2013 ●7

History of FANUC
1972

FANUC CORPORATION was founded.
CNC was introduced.
NC drill was developed.

1974

Robots were developed and installed in FANUC's factories.

1975

Wire-cut electric discharge machine was developed.

1977

FANUC USA CORPORATION was established.

1978

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

1982

GMFanuc Robotics Corporation was jointly established in the U.S.A. by FANUC andGeneral Motors.
FANUC AC servo motor was developed.

1984

Upon completion of the new Head Office, the CNC Factory, the Injection Molding
Machine Factory and the Basic Research Laboratory, the Headquarters were transferredto the foot of Mr. Fuji.
The fully electric plastic injection molding machine, FANUC AUTOSHOT, wasdeveloped.

1985

FANUC Series 0 was developed.

1986

The Central Technical Center, the Robot Assembly Factory and the Production
Technology Laboratory were constructed in the Headquarters area.
FANUC TAIWAN LIMITED was established.
GE Fanuc Automation Corporation was jointly established by FANUC and General
Electric.

1989

The Tsukuba Factory was constructed.

1992

GMFanuc Robotics Corporation was restructured to FANUC's wholly owned shareholding 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 of the Ministry of Machinery Industry of China.

1997

Shanghai-FANUC Robotics CO., LTD. was jointly formed in China by FANUC andShanghai Mechanical & Electric Industrial Investment Corp.
The new Servo Motor Factory was completed.

2009

The joint venture with General Electric Company was dissolved.
FANUC FA AMERICA CORPORATION and FANUC FA Europe S.A. were formed.

2011

The new Robot Factory and the new Robot Part Machining Factory were completed.

2012

The European subsidiaries were restructured and integrated to FANUC Europe
Corporation.

2013

The American subsidiaries were restructured and integrated to FANUC America
Corporation.

Sales(Hundred Millions of Yen)
6,000

5,000

4,000

3,000

2,000

1,000

72

74

76

8 ● ANNUAL REPORT 2013

78

80

82

84

86

88

90

92

94

96

98

00

02

04

06

08

10

12

0

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

24

NON-CONSOLIDATED BALANCE SHEETS

25

ANNUAL REPORT 2013 ●9

Ten-Year Financial SummaryYears ended March 31,

2004

2005

2006

2007

￥264,832￥330,345￥381,074￥419,560

85,931

120,210140,589

162,930

Operating income as a percentage of net sales

32.4%

36.4%

36.9%

38.8%

Income before income taxes and minority interests

89,997

124,774

150,832

179,412Net income

57,31375,76490,438

106,756

Current assets

539,369

556,638

637,566

675,944

Current liabilities

61,424

81,671

82,433

100,810

Total assets

758,651

799,575

903,410

951,664

Net assets

676,823

696,988795,228

820,556254.62339.09420.01499.83

−

−

−

−

23.00

45.00

96.00

150.003,004.04

3,167.70

3,614.17

3,816.91

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 convenienceat the rate of ￥94 = U.S. $1.00.

10 ● ANNUAL REPORT 2013

Millions of yen
except for per
share data

except for per share data

Thousands of
U.S. dollars,

2008

2009

2010

2011

2012

2013

2013

￥468,399￥388,271￥253,393￥446,201￥538,492￥498,395$5,302,074

189,564

134,449

55,024

189,757

221,834

184,821

1,966,181

40.5%

34.6%

21.7%

42.5%

41.2%

37.1%

37.1%

211,875

149,148

55,826

193,495

228,578

191,2422,034,489

127,030

97,16237,511

120,155

138,819

120,484

1,281,745

750,328

683,719

623,573

753,992

848,669

906,440

9,642,979

104,151

55,72556,18889,589115,270

92,973

989,074

1,046,837

970,441

891,651

1,013,000

1,130,625

1,219,113

12,969,287

911,395

893,282

812,657

894,494

985,322

1,094,129

11,639,670

611.14467.55187.75613.75709.20615.59

6.55

−

−

−

−

−

−

−

183.35140.2756.33

184.13212.77184.681.96

4,225.39

4,177.28

4,133.89

4,550.71

5,013.69

5,565.64

59.21

only,

ANNUAL REPORT 2013 ●11

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

Millions of yen

Years ended March 31,
Net sales
Cost of goods sold (Note 8)
Gross profit
Selling, general and administrative expenses (Note 8)
Operating income
Other income (expenses):
Interest income
Equity in earnings (loss) of affiliates
Other, net (Note 9)2011￥446,201
208,076
238,125
48,368
189,7572012￥538,492
262,120
276,372
54,538221,834

2013￥498,395
258,670
239,725
54,904
184,8212013$5,302,074
2,751,808
2,550,266
584,085
1,966,181

1,466
3,126
1,085
5,677

1,912
3,499
1,333
6,744

1,952
2,932
1,537
6,421

20,766
31,191
16,35168,308−−−228,578

191,2422,034,489

92,831
69,133（3,695）
1,120
139,442
120,989623
505￥138,819 ￥120,484

735,457
11,915
1,287,117
5,372$1,281,745

Extraordinary income (loss) oss on adjustment for changes of accountingLstandard for asset retirement obligations
Income before income taxes and minority interests
Income taxes :Current
DeferredIncome before minority interests
Minority interests in income of consolidated subsidiaries
Net income（1,939）193,495
77,319（4,638）120,814659￥120,155

Amounts per share of common stock:
Net income
Cash dividends
See notes to the consolidated financial statements.

12 ● ANNUAL REPORT 2013

U.S. dollars(Note 3)

Yen

￥613.75
184.13￥709.20212.77￥615.59
184.68$6.55
1.96

Consolidated Statements of Comprehensive Income
Thousands of
U.S. dollars

Millions of yen

Years ended March 31,
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
 hare of other comprehensive income of affiliatesS
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:owners of parent
minority interests

2011￥120,8142012￥139,442

2013￥120,989

2013$1,287,117（62）（12,469）（390）（6,504）982
24,683

10,447
262,585（1,067）42

2,033

21,628（6,852）
27,698￥132,590 ￥148,687

294,660$1,581,777（13,598）
107,216
106,751465

132,074516

147,644
1,043

1,570,681
11,096

ANNUAL REPORT 2013 ●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 10)
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)
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 :2012 - 43,779,591 shares2013 - 43,796,678 shares
Total shareholders' equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

See notes to the consolidated financial statements.
14 ● ANNUAL REPORT 2013

Thousands of
U.S. dollars(Note 3)

2012

2013

2013

￥637,076￥727,753$7,742,053

98,717（1,736）
41,874
34,058
10,667
19,822
8,191
848,669
33,43581,318（1,628）37,05327,724
7,407
19,035
7,778
906,440
39,105865,085（17,319）394,181294,936
78,798
202,500
82,7459,642,979
416,010

114,779
193,824
119,998
7,536（200,374）
235,763

116,452
214,329
125,631
21,889（213,480）
264,8211,238,851
2,280,096
1,336,500
232,862（2,271,064）
2,817,245

12,326432
12,758￥1,130,625

8,286
461
8,747
￥1,219,113

88,1494,904
93,053$12,969,287￥30,196
50,1554,590
30,329115,270￥22,044
30,637
4,937
35,35592,973$234,511
325,925
52,521
376,117
989,074

26,4993,534
30,03328,172
3,839
32,011

299,70240,841
340,543

69,01496,265
1,180,556

69,01496,268
1,261,572

734,192
1,024,128
13,420,979−（311,394）
1,034,441−（311,636）
1,115,218−（3,315,278）
11,864,021

1,959（55,077）（53,118）
3,999
985,322￥1,130,625

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

31,287（307,436）（276,149）
51,798
11,639,670$12,969,287

Consolidated Statements of Changes in Net Assets
Millions of yen

Balance at March 31,2010
Net income
Cash dividends
Purchase of treasury stock
Disposal of treasury stock
Change of scope of
consolidation
Net change during the year
Balance at March 31,2011
Net income
Cash dividends
Purchase of treasury stock
Disposal of treasury stock
Change of scope of
consolidation
Net change during the year
Balance at March 31,2012
Net income
Cash dividends
Purchase of treasury stock
Disposal of treasury stock
Net change during the year
Balance at March 31,2013

Valuation
Foreigndifference on
currency
available-for- translation
sale securities adjustment

Treasurystock,
at costCommonstock

CapitalsurplusRetainedearnings￥69,014￥96,259￥987,685 （￥310,604）￥2,411（￥35,381）

Minority
interests￥3,273

120,155

120,155（25,194）
（495）

（495）

5

7

351

351

￥96,261 ￥1,082,997 （￥311,094）（62）（13,342）417（12,987）￥2,349（￥48,723）￥3,690￥894,494

138,819

138,819（41,566）（41,566）
（304）

4

（304）

4

8

306
￥69,014306￥96,265 ￥1,180,556 （￥311,394）（390）（6,354）309（6,435）￥1,959（￥55,077）￥3,999￥985,322

120,484

120,484（39,468）（39,468）（246）

3￥69,014￥812,657（25,194）2￥69,014Total
net assets

（246）

4

￥96,268 ￥1,261,572 （ ￥311,636）

7
982

26,178￥2,941（￥28,899）

870

28,030￥4,869 ￥1,094,129* Adjustment of retained earnings is due to change in accounting standards of foreign equity methods

Thousands of U.S. dollars (Note 3)

Balance at March 31,2012
Net income
Cash dividends
Purchase of treasury stock
Disposal of treasury stock
Net change during the year
Balance at March 31,2013

Commonstock

Capitalsurplus

Valuation
Foreigndifference on currency
available-for- translation
sale securities adjustment

Minority
interests

Total
net assets$734,191$1,024,096 $12,559,106 （$3,312,702） $20,840 （$585,925）$42,543$10,482,149

Retainedearnings

32

Treasurystock,
at cost1,281,745

1,281,745（419,872）（419,872）（2,617）（2,617）42

74
10,447$734,191

278,489

9,255

298,191$1,024,128 $13,420,979 （$3,315,277） $31,287 （$307,436）$51,798$11,639,670

See notes to the consolidated financial statements.

ANNUAL REPORT 2013 ●15

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

Millions of yen

Years ended March 31,
2011
Cash flows from operating activities
Income before income taxes and minority interests￥193,495
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities:
Depreciation and amortization
13,321
Provision for allowance for doubtful accounts
251
Provision for allowance for employees' retirement benefits
2,891Interest and dividend income（1,999）Equity in earnings of affiliates, net（3,126）
Decrease (increase) in receivables, trade（21,247）
Decrease (increase) in inventories（20,208）(Decrease) increase in payables, trade
6,560
Other
（2,543）
Cash generated from operations
167,395
Interest and dividends received
2,836
Income taxes paid
（48,946）
Other
1,053
Net cash provided by operating activities
122,338
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of investment securities
Purchase of investments in subsidiaries
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 andcash 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
Cash and cash equivalents at end of year
See notes to the consolidated financial statements.

16 ● ANNUAL REPORT 2013

2012

2013

2013

￥228,578￥191,242$2,034,489

15,466
17,867
30
（865）
1,433
1,401
（2,563） （2,767）（3,499） （2,932）（19,282）
20,004（16,521）
19,9489,501 （10,021）
10,1398,751
223,282242,628
4,063
4,495（84,218） （88,735）
1,096
460
144,223
158,848

190,074（9,202）
14,904（29,436）（31,192）
212,809212,213（106,606）
93,096
2,581,149
47,819（943,989）
4,893
1,689,872（7,070）−（1,360）−1,614（6,816）（43,959） （44,445）
2,277
−
−
−
−
5
（415）
476
（42,097） （43,964）（472,819）
−
−
53
5,064
（467,702）（513）（25,198）（48）（25,759）

（295）
（240）
（41,551） （39,426）
（206）
（172）
（42,052） （39,838）（2,553）（419,425）（1,830）（423,808）（7,106）（3,931）

15,636

166,340

82,657499,140
1,689

56,143
583,486（2,560）90,682
637,069−

964,702
6,777,330−￥583,486￥637,069￥727,751$7,742,032

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") areprepared on the basis of accounting principles generally
accepted in Japan, which are different in certain respects
as to the application and disclosure requirements ofInternational Financial Reporting Standards, and havebeen compiled from the consolidated financial statements
prepared by the Company as required by the Financial
Instruments and Exchange Law of Japan.
In addition, the notes to the consolidated financial
statements include information which is not required underaccounting principles generally accepted in Japan but ispresented herein as additional information.
In preparing the accompanying 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(a) Principles of consolidationin the consolidated statements of income.
Assets and liabilities of the consolidated subsidiaries
outside Japan are translated into Japanese yen at theapplicable year-end rates except for shareholders' equity
which is translated at the historical rates. Differences
arising from translation are reflected as "Foreign currencytranslation adjustments" in a separate component of net
assets. Income and expense accounts are translated at
the average rates for the year.

(d) Valuation of securities

Securities other than investments in affiliates areclassified as available-for-sale securities ("Other
securities") and include securities other than trading
securities and securities held to maturity. Other securities
whose fair value is readily determinable are stated at fairvalue with the corresponding unrealized gain or loss, netof taxes, recorded directly as a separate component of net
assets. Other securities whose fair value is not readily
determinable are stated at moving average cost. The costof other securities sold is calculated by the moving
average method.

(e) Allowance for doubtful accounts

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

The consolidated financial statements include theaccounts of the Company and, with minor exceptions, thesubsidiaries under its control. Intercompany accounts andsignificant intercompany transactions have been
eliminated in consolidation.
The investments in unconsolidated subsidiaries andaffiliated companies on which the Company exerts
substantial influence are, with minor exceptions, stated attheir underlying equity value.
The excess of cost over the underlying net assets at thedates of investment in the subsidiaries is amortized over a
period of five years.

(f) Inventories(b) Cash equivalents

Property, plant and equipment, including significant
renewals and additions, is stated at cost.
Depreciation is computed principally by the decliningbalance method at rates based on the estimated useful
lives of the respective assets which vary according to
general classification, type of construction, and use.
Maintenance and repairs, including minor renewals andimprovements, are charged to income as incurred.

The Group considers all highly liquid investments with amaturity of three months or less when purchased to be
cash equivalents.

(c) Translation of foreign currency
accounts

All monetary receivables and payables denominated inforeign currencies are translated into Japanese yen at theexchange rates in effect at the balance sheet date.
Foreign exchange gain or loss on translation is recognized

Raw materials and purchased components are statedprimarily at cost determined by the most recent purchaseprice method.
Work in progress is stated at actual cost which includes
direct costs for materials and labor and overhead
manufacturing costs including depreciation.
Finished goods are stated principally at cost (thevaluation method) by the average method.

(g) Property, plant and equipment anddepreciation(h) Warranty reserves

The Group provides warranty reserves for goods soldunder warranty agreements. Estimates for these warranty

ANNUAL REPORT 2013 ●17

reserves are based primarily on historical experience. In
addition, they are calculated with reference to current
information concerning specific issues.

(i) Retirement benefits

The allowance for employees' retirement benefits isprovided principally at an amount based on the retirement
benefit obligation and the fair value of the plan assets.
Prior service cost is being amortized as incurred by thestraight-line method over a period (10-12 years) which isshorter than the estimated average remaining years ofservice of the eligible employees. Actuarial gain or loss isamortized in the year following the year in which the gainor loss is recognized primarily by the straight-line method
over a period (10-12 years) which is shorter than theestimated average remaining years of service of theeligible employees.

(j) Revenue recognition

In general, sales of products, other than those exported,
are recognized in the accounts upon acceptance by thecustomers. Export sales are recognized as of therespective dates of shipment.

(k) Income taxes

Deferred income taxes are provided by the asset andliability method. Deferred income tax assets and liabilities
are determined based on the temporary differences
between 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 reverse.

(l) Net income per share

Net income per share is calculated based on the net
income available for distribution to shareholders ofcommon stock and the weighted-average number ofshares of common stock outstanding during the year.

(m) Shareholders' equity

The Corporation Law of Japan provides that an amountequal to 10 % of the amount to be disbursed as
distributions of capital surplus (other than the capitalreserve) and retained earnings (other than the legal
reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserveand the legal reserve equals 25 % of the capital stock
account. Such distributions can be made at any time byresolution of the shareholders, or by the Board of Directors
if certain conditions are met.

18 ● ANNUAL REPORT 2013

3. U.S. dollar amounts
The Company and its domestic consolidated
subsidiaries maintain their books of account in yen. The
U.S. dollar amounts included in the accompanying
consolidated financial statements and the notes thereto
represent the arithmetic results of translating yen into
dollars at \94 = U.S. $1.00, the approximate rate ofexchange prevailing on March 31, 2013.
U.S. dollar amounts are presented solely for theconvenience of the reader and the translation is notintended to imply that assets and liabilities which originate
in yen have been or could readily be converted, realized or
settled in U.S. dollars at the above or any other rate.

4. Financial instruments
Basic policy to manage financial instruments and relatedrisk(1) Group policy for financial
instruments

The Company and its consolidated subsidiaries rely on
their own resources to finance operations,and do not enter
into any derivative contracts.

(2) Nature and extent of risks arisingfrom financial instruments

Receivables such as trade notes and trade accounts are
exposed to customer credit risk and receivables in foreign
currencies are exposed to the market risk of fluctuation inforeign currency exchange rates. Investment securities,
which consist of stocks in companies with business
relationships, are exposed to the risk of market pricefluctuations.
Payables such as trade notes and trade accounts are
due within one year.

(3) Risk management for financial
instruments(I) Management of credit risk
The Group monitors due dates and manages balancesof receivables by customer on the basis of internal
guideline and periodically checks credit risks of key
customers taking into account their financial position andother factors.
(ii) Management of market risk
The Group regularly monitors the market price and thefinancial condition of the issuer in respect to its securities
and continuously reconsiders investment in each company,
taking into account its relationship with the counterparty.

5. Other securities and investments
Other securities whose fair value was determinable at March 31, 2012 and 2013 are summarized as follows:
2012

Millions of yen

Type ofsecurities
Other securities
with unrealized gain
Other securities
with unrealized loss
Total

Equity securities
Subtotal
Equity securities
Bonds
Subtotal

Book value
reflected in thebalance sheet

Acquisition
cost

Net

￥5,032
5,032
469
75
544
￥5,576￥2,788
2,788
511
75
586
￥3,374￥2,244
2,244
（42）
−
（42）
￥2,202

2013

Millions of yen

Type ofsecurities
Other securities
with unrealized gain
Other securities
with unrealized loss
Total

Equity securities
Subtotal
Equity securities
Bonds
Subtotal

Book value
reflected in thebalance sheet

Acquisition
cost

Net

￥6,459
6,459
18
82
100
￥6,559￥3,280
3,280
19
82
101
￥3,381￥3,179
3,179
（1）
−
（1）
￥3,1782013

Thousands of U.S. dollars

Type ofsecurities
Other securities
with unrealized gain
Other securities
with unrealized loss
Total

Equity securities
Subtotal
Equity securities
Bonds
Subtotal

Book value
reflected in thebalance sheet

Acquisition
cost

Net

$68,71368,713
192
872
1,064
$69,777$34,894
34,894
202
872
1,074
$35,968$33,819
33,819（10）−（10）$33,809

Available-for-sale securities sold during the fiscal years ended March 31, 2012 and 2013 are assumed
insignificant.
Investments at March 31, 2012 and 2013 consisted of the following:
Millions of yen

Investments in affiliates
Other securities
Allowance for doubtful accounts
Other
Total

2012
￥20,983
5,652
（646）
7,446
￥33,435

2013￥25,144
6,635
（1）
7,327
￥39,105

Thousands of
U.S. dollars

2013$267,489
70,585（11）
77,947$416,010

ANNUAL REPORT 2013 ●19

6. Retirement benefits
The Group has defined benefit pension plans: the Company has the FANUC Pension Fund as a supplement
to the public Welfare Pension Fund Plan and the Group, except for certain subsidiaries, has lump-sum
severance indemnity plans.
The table below sets forth the plans' funded status and the amounts recognized in the consolidatedbalance sheets at March 31, 2012 and 2013:

Thousands of
U.S. dollars

Millions of yen

2012
2013
2013
（￥102,245）（￥111,128） （$1,182,213）
76,30883,921
892,777（25,937） （27,207）（289,436）
3,479
1,922
20,447（1,377） （1,064）（11,319）（￥23,835） （￥26,349）（$280,308）
2,664
1,823
19,394（￥26,499） （￥28,172）（$299,702）

Projected benefit obligation
Plan assets at fair value
Projected benefit obligation in excess of plan assets
Unrecognized net actuarial loss
Unrecognized past service cost
Subtotal
Prepaid pension cost
Allowance for employees' retirement benefits

Pension costs related to the plans for the years ended March 31, 2011, 2012 and 2013, are as follows:
Millions of yen

Current service cost
Interest cost
Expected return on plan assets
Amortization of net actuarial loss
Amortization of past service cost
Net pension cost2011
￥3,091
2,132（1,478）
1,383（505）￥4,6232012￥2,9682,316（1,239）1,318（364）￥4,9992013￥3,3902,560（1,361）967（309）￥5,247

Thousands of
U.S. dollars

2013$36,064
27,234（14,478）
10,287（3,288）$55,819

The Group's assumptions for the years ended March 31, 2011, 2012 and 2013, which were used indetermining the pension costs and the allowance for employees' retirement benefits shown above, are as
follows:

Discount rates
Expected rates of return on plan assets
Method of allocation of retirement benefit cost
Period for amortization of past service cost
Period for amortization of actuarial loss

20 ● ANNUAL REPORT 20132011
2.0%～ 6.14%
1.5%～ 5.5%
Flat allocation
10 ～ 14 years
10 ～ 14 years

2012
2.0%～ 5.84%
1.5%～ 3.0%
Flat allocation
10 ～ 13 years
10 ～ 13 years

2013
2.0%～ 4.81%
1.5%～ 3.0%
Flat allocation
10 ～ 12 years
10 ～ 12 years

7. Contingent liabilities
Contingent liabilities with respect to guarantees for employees' mortgage loans with banks at March 31, 2012
and 2013 amounted to ￥167 million and ￥132 million (U.S. $1,404 thousand), respectively.

8．Research and development expenses
Research and development expenses charged to manufacturing costs and selling, general and administrative
expenses for the years ended March 31, 2011, 2012 and 2013 are summarized as follows:
Millions of yen

2011￥15,543

2012￥20,478

2013￥20,148

Thousands of
U.S. dollars

2013$214,340

9．Other income (expenses)-Other, net
Other, net for the years ended March 31, 2011, 2012 and 2013 consisted of the following:
Millions of yen

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

2011
￥533
（478）
（455）
（530）
2,015
￥1,085

2012
￥651
（185）
（600）
−
1,467
￥1,333

2013
￥815
（281）
34
−
969
￥1,537

Thousands of
U.S. dollars

2013$8,670（2,989）362−
10,308$16,351

ANNUAL REPORT 2013 ●21

10．Income taxes
Net deferred tax assets at March 31, 2012 and 2013 are summarized as follows:
Millions of yen

2012

2013

Thousands of
U.S. dollars

2013

Deferred tax assets:
Allowance for employees' retirement benefits
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￥8,807
7,357
4,690
3,328
1,146
10,26335,591（1,157）34,434￥9,234
6,514
5,553
1,895
1,146
12,03736,379（1,157）35,222$98,234
69,29859,074
20,16012,192
128,053
387,011（12,309）374,702

Deferred tax liabilities:
Undistributed earnings of affiliated companies
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)（8,875） （10,270）（3,032） （2,836）（11,907） （13,106）￥22,527￥22,116（109,256）（30,169）（139,425）$235,277

For the years ended March 31, 2011, 2012 and 2013, a reconciliation of the statutory income tax rate to
the effective income tax rate was as follows:

Japanese statutory income tax rate
Tax exemption
Dividend income not taxable
Tax rate difference of foreign subsidiaries
Elimination of dividends received
Loss associated with the dissolution of joint venture
amortization of goodwill
Equity in earnings of affiliates
Undistributed earnings of affiliated companies
Other
Effective income tax rate

2011
40.0%
（1.1）
（0.8）
（1.7）
0.8
−
0.9
（0.6）
（0.3）
0.4
37.6%

2012

−
−
−
−
−
−
−
−
−
−
−

2013

−
−
−
−
−
−
−
−
−
−
−

Note: The notes to the current consolidated Financial Statements do not refer to the difference between theJapanese statutory income tax rate and the effective tax rate, as it is not more than five hundredths of thestatutory income tax rate.

22 ● ANNUAL REPORT 2013

11．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 are used in automatedproduction systems.
FANUC Group uses CNC’s and servo motors in its entire products. For this reason, the decision is made,taking the status of orders, sales and production of all products, in addition to the status of particular products.
As mentioned above, FANUC Group runs only one business segment based on the decision that the entire
group makes for investment. Thus, the segment information is not stated herein.
(Additional Information)
Since the current fiscal year, “Accounting Standard on Disclosure of Segment Information” (Statement of
Financial Accounting Standard No. 17, effective March 27, 2009) and “Implementation Guidance for
Accounting Standard on Disclosure of Segment Information” (Statement of Implementation Guidance forFinancial Accounting Standard No. 20, effective March 21, 2008) have been applied.

Relevant Information
Information by product and service
Millions of yen

Net sales:Unaffiliated customers
FA
ROBOT
ROBOMACHINE
Total

2011
￥247,667￥77,989￥120,545￥446,2012012￥267,585￥114,785￥156,122￥538,492

2013￥200,118￥119,149￥179,128￥498,395

Thousands of
U.S. dollars

2013$2,128,915$1,267,542$1,905,617$5,302,074

Information by region
Millions of yen

Net sales:Unaffiliated customers
Japan
America
Europe
Asia
Other
Total

2011
￥110,588￥59,150￥49,845￥224,528￥2,090￥446,2012012￥126,780￥75,398￥65,771￥268,124￥2,419￥538,492

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

Thousands of
U.S. dollars

2013$1,140,564$897,170$585,649$2,657,266$21,425$5,302,074

12．Derivatives
The Group does not enter into any derivative contracts.

13．Related-party transactions
No related-party transactions were recorded for the years ended March 31, 2012 and 2013.

ANNUAL REPORT 2013 ●23

NON-CONSOLIDATED STATEMENTS OF INCOME
Millions of yen

Years ended March 31,
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income

Other income (expenses):
Interest income
Dividend income
Other, net

Extraordinary income(loss) :Income associated with the dissolution of
joint ventureLoss on adjustment for changes ofaccounting standard for asset retirement
obligations
Income before income taxes
Income taxes:
Current
Deferred
Net income

Net income per share of common stock:Thousands of
U.S. dollars

2011￥379,933
187,570
192,363
23,487
168,8762012￥464,108
233,739
230,369
29,862200,5072013￥407,289
216,747
190,542
27,921
162,621

236
4,246
634
5,116

166
22,646
1,324
24,136

212
8,597
972
9,781

2,255
91,458
10,340104,053

−

−

−

−

（1,939）−−−172,053

224,643

172,402

1,834,064

68,784（2,736）
66,048￥106,005

83,284（662）
82,622￥142,021

60,881
339
61,220￥111,182

647,670
3,607
651,277$1,182,787￥568.06

U.S. dollars$6.04￥541.47

Yen￥725.57

2013$4,332,862
2,305,819
2,027,043
297,032
1,730,011

Note: The U.S. dollar amounts are converted from yen, for convenience only, at the rate of ￥94 = U.S. $1.00.

24 ● ANNUAL REPORT 2013

NON-CONSOLIDATED BALANCE SHEETSMillions of yen

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

Thousands of
U.S. dollars

2012

2013

2013

￥528,518￥587,931$6,254,585

59,226
18,553（806）
52,057
9,998
5,846
673,392

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

407,287
168,755（5,734）
421,575
92,46853,255
7,392,191

108,713
10,293
5,695
124,701

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

1,154,670
119,841
70,883
1,345,394

106,117
176,745
109,774
6,444
399,080（185,491）
213,589311￥1,011,993

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

1,136,553
2,065,404
1,206,798
231,234
4,639,989（2,081,808）
2,558,181
2,851$11,298,617￥24,760
846
12,983
46,3882,084
2,331
89,392￥16,684578
16,30528,061
1,970
2,284
65,882$177,489
6,149
173,457
298,521
20,95824,298700,872

24,3002,768
27,06825,403
2,796
28,199270,245
29,745299,99069,014
96,117
1,039,837（311,394）
893,574

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

734,191
1,022,543
11,825,011(3,315,277)
10,266,468

1,959
895,533￥1,011,993

2,941
967,989¥1,062,070

31,287
10,297,755$11,298,617

ANNUAL REPORT 2013 ●25

Global Network

FANUC CORPORATION(Headquarters)
Oshino-Mura, JapanFANUC Europe

The Grand Duchy of Luxembourg

BEIJING-FANUC
Beijing, China

26 ● ANNUAL REPORT 2013

SHANGHAI-FANUC Robotics
Shanghai, China

FANUC America
Detroit, U.S.A.

KOREA FANUC
Changwon, Korea

FANUC INDIA
Bangalore, India

TAIWAN FANUC FA
Taichung, Taiwan

ANNUAL REPORT 2013 ●27

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