(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 six months ended September 30, 2019
October 28, 2019
Company name:
FANUC CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Stock code:
6954
URL: https://www.fanuc.co.jp
Representative: (Title) President(Name) Kenji YamaguchiContact:(Title) Manager, Public Relations(Name) Keisuke Fujii
TEL: (0555)84－5555
Scheduled date of filing quarterly report: November 8, 2019
Scheduled date of commencing of dividend payments: December 2, 2019
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled
1. Consolidated Financial Results for the Six Months Ended September 30, 2019 (April 1, 2019 – September 30,
2019)(1) Consolidated Results of Operations(% represents changes from the previous corresponding Six-month period.)
Net income
Six months
ended
Net sales
Operating income
Ordinary income
attributable to owners
September 30
of parent
Millions of yen%

Millions of yen

2019
260,953(24.4)
2018344,951(0.8)
Note: Consolidated comprehensive income:Six months
ended
September 30
2019
2018

%

Millions of yen%

Millions of yen

49,024(50.2)
57,090(49.0)
40,18598,428(8.4)
112,035(5.4)
81,693
April-September 2019:¥21,593 million (75.9)%
April-September 2018:¥89,688 million (10.0)%

Net income
per share

Net income
per share(diluted)

Yen

Yen

208.91421.45%(50.8)(4.7)——(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

1,504,237
1,352,301
March 31, 2019
1,625,340
1,445,146(Reference) Equity: September 30, 2019: ¥1,345,090 million
September 30, 2019

89.4
88.5
March 31, 2019: ¥1,437,775 million

2. Dividends
Dividends per share
1st Quarter

2nd Quarter

3rd Quarter

Year-end
Dividends

Full year

Yen

Yen

Yen

Yen

Yen

FY2018598.19404.92
1,003.11——
FY2019125.35—FY2019———(forecast)
Note: We have changed the forecasts of dividends from the latest ones.
Note: The 2nd quarter-end dividends for the year ended March 31, 2019 consist of ordinary dividends of ¥252.87
and special dividends of ¥345.32.
Note: The year-end dividends for the year ended March 31, 2019 consist of ordinary dividends of ¥224.34 andspecial dividends of ¥180.58.
Note: The forecasts of year-end dividends for the year ending March 31, 2020 will be disclosed promptly upon
their availability.
3. Consolidated Financial Forecasts for the Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)(% represents changes from the previous fiscal year.)
Net income
Net income
Net sales
Operating income
Ordinary income
attributable toper shareowners of parent
Millions of yen%

Millions of yen%

Millions of yen%

Fiscal period
504,500 (20.6)
69,100 (57.7)
80,500 (56.1)
Note: We have changed the forecasts of financial results from the latest ones.

Millions of yen%

Yen

57,900 (62.4)*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

301.36(3) Changes in Accounting Principles and Accounting Estimates, and Revisions/Restatements
1. Changes associated with changes in accounting standards

:

Yes

2.

:

No

3. Changes in accounting estimates:No

4. Revisions/restatements:

No

Changes in accounting principles other than 1

Note: For details, please see “3. Other Information (3) Changes in Accounting Principles and Accounting
Estimates, and Revisions/Restatements” on Page 10 in Attachment.
(4) Number of shares outstanding (Common shares)
1.

2.

3.

Number of shares outstanding at the end of the period (including treasury stocks)
September 30, 2019 204,031,841
March 31, 2019
sharesNumber of treasury stocks
September 30, 201912,127,818
sharesAverage number of shares during the period
April-September 2019 192,359,131
sharesMarch 31, 2019

204,040,771
shares
10,210,522
sharesApril-September 2018 193,836,282
Shares＊ The report of the quarterly financial results is not subject to audit by certified public accountant or audit firm.
＊ 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 these
forecasts. The forecasts of the year-end dividends for the year ending March 31, 2020, will be disclosed
promptly upon their availability.

Table of Contents of Accompanying Documents
1. Results of Operations and Financial Position

2(1) Results of Operations

2(2) Financial Position

3(3) Financial Results Forecasts

4

2. Consolidated Quarterly Financial Statements

5(1) Consolidated Quarterly Balance Sheet

5(2) Consolidated Quarterly Statement of Income andConsolidated Quarterly Statement of Comprehensive Income

7

Consolidated Quarterly Statement of Income

7

Consolidated Quarterly Statement of Comprehensive Income

8(3) Consolidated Quarterly Statement of Cash Flow

3. Other Information

910(1) Changes in Significant Subsidiaries during the period

10(2) Adoption of Simplified and Specifically Applied Accounting
Method for Quarterly Consolidated Financial Reporting

10(3) Changes in Accounting Principles and Accounting Estimates, andRevisions/Restatements

10(4) Note on Premise of a Going Concern

10(5) Note on the Substantial Change in Shareholders’ Equity

101

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

The FANUC Group’s results for the second quarter (April to September 2019) are as follows.
In the FA Division, demands for machines in the machine tool industry, the primary market for
FANUC CNC systems, declined in the Chinse market due to the impact of the trade friction between
the United States and China, and demands for machines also dropped in Taiwan, which is heavily
dependent on the Chinese market. Demands in South Korea, as well as India which has performed
relatively solid, remained sluggish due to the weak domestic demands and other factors. In the faceof the worldwide restraining of capital investments, demands diminished in Europe and Japan aswell. With regard to our lasers, although we continued focusing efforts on expanding sales,
competition with overseas manufacturers has been intensifying. As a result, net sales in the FA
Division declined compared with the corresponding period of the previous fiscal year.
In the Robot Division, although both the automobile industry and the general industries in Japanremained robust, capital investments continued to be sluggish in the automobile industry of theAmericas and, in China and Europe, both the automobile industry and the general industries
remained cautious about capital investments. As a result, sales in the Robot Division decreased
compared with the corresponding period of the previous fiscal year.
In the Robomachine Division, sales of the ROBODRILLs (compact machining centers) decreased
compared with the corresponding period of the previous fiscal year when the short-term demand in
the IT-related industry still existed, despite our efforts to expand sales of the products mainly for
automobile parts industry. Sales of the ROBOSHOTs (electric injection molding machines) alsoslightly decreased, although we focused efforts on expanding sales mainly to automobile parts andmedical markets. With regard to the ROBOCUTs (wire-cut electric discharge machines), sales also
declined compared with the corresponding period of the previous fiscal year, mainly in the China
market.
Under these circumstances, to continue management from a long-term perspective, the FANUC
Group is promoting initiatives that allow our customers to build and maintain a highly reliable,
efficient, and innovative production system without anxiety through our products and services, byuniting as one group under the slogans “one FANUC,” “Reliable” “Predictable” “Easy to Repair,” and“Service First.” Furthermore, as IoT initiatives, we installed the FIELD system (FANUC Intelligent
Edge Link and Drive system), an open platform for manufacturing sites, at our own factories, and aremaking efforts to extend functionality and enrich applications (including those made by partnercompanies), while proceeding with the application of AI technology to our products. In addition, the2

furtherance of integration between CNC and robot as well as robot and robomachine is set out as
one of our important initiatives. At the same time, we are focusing on the enhancement of productcompetitiveness, strengthening of sales and service activities, automation and robotization offactories, and rationalization of business operations.
As a result, during the six months from April to September 2019, FANUC posted consolidated net
sales totaling ¥260,953 million, down 24.4%, consolidated ordinary income totaling ¥57,090 million,
down 49.0%, and consolidated net income totaling ¥40,185 million, down 50.8%, due to recording of
impairment loss on idle assets as an extraordinary loss and other factors, compared with thecorresponding period of the previous fiscal year.
Looking at the performance by business group, the FA Division posted consolidated sales totaling¥76,809 million, down 35.8%, the Robot Division posted consolidated sales totaling ¥98,545 million,
down 11.5%, the Robomachine Division posted consolidated sales totaling ¥40,804 million, down
40.7%, and the Service Division posted consolidated sales totaling ¥44,795 million, down 1.1%,
compared with the corresponding period of the previous fiscal year.
(Note): “Net income” in “Results of Operations and Financial Position” means “Net income
attributable to owners of parent” in the Consolidated Statement of Income.

(2) Financial Position①

Assets, Liabilities and Net Assets
Total assets were ¥1,504,237 million, down ¥121,103 million compared with the end of theprevious fiscal year.
Total liabilities were ¥151,936 million, down ¥28,258 million compared with the end of theprevious fiscal year.
Total net assets were ¥1,352,301 million, down ¥92,845 million compared with the end of theprevious fiscal year.
We cancelled our treasury shares exceeding the 5% of the total number of issued shares (8,930
shares, ¥88 million) on May 31, 2019 based on the shareholder return policy that we announced on
April 24, 2019. (This policy is written in the Consolidated Annual Financial Results for the Year
ended March 31, 2019) (There was no effect on the amount of total net assets.)②

Cash Flow
Cash and cash equivalents (hereinafter “Cash”) for the first half of the current fiscal year

amounted to ¥500,983 million, down ¥106,731 million from the end of the previous fiscal year.

3

(Cash flow from operating activities)
Cash provided by operating activities during the six months ended September 30, 2019
amounted to ¥72,963 million, down ¥46,095 million compared with the same period of the previous
fiscal year. This was mainly due to the decrease in income before income taxes.

(Cash flow from investing activities)
Cash used in investing activities during the six months ended September 30, 2019 amounted to¥52,498 million, down ¥15,546 million compared with the same period of the previous fiscal year.
This was mainly due to the decrease in the purchases of property, plant and equipment.

(Cash flow from financing activities)
Cash used in financing activities during the six months ended September 30, 2019 amounted to¥114,835 million, up ¥57,867 million compared with the same period of the previous fiscal year. Thiswas mainly due to the increase in the purchases of treasury stock.

(3) Financial Results Forecasts
It is anticipated that the situation will remain difficult and unpredictable in general, due touncertain factors such as trade policies of countries and foreign exchange fluctuations including theimpact of the trade friction between countries and regions.
The present forecast for consolidated financial results for the year ending March 31, 2020 is asfollows:
For the fiscal year 2019 (April 1, 2019 through March 31, 2020)(Millions of yen)

Net sales
Operating income
Ordinary income
Net income

Previous forecast(released on
July 29, 2019)524,200
71,30081,00060,300

New forecast
504,500
69,10080,50057,900Comparison with
Previous forecast (%)
ሺ3.8)
ሺ3.1)
ሺ0.6)
ሺ4.0)

Note: The currency rate applied to the period from October 1, 2019 to March 31, 2020 is averaged at
100 yen/US dollar and 115 yen/Euro.

4

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheet(Millions of yen)March 31, 2019

September 30, 2019

607,155
106,204
15,00071,042
55,17429,93024,302(1,123)

390,211
94,952125,000
68,314
51,95228,851
10,968(873)

907,684

769,375

Buildings

301,179

312,798

Land
Other, net

145,885
127,512

144,650
136,861574,576594,309

9,603

9,949

86,67447,259(456)

85,15745,899(452)

133,477

130,604

AssetsCurrent assets
Cash and bank deposits
Notes and accounts receivables, tradeMarketable securities
Finished goods
Work in progress
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

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

5717,656

734,862

1,625,340

1,504,237

(Millions of yen)March 31, 2019

September 30, 201936,567
15,007
8,215
75,27826,044
12,711
8,311
58,711135,067

105,777

42,097
3,030

42,136
4,023

45,127

46,159180,194

151,936

69,01496,26569,01496,265

1,380,439(91,040)

1,342,054(126,721)

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests

1,454,678

1,380,612

9,111

9,407

(6,677)(19,337)(26,947)(17,982)(16,903)(35,522)

7,371

7,211

Total net assets

1,445,146

1,352,301

1,625,340

1,504,237

Liabilities
Current liabilities
Notes and accounts payables, trade
Accrued income taxes
Warranty reserves
Other current liabilities
Total current liabilities
Long-term liabilities
Net defined benefit liability
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost

Total liabilities and net assets

6

(2) Consolidated Quarterly Statement of Income andConsolidated Quarterly Statement of Comprehensive Income
Consolidated Quarterly Statement of Income(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2019

Net sales
Cost of goods sold

344,951
196,621260,953
164,390

Gross profit

148,330

96,563

Selling, general and administrative expenses

49,90247,539Operating income

98,42849,024Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Miscellaneous income

2,016
1,014
8,068
3,136
1,488

2,059
1,008
4,888

15,722

9,569

1,284

684
485
334

Total non-operating income
Non-operating expenses
Removal expenses of noncurrent assets
Foreign exchange losses
Miscellaneous expenses－
831

Total non-operating expenses
Ordinary income
Extraordinary losses
Impairment loss

－
1,614

2,115

1,503

112,035

57,090

－

1,973

－

1,973

Income before income taxes

112,035

55,117

Income taxes-current
Income taxes-deferred

34,108(3,991)

14,20587

Total taxes and others

30,117

14,292

Net income

81,91840,825

Total extraordinary losses

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

7

225

640

81,69340,185

Consolidated Quarterly Statement of Comprehensive Income(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2019

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for using equity method

81,91840,825(1,311)296

10,813672(18,792)
1,355(2,404)(2,091)

Total other comprehensive income
Comprehensive income for the six months ended
September 30

7,770(19,232)

89,68821,59389,314374

21,56627

Comprehensive income attributable to:
Owners of parent
Non-controlling interests8(3) Consolidated Quarterly Statement of Cash Flow
(Millions of yen)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in net defined benefit liability

Six months ended
September 30, 2018

Six months ended
September 30, 2019112,035
17,86955,117
22,209

－

1,973

(214)

(222)

677

319

－

455

Other

(3,030)(8,068)56,883(6,648)(10,496)(1,647)(3,067)(4,888)9,195
2,944(9,393)
4,115

Subtotal

157,361

78,757

Interest and dividends received
Income taxes paid
Other

11,014(48,874)
(443)

9,721
(15,943)428

Net cash provided by operating activities

119,058

72,963

Other(22,510)
22,294(65,312)(2,516)(14,413)
14,228(49,432)(2,881)

Net cash used in investing activities(68,044)(52,498)(107)(57,746)885(35,769)(78,439)(627)(56,968)(114,835)

7,415(12,361)

Decrease (increase) in net defined benefit asset
Interest and dividend income
Equity in (earnings) losses of affiliates, net(Increase) decrease in receivables, trade(Increase) decrease in inventories
Increase (decrease) in payables, trade

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchases of property, plant, and equipment

Cash flows from financing activities
Purchases of treasury stock
Dividends paid
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents

1,461(106,731)

Cash and cash equivalents at beginning of period

725,903607,714

Cash and cash equivalents at end of period

727,364

500,983

Net increase (decrease) in cash and cash equivalents

93. Other Information(1) Changes in Significant Subsidiaries during the period(changes in specific subsidiaries that caused change in scope of
consolidation):

None(2) Adoption of Simplified and Specifically Applied Accounting Method
for Quarterly Consolidated Financial Reporting:None(3) Changes in Accounting Principles and Accounting Estimates, andRevisions/Restatements:(Changes in Accounting Principles)
Subsidiaries which adopt the International Financial Reporting Standards have adopted IFRS
16 Leases (hereinafter referred to as “IFRS 16”) since the three months ended June 30,
2019. As a result, lessees have recorded all leases, in principle, as assets and liabilities inthe balance sheet. The adoption of IFRS 16 is subject to transitional treatment, and thecumulative effect of the change in the accounting policy was recorded in retained earnings at
the beginning of the three months ended June 30, 2019.
The impact of the adoption of this accounting standard on the consolidated quarterly financial
statements is immaterial.

(4) Note on Premise of a Going Concern:

None(5) Note on the Substantial Change in Shareholders’ Equity:
As resolved at the Board of Directors’ meetings held on April 24 and July 29, 2019, theCompany repurchased 1,923,000 shares of its common stock. As a result, including theincrease resulting from the repurchase of shares less than one unit, its treasury stock increasedby ¥35,681 million during the six months ended September 30, 2019, and was ¥126,721 million
as of September 30, 2019.

10