(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, 2016
October 31, 2016
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 Six months Ended September 30, 2016 (April 1, 2016 –September 30, 2016)(1) Consolidated Results of Operations(% represents change from the corresponding previous six months period)
Net income
Six months ended
attributable to
Net
sales
OperatingincomeOrdinary
incomeSeptember 30
shareholders ofparent company
Millions of yen%

Millions of yen% Millions of yen

257,108 (26.5)
78,400 (38.4)
81,254349,969
2.1
127,341(7.9) 136,829
Note: Comprehensive income April-September 2016 ¥26,422 million
April-September 2015 ¥81,257 million
2016
2015

Six months ended
September 30

Net income per
share
Yen

%

Yen

─
─

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

1,480,317
1,307,260
1,512,895
1,334,910
Equity: September 30, 2016 ¥1,301,312 million

September 30, 2016
March 31, 2016

(Ref.)(34.5)(2.6)

Diluted net income
per share

310.33469.762016
2015% Millions of yen(40.6)
60,174(5.6)
91,903(67.5)%(23.1)%

Equity ratio
%

87.9
87.8
March 31, 2016
¥1,328,483 million

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 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 to
Net sales
Operating income
Ordinary income
incomeshareholders ofparent company per share% Millions of yen%

Yen

Fiscal period
501,900 (19.5)
134,700 (37.5)
142,200 (38.0)
104,100
Note: We have changed the forecasts of financial results from the latest ones.

Millions of yen% Millions of yen% Millions of yen(34.8)

536.86*Notes(1) Important changes in scope of consolidation during the period(Changes in certain subsidiaries requiring changes in scope of consolidation) :No(2) Application of the accounting method specific to quarterly consolidated :financial statements

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 8 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
September 30, 2016
March 31, 2016
shares2

Number of treasury stocks
September 30, 2016

3

Average number of shares during the period
April-September 2016 193,904,637
shares

10,208,182
shares

205,942,215
sharesMarch 31, 2016

11,300,237
sharesApril-September 2015

195,638,606
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 Financial
Instruments 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 these
forecasts. With regard to the forecasts of the year-end dividends for the year ending March 31, 2017, we
expect 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

2
2

(2)

Financial Position

2(3)

Financial Results Forecasts

3

2. Consolidated Quarterly Financial Statements

4(1)

Consolidated Quarterly Balance Sheet

4(2)

Consolidated Quarterly Statement of Income and Consolidated
Quarterly Statement of Comprehensive Income

5

Consolidated Quarterly Statement of Income

5

Consolidated Quarterly Statement of Comprehensive Income

6

Consolidated Quarterly Statement of Cash Flow

7

(3)
3.

Other Information

8(1)

Changes in Significant Subsidiaries during the period8(2)Adoption of Simplified and Specifically Applied Accounting
Method for Quarterly Consolidated Financial Reporting

8

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

8(4)Note on Premise of a Going Concern

8(5)Note on the Substantial Change in the Shareholders’ Equity

8(3)

Supplement to Consolidated Financial Results

191. Results of Operations and Financial Position(1) Results of Operations
The FANUC Group’s results for the second quarter (April to September 2016) are as follows.
In the FA Division, the machine tool industry (the primary market for our CNC systems) saw
vigorous movement in China thanks to increases in short-term demands, but continued to experience
severe difficulties in other Asian economies and Europe. Also, in Japan, sales continued to be sluggish.
With regard to our lasers, amid declining demand for CO2 LASER oscillators, we introduced fiber laser
oscillators to the market and focused its efforts on expanding sales. Under such circumstances, net
sales in the FA Division decreased compared with the corresponding period of the previous fiscal year.
In the Robot Division, looking at the market overseas, sales in China increased compared with thecorresponding period of the previous fiscal year. In addition, sales, particularly to the automobile
industry, remained steady in Japan. However, sales in the Robot Division decreased overall comparedwith the corresponding period of the previous fiscal year, due to a trough in facility investments in theautomobile industry, etc., in Europe and the Americas.
In the ROBOMACHINE Division, sales of ROBODRILL (small machining center) decreased
significantly as short-term IT-related demands almost went out after they were extremely favorable in
the first half of the previous fiscal year. Meanwhile, sales channels in the automobile and motorcycle
parts processing markets expanded steadily. Sales of ROBOSHOTs (electric injection molding
machine) declined slightly following stagnation in IT-related demands, but we worked to cultivate newsales channels through the market launch of two-components molding options. Sales also decreasedslightly for ROBOCUTs (wire-cut electric discharge machine); however, we strived to expand sales
through measures such as the introduction of large machines to the market.
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 adaptation to IoT through
FIELD (FANUC Intelligent Edge Link and Drive) system, and pressed forward with measures tostabilize and develop our future business.
As a result, during the first half of the current fiscal year, FANUC posted consolidated net sales
totaling ¥257,108 million, down 26.5%, consolidated ordinary income totaling ¥81,254 million,
down 40.6%, and consolidated net income totaling ¥60,174 million, down 34.5%, compared withthe corresponding period of the previous fiscal year.
Looking at the performance by business group, the FA Group posted consolidated sales
totaling ¥83,877 million, down 13.2%, the Robot Group posted consolidated sales totaling ¥88,210
million, down 4.5%, the ROBOMACHINE Group posted consolidated sales totaling ¥47,414 million,
down 60.4%, and the Service Group posted consolidated sales totaling ¥37,607 million, down
8.9%, compared with the 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 of
Income.
(2)

Financial Position① Assets, Liabilities and Net Assets

Total asset decreased ¥32,578 million to ¥1,480,317 million compared with the end of theprevious fiscal year. The main decrease is ¥51,534 million in cash and deposits.
Total liabilities decreased ¥4,928 million to ¥173,057 million compared with the end of theprevious fiscal year.
Total net assets decreased ¥27,650 million to ¥1,307,260 million from the end of the previous
fiscal year.
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 shareholder return policy weannounced on April 27, 2015. (There was no effect on the amount of total net assets.)2② Cash Flow
Cash and cash equivalents (hereinafter “cash”) for the first half of the current fiscal year amounted
to ¥780,128 million, down ¥51,534 million compared with the end of the previous fiscal year.
(Cash Flow in Operating Activities)
Cash provided by operating activities during the six months ended September 30, 2016 amounted
to ¥70,660 million, down ¥9,834 million compared with the same period of the previous fiscal year. Thisis mainly due to the decrease in income before income taxes.
(Cash Flow in Investing Activities)
Cash used in investing activities during the six months ended September 30, 2016 amounted to¥48,950 million, up ¥17,596 million compared with the same period of the previous fiscal year. This ismainly due to the increase in the purchase of property, plant and equipment.
(Cash Flow in Financing Activities)
Cash used in financing activities during the six months ended September 30, 2016 amounted to¥54,056 million, down ¥42,928 million compared with the same period of the previous fiscal year. Thisis mainly due to the decrease in cash dividends paid.

(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)

Net sales
Operating income
Ordinary income
Net income

Previous forecast(released on
July 27, 2016)

New forecast

508,800

501,900(1.4)

134,100

134,700

0.4

142,500

142,200(0.2)

103,300

104,100

0.8

Comparison with
Previous forecast (%)

Note: The currency rate applied to the period from October 1, 2016 to March 31, 2017 is averaged at 100 yen/US
dollar and 110 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’ equity
Accumulated 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

September 30, 2016

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

635,128
89,138145,000
54,237
39,685
10,14020,387
16,432(1,348)1,008,799

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

131,309
253,533
384,842
4,020

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

60,65522,002(1)
82,656
471,518
1,480,317

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

26,726
19,212
6,382
49,903102,223

68,346
3,523
71,869177,985

67,252
3,582
70,834
173,057

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

69,01496,206
1,275,828(90,500)
1,350,548

4,391

5,748

5,974
(26,085)(30,111)(24,873)(15,720)(49,236)

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

5,948
1,307,260
1,480,317

(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, 2015

Six months ended
September 30, 2016

Net sales
Cost of sales

349,969
180,378

257,108
140,812Gross profit

169,591

116,296

Selling, general and administrative expenses

42,25037,896

Operating income

127,341

78,400

1,206
865
6,030
2,102

1,121
846
5,254
973

10,203

8,194

─
715

4,449

Non-operating income
Interest income
Dividends income
Investment profit on equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Foreign exchange losses
Miscellaneous expenses
Total non-operating expenses

891

715

5,340

Ordinary income

136,829

81,254

Income before income taxes

136,829

81,254

Income taxes-current
Income taxes-deferred

45,859(1,373)23,739(2,829)Total taxes and others

44,486

20,910Net income

92,34360,344

Net income attributable to non-controlling interests

440

170

Net income attributable to shareholders of parent
company

91,90360,174

5

Consolidated Quarterly Statement of Comprehensive Income(Millions of Yen)
Six months ended
September 30, 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 six months ended
September 30
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

6

Six months ended
September 30, 2016

92,34360,344(2,688)(8,404)(1,212)

1,357(28,476)
1,212

1,218

(8,015)(11,086)(33,922)

81,257

26,422

81,260(3)

26,658(236)

(3) Consolidated Quarterly Statement of Cash Flow
(Millions of Yen)
Six months ended
September 30, 2015
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in liability related to retirement
benefits
Interest and dividend income
Equity method (income) loss
Decrease (increase) in notes and accounts
receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable – trade
Other, net
SubtotalInterest and dividend income received
Income taxes paid
Other, net
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Purchase of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7

Six months ended
September 30, 2016

136,829
10,24881,254
10,695

(513)

(110)

2,085

(60)

(2,071)(6,030)(1,967)(5,254)29,4296,041(2,791)(8,203)(14,632)

3,894

1,626
154,180
8,253(82,472)533
80,494(312)
85,9786,747(22,030)(35)
70,660(27,913)(3,441)(31,354)(48,453)(497)(48,950)(260)(96,108)(616)(96,984)(13,303)(40,510)(243)(54,056)(7,738)(19,188)(55,582)
991,236
935,654(51,534)
831,662
780,128

3.

Other Information(1) Changes in Significant Subsidiaries during the Six Months Ended
September 30, 2016(changes in specific subsidiaries that caused change in scope of
consolidation):(2)

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

None
None

(3) 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
in depreciation method due to Tax Reform 2016 (PITF No.32, June17, 2016)" effective from the first quarter of the consolidated fiscal
year under review. The depreciation method for building fixturesand structures purchased on or after April 1, 2016 has beenchanged from the declining-balance method to the straight-line
method.
The impact of this change on the profit/loss of the six months ended
September 30, 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 of treasury stock on June 8, 2016. As a result, capitalsurplus decreased by ¥2 million, retained earnings decreased by¥13,377 million, and treasury stock decreased by ¥13,379 million.

8

Supplement to Consolidated Financial Results
1 Consolidated Results(April ～ September, 2016)
1) Net income
60.2 billion yen (35% down from the same period of last year)2) Net sales

257.1 billion yen (27% down from the same period of last year)3) Operating income 78.4 billion yen (38% down from the same period of last year)
Ordinary income
81.3 billion yen (41% down from the same period of last year)
Ordinary income to net sales ratio
31.6%4) Sales by GroupFA
Robot
Robomachine
Service83.9 billion yen (13% down from the same period of last year)
88.2 billion yen (5% down from the same period of last year)
47.4 billion yen (60% down from the same period of last year)
37.6 billion yen (9% down from the same period of last year)5) Orders

269.0 billion yen (14% 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
501.9 billion yen (20% down from the same period of last year)
Operating income 134.7 billion yen (38% down from the same period of last year)
Ordinary income 142.2 billion yen (38% down from the same period of last year)
Net income
104.1 billion yen (35% down from the same period of last year)
3 Quarterly Changes of Consolidated Financial Results (Hundred Millions of yen)

Net sales
Ordinary
incomeNet income

July-September
2015

OctoberDecember 2015

JanuaryMarch 2016

April-June
2016

July-September
2016※ “Net income” in this Supplement means “Net income attributable to shareholders ofparent company.”9