ロボット ロボマシン

ANNUAL REPORT 2019Year ended March 31, 2019

FANUC’s Symbol “Keyaki” – Zelkova tree

CONTENTS
Financial Highlights (Consolidated)･････････････2
A Message To Our Shareholders･･･････････････3
Summary of FANUC Business･･････････････････4
Business Report･･･････････････････････････････5
Management Policy･･･････････････････････････9
History of FANUC･･･････････････････････････ 10
Corporate Governance･･････････････････････ 11
Financial Section････････････････････････････ 13
Global Service Network･････････････････････ 36

Forward-looking statements
Statements contained in this report that relate to the future operating activities, business performance, events or conditions of
FANUC are forward-looking statements. Forward-looking statements are based on judgments made by FANUC’s management
based on information available at the time of publishing this report and are subject to significant assumptions. As such, theseforward-looking statements are subject to various risks and uncertainties and actual business results may vary substantially fromthe forecasts expressed or implied in forward-looking statements. Accordingly, you are cautioned not to place undue relianceon forward-looking statements. FANUC disclaims any obligation to revise forward-looking statements in light of new information,
future events or other findings.

1

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

Millions of yen

Years ended March 31

2017

2018

2019

2019

¥ 536,942¥ 726,596¥ 635,568$ 5,725,838

127,697

181,957

154,163

1,388,856

Total assets¥1,564,769¥1,728,227¥1,625,340$14,642,703

Net assets

1,369,457

1,467,630

1,445,146

13,019,333

For the year:
Net sales
Net income attributable to owners of parent
At the year end:

Yen

U.S. dollars

Per share data:
Net income¥Cash dividends

658.63¥

395.18938.66563.20¥

795.34$

7.17

1,003.11

9.04

Note : The U.S. dollar amounts shown above and elsewhere in this annual report are converted from yen, for convenience only, atthe rate of ¥111 = U.S.$1.00.

Net Sales

Net income attributable to owners of parent(Millions of yen)

1,728,227

635,568
536,942

2(Millions of yen)

181,957

726,5962017

Total Assets(Millions of yen)

154,163

1,564,769

2019

2017

1,625,340

127,697

2018

2019

2017

2018

2018

2019

FANUC CORPORATION ANNUAL REPORT 2019

A Message To Our Shareholders

During this period, although demands were generally solid at the beginning of the period, we found ourselves in a very difficult situation
mainly in the latter half of the period, due primarily to the impact of the trade friction between the United States and China, and the plunge inthe short-term demand in the Chinese IT-related industry, which was robust in the previous fiscal year.
Under these circumstances, the FANUC Group promoted initiatives that allow our customers to build and maintain a highly reliable, efficient, andinnovative production system without anxiety through our products and services, by uniting as one group under the slogans “one FANUC,” “Reliable” “Predictable” “Easy to Repair,” and “Service First.” Furthermore, we made efforts, as IoT initiatives, to spread the FIELD system (FANUC Intelligent Edge Link and Drive system), an open platform in which various companies can participate, with enhancement of functions and enrichmentof applications (including those made by partner companies), while proceeding with the application of AI technology to our products.
During the fiscal year ended March 31, 2019, FANUC posted consolidated net sales totaling ¥635,568 million, down 12.5%, consolidated operating income totaling ¥163,297 million, down 28.9%, and consolidated net income totaling ¥154,163 million, down 15.3%, compared with theprevious fiscal year. In addition, profit from the return to the welfare fund agency of ¥25,081 million has been recorded as extraordinary income.
The conditions will likely continue where the short-term demand in the IT-related industry cannot be expected. It is also anticipated that thesituation will remain difficult and unpredictable in general, due to uncertain factors including the impact of the trade friction between countries
and regions, tariff policies of countries, and foreign exchange fluctuations.
Even under these circumstances, the FANUC Group, looking ahead to the future, will continue management that is based on a long-term perspective and not affected by short-term events.
Based on this approach while guided by the slogan “one FANUC,” the FANUC Group will take maximum advantage of our unique strength inuniting our FA, ROBOT, and ROBOMACHINE divisions to jointly provide total solutions and please customers throughout the world.
In addition, the FANUC Group will adhere to its origins as a producer of equipment to be used at manufacturing sites and will be thorough in implementing ourslogan “Reliable” “Predictable” “Easy to Repair” in product development, to minimize downtime in our customers’ factories and improve their operation rates. At
the same time, as a supplier of capital goods, we will fulfill our supplier responsibility to customers by ensuring a production system that customers can rely on.
Furthermore, we will practice our basic policy of “Service First” in providing high-level services pursuant to FANUC’s global standard anywherein the world and “lifetime maintenance” for as long as our customers use our products.
The FANUC Group believes that IoT and AI are indispensable technologies for FANUC to continue developing and launching highly competitive products on the market. By proactively adopting these technologies in all areas of the FA, ROBOT, and ROBOMACHINE products, we will further promote customers’ production efficiency.
Despite the severe business environment currently surrounding the FANUC Group, we will pursue measures to strengthen our corporate structure from a long-term perspective, such as reinforcing product competitiveness, strengthening sales and service activities, promoting the shift
to automation and use of robots at factories, and enhancing administrative efficiency. We are making efforts to multiply our production sites
and service centers so that we can fulfill our supplier responsibility to customers and maintain service activities in any circumstances.
United as one group in the promotion of these measures, the FANUC Group will continue to ensure the practice of “Strict Preciseness andTransparency,” FANUC’s principle, and make efforts to gain more customer confidence and trust in the FANUC Group while adapting to dramatic changes in the environment in order to become a company that will continue forever.
Thank you for your continued support and assistance to FANUC.

Yoshiharu Inaba
Chairman

Kenji Yamaguchi
President & CEO

3

Summary of FANUC Business

FA Business Division
Main Products

Results for Fiscal 2018

●

CNC

●

SERVO MOTOR

Consolidated sales totaling ¥211,088 million,
down 5.0% compared with the previous

●

LASER

fiscal year, and FA Division sales accounted
for 33.2% of consolidated net sales.

Refer to page 5 for details

ROBOT Business Division
Main Products

Results for Fiscal 2018

Consolidated sales totaling ¥217,526 million,
down 4.5% compared with the previous● Handling Robot● Collaborative Robot fiscal year. ROBOT Division sales accounted
for 34.2% of consolidated net sales.
●

Welding Robot

Refer to page 6 for details

ROBOMACHINE Business Division
Main Products

Results for Fiscal 2018●

ROBODRILL

Consolidated sales totaling ¥115,056 million,●

ROBOSHOT●ROBOCUT●ROBONANO

down 39.5% compared with the previous
fiscal year. ROBOMACHINE Division sales ac-

counted for 18.1% of consolidated net sales.

Refer to page 7 for details

Service Division
Results for Fiscal 2018
Consolidated sales totaling ¥91,898 million, up 6.4% compared with the previous
fiscal year. Service Division sales accounted for 14.5% of consolidated net sales.

Refer to page 8 for details

4

FANUC CORPORATION ANNUAL REPORT 2019

Business Report

FA Business Division
Demand in the machine tool industry, the primarymarket for FANUC CNC systems, remained at a highlevel in Japan and Europe, and were also solid in
India. However, demands in China and Taiwan declined sharply from the middle of the period due tothe impact of the trade friction between the UnitedStates and China, and sales in South Korea also remained sluggish due to a slowdown in domestic demand. As a result, net sales of CNC systems of the
FANUC Group decreased compared with the previous fiscal year.
In terms of development, we developed the “FANUC
Series 0i-F Plus,” the successor to the FANUC’s global-standard CNC “FANUC Series 0i-F.” The “FANUC
Series 0i-F Plus” uses state-of-the-art control technology and improves ease of use. In the servo field,
we developed “Servo Learning Oscillation,” which
improves the efficiency of removing scraps, and “AI
Servo Tuning,” which uses servo tuning based on machine learning to achieve advanced vibration suppression. We also enhanced our lineup in order toexpand sales in various applications.

CNC SeriesWith regard to our lasers, we continued focusing efforts on expanding sales of fiber laser oscillators
both domestically and abroad.
In terms of development, in our “FANUC FIBER LASER series” of fiber laser oscillators, we developed afiber laser capable of up to 12kW of output in order
to meet market needs for rapid cutting of mediumthickness plates and cutting of thick plates. This will
enable us to meet a broad range of laser application
demands, and is expected to result in further sales
growth.

SERVO MOTOR, SERVO AMPLIFIERFIBER LASER

5

ROBOT Business Division
In the ROBOT Division, although sales in Japan andEurope were solid, a trough in capital investments
remained in automobile industry of the Americas
and sales in China were weak, especially for the general industries. As a result, sales in the ROBOT Division decreased compared with the previous fiscalyear.
New developments included the addition of a small
14 kg payload model to our lineup of green “Collaborative Robots,” which do not require a safety fence
and enable robots and humans to work together.
We also developed an “AI paths Control function,”
which estimates actual paths using an accelerometer, making improvements by learning differences between target and actual paths. This new function is
expected to bring about increased sales in applications such as laser cutting and water jet processing
which require high precision trajectory control.

R-2000iC

In addition, we developed the “3D Vision Sensor
3DV/600,” which can perform measurement over a
wider range and at a greater speed than conventional sensors.
These and other new products and functions are expected to further expand the range of applicationsof FANUC robots.

Collaborative Robot

3DV/600

3D Vision Sensor 3DV/600

6

FANUC CORPORATION ANNUAL REPORT 2019

ROBOMACHINE Business Division
The short-term demand in the Chinese IT-related industry for the ROBODRILLs (compact machining center), which was robust in the previous fiscal year,
had plummeted, resulting in a significant decline insales. However, markets other than IT-related industry, such as automobile parts, generally remained
favorable, and in particular, sales increased in Japan,
Europe and India. In addition, sales of the ROBOSHOTs (electric injection molding machine) remainedrobust as in the previous fiscal year, while sales of the
ROBOCUTs (wire-cut electric discharge machine)slightly decreased.
Our development work included the developmentof custom screens for the “FANUC ROBODRILL α-DiB
series,” the “FANUC ROBOSHOT α-SiA series,” andthe “FANUC ROBOCUT α-CiB series,” making it easy
for peripheral device manufacturers to create screens
related to their products. This will improve expandability and contribute to ROBOMACHINE productsales growth. We also improved our “QSSR” (Quickand Simple Startup of Robotization), which packages
basic elements related to robot collaboration workand supports the deployment of robot systems. This
makes manufacturing site automation even easier.

ROBODRILLROBOSHOTWith regard to the ROBONANO (ultra precision machine), we developed “FANUC ROBONANO α-NTiA,”an ultra-precision lathe that uses FANUC’s latest FA
technologies. It can be used for stable production
and processing of optical lens molds, and we havehigh expectations for future sales growth.
ROBOCUTROBONANO

7

Service Division
The Service Division, under our slogan “Service First,”
reinforced our service system, enhanced our service
technology, improved our service tools, and increased efficiency through proactive introduction of
IT technology. With maintaining a network of 264
service centers covering 108 countries around theworld we are providing rapid maintenance service
activities to minimize downtime in our customers’
factories. (Note: The number of service centers andcountries covered is as of August 31, 2019).

Efforts for IoT and AI
In our support for IoT technology, we added newfeatures to the existing LINKi function of FA and ROBOMACHINE products, and released the second
version of the base software used by the FIELD system, an open platform in which a wide range ofcompanies can participate. The FIELD system is an
IoT product that connects various equipment in
manufacturing sites to improve productivity, and its
major characteristic is that the system is able to process information on a real-time basis at the edge
(machining site and assembly site) of manufacturing
sites.
With regard to AI, we have collaborated with Preferred Networks, Inc. to promote the application of
AI technologies to all product groups of the FA, ROBOT, and ROBOMACHINE Divisions. We will continue to differentiate ourselves from our competitors
and add large amounts of value by further enhancing the intelligent functions of products through application of AI technology.
The combination of the FIELD system and AI technology is expected to have an even greater synergy
effect, such as further enhancing the performance ofintelligent functions of products and sharing the results thereof via IoT.

8

FIELD system

FANUC CORPORATION ANNUAL REPORT 2019

Management Policy

Basic Management Policy
FANUC has consistently pursued the automation of factories since 1956, when it succeeded in thedevelopment of the SERVO mechanism for the first time in the Japanese private sector.
FANUC’s business is comprised of the three pillars of FA, ROBOT and ROBOMACHINE. The FA businessencompasses basic technologies, consisting of NCs (numerical controls), servos and lasers, which arealso applied to the ROBOT and ROBOMACHINE businesses. In addition, FANUC’s flagship IoT product,“FIELD system,” which is an open platform, has been introduced as a new business.
FANUC also offers service, with a policy for not terminating support of FANUC products as long as they
are used by customers.
Through such activities, FANUC contributes to the development of manufacturing industries in Japanand overseas, by promoting automation and efficiency in customers’ factories.
We ensure the practice of the principle, “Strict Preciseness and Transparency,” which is the basic principleof FANUC. We think it is important for the practical functioning of governance to share such an easy-tounderstand and simple principle among all officers and employees of the Group.

About “Strict Preciseness and Transparency”
Strict PrecisenessThe permanence and soundness of a company are created by preciseness.
Transparency
The corruption of an organization and the collapse of a company start from opacity.

The Three Philosophies of FANUC
The three businesses of FA, ROBOT and
ROBOMACHINE are unified with SERVICE
as “one FANUC,” to provide innovation andreassurance to manufacturing sites around theworld.
FANUC aims
to minimize downtime
in all factories all over the world.
Conforming to the spirit of “Service First,”
FANUC provides lifetime maintenance toits products for as long as they are used bycustomers, through more than 260 service
locations supporting 108 countries throughout
the world.
9History of FANUC
1956
1959
1969
1972

1974
1975
1977

1978

1980
1982

1983
1984
1985
1986

1987
1989
1991
1992


1996
1997
2000
2003

2009

2012
2013
2015

2016
2018

First successful NC development in Japan (private sector).
The first electro-hydraulic pulse motor was developed.
CNC was introduced.
FANUC was established.
NC DRILL was developed.
DC servo motor was licensed from Gettys Manufacturing Co.
Wire-cut electric discharge machine was developed.
FANUC USA CORPORATION was established.
The commercial production and shipment of ROBOTs started (ROBOT-MODEL1).
KOREA NUMERIC CORPORATION was jointly established by FANUC and Hwacheon Machinery Works, Co. Ltd.
FANUC EUROPE S.A. was established.
The Fuji Factory was completed.
GMFanuc Robotics Corporation was jointly established in the U.S.A. by FANUC and General Motors.
AC SERVO MOTOR was developed.
FANUC developed the first electric injection molding machine in the world for mass production.
FANUC headquarters was moved to the foot of Mt. Fuji.
FANUC series 0 was developed.
FANUC TAIWAN LTD was established.
GE Fanuc Automation Corporation was jointly established in the U.S.A. by FANUC and General Electric.
CO2 LASER was developed.
The Tsukuba Factory was completed.
The Hayato factory was completed.
GMFanuc Robotics Corporation became FANUC Robotics Corporation, a 100% Fanuc owned company, and its subsidiary.
BEIJING-FANUC Mechatronics CO., LTD was jointly established with Beijing Machine Tool Research Institute.
FANUC INDIA PRIVATE LIMITED was established.
The commercial production of 16i Series CNC started.
SHANGHAI-FANUC Robotics CO., LTD. was jointly formed in China with Shanghai Electric Group Company Limited.
Intelligent ROBOT R-2000iA was developed.
The commercial production of intelligent ROBOTs started.
The commercial production of 30i Series CNC started.
The joint venture with General Electric was dissolved.
The commercial production of the Delta Robot started.
European subsidiaries were reorganized, and FANUC Europe Corporation was established.
Subsidiaries in the America were reorganized, and FANUC America Corporation was established.
Collaborative ROBOT CR-35 A was developed.
FIBER LASER was developed
Sales
The Mibu Factory was completed.
FANUC ACADEMY was completed.

636(Billions of Yen)

800
700
600
500
400
300
200
100

72

10

74

76

78

80

82

84

86

88

90

92

94

96

98

00

02
04
06
08
10
12
14
16
18 19
Consolidated from the year ended March 31,1983

0FANUC CORPORATION ANNUAL REPORT 2019

CORPORATE GOVERNANCE
Fundamental Concept of Corporate Governance
FANUC Code of Conduct

Officers and employees of FANUC shall practice the following with “Strict Preciseness” and “Transparency,”
which are the basic principles of FANUC.
(1) Upholding of a high standard of ethics(2) Compliance with laws and regulations, and internal rules(3) Respect for human rights(4) Contribution to the benefit of FANUC
Prohibited Acts which require Particular Attention
1.	To discriminate based on gender, age, nationality, ethnicity, race, place of origin, religion, beliefs, disability, sexual orientation, sexual identity, etc.
2.	To engage in an act that creates, or appears to create, a conflict of interest between his or her personal interest and theFANUC group company’s interest, including dealing with the FANUC group company for the benefit of him/herself or any
particular individual or organization.
3.	To engage in an act that violates antitrust laws, including, unjust or unfair transactions.
4.	To give money, gifts, entertainment or any other economic benefit to public officials or persons in similar positions inconnection with their duties.
5.	To unlawfully acquire, use or disclose intellectual property, personal information, etc., of any company or individual.
6. To conduct insider trading of stocks based on the material facts of the FANUC group or its business partners, etc.
7. To use forced labor or engage in an act that appears to use forced labor.
8. To develop or spread technology that is harmful to the environment.
9.	To provide information that differs from the truth or misleads customers, business partners, etc.
10.	To consent to an unjust request by anti-social forces, such as organized crime groups, or conduct a transaction with such
entities or any related company or individual.
*FANUC will establish a contact point for whistle-blowing through which, in principle, all officers and employees of the FANUC group, including subsidiaries and sub-subsidiaries, can whistleblow to the headquarters of FANUC CORPORATION.
*This Code of Conduct applies to all officers and employees of the FANUC group, including subsidiaries and sub-subsidiaries (including contract workers).

Organizational Structure
As the business environment in which the Company operates evolves rapidly, the Board of Directors will not beable to make appropriate management decisions without obtaining accurate information on customers, market
trends, service status, and others. Given such circumstances, in principle, Directors other than Outside Directors,
engage in the execution of business under a scheme in which they are routinely involved in business operations,individually seek out accurate information, and bring such information to the attention of the Board of Directors.
The Company has elected to establish an Audit and Supervisory Board to enhance such functions. In addition, an
optional Nomination and Remuneration Committee has been established to ensure objectivity and transparencyof procedures regarding the nomination and remuneration of Directors.

Directors and Audit & Supervisory Board Members
Directors (11 in total, including 3 outside directors)
Representative Director, Chairman
Dr. Yoshiharu Inaba
Representative Director, President and CEO
Kenji Yamaguchi
Representative Director, Senior Executive Vice President and CTO
Hiroyuki Uchida (General Manager, ROBOMACHINE Business Division)
Representative Director, Senior Executive Vice President and CFO
Yoshihiro Gonda (General Manager, Corporate Administration Division)
Director, Senior Executive Vice President
Yutaka Saito (Responsible for IoT, General Manager, FIELD promotion Division)
Director, Executive Managing Officer
Dr. Kiyonori Inaba (General Manager, ROBOT Business Division)
Hiroshi Noda (General Manager, FA Business Division)
Director
Richard E. Schneider (Chairman, FANUC America Corporation)
Kazuo Tsukuda (Outside)
Yasuo Imai (Outside)
Masato Ono (Outside)Standing Audit & Supervisory Board Member
Katsuo Kohari
Audit & Supervisory Board Member
Katsuya Mitsumura
Masaharu Sumikawa (Outside)
Hajime Harada (Outside)
Hidetoshi Yokoi (Outside)11

Outside Directors and Outside Audit & Supervisory Board Members
Outside Directors

Reason for appointment

Kazuo Tsukuda

In order to develop the Company’s business steadily and to enhance its corporate value, it is quite effective to introduce to the Board of Directors
an outsider’s eye with a broad perspective and excellent insight. Kazuo Tsukuda has been providing the Company with extremely valuable advice,with his outstanding knowledge of manufacturing and extensive experience in management, having a deep understanding of the Company’sbusiness. He will be expected to continue to contribute to the Company’s Board of Directors from an independent position as Outside Director.

Yasuo Imai

After joining in the Ministry of International Trade and Industry (currently, the Ministry of Economy, Trade and Industry), Yasuo Imai had experienceof being posted overseas as General Manager of the Washington Office of Japan National Oil Corporation. He successfully held a number of
positions starting from the post of Deputy Director-General, Director-General of the Petroleum Department of Agency for Natural Resources andEnergy. Subsequently he moved to the post of Director-General of the Manufacturing Industries Bureau, and then to the post of Commissioner of theJapan Patent Office. Based on these experiences, Yasuo Imai, being familiar with foreign affairs, has a global perspective and extensive knowledge
concerning the manufacturing industry and the protection of intellectual property, etc. At the same time, he is currently an active corporate executive
and is also knowledgeable about corporate management due to having more than 12 years’ experience in business. Yasuo Imai has been providing
the Company with extremely valuable advice as Outside Director with his extensive experience in various fields and from his broad vision. He will be
expected to continue to contribute to the Company’s Board of Directors from an independent position as Outside Director.

Masato Ono

Our company has specialized in business activities in the narrow field of the automation of manufacturing and as such the Board of Directors
consists mostly of Directors with engineering background focusing on its core business. Given this context, Masato Ono has been providing
the Company with extremely valuable advice on enhancing corporate value from a totally different point of view by contributing to active
discussions at the meeting of the Board of Directors based on his many years of experience in management of financial institutions. Although
Masato Ono has served as Deputy President and Representative Director of Mizuho Financial Group, Inc., he meets the Company’s criteria for
independence of Outside Directors and Outside Audit & Supervisory Board Members (The Company has never applied for a loan from any bankof Mizuho Financial Group.), it has been over 11 years since he retired as Director of the Mizuho Financial Group, Inc., and there is no risk of
his independence being affected by this position. He will be expected to continue to contribute to the Company’s Board of Directors from an
independent position as Outside Director.

Outside Audit &Supervisory Board
Members

Reason for appointment

Masaharu Sumikawa

Masaharu Sumikawa, who has extensive knowledge based on his many years of experience in corporate management in the manufacturingindustry, has been providing the Company with advice, etc. from a point of view different from that of the Company while having a deep
understanding of the manufacturing industry, contributing greatly not only to statutory audit activities but to the Board of Directors and othermeetings that require active and rational discussions. We believe that we can expect him to continue to contribute to the Board of Directors.

Hajime Harada

Hajime Harada has been providing the Company with extremely valuable advice whenever necessary based on his wide experience andknowledge as a lawyer. Although his term of office as Outside Audit & Supervisory Board Member of the Company will have been for 15 years,
he has no business transactions with or interest in the Group As a lawyer, Hajime Harada has a responsibility under the Basic Rules on the
Duties of Practicing Attorneys to “maintain his or her freedom and independence” (Article 20 of the Rules) and to “perform his or her duties fairly”(Article 5), and in fact he gives his frank opinion from an independent standpoint. We therefore believe that he maintains sufficient independence
now and in the future. In particular, he has a deep understanding of corporate governance, an issue that has grown increasingly important inrecent years, gained through his experience including service as a lawyer on compliance committees at another listed company for many years.
Furthermore, he has advanced, wide-ranged and specialized knowledge, based on his experience including court cases in a variety of fields suchas systems development, intellectual property rights, antimonopoly law, international joint ventures, and claims collection. For these reasons,
we can expect him to continue to offer appropriate advice from an extremely broad perspective with regard to risks that the Company may facein the future and other matters.

Hidetoshi Yokoi

Hidetoshi Yokoi has extensive knowledge in the manufacturing field as well as insight built upon his activities at Japan Science and Technology
Agency, which tackles various issues in response to the needs of society. As we believe that we can expect him to provide appropriate advice
with a broad perspective eyeing society as a whole based on these knowledge and insight.

Criteria for Independence of Outside Directors and Outside Audit & Supervisory Board Members
With regard to Independent Outside Directors and Outside Audit & Supervisory Board Members, the Company nominates candidates
who do not have any certain interest in the Company, and who can be expected to make frank comments without hesitation at Boardof Directors meetings, etc. Furthermore, in order to ensure such real independence, as minimum requirements, candidates must meeteach of the following conditions.
1. Business transactions between the Company and the company from which the candidate comes must amount to less than 2% of therespective consolidated sales of both companies.
2. The Company must not have any loans from the company from which the candidate comes (if the candidate comes from a bank.)
3. The Company must not have any important transactions such as advisory contracts with the candidate or the firm he works for (ifthe candidate is a lawyer or other professional.)
4. The candidate must not come from the audit firm that is the Company’s Accounting Auditor.
5. There must be no other particular reason that could give rise to a conflict of interest with the Company.
6. The candidate must not be the spouse or a relative within the second degree of anyone who does not meet the above conditions
1 through 5.

12

FANUC CORPORATION ANNUAL REPORT 2019

Financial Section
TEN-YEAR FINANCIAL SUMMARY･･･････････････････････････････ 14
CONSOLIDATED STATEMENTS OF INCOME････････････････････ 16
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME･･･ 17
CONSOLIDATED BALANCE SHEETS･････････････････････････････ 18
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS･･･ 19
CONSOLIDATED STATEMENTS OF CASH FLOWS･･･････････････ 20
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS･････ 21
NON-CONSOLIDATED STATEMENTS OF INCOME･ ･････････････ 34
NON-CONSOLIDATED BALANCE SHEETS･ ･･････････････････････ 35

13

Ten-Year Financial Summary

2010

2011

2012

2013

¥ 253,393¥ 446,201¥ 538,492¥ 498,395

55,024

189,757

221,834

184,821

21.7%

42.5%

41.2%

37.1%

Income before income taxes

55,826

193,495

228,578

191,242

Net income attributable to owners of parent

37,511

120,155

138,819

120,484

Current assets

623,573

753,992

848,669

906,440

Current liabilities

56,18889,589115,270

92,973

Total assets

891,651

1,013,000

1,130,625

1,219,113

Net assets

812,657

894,494

985,322

1,094,129

187.75613.75709.20615.59

—

—

—

—

56.33

184.13212.77184.684,133.89

4,550.71

5,013.69

5,565.64

Years ended March 31

Net sales
Operating income
Operating income as a percentage of net sales

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 convenience only,at the rate of ¥111 = U.S.$1.00.

14

FANUC CORPORATION ANNUAL REPORT 2019

Millions of yen, except for per share data

Thousands of
U.S. dollars,
except for per share data

2014

2015

2016

2017

2018

2019

2019

¥ 450,976¥ 729,760¥ 623,418¥ 536,942¥ 726,596¥ 635,568$ 5,725,838

164,134

297,839

215,567

153,217229,604

163,297

1,471,144

36.4%

40.8%

34.6%

28.5%

31.6%

25.7%

25.7%

174,360

311,951

229,361

168,829

249,525

208,540

1,878,739

110,930

207,599

159,700

127,697

181,957

154,163

1,388,856

1,027,801

1,273,355

1,072,770

1,059,644

1,127,996

907,684

8,177,333

99,449172,611106,116

120,715

191,070

135,067

1,216,820

1,343,904

1,611,626

1,512,895

1,564,769

1,729,080

1,625,340

14,642,703

1,199,863

1,386,695

1,334,910

1,369,457

1,467,630

1,445,146

13,019,333

566.86

1,061.02

816.78658.63938.66795.34

7.17

—

—

—

—

—

—

—

170.06636.62490.07395.18563.201,003.11

9.04

6,102.20

7,049.39

6,825.27

7,031.79

7,540.24

7,417.70

66.83

15

Consolidated Statements of Income

Thousands of
U.S. dollars(Note 3)

Millions of yen

2017

2018

2019

2019

¥ 536,942¥ 726,596¥ 635,568$5,725,838

303,415

398,398

369,761

3,331,180

233,527

328,198

265,8072,394,658

80,31098,594

102,510923,514

153,217229,604

163,297

1,471,144

Interest income

2,343

3,189

4,195

37,793Equity in earnings of affiliates

10,022

16,307

14,243

128,315

Other, net (Note 10)

3,247

425

1,724

15,532

15,612

19,921

20,162

181,640——

25,081225,955——

25,081225,955

168,829

249,525

208,540

1,878,739

Current

47,736

67,66048,977441,234

Deferred(6,684)

(572)

4,794

43,190Net income

127,777

182,437

154,769

1,394,315

Net income attributable to non-controlling interests

80

480

606

5,459

Net income attributable to owners of parent¥ 127,697¥ 181,957¥ 154,163$1,388,856

Years ended March 31

Net sales
Cost of goods sold (Note 9)
Gross profit
Selling, general and administrative
expenses (Note 9)
Operating income

Other income (expenses):

Extraordinary income (loss)G ain on transfer of benefit obligation
relating to employees’ pension fund

Income before income taxes
Income taxes:

U.S. dollars(Note 3)

Amounts per share of common stock:

Net income
Cash dividends
16

See notes to the consolidated financial statements.

¥

658.63395.18¥

938.66563.20¥

795.34
1,003.11

$

7.17
9.04

FANUC CORPORATION ANNUAL REPORT 2019

Consolidated Statements of Comprehensive Income

Thousands ofMillions of yen

U.S. dollars

2017

2018

2019

2019

¥127,777¥182,437¥154,769$1,394,316

Valuation difference on availablefor-sale securities

4,203

4,496

(3,979)(35,847)

Foreign currency translation adjustment(2,076)(1,765)(1,946)(17,532)

Remeasurements of defined benefit
plans

(443)

2,411

4,780

43,063

Share of other comprehensive
income of affiliates accounted forusing equity method(4,527)

1,827(4,267)(38,441)

Total other comprehensive income(2,843)

6,969(5,412)(48,757)¥124,934¥189,406¥149,357$1,345,559

124,774

188,956

148,906

1,341,496

160

450

451

4,063

Years ended March 31

Net income
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

17

Consolidated Balance Sheets
Millions of yen

As of March 31

ASSETS
Current assets:
Cash and bank deposits
Receivables, trade:
Notes and accounts
Allowance for doubtful accounts
Marketable securities
Finished goods
Work in progress
Raw materials and supplies
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:
Net defined benefit liability (Note 6)
Other long-term liabilities
Total long-term liabilities
NET ASSETS
Shareholders’ equity:
Common stock:
Authorized - 400,000,000 shares
Issued - 204,040,771 shares
Capital surplus
Retained earnings
Treasury stock, at cost :2018 - 10,220,284 shares2019 - 10,210,522 shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets
See notes to the consolidated financial statements.

18

Thousands of
U.S. dollars(Note 3)

2018

2019

2019

¥602,329¥607,155$5,469,865

175,460(1,424)145,000
71,68056,40522,03330,0301,101,513
133,773

106,204(1,123)15,00071,042
55,17429,93024,302907,684
133,477

956,793(10,117)
135,135
640,018
497,063
269,640
218,936
8,177,333
1,202,496

143,036
383,775
206,788
54,654(302,376)
485,877

145,885
463,312
236,778
56,715(328,114)
574,576

1,314,279
4,173,982
2,133,135
510,946(2,955,982)
5,176,360

—
7,064
7,064
¥1,728,227

—
9,603
9,603
¥1,625,340—
86,51486,514$14,642,703¥52,901
46,466
7,047
83,686
190,100¥36,567
15,007
8,215
75,278135,067$329,432
135,198
74,009678,181
1,216,820

67,562
2,935
70,49742,097
3,030
45,127379,252
27,298406,550

69,01496,265
1,398,977

69,01496,265
1,380,439

621,748867,252
12,436,387(91,020)—
1,473,236—(91,040)
1,454,678—(820,180)
13,105,207

13,090(619)(24,117)(11,646)6,040
1,467,630¥1,728,227

9,111(6,677)(19,337)(16,903)
7,371
1,445,146¥1,625,340

82,081(60,153)(174,207)(152,279)
66,40513,019,333$14,642,703

FANUC CORPORATION ANNUAL REPORT 2019

Consolidated Statements of Changes in Net Assets
Millions of yen

Commonstock
Balance at March 31, 2016
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change due to tax rate change
Change in equity from transactions
with non-controlling shareholders
Net change except shareholder’sequity during the year
Balance at March 31, 2017
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change due to tax rate change
Change in equity from transactions
with non-controlling shareholders
Net change except shareholder’sequity during the year
Balance at March 31, 2018
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change due to tax rate change
Change in equity from transactions
with non-controlling shareholders
Net change except shareholder’sequity during the year
Balance at March 31, 2019

¥69,014¥69,014

Valuation
Foreign RemeasureNonTreasury
difference on currency
ments
Total
controllingstock,
available-for- translation of defined
net assets
at costinterests
sale securities adjustment benefit plans¥96,206 ¥1,269,557(¥90,574)¥4,391¥5,974(¥26,085)¥6,427 ¥1,334,910¥96,206 ¥1,269,557(¥90,574)¥4,391¥5,974(¥26,085)¥6,427 ¥1,334,910(76,623)(76,623)
127,697
127,6970(13,483)(13,483)2
1
3(2)(13,377)
13,379——

CapitalsurplusRetainedearnings

2¥69,014¥69,0142¥96,208 ¥1,307,254¥96,208 ¥1,307,254(91,969)
181,957
473
1
(1)

(97)
1,359

(¥90,677)(¥90,677)

4,203(6,684)(443)¥8,594¥8,594(¥710)(¥710)(¥26,528)(¥26,528)

(442)
1
98

(125)

57

¥69,014¥69,01457¥96,265 ¥1,398,977¥96,265 ¥1,398,977(173,665)
154,163
1,121
6
(6)

(3,049)¥6,302 ¥1,369,457¥6,302 ¥1,369,457(91,969)
181,957
473
(442)
2
—
1,359

(157)

(¥91,020)(¥91,020)

4,496

91

2,411

¥13,090¥13,090(¥619)(¥619)(¥24,117)(¥24,117)

(187)
4
163

(262)

6,736

¥6,040 ¥1,467,630¥6,040 ¥1,467,630(173,665)
154,163
1,121
(187)
10
—
—
—

¥69,014¥96,265 ¥1,380,439(¥91,040)(3,979)(6,058)4,780¥9,111(¥6,677)(¥19,337)

1,331(3,926)¥7,371 ¥1,445,146

Thousands of U.S. dollars (Note 3)

Commonstock
Balance at March 31, 2018
Restated balance
Cash dividends
Net income
Change caused by merger
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Change due to tax rate change
Change in equity from transactions
with non-controlling shareholders
Net change except shareholder’sequity during the year
Balance at March 31, 2019

$621,748$621,748

Valuation
Foreign RemeasureNonTreasury
difference on currency
ments
Total
controllingstock,
available-for- translation of defined
net assets
at costinterests
sale securities adjustment benefit plans$867,252 $12,603,396 ($820,000) $117,928($5,577) ($217,270)$54,415 $13,221,892$867,252 $12,603,396 ($820,000) $117,928($5,577) ($217,270)$54,415 $13,221,892(1,564,550)(1,564,550)
1,388,856
1,388,856
10,09910,099(1,685)(1,685)
54
37
91
(54)
(1,414)
1,468——

CapitalsurplusRetainedearnings—$621,748$867,252 $12,436,387($820,180)(35,847)(54,576)

43,063$82,081($60,153)($174,207)

11,990(35,370)$66,405 $13,019,333

See notes to the consolidated financial statements.

19

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

Millions of yen

2017

2018

2019

2019

¥168,829¥249,525¥208,540$1,878,739

26,530
(239)
3,178
—
(3,789)(10,022)(17,386)(16,519)
11,292(6,470)155,404
8,562(43,039)786
121,713

34,190462(3,840)—(4,793)(16,307)(51,908)(31,527)
16,87518,369211,046
9,818(44,983)
109
175,990

39,709(200)(25,320)(6,732)(5,705)(14,243)
67,500(6,249)(16,393)
3,855
244,762
13,662(79,985)(701)
177,738

357,739(1,802)(228,108)(60,649)(51,396)(128,315)
608,108(56,297)(147,685)
34,7292,205,063
123,081(720,586)(6,315)
1,601,243

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchases of property, plant and equipment
Purchases of investment securities
Other
Net cash used in investing activities——(87,509)
(559)
(494)
(88,562)(21,426)—(103,016)(1,481)(4,334)(130,257)(60,142)
67,357(125,324)(244)(4,990)(123,343)(541,820)
606,820(1,129,045)(2,198)(44,955)(1,111,198)

Cash flows from financing activities
Purchases of treasury stock
Dividends paid
Other
Net cash used in financing activities(13,481)(76,505)(281)(90,267)(442)(92,003)(652)(93,097)(183)(173,571)
886(172,868)(1,649)(1,563,703)
7,983(1,557,369)

215(2,283)(580)(5,227)(56,901)
831,662(49,647)
774,761(119,053)
725,903(1,072,551)
6,539,669

—

789

864

7,783

¥774,761¥725,903¥607,714$5,474,901

Years ended March 31

Cash flows from operating activities
Income before income taxes
Adjustments to reconcile income
before income taxes to net cash
provided by operating activities:
Depreciation and amortization
Allowance for doubtful accounts
Net defined benefit liability
Net defined benefit asset
Interest and dividend income
Equity in earnings of affiliates, net(Increase) decrease in receivables, trade(Increase) decrease in inventories
Increase (decrease) in payables, trade
Other
Cash generated from operations
Interest and dividends received
Income taxes paid
Other
Net cash provided by operating activities

Effect of exchange rate changes on cash
and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of year
See notes to the consolidated financial statements.

20

FANUC CORPORATION ANNUAL REPORT 2019

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”) are prepared on the basis of accounting
principles generally accepted in Japan, which are
different in certain respects as to the applicationand disclosure requirements of International Financial Reporting Standards, and have been 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 under accounting principles generally accepted in Japan but is presented herein
as additional information.
In preparing the accompanying consolidated
financial statements, the Company has madecertain reclassifications and rearrangements tothe consolidated financial statements preparedin 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 consolidation(b) Cash equivalents
The Group considers all highly liquid investmentswith a maturity of three months or less when purchased to be cash equivalents.
(c) Translation of foreign currency accounts
All monetary receivables and payables denominated in foreign currencies are translated into
Japanese yen at the exchange rates in effect atthe balance sheet date. Foreign exchange gainor loss on translation is recognized in the consolidated statements of income.
Assets and liabilities of the consolidated subsidiaries outside Japan are translated into Japanese yen at the applicable year-end rates except
for shareholders’ equity which is translated at thehistorical rates. Differences arising from translation are reflected as “Foreign currency translation
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.

The consolidated financial statements include the

Other securities whose fair value is readily

accounts of the Company and, with minor excep-

determinable are stated at fair value with thetions, the subsidiaries under its control. Intercom-

corresponding unrealized gain or loss, net of tax-pany accounts and significant intercompany

es, recorded directly as a separate component

transactions have been eliminated in consolida-of net assets. Other securities whose fair value istion.

not readily determinable are stated at moving

The investments in unconsolidated subsidiaries
and affiliated companies over which the Company

average cost. The cost of other securities sold is
calculated by the moving average method.

exerts substantial influence are, with minor exceptions, stated at their underlying equity value.
Goodwill is amortized over a period of five
years.

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

21

(f) Inventories

Past service cost is being amortized as incurred

Raw materials and purchased components areby the straight-line method over a period (10 years)

stated primarily at cost determined by the mostwhich is shorter than the estimated average

recent purchase price method.

remaining years of service of the eligible employees.

Work in progress is stated at actual cost which includes direct costs for materials and labor and over-(j) Revenue recognition

head manufacturing costs including depreciation.

In general, sales of products, other than those ex-

Finished goods are stated principally at cost(the valuation method) by the average method.

ported, are recognized in the accounts upon acceptance by the customers. Export sales arerecognized as of the respective dates of ship-(g) Property, plant and equipment and depreciation

ment.

Property, plant and equipment, including significant renewals and additions, is stated at cost.

(k) Income taxes

Depreciation is computed principally by theDeferred income taxes are provided by the asset

declining-balance method at rates based on theand liability method. Deferred income tax assets

estimated useful lives of the respective assets

and liabilities are determined based on the tem-

which vary according to general classification,

porary differences between the financial state-type of construction and use.

ments and the tax bases of the assets andMaintenance and repairs, including minor re-liabilities, using the enacted tax rates which will

newals and improvements, are charged to in-

be in effect during the years in which the differ-come as incurred.

ences are expected to reverse.

(h) Warranty reserves(l) Net income per share

The Group provides warranty reserves for goods

Net income per share is calculated based on thesold under warranty agreements. Estimates fornet income available for distribution to share-

these warranty reserves are based primarily on

holders of common stock and the weighted-av-

historical experience. In addition, they are calcu-

erage number of shares of common stock

lated with reference to current information con-outstanding during the year.

cerning specific issues.
(m) Shareholders’ equity

22(i) Retirement benefits

The Companies Act of Japan provides that an

The benefit formula basis is applied as theamount equal to 10% of the amount to be disbursed

method for attributing the expected retirement

as distributions of capital surplus (other thanbenefits to periods of service for the calculation

capital reserve) and retained earnings (otherof the retirement benefit obligation.

than legal reserve) be transferred to capital re-Actuarial gain or loss is amortized in the year

serve and legal reserve, respectively, until thefollowing the year in which the gain or loss is

sum of the capital reserve and the legal reserve

recognized primarily by the straight-line method

equals 25% of the capital stock account. Such dis-over a period (10 years) which is shorter than thetributions can be made at any time by resolution

estimated average remaining years of service ofof the shareholders or by the Board of Directors

the eligible employees.

if certain conditions are met.

FANUC CORPORATION ANNUAL REPORT 2019

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 thenotes thereto represent the arithmetic results oftranslating yen into dollars at ¥111 = U.S.$1.00,
the approximate rate of exchange prevailing on
March 31, 2019.
U.S. dollar amounts are presented solely forthe convenience of the reader and the translation is not intended 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 andrelated risk

fluctuations. Investment securities, which mainly
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
balances of receivables by customer according
to internal guidelines and periodically checks
credit risks of key customers taking into account their financial position and other factors.
( ii ) Management of market risk
The Group regularly monitors each yen equivalent of deposits denominated in forreign currencies.
The Group regularly monitors the market(1) Group policy for financial instruments

price and the financial condition of the issuer

The Company and its consolidated subsidiaries relywith respect to its securities and continuouslyon their own resources to finance operations andreviews the investment made in each compa-

do not raise funds from external resources.

ny, taking into account its relationship with the

In addition, they do not enter into any deriva-

counterparty.

tive contracts.
(2) Nature and extent of risks arising from financial instruments
Deposits denominated in foreign currencies are
exposed to risk of exchange fluctuations.
Receivables such as trade notes and trade accounts are exposed to customer credit risk andreceivables denominated in foreign currencies
that arise from overseas operations are exposedto the market risk of fluctuation in foreign currency exchange rates. Marketable securities are negotiable certificate of deposits, which are easily
convertible into cash and within three months,
and thus are exposed to insignificant risk of price23

Fair value of financial instruments
The carrying amount and fair value of financial instruments at March 31, 2018 and 2019 are summarized
as follows. Financial instruments whose fair value is not readily determinable are not included in thetable below.
2018

Millions of yen

Carrying
amountFair
value

Cash and bank deposits¥602,329¥602,329—

Notes and accounts receivables

175,460

175,460—

Marketable securities and investment securities
Other securities

174,124

174,124—

Notes and accounts payables(52,901)(52,901)—

Accrued income taxes(46,466)(46,466)—

2019

Variance

Millions of yen

Thousands of U.S. dollars

Carrying
amountFair
value

Cash and bank deposits¥607,155¥607,155—

Notes and accounts receivables

106,204

106,204—

956,793956,793—

39,60939,609—356,838

356,838—

Notes and accounts payables(36,567)(36,567)—(329,432)(329,432)—

Accrued income taxes(15,007)(15,007)—(135,198)(135,198)—

Variance

Carrying
amountFair
value$5,469,865 $5,469,865

Variance—

Marketable securities and investment securities
Other securities

Cash and bank deposits, Notes and accounts receivable
The carrying value of cash and bank deposits and notes and accounts receivables approximate fairvalue due to their short maturities.
Marketable securities and investment securities
Marketable securities are negotiable certificates of deposit (NCD), and the carrying value of those
approximate fair value due to their short maturities.
Investment securities are equity securities whose fair value is measured at the quoted market
price at the stock exchange.
See Note 5 for information on the fair value of investment securities by classification.
Notes and accounts payables
The carrying value of notes and accounts payables approximate fair value due to their shortmaturities.

24

FANUC CORPORATION ANNUAL REPORT 2019

The carrying amount of financial instruments whose fair value is not readily determinable at March
31, 2018 and 2019, is as follows:
Thousands of
U.S. dollars

Millions of yen

Unlisted stock(consolidated balance sheet amount)

2018

2019

2019

¥60,822¥62,065$559,144

Redemption schedule after fiscal year-end for monetary assets and securities with maturity dates asof March 31, 2018 and 2019 is as follows:
2018

Millions of yen

Within 1 year

1 - 5 years

5 - 10 years

Due after
10 years

Cash and bank deposits¥602,329———

Notes and accounts receivables

175,460———

145,000———¥922,789———

1 - 5 years

5 - 10 years

Due after
10 years¥ 607,155

—

—

—

106,204———

15,000———¥ 728,359

—

—

—

1 - 5 years

5 - 10 years

Due after
10 years$5,469,865

—

—

—

956,793———

135,135———$6,561,793

—

—

—

Investment securities
Other securities with maturity
Negotiable certificates of deposit
Total
2019

Millions of yen

Within 1 year
Cash and bank deposits
Notes and accounts receivables
Investment securities
Other securities with maturity

Negotiable certificates of deposit
Total
2019

Thousands of U.S. dollars

Within 1 year
Cash and bank deposits
Notes and accounts receivables
Investment securities
Other securities with maturity

Negotiable certificates of deposit
Total

25

5. Other securities and investments
Other securities whose fair value was determinable at March 31, 2018 and 2019 are summarized as follows:
2018

Other securities
with unrealized gain
Other securities
with unrealized loss
Total
2019

Other securities
with unrealized gain
Other securities
with unrealized loss
Total
2019

Book value
Type ofreflected in the
securities
balance sheet
Equity securities¥ 29,084
Subtotal
29,084
Negotiablecertificates ofdeposit
145,000
Equity securities
40
Subtotal
145,040¥174,124Book value
Type ofreflected in the
securities
balance sheet
Equity securities¥24,369
Subtotal
24,369Negotiablecertificates ofdeposit
15,000Equity securities
240
Subtotal
15,240¥39,609

Other securities
with unrealized loss
Total

26

Acquisition
cost

Net

¥ 12,204
12,204¥16,880
16,880145,000
48
145,048¥157,252

—
(8)
(8)
¥16,872

Millions of yen

Acquisition
cost

Net

¥12,677
12,677¥11,692
11,692

15,000261
15,261¥27,938

—
(21)
(21)
¥11,671

Thousands of U.S. dollars

Book value
reflected in thebalance sheet
Equity securities$219,541
Subtotal
219,541
Negotiablecertificates ofdeposit
135,135
Equity securities
2,162
Subtotal
137,297$356,838
Type ofsecurities

Other securities
with unrealized gain

Millions of yen

Acquisition
cost

Net

$114,207
114,207$105,333
105,333

135,135
2,351
137,486$251,694

—
(189)
(189)
$105,144

FANUC CORPORATION ANNUAL REPORT 2019

Other securities sold during the years ended March 31, 2018 and 2019 are not presented since they
are insignificant.
Investments at March 31, 2018 and 2019 consisted of the following:

Investments in affiliates
Other securities
Deferred income taxes
Net defined benefit asset
Allowance for doubtful accounts
Other
Total

2018

Millions of yen¥ 57,516
32,43040,875
—

(371)

3,323
¥133,773

2019¥ 59,712
26,96236,552
6,737
(456)
3,970
¥133,477

Thousands of
U.S. dollars

2019$ 537,946
242,901
329,297
60,694(4,108)35,766$1,202,496

27

6. Retirement benefits
The Company and its domestic consolidated subsidiaries provide corporate pension plans and lumpsum severance payment plans as their defined benefit pension plans.
Certain overseas consolidated subsidiaries also provide defined benefit pension plans and defined
contribution pension plans. The Company has obtained approval of the Minister of Health, Labor andWelfare as of April 1, 2017 for relief from the payment obligation for the substitutional portion for the
future.The Company also has obtained his approval as of October 1, 2018 for relief from the payment
obligation for the substitutional portion for the past and transfer employee’s pension fund plans to defined benefit corporate pension plans in October, 2018.
Information on the pension plans for the years ended March 31, 2018 and 2019 is as follows;
1. Defined benefit pension plans(1) Changes in projected benefit obligation (PBO)
Millions of yen

2018

2019

Thousands of
U.S. dollars

2019¥185,729¥186,991$1,684,604

Service cost

4,692

5,811

52,351

Interest cost

1,750

1,960

17,658Actuarial gain or loss

2,407

(850)

(7,658)Benefit payments(2,922)(3,057)(27,541)

Accrued past service cost

(3,742)

4,094

36,883

Influence of exchange(1,324)

1,093

9,847

—

(29,938)(269,712)

401

1,989

17,919¥186,991¥168,093$1,514,351

PBO at beginning of year

 ecrease resulting from transfer of benefitDobligation relating to employees’ pension fundOther
PBO at end of year
(2) Changes in the fair value of plan assets

Millions of yen

2019

2019

¥114,554¥119,429$1,075,937

1,202

1,378

12,414

Actuarial gain or loss

(37)

2,142

19,297

Employer contribution

6,864

8,874

79,946

Benefit payments(1,715)(1,710)(15,405)

Influence of exchange(1,405)

1,232

11,099

(34)

1,388

12,505¥119,429¥132,733$1,195,793

Fair value of plan assets at beginning of year
Expected return on plan assets

Other
Fair value of plan assets at end of year

28

2018

Thousands of
U.S. dollars

FANUC CORPORATION ANNUAL REPORT 2019(3) Amount recognized in consolidated balance sheets at end of year
Millions of yen

Thousands of
U.S. dollars

PBO in savings-type pension plan

2018
¥182,877

2019¥128,322

Fair value of plan assets(119,429)(132,733)(1,195,793)

63,448(4,411)(39,739)

PBO in non-savings-type pension plan

4,114

39,771

358,298

Net amount of liability and asset recognized inconsolidated balance sheets

67,56235,360318,559

Net defined benefit liability

67,56242,097379,252—(6,737)(60,693)¥ 67,562¥ 35,360$ 318,559

Net defined benefit asset
Net amount of liability and asset recognized inconsolidated balance sheets(4) Components of defined benefit costThousands of
U.S. dollars

Millions of yen

Service cost2018

¥4,6922019$1,156,054

2019

2019

¥ 5,811$ 52,351

Interest cost

1,750

1,960

17,658

Expected return on plan assets(1,202)(1,378)(12,414)

Amortization of actuarial gain or loss

3,567

3,157

28,441

Amortization of past service cost

(116)

234

2,108

13

14

126

8,704

9,798

88,270—(¥25,081)($225,955)

Other
Defined benefit cost
Gain on transfer of benefit obligation relating toemployees’ pension fund(5) Remeasurements of defined benefit plans
The components (before adjustment of tax effect) are as follows:

Millions of yen

Past service cost2018

¥3,6262019¥13,259

Thousands of
U.S. dollars

2019$119,450Actuarial gain or loss

1,634

(6,508)(58,630)

Total¥5,260¥ 6,751$ 60,820

29

(6) Remeasurements of defined benefit plans,before tax
The components (before adjustment of tax effect) are as follows:

Thousands of
U.S. dollars

Millions of yen

Unrecognized past service cost2018(¥1,576)

2019

2019

¥ 4,932$ 44,432

Unrecognized actuarial gain or loss

35,171

21,913

197,415

Total¥33,595¥26,845$241,847

2018

2019

(7) Plan assets
1) Components of plan assets
The components are as follows:
Debt securities

70%

67%

Cash and bank deposits

29%

32%

Other

1%

1%

Total

100%

100%

2) Expected rate of return on plan assets
The expected rate of return on plan assets is determined based on the current and estimatedfuture rates of return on various pension assets.
(8) Actuarial assumptions

2018

2019

Discount rate

0.5 - 4.0%

0.5 - 4.0%

Expected rate of return on plan assets

0.5 - 2.8%

0.5 - 2.8%

Expected rate of salary increase

2.3 - 4.2%

2.5 - 3.9%

2. Defined contribution pension plans
Contribution of consolidated subsidiaries to the plan was ￥1,028 million for fiscal year 2018, and ￥1,075
million ($9,685 thousand) for fiscal year 2019.

30

FANUC CORPORATION ANNUAL REPORT 2019

7. Leases
Future rent payments, including interest, under operating leases subsequent to March 31, 2018 and2019 are summarized as follows:2018

Due within one year

Millions of yen¥1,3762019

Thousands of
U.S. dollars

2019¥1,322$11,910Due after one year

¥1,633¥1,588$14,306

Total¥3,009¥2,910$26,216

8. Contingent liabilities
Contingent liabilities with respect to guarantees for employees’ mortgage loans with banks at March
31, 2018 and 2019 amounted to ¥25 million and ¥18 million ($162 thousand), respectively.

9. Research and development expenses
Research and development expenses charged to manufacturing costs and selling, general and administrative expenses for the years ended March 31, 2017, 2018 and 2019 are summarized as follows:
2017¥42,331

Millions of yen

2018¥52,956

2019¥56,162

Thousands of
U.S. dollars

2019$505,964

10. Other income (expenses)-Other, net
Other income (expenses)-Other, net for the years ended March 31, 2017, 2018 and 2019 consistedof the following:

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

2017
¥1,446

(228)
517
1,512
¥3,247

Millions of yen

2018¥1,604(568)(1,107)496¥ 4252019¥1,510(1,059)1,589(316)¥1,724

Thousands of
U.S. dollars

2019$13,604(9,541)
14,315(2,846)$15,532

31

11. Income taxes
Net deferred tax assets at March 31, 2018 and 2019 are summarized as follows:
Millions of yen

Deferred tax assets:
Net defined benefit liability
Unrealized profit on inventories and property, plantand equipment
Depreciation and amortization
Accrued expenses
Accrued enterprise taxes
Investment securities
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Undistributed earnings of affiliated companies
Other
Total deferred tax liabilities
Net deferred tax assets

Thousands of
U.S. dollars

2018

2019

2019

¥21,736¥11,873$106,964

11,08812,094

108,955

10,478
6,502
2,007
837
12,78465,432(1,599)63,833

12,199
5,611
723
852
14,861
58,213(1,613)56,600109,901
50,5506,514
7,676
133,881
524,441(14,531)509,910(11,167)(11,908)(23,075)¥40,758(11,482)(8,697)(20,179)¥36,421(103,441)(78,352)(181,793)$328,117

Reconciliation of the statutory income tax rate to the effective income tax rate for the years ended
March 31, 2017, 2018 and 2019 was as follows:

2019

2017

2018

Tax exemption(5.0%)(3.0%)(3.1%)

Dividend income not taxable(4.0%)(2.3%)(5.1%)Tax rate difference of foreign subsidiaries

0.2%(0.5%)(1.7%)

Elimination of dividends received

4.2%

2.4%

5.5%

Equity in earnings of affiliates(1.8%)(2.0%)(2.0%)

Other

0.5%

2.1%

2.3%

24.3%

26.9%

25.8%

Japanese statutory income tax rate

Effective income tax rate

30.2%

30.2%

29.9%

12. 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 areused in automated production systems.
FANUC Group uses CNCs and servo motors in all of its products. For this reason, the decision
is made, taking into consideration the status of orders, sales and production of all products,
in addition to the status of particular products.
32

FANUC CORPORATION ANNUAL REPORT 2019

As mentioned above, FANUC Group runs only one business segment based on the decision thatthe entire group makes for investment. Thus, the segment information is not stated herein.

Relevant Information
Information by product and service
Net sales: Unaffiliated customers
FA
ROBOT
ROBOMACHINESERVICE
Total

2017

¥175,016¥190,043¥ 93,939¥ 77,944¥536,942

Millions of yen

2018¥222,254¥227,827¥190,182¥ 86,333¥726,596

2019¥211,088¥217,526¥115,056¥ 91,898¥635,568

Information by region
Net sales: Unaffiliated customers
Japan
America
Europe
Asia
Other
Total

2017

¥116,598¥134,915¥ 87,449¥194,698¥ 3,282¥536,942

Millions of yen

2018¥137,079¥144,954¥110,378¥329,523¥ 4,662¥726,596

2019¥149,669¥128,572¥122,179¥230,845¥ 4,303¥635,568

Thousands of
U.S. dollars

2019$1,901,694$1,959,694$1,036,540$ 827,910$5,725,838

Thousands of
U.S. dollars

2019$1,348,369$1,158,306$1,100,712$2,079,685$ 38,766$5,725,838

13. Derivative transactions
Not applicable as the Group does not enter into any derivative contracts.

14. Related-party transactions
Related-party transactions for the years ended March 31, 2018 and 2019 are not presented since
they are insignificant.

33

NON-CONSOLIDATED STATEMENTS OF INCOME

Thousands of
U.S. dollars

Millions of yen

2017

2018

2019

2019

¥399,111¥572,963¥470,644$4,240,036

246,702

340,725305,987

2,756,640

152,409232,238

164,657

1,483,396

44,43057,35858,805

529,775

107,979

174,880

105,852

953,622

Dividend income

25,00421,096

41,222

371,369

Other, net

8,750

220

882

7,946

33,754

21,316

42,104379,315——

25,081225,955——

25,081225,955

141,733

196,196

173,037

1,558,892

Current

35,182

53,23432,615

293,829

Deferred(5,842)(4,702)

4,096

36,901

29,34048,532

36,711

330,730¥112,393¥147,664¥136,326$1,228,162

Years ended March 31

Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):

Extraordinary income (expenses):Gain on transfer of benefit obligation
relating to employees’ pension fund

Income before income taxes
Income taxes:

Net income

Yen

Net income per share:¥ 579.70¥ 761.75

U.S. dollars¥ 703.31

Note : The U.S. dollar amounts are converted from yen, for convenience only, at the rate of ¥111 = U.S.$1.00.

34

$

6.34

FANUC CORPORATION ANNUAL REPORT 2019

NON-CONSOLIDATED BALANCE SHEETSAs of March 31
ASSETS
Current assets:
Cash and bank deposits
Receivables, trade:
Notes and accounts
Subsidiaries and affiliates
Allowance for doubtful accounts
Marketable securities
Inventories
Other current assets
Total current assets
Investments and other assets:
Subsidiaries and affiliates
Deferred tax assets
Other
Total investments and other assets
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 - 204,040,771 shares
Capital surplus
Retained earnings
Treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustment:
Net unrealized holding gain on other securities
Total net assets
Total liabilities and net assets

Millions of yen

Thousands of
U.S. dollars

2018

2019

¥ 398,021¥ 391,501$ 3,527,036

89,62730,717(398)
145,000
89,53923,954776,460

41,644
21,977(515)
15,00097,00320,086586,696375,171
197,991(4,640)135,135
873,901
180,956
5,285,550

109,868
28,52332,155
170,546

111,113
26,09638,072
175,2811,001,018
235,099
342,991
1,579,108

128,640
349,245
189,045
53,094720,024(276,124)
443,900
6,478¥1,397,384

129,675
282,829
74,91552,445539,864(18,496)
521,3688,978¥1,292,323

1,168,243
2,548,009
674,911472,477
4,863,640(166,631)
4,697,009
80,883$11,642,550

¥

¥

$

45,437
1,049
48,78939,0993,187
3,268
140,829

27,939702
42,598
8,568
4,310
3,208
87,325

2019251,703
6,324
383,766
77,18938,82928,901
786,71238,8852,669
41,55429,212
2,322
31,534

263,171
20,919284,09069,014
96,057
1,128,076(91,020)
1,202,127

69,014
96,057
1,090,580(91,040)
1,164,611

621,748865,378
9,825,045(820,180)
10,491,991

12,874
1,215,001¥1,397,384

8,853
1,173,464¥1,292,323

79,757
10,571,748$11,642,550

35

Global Service Network

FANUC Global Service Network
FANUC America

FANUC Europe

BEIJING-FANUCSHANGHAI-FANUC Robotics

TAIWAN FANUC■ The Americas

FANUC America Corporation

Detroit, U.S.A. Tel.(1)248-377-7000
Chicago, U.S.A. Tel.(1)847-898-5000
ROBOT and ROBOT system development, manufacture, sales andservices; CNC, LASER and ROBODRILL sales and services■ Europe

FANUC Europe Corporation, S.A.

Luxembourg Tel.(352)72-7777-1
CNC, LASER, ROBOT and ROBOMACHINE sales and services;
ROBOT system development, manufacture, sales and services■ AsiaBEIJING-FANUC Mechatronics CO., LTD.

Beijing, China Tel.(86)10-6298-4726
CNC manufacture, sales and services; LASER sales and services

SHANGHAI-FANUC Robotics CO., LTD.

Shanghai, China Tel.(86)21-5032-7700
ROBOT system development, manufacture, sales and services;
ROBOT and ROBOMACHINE sales and services

KOREA FANUC CORPORATION

Changwon City, Korea Tel.(82)55-278-1200
CNC, LASER, ROBOT, ROBOT system and ROBOMACHINE sales
and services

36

TAIWAN FANUC CORPORATIONTaichung, Taiwan Tel.(886)4-2359-9101
CNC manufacture, sales and services; LASER, ROBOT and ROBOT
system sales and services

FANUC INDIA PRIVATE LIMITED

Bangalore, India Tel.(91)80-2852-0057
CNC manufacture, sales and services; ROBOT system development,
manufacture, sales and services; LASER, ROBOT and
ROBOMACHINE sales and services

FANUC THAI LIMITED

Bangkok, Thailand Tel.(66)2-714-6111
CNC, ROBOT, ROBOT system and ROBOMACHINE sales andservices; LASER services

FANUC MECHATRONICS（MALAYSIA）SDN. BHD.

Kuala Lumpur, Malaysia Tel.(60)3-7628-0110
CNC, ROBOT, ROBOT system and ROBOMACHINE sales andservices; LASER services

PT. FANUC INDONESIA

Jakarta, Indonesia Tel.(62)21-4584-7285
CNC, ROBOT, ROBOT system and ROBOMACHINE sales andservices; LASER services

FANUC SINGAPORE PTE. LTD.

Singapore Tel.(65)6-220-3911
CNC, LASER, ROBOT and ROBOMACHINE sales and services

FANUC CORPORATION ANNUAL REPORT 2019

Hino
Branch office

NagoyaBranch office

NagoyaService Center
KOREA FANUC

FANUC INDIA

FANUC THAIFANUC INDONESIAFANUC SOUTH AFRICA

7

FANUC PHILIPPINES CORPORATION

Manila, Philippines Tel.(63)49-546-0178 (63)49-546-0179
CNC, LASER, ROBOT and ROBOMACHINE services

FANUC VIETNAM COMPANY LIMITED

Ho Chi Minh, Vietnam Tel.(84)28-3824-6638
CNC, LASER, ROBOT and ROBOMACHINE services

FANUC OCEANIA PTY. LIMITED

Sydney, Australia Tel.(61)2-8822-4600
CNC, LASER, ROBOT and ROBOMACHINE sales andservices■ South Africa

FANUC SOUTH AFRICA（PROPRIETARY）LIMITED

Johannesburg, South Africa Tel.(27)11-392-3610
ROBOT system development, manufacture, sales andservices; CNC, ROBOT, ROBODRILL and ROBOCUT sales
and services; LASER services

37

Web Site: https://www.fanuc.com/