(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, 2018
October 29, 2018
Company name: FANUC CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Stock code:
6954
URL: https://www.fanuc.co.jp
Representative: (Title) Chairman(Name) Yoshiharu Inaba
Contact:(Title) Manager, Public Relations (Name) Keisuke Fujii TEL: (0555)84－5555
Scheduled date of filing quarterly report: November 9, 2018
Scheduled date of commencing of dividend payments: December 3, 2018
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, 2018 (April 1, 2018 – September 30,
2018)(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%

Millions of yen%

Millions of yen

2018
344,951(0.8)
98,428(8.4)
112,035(5.4)
2017347,61235.2
107,39637.0
118,39745.7
Note: Consolidated comprehensive income:April-September 2018¥89,688 million
April-September 2017¥99,666 million
Six months
ended
September 30

Net income
per share

Net income
per share(diluted)

Yen

Yen

2018
2017

421.45442.41

81,69385,763(10.0)%
277.2 %

%

(4.7)
42.5

—
—

(2) Consolidated Financial Position
Total assets
Millions of yen

Net assets

Equity ratio

Millions of yen%

September 30, 2018

1,738,724
1,500,379
1,728,227
1,467,630(Reference) Equity: September 30, 2018: ¥1,493,085 million

March 31, 2018

85.9
84.6
March 31, 2018: ¥1,461,590 million

2. Dividends
Dividends per share
1st Quarter

2nd Quarter

3rd Quarter

Year-end
Dividends

Full year

Yen

Yen

Yen

Yen

Yen

2017
265.45297.75563.20――2018
598.19―2018―――(forecast)
Note: We have changed the forecasts of dividends from the latest ones.
Note: The 2nd quarter-end dividends for the year ending March 31, 2019 consist of ordinary dividends of ¥252.87
and special dividends of ¥345.32.
Note: The forecasts of year-end dividends for the year ending March 31, 2019, will be disclosed promptly upon
their availability.

3. Consolidated Financial Forecasts for the Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)(% 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%

626,000 (13.8)
150,900 (34.3)
165,300 (33.8)
Fiscal period
Note: We have changed the forecasts of financial results from the latest ones.

Millions of yen%

Yen142,300 (21.8)*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 ReportingNo

734.13(3) Changes in Accounting Principles and Accounting Estimates, and Revisions/Restatements
1. Changes associated with changes in accounting standards: No

2. Changes in accounting principles other than 1: No

3. Changes in accounting estimates: No

4. Revisions/restatements: No(4) Number of shares outstanding (Common shares)
1. Number of shares outstanding at the end of the period (including treasury stocks)
September 30, 2018 204,040,771
March 31, 2018
shares
2. Number of treasury stocks
September 30, 2018

10,206,535
shares

3. Average number of shares during the period
April-September 2018 193,836,282
shares204,059,017
sharesMarch 31, 201810,220,284
sharesApril-September 2017

193,852,478
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, 2019, 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

3(4)Interim Dividends

4

2．Consolidated Quarterly Financial Statements(1)

Consolidated Quarterly Balance Sheet(2)

Consolidated Quarterly Statement of Income and(3)6Consolidated Quarterly Statement of Comprehensive Income

8

Consolidated Quarterly Statement of Income

8

Consolidated Quarterly Statement of Comprehensive Income

9

Consolidated Quarterly Statement of Cash Flow10

3．Other Information

11

(1)

Changes in Significant Subsidiaries during the period(2)

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

(3)

6

11

11

Changes in Accounting Principles and Accounting Estimates, andRevisions/Restatements

11

(4)

Additional Information

11

(5)

Note on Premise of a Going Concern

11

(6)

Note on the Substantial Change in Shareholders’ Equity

11

(7)

Significant Subsequent Events

11

1

1. Results of Operations and Financial Position(1) Results of Operations
The FANUC Group’s results for the second quarter (April to September 2018) are as follows.
In the FA Division, demands in the machine tool industry, the primary market for FANUC CNC systems,
remained at a high level in Japan, Europe, the Americas, and India, while there was a slight downward trend
seen in China and Taiwan in the latter half of the quarter. With regard to our lasers, we continued focusing
efforts on expanding sales of fiber laser oscillators both domestically and abroad. As a result, net sales in the
FA Division increased compared with the corresponding period of the previous fiscal year.
In the Robot Division, although the automobile industry saw a trough in capital investments in theAmericas and sales in China were weak, sales in Japan and Europe remained favorable. As a result, sales
in the Robot Division slightly increased compared with the corresponding period of the previous fiscal year.
In the Robomachine Division, the short-term demand in the IT-related industry for the ROBODRILLs(compact machining centers) had settled, but other markets, mainly the automobile part processing market,
generally remained favorable. In addition, sales of the ROBOSHOTs (electric injection molding machines)
remained robust, while sales of the ROBOCUTs (wire-cut electric discharge machines) remained
unchanged.
Amidst such circumstances, the FANUC Group, under the slogans, “one FANUC,” “Reliable”“Predictable” “Easy to Repair,” and “Service First,” united as one group to promote the provision of our highly
reliable products and related services, in order to empower our customers to build and maintain efficient andinnovative production systems. In addition, while proceeding with the application of AI technology to our
products, we made efforts to expand sales of LINK i products, which the FANUC Group has been promoting
for some time, as well as to enhance functions of and spread our new product, FIELD system (FANUCIntelligent Edge Link and Drive system), as IoT initiatives.
As a result, during the six months from April to September 2018, FANUC posted consolidated net sales
totaling ¥344,951 million, down 0.8%, consolidated ordinary income totaling ¥112,035 million, down 5.4%,
and consolidated net income totaling ¥81,693 million, down 4.7%, compared with the corresponding periodof the previous fiscal year.
Looking at the performance by business group, the FA Division posted consolidated sales totaling¥119,551 million, up 13.5%, the Robot Division posted consolidated sales totaling ¥111,351 million, up 1.5%,
the Robomachine Division posted consolidated sales totaling ¥68,774 million, down 23.6%, and the Service
Division posted consolidated sales totaling ¥45,275 million, up 6.5%, 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 theConsolidated Statement of Income.

2(2) Financial Position①

Assets, Liabilities and Net Assets
Total assets were ¥1,738,724 million, up ¥10,497 million compared with the end of the previous fiscal

year.
Total liabilities were ¥238,345 million, down ¥22,252 million compared with the end of the previous fiscal
year.
Total net assets were ¥1,500,379 million, up ¥32,749 million compared with the end of the previous fiscal
year.
We cancelled our treasury shares exceeding the 5% of the total number of issued shares (18,246 shares,¥163 million) on May 31, 2018 based on the shareholder return policy we announced on April 27, 2015.
(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¥727,364 million, up ¥1,461 million from the end of the previous fiscal year.

(Cash flow from operating activities)
Cash provided by operating activities during the six months ended September 30, 2018 amounted to¥119,058 million, up ¥6,916 million compared with the same period of the previous fiscal year. This was
mainly due to the decrease in receivables, trade.

(Cash flow from investing activities)
Cash used in investing activities during the six months ended September 30, 2018 amounted to ¥68,044
million, up ¥37,605 million compared with the same period of the previous fiscal year. This was mainly due tothe increase 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, 2018 amounted to ¥56,968
million, up ¥15,609 million compared with the same period of the previous fiscal year. This was mainly due tothe increase in dividends paid.

(3) Financial Results Forecasts
The robust short-term demand in the IT-related industry during the previous fiscal year is not expected at
this point in time. It is also anticipated that the situation will remain difficult and unpredictable in general, due
to uncertain factors including continuing trade friction between countries and its impact, as well as foreignexchange fluctuations.
The present forecast for consolidated financial results for the fiscal year 2018 is as follows:3For the fiscal year 2018 (April 1, 2018 through March 31, 2019)(Millions of yen)Previous forecast(released on
July 25, 2018)

New forecast

Comparison with
Previous forecast (%)

Net sales

637,400

626,000(1.8)

Operating income

159,400

150,900(5.3)

Ordinary income

173,800

165,300(4.9)

Net income

145,200

142,300(2.0)

Note: The currency rate applied to the period from October 1, 2018 to March 31, 2019 is averaged at 100
yen/US dollar and 120 yen/Euro.

(4) Interim Dividends
Our basic policy of distributing profits to shareholders, announced on April 27, 2015, is as follows.

1. Dividends

In order to further enhance the distribution of profits to our shareholders in the long term, we have decided to
implement a dividend payout ratio of 60% of our consolidated net income.

2. Share buybacks

We aim to buy back our own shares in a flexible manner depending on the level of our stock prices, taking
into account the balance with our investment in growth, and where the Five-Year Average Total Return Ratio
does not exceed 80%.
(Note) Five-Year Average Total Return Ratio means the ratio of the total combined amount of dividends
and the total amount of share buybacks, over the total amount of our consolidated net income for a
five-year period.

3. Retirement of treasury shares

We aim to limit the number of our treasury shares that we hold to a maximum of 5% of the total number ofissued shares. We will, as a general rule, retire any portion exceeding that limit every fiscal year.

4Since its announcement on April 27, 2015, we have carried out the distribution of profits to shareholders
based on the above policy. For interim dividends for this fiscal year, we will pay the amount equivalent to ahalf of the additionally required distribution amount (*) to realize a Five-Year Average Total Return Ratio of
the maximum of 80% for the period of the last five years including this fiscal year as special dividends inplace of a share buyback, in addition to the ordinary dividends of 60% of our consolidated first half net
income.
* (The total amount of net income for each fiscal year from the fiscal year ended March 31, 2015
to the fiscal year ended March 31, 2018 + the forecast net income for the fiscal year ending
March 31, 2019) × 20% - the total amount of share buybacks that were already carried out
in each relevant fiscal year.

As a result, interim dividends for this fiscal year are as follows:First half
Current period (fiscal year
ending March 31, 2019)
Dividends per share(¥252.87)(Special dividends)(¥345.32)(60.0%)(Special dividends)(81.9%)

Payout ratio(Forecast)(Forecast)

Undetermined

Undetermined――

141.9%(Ordinary dividends)(Reference)Previous period (fiscal year
ended March 31, 2018)
Dividends per share

Full year¥598.19(Ordinary dividends)

Payout ratio

Second half¥265.45¥297.75¥563.20

60.0%

60.0%

60.0%

5

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheet(Millions of yen)March 31, 2018

September 30, 2018

Cash and bank deposits

602,329735,492

Notes and accounts receivables, trade

175,460

119,526

Marketable securities

145,000

15,000Finished goods

71,68072,533Work in progress

56,40558,008Raw materials and supplies

22,03329,447

Other current assets

30,03020,321

Allowance for doubtful accounts(1,424)(1,192)

1,101,513

1,049,135

Buildings

230,204

274,528Land

143,036

145,146

Other, net

112,637

122,408

Total property, plant and equipment

485,877

542,082

7,064

8,007

Investment securities

89,94685,375

Others44,19854,531

(371)

(406)

133,773

139,500

626,714689,589

1,728,227

1,738,724

AssetsCurrent assets

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

6

(Millions of yen)March 31, 2018

September 30, 2018

52,901
46,466
7,047
83,68643,54031,576
7,571
84,382

Total current liabilities

190,100

167,069

Long-term liabilities
Net defined benefit liability
Other long-term liabilities

67,562
2,935

68,373
2,903

Total long-term liabilities

70,497

71,276

260,597

238,345

69,01496,26569,01496,265Retained earnings
Treasury stock, at cost

1,398,977(91,020)

1,422,796
90,964)

Total shareholders' equity

1,473,236

1,497,111

13,09011,779(619)(24,117)

7,640
23,445)(11,646)

4,026)

6,040

7,294

1,467,630

1,500,379

1,728,227

1,738,724

Liabilities
Current liabilities
Notes and accounts payables, trade
Accrued income taxes
Warranty reserves
Other current liabilities

Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus

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
Total net assets
Total liabilities and net assets

7

(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, 2017

Six months ended
September 30, 2018

Net sales
Cost of goods sold347,612
193,474

344,951
196,621

Gross profit

154,138

148,330

Selling, general and administrative expenses

46,742

49,902

Operating income

107,396

98,428Foreign exchange gains
Miscellaneous income

1,533
1,019
7,305
1,274
1,486

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

Total non-operating income

12,617

15,722

348

395

190
1,078

1,284
436

Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates

Non-operating expenses
Loss on sales and retirement of noncurrent
assetsRemoval expenses of noncurrent assets
Miscellaneous expenses
Total non-operating expenses

1,616

2,115

Ordinary income
Income before income taxes

118,397

112,035

118,397

112,035

Income taxes-current
Income taxes-deferred

36,554
4,162)

34,1083,991)

Total taxes and others

32,392

30,117

Net income

86,005

81,918242

225

85,763

81,693

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

8

Consolidated Quarterly Statement of Comprehensive Income(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

86,005

81,9183,510

1,311)

Foreign currency translation adjustment

6,896

10,813Remeasurements of defined benefit plans

3,829

672

(574)

2,404)

13,661

7,770

99,666

89,68899,50689,314160

374

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities

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 interests9(3) Consolidated Quarterly Statement of Cash Flow
(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

Cash flows from operating activities
Income before income taxes

118,397

112,035

Depreciation and amortization

15,90917,869124(214)

Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in net defined benefit liability(4,744)677

Interest and dividend income

2,552)

3,030)

Equity in (earnings) losses of affiliates, net

7,305)

8,068)(Increase) decrease in receivables, trade

4,662)

56,883(Increase) decrease in inventories

19,713)

6,648)

Increase (decrease) in payables, trade12,614

10,496)

Other

21,259(1,647)

Subtotal

129,327

157,361Interest and dividends received

7,600

11,014

Income taxes paid

24,818)(48,874)

33

(443)

112,142

119,058－(22,510)Other
Net cash provided by operating activities
Cash flows from investing activities
Payment into time deposits－

22,294Purchases of property, plant, and equipment

27,759)65,312)Other(2,680)(2,516)

Net cash used in investing activities

30,439)68,044)

Proceeds from withdrawal of time deposits

Cash flows from financing activities
Purchases of treasury stock

(151)

(107)

Dividends paid

40,554)57,746)

Other

(654)

885

41,359)56,968)

3,019

7,415

Net increase (decrease) in cash and cash equivalents

43,363

1,461

Cash and cash equivalents at beginning of period

774,761

725,903

Cash and cash equivalents at end of period

818,124

727,364

Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents10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:

None(4) Additional Information(Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.)
Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28 of
February 16, 2018) and other new rules have been applied since the beginning of the first quarter
ended June 30, 2018. “deferred tax assets” are reflected in “investments and other assets” and“deferred tax liabilities” are reflected in “long-term liabilities.”(5) Note on Premise of a Going Concern:

None(6) Note on the Substantial Change in Shareholders’ Equity:

None(7) Significant Subsequent Events(Return of substitutional portion of Employees’ Pension Fund)
The FANUC Employees’ Pension Fund enrolled in by FANUC CORPORATION, and received anotice dated October 1, 2018 to the effect that the return of the substitutional (past) portion of the
Employees’ Pension Fund was approved by the Minister of Health, Labor and Welfare.
Consequently, FANUC CORPORATION recognizes the extinction of the retirement benefit obligation
related to the substitutional portion of the Employees’ Pension Fund incidental to such approval, as
well as the gains incidental thereto, pursuant to paragraph 46 of the “Guidance on AccountingStandard for Retirement Benefits” (Accounting Standards Board of Japan Guidance No. 25). As aresult thereof, we are planning to book 24,968 million yen extraordinary income, gains on the returnof the substitutional (past) portion of the Employees’ Pension Fund, in the third quarter of the fiscal
year ending March 2019. The final amount is currently being calculated and may fluctuate.
As of October 1, 2018, FANUC CORPORATION has shifted from the previous system, Employees’
Pension Fund system, to Defined-Benefit Corporate Pension system, which is a new one.

11