Sustainability Report 2021

CON TEN T S
This "Sustainability Report 2021" is a PDF version of the information on the website as of October 2021.
The website may also be frequently updated from October 2021.
• General
Message from the President and CEO ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 3
Basic Principles / The Three Philosophies‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 4
Materiality ‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 5
ESG Promotion Framework ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 6
Dialogue with Stakeholders‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 7
Coordination with External Initiatives ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 8
Preventive Measures Against COVID-19 ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 9• Contribution to SDGs
Business and SDGs‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 14
FA Business‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 15
ROBOT Business‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 16
ROBOMACHINE Business‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 18• Social
Respect for Human Rights‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 22
With Our Customers‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 24
With Our Employees‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 41
With Local Communities ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 52
Supply Chain ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 54• Environment
Promotion Framework / Initiatives‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 62
Climate Change ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 69
Resources and Waste ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 76
Water‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 80
Biodiversity ‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 81• GovernanceCorporate Governance‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 85
Internal Control System ‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 86
Information Security‧‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 87
Intellectual Property ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 88
Tax Policy‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 89

Sustainability Information Guidelines Referenced• GRI Standards (Global Reporting Initiative)• Environmental Reporting Guidelines (2012 edition / 2018 edition) (Ministry of the Environment)• ISO26000

Sustainability Report 2021

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Sustainability Report 2021

GeneralSustainability Report 2021

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General
FANUC strives, through tireless technological innovation, to provide indispensablevalue globally in the factory automation domain.
We will continue to be a company trusted by all stakeholders, while contributing to
the solution of issues surrounding the global environment and society through ourbusiness activities.
Message from the President and CEO

Sustainable Communities and Our Stakeholders
In recent years, it seems that not a day passes without articles and columns in newspapers commenting on futurecommunities and the natural environment, such as those concerning SDGs, ESG investment, and carbon neutrality.
Both SDGs and ESG mean that we need to take action now for those who will live on earth in future. The same istrue for corporations, which operate as members of communities. This means that our future customers and, most
likely, all future generations are stakeholders of FANUC of the present day.
In the past, when we talked about stakeholders, we only took a view in the present expanse and, as a result,thought exclusively of customers, shareholders, suppliers, employees and local communities of the present.
Two years ago, the Statement on the Purpose of a Corporation made by the US Business Roundtable extended
corporate accountability from shareholders to stakeholders but still within the present expanse. Today, however,
if we are to become conscious of SDGs and of preserving the global environment, we need to recognize bothpresent and future generations.
My desire is that FANUC will always be a company trusted by our stakeholders. To that end, we need corporate
activities that are conscious of our future communities and customers as well as the ones of the present. Moreover,when we think about who the stakeholders are, we need a medium to long-term perspective that looks at who theones will be in our future.
In last year's sustainability report, I wrote that "SDGs cannot be achieved without an attitude of actively
taking public responsibility as a community member." This year, we will have to renew our recognition that our
stakeholders must include those who ‘live’ and ‘will live’ on this planet.
Last but not least, we sincerely hope that this information on sustainability will continue to fuel everyone’s
understanding and the growth for our company.

Kenji Yamaguchi
President and CEO
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Basic Principles / The Three Philosophies
Basic Principles“Strict Preciseness” and “Transparency” are the basic principles of FANUC.
Strict PrecisenessA company will last forever and be sound with strict preciseness.

Transparency
The corruption of an organization and downfall of a company start from a lack oftransparency.

The Three Philosophies

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Materiality
Materiality

Risks

Opportunities●The emergence of competitive products
utilizing new technologies may cause our
products to lose their core competence.

●We can maintain our superiority by
developing competitive products,
enhancing our services, and providing ourcustomers with attractive products.
●Creation of new markets through the useof new technologies also introduces new
business opportunities for FANUC toexpand its business domain and grow.

Maintain and improve
competitivenessResponse toenvironmental issues
Climate-related risks
and opportunities

Shrinking labor force
population

Building a governancesystem●Our factory may come to an almost
complete stop, if a large-scale disaster
happens in the area where the factory is
located.

●We have nearly finished establishingmultiple production sites for our CNC(computer numerical control) systems androbots, so that we can continue to serve
our customers, even in the event of a largescale disaster.

●Stricter environmental regulations on
resource conservation led by Europe, suchas reducing greenhouse gas emissions andmanaging chemical substance, may lead toincreased costs.

●We strive to provide highly dependable,high quality products that are “Reliable,
Predictable, Easy to Repair” and to minimize
downtime at our customers' factories by
putting “Service First”. In particular, theconcept of lifetime maintenance, which
embodies our commitment to continue
providing maintenance as long as ourcustomers continue to use our products,
has helped to reduce waste for ourcustomers around the world.

●The transition from internal combustion
engines to EVs powered by electricmotors, driven by measures taken by theautomobile industry to combat climatechange, may have a major effect on themarket environment for our main productsin the FA business.

●Leading the development of energy-saving
products and products high in energy
efficiency will provide opportunities toexpand sales of our products in developed
markets such as Europe. The transition
to EVs will broaden the range of robot
applications, and create opportunities toincrease product sales. The number of
sensors and cameras mounted to EVs will
grow, and is expected to stimulate theincrease in sales of ROBOSHOTs (electric
injection molding machine). Furthermore,
the demand for high-precision parts usedin EVs and the demand for molds for EV
components are both expected to increase.
This will boost the demand for machine
tools in this sector, leading to a higher
demand for CNCs.

●It may become difﬁcult to hire competentpeople.

●The rising need for automation in
manufacturing sites also represents anopportunity to expand the industrial robot
market, and will lead to the development ofsafe and secure work environments.

●There is a possibility that correct
management decisions will not be made, orthat decision-making will be delayed.

●Proper decision-making will be madepossible by establishing a governancesystem under which the roles andresponsibilities of the executive bodies (themanagement) are separated from those themonitoring bodies (the Board of Directors).

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ESG Promotion Framework
At FANUC, various committees conduct activities related to the factors of ESG, such as the environment, healthand safety, and compliance, with important matters being reported to the Board of Directors.
● Board of Directors
Approval of policies, approval of medium- to long-term targets● Risk Management Committee
Addressing risks that may adversely affect the business continuity, enhancement of the corporate value, orsustainable development of the business activities● Cyber Security Committee
Reinforcement of cyber security system● Compliance Committee
Checking the status of whistleblowing and discussing issues● ISO14001 Meeting
Decisions on environmental activity plans, formulation of medium- to long-term targets● Health and Safety Committee
Deliberations and decisions regarding basic policies and measures on health and safety

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Dialogue with Stakeholders
Stakeholders

Customers

Communication
methodFrequency

Sales representatives

As needed

Collect and provide feedback on demands and requests
to FANUC. In addition, give customers tours of factories
to enhance their understanding about new products anddevelopment schemes.
Cancelled tours of factories in 2020 due to the COVID-19
pandemic.

ServiceAs needed

More than 2,300 service and support staff members aroundthe world provide telephone support, onsite customer
support, and maintenance parts management.

Membership website

As needed

Answer customer inquiries by email and chatbot. In
addition, we enable customers to purchase maintenanceparts thorough our membership website.

New products open house
show

Every April

Invite customers and introduce our latest products.
Cancelled our new products open house show in 2020 due
to the COVID-19 pandemic.

As needed

Exhibit at trade shows in Japan and abroad to introduce
our latest products.
Exhibited at online trade shows in 2020 due to the
COVID-19 pandemic.

Labor union

At least twice amonth

Hold discussions, negotiations, and exchanges of opinions
through regular monthly meetings and committees,
quarterly meetings, and labor-management negotiations.
Conducted these activities online in 2020 due to the
COVID-19 pandemic.

Organizational performance
evaluation clinical system

Once every other
year

Listen to employee opinions from the perspective of
employee satisfaction, and use the PDCA cycle to discoverand resolve issues.

Annually

Report on business reports, consolidated and nonconsolidated ﬁnancial statements, and audit results, anddeliberate and make resolutions on matters to be resolved
after Q&A.

Quarterly

Hold brieﬁngs and telephone conferences on the contents
of ﬁnancial results and business forecasts, as well as
engage in Q&A sessions.
Cancelled in-person briefings, holding them insteadby telephone conference in 2020 due to the COVID-19
pandemic.

Individual dialogues withinstitutional shareholders

As needed

Explain FANUC's initiatives and governance, and exchange
opinions.
Cancelled in-person dialogues, holding them insteadby telephone or online conference in 2020 due to the
COVID-19 pandemic.

ESG disclosure

As needed

Publicize ESG activities, as needed.

Coexistence with
communities

As needed

Contribute to the revitalization of the local economy
through tax payments, job creation, and having businesswith local companies.

FA Foundation

As neededAward prizes to recognize research results on factory
automation (FA) and industrial robot technology.

Economic and industry
associations

As needed

Participate in the planning and implementation of various
initiatives by organizations.

Public-private joint projects

As needed

Participate in various public-private joint projects andpromote technical exchanges.

Exhibitions

Employees

General meeting ofshareholders

Financial results brieﬁng

Shareholders

Communities

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Coordination with External Initiatives
FANUC promotes partnerships with various organizations including public institutions and organizations inindustrial and academic fields, to realize sustainable development.

Public Institution
FANUC participates in the Study Group on Establishing an Industry-Academia Collaborative
The Consortium of Human
Framework for Human Resource Development, held by the Ministry of Economy, Trade and
Education for Future Robot
Industry, and has signed a memorandum to establish CHERSI, which will develop human resources
System Integration (CHERSI)
specialized in robotics.

New Energy and Industrial
Technology Development
Organization (NEDO)

FANUC participated in the Strategic Innovation Program for Energy Conservation Technologies
conducted by NEDO by submitting a research plan on the development of machine tools for realizing
energy saving, “R&D on Energy-Saving Machine Tools that Apply New Structural Materials”, jointlywith the Japan Machine Tool Builders' Association and other organizations and achieved the plan's
energy-saving targets through research extending over three years.

Economic and Business Associations
FA Foundation

This foundation was established for the purpose of giving awards for research achievements related
to FA (factory automation) and industrial robot technology. It is operated using the interest fromfunds donated by FANUC at the time of its establishment and subsequent donations by FANUC.

Japan Business Federation(KEIDANREN)

As a member of KEIDANREN, FANUC strives to resolve international issues and strengthen
economic relations with other countries through dialogue with concerned parties and attendance atcommittees, while complying with the Charter of Corporate Behavior.

Japan Machine Tool
Builders' Association

The Association is a comprehensive organization related to the machine tool business, which ismainly comprised of machine tool builders in Japan. FANUC's Chairman, Dr. Yoshiharu Inaba, serves
as its Chairman.

Japan Robot Association

FANUC is a regular member of the Association, which is an organization that encourages researchand development on robots and associated system products, and promotes the use of robot
technology.

The Japan Society ofIndustrial Machinery
Manufacturers

FANUC is a member of the Society, which is an organization that drafts and promotes measures toincrease productivity and to rationalize production structure in the ﬁeld of environmental equipment,
plastic machinery, and other industrial machinery.

Optoelectronics
Industry and Technology
Development Association

FANUC regularly participates in the Multi-Technology Integrated Optical Process Study Grouphosted by the Association.

Japan Forming Machinery
Association

FANUC participates in the drafting of relevant ISO standards as a member of this Association.

ROBOT Industrial BasicTechnology Collaborative
Innovation Partnership(ROBOCIP)

FANUC participates as a member of the ROBOT Industrial Basic Technology Collaborative Innovation
Partnership (ROBOCIP), in which robot manufacturers collaborate in basic technological researchof industrial robots, with the aims of broadening and deepening the scale and content of researchbeyond what could be accomplished independently as well as strengthening the foundation fortechnological innovation in line with the SDGs (Sustainable Development Goals).

Academic Associations
Participation in various
conferences

FANUC participates in academic societies of relevant ﬁelds to collect the latest technical information.
We actively participate in the Electric Discharge Machining Phenomena Basic Research Committeeof the Japan Society of Electrical Machining Engineers.
FANUC regularly participates in various workshops and symposiums held by the Japan Welding
Society.

Exchange of opinions with
universities

Every year, FANUC invites faculty members of several universities to its new products open houseshow in April, where we introduce our latest products and have the professors introduce the latest
technologies, targeting technical exchange.

Collaboration with
universities

FANUC collaborates with the University of Tokyo, Tokyo Institute of Technology, the University ofCalifornia, Berkeley (USA), RWTH Aachen University (Germany), Frankfurt International School,
Wiesbaden Campus (Germany), and other universities to conduct joint research and exchange
opinions. We also provide scholarship donations to help cultivate young researchers for the future.
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Preventive Measures Against COVID-19
Basic Approach
FANUC strives to work together with our various stakeholders, including employees, customers, business partners, and shareholders.
We have also implemented multiple countermeasures to ensure the safety of our stakeholders and prevent the spread of COVID-19.

Promotion Framework
We have established a COVID-19 Pandemic Control Headquarters in February 2020, headed by the President and CEO, to decide ontransmission prevention measures in response to requests from the national and local governments.
Various information, such as company decisions, awareness raising, and calls for caution are communicated to employees through aspecial page created on the internal portal website.

Initiatives
Ensuring Employees' Safety
FANUC strives to ensure the safety, jobs, and income of our employees and provide a workplace environment in which they can workwith peace of mind.
● Early repatriation of employees stationed in countries with a high risk of transmission, Procurement of face masks and distribution
free of charge to employees on a global scale● Distribution of face masks and spray bottles of disinfectant free of charge to employees● Health checks for all employees of the entire company using the internet and smartphone apps (temperature/healthcondition/3Cs*1/attendance status), Thorough insistence that employees take leave (treated as legal holidays) if they are unwell● Company-wide transmission prevention measures (Adoption of staggered working hours/telework/shift work, Restriction ofbusiness travel, Use of online meetings)● Provision of special days off (treated as legal holidays) for employees who need to look after their children due to school closures or
who are pregnant● Temporary closure of welfare facilities, Awareness raising among individual employees about transmission prevention measures(Wear face masks, Maintain social distancing, Avoid the 3Cs, Wash/sanitize hands)● Conduct workplace vaccinations against COVID-19*1
Closed spaces with poor ventilation
Crowded places with many people nearby
Close-contact setting such as close range

Workplace Layout Changes
We are working to create safe workplaces by changing layouts and other means, to ensure the safety of our employees. Given thepredictions that it will take considerable time to halt the spread of the virus, we have made improvements to ventilation in our various
facilities and are taking other measures as necessary.
1.The air change volume of all rooms, including offices and other workspaces, was checked and, based on that information, thecapacity of each room was calculated, and each business location was notified.
As an immediate action in response to these notices, the business locations promptly reviewed their room capacities and madechanges to workspaces, such as moving some desks to other rooms.
As a medium term response, desk layouts were reviewed to ensure social distancing, and environments to prevent transmission
through droplets were established, including installing partitions.
Work styles were changed in ways that were conscious of the effectiveness of ventilation, with doors to private offices left open.

Before Measurement

After Measurement

2.Because the smoking rooms set up to keep smoking and non-smoking areas separate are close to a 3Cs situation, all smoking
areas throughout the company were moved outdoors.
3.The number of seats in the staff cafeteria was reduced and the table layout was changed, so that employees can avoid sitting
directly across from each other. Staggered lunchtimes were introduced to allow employees to use the cafeteria in shifts.

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Recruitment Activities during the Pandemic
For the recruitment selection process, face-to-face interviews on site at company premises were replaced by online interviews.
● For the recruitment of new graduates, in normal years, students are asked to come to company premises for a factory tour. These
tours were cancelled this year and online meetings (Q&A sessions) were held in its place● Welcome ceremony was cancelled● Larger venues were used for group education sessions to ensure social distancing
The venue was thoroughly disinfected, and sanitization of hands was enforced prior to entering the venue● New employees were given a health checkup before being assigned to their respective workplaces to confirm their COVID-19
status● Employees moving into staff dormitories were asked to take their temperature every day, even before they started working at thecompany● New employees who had traveled overseas on a graduation trip or for other reasons were instructed to self-isolate at home for acertain period before starting at the company

Responses for Expatriate Employees● Immediate temporary return to Japan at company expense● Arrangement of transport (company bus or a chauffeur-driven hired vehicle) from airport for temporarily repatriating employees● Assistance with daily life requirements for employees and their families who returned to Japan temporarily (company housing,furniture, home appliances, car rental, etc. provided free of charge)● Communication as needed of information about border control measures against COVID-19 taken in Japan● Assistance with various procedures for return to overseas business locations

Responses for Customers
Although sales activities, service activities, various training courses, and the like were restricted due to the pandemic, we enhanced
remote support responses (such as molding training) to ensure that we could continue to provide support to our customers' factories
amid the pandemic. In response to the new normal era created by COVID-19, we are promoting new styles of service, such as remotediagnosis and online support, as a project for service DX. Our first step was to launch FabriQR Contact, a contact service using QR
codes, in Japan in October 2020.

Response at FANUC ACADEMYFANUC ACADEMY, which supports customers' technology acquisition, established an eACADEMY. The Academy developed two
types of online training to accommodate the new normal - live seminars and on-demand seminars - and began offering them in June
2020. The eACADEMY, which enables customers to choose the training method that best suits their needs, eliminate the 3Cs, andstudy advanced content efficiently online, is truly an organization for the times. As well as current trainees, new groups of trainees
have participated in its courses. On the other hand, after the lifting of the national state of emergency, which had been declared in
April 2020 in the face of the spread of COVID-19, face to face workshops were resumed with thorough infection prevention measures
put in place in compliance with the government policies. Thorough precautions were taken, including avoiding crowding of trainees
in the classroom and providing their dedicated training machines, to give the trainees peace of mind while they were acquiring thetechnology.

Responses for Supply Chain
Due to the impact of COVID-19, from around February 2020, various complications emerged, such as the closure of our suppliers'
production factories and delays in deliveries caused by disruptions to distribution. These complications made it difficult to obtain
parts that we had been procuring from certain parts of China. The impact was not limited to China, later extending to the Philippines,
Malaysia, and the entire world, making it difficult to obtain many parts.FANUC immediately set up the Disaster Response Team,
comprising members selected in advance from the Research & Development Division, Production Department, and Purchasing
Department, and responded to this problem companywide. Various measures were taken, including identifying those parts that weremost difficult to obtain, confirming procurement from second suppliers, adopting and confirming alternative parts, and avoiding
delivery delays by switching the manufacturing processes at company factories. As a result, we have been able to maintain a stablesupply of our products to our customers.

Responses for Business Partners
In normal times, meetings and negotiations with business partners would take place in person, but these are currently conducted
online, allowing staff to avoid travel by car or train. In terms of buildings and facilities, workers from construction and installationcompanies attending our facilities to inspect and repair equipment and machinery were asked to have their temperature checked andto confirm their health status. When the national state of emergency was declared, we temporarily suspended all construction work inprogress.

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Education and Training in the Service Division
The Service Division conducts education and training for service personnel. At FANUC, we believe that improving the level of theservices provided by our service personnel is of utmost importance. As such, we are working to provide high-quality services globally
through the education and cultivation of our service personnel.
In addition to etiquette training for all new employees, we strive to further improve customer satisfaction by giving consideration topersonal appearance, behavior, and speaking manner, based on the Service Engineer Code of Conduct.
In fiscal 2020, due to the COVID-19 pandemic, we were unable to gather at the Hino Branch and conduct our usual introductory
training for new employees in accordance with the group education plan.
In fiscal 2021, we set up a videoconferencing system available at all times in one of the classrooms at FANUC ACADEMY of FANUC
Headquarters, allowing the Hino Branch and FANUC ACADEMY to view each other’s activities. In addition, we provided all new
employees assigned to the Service Division with a tablet and laptop computer immediately after they joined the Company, and they
undertook a learn-from-home program online in the staff dormitory or other residence.
We provided our new employees with basic knowledge by sharing with them the e-learning content produced by FANUC ACADEMY
and other resources prepared in-house by the individual departments.
Currently, new employees watch the e-learning content in their free time for preparation and review.
Similarly, in terms of technical education, safe driving education, and lessons on safe work operation for service personnel in Japan,
we conducted online education by connecting FANUC Headquarters and the various service locations throughout Japan.
We maintain a high level of service overseas by using videoconferencing systems to provide overseas service personnel witheducation and training on maintenance technology for the latest models of our products.

Contributions and Donations to the Community around FANUC Headquarters
In 2020, FANUC supported the “Let's Cheer Up Healthcare Workers! Donation Project for COVID-19 Countermeasures” organized by
Yamanashi Prefecture, and donated ¥50 million as part of support for COVID-19 countermeasures.

We also donated face masks to the government of Yamanashi Prefecture, where FANUC Headquarters is located, and to Fujiyoshida
Municipal Medical Center.

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Sustainability Report 2021

Contribution to SDGs

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Contribution to SDGs
FANUC operates the businesses of FA, ROBOT, and ROBOMACHINE, as well as the IoT business that improves
these three businesses. Since its foundation, we have developed a tough corporate structure by focusing on thesebusinesses, without blindly seeking to expand the scale of its business. And we aim to remain a company trusted
by stakeholders by working to provide essential value to not just customers but also to society through persistenttechnological innovation in all of our businesses and fulfilling our social responsibility through our businessactivities. Demand for factory automation is expected to continue to grow. FANUC will continue to aim to achieve
SDGs by creating new value and working to resolve environmental issues such as climate change and other social
issues including the need to improve work environment.

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Business and SDGs
FA Business (Basic Products)
Basic products FANUC provides basic products that enablefactory automation, such as CNCs, which control the operationof machine tools with numerical information, servos, which
control speed and position, and laser oscillators, which areused for welding and cutting. In developing these products,
we aim to improve productivity in our customers’ factories withenergy saving, enhanced safety, and higher performance.

ROBOT Business (Applied products)
Various tasks can be automated by applying the basic
technologies of CNCs and servos freely controling robot arms.
We contribute to improving work environments by releasing
workers from dangerous, dirty, and difficult jobs and enhance
the stability of product quality by enabling longhour, consistent,
and continuous production. In addition, we contribute to themaintenance and growth of factories around the world bycompensating the shrinking labor pool, such as by developing
robots that can work in collaboration with humans.

ROBOMACHINE Business (Applied products)
FANUC is developing compact machining centers, electric
injection molding machines, wire electric discharge machines,
and ultra-precision machines that apply the basic technologies
of CNCs and servos. We contribute to improving the
productivity of our customers by pursuing superior machining
performance, operating rates, and ease of use.

Contribution to efforts to achieve 17 SDGs and 169 targets

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FA Business● Products○ CNCs, servos, lasers● Strengths○ FANUC's basic technology○ Top-level global market share of CNCs (FANUC estimate)

Business Overview
The FA business is the origin of FANUC and its basic technology. FANUC is the first private-sector company in Japan to havedeveloped numerical control (NC) and servo technologies that control machine tools using numerical information. Until then, highly
skilled engineers, who have acquired know-how through many years of training, were indispensable for high-precision processing
by machine tools. FANUC made it possible to complement skilled engineers’ skills with NCs and servos. Computer-controlled NCs(CNCs) and servos further made it possible to process complex shapes and produce varied items efficiently. Currently, FANUC offers
CNCs and servos covering a broad range from simple machine tools to composite machining equipment with complex configurations
to industrial machinery. Further, demand for introduction of robots in machine tools is increasing at machining sites, with an aim toautomate processes or labor saving. Believing improved compatibility between machine tools and robots is important, FANUC isdeveloping the functions to enhance it.

Value Created by FA Business
High-machining performance CNCs and high-speed, high-precision servos contribute to improved productivity as they enable more
precise, higher-speed machining. We have implemented energy saving features in our servos. Laser products contribute to improving
quality of products of users with their high-quality machining capability supported by FANUC's CNCs and servos installed in them. It isessential to improve operating rates for improving productivity of factories. In order to avoid extended suspension of production lines
due to machine trouble or emergency maintenance work, we attach importance to functions and designs for preventive maintenance.
Factory operation at high operating rates becomes possible through monitoring of insulation resistance of motors, drops in thenumbers of rotations of fan motors for CNCs and servo amplifiers, etc. and conducting preventive maintenance in advance of a halt of
the machine.

Ensuring Customer Safety
It is important to help operators not used to operating machines use FANUC products safely, as the numbers of people working in the
manufacturing industry and highly skilled engineers are expected to decrease. FANUC’s products are compliant with safety standards,
including the ISO/IEC standards, and certified by accreditation organizations. In addition, sufficient attentions are paid to safety use as
CNCs are equipped with functions to suspend operation upon receiving an alarm in case of operational errors.

Areas of contribution to environmental/social issues● Measures to address decreases in working population and highly skilled engineers● Improvement of customers' productivity● Energy saving in customers' factories● Waste reduction in customers' factories● Improvement of work environment in customers' factories

Sales of FA business

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ROBOT Business● Products○ Robots● Strengths○ Products applied with CNCs and servos, FANUC’s basic products○ Top-level global market shares (FANUC estimate)

Business Overview
FANUC exclusively targets industrial robots, instead of service, medical, or entertainment robots. We concentrate on helping customers
automate or robotize their factories and contributing to improved productivity. Our industrial robots, which include types for welding,material handling (transportation of articles), assembly, and painting, according to application, are used in wide-ranging industries, including
automotive, electronic parts, logistics, food, pharmaceuticals, and cosmetics. FANUC’s industrial robots are general-purpose robots and usedin many industry sectors.

Value Created by ROBOT Business
Robots help solve a variety of issues society is facing. Robots, which perform strenuous work as programmed even under harsh environment,
release workers from dangerous, dirty, and difficult jobs. Robots can also improve productivity and reduce night shift for workers as they can
perform precise work over a long time at a certain speed, even at night. COVID-19 outbreaks occurred in 2020. In such a time, robots canhelp protect health and safety of people by substituting some workers to allow them to avoid the “Three Cs” (closed spaces, crowded places,
close-contact settings). Introducing Zero Down Time (ZDT), a preventive maintenance and problem prediction using IoT, can service robots
before they break down, helping to avoid extended suspension of a production line just because of trouble in a single robot. Robots thus
not only promote automation and robotization of factories and contribute to improved productivity but also help improve work environment,
ultimately achieving improved productivity in labor-intensive industries through technology, a target of SDGs.

Robots for a new age
The market of “collaborative robots,” which can work alongside human workers, is growing. As collaborative robots automatically stop safely
when touched by humans, they do not require safety fences. By assisting work alongside human workers, operators can avoid strenuous
work and workers whose physical power is weak can work safely. The CRX series, light-weight collaborative robots FANUC announced in
December 2019, are a new type of collaborative robots developed to achieve thorough ease of use for customers. As these products are light,
you can carry and install them without using a crane. The manual guided teaching feature that allows users to directly move the arm by hands
enables intuitive robot operation. Users can design teaching programs in a smartphone-like operation, using drag-and-drop operation on atablet device they are familiar with. The robots, designed with an aim to create an appearance that coexists with humans, make workers feelsafe. They are robots for a new age, equipped with a safety feature that stops itself when touched and maintenance-free, high reliability.

Targeting Expanding Robot Market
According to statistics by the International Federation of Robotics, the number of industrial robots in operation has increased year by year andis expected to continue to grow. FANUC develops robots that can help solve issues faced by society and as measures to improve productivityof customers’ factories and address decreases in working population and highly skilled workers.

TOPIC
The CRX series, light-weight collaborative robot won triple award: “Minister of Economy, Trade and Industry Award at the Ninth Robot
Awards”, “Nikkei Sangyo Shimbun Award in the 2020 Nikkei Superior Products and Services Awards” and “2020 the 63rd Nikkan Kogyo
Shimbun Ten Great New Products Awards Main Prize.”“FANUC Robot R-2000 i D/210FH,” a product with cables integrated into its arm and featuring a good balance between design and function,
won “Nikkei Sangyo Shimbun Award for Excellence in the 2019 Nikkei Superior Products and Services Awards” and “2019 the 62nd Nikkan
Kogyo Shimbun Ten Great New Products Awards Main Prize.”

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Areas of contribution to environmental/social issues● Measures to address decreases in working population and highly skilled engineers● Improvement of work environment in customers' factories● Improvement of customers' productivity● Energy saving in customers' factories● Waste reduction and effective use of resources in customers' factories

Sales of ROBOT business

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ROBOMACHINE Business● Products○ ROBODRILLs (compact machining centers)○ ROBOSHOTs (electric injection molding machines)○ ROBOCUTs (wire electric discharge machines)○ ROBONANOs (ultraprecision machines)● Strengths○ Products applied with CNCs and servos, FANUC's basic products○ High precision performance, high operating rates, easy to use○ Top-level global market share of ROBODRILLs (compact machining centers) (FANUC estimate)○ Top-level global market share of ROBOSHOTs (electric injection molding machines) (FANUC estimate)

Business Overview
Products of the ROBOMACHINE business are comprised of machine tools or industrial machinery installed with FANUC's CNCs andservos. They are used for production in factories of machine users. They are all highly compatible with FANUC robots. Factory automation isenhanced through the combination of ROBOMACHINEs and robots.
Machine users can improve quality of their products and shorten the time it takes for machining by using FANUC's highly reliable, highperformance ROBOMACHINE products. The products will contribute to improved productivity of machine users' factories.
Furthermore, a function to monitor the operational status of the entire factory in real time will enable designing of more precise productionplans and improvement in operating rates (ROBODRILL-LINi, ROBOSHOT-LINK i, and ROBOCUT-LINK i ).
ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses supporting businesses rationalizing energy use inproduction equipment, allocated in the fiscal 2019 supplementary budgets in recognition of their energy saving potential. Furthermore,
ROBOSHOTs became eligible for a subsidy for business expenses supporting promotion of advanced energy-saving investments, allocated in
the fiscal 2021 supplementary budgets in recognition of their energy-saving potential. ROBOMACHINE products are used in the production of
medical instruments, including syringes and artificial bones, contributing to efforts to achieve a goal among SDGs of securing healthy life.

Value Created by ROBODRILLs
ROBODRILLs are compact machining centers. They are used for machining metal materials, such as iron and aluminum, with tools and for
drilling holes.
The products have superior machining performance for their compactness and contribute to making production equipment smaller andsaving energy. They improve production efficiency by thoroughly reducing redundancy in machines' operation, and achieve more stablemachining through the use of AI thermal displacement compensation function. These features help improve machine users' product quality
and productivity.

Value Created by ROBOSHOTs
ROBOSHOTs are electric injection molding machines. They form melted plastics, etc. into shapes by casting them into metal molds. Many
components used in daily lives, including mobile phone components, auto parts, and medical instruments, are made using injection molding
machines.
FANUC's products can perform more precise and stable molding thanks to the highly-rigid and low-friction mechanism and contributeto manufacturing of high value-added precision molded products. AI backflow monitor helps estimate the amount of wear on backflow
prevention rings, allowing for replacement of components at optimum timing. This contributes to reducing molding defects and improving
operating rates.

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Value Created by ROBOCUTs
ROBOCUTs are wire electric discharge machines, which use discharge
phenomena between wire electrodes and the workpiece to perform machining.
They can perform machining on anything from thin boards to ultrahardmaterials, which are difficult to process for cutting tools, into complex shapes
as long as the material is conductive, regardless of its hardness.
By achieving stable machining through the use of the AI thermal displacementcompensation function, these products contribute to improving machine users'
product quality. The automatic wire feeding (AWF3) can automatically recoverfeeding when a wire is accidentally cut and disconnected during machining,
thereby enabling unmanned operation for long periods. These featurescontribute to improving operating rates.

Value Created by ROBONANOsROBONANOs are ultra-precision machines that challenge the boundaries of machining by realizing a 0.1 nm programming command,
combining FANUC's latest CNC and servo control technologies. The machining and lathe types of ROBONANO address nano-level machining
needs in the areas of optical electronics, clocks, biotechnology, and healthcare.

TOPIC
In the latest model of the ROBOSHOT α-SiB Series, we have introduced a 21.5-inch-wide display screen (PANEL iH Pro), the largest of its kindin the industry, which enables simultaneous display via a unique divided screen, offering both superior operability and visibility. Furthermore,
we have adopted a fully enclosed cover style for the injection unit, which is the only one of its kind in the industry, realizing safety, operability,
and maintainability. In recognition of these innovations, we received the “51st Industrial Machinery Design Award IDEA: The Japan Society ofIndustrial Machinery Manufacturers (JSIM) Award.”

Areas of contribution to environmental/social issues● Measures to address decreases in working population and highly skilled engineers● Improvement of customers' productivity● Energy saving in customers' factories● Ensuring healthy life through provision of healthcare products

Sales of ROBOMACHINE business

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Sustainability Report 2021

SocialSustainability Report 2021

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SocialFANUC contributes to the development of its customers' businesses and the manufacturing industry, by promoting
the automation and robotization of customers' factories. In addition, our employees, who support FANUC's
corporate activities, are also regarded as important stakeholders.
FANUC gives due consideration to people and society, while contributing to the creation of an afﬂuent society as
well as its sustainable development.

Policies
� FANUC Code of Conduct� Human Rights Policy
� CSR Procurement Policy

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Respect for Human Rights
Basic Approach
At FANUC, we respect the human rights of all persons involved in our business, based on the understanding that it is the basic
principle of all activities, in accordance with our Human Rights Policy.
In addition, the FANUC Code of Conduct prohibits “discrimination based on race, beliefs, gender, social status, religion, nationality,
age, mental or physical disability, sexual orientation, sexual identity, etc.”
We ensure that employees do not infringe the human rights of others through harassment prevention education and line-care training.
� Human Rights Policy
� FANUC Code of Conduct

Laws and International Norms of Behavior
FANUC respects human rights as deﬁned in international norms, such as the Universal Declaration of Human Rights, the International
Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, and the International
Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, in accordance with the guiding principles on
business and human rights.

Human Rights Due Diligence
The following items will be addressed as priority issues.

Prohibition of Discrimination●Prohibition of discrimination based on gender, age, nationality, ethnicity, race, place of origin, religion, beliefs, disability, sexual
orientation, sexual identity, etc.

Respect for the Rights of Workers●Ensuring employee health and safety●Prohibition of all forms of harassment●Prohibition of child labor and forced labor●Respect for the rights of foreign and migrant workers●Respect for freedom of association and the right to collective bargaining●Prevention of low-wage labor (labor less than the minimum wage and living wage)●Prevention of excessive amounts of overtime

Respect for the Rights of Vulnerable People●Respect for the rights of local and indigenous peoples related to our business●Respect for the rights of women, children, persons with disabilities, minorities, and the elderly●Avoiding complicity in conﬂicts and human rights violations relating to mineral procurement

Protection of Privacy and Personal Information●Respecting the privacy of customers, employees, and other parties concerned, and protecting personal information
FANUC will evaluate and identify potential and actual human rights risks and implement measures to avoid or reduce such humanrights risks.
We will encourage our business partners and related parties not to infringe human rights if they have a negative issues on humanrights.
When it is clear that our business has caused or has engaged in any violation human rights impacts, we will endeavor to implement
remedies them, and will establish a grievance system as necessary.

Promotion Framework
A helpdesk has been established in both the Human Resources Division and the labor union to provide advice across the entire
company. A helpdesk has also been set up in the Welfare Department of the Human Resources Division, led by the executive
employees in charge (one male and one female). This helpdesk offers advice on all forms of human rights-related harassment,
including sexual harassment, maternity harassment (harassment related to pregnancy, childbirth, child-care leave, etc.), and power
harassment. The existence of this helpdesk is being widely advertised through the company-wide portal site. We have established aframework to respond to inquiries from employees and offer advice.
In these consultations, due attention is given to the protection of privacy, and consideration is given to ensure that anyone seeking
advice and anyone who is involved in confirmation of the facts of the matter are not subjected to unfavorable treatment. Based on
confirmation of the facts, the consultations are handled by the parties concerned, taking confidentiality into account, and appropriate
measures are taken. In this way, we strive to improve the workplace environment to make it a more comfortable place to work.
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Harassment Prevention Training for All Employees
Harassment in the workplace is not only an act that unjustly harms the dignity and character of the individual, but it is also an
absolutely unforgivable act that damages the workplace environment.
FANUC strives to prevent harassment, with the aim of achieving workplace environments in which all employees can maintain goodmental and physical health and work energetically with peace of mind.
Our efforts to establish workplace environments that will not give rise to harassment include harassment prevention training on
an e-learning platform, group harassment-prevention training for executive employees, company-wide preventive measures, andfostering understanding of diversity.
We post examples of harassment and the company’s responses on the company-wide portal site to thoroughly raise awarenessamong employees.

Communication and Education●We thoroughly inform all employees and our group companies of our human rights policies.
●Communicate with relevant stakeholders on measures against risks and impacts on human rights.
●We will appropriately disclose and report information on our Human Rights Policy and related initiatives.

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With Our Customers
Basic Approach
The three philosophies of FANUC are comprised of “one FANUC”, “Reliable, Predictable, Easy to Repair”, and “Service First”. FANUC
contributes to the manufacturing industry around the world by conforming to, and practicing these philosophies.
In development, FANUC focuses on ensuring its customers` safety and enhancing their productivity.
FANUC strives to enhance the quality, safety, and reliability of its products, and has established a quality management system toward
this end.
FANUC provides lifetime maintenance to its products for as long as they are used by customers, through more than 260 service
locations throughout the world. In addition, FANUC strives to improve customer satisfaction through the provision of training courses
at FANUC ACADEMY and support at the time of product installation.

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With Our Customers

Improving Customer Productivity
FANUC pursues the automation and robotization of our customers‘ factories as well as their high efﬁciency. FANUC has realized ahigh operating rates by analyzing failure information regarding our products, and conducting ongoing research and development toenhance reliability.

FA Business
FANUC provides highly reliable CNCs, servos, and lasers, which constitute the basic technologies of FANUC. As well as improvingease of use for machinery manufacturers, we also enhance end users' productivity by improving performance and save space byreducing the size of devices.
In addition, we contribute to improving the quality of end users' products by achieving high-quality machining. The manufacturingof a variety of industrial products using machine tools equipped with FANUC's CNCs and servos contributes to an efﬁcient society,including the manufacturing industry.

Developing a simulation
function

The development of CNC simulators such as CNC GUIDE has made it possible to provide education
on machining programming, among other topics, even in the absence of actual machine tools. This
leads to the improvement of educational efﬁciency at training sites in the manufacturing industry,
as well as a reduction in the required number of units of training machinery and equipment, thereby
helping to reduce resources.
In addition, the prior detection of program errors in machining programs can reduce the number ofdefects caused by machining errors in actual machining. This reduction enables cost cutting as aresult of curbed power consumption at the time of performance of relevant tasks (such as regulardisposal of cutting chips) and machining, because it reduces the amount of cutting chips andcoolant discharged.

Developing customizable
functions

Since the structures and functions of the machine tools provided by machine tool builders, who
are our customers, differ, the required operating screens and control functions also vary. The
development of functions allowing customers to easily customize tasks, such as designing displays
and controlling signals, enables each customer to provide operators with operability suited to theirown machines.

Servo Learning Oscillation

The biggest obstacle to automating turning is that long chips become entangled in the workpiece ortool during turning or drilling. In addition, such long chips are difﬁcult to discard. This function solves
these issues by shredding chips during turning or drilling, mitigating problems such as damage totools and defective machining.

Fast Cycle-time Technology

This is a group of functions that reduce machining time. Through optimization of the actualmachining operations of the machines as well as a reduction in non-machining time, the overallmachining time is shortened and the operating rates of the machines is improved.

SERVO GUIDE,AI Servo Tuning

We provide our customers, manufacturers of machinery, with support tools to easily realize high-leveltuning of parameters to control the servo motor. The inclusion of an AI-based tuning support function
improves the machining performance of machine tools.

AI Servo Monitor

Using data from servo motors, the AI can detect signs of malfunctioning spindle axes and feed axesof machine tools without requiring a separately installed sensor.
The AI servo monitor recognizes damage to spindle axes as an anomaly score, making it possible toprevent sudden malfunctioning of machine tools.

iHMI

iHMI provides a user interface that simpliﬁes the operations of the operator who is the actual user ofthe machine tool.

MT-LINKi

With MT-LINK i, it is possible to identify machining processes that may constitute bottlenecks in the
production line, by knowing the operational status of the machine tools installed in the factory. Thisfacilitates process improvement.

Fine Surface Technology

This CNC and servo control technology realizes high-quality machining. This technology can reduce
the quantity of work in subsequent processes, such as polishing the machined surface, and enables
reduced friction in components used in the manufacturing of automobile parts. This results inenhanced automobile quietness, and solves problems such as noise.

Failure diagnosis function
Preventive maintenancefunction

The failure diagnosis function provides guidance when warnings and alarms are issued, whichindicates the cause along with countermeasures, thereby shortening recovery time, as well as apreventive maintenance function that detects signs of failure, thus reducing machine downtime.

Improving spindle motor
outputBy molding the stator with highly thermal conductive resin to improve cooling performance, theoutput of the spindle motor can be increased without changing its size, thus contributing to theimprovement of the machining performance of machine tools.

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CNC and highly reliable lasers that have highly synchronous connections between robot axis control
and laser output commands enable pinpoint laser irradiation, for the realization of machining with an
exceptionally high degree of precision.
Highly Reliable and Easy-toFurther, the combined application of the many laser machining functions that we have built up overuse Products
the years, such as laser-power control that controls laser output according to machining speed,dramatically improves the speed, precision, and quality of machining and ease of use and raises ourcustomers’ work efficiency.

ROBOT Business
Robots which utilize the basic technologies of CNCs and servos relieve workers from dangerous, dirty, and difﬁcult jobs byperforming tasks that were previously handled by humans. At the same time, robots revolutionize work styles, such as by reducing
work hours and eliminating night shifts. Through the development of intelligent robots using visual sensors and force sensors, theareas in which robots can be used are expected to expand.
In addition to automating production lines and enhancing efﬁciency, the utilization of robots improves and stabilizes product quality,
as they can continue consistent production over long periods.

Saving space

The Robot R-2000iD, which is frequently used in spot welding and handling applications, has afootprint that is 23% smaller than those of conventional models.
Our wide range of models can be mounted in a variety of conﬁgurations, including on shelves, walls,
and ceilings, and save space by optimizing the factory layout.

Reducing robot cycle time

FANUC has acquired a patent for the world’s ﬁrst practical learning robot. For example, in aconventional car body welding line, the utilization of 30 robots reduced cycle time by 10.2% after
learning.

Improving cost efﬁciency

An automatic guided vehicle (AGV) equipped with a collaborative robot can move autonomously,
allowing a single robot to work at multiple locations, and improves the operating rates of the robot inprocesses with long cycle times.

Automation system design
support tool

The use of ROBOGUIDE, a software that automatically calculates the optimal layout of machines androbots, can reduce the time for trial and error required to design an automation system.
Optimizing the operating program using ROBOGUIDE reduces cycle time.

Reducing downtime

Zero Down Time (ZDT) is a “predictable” function that alerts users before failure and improves
productivity by reducing the downtime in factories. ZDT is connected to more than 20,000 robots
around the world, and has prevented more than 1,300 downtime cases.

Remote monitoring ofoperation

A robot's teach pendant screen can be viewed from a remote PC via a network. Accordingly, theoperating conditions of many robots can be conveniently checked from the ofﬁce, eliminating theneed to make rounds of the factory to inspect the operating conditions of each robot.

Software Provision
Platforms

With the new collaborative robot CRX, we have established a platform in which customers candownload the latest software from our website and update it as needed by themselves, eliminating
the need for our service personnel to attend customers’ factories to set it up. This enables ourcustomers to operate their machine tools with the up-to-date software at all times.

Reducing equipment costs

The 7-axis Robot P-1000iA, used for painting automobile bodies, contributes to drastically reducing
the size of the paint booth compared to the use of conventional 6-axis robots. It is possible to greatly
reduce initial costs when a paint booth is built as well as running costs such as air-conditioning.

Awards on ROBOT Business

Triple award winner (2020): Minister of Economy, Trade and Industry Award at the Ninth Robot Awards; Nikkei
Sangyo Shimbun Award in the 2020 Nikkei Superior Products and Services Awards; and the 63rd Nikkan Kogyo
Shimbun Ten Great New Products Awards Main Prize
FANUC Robot CRX-10iA

2019 Winner of double awards (2019): Nikkei Sangyo Shimbun Award for Excellence in the 2019 Nikkei Superior
Products and Services Awards/62nd Nikkan Kogyo Shimbun Ten Great New Products Awards Main Prize
FANUC Robot R-2000iD/210FH

Winner of double awards (2018): Minister of Economy, Trade and Industry Award and Minister of Internal Affairs
and Communications Award at the Eighth Robot Awards
Zero Down Time (ZDT)

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ROBOMACHINE Business
FANUC provides four product groups, consisting of ROBODRILLs (compact machining center), ROBOSHOTs (electric injection
molding machine), ROBOCUTs (wire electric discharge machine), and ROBONANOs (ultra-precision machine), which utilize thebasic technologies for CNCs and servos. All of these product groups boast high performance and high operating rates, and help ourcustomers adopt IoT in their factories.

Saving space

Compact ROBODRILLs with high machining performance provides the beneﬁts of both saving
factory space and increasing ﬂexibility in terms of factory layout.

Reducing machining time

ROBODRILLs shorten cycle time and achieve high productivity by thoroughly reducing idle time,such as the time required to change tools, by executing tool changes and table positioning
operations concurrently. In addition, we are proactively expanding compatibility with new machining
methods using special tools.

AI backﬂow monitor

ROBOSHOTs leverage AI to evaluate and predict wear on expendable parts (backﬂow preventionring), and conduct “predictable” preventive maintenance. This makes visual inspections, which is theconventional way to conﬁrm wear, unnecessary, thus reducing the workload.

Multi-functionalizing
standard models

A second injection unit was developed for ROBOSHOTs. With this unit, molding of two types of resinmaterials with different functional requirements is made possible with in a single mold achieves highvalue-added molding with less man-hours in the assembly process.

AI thermal displacementcompensation function

Fluctuations in cutting accuracy caused by changes in the temperature of ROBOCUTs are predicted
and controlled using AI technology. As a result, compensation accuracy improved by roughly 30%
compared with the conventional models.

High reliable auto wire
feeding (AWF3)

The ROBOCUT features highly reliable automatic wire feeding that can automatically recover feedingwhen a wire is accidentally cut and disconnected, thereby enabling unmanned operation for long
periods.

ROBODRILL-LINKiROBOSHOT-LINKiROBOCUT-LINKi

Monitors the operating status of the entire factory in real- time and supports the early detection oferrors for quick recovery, contributing to improvements in operating rates of factory equipment.
ROBOSHOT-LINK i 2 enables significant increases in the number of connectable injection molding
machines and in the quantity of data stored. It also makes it possible to view the system from mobile
devices such as tablets.
We have also promoted paperless operations with the digitization of user manuals and otherresources.
Our automation introduction packages, which combine ROBOMACHINE and ROBOT products,
reduce the technical roadblocks involved in building robot systems.
Simple installation, simple settings, and simple operation significantly reduce man-hours in thedesign process and start-up time.

QSSR (Quick and Simple
Start-up of Robotization) of
ROBOMACHINE• ROBODRILL-QSSR/LR Mate
• ROBODRILL-QSSR/CR-7iA
Support boosting of machining systems• ROBOSHOT-QSSR/M-1iA• ROBOSHOT-QSSR/LR Mate
Support boosting of injection molding systems• ROBOCUT-QSSR/M-20iA• ROBOCUT-QSSR/CR-7iA
Support boosting of wire electric discharge systems

Awards on ROBOMACHINE Business

51st Industrial Machinery Design Award IDEA: The Japan Society of Industrial Machinery Manufacturers (JSIM)
Award (2021)
Display Unit PANEL iH Pro for ROBOSHOT α-SiB Series

2018 Winner of double awards (2018): Nikkei Sangyo Shimbun Award for Best Product in the 2018 Nikkei Superior
Products and Services Awards/61st Nikkan Kogyo Shimbun Ten Great New Products Awards Main Prize

ROBONANO α-NMiA

5th (1994)/28th (2017) Japan Society of Polymer Processing Aoki Katashi Innovation Award

Development of AI Pressure Tracking Control for a Fully Electric Injection Molding Machine (1994)
Movement Detection Technology and Injection Volume Stabilization Technology for a Backﬂow Prevention Ring (2017)

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FIELD system
The FIELD system (FANUC Intelligent Edge Link & Drive system) is an open platform for manufacturers that aims to further improve
productivity and efﬁciency within the industry. This system helps increase yield, quality, and productivity by visualizing factories,
thereby contributing to the improvement of our customers’ revenue.
The FIELD system offers an SDK (Software Development Kit), so that third-party developers can also freely develop and sell
application software and converters for devices. The design guide of the SDK provides a comfortable development environment withconstant surface speed (CSS) that integrates universal design.

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With Our Customers

Energy-efficient Products/Waste Reduction
Energy-efficient Products
FANUC will continue to make energy-efﬁcient products, which will contribute to conserve energy in our customers' factories.

Development of largecapacity servo motors

We have developed a high-precision, high-efﬁciency, large-capacity servo motor fully utilizing ouradvanced digital control system.
In the ﬁeld of industrial machines, including press machines, which require tremendous power, wehave achieved energy saving by introducing this large-capacity servo motor in place of hydraulicpressure.

Adoption of power
regeneration system

In the servo ampliﬁer, we use a power regeneration system that returns energy to the power supply
when the motor decelerates. This effective use of the power supply leads to energy savings. Whenmounted on a ROBODRILL, it reduces energy consumption by approximately 34% compared withthe resistance-regeneration method. Furthermore, the adoption of new power devices has reduced
energy loss of the servo drive by roughly 40%, compared with the 1995 equivalents (when installed
on a ROBODRILL).

Power consumption
monitoring function

By developing power-consumption-monitoring function, we have made it possible to monitor theamount of power consumed by our CNC and motors, enabling the efﬁcient adjustment of the cycle
time.
By using the energy-saving level-selection function, we have made it possible to choose the type ofoperation: one that prioritizes cycle time and one that prioritizes power consumption.
When sufﬁcient time is available before delivery, or when there are differences in cycle times in
the production line, this function can effectively adjust power consumption in accordance with thecircumstances, therefore contributing to energy savings for the entire factory.

Fast Cycle-time Technology

This series of functions reduces cycle time. Reducing operating time contributes to reductions inboth direct and indirect energy consumption (e.g., energy consumption by auxiliary equipment, suchas in turning a coolant pump while the machine is running).

Improving the efﬁciencyof laser electrical-opticalconversion

Improving the electrical-optical conversion efﬁciency has enhanced the wall plug efﬁciency to 40%
in ﬁber laser technology. This technology is four times more efﬁcient than conventional CO2 lasers,
which have an efﬁciency of 10%, and is 1.3 times more efﬁcient than conventional ﬁber lasers, whichhave an efﬁciency of 30%.

Averaging the load of power
Night operation using robots disperses peak power and curbs power consumption.
demandReducing CO2 emissions by
reducing weight

We have reduced the weight per unit output of laser oscillators by half and in doing so, have reduced
the amount of CO2 emission during transportation. CO2 lasers, with a weight per unit performanceof 1,300 kg, can be replaced by ﬁber lasers with a performance of 600 kg (based on 6 kW machines).
In addition, the design of the robot mechanical arms with lighter weight also reduces power
consumption. For the robots with a payload of 165 kg, the Robot S-430iW in 1997 weighed 1,300 kg
while the Robot R-2000iC/165F in 2013 is lighter with weight of 1,190 kg.
In addition, the collaborative robot CRX has a robot mass of 40 kg with a payload of 10 kg, which isconsiderably lighter than the robot mass of 150 kg common to robots in the same class thus far, andreduces power consumption.

CFC substitute-free

We replaced the cooler in the laser cabinet with a Peltier dehumidiﬁer to attain a CFC-freeenvironment that leads to the protection of the ozone layer. No CFCs are emitted when ourcustomers use FANUC laser products. This also eliminates the need to hand over ﬂuorocarbon
refrigerant (for collection) at the time of disposal.

Optimal operating
programBy optimizing the operating program with ROBOGUIDE, power consumption is reduced and thelifetime of the reducer is extended to reduce running costs.

Efﬁcient robot utilization

Use of an autonomously moving, Automatic Guided Vehicle (AGV) with collaborative robots allows
a single robot to work in multiple locations, improving the efﬁciency of robots. This reduces standby
power, compared with installing multiple robots.
In addition, the latest model of the collaborative robot CRX has a very light robot mass of 40 kg, and
the AGV can also be made compact. Furthermore, the CRX can be moved on a handcart instead ofon an AGV, making it possible to move the robot to the place where and when it is needed.

Highly reliable automatic
wire feeding (AWF3)ROBOCUT is capable of unmanned operation for long periods, thanks to the highly reliable automatic
wire feeding AWF3, which can automatically recover feeding even when a wire is accidentally cut
and disconnected. Stable night-time machine operation disperses peak power usage and curbs
power consumption.

Discharge control iPulse3

Our newly developed discharge control iPulse3 reduces machining time by approximately 10%
compared to that of conventional control. Reduced machining time curbs power consumption.
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Electriﬁcation of peripheral
equipment

Additional axis options for ROBOSHOT can electrify hydraulically controlled peripheral equipment.

Awards on Energy Saving
ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses supporting promotionof advanced energy-saving investments, allocated in the fiscal 2021 supplementary budgets in recognitionof their energy-saving potential. (2021)
ROBODRILL α-Di B Plus Series
ROBODRILL α-Di BADV Plus Series
ROBOSHOT α-Si A, B Series
ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses supporting
businesses rationalizing energy use in production equipment, allocated in the fiscal 2019 supplementarybudgets in recognition of their energy saving potential. (2020)
ROBODRILL α-DiB Series
ROBODRILL α-D i BADV Series
ROBOSHOT α-SiA Series
Approved for subsidies for the introduction of energy-saving equipment for local factories and small- andmedium-sized enterprises (2014)
ROBOCUT α-CiA Series

Prize of the Director General of Agency of the Natural Resources and Energy, Excellent Energy Saving
Device Award Program by the Japan Machinery Federation (2003)
For our large-capacity servo system with a power regeneration feature and precision digital control and for our large-size AC Servo
Motor αi Series

The Minister Award of the Ministry of International Trade and Industry (1999) in the ﬁrst Global Environment
Award competition
The Minister Award of the Ministry of International Trade and Industry, Excellent Energy Saving Device
Award Program by the Japan Machinery Federation (1998)
For our wire electric discharge machines equipped with a high-speed automatic wire feeding mechanism and thick plate tracking
control
ROBOCUT α Series

The Minister Awards of the Ministry of International Trade and Industry, Excellent Energy Saving Device
Award Program by the Japan Machinery Federation (1995)
ROBOSHOT Series

Waste Reduction and Effective Utilization of Resources in Our Customers' Factories
FANUC 's products also contribute to waste reduction and the effective utilization of resources.
Resources and Waste

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With Our Customers

Quality and Safety
Framework to Promote Product Quality and Safety
FANUC promotes activities to imp rove quality in all processes, from development and design of products to product quality buildups
and after-sales services following manufacturing and shipment, in an effort to enhance the quality, safety, and reliability of its products.
The Research & Development Promotion / Support Division functions across multiple research & development divisions to ensure
the quality and reliability of products and to ensure the prevention and prompt resolution of issues about quality. At the same time, asection devoted to reliability development has been established in each research & development division in each business division
engaged in product development and design. In addition, research & development divisions regularly share information on bothdevelopment and technology in various technology meetings and use such information during development.
Through after-sales services following manufacturing and shipping, we have built a system to feed back reliability issues discovered in
the field to production divisions and research & development divisions and to continue improvement through the PDCA cycle.

●Technology meetings (held for executives of research & development divisions)●Reliability development technology brieﬁngs (held for researchers)●Reliability meetings (held in each research & development division)●Quality meetings (held to improve manufacturing quality in production divisions and research & development divisions)“Visualization” of Quality and Reliability
The status of quality and reliability in all processes, from product design to manufacturing and after-sales services, is monitored inorder to promptly respond to defects. We collect data from our after-sales services, analyze it, identify issues, and give feedback to
our production divisions and research & development divisions. These activities improve our products’ quality and reliability.

Reliability Development Technology
We promote the development of a framework to design and manufacture highly reliable products, as well as sharing of knowledge, inorder to enhance the reliability development ability of our researchers.
The Research & Development Promotion / Support Division works with members of the reliability development departments in eachresearch & development division to regularly review methods to improve reliability-related issues and proceed with standardizing
reliability development methodologies.
In addition, the Defect Management Procedures have been established to systematize rules regarding response procedures when
defects arise.

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Reliability Evaluation Technology
As FANUC products are used in manufacturing sites, they are exposed to extremely harsh environments. In order to ensure thatour products can operate stably for long periods of time under these conditions, while contributing to minimizing downtime in ourcustomers' factories, we are promoting the standardization of evaluation tests by conducting them in a variety of surroundings.
The Reliability Evaluation Building, which opened in 2016, has a total ﬂoor area of approximately 22,679 square meters (103 meters
wide × 198 meters deep), and houses a variety of equipment for thorough reliability veriﬁcation.
This facility is equipped with dedicated test rooms, such as an anechoic chamber, an EMS (electromagnetic susceptibility) test room,a vibration test room, a mist test room, a variable temperature room, a variable humidity room, a capability limit test room, a noise
measurement room, a submergence test room, a clean room, and a precision measurement room. In this facility, a variety of tests are
performed while taking into account variations in data under various conditions, including the accelerated life test to evaluate longterm reliability.

Reliability Evaluation Building

Anechoic chamber

Mist test room

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Ensuring Customer Safety
FANUC contributes to the improvement of safety and the minimization of downtime at its customersʼ factories through their safe andstable operation. To this end, it is essential to enhance product safety in order to protect operators from danger. FANUC engages
in research and development to ensure a higher level of safety, and its FA, ROBOT, and ROBOMACHINE products comply with therelevant safety standards.

Complying with safety
standards

We fully meet safety standards, such as ISO and IEC, and have been certiﬁed by certiﬁcation bodies.
With ROBOSHOT, we are pursuing measures to meet the new safety requirements of injection
molding machines issued in 2020 (ISO 20430). This will ensure the safety of operators and molding
worksites in accordance with the new safety standards.

Dual Check Safety (DCS)

DCS complies with safety standards (IEC61508 SIL 2, IEC62061 SIL 2, and ISO 13849-1 PL d) andhas been certiﬁed by certiﬁcation bodies. Safety-related signals are duplicated for comparative
monitoring. In the event of a failure of one hardware safety circuit, the second circuit detects thefailure, thus maintaining the safety of the system.

Custom ProgrammableMachine Controller (PMC)
safety function

In our ROBODRILL, the customer or system integrator can apply the abovementioned DCS function
to the control of peripheral equipment that is additionally installed on the ROBODRILL. This will makethe separate safety circuits and control equipment unnecessary.

Malfunction preventionfunction

The design gives consideration to safety, such as by halting and issuing an alarm in the case of
accidental operations by the operator. In the future, we will work on a feature that stops functions
pertaining to hazardous and accidental operations, as well as one that prevents such choices.

We are replacing plasma cutting with laser cutting, by promoting CO2 and ﬁber laser machining
Environmental improvement
technology. This effort will signiﬁcantly reduce noise and dust at machining sites and improve theof machining sites
work environment.

Fully covered structure forhigh temperature parts

FANUC's unique structure features a fully covered injection unit, where the ROBOSHOT heater ismounted, in order to avoid the risk of operator contact with high temperature parts during molding
operations.

Collaborative robots

Collaborative robots do not require a safety fence, because they securely stop operating whencoming into contact with humans. These robots are used to assist in tasks alongside human
workers, enabling operators to avoid heavy lifting, so that persons with less physical strength canperform tasks safely.

Smooth stop function

This function stops robots on a procedure that has been conﬁrmed to be safe in the shortest
possible time, in case of any abnormality.

Brake error diagnosis
function

If a failure occurs on a brake while the robot is in operation or at rest, the power of the brake may
decrease, causing the robot's gravity axis to fall. This function provides early diagnoses of suchbrake malfunction, and notiﬁes the user in advance.

Product Design
In line with our “Simple & Smart” design policy and the human-centered design (HCD) concept, we create products that fulfill ourusers’ requirements and greatly satisfy them, without being deficient or excessive. While complying with ISO, JIS, and local laws andregulations, we aim for designs that seriously take into consideration user-friendliness and safety. We are in the process of formulating
related guidelines. Our new collaborative robot CRX, released in December 2019, gives the rough, rugged image of industrial robots a
fresh new look. The clean, rounded lines of this novel design offer a soft external appearance that allows the operator to share spacewith the CRX comfortably.

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With Our Customers

Solutions for Decreases in the Workforce and Skilled Engineers
The number of workers in the manufacturing industry, as well as the number of skilled engineers is expected to decrease in the future.
FANUC promotes labor saving through the automation and robotization of factories, in order to solve the problem.
In addition, if engineers cannot operate the machines properly, not only will productivity decline, but also the facility operating rates
will decrease due to such failures, and the engineers themselves may be injured. We strive to solve this issues by developing userfriendly products.

Partial automation of work
processes by collaborative
robotsCollaborative robots do not require a safety fence, because they securely stop operating whencoming into contact with humans. This enables the partial automation of work processes at manuallabor production sites.
Collaborative robots provide additional options for solving labor shortage.

QSSR (Quick and Simple
Start-up of Robotization)

In order to reduce the technical roadblocks involved in building robot systems, we have packaged
the basic elements required to connect CNCs and robots. FANUC facilitates the introduction ofsystems that easily connect machine tools and industrial machinery to robots and easily check
operation status, as well as with robot control by CNC programming (G code command) and manual
handles, including a function that automatically views and recognizes the relative positions of themachine and the robot, without requiring correction of the robot’s position teaching.

Visual guidance screen

Functions such as a simple adjustment for adjusting machining parameters, which enables easy
ﬁne-tuning, are displayed on the guidance screen, to provide visual guidance on how to use themachines. They are user-friendly even for unskilled operators.

Easy-to-use user interface(UI)

By making the UI of the teaching pendant used in the teaching of robots easier to use and adopting
a tablet style for the pendant, we have made it easy even for unskilled workers to conduct operationand programming.
The new collaborative robot CRX has made the creation of teaching programs easier, enabling
operators to use their hands to move the robot arms directly and control the robot easily evenon first-time use. With the tablets now widely used, operators can create teaching programs bydragging and dropping icons, just as they would with a smartphone.

Easy connection of laser
oscillators

Highly- synchronous connection with machine tools and robots through simple settings supports thesmooth building of machining systems.

SERVO GUIDE, AI Servo
TuningWe provide machinery manufacturers with support tools for the easy realization of high-level tuningof parameters to control the servo motor. The inclusion of an AI-based tuning support function
enables even unskilled operators to carry out servo tuning.

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With Our Customers

Service

Lifetime Maintenance
FANUC provides lifetime maintenance for its products as long as they are used by customers, even for models that are no longer inproduction. Lifetime maintenance makes it unnecessary for our customers to discard old models or purchase new models due todiscontinued maintenance service, thereby allowing them to use FANUC products at a low cost for several decades.
We perform approximately 90,000 repairs per year in Japan, of which roughly 10% consists of products that were manufactured morethan 40 years ago. FANUC's Repair Factory has a stock of over 2.6 million pieces of 15,000 types of repair parts, including old parts
that are no longer in production, ready to repair used motors, PCBs, or units that are more than 40 years old.
Even in cases where some parts run out of stock, the Repair Factory has a system for ﬁnding replacement substitutes or redesigningthem. In addition, old manuals are also digitized as part of our efforts for lifetime maintenance.
Units which have broken down are cleaned in a washing machine using robots or other means, and after being dried overnight ina drying furnace, they are repaired. Not only damaged parts, but also parts that are starting to deteriorate are replaced, to attain aquality in repair that is equal to a brand new unit.
We collect parts that have deteriorated and overhaul them for re-use, thus contributing to the reduction of waste.
The Repair Factory has performed over 1.8 million repairs thus far, and its know-how is utilized in domestic and overseas repairs, aswell as being fed back to research & development divisions.

Example of repair for PCB, spindle motor and servo ampliﬁer unit over 30 years old.

Before repair

After repair

Providing Global Services
Based on the spirit of “Service First”, FANUC provides lifetime maintenance for its products for as long as they are used by customers,
through more than 260 service locations supporting more than 100 countries throughout the world.
Service

Basic Approach
Based on our spirit of “Service First”, FANUC strives to improve customer satisfaction by providing prompt and careful services andlifetime maintenance.

PolicyConforming to the spirit of “Service First”, FANUC provides lifetime maintenance to its products for as long as they are used bycustomers, through more than 260 service locations supporting more than 100 countries throughout the world.

Promotion Framework
In order to promote our basic policy, once a year, we hold the Global Service Conference, organized by the President and CEO, which
is attended by senior executives of Group companies and service personnel from locations around the world, as well as key members
from FANUC Headquarters.
In 2020 and 2021, we used online discussion boards to hold conferences, and just as in real conferences, participants shared casestudies and knowledge about topics like parts and technical information, maintenance tools, service training, and service DX throughvarious working group activities to improve and strengthen our services.

Goals
We aim to improve customer satisfaction by providing better services. To this end, we make efforts to shorten the average waitingtime for services, and increase the percentage of maintenance parts that can be delivered immediately on demand.
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Initiatives
To Realize Flexible Services
More than 2,300 service personnel and support staff (all are FANUC Group employees) around the world handle phone calls, provide
services at customer sites, and manage maintenance parts. Units replaced at the request of our customers are repaired at Repair
Factories in 14 locations around the world to be reused. Using these units in subsequent maintenance services leads to waste
reduction and the effective utilization of resources.
In our domestic services, we are striving to enhance mobility, primarily by having all ﬁeld service personnel carry a mobile device, sothat representatives can visit customer sites as quickly as possible, based on the current locations of all personnel.
The realization of ﬂexible services requires all types of maintenance parts that amount to an enormous quantity.
FANUC has a global parts warehouse in Japan to store maintenance parts for which there is extremely low demand. We also strive to
visualize inventory around the world.
By globally managing our inventory of maintenance parts, regardless of how old or rarely used they may be, they are stored at somelocations around the world. Inventory data is updated to provide parts as quickly as possible. In addition, we prepare an overall
demand forecast for maintenance parts, in order to utilize the data to streamline the supply of parts. Furthermore, we establishedadditional core locations in Japan as part of our business continuity plan (BCP), to secure the continuity of our services. We have also
ensured that we can continue providing lifetime maintenance by establishing call centers and parts warehouses in the two locations ofHino, Tokyo and Komaki, Aichi, as well as by mirroring the servers that contain accumulated information, including past service data.

Nagoya Service Center

Hino Branch OfficeEnhancing Our Service System
In our after‒sales service, in addition to carrying out repairs in a short time, we are strengthening our efforts to implement preventive
maintenance by detecting signs of trouble before breakdowns. Accordingly, we are encouraging preventive maintenance in order toimprove operating rates in our customers' factories. In our call centers, we accept inquiries regarding repairs in case of failures andparts sales.
We have established and deployed a toll-free line in Japan. Call centers use a dedicated reception software which are updated asneeded, reflecting requests from service personnel and operators.
Similar software is used in our overseas ofﬁces tailored to the circumstances and characteristics of each country.
Key data from individual maintenance reports is shared among countries, and utilized primarily to improve reliability, and develop jigs
and tools.
To accommodate the new normal era created by COVID-19, we are pursuing new types of services, such as remote diagnosis andonline support, as a project for service DX.
Our first step was to launch FabriQR Contact, a contact service using QR codes, in Japan in October 2020.
Services in Japan
We accept calls until 5:10 p.m. on Saturdays for customers who operate their factories on weekends.
After long public holidays and other times when there is a heavy concentration of calls, all staff in each location, including veteran fieldengineers, handle calls, and calls are automatically forwarded from the call center to available lines at locations to prevent a fall in
response rate.
We also provide the CS24 service (for a fee) to customers who request availability at night and on Sundays and holidays.
Some overseas ofﬁces have individual contracts with customers to provide maintenance services 24/7.
In addition, we provide a maintenance contracts after expiration of the warranty period. Customers who have signed the contract toprepare for any product failures after the warranty period expires, are entitled to repair services which are free of charge within thecontract term for an unlimited number of times (certain parts and supplies are excluded).

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Membership Website
A membership website established in April 2015 provides downloads of electronic data for outline drawings to members free ofcharge. There are two types of membership, i.e., general membership open to the general public amounting to around 28,000
members, and customer membership limited to actual users of FANUC products currently consisting of around 10,000 members (asof July 30, 2021).
Customer membership website is a very convenient site where a customer can download materials including electric manuals andpurchase maintenance parts.
In December 2019, we added a chatbot function, launching a registration service for customer product information and a Q&A service
regarding the membership website. Compared to the past when service personnel entered such registration information sent backfrom customers on postcards, such information can now be self-registered by customers, enhancing convenience for both parties. We
are launching a new maintenance information service based on the registered information.
We have also begun responding to customer members’ technical inquiries with the use of a chatbot function. We are engaged ininitiatives to enhance convenience for customer members by regularly adding and updating Q&A content.
Membership Website (in Japanese)*Japanese site services are available only in Japan.

Customer Satisfaction Surveys
FANUC America, FANUC Europe, and other overseas group companies conduct regular customer satisfaction surveys. In Japan, we
conduct anonymous questionnaire surveys of customers that we attend on site, in order to reﬂect customer feedback in improvements
to our services.

Support for Restoration from Typhoon Damage
In 2019, Typhoon Faxai and Typhoon Hagibis caused record storms and heavy rains in northern and eastern Japan. We have been
supporting the restoration efforts of many customers who suffered ﬂood and other types of damage in their factories. In addition
to our service personnel, the employees at our laboratories (current research & development divisions) and the Production Divisionalso joined in to inspect the condition of all of the products in use and clean and repair them as necessary. As a result, among the
531 units that were damaged, we were able to quickly restore a total of 400 units that our customers wanted to restart immediately.
FANUC responds to disasters under our philosophies of “one FANUC”, “Reliable, Predictable, Easy to Repair”, and “Service First”.

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With Our Customers

Support for Customers
Technical Support for Our Customers
Each business division provides support to our customers per product, to enhance customer satisfaction.
In the FA Business Division, the Sales Engineering Department plays a central role in providing technical support and adjustments
for installing CNCs at the design/production sites of machine tool builders, who are our customers, as well as support for building
machining systems for laser oscillators and determining machining settings. Engineers are dispatched from research & development
divisions as necessary to share the latest technical information and hold technical meetings to deal with new models designed by ourcustomers.
The ROBOT Business Division and the ROBOMACHINE Business Division also provide technical support for automating productionlines of our customers.

Efforts to Facilitate the Introduction of New Models
FANUC facilitates the introduction of new machine tool models at manufacturing sites. For machining programs using G code, which
are primarily utilized in FANUC CNCs, the program of old models can be used as-is, without making changes. As such, machine
tools equipped with FANUC CNCs can reuse the programs and settings of old machines, thereby facilitating the introduction of new
machine tools for our users.
Even during the introduction of new ROBOT and ROBOSHOT models, the programs for old robot models can be converted andreused. In ROBOSHOTs, various settings data and parameter ﬁles for molding conditions can be transferred to other models.
Combined with our efforts for lifetime maintenance, we realize the long-term use of our products, and promote improvements incustomer satisfaction and the effective utilization of resources.
Our collaborative robots do not require a safety fence and can be easily installed later without the need to re-design the existingproduction line layout.
The robot mechanical arms and controller of the new collaborative robot CRX are lightweight, enabling them to be carried by hand,eliminating the need for a crane for transportation and installation. In addition, while industrial machinery often uses a three-phasepower supply, which is for commercial use, CRX is compatible with AC100V/200V single-phase power supply, so it can be plugged
into a normal power socket.

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With Our Customers

FANUC ACADEMY
Overview
FANUC has been focusing its energy on training our customers, as well as domestic and overseas service personnel since its
foundation, in order to promote automation and robotization in our customersʼ factories around the world.
In 1982, FANUC established FANUC Training Center which produced more than 100,000 graduates. In April 2019, we increased its
scale and established FANUC ACADEMY as an education facility with enhanced content. FANUC ACADEMY offers training courses
related to all of our products, from CNCs, servos, and laser oscillators to ROBOTs, ROBOMACHINEs, and FIELD system, and offers
training courses ranging from two days to three weeks, according to the needs of trainees.
During the one-year period from April 2018 to March 2019, a total of 5,186 trainees attended from Japan and overseas.
In addition, FANUC ACADEMY is also working with training schools established in the United States, Europe, and China to build asystem for conducting training based on FANUC's global standard. The ACADEMY is intended to nurture sophisticated customer
service as it provides a high level of technical education to personnel in charge of training and service throughout the world.

The robot education initiative was continued in fiscal 2019, with the FANUC ACADEMY giving factory tours to students from local
technical high schools, providing them with opportunities to experience actual manufacturing sites ﬁrst-hand.
The students presented this initiative to visitors at the opening seminar of the International Robot Exhibition 2019, which was very wellreceived.
Click here to see the initiatives taken at FANUC ACADEMY in response to COVID-19.

Systems to Enhance Educational EffectivenessWorkshop classrooms

Actual products are installed in our classrooms, so that trainees can practice directly on CNCs ormachines by their side, while listening to lectures.

e-Learning

A tablet is provided for making preparations and reviewing training materials through e-Learning.
Trainees can learn in the classrooms during breaks and in the guest rooms at night.

Abundance of machines forpractice

For training on CNCs, ROBOTs, and ROBODRILLs, one unit is provided to each trainee.

Guest House

There are 110 spacious guest rooms. There is also a cafeteria and onsen facilities (hot spring baths)

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FANUC ACADEMY's Satisfaction Rating and Number of Trainees
We have revised our systems to thoroughly enhance educational effectiveness, and have received a rating of 4.5 or higher out of 5 on
the trainee satisfaction survey, since 2019. The average satisfaction rating for the fiscal 2020 was 4.57.

FANUC ACADEMY's Satisfaction Rating and Number of Trainees* The number of trainees decreased from February to March 2018, due to the transition from FANUC Training Center to FANUC
ACADEMY. During this period, the Nagoya school continued to offer training.
* Due to COVID-19, the number of trainees decreased 2020.

Respect for Trainee Diversity
When we built FANUC ACADEMY in 2018, we set up a Muslim prayer room for trainees. This was done to ensure the facility takes into
consideration the religions and customs of employees and trainees from around the world.
Food served at the facility includes vegetarian items and gluten-free items.

Entrance display

Foot wash area

Prayer room
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With Our Employees
Basic Approach
FANUC considers its employees to be human resources who are indispensable for the Company's business activities. We will support
the health and growth of our each of employees and provide an environment that allows each employ to attain self-realization with asense of purpose.

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With Our Employees

Promotion of Employee Diversity
Basic Approach
FANUC respects and supports the diversity of our employees, and creates an environment that accepts diversity, based on thephilosophy that diversity gives rise to new values.

Initiatives(1) Gender-Related Initiatives<Promoting the Active Participation of Women>
In addition to striving to ensure that employees can play an active part in the workplace regardless of factors such as nationality
and gender, etc. FANUC has enhanced various systems including maternity leave, child-care leave, and shorter working hours untilchildren ﬁnish elementary school, so that women can pursue their careers without interruption. In this manner, FANUC fully supports
the active participation of women in the workplace.
In April 2021, we renewed our General Employer Action Plan Based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace, and we are actively promoting the recruitment of women, with the aim of increasing the percentage offemale employees. Under this plan, FANUC has established a target of 10% of regular female employees for the Company as a whole.
To achieve these goals, we are promoting efforts such as having female researchers visit schools and handle company visits by female
students when recruiting for technical positions, and promoting efforts to create opportunities for women to discuss work and actual
lifestyles. We are also implementing initiatives such as external seminars to support career development for female employees.
Recently, women have increasingly been playing active roles as executives in various ﬁelds, with two female employees promoted asofﬁcers.
<Support for Balancing Work and Home Life>
At FANUC, 100% of the female employees who have used the child-care leave system during the past three years have returned towork, which conﬁrms that the Company's working environment is comfortable for women. Furthermore, we opened a nursery for
employees' children in the Headquarters' site in April, 2019, using the company-initiated nursery business system, supervised by the
Cabinet Ofﬁce. To reduce total actual working hours, we have set the annual paid leave-taking rate to at least 80%, so paid leave canbe more easily used to balance work and home life.
As an initiative to encourage male employees to take child-care leave, we have posted on the companywide portal site Q&A andguidance documents regarding leave systems for child care and nursing care as well as support offered by the government. A help
desk has also been set up in the Human Resources Department to support the balance between work and child care and nursing
care. This approach has spread knowledge and understanding of our initiatives within the Company, and more male employees aretaking child-care leave.

(2) Disability-Related Initiatives
When determining assignments, FANUC takes into account the characteristics of each individual's disabilities as well as his/her
aptitudes, while also considering safety aspects so that persons with disabilities can play an active role in the Company.
We have also established a support system to promote the employment of persons with disabilities, by cooperating with the Japanese
government's Hello Work employment centers and the Yamanashi Prefecture Vocational Center for Persons with Disabilities, and byappointing vocational life counselors for persons with disabilities.

(3) Initiatives for Nationality, Race, and Religion
FANUC thoroughly implements the “prohibition of discrimination based on race, creed, sex, social status, religion, nationality, age,mental or physical disability, etc.” in its recruitment practices, as well. While we hire international students, we do not treat themdifferently or discriminate against them in any way because of nationality.
FANUC also strives to provide a working environment that is comfortable for foreign employees. We have facilities that take into
consideration the religions and customs of employees from around the world. We offer vegetarian food, gluten-free food, etc. toemployees for whom religious dietary considerations are required. FANUC ACADEMY also has a Muslim prayer room for employees
and trainees from overseas Islamic companies.

Entrance display

Foot wash area

Prayer room(4) Age-Related Initiatives
In October 2006, FANUC extended its mandatory retirement age from 60 to 65 years.
Employees who have reached the retirement age of 65 years may continue to work at the Company if both the Company and theemployee so wish.
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With Our Employees

Employee Health and Safety
Basic Approach
FANUC promotes the prevention of occupational accidents and the development of a comfortable working environment, with aview toward creating a workplace where employees can work safely in a healthy manner. The FANUC Health and Safety Committee
promotes the creation of a workplace where each employee can stay safe and healthy, through the formulation of our Safety
Management Policy and Health Management Policy.

Policies
Safety Management Policy
FANUC actually communicates information to each employee by utilizing the newly introduced team leader system for our workers at
manufacturing sites, and carry out activities to reduce the risk of disasters by improving work guidance.

Health Management Policy
FANUC places an emphasis on preventing heat strokes during the summer in view of recent exceptional weather conditions, whileworking to maintain and manage the physical and mental health of our employees.
FANUC has implemented safety and health rules to ensure the safety and health of FANUC Group company members, employees
working for a contracted term, and dispatched temporary employees, in order to make work smoother and improve productivity.
When members of contractors and subcontractors perform tasks at FANUC, the company does its best to prevent disasters,
accidents or injuries from occurring, in conformance with its safety management rules for these contractors and subcontractors.

Promotion Framework
FANUC has established the FANUC Health and Safety Committee as an organization that mainly discusses and determines companywide safety and health management policies, related measures and signiﬁcant issues.
The Committee holds two meetings per year, with the President and CEO designated as the person responsible, and ofﬁcers of eachbusiness division and the union leader as its members. The Safety and Health Department of the Human Resources Division serves as
the secretariat engaged in coordinating activities.
In addition, we have established District Safety and Health Committees based on the law in four factory districts and ﬁve sales ofﬁce
districts for health and safety activities. Each District Safety and Health Committee holds meetings of the Workplace Safety and HealthCommittee, which is a sub-organization per department, to notify instructions and other matters from the District Safety and HealthCommittees to each workplace.

Initiatives
Priority Activities for Health and Safety
FANUC has speciﬁed ﬁve priority activities, and are pursuing our efforts through the establishment of a promotion department, thatmainly works together with the Safety Section and each workplace.
We aim to reduce occupational accidents by setting single-year goals regarding safety management.

Preventing occupational
accidents

We will prevent equipment-related accidents by introducing pre-commissioning risk assessment of
production equipment when equipment is installed.
We will establish a system to provide internal notiﬁcations of the cause of each accident andcountermeasures taken, with the aim to prevent accidents.

Improving the work
environment

We will improve the work environment based on the results of working environment assessment.

Health maintenance andpromotion

Efforts are being made to eradicate occupational diseases by conducting special healthexaminations, along with follow-ups of the health examinations results.

Preventing ﬁre accidents

Efforts are made to prevent accidents by improving the management of equipment that use ﬁrewithin the workplace.

Preventing cargo handlingand transport accidents

Efforts will be made to create a system for preventing forklift accidents.

Designated operator
systemAs an initiative for preventing forklift accidents, a designated operator system will be introduced as
an in-house qualification. Under this scheme, only forklift driving license holders who are recognizedby the workplace as having skills above a certain standard will be permitted to drive forklifts.

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Pre-commissioning Risk Management for Production Equipment
In its pre-commissioning assessment of new production equipment, FANUC identifies and assesses risks and conducts risk
management related to health and safety. The Production Engineering Department, Manufacturing Department, and Health and
Safety Department conduct risk assessments from their respective viewpoints and make determinations of “operable”, “provisionallyoperable”, or “operation suspended”. For determinations other than “operable”, countermeasures are taken within 30 days, and theequipment in question can be put into operation after it is determined to be safe.

Health and Safety Education
FANUC conducts grade-based and job-based education programs on occupational health and safety. It also conducts safety
education for all employees at the time of employment and at times of operational changes.

Division and Department
Heads

Training at the time of appointment of safety officer

Section Heads

Supervisor education

Newly appointed
team leaders

Supervisor education delivered by specialist institutions
Health and safety education by Health and Safety Department

Company fleet drivers

Risk prediction training through discussions among small groups of drivers belonging to the same
sectionService personnel

Risk prediction training for representatives of each location by specialist institutions

Number of Employees in Health and Safety Education
In fiscal 2020, FANUC conducted the following education programs.

Type of Education

Times Held

Number of Participants

Training at the time of appointment assafety officer

327Supervisor education by specialist
institutions

3

48

Health and safety education by Healthand Safety Department

6

85

Risk prediction training throughdiscussions among small groups ofdrivers in the same section

1,520 (approximate, through March 31)
304 (actual, through March 31)
A total of 4,660 employees are scheduled
A total of 932 times are scheduled throughto take part in this education program
the end of November 2021
through the end of November 2021

Risk prediction training for representativesof each location by specialist institutions

23 locations, 41 representatives

Health and Safety Patrols
With the aim of reducing occupational accidents, FANUC conducts monthly patrols at each of its factories. In addition to patrols by
the safety officer, health officer, and industrial physician, we have established a system of mutual patrols, in which individual sections
patrol the condition of each other's sections.

Based on the results of working environment assessments and special health checkups, we have identified workplaces with noise
issues and workplaces that use organic solvents and confirmed the status of operational improvements (October 2020).
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Knowledge and Measures Learned from Occupational Accidents
We investigated the causes of lost-time accidents, eliminated dangerous actions and tasks, and implemented safety measures forboth machinery and management. We also strive to prevent occupational accidents by sharing reports of near misses.

Safe Maintenance Work by Service Personnel
As service personnel perform their work alone at the customer's factory, it is important that they are more sensitive toward safety andpredict potential risks.Risk prediction training by specialist institutions is provided to the representatives of service locations, who thenroll it out in their respective service locations, to improve risk prediction capability.
We also develop maintenance tools for service personnel to achieve safe and efficient maintenance work.

Production and Distribution of Pocket Safety Card
We have produced a pocket-sized card that features FANUC's Three Safety Principles, Six Safety Action Principles, Six Prohibitions,and the FANUC KY Principles, so our employees can check them anytime, anywhere.
In 2020, we revised the Five Safety Action Principles and Five Prohibitions that had previously only been applicable to manufacturing
sites, making them Six Principles and Six Prohibitions that cover the entire Company. In this way, we are striving for company-wide
occupational health and safety.

Goals/Achievements
Goals
FANUC has established the Health and Safety Committee, with the President and CEO designated as the responsible officer. This
Committee sets goals for lost time injury (LTI) frequency rates and intensity rates every year.

Achievements
In fiscal 2019, both the lost time injury (LTI) frequency rate and intensity rate fell compared with the previous fiscal year.
There were no work-related fatalities of employees, contract employees, and temporary staff at FANUC CORPORATION in fiscal 2019.
We have now achieved zero fatalities for more than 10 years.

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With Our Employees

Creating Better Working Environments
Initiatives
Practicing Work-life Balance
FANUC considers reduction of long working hours to be an issue, and is striving to lower the maximum limit for overtime work andpromote the taking of annual vacations as corrective measures. Annual vacations were taken at a rate of 85% in ﬁscal 2019, and wecheck the achievement status of these goals in monthly meetings attended by executives. To facilitate flexible work styles that achievea better balance with everyday life, in October 2020, we made it possible to take annual vacation in hourly increments.
In addition to establishing a system for infertility leave, we have added family care and infertility treatment to the purposes used foraccumulated vacation (paid).
To better promote the balance of work and child-care, we have extended the application of the shorter working hours system forchild-care, as well as the exemption from overtime and work on holidays for child-rearing employees upon request, until children haveﬁnished elementary school.
In recent years, in response to feedback from employees that they would want to continue working while receiving treatment even if
they are diagnosed with cancer or other illnesses, we have established a helpdesk to support such employees so that they can work
while receiving treatment, by actively promoting shorter working hours and other means.

Main Systems●Child-care leave (Return-to-work ratio: 100%; Retention ratio one year after returning to work: 100%)●Maternity leave●Nursing-care leave (e.g., to take care of elderly parents)●Infertility leave●Subsidies for speciﬁc infertility treatment costs●Shorter working hours for child care
●Refreshment leave (can be taken after 10 years, 15 years, 20 years, 25 years, 30 years, 35 years, and 40 years of employment)●Leave due to transfer of a spouse

Promotion of Mental-health Care (EAP) and Line CareIn addition to treatment by psychiatrists and mental health care mainly by counsellors, as part of our health support initiatives for
employees, FANUC offers an employee support program delivered by external specialist institutions to current employees and theirfamily members, as well as former employees who were at least 60 years of age when they resigned.
Eligible persons can receive guidance and advice from specialists, including consultation on health-related concerns, mental healthcounselling, and second opinions.
By providing line-care training for executive employees on a regular basis, we are working to create comfortable workplaceenvironments and to achieve early detection and treatment for employees with mental health issues.
We also conduct stress checks every year, follow up with people with high stress levels, and analyze the ratio of health risks andpeople with high stress levels by organization. In these ways, we are making efforts to help those organizations with problems improvetheir workplace environment.

FANUC Nursery School (Corporate-led Nursery Business)
With the growing number of employees of the child-rearing generation in their 20s and 30s, to help enhance the child-rearing
environment in Oshino-Mura, Yamanashi Prefecture where FANUC Headquarters is located, we established a corporate-led nurserybusiness in the spring of 2019.
Located next door to the workplace, FANUC Nursery School reduces the time required to drop children off at the nursery schooland pick them up and enables the safe and certain handover of children in the event of an emergency such as a natural disaster.
Responding to users’ needs, the facility has been operating at close to full capacity since its first year of operation.
In addition, the facility accepts new enrollments throughout year, facilitating a smooth return to work for employees on child-careleave.
The school is actively engaged in initiatives to improve the quality of child care, such as offering various training programs to its
nursery teachers, receiving evaluations from external institutions, and providing dietary education by cooking lunches with local
ingredients.
FANUC Nursery School will continue to provide an environment in which its users will be able to balance child-rearing and careerdevelopment with peace of mind into the future.
Name: FANUC Nursery School
Address: 3515-1, Shibokusa, Oshino-Mura, Minamitsuru-Gun,
Yamanashi, Japan
Facility area: Floor area: 259.2 m²; Playground area: Approx. 470 m²
Capacity: 19 (Max. 31)
Eligible ages: From at least 57 days after birth to before starting
elementary school
Eligibility: Priority is given to employees of FANUC and its
subsidiaries, but children of local residents are also accepted.
Opening hours: 8:00 a.m. – 7:00 p.m.

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Promotion of Barrier-free Buildings
We have started to install wheelchair-accessible restrooms whenever new business premises are built and existing ones are
refurbished.

Facilities with wheelchair-accessible restrooms
Headquarters area

10 facilities

Tsukuba Factory

2 facilities

Mibu Factory

5 facilities

Local ofﬁces, local branches, service centers

9 facilities

Asset-building Support●Corporate pension plan
With the corporate pension plans, we guarantee future benefits to employees so that they can work with peace of mind.
●Retirement allowance plan
FANUC has set up retirement allowance plans to reward employees for their long-term contributions to the company,so that they can live with peace of mind after retirement.
●Employee shareholding association plan
FANUC has an employee shareholding association to support employees with long-term asset building by acquiring sharesin the company.

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With Our Employees

Communication with Employees
Basic Approach
FANUC recognizes that each employee's individuality, as well as the comprehensive capabilities of our employees constitutethe source of FANUC's growth and competitiveness. Accordingly, we believe that it is extremely vital to conduct bidirectional
communication, which properly conveys the Company's status, policies, and expectations to our employees, while also receiving
input from them.
In order to enhance communication, FANUC engages in indirect communication via the labor union, as well as direct communication.

Initiatives
Communication via the labor union
1.Production Council (four meetings per year)
The Council explains the Company's production status, hiring plans, work hours, and other short-term conditions to the labor union,
and receives requests from the labor union.
2.Spring labor-management negotiations (ﬁve times from February to March)
Spring negotiations are held to share the Company’s business condition and determine the working conditions based on a labormanagement agreement.
3.Regular labor-management meeting (once per month)
A forum is provided for sharing and resolving daily occupational, health and safety issues.
4.Labor-Management Overtime Management Committee (once per month)
The Committee shares the actual situations and issues regarding work hours for objectives such as work style reforms, promotion ofhealth, and work-life balance, and discusses directions for resolving these issues.

Direct communication between the Company and employees
1.When announcing ﬁnancial results, we send a message to our employees regarding the Company's business performance andthe associated background, broadening their understanding of the Company’s conditions as we strive to foster a sense ofunity with employees.
2.We set up an organizational performance evaluation clinical system every year to survey employee awareness. Each organization
identifies issues from the survey results, and the human resources divisions support organizations to implement the PDCA cycle toexecute measures, thereby working on initiatives that make continuous improvement.

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With Our Employees

Development and Training of Employees
Basic Approach
FANUC supports the growth of our employees as human resources who are indispensable for FANUC's business activities and who
contribute to the value enhancement of FANUC.
As an educational system for this purpose, we are currently providing executives with training to improve their management andleadership in the workplace according to their responsibilities. We are also conducting training for young employees to foster
awareness of how to approach work independently, and we are working to support their career development and growth throughdialogue within the workplace.
In individual workplaces, we conduct training for employees to give them required specific knowledge and skills.

Initiatives
FANUC strives to enhance the value of our employees by providing support for their individual growth and career development.
As an educational system for this purpose, we are currently providing executive employees with training to improve their management
and leadership in the workplace according to their responsibilities.
We also conduct training for employees to give them the specific knowledge and skills that are required in the individual workplaces.
For example, the Service Division strives to improve customer satisfaction by providing technical education to service personnel inJapan and overseas.

Current Education and Training Framework
Training for All Employees
Training Name

Trainee

Content

Harassment prevention
training

All employees

Acquire basic knowledge needed to prevent harassment and create afriendly work environment

Information security
education

All employees

Raise employee security awareness and literacy, with the aim of preventing
information security incidents

Management and Leadership Improvement
Training Name

Trainee

Content

Division head training

All division heads

Improve skills required to overcome management issues that should beconsidered by management leaders (management skills, growth strategymaking skills, life skills)

Department head training

All department heads

Establish management and leadership styles to lead the workplace basedon awareness of the role of one's own department from a company-wide
perspective

Workplace management
training

All section heads

Learn the basics of management to enhance organizational capability as amanager of an organization and maximize their section's outcomesTraining for new executive
employees

Employees promoted to
executive positions

Learn leadership for achieving results as a team, with the aim of deepening
their own expertise and solving issues that they are addressing as a group

Trainee

Content

Career Development
Training Name

Young employee training

Young employees inFoster independent human resources who can proactively approach theircareer-track positions
work from their own awareness of the expectations of others, their personal(three to seven years since
strengths, and their core values
joining the Company)

Management Capability Improvement for Manufacturing Sites
Training Name

Trainee

Content

Team leader training

All team leaders

Raise awareness of one's role as a supervisor at the frontline of the
manufacturing site and improve the knowledge and practical skills required
to manage a workplace as a leader
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New Recruit Training
Training Name

Trainee

Content

New Recruit Training

All new-graduate recruits
and mid-career hires

Learn basic knowledge as employees of FANUC, such as its business,
history, corporate philosophy, organizational structure, and corporate culture

Etiquette training

All new-graduate recruits

Acquire business etiquette to facilitate business operations and to earntrust, through appropriate behavior and communication as members ofsociety

Foreign Language Training (English and Chinese)
To help individual employees enhance their skills according to the language proficiency requirements of their work, in addition to the
TOEIC exam, we have expanded our training options for language skill acquisition, including business English, English conversation,
and Chinese conversation.

Division-based Training
Besides the training programs described above, each division has their employees attend external workshops and provides training
sessions for them to acquire the particular knowledge and skills required for their assigned tasks.

Education and Training in the Service Division
The Service Division conducts education and training for service personnel. At FANUC, we believe that improving the level of theservices provided by our service personnel is of utmost importance. As such, we are working to provide high-quality services globally
through the education and cultivation of our service personnel.
In addition to etiquette training for all new employees, we strive to further improve customer satisfaction by giving consideration topersonal appearance, behavior, and speaking manner, based on the Service Engineer Code of Conduct.
In fiscal 2020, due to the COVID-19 pandemic, we were unable to gather at the Hino Branch and conduct our usual introductory
training for new employees in accordance with the group education plan.
In fiscal 2021, we set up a videoconferencing system available at all times in one of the classrooms at FANUC ACADEMY of FANUC
Headquarters, allowing the Hino Branch and FANUC ACADEMY to view each other’s activities. We also provided all new employeeswith a tablet and laptop computer immediately after they joined the Company. In addition, we provided our new employees with basic
knowledge by sharing with them the e-learning content produced by FANUC ACADEMY and other resources prepared in-house byindividual departments.
Currently, new employees watch the e-learning content in their free time for preparation and review.
Similarly, for technical education, safe driving education, and lessons on safe working for service personnel in Japan, we conducted
online education by connecting FANUC Headquarters and the various service locations throughout Japan.
We maintain a high level of service overseas by using videoconferencing systems to provide overseas service personnel witheducation and training on maintenance technology for the latest models of our products.

Technical education at
FANUC ACADEMYFANUC ACADEMY provides technical education to service personnel Japanese and overseas almost
every week, utilizing training programs that incorporate our customers’ requests.

Technical education atprincipal subsidiaries

We also provide technical education to service personnel at FANUC America, FANUC Europe, andother principal subsidiaries. With regard to education on new models and advanced technology, thepersons in charge participate in programs offered by FANUC ACADEMY to acquire the necessary
skills, and deploy them within their ofﬁces after returning to their countries.

Introductory training andfollow-up training of new
employees

In Japan, we provide intensive education to new service personnel for four to ﬁve months, at thetime of onboarding. Service personnel hired overseas are also given training in a planned manner atthe Headquarters.
Furthermore, follow-up training is provided to new hires one year after joining the Company.

Winter intensive training(Japan)In the winter, FANUC ACADEMY conducts intensive skill improvement training, mainly with regard
to new products, so that all service personnel are able to provide high-quality service based on
FANUC's global standards.

Implementation Status of Education and Training for Fiscal 2020
Number of FANUC ACADEMY trainees

Domestic service personnel: 183
Overseas service personnel: 203

Number of trainees trained in principal group companies

Overseas service personnel: 818

Number of FANUC ACADEMY training hours (annual average per trainee)

Domestic service personnel: 24.4 hours
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Award Programs
On July 1 every year, at the Anniversary of Foundation Ceremony, FANUC presents awards to groups and individual employees who
have made significant contributions to the Company’s business performance or who have undertaken outstanding activities that serve
as a model for others. Other awards include those for employees who have created patented inventions and other inventions that are
beneficial to our business.
In 2021, we presented the Special Achievement Award, Achievement Award, Invention Award, and Outstanding Safety WorkplaceAward.
The awardees received a certificate of commendation and cash reward, and the Special Achievement Award recipient was alsopresented with a medal.
The Special Achievement Award and Achievement Award are often given to teams that cross business divisions and administration
divisions, signifying the practice of “one FANUC”.
The Outstanding Safety Workplace Award was presented to a workplace that achieved remarkable results in the elimination ofoccupational accidents.
As for services, at the annual Global Service Conference, we present awards to the top service personnel from all over the world who
have provided excellent service in the past year. In 2021, we presented awards to 11 individuals or groups from nine companies.

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With Local Communities
Basic Approach
FANUC values coexistence with our local communities. Many of our employees have moved from other areas to Yamanashi
Prefecture, in which our Headquarters is located, following a local lifestyle while working close to home. FANUC employees rely on theorganizations and facilities of the local government and community in their daily lives. Accordingly, FANUC makes efforts to contributeto the local community, such as by welcoming factory visits by students of local technical high schools and making donations to thecommunity. In addition, FANUC values contributing to society. Through the FA Foundation, we support research on factory automation(FA) and industrial robot technologies, and participate in the programs for training future robot engineers led by the Ministry of
Economy, Trade and Industry.

Supporting Research through the FA Foundation
The FA Foundation was founded in 1989 by Dr. Seiuemon Inaba, the current Honorary Chairman of FANUC. FANUC donated funds at
the time of establishing the Foundation, and has made donations to cover its operating costs since that time.
The mission of the FA Foundation is to contribute to society by improving automation technology, and automating machinery andmachine factories, primarily through ofﬁcial commendations of research achievements related to factory automation (FA) and industrial
robot technologies.
In ﬁscal 2019, a total of eight outstanding theses were commended by the Foundation.
FA Foundation (In Japanese)

The Consortium of Human Education for Future Robot System Integration
On December 18, 2019, under the initiative of the Ministry of Economy, Trade and Industry, industry players, including FANUC and the
National Institute of Technology, signed a memorandum for establishing the Consortium of Human Education for Future Robot System
Integration to develop human resources in robotics. This initiative aims to match schools and educational institutes with industrial
players in the robotics ﬁeld. It is hoped that such matching will introduce students and teachers to internship programs, promote thedispatch of robotics engineers from companies to schools, and facilitate the development of future human resources in the robotics
ﬁeld.
FANUC contributes to the development of human resources in robotics, through activities such as internship programs for teachers
and the dispatch of lecturers to technical colleges and technical high schools.

Contributions and Donations to the Community around FANUC Headquarters
FANUC has donated items such as testing machines and other equipment to the Fujiyoshida Municipal Medical Center, which often
assists us with employee health management, thorough examinations, etc.
In addition, we make ongoing contributions to the Yamanashi Prefecture Community Chest's “Red Feather Community Chest”, andprovide food support to the non-proﬁt organization, “Food Bank Yamanashi”.
In 2020, FANUC supported the “Let's Cheer Up Healthcare Workers! Donation Project for COVID-19 Countermeasures” organized by
Yamanashi Prefecture, and donated ¥50 million as part of support for COVID-19 countermeasures.
We also donated face masks to the government of Yamanashi Prefecture, where FANUC Headquarters is located, and to Fujiyoshida
Municipal Medical Center.
Up to 2019, we had donated 1,570 m2 of land for road use for village road-widening projects in Yamanakako-Mura and Oshino-Mura.
In January 2021, we built shelters at two bus stops that had no roofed structures and therefore offered users no protection from thewind or rain, and donated these shelters along with the road land to Oshino-Mura.

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Blood Donation Drives
For five days between October 1 and 8, 2020, FANUC Headquarters held a blood donation drive by the Yamanashi Red Cross Blood
Center for the fourth time in as many years. The number of employees who donate blood is increasing every year, reaching 464 in
2020.
In 2020, FANUC received the Governor's Commendation for Blood Donation Promotion, which is presented to organizations thatcooperate with blood donation at least twice a year or that have had more than 50 blood donors for three consecutive years.
Our Mibu Factory in Tochigi Prefecture has also been conducting blood donation drives since 2018, with 70 employees donating
blood in two days from October 6 to 7, 2020.
As a familiar social contribution activity, FANUC will continue these blood donation drives with the cooperation of our employees.

Local Employment around FANUC Headquarters
FANUC Headquarters take initiative for securing human resources from technical high schools in Yamanashi Prefecture every year,
accepting them for factory tours prior to their application and providing them with opportunities to experience manufacturing sites.

Support for Reconstruction in Disaster Zones
FANUC assists in the restoration of disaster-stricken areas, in order to help disaster victims. Such activities include donations at thetime of the Great East Japan Earthquake in March 2011, the torrential rains in the Kanto and Tohoku areas in September 2015, theKumamoto earthquake in April 2016, and the heavy downpours centered on western Japan in July 2018, as well as recovery support
activities for disaster victims, to enable affected customers to resume operations as quickly as possible.
Employees also engaged in volunteering activities in the aftermath of the Kumamoto earthquake.

Inviting a City Gas Station to the Area
FANUC invited a city gas station to be built in the Headquarters area to reduce power consumption, which helped promote the use ofcity gas among local residents.

Harmonization with Local Landscapes
Oshino-Mura, where the Headquarters area is located, offers a harmonic landscape where you can view a lot of nature, such as lakes,
ponds and rivers created by Mt. Fuji's subsoil water, and man-made scenery like farming fields and thatched roofs, with Mt. Fuji in the
background. The local governments of Oshino-Mura and Yamanakako-Mura have established landscape plans for the preservation of
the landscapes, and FANUC is also actively working with those plans.
Most forest resources owned by FANUC consist of trees planted after the war. At FANUC Headquarters, following guidance from the
Yamanashi Forestry and Forest Products Research Institute, we maintain and manage trees according to the FANUC Forest 100Year Plan, aiming to restore forests to a state in harmony with the region. We are currently promoting a plan to replace the artificiallyplanted coniferous trees with rich broadleaf trees that bloom, bear fruit, and allow coexistence with small birds and animals.
All exterior walls of FANUC’s existing factories had previously been painted yellow, but when they were repainted during major
refurbishments of the individual factories, gray is used as a base color and the amount of yellow used has been limited (e.g., 20% orless of external walls in the Headquarters area, 5% or less of external walls in the Hino area).

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Supply Chain
Basic Approach
FANUC purchases raw materials, electric and electronic parts and mechanical parts used in its products, and the equipment, tools
and ﬁxtures used in our factories and other facilities, as well as outsourcing their machining and assembly, from approximately 970
suppliers. These suppliers are all important partners who are indispensable for the production of FANUC products, and we are working
to establish a collaborative system with these suppliers that allows us to grow together. To this end, we strive to develop mutual
trust, with a view toward fulﬁlling the social and environmental responsibilities required of supply chains by domestic and overseas
communities.
� CSR Procurement Policy

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Supply Chain

Promotion Framework
Purchasing Department
At FANUC, as a point of contact with our suppliers, Purchasing Department gathers information on the quality, delivery time, andcost, while internally sharing information in a timely manner. Regarding CSR Procurement Policy and conflict minerals, we require our
suppliers to comply with the reduction and elimination of harmful substances contained in products.
The Purchasing Department cooperates with research & development divisions and production divisions to actively promote the useof multiple suppliers to reduce supply chain risks. In addition, with regard to parts (especially customized parts) that have only one
supplier, the Department works to maintain an appropriate level of inventory even during ordinary times, so that in the event of adisaster, these parts will be secured until the supplier's factory recovers.
FANUC has set up the Supply Chain Risk Management (SCRM) Working Group to consider, and take appropriate measures against
supply chain risks in the event of a NUC, as a point of contact with our suppliers, Purchasing Department gathers information on
the quality, delivery time, and cost, while internally sharing information in a timely manndisaster. The SCRM Working Group studies
the location and area of the manufacturing facilities for each part, so as to immediately determine which suppliers may have been
impacted, in the event of a disaster. This data has assisted us greatly in securing service parts that became difficult to obtain due tothe impact of COVID-19.
In addition, with the cooperation of our suppliers, the Group has built and is operating a system (automatic email transmission) toinvestigate the safety of suppliers' employees, as well as whether factories and other facilities have been damaged in the event of adisaster (an earthquake with an intensity of 5 or greater, etc.). The Group also investigates and analyzes our suppliersʼ efforts toward
BCP, and urges suppliers to make improvements, when deemed necessary.
Once it had established mechanisms for scheduling the above activities on an annual basis and updating the information every year,
and created a manual for each activity, the SCRM Working Group transferred its activities to the Purchasing Department. (July 2020)

Disaster Response TeamIn the event of natural disasters such as earthquakes and typhoons, the Purchasing Department conducts automatic emailtransmission (as described above). It also identifies suppliers that may have suffered damage based on factory location information it
has studied in advance, and conﬁrms their status.
In particular, in the event of a large-scale disaster, the Disaster Response Team initiates its activities in cases where the supply chain isdeemed to have been seriously damaged. The Disaster Response Team comprises personnel selected in advance from each research& development division, each production department, and the Purchasing Department. These personnel work together to grasp thestatus of suppliers, confirm the delivery time of parts, and take supplementary measures for parts difficult to obtain.
In response to the turmoil in the supply chain caused by the impact of COVID-19, we established a Disaster Response Team and took
various measures to ensure smooth supply of our products to customers.

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Supply Chain

Initiatives
Click here to see our responses to COVID-19.

Master Transaction Agreement
The following articles are incorporated in the master transaction agreement we conclude with each supplier, and compliance to thesearticles is required as important items.
Article 33 Environmental Policy and Environmental Laws and Regulations
Article 39 Elimination of Anti-social Forces

CSR Procurement Policy
FANUC established the CSR Procurement Policy in July 2019.
The Supplier Code of Conduct is prescribed within this Policy. We send this Policy to each supplier and request their compliance.

Declaration of Partnership Building
In July 2020, FANUC released a Declaration of Partnership Building with the aims of building mutually-beneficial relationships with
suppliers in its supply chain and increasing added value across the entire supply chain through new partnerships with suppliers.
The framework and structure for the Declarations of Partnership Building have been confirmed by the Council on Promoting
Partnership Building for Cultivating the Future, which consists of representatives from the business community and labororganizations, as well as government officials, and are being promoted by the Cabinet Office and the Small and Medium Enterprise
Agency.
Under our Declaration, we will strive to ensure that SMEs do not bear the brunt of unfair trade conditions caused by the impact
of COVID-19 and other reasons, and we will continue our efforts to encourage companies to introduce appropriate subcontract
practices. We will also encourage the building of new partnerships that involve efforts to increase added value across the supply chain
and open innovation that transcends business size, groups, and other boundaries.
To this end, going forward, we will continue to strive to develop mutual cooperation and relationships of trust that will enable us togrow and prosper together with our suppliers, with a view to fulﬁlling the social responsibilities of the entire supply chain.

Conforming with Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors
FANUC strictly complies with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (hereinafter the“Subcontract Proceeds Act”). Approximately 300 companies, or 30% of all of our suppliers, are subject to the Subcontract Proceeds
Act. We pay rigorous attention to ensure that there is no unjust disadvantage to our suppliers, in accordance with the Subcontract
Proceeds Act.

Conﬂict Minerals
FANUC has a policy of not using conﬂict minerals* in its products. Accordingly, we strive to gather as much information as possible
from our suppliers, in order to conﬁrm that the minerals are not sourced by illegal mining from conﬂict areas.
* Conﬂict minerals refer to minerals (tin, tantalum, tungsten, and gold) that are illegally mined in conﬂict areas (Democratic Republicof the Congo and surrounding regions). Companies listed in the United States are required to disclose and report the use of suchminerals, under the conﬂict mineral disclosure rule (Dodd-Frank Act) of the U.S. Securities and Exchange Commission (SEC).

Reduction and Elimination of Harmful Substances Contained in Products
FANUC promotes reduction and elimination of use of harmful substances targeted by the RoHS Directive and the REACH Regulation.
Accordingly, we notify our suppliers of the related policies and request their cooperation. Since new substances may be included due
to revisions of the regulations, we always strive to obtain the latest information regarding the directive and regulations.

Establishment of the Supplier Hotline
In June 2021, FANUC set up the Supplier Hotline as a contact point for suppliers to report to if they discover illegal, fraudulent,
unethical, or suspicious acts related to the business of the FANUC Group. Executives and employees of our suppliers can report
directly to designated law firms, enabling us to promptly discover, correct, and prevent problems.

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Disposal of Molds and Payment of Storage Fees
In March 2020, to protect subcontractors, the Ministry of Economy, Trade and Industry and the Small and Medium Enterprise Agency
revised and enforced the standards for encouraging fair practices and other guidelines concerning approaches to enhancing proper
mold management stipulated in the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises. Under the newstandards, it is necessary to dispose of molds that have not been used for a long time or to pay subcontractors for the cost of storingthem.
FANUC asked our subcontractors that store molds to file an application regarding the molds they wish to dispose of. We approved thedisposal of some molds, and decided to pay storage fees for the other molds that should not be disposed of. We began the disposalof molds in March 2019 and the payment of storage costs in March 2020.

Lump-sum Full Payment of Mold Costs
In the payment of mold costs to subcontractors, the standards stipulated in the Act on the Promotion of Subcontracting Small andMedium-sized Enterprises calls for the transition away from long-term payment methods such as 24-month installments, which placea burden on subcontractors, to methods of early payment, such as lump-sum payments. In April 2020, FANUC changed from the24-month installment payment method we had previously employed to a lump-sum payment method.

Goals
FANUC pursues the development of products that are “Reliable, Predictable, Easy to Repair”. In the belief that we will be able to earna high level of customer satisfaction over the long term by continuously supplying highly reliable product. We convey this policy to our
suppliers to encourage them to enhance the reliability of deliverables and other products.

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Supply Chain

Goals/Performance
Single-year Goals
So-called silent change (changes made to the quality of deliverables, unbeknownst to the Company) at our suppliers may have asigniﬁcant impact on the quality of FANUC products. In order to prevent such silent change, we require our suppliers to apply forchanges in 4M (Man, Machine, Method, Material) and obtain FANUC's approval in the event of any changes made to deliverables.
Each year, we send documents stating our request regarding changes to our suppliers, in order to obtain a response indicating theirconsent.
If some suppliers do not consent on the grounds of conﬁdentiality or respond by adding conditions, we hold discussions with thesaid suppliers and strive to increase the number of suppliers who provide consent, so as to maintain a high level of quality without
undermining mutual trust.

Performance in Fiscal 2020
We have been working continuously to achieve our single-year goals. In fiscal 2020, we also sent the same documents as those of theprevious year to obtain responses indicating our suppliers’ consent. Even for suppliers whose consent we could not obtain, we haveworked with quality control divisions to consider our suppliers’ conditions, an approach that has allowed us to reach agreement withthem in more and more cases. Going forward, we will strive to increase the number of suppliers who provide consent.

Medium-term Goals
We will build a database for the centralized management of supplier information. In addition to the supplier's information (sales, proﬁt,
items handled, and factory information) and the supplier's relationship with FANUC (transaction amount, products purchased, thecontact department and PIC within the supplier), the database will also list an evaluation of the quality, delivery time, and cost of eachsupplier. In addition, we will consider posting information such as the supplierʼs efforts on ESG-related items.

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Supply Chain

Responsible Sourcing of Minerals
Basic Policy
As part of its corporate social responsibility, the FANUC Group is committed to acting in a socially responsible manner regarding the
procurement of minerals.
The FANUC Group adheres to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas,” in order to respect human rights and avoid contributing to conflicts, by not sourcing mineral resources such astin, tantalum, tungsten, gold and cobalt, in its procurement activities, which are mined in conflict-affected areas and high-risk areas
such as the Democratic Republic of the Congo (DRC) and adjoining countries, where there are concerns of human rights violation insuch forms as forced labor or child labor, environmental exploitation, and actions which may fund armed groups.

Approach to Conflict Minerals
The FANUC Group surveys approximately 500 suppliers regarding their use of conflict minerals. If a problem is found, we change thesource we procure from to avoid using conflict minerals.

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Sustainability Report 2021

Environment

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Environment
FANUC Headquarters is located in a stunning forest environment adjacent to the Fuji-Hakone-Izu National Park.
We have been working to protect this wonderful natural environment on our premises spanning 1.78 million square
meters.
In 1999, in order to conserve the global environment, in addition to protecting the nature on our premises, weestablished the Environmental Policy, and have continued to update it since then. This policy guides all of ourenvironmental initiatives by summarizing and clarifying our basic stance, which is to reduce the environmental
burden at each stage of the product life cycle, from product development to procurement, production, andoperation.
Based on our basic vision of “leaving nature and resources to posterity”, we have been working on reductions of
CO2 emissions and energy consumption, which are considered to be the causes of climate change, the efﬁcientuse of resources such as water and minerals, as well as the proper disposal and reduction of waste, from both the
viewpoints of products and corporate activities.
FANUC shares this Environmental Policy not only within the Company and group companies, but also with its
suppliers to work on achieving global environmental conservation together.

Policy� Environmental Policy and Action Policy

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Environmental Preservation Activity

Promotion Framework and Initiatives
Environmental Management Promotion
FANUC recognizes that actions for the environment are an important tasks, with the President and CEO designated as the person
responsible for the initiatives. Important environmental issues, including climate change, are reported to the Board of Directors for
decision-making. Reports on the progress of FANUC's environmental initiatives, and the direct and indirect impacts of the environment
on our business activities are collected from environmental managers assigned to the relevant divisions, and reported at the ISO14001
meeting, which is chaired by the Executive Managing Ofﬁcer and General Manager, Production Division. Important matters arereported to the Board of Directors for decision-making.
Regular reports include the setting of environmental goals in March of each year, as well as a report on environmental management forthe previous ﬁscal year in June.

Environmental Management System
FANUC has acquired certiﬁcation for the international standard for environmental management systems ISO 14001 (2015 version).
In August 1999, the entire FANUC organization was granted ISO14001 certiﬁcation, with the registered range being those activities
related to FA, ROBOT, and ROBOMACHINE products (including research and development, manufacturing, and sales & service). Thisnot only covers Headquarters (Yamanashi) but also the Tsukuba Factory, Hayato Factory, and each of Hino, Nagoya, Osaka, Hokkaido,
Tsukuba and Kyusyu branches and ofﬁces. In ﬁscal 2018, our Mibu Factory was also included.
This environmental management system applies to every FANUC site in Japan, and also to the employees, factories, premises,buildings, facilities, corporate activities and environmental conservation activities related to the products and services offered by
FANUC's domestic group companies.

Scope of Application of Environmental Management System

Organization and StructureWith the Executive Managing Ofﬁcer and General Manager, Production Division serving as the chair, we hold ISO14001 meetings
once a year, consisting of representatives of related divisions, to determine activity plans and review activities. Important matters at
ISO14001 meetings are reported to the Board of Directors.

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Internal Environmental Audit
FANUC conducts internal environmental audits of all divisions every year. The purpose of these audits is to conﬁrm that theenvironmental management system conforms to ISO14001 standards and is being appropriately implemented and maintained. To
ensure objectivity and fairness, the audits are performed by auditors selected from divisions other than those being audited. In cases
where nonconformities are discovered in an internal environmental audit, corrective measures are implemented.

Environmental Education and Information Disclosure
To fully understand the signiﬁcant environmental aspects, risks and opportunities and to minimize, control and improve theenvironmental load, we provide environmental training to all our employees.
New recruits, regular employees, people in charge of speciﬁc tasks, and people in charge of environmental management are educatedin accordance with their respective tasks.

Compliance with environmental laws and regulations
FANUC has established a system to identify environmental laws and regulations, manage data related to both the direct and indirect
impacts of our business activities on the environment, and make reports regularly.
In the unlikely event of any violations of laws or regulations, we will take swift corrective actions.
In fiscal 2020 and in the past until now, there have been no serious violations of laws or regulations, ﬁnes or civil penalties, or major
spillages in relation to the environment. Furthermore, no complaints regarding environmental issues have been filed.

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Environmental Preservation Activity

Overview of Environmental Impact from Corporate Activities

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Environmental Preservation Activity

Goals

Mid-to long-term Environmental Targets
Item

Mid-to long-term environmental target

Amount of electricity consumption(input)Reduce electricity consumption (purchased electricity) by 10% or more per unit ofproduction from the fiscal 2020 level by fiscal 2030.

Freon refrigerant (discharge)

Reduce refrigerant emissions conducting regular inspections in accordance with laws andregulations by fiscal 2030.

Amount of kerosene used

Change from kerosene to city gas in the Headquarters area by fiscal 2025.

Amount of waste liquid discarded

Using fiscal 2020 as reference, identify the actual amount of waste liquid discarded inproportion to the level of production by fiscal 2025.
Thoroughly conduct storage management.

Using fiscal 2020 as reference, identify the actual amount of PRTR chemical substances
Amount of PRTR chemical substancesused in proportion to the level of production by fiscal 2025. Thoroughly conduct storage
usedmanagement.

CO2 absorption

Promote the switch from coniferous to broad-leaved trees by ﬁscal 2025.

Amount of fuel used to companyowned cars

Promote the reduction of fuel consumption of company-owned cars used fortransportation between sites and buildings by using online conference tools by ﬁscal
2025.

Development of environmentallyfriendly products

Implement reduction in size and weight, power consumption, and number of service parts,
while extending the product lifetime, etc., by establishing numeric targets for the end ofﬁscal 2025.

Environmental Targets for Fiscal 2020 and Performance
Item

Environmental target for fiscal 2020

Performance in fiscal 2020

Electricity
consumption

The target was to reduce the amountused in proportion to the level ofproduction by 3.54% from the previous
fiscal year’s level.

Target achieved with a 12.4% decrease from the previous fiscal
year’s level.
1.Saved electricity through equipment operation.
2.Saved electricity by improving equipment and installing energyefficient equipment.
In fiscal 2019, although efforts were made to promote the use of
LED lighting, conduct maintenance management of cogenerationequipment, and improve the energy efficiency of buildings, the target
was not achieved due to a decrease in the production level.

Kerosene
consumption

Switch to city gas in the headquarters
area.

Target achieved.
1.Partially switched to city gas in the headquarters area.

Create a feasible goal in proportion to
the production level.
Total storage management.

Target achieved.
1.Utilization of oil water separators.
2.Collection and reuse of cutting fluid attached to chips.
3.Use of a release agent with less waste liquid.
4.Use of cutting fluid with a long service life.
5.Utilization of distillation and regenerating equipment.
6.Emergency training for waste liquid leaks.

Create a feasible goal in proportion to
the production level.
Thorough storage management

Target achieved.
1.Use of cutting fluid that does not contain N,N-dicyclohexylamine.
2.Use of lead-free solder.
3.Use of an ethylbenzene-free coating.
4.Thorough storage management.
5.Emergency training for chemical leaks.

Amount of
discarded waste
liquidPRTR chemical
substance usage

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Developmentof eco-friendly
products

For the main products, reduce size
and weight, power consumption, andthe number of service parts, while
extending the life of those parts, etc., byestablishing numeric targets

Target achieved.
1.Reduction in size and weight.
2.Reduction of power consumption.
3.Reduction of the number of service parts.
4.Improvement of operating rates.
5.Reduction of hazardous substances in parts.

Environmental Target for Fiscal 2021
Item

Environmental target for fiscal 2021

Electricity consumption

The target was to reduce the power consumed in proportion to the level of production byat least 0.84% compared to the previous ﬁscal year.

Freon refrigerant (discharge)

Reduce refrigerant emissions conducting regular inspections in accordance with laws andregulations.

Kerosene consumption

Change from kerosene to city gas in the Headquarters area.

Amount of discarded waste liquid

Using the previous ﬁscal year as reference, identify the actual amount of waste
liquid discarded in proportion to the level of production. Thoroughly conduct storage
management.

PRTR chemical substance usage

Using the previous ﬁscal year as reference, identify the actual amount of PRTR chemical
substances used for production as compared with the level of production. Thoroughly
conduct storage management.

CO2 absorption

Promote the switch from coniferous to broad-leaved trees.

Amount of fuel used to companyowned cars

Promote the reduction of fuel consumption of company-owned cars used fortransportation between sites and buildings by using online conference tools.

For the main models of individual products, implement reductions in size and weight,
Development of eco-friendly products power consumption, and the number of service parts, while extending the product lifetimeof those parts, etc., by establishing numeric targets.

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Environmental Preservation Activity

Performance in Fiscal 2020
Amount of Electric Power Used
Actual Reduction in the Amount of Electric Power Used
As part of our efforts to reduce our output of greenhouse gases such as CO2 and thus prevent global warming, we are constantly
aiming to reduce the amount of electric power that we use.
The power used in proportion to the level of production in ﬁscal 2020 decreased by 12.4% compared to the previous ﬁscal year’slevel, and we could achieve the ﬁscal 2020 target.

Electric Power Reduction Measures (main measures implemented by ﬁscal 2020)
1.Some machine tools in our plants were exchanged for those incorporating auto power-off devices.
2.Some of the compressors in our plants were exchanged for those incorporating inverter control.
3.Energy-saving ﬂuorescent lamps (with electronic ballasts) and energy-saving compressors (inverter type) were installed in newbuildings.
4.The roofs of new buildings were changed to silver in color.
5.The roofs of new buildings were enhanced in heat insulation by duplicating them.
6.Power consumption was reduced with motion sensors.
7.Wind-shielding curtains were used for energy saving in air conditioning.
8.Measures were taken against heat emissions from compressors for energy saving.
9.Energy-saving measures were studied by energy-saving consultants.
10.Use of LED lighting was promoted.
11.Co-generation was promoted.

Amount of Kerosene Used
Kerosene Reduction Results
In some parts of the Headquarters area, kerosene was replaced by city gas.
As a result, we reduced the total amount of kerosene used by 32% compared to the previous year.

Amount of Waste Liquid Discarded and Amounts of Other Waste
Waste Liquid Reduction Results
Identiﬁed the actual amount of waste liquid discarded in ﬁscal 2020 in proportion to the level of production. Improved the managementof waste liquid, so as to prevent environmental pollution due to spilled waste liquid.

Waste Liquid Reduction Measures (main measures implemented by ﬁscal 2020)
1.Reused separated water by introducing oil-water separators
2.Collected cutting ﬂuid attached to chips and reused it.
3.Used mold release materials with less amount of waste liquid.
4.Used long-life cutting ﬂuid.
5.Reused distilled water by deploying distillation and regenerating equipment.

Other Waste
Almost all waste was recycled.
We sold waste metal 32,224 (t), waste plastic 19(t), and waste liquid 30(t) for recycling.

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Amount of Chemical (PRTR) Substances Used
PRTR Chemical Substance Reduction Results
Identiﬁed the actual amount of PRTR chemical substances used for production in ﬁscal 2020 in proportion to the level of production.
Improved the management of chemical substances, so as to prevent environmental pollution due to spilled chemical substances.

PRTR Chemical Substance Reduction Measures (measures implemented by ﬁscal 2020)
1.Used cutting ﬂuid that does not contain N,N-Dicyclohexylamine.
2.Replaced HCFC 141b with other materials.
3.Used oil not containing xylene.
4.Banned the use of copper salts.
5.Banned the use of ferric chloride.
6.Used lead-free solder.
7.Used coating material containing no ethylbenzene.

Total Chemical Substance Control
In order to implement the total ﬁeld control of objects stored by divisions using chemical substances, we conducted the following
inspections and remedied those defects found as a result of those inspections:
1.Entry of stored objects into the ledger
2.Name indication
3.Maximum quantity of dangerous objects that can be held in the storehouse
4.Whether storage containers are free from damage and leakage.
5.Whether periodic inspections are conducted.
6.Whether protective devices are provided.
We also conducted an emergency drill assuming chemical substance leakage.

Development of Environmentally Friendly Products
The research and development divisions evaluate the environmental impact of products, set targets and develop environmentallyfriendly products.
The Product Development Subcommittee under the environmental management system prepares environmental management plans,
and product developments are conducted based on medium- to long-term plans and annual plans.

CNC System

1.Reduction in power consumption
2.Minimizing down time
3.Hazardous chemical substance reduction

LASER

1.Reduction in material consumption
2.Reduction in power consumption
3.Hazardous chemical substance reduction

ROBOT

1.Reduction in number of service parts while extending product lifetime
2.Reduction in size and weight
3.Hazardous chemical substance reduction
4.Reduction in power consumption

ROBODRILL

1.Reduction in number of service parts while extending their product lifetime
2.Reduction in power consumption
3.Hazardous chemical substance reduction

ROBOSHOT

1.Reduction in number of service parts while extending their product lifetime
2.Reduction in power consumption
3.Hazardous chemical substance reduction

ROBOCUT

1.Reduction in number of service parts while extending their product lifetime
2.Environmental load reduction after disposal
3.Hazardous chemical substance reduction

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Climate Change
Basic Approach
FANUC is addressing climate change throughout its corporate activities. In the life cycle of products, energy is consumed not only
when they are produced, but also when they are used by our customers, who should enjoy higher energy-saving beneﬁts. FANUC
has long been working for customersʼ energy-saving on top of reducing energy consumption during production and transportation. In
order to respond to climate change, FANUC has set medium- to long-term objectives to reduce CO2 emissions. The objectives cover
all sources of energy used for R&D and production activities, including electricity, gas and oil.

Promotion Framework
FANUC recognizes addressing climate change as an important issue, with the President and CEO designated as the person
responsible for the related initiatives. Important subjects relating to climate change are reported to the board after discussion andsummarizations in our environmental management and promotion committee meetings.
Environmental Management Promotion

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Climate Change

Climate-related Risks and Opportunities
Risks Related to the Transition to a Low-carbon Economy
Type

Major risks

Main initiatives

Market/Reputation

As majority of our shareholders is ESGWe will continue to work to improve our ESG initiatives in order toconscious, expansion of ESG related investment
enhance corporate value.
is likely to affect us.

Reputation

There is a risk of lawsuit by customers who
claim delayed delivery, which will be caused
by likely heavy snowfall in our Headquarters
Factories (Yamanashi Prefecture).

In order to disperse risks, we have developed multiple manufacturinglocations in the Mibu area (Tochigi Prefecture), the Tsukuba area
(Ibaraki Prefecture), and the Hayato area (Kagoshima Prefecture) inaddition to our Headquarters area (Yamanashi Prefecture).

Risks Related to the Physical Impacts of Climate ChangeType

Major risks

Main initiatives

Acute

There is a risk that typhoons and ﬂoods will halt In order to diversify risks, we have established a new service
our service operations in the Call Center, and in location, Nagoya Service Center in Komaki City, Aichi Prefecture indelivery of maintenance components.
addition to the one at Hino Branch Ofﬁce (Hino City, Tokyo).

Acute

Due to the location of our Headquarters
Factories (Yamanashi Prefecture) at the footof Mt. Fuji (at an elevation of roughly 1,000
meters), there is a risk, for example, that the
supply of kerosene will be cut off by heavy
snowfall which may cause our factory to stop
operation.

By laying connecting gas pipeline to the main line, we are switchingenergy from kerosene to city gas.
In order to diversify risks, we have developed multiple manufacturinglocations; Mibu Factory (Tochigi Prefecture), Tsukuba Factory (Ibaraki
Prefecture), and Hayato Factory (Kagoshima Prefecture) in addition
to our Headquarters Factories (Yamanashi Prefecture).
We are also working to minimize the impact of snowfall bypurchasing snowplows and constructing multilevel parking lots.

Acute

There is a risk of procurement delays of our
suppliers caused by typhoons and ﬂoods.

In order to reduce procurement risk by climate change, we are
studying whether our suppliers have an ability to produce in multiple
locations. If not, we will urge the suppliers to have multiple sites, or
procure from multiple suppliers.

Chronic

There is a risk of rising temperatures having
negative impacts on our working andproduction environments.

Due to the cool-climate location (Yamanashi Prefecture) of our
Headquarters, there used to be no needs for air-conditioning
equipment in some buildings. However, as a result of recent climatechange, it has become became necessary to have such equipment,
while considering their efﬁciency.

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Climate-related Opportunities
Type

Major Opportunities

Main initiatives

Products/
Services

The transition from internal combustion engines
to EVs powered by electric motors, driven bymeasures taken by the automobile industry
to combat climate change, may have a major
effect on the market environment for our main
products in the FA business.

The transition to EVs is expected to expand the range of robot
applications leading to an increase sales. Further, increased sales of
sensors and cameras will favorably affect the sales of ROBOSHOT(electric injection molding machine). Furthermore, requirements forhigh-precision components (to be used in EVs), as well as demand
for mold machining of such component, will result in a growth indemand for CNC along with machine tools.

Products/
Services

Stricter environmental regulations on resource
conservation led by Europe, such as reducing
greenhouse gas emissions and managing
chemical substance, may lead to increased
costs.

Leading the development of energy-saving products and productswith high energy efﬁciency will provide opportunities to expand salesof our products in developed markets such as Europe.

Products/
Services

Environments where factory equipment areused are expected to become harsher mainly
We have the ability to develop competitive products with highdue to the rise in temperature. In addition,
impact of typhoons and rising temperature may performance and reliability to further increase our sales even under
deteriorate transportation conditions. There
harsh operating and transport conditions.
may be a greater demand for products that arecapable of coping with such conditions.

Products/
Services

With more than 260 service locations around the world, we offer
There is a possibility of a growth in environmentmaintenance services for as long our customers use the FANUC
conscious equipment wit
products.

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Climate Change

Initiatives
Product Initiatives (Energy-savings)
FANUC is promoting energy saving in its products. There are two important initiatives, one is to conserve energy at our customers’
factories using our products. The other is also to conserve the energy in our own factories. Considering the life cycle of FANUC
products, the first initiative has a far greater effect on energy-savings. Therefore, we have long been working on developing energyefficient products.

Development of large-capacity servo
motorsWe have developed a high-precision, high-efﬁciency, large-capacity servo motor fully
utilizing our advanced digital control system.
In the ﬁeld of industrial machines, including press machines, which require tremendous
power, we have achieved energy saving by introducing this large-capacity servo motor inplace of hydraulic pressure.

Adoption of power regeneration
system

In the servo ampliﬁer, we use a power regeneration system that returns energy to thepower supply when the motor decelerates. This effective use of the power supply leads
to energy savings. When mounted on a ROBODRILL, it reduces energy consumption byapproximately 34% compared with the resistance-regeneration method. Furthermore,
the adoption of new power devices has reduced energy loss of the servo drive by roughly
40%, compared with the 1995 equivalents (when installed on a ROBODRILL).

Power consumption monitoring
function

By developing power-consumption-monitoring function, we have made it possible tomonitor the amount of power consumed by our CNC and motors, enabling the efﬁcientadjustment of the cycle time.
By using the energy-saving level-selection function, we have made it possible to choose
the type of operation: one that prioritizes cycle time and one that prioritizes power
consumption.
When sufﬁcient time is available before delivery, or when there are differences in cycle
times in the production line, this function can effectively adjust power consumption inaccordance with the circumstances, therefore contributing to energy savings for the entire
factory.

Fast Cycle-time Technology

This series of functions reduces cycle time. Reducing operating time contributes toreductions in both direct and indirect energy consumption (e.g., energy consumption by
auxiliary equipment, such as in turning a coolant pump while the machine is running).

Improving the efﬁciency of laser
electrical-optical conversion

Improving the electrical-optical conversion efﬁciency has enhanced the wall plug
efﬁciency to 40% in ﬁber laser technology. This technology is four times more efﬁcientthan conventional CO2 lasers, which have an efﬁciency of 10%, and is 1.3 times more
efﬁcient than conventional ﬁber lasers, which have an efﬁciency of 30%.

Averaging the load of power demandNight operation using robots disperses peak power and curbs power consumption.

Reducing CO2 emissions by reducing
weightWe have reduced the weight per unit output of laser oscillators by half and in doing so,have reduced the amount of CO2 emission during transportation. CO2 lasers, with a weight
per unit performance of 1,300 kg, can be replaced by ﬁber lasers with a performance of
600 kg (based on 6 kW machines).
In addition, the design of the robot mechanical arms with lighter weight also reduces power
consumption. For the robots with a payload of 165 kg, the Robot S-430i W in 1997 weighed
1,300 kg while the Robot R-2000iC/165F in 2013 is lighter with weight of 1,190 kg.
In addition, the collaborative robot CRX has a robot mass of 40 kg with a payload of 10 kg,
which is considerably lighter than the robot mass of 150 kg common to robots in the sameclass thus far, and reduces power consumption.

CFC substitute-free

We replaced the cooler in the laser cabinet with a Peltier dehumidiﬁer to attain a CFC-freeenvironment that leads to the protection of the ozone layer. No CFCs are emitted when
our customers use FANUC laser products. This also eliminates the need to hand overﬂuorocarbon refrigerant (for collection) at the time of disposal.

Optimal operating program

By optimizing the operating program with ROBOGUIDE, power consumption is reduced
and the lifetime of the reducer is extended to reduce running costs.

Efﬁcient robot utilization

Use of an autonomously moving, Automatic Guided Vehicle (AGV) with collaborative
robots allows a single robot to work in multiple locations, improving the efﬁciency ofrobots. This reduces standby power, compared with installing multiple robots.
In addition, the latest model of the collaborative robot CRX has a very light robot mass of
40 kg, and the AGV can also be made compact. Furthermore, the CRX can be moved ona handcart instead of on an AGV, making it possible to move the robot to the place where
and when it is needed.

Highly reliable automatic wire feeding(AWF3)ROBOCUT is capable of unmanned operation for long periods, thanks to the highly
reliable automatic wire feeding AWF3, which can automatically recover feeding evenwhen a wire is accidentally cut and disconnected. Stable night-time machine operation
disperses peak power usage and curbs power consumption.

Discharge control iPulse3

Our newly developed discharge control iPulse3 reduces machining time by approximately
10% compared to that of conventional control. Reduced machining time curbs power
consumption.

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Electriﬁcation of peripheral equipment

Additional axis options for ROBOSHOT can electrify hydraulically controlled peripheral
equipment.

ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses supporting businesses rationalizing energy
use in production equipment, allocated in the fiscal 2019 supplementary budgets in recognition of their energy saving potential.
ROBOMACHINE products are used in the production of medical instruments, including syringes and artificial bones, contributing toefforts to achieve a goal among SDGs of securing healthy life.

Awards/Topics on Energy Saving
ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses supporting
businesses rationalizing energy use in production equipment, allocated in the fiscal 2019 supplementarybudgets in recognition of their energy saving potential. (2020)
ROBODRILL α-DiB Series
ROBODRILL α-DiBADV Series
ROBOSHOT α-SiA Series
Approved for subsidies for the introduction of energy-saving equipment for local factories and small- andmedium-sized enterprises (2014)
ROBOCUT α-CiA Series

Prize of the Director General of Agency of the Natural Resources and Energy, Excellent Energy Saving
Device Award Program by the Japan Machinery Federation (2003)
For our large-capacity servo system with a power regeneration feature and precision digital control and for our large-size AC Servo
Motor α i Series

The Minister Award of the Ministry of International Trade and Industry (1999) in the ﬁrst Global Environment
Award competition
The Minister Award of the Ministry of International Trade and Industry, Excellent Energy Saving Device
Award Program by the Japan Machinery Federation (1998)
For our wire electric discharge machines equipped with a high-speed automatic wire feeding mechanism and thick plate tracking
control
ROBOCUT α Series

The Minister Awards of the Ministry of International Trade and Industry, Excellent Energy Saving Device
Award Program by the Japan Machinery Federation (1995)
ROBOSHOT Series

Production Initiatives
FANUC will contribute to energy-savings in our manufacturing facilities.

Streamlining the assembly process

At the Hayato Factory (Kagoshima Prefecture), cleaning was previously carried out using
an ultrasonic cleaning device during the assembly process of ﬂexible cables. However,this process was eliminated by reconsidering the necessity of cleaning in order to reduce
annual power consumption (by 158,976 kWh).

Introduction of cogeneration system

We have introduced cogeneration systems at our new Mibu Factory (Tochigi Prefecture)
and Tsukuba Factory (Ibaraki Prefecture) to actively utilize waste heat. They havecontributed to reduce the amount of electricity purchased and fuel consumption used for
gas-ﬁred cold/hot water generators, which eventually reduce CO2 emissions.
The estimated annual CO2 emissions reduction by the cogeneration system is 1,163 tCO2e
at the Mibu Factory (Tochigi Prefecture) and 957 tCO2e at the Tsukuba Factory (Ibaraki
Prefecture).

Consideration for the environment byswitching to city gas

By switching the fuel (for boilers in the Headquarters area) from kerosene to city gas, weare continuously aiming to reduce CO2 emissions by 25%, and eventually to promote our
BCP. At the same time, we are working to eliminate kerosene tanks at during this transitionin order to reduce the risk of soil contamination.

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Logistics Initiatives
FANUC contributes to saving energy required for manufacturing products.

Use of truck return trips

The trucks that deliver CNC systems to machine tool builders in Japan are normally empty
on their return trips. We are notifying suppliers of the availability of such empty trucks
so that they can use them for parts deliveries, thereby improving the efﬁciency of truck
operations (reducing the number of trucks) and reducing CO2 emissions.

Container packing at our factories

In the past CNC systems for export were transported by truck from FANUC to a port
warehouse, and were packed into containers in a port area. We have changed theprocedure and have installed equipment to ship containers from FANUC factories, so thatthey can be sent directly to the packing area. This has made it possible to reduce thenumber of trucks by improving the container loading rate and by replacing trucks withtrailers, which have a larger loading capacity.

Improving on-site logistics efﬁciency

Local roads surrounding our Headquarters area used to be congested by trucks toaccommodate on-site logistics among the many factory buildings. By improving private
on-site roads, we have reduced the use of the local roads, secured trafﬁc routes, andfacilitated logistics. In the Mibu Factory, all factories are connected by conveyors,
eliminating truck-based transportation within the premises. Tsukuba Factory has
eliminated the use of trucks for transport within its premises by increasing the size of thebuilding, and connecting all robot production processes by conveyors within the samebuilding.

Initiatives at Non-production Sites
Installation of solar power generationequipment

Solar power generation equipment has been installed in some of the buildings in our
Headquarters area. In ﬁscal year 2020, a total of 38.69 Mw was generated from solar
power.

LED lighting

We have converted mercury lamps and general-purpose ﬂuorescent lamps (used in
our factories and ofﬁces) to LEDs, and also replaced ceiling lights, guidance lights, andemergency lights with LED lighting. In addition to the use of LEDs, motion detectors havebeen installed in areas where people are not always present, such as corridors and toilets,in order to prevent unnecessary lighting.

Cogeneration system

We have introduced a cogeneration system in our Headquarters area, using waste heat
for the welfare facilities in company housing and dormitories, as well as for the hot watersupply and heating at FANUC ACADEMY.

Building renewal

At our Osaka Branch, we have renovated the entire building, with only the framework
left in place, and introduced energy-saving air-conditioners, LED lighting, and motion
detectors. We have reduced air-conditioning power consumption by 60% and total power
consumption by 40%.

Demand response

In response to a request from the power supply company, we conduct, so-called
Negawatt Transactions, to reduce power consumption when the power supply anddemand are expected to be tight.

IT infrastructure

By turning off PC monitors during breaks, estimated annual power savings is expected tototal 28,800 kWh.

Enhancement of building insulation

To reduce the amount of energy used for heating and cooling, we have introduced
various measures to enhance insulation, such as external and internal insulation, doublewall (double-skin) construction for external walls, condensation-proofing, and the use of
double-glazed windows. Double-skin walls have been adopted in the parts center buildingof the Hino Branch Office and in the Nagoya Service Center.
For company housing built in 2017 or later, we are working to build facilities with the aimof obtaining a rating of B+ to A (self-assessed) in the Comprehensive Assessment System
for Built Environment Efficiency (CASBEE), by actively introducing external insulation anddouble-glazed windows.

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Climate Change

Collaboration with Stakeholders
Collaboration with suppliers

We collect information on climate change from a total of 12 companies, composed oftwo manufacturing subsidiaries and 10 of our partner suppliers, whose sales to FANUC
exceed 30%. We survey suppliers regarding speciﬁc items such as volumes of fossil
fuel consumption, electricity consumption, and industrial waste, and provide advice asneeded.
In fiscal 2020, we confirmed that there were no serious problems or risks, and that they
are continuing to work on energy conservation.

Collaboration with customers

We conduct training for our customers in our training facility, FANUC ACADEMY, to explain
the beneﬁt of energy-saving to be achieved by using our products.
Through this training, we also explain how to operate each product, drawing thecustomers' attention to energy conservation.

Collaboration with industry
associations

We have participated in the deliberations of the Japan Machine Tool Builders’
Association, the Japan Robot Association, and the Japan Society of Industrial Machinery
Manufacturers to encourage setting of the industry target. Through these associations,
we are making proposals to and cooperating with the Ministry of the Environment and theMinistry of Economy, Trade and Industry on climate change.

Collaboration with local communities
and society

In response to the Tokyo Cap-and-Trade Program, which is part of the Tokyo Metropolitan
Government's climate change strategy, Hino Branch Office changed its boiler fuel fromkerosene to city gas in March 2006. As a result, 2,791 tons of excess reductions had beenregistered with the Tokyo Metropolitan Government by 2016.

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Resources and Waste
Basic Approach
Under the vision of “leaving nature and resources to posterity”, FANUC promotes the efﬁcient use of resources, and proper disposal
and reduction of waste.
We will provide our lifetime maintenance for our products as long as they are used by our customers. As our customers do not needto discard older used products or purchase new models due to such maintenance service, they will eventually reduce wastes andenjoy effective use of resources.
In addition, we reduce waste and make effective use of resources in every aspect of our business activities, including development
and packaging of our products and reuse of materials, as well as thoroughly managing the use of chemical substances.

Promotion Framework
FANUC recognizes addressing resource and waste management as an important issue, with the President and CEO designated as the
person responsible for the related initiatives.
Important subjects relating to this management are reported to the board after discussions and summarizations in our environmental
management and promotion committee meetings.
Environmental Management Promotion

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Resources and Waste

Thorough management of chemical substances
FANUC uses chemical substances as raw materials in production process, but we are working to reduce the use of substances to theabsolute minimum.
To ensure that our customers around the world can safely use FANUC products, we are working to comply with chemical substancemanagement regulations in each country and region, and even voluntarily comply with stricter regulations.
FANUC conducts surveys of its business partners regarding the status of their response to the RoHS Directive and substances newly
added to the Substances of Very High Concern (SVHC) list under the REACH Regulation that are contained in their products. Further,
we also support various safety standards such as CE marking certiﬁcation, UL Standards, and GB standards, as required.

Monitoring and managing PRTR
chemical substances

We have reduced our use of chemical substances in accordance with the PRTR Act.
As our measures have proven to be effective and the amount that can be reduced has
become limited, since 2016, we have calculated the usage in proportion to production,rather than to the absolute amount.

Conforming with RoHS Directive

Even though FANUC products are not subject to the RoHS Directive (Directive on the
Restriction of the Use of Certain Hazardous Substances in Electrical Equipment), FANUC
is voluntarily working to eliminate the use of hazardous substances. In new designs, allmaterials, including auxiliary materials used in manufacturing, are below the thresholddictated in the RoHS2 Directive, and we are in the process of replacing parts in existing
designs.

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Resources and Waste

Initiatives

Product Initiatives

Lifetime maintenance

Even for discontinued models, we provide lifetime maintenance as long as they are usedby customers. As a result, FANUC products can be used at economical cost for several
decades, and therefore generate minimum waste.
Lifetime maintenance

ROBOSHOT's high molding performance reduces plastic molding defects, and its function
to support the automation of production setup will reduce downtime between production
Beneﬁts of high-performance products lots, and reduces losses of materials. In addition, we will help reduce the amount of plastic
waste by increasing the yield rate when using recycled materials from plastic scraps andwaste.

designing products in small size,
we reduce weight and number ofcomponents

We have reduced the use of resources by designing products in small sizes and withfewer components.
We apply modular designs to standardize parts, thereby reducing the variety of procured
components, as well as maintenance components.

Proper maintenanceGrease and oil can be replaced at the most appropriate time with the intelligent greasechange reminder function, reducing the amount of grease and oil waste.

Production Initiatives
Reducing water-soluble cutting ﬂuid

By designing products in small size, we reduce weight and number of components

Reducing failure rate

We have made efforts to optimize solder printing settings and to reduce scratch defects. It
has improved the failure rate of CNC equipment from 0.0073 to 0.0066 per unit.

Changing our casting method

By changing the casting method of the arm of high-performance ROBODRILLs from awooden die to a metal die, we have reduced cutting expenses. This has also reduced thecycle time (per machine) from 18 minutes to 16 minutes.

Initiatives in Packaging Materials
In translating products in containers directly from a port to a warehouse, we used to pack
ROBOTs and ROBOMACHINEs in steel cases. However, we are now able to signiﬁcantly
Signiﬁcant reduction in the use of steel
reduce the use of steel cases by using the containers as the packing cases. It means
casesthat we are directly packing ROBOTs and ROBOMACHINEs onto containers as much as
possible.

Reducing weight and increasing
density

We have changed the shipping packaging of SCARA Robots from steel skids to cardboard
packaging to improve transport efﬁciency.
We also introduced recyclable cardboard packaging for the new collaborative robot CRX.

Saving resources

We have changed the shape of steel skids used in transporting, while maintaining theirstrength, to reduce the amount of steel used.

Reducing use of cardboard

We have stopped using cardboard in the delivery of eyebolts from suppliers, andintroduced reusable mesh pallets. This has led to an estimated annual waste reduction(paper waste) of 120 kg.

Adopting reusable shipping boxes

We have stopped using packing materials in the delivery of sheet metal covers, andadopted reusable shipping boxes with interior padding. This has led to an estimatedannual waste reduction (paper waste) of 99.6 kg.

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Initiatives for Reuse

Transport packaging, pallets

We have changed shapes of the cardboard (boxes used in delivering CNC systems tomachine tool builders in Japan) to be reusable and by arranging delivery trucks to collectthe empty cardboard boxes to inspect them and repair for reuse.
We also send the steel skids, which are the packing material used when importing
castings, back to the foundry for reuse.

Waste liquid

We reduce the amount of waste liquid from ma chine tools by using waste-liquid-recycling
devices. This has resulted in an estimated annual reduction of waste liquid of 852 t.
At our Headquarters Factories, Tsukuba Factory, and Mibu Factory, we are promoting the
reduction of waste liquid by using long-life cutting ﬂuids.
In addition, at our Headquarters Factories and Tsukuba Factory, we are reducing waste
liquid by reusing the cutting ﬂuid adhered to chips (metal chips) generated duringmachining.
Die-casting factories in Headquarters and Mibu are promoting the reduction of waste
liquid by using mold release materials.

Chips and cutting tools

We hand over chips produced during cutting at our factories, as well as cutting tools thathave become unusable due to heavy wear to recyclers, so that they can be reused as raw
materials.

Initiatives in Offices
Reduction of paper consumption

We reduce the use of paper by digitizing company documents.

LED lighting

We promote the use of LED lighting, which does not use the mercury, lead, or cadmium
contained in ﬂuorescent lamps, etc., thereby facilitating reduction in disposal of lighting.

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WaterBasic Approach
FANUC Headquarters is located in the rich natural environment adjacent to the Fuji-Hakone-Izu National Park, and we use the clean
and abundant groundwater of Mt. Fuji as a water source. The groundwater pumped from 80 meters below is stable in terms of bothvolume and quality throughout the year. We can say that FANUC is blessed with water resources, and has almost no risk of water
shortages.
However, we are well conscious of the fact that, there are water shortages in other parts of the world, and the United Nations
Environment Programme has reported that water shortages will become even more severe in some regions by 2025.
FANUC, therefore is working to conserve water resources, such as through daily water recycling, efﬂuent puriﬁcation treatment, andwater quality management.
In order to discharge higher quality wastewater, we comply with regulated amounts of water pollutants.

Promotion Framework
FANUC recognizes addressing the conservation of water resources as an important issue, with the President and CEO designated as
the person responsible for the related initiatives.
Important subjects relating to these resource conservation issues are reported to the board after discussions and summarizations in
our environmental management and promotion committee meetings.
Environmental Management Promotion

Initiatives in Our Headquarters Area
25 factories are located in FANUC Headquarters, all of which use groundwater when required for production. In addition, our factories
reuse the water they have used for production for cooling and other purposes.
When discharging sewage, we conduct partial purification to adjust the pH value, striving to ensure high effluent standards.

Reusing Water
Cyclical use of cooling water

We circulate and reuse the cooling water that is used to cool the production equipment in
the die-cast factory at Headquarters.

Reusing wastewaterIn our ROBOT factory No. 1 at Headquarters, 41% of wastewater is reused by utilizing oilwater separators.
In our servo motor parts machining factories No. 1 and 2 at Headquarters, we reuse 11%of wastewater by making full use of distillation and regeneration equipment. In the future,
our new factory (servo motor parts machining factory No.3) is expected to be able toreuse nearly 80% of wastewater by increasing the efﬁciency of wastewater use.

Reusing machining liquid

In our ROBOCUT factory at Headquarters, we plan to introduce a new machining liquidtank dedicated to testing, in order to enable 90% reuse of the machining liquid (water) for
testing during manufacturing. (Completed in December 2019)

Collaboration with Suppliers
Because water resources are used by our suppliers in the process of cooling castings and by our customers in the process of using
our products and systems, indirect use of water resources is also an important issue.
FANUC, therefore, are asking suppliers to adopt our CSR Procurement Policy, and to promote the efﬁcient use and cyclical use ofwater resources.
A total of twelve companies, namely two manufacturing subsidiaries and ten suppliers whose sales to FANUC account for more than
30% of their total sales, are surveyed once a year on specific matters such as water consumption and water emissions. The results
are then quantified for evaluation, based on which risks are identified and assessed. We select the top three companies that are
defined as significant, set specific goals for reducing the environmental load of their production, and encourage them to take steps
toward those goals. In the event of significant changes in the numbers, we check the reasons for those changes and provide advice,
as necessary.

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Biodiversity
Basic Approach
Following on our basic vision of “leaving nature and resources to posterity”. FANUC is striving to maintain biodiversity, by preserving
the stunning natural environment of 1.78 million square meters in which our Headquarters is located, adjacent to the Fuji-Hakone-Izu
National Park.
Our Headquarters area is home to a variety of trees including native forests, as well as artiﬁcially planted Japanese larches and red
pines, making it a treasure trove of wild birds, plants, and ﬂowers. We will continue to take care of the forests and plant new trees, inorder to protect the richness of the land around Mt. Fuji, a World Heritage Site.

Forest Conservation Activities
FANUC Headquarters is located in a stunning natural environment neighboring the Fuji-Hakone-Izu National Park. While the greening
rate is speciﬁed in this area, we are striving to create a FANUC Forest that is more abundant than the designated greening rate. We
maintain our forest on a daily basis, and as a result, the trees and ﬂowers adorn the changing seasons, and various wild birds can beseen here.
When constructing factories and other buildings, we select locations with as few trees as possible, in order to minimize deforestation.
Furthermore, our use of land takes advantage of the natural terrain, and we make plans that maximize conservation of theenvironment, such as by ensuring that the heights of buildings do not exceed the height of the surrounding trees. Since parking
lots require large areas of ﬂat land, we are currently building multilevel parking lots in order to maintain the greening rate. In theconstruction of parking lots started in 2016, we have completed seven parking lots, comprising a total of 92,250 square meters of
ﬂoor space and 3,393 parking spaces as of 2019. These multilevel parking lots have preserved 65,300 square meters of green space.

100-year Forest Restoration Plan
Demand for timber during the wartime regime and the period of rapid economic growth encouraged the planting of conifers, so mosttree plantations are now coniferous. Parts of our Headquarters are also coniferous forests that were artiﬁcially planted. Our basic
policy for green space management in the FANUC Headquarters is to convert these existing planted coniferous forests into a broadleaved forest, which is better suited to this area, over the long-term. The current coniferous forests have been planted for many years
with fast-growing red pines, larches, ﬁrs, etc., which are used as sand protection forests and to satisfy demand for timber. Our aim is
to convert these artiﬁcially planted coniferous forests into rich forests where small birds and animals can coexist, by changing theminto evergreen broad-leaved trees and broad-leaved forests suitable for the surrounding natural vegetation that blossom, bear fruit,and drop leaves.
In order to steadily achieve this goal, FANUC is cooperating with the Yamanashi Forestry and Forest Products Research Institute. We
began implementing our plan to regenerate a forest that is suitable for the natural ecosystem of the area in 2015, and have planted
trees since 2016. Because it is difﬁcult for the trees to survive, we are engaging in the effort over the long term.

Forest That Absorbs CO2
Currently, the coniferous forest on the premises of the FANUC Headquarters is densely packed with trees, making it difficult for the
sun’s rays to reach the forest interior. This means that new young trees receive insufficient exposure to sunlight. With such a highdensity of tall trees, it will become increasingly difficult for the coniferous forest to perform its inherent function as a forest. To prevent
soil degradation and maintain the forest’s abundance, FANUC aims for creating a forest that can absorb more CO2. It will achieve thisaim by thinning trees to ensure appropriate tree density and deliver sunlight to the forest interior.
As stated in the 100-year Forest Restoration Plan, because the existing forest was artificially planted with a single species ofconiferous tree, we are making efforts to convert it into a mixed-species forest that includes native trees and to change gradually
to original vegetation of this area. We are pursuing a plan to replant mainly evergreen broad-leaved trees (e.g., Japanese pieris andlongstalk holly, which grow well on high ground), as well as cultivating deciduous broad-leaved trees that bear fruit, to create a habitatfor small animals.

Conservation of Waterside Organisms
The FANUC Headquarters area has eight regulating ponds of various sizes that serve as temporary rainwater storage. Water isretained constantly in seven of these ponds and various species of waterweed, such as common reeds, blood irises, sweet flags, andskunk cabbage, are planted and protected to purify the water and create a habitat for waterside organisms. Weeding management of
the ponds is conducted annually from the end of November to early December.
All regulating ponds are also weeded in summer and autumn, and the drainage outlets are managed as needed. Other works, such as
status checking, inspection, repair, and cleaning are performed after typhoons and heavy rainfall.

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Conservation of Rare Plant Species
In the premises of our Mibu Factory in Tochigi, the rare plant Lecanorchis suginoana, which appears in the Red Data Book Tochigi
2018, compiled by Tochigi Prefecture, has been found growing. The entire area can be said to constitute a valuable naturalenvironment.
FANUC complies with environmental laws and regulations, and cooperates with the environmental surveys conducted by Tochigi
Prefecture.

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Sustainability Report 2021

Governance

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Governance
FANUC recognizes that a company will last forever and be sound with “strict preciseness” and the corruption of an organizationand downfall of a company start from a lack of “transparency”. Based on this basic principle of strict preciseness and transparency,
FANUC has established a system and is endeavoring to achieve sustainable growth as a company, while striving to earn trust of
stakeholders, including customers, employees, shareholders, suppliers, and local communities.

Policies
� FANUC Code of Conduct
� Corporate Governance Guidelines� Information Security Policy
� Anti-Bribery Policy
� Tax Policy� Guidelines for Restricting Contact with Competitors

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Corporate Governance
Basic Approach
In order for the Board of Directors to fulﬁll its monitoring functions in sync with the ﬁeld, Executive Directors shall disclose and explain
accurate and timely information from worksites to the Board of Directors. The Board of Directors shall not restrict itself to theoretical
discussions, but rather, shall strive to hold discussions that are constructive. In addition, FANUC has established the Nomination andRemuneration Committee, a majority of which comprises Independent Outside Directors, and is chaired by an Independent Outside
Director. By increasing the objectivity and transparency of the appointment and evaluation of Directors, this committee ensures thestrict preciseness and transparency of monitoring functions of management (the executive functions).

Promotion Framework and Initiatives
� FANUC is a company with an Audit & Supervisory Board. We place importance on the opinions of the Audit & Supervisory Board
Members at the Board of Directors, while keeping the Board of Directors (the monitoring functions of management) and the
management side (executive functions) independent from each other.
� Four of the twelve members of the Board of Directors are Independent Outside Directors, which account for over one-third of theBoard of Directors.
� In our efforts to promote diversity in the Board of Directors, the Directors include one woman and one foreign national.
� Three of the five Audit & Supervisory Board Members are Outside Audit & Supervisory Board Members, one of whom is a woman.
� From the perspectives of whether the respective independence of the Board of Directors and management is maintained andwhether the effects of diversity are produced, we will continue to verify, on a regular basis, whether discussions within the Boardof Directors and the Audit & Supervisory Board are lively and if the contents of those discussions are in line with the actual
circumstances, making any improvements as necessary.

Nomination and Remuneration Committee
With respect to appointment and dismissal and remuneration, etc. of Directors, we have established the Nomination and Remuneration
Committee, the majority of which is composed of Independent Outside Directors, to secure the objectivity and transparency, etc. ofprocedures through the deliberation by this Committee.
Members:
Outside Director Kazuo Tsukuda (Chairperson)
Representative Director, Chairman Yoshiharu Inaba
Representative Director, President and CEO Kenji Yamaguchi
Outside Director Yasuo Imai Outside Director Masato Ono
Outside Director Naoko Yamazaki

Evaluation of the Effectiveness of the Board of Directors
Opinions, evaluations, and other feedback are received from the Directors (especially Independent Outside Directors) and Audit &Supervisory Board Members at meetings for exchanges of opinions, which are held twice a year in principle. In addition, annual
questionnaire surveys on the effectiveness of the Board of Directors are conducted to find necessary topics related to the evaluation.
The Board of Directors deliberates on these topics, as appropriate, and discloses the details of these deliberations in the corporate
governance report every year.
Since a part of the functions of the Legal Department were made independent to become the new Governance Department inNovember 2019, we have been further enhancing initiatives regarding corporate governance.
The environmental issues, the target goals, implementation status, and achievement evaluations are reported to the Board of
Directors, and they are subject to evaluations as one of the important subject for monitoring by the Board of Directors.

Directors' Remuneration
The system for Directors' remuneration, etc. is as follows.
The upper limit of the total amount was set at the following total amount by resolution of the 37th Ordinary General Meeting of
Shareholders of June 28, 2006.
1.Fixed annual aggregate ceiling amount of ¥1 billion
2.Variable aggregate ceiling amount, which is set by multiplication of the consolidated net profit of each half year and 1/25 of thedividend payout ratio (%). (It should be noted, however that the variable amount for the first half of the fiscal year shall be paid in the
Note: The payout ratio (%) shall be calculated in accordance with the following formula for each half year:
Payout ratio for the first half of the fiscal year (April to September)= Amount of interim dividend per share for the said period
÷ Consolidated net income per share for the said period × 100
Payout ratio for the second half of the fiscal year (October to March next year)= Amount of year-end dividend per share for the said fiscal year÷ (Consolidated net income per share for the said fiscal year
- consolidated net income per share for the first half of the said fiscal year) × 100
The upper limit of the total annual remuneration, etc. for Audit & Supervisory Board Members was set at ¥250 million by resolution of
the 45th Ordinary General Meeting of Shareholders of June 27, 2014.
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Internal Control System
Basic Approach
Based on the FANUC Code of Conduct, which is derived from the basic principle of “strict preciseness and transparency”, wehave established basic rules for compliance, including an anti-corruption policy. In addition, we have established detailed rules forcompliance and deployed them internally through our basic policies, including our “Human Rights Policy”, “Basic Policy on thePrevention of Bribery, etc.”, and “CSR Procurement Policy”, as well as other various regulations, including rules for the preventionof insider trading and the management of confidential information, the Antimonopoly Act, and rules for the protection of personal
information.

Promotion Framework and Initiatives
Whistleblowing System
FANUC has established a system under which officers and employees of FANUC and its domestic subsidiaries can makewhistleblowing reports to FANUC' s internal and external contacts thorough hotlines. We are also gradually expanding those hotlines
to overseas group companies so that officers and employees may report directly to FANUC Headquarters.
In response to whistleblowing reports from both Japan and overseas, we strive to enhance the protection of whistleblowers to ensurethat they are not treated unfavorably in any way, by taking measures such as the revision of the Whistleblowing System Operation
Rules as appropriate.

Risk Management Committee
To address risks that may hinder the continuity of our business, the enhancement of our corporate value, or the sustainable
development of our corporate activities, we have established a Risk Management Committee and risk management policies, and weare conducting appropriate risk management under the supervision of the Board of Directors. Further, the Internal Audit Department,
which reports directly to the Representative Director, conducts internal audits of risk management.

Compliance
Issues related to compliance are discussed by the Compliance Committee, which is chaired by the Representative Director, andimportant issues are always reported to the Board of Directors and the President and CEO. In addition, the Management Meeting,which mainly comprised of the heads of each business divisions, deliberates also on these issues. Furthermore, the latest casesof whistleblowing is reported to the Board of Directors at least twice a year, so that adequate deliberations are made on related
compliance issues as necessary.

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Information Security
Basic Approach
Under “Corporate Governance Guidelines,” “FANUC Code of Conduct,” “Privacy Policy,” and all of which have been announced as its
governance systems, FANUC protects important information assets and makes efficient and effective use of them in compliance withlaws and regulations, rules, contracts, and other requirements.

Promotion Framework
The Information Security Committee, under the leadership of the Chief Information Security Officer (CISO) and the Chief Information
Officer (CIO), was newly established in December 2019 as an information security system to control and manage information security
activities.

CSIRT/SOC� Ensures the stable supply of our products and services to customers by giving instruction on how to promptly respond to
information security incidents caused by cyberattacks (analysis of the type of cyberattack/impact on business, interim/permanent
responses) and providing a swift resolution.
� Prevents information security incidents from occurring by collecting information on vulnerabilities, sharing such information within
the company, and understanding and controlling the status of response to vulnerabilities.

Establishment of PSIRTWe are currently working on the establishment of the FANUC PSIRT (Product Security Incident Response Team), which is designed to,as an engine for the realization of the Cyber/Physical Security Framework (CPSF) formulated by the Ministry of Economy, Trade andIndustry which we aim for, contribute to ensuring security of FANUC products by indicating how to prevent security risks in businessand promoting security activities involving customers and other stakeholders inside and outside the company in an efficient andsustainable way.
Vulnerability Information

Initiatives
Recognizing that risks associated with cyberattacks and other threats are priority management issues, FANUC strives to strengthen
information security by appropriately allocating resources to cyber security measures, under the initiative of the management.

Acquisition of ISO 27001 Certification (ISMS activities)
Under “Corporate Governance Guidelines,” “FANUC Code of Conduct,” and “Privacy Policy,” all of which have been announced as
our governance systems, we have established and implemented an information security management system and a basic information
security policy in order to ensure the protection of important information assets and the efficient and effective use of them incompliance with laws and regulations, rules, contracts, and other requirements.

IS656789 /ISO 27001
Corporate Administration Division, Research& Development Division, Sales Division(Headquarters),
FA Products Manufacturing Division and FA
Products Management Division (Headquarters).

December/2016: Research & Development Division acquired ISO27001
December/2017: Sales Division (Head Office) acquired ISO27001
December/2018: Corporate Administration Division acquired ISO27001
December/2019: FA Products Manufacturing Division and FA Products Management Division of Headquarters acquired ISO27001
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Intellectual Property
Basic Approach
FANUC strives to acquire global intellectual property rights with the aim of protecting the technologies and brands of our own
products, while also respecting the intellectual properties of third parties.

PolicyFocusing on our manufacturing and sales locations in Japan and overseas, we aim to obtain global intellectual property rights,
including patent and design rights related to the technologies in our own products, as well as trademark rights related to our productbrands. Based on this approach, we will build a strong patent network.

Promotion Framework
To promote and support the R&D and sales operations of our three Business Divisions and one Administration Division, the Intellectual
Property Department and IP officers in each Business Division and Administration Division work together closely on various intellectual
property-related activities, such as creating inventions and filing applications.

Initiatives
�For patents, we strive to obtain global rights with a particular focus on the United States, Germany, and China.

�To prevent infringements on the rights of others, the entire company conducts thorough research on other parties’ patents.
�Every year, we conduct a range of intellectual property education programs for researchers to promote and support research anddevelopment that is conscious of the prevention of infringement of other parties’ rights and of
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Tax Policy
FANUC CORPORATION and its domestic and overseas subsidiaries ensure the practice of “Strict Preciseness” and “Transparency,”
FANUC's principle. In terms of tax affairs as well, we comply with laws and regulations and pay taxes appropriately.

Global Tax Position and Minimization of Tax Risks
FANUC CORPORATION and its domestic and overseas subsidiaries pay taxes appropriately, in compliance with tax regulations andrelevant laws and regulations in their respective countries. Further, we do not use tax havens for the purposes of tax avoidance.

Transfer Pricings
Prices for international transactions between FANUC CORPORATION and its overseas subsidiaries are compliant with the Transfer
Pricing Guidelines published by the Organization for Economic Co-operation and Development (OECD), in consideration of laws andregulations in respective countries as well as functions and risks, thereby ensuring appropriate tax payment in the countries.

Relationship with Tax Authorities
FANUC CORPORATION and its domestic and overseas subsidiaries strive to build a relationship of trust with tax authorities by
providing them with information and explanations appropriately and conscientiously.

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FANUC CORPORATION
Oshino-Mura, Yamanashi, Japan
https://www.fanuc.co.j p/ en/sustainability/
TEL +81-555-84-5555, FAX +81-555-84-5512
SUSTAINABILITY REPORT 2021
Reprint or reproduction is prohibited without permission. All rights reserved©FANUC CORPORATION