Fanuc : Consolidated Annual Financial Results For the Year ended March 31, 2023

(% represents changes from the previous term.)

(TRANSLATION)

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Consolidated Annual Financial Results

(based on Japanese standards)

For the Year Ended March 31, 2023

		April 26, 2023
Company name: FANUC CORPORATION	Stock exchange listing: Tokyo Stock Exchange
Stock code:	6954	URL: https://www.fanuc.co.jp/eindex.html
Representative: (Title) President	(Name) Kenji Yamaguchi
Contact:	(Title) Manager, Public Relations & Shareholders Relations Department
		(Name) Naoki Yukisada TEL: [phone]

Scheduled date of the Annual Meeting of Shareholders: June 29, 2023

Scheduled date of commencing of dividend payments: June 30, 2023

Scheduled date of filing the Securities Report: June 30, 2023

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes

1. Consolidated Financial Results for the Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Consolidated Results of Operations

							Net income
	Net sales		Operating income	Ordinary income	attributable to owners
							of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY2022	851,956	16.2	191,359	4.4	231,327	8.4	170,587	9.9
FY2021	733,008	33.0	183,240	62.9	213,395	65.8	155,273	65.2

Note: Consolidated comprehensive income:	FY2022: ¥ 203,640 million 1.2%
			FY2021: ¥ 201,257 million 62.2%
	Net income	Net income			Ordinary	Operating
	per share	Return on equity		income-to-total	income-to-net
	per share
	(diluted)				capital ratio	sales ratio
FY2022	Yen	Yen		%		%	%
178.55	-		10.8		12.6	22.5
FY2021	161.90	-		10.5		12.5	25.0
(Reference) Equity in earnings of affiliates: FY2022: ¥32,371 million	FY2021: ¥23,126 million

Note: On April 1, 2023, the Company performed a 1 for 5 stock split of common share. "Net income per share" was calculated assuming that the stock split was performed at the beginning of the previous fiscal year.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets
	per share
FY2022	Millions of yen	Millions of yen	%	Yen
1,873,536		1,627,555	86.2	1,695.19
FY2021	1,783,964		1,549,879	86.1	1,601.31
(Reference) Equity: FY2022 ¥1,615,376 million	FY2021	¥1,535,809 million

Note: On April 1, 2023, the Company performed a 1 for 5 stock split of common share. "Net assets per share" was calculated assuming that the stock split was performed at the beginning of the previous fiscal year.

(3) Consolidated Cash Flow Position

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end of
	operating activities	investing activities	financing activities
	the fiscal year
FY2022	Millions of yen	Millions of yen	Millions of yen	Millions of yen
99,505	(77,998)	(127,924)	476,953
FY2021	125,581	(53,929)	(89,154)	574,655

2. Dividends

		Dividends per share		Total	Payout Dividends-to-
						amount of	ratio	net assets
	1st	2nd	3rd	Fiscal
(Cut-off date)	Full year	dividends	(conso-	ratio
	Quarter	Quarter	Quarter	year-end		(full year)	lidated)	(consolidated)
FY2021	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
―	246.02	―	239.68	485.70	93,168	60.0	6.3
FY2022	―	264.02	―	271.64	535.66	102,279	60.0	6.5
FY2023	―	―	―	―	―		―
(forecast)

Note: On April 1, 2023, the Company performed a 1 for 5 stock split of common share. Figures for FY2021 and FY2022 are the actual amount of dividends before the stock split.

Note: The 2nd quarter-end and year-end dividends for FY2023, will be disclosed promptly upon their availability.

3. Consolidated Financial Forecasts for FY 2023 (April 1, 2023 - March 31, 2024)

(% for the 2Q cumulative period and for the full year represents changes from the same quarter of the previous fiscal year and changes from the previous fiscal year respectively.)

	Net sales		Operating income	Ordinary income	Net income	Net income
		attributable to
		per share
							owners of parent
2nd Quarter	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of	%	Yen
399,600	(4.0)	76,200	(19.5)	91,600	(20.7)	67,100	(20.3)	70.42
(Cumulative)
Full year	819,500	(3.8)	156,300	(18.3)	185,500	(19.8)	137,100	(19.6)	143.87

Note: On April 1, 2023, the Company performed a 1 for 5 stock split of common share. "Net income per share" in the Consolidated Financial Forecasts has taken into account the impact of the stock split.

*Notes

(1) Changes in Significant Subsidiaries during the year ended March 31, 2023

(changes in specific subsidiaries that caused change in scope of consolidation) : No

(2) Changes in Accounting Principles and Changes, Revisions or Restatements in Accounting Estimates

1.	Changes in accounting principles associated with changes in	:	No
	accounting standards
2.	Changes in accounting principles other than 1	:	No
3.	Changes in accounting estimates	:	No
4.	Revisions or restatements in accounting estimates	:	No

1. Number of shares outstanding (Common shares)

1. Number of shares outstanding at the end of the period (including treasury stocks)

	March 31, 2023	1,009,546,985	March 31, 2022	1,009,546,985
		shares		shares
2.	Number of treasury stocks at the end of the period	March 31, 2022	50,449,375
	March 31, 2023	56,626,695
		shares		shares
3.	Average number of shares during the period	Year ended	959,086,615
	Year ended	955,390,733
	March 31, 2023	shares	March 31, 2022	shares

Note: On April 1, 2023, the Company performed a 1 for 5 stock split of common share. "Number of shares outstanding at the end of the period," "Number of treasury stocks at the end of the period" and "Average number of shares during the period" were calculated assuming that the stock split was performed at the beginning of the previous fiscal year.

(% represents changes from the previous term.)

(Reference) Summary of Non-Consolidated Financial Results

1. Non-Consolidated Financial Results for FY 2022 (April 1, 2022 - March 31, 2023)

(1) Non-Consolidated Results of Operations

	Net sales	Operating income	Ordinary income	Net income
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY2022	635,002	9.8	128,202	(3.4)	231,896	45.6	190,643	56.2
FY2021	578,260	39.0	132,768	109.1	159,216	81.2	122,064	73.3
	Net income	Net income
	per share
	per share
	(diluted)
FY2022	Yen	199.54	Yen
	-
FY2021		127.27	-

Note: On April 1, 2023, the Company performed a 1 for 5 stock split of common share. "Net income per share" was calculated assuming that the stock split was performed at the beginning of the previous fiscal year.

(2) Non-Consolidated Financial Position

	Total assets	Net assets		Equity ratio		Net assets
			per share
FY2022	Millions of yen	Millions of yen		%		Yen
1,369,957	1,218,677		89.0		1,278.89
FY2021	1,307,224	1,150,023		88.0		1,199.07
(Reference)	Equity: FY 2022 ¥1,218,677 million FY2021	¥1,150,023 million

Note: On April 1, 2023, the Company performed a 1 for 5 stock split of common share. "Net assets per share" were calculated assuming that the stock split was performed at the beginning of the previous fiscal year.

• The report of the annual financial results is not subject to audit by certified public accountant or audit firm.
• Notes on appropriate use of the financial forecasts, other notes.
  Any forward looking statements such as financial forecasts described in this report are subject to uncertain factors such as product supply and demand trends, industry competition, economic conditions, and others in major markets. Actual results may differ from these forecasts. For the details of the financial forecasts, please see "Future Outlook" on page 5 of the Accompanying Documents. The forecasts of the 2nd quarter-end and the year-end dividends for FY 2023, will be disclosed promptly upon their availability.

Table of Contents of Accompanying Documents

1. Overview of Results of Operations etc.	2
(1)	Overview of Results of Operations	2
(2)	Overview of Financial Position	4
(3)	Overview of Cash Flows	4
(4)	Future Outlook	5

1. Basic Policy on Return of Profit to Shareholders

		and Dividends	5
2.	Management Policy, Business Environment, Challenges,
	and Other Matters	6
	(1)	Basic Management Policy	6
	(2)	Business Environment and Challenges	6
3.	Basic Way of Thinking Regarding the Choice of
	Accounting Standards	8
4.	Consolidated Financial Statements and Primary Notes	9
	(1)	Consolidated Balance Sheets	9

1. Consolidated Statements of Income and

	Consolidated Statements of Comprehensive Income	11
(3)	Consolidated Statements of Changes in Net Assets	13
(4)	Consolidated Statements of Cash Flows	15
(5)	Notes to Consolidated Financial Statements	16
	（Note on premise of a going concern）	16
	（Segment information, etc.）	16
	（Per share data）	17
	（Significant subsequent events）	17

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1. Overview of Results of Operations, etc.

(1) Overview of Results of Operations

Regarding the circumstances surrounding the FANUC Group during this fiscal year (April 1, 2022

• March 31, 2023), capital investment in the entire manufacturing sector, including automobile related sector, was active. However, the outlook has remained uncertain, due to several factors, including the impact of the shortage in semiconductors and other components on production activities, the soaring price of raw materials, and sudden fluctuations in foreign exchange rates. Under these circumstances, the FANUC Group has striven to maintain the delivery of products and service activities for our customers while preventing the spread of COVID-19. In particular, with regard to the shortages of semiconductors and other components, the entire company has become involved and has done every effort to minimize the impact of such shortages by taking measures such as utilizing alternative parts and even changing the mechanical design of our products.
  Even under such difficult circumstances as these, the FANUC Group has pushed forward with initiatives towards future development, including the development of new products and new functions and increasing of production capacity at our factories.
  In addition, amid the global pushing toward a carbon-free society, we recognize that climate change is an important management issue for the FANUC Group as we are doing business globally, and pushed forward with development geared towards improved energy-efficiency of our products. Further, we have been engaged in energy-saving initiatives, including the large-scale installation of solar panels at the Headquarters and Mibu areas.
  During the fiscal year ended March 31, 2023, FANUC posted consolidated net sales totaling ¥851,956 million, up 16.2%, consolidated ordinary income totaling ¥231,327 million, up 8.4%, and net income attributable to owners of parent totaling ¥170,587 million, up 9.9%, compared with the previous fiscal year.
  During this fiscal year, the "FANUC Robot M-1000iA," which is a compact robot with a wide range of motion, a powerful yet smart design, and a 1,000 kg payload capacity, won awards at the "Nikkan Kogyo Shimbun Best 10 New Product Awards 2022 (Main Award)," the "2022Nikkei Excellent Products and Services Awards - Nikkei Business Daily Awards," and the "2022 GOOD DESIGN AWARDS - GOOD DESIGN BEST 100."

The following is a summary of the results for each business division:

[FA Division]

In the FA Division, overall demand from the machine tool industry, the primary market for CNC systems, remained very strong with the exception of China. Demand in China remained at the level similar to those in the previous fiscal year. Sales of our CNC systems increased compared with the

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