Fanuc : Consolidated Quarterly Financial Results For the six months ended September 30, 2022

(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 Quarterly Financial Results

(based on Japanese standards)

For the six months ended September 30, 2022

		October 27, 2022
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 filing quarterly report: November 9, 2022

Scheduled date of commencing of dividend payments: December 1, 2022

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 - September 30, 2022)

(1) Consolidated Results of Operations

				(% represents changes from the previous corresponding Six-month period.)
Six months	Net sales			Operating income		Ordinary income	Net income
ended				attributable to owners
September 30																		of parent
	Millions of yen		%	Millions of yen			%		Millions of yen		%		Millions of yen		%
2022	416,128		18.4		94,671			0.8			115,547		7.2		84,214			7.1
2021	351,490		52.5		93,922			190.6			107,822		182.1		78,649			179.8
Note: Consolidated	comprehensive income:	April-September 2022:	¥139,403 million	60.5%
						April-September 2021:	¥86,859 million 152.8%
Six months	Net income			Net income
ended			per share
per share
September 30			(diluted)
2022	Yen			Yen
440.02			-
2021	410.03			-
(2) Consolidated Financial Position
	Total assets		Net assets			Equity ratio
	Millions of yen		Millions of yen				%		86.6
September 30, 2022	1,866,606		1,631,187
March 31, 2022	1,783,964		1,549,879						86.1	2022: ¥1,535,809 million
(Reference) Equity: September 30, 2022: ¥1,617,079 million			March 31,
2. Dividends
						Dividends per share
	1st Quarter		2nd Quarter	3rd Quarter		Year-end	Full year
			Dividends
FY2021	Yen			Yen					Yen			Yen			Yen
-			246.02				-			239.68		485.70
FY2022	-			264.02
FY2022										-			-			-
(forecast)

Note: We have changed the forecasts of dividends from the latest ones.

Note: The forecasts of year-end dividends for the year ending March 31, 2023 will be disclosed promptly upon their availability.

3. Consolidated Financial Forecasts for the Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(% represents changes from the previous fiscal year.)

	Net sales		Operating income	Ordinary income	Net income	Net income
		attributable to
		per share
							owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal period	805,700	9.9	181,700	(0.8)	217,000	1.7	159,500	2.7	833.57

Note: We have changed the forecasts of financial results from the latest ones.

*Notes

(1) Changes in Significant Subsidiaries during the period

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

(2) Adoption of Simplified and Specifically Applied Accounting Method for Quarterly
Consolidated Financial Reporting	:	No
(3) Changes in Accounting Principles and Accounting Estimates, and Revisions/Restatements
1.	Changes associated with changes in accounting standards	:	No
2.	Changes in accounting principles other than 1	:	No
3.	Changes in accounting estimates	:	No
4.	Revisions/restatements	:	No

(4) Number of shares outstanding (Common shares)
1. Number of shares outstanding at the end of the period (including treasury stocks)	201,909,397
September 30, 2022	201,909,397	March 31, 2022
	shares		shares
2. Number of treasury stocks	10,603,015	March 31, 2022	10,089,875
September 30, 2022
	shares		shares
3. Average number of shares during the period	April-September 2021	191,813,603
April-September 2022	191,384,691
	shares		shares

• The report of the quarterly financial results is not subject to audit by certified public accountant or audit firm.
• Any forward looking statements such as financial forecasts described in this report are subject to uncertain factors such as supply and demand trends, industry competition, economic conditions, and others in major markets. Actual results may differ from these forecasts. For the details of the financial forecasts, please see "Financial Results Forecasts" on page 4 of the Accompanying Documents. The forecasts of the year-end dividends for the year ending March 31, 2023 will be disclosed promptly upon their availability.

Table of Contents of Accompanying Documents

1. Results of Operations and Financial Position

2

1. Results of Operations 2
2. Financial Position 3
3. Financial Results Forecasts 4

2. Consolidated Quarterly Financial Statements

5

1. Consolidated Quarterly Balance Sheet 5
2. Consolidated Quarterly Statement of Income and
   Consolidated Quarterly Statement of Comprehensive Income 7

Consolidated Quarterly Statement of Income	7
Consolidated Quarterly Statement of Comprehensive Income	8
(3) Consolidated Quarterly Statement of Cash Flows	9
3. Other Information	10

1. Changes in Significant Subsidiaries during the Period 10
2. Adoption of Simplified and Specifically Applied Accounting
   Method for Quarterly Consolidated Financial Reporting 10
3. Changes in Accounting Principles and Accounting Estimates, and
   Revisions/Restatements 10
4. Note on Premise of a Going Concern 10
5. Note on the Substantial Change in Shareholders' Equity 10

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1. Results of Operations and Financial Position

(1) Results of Operations

Regarding the circumstances surrounding the FANUC Group during the first six-month period of the fiscal year ending March 31, 2023 (from April 1 to September 30, 2022), capital investment across the entire manufacturing sector was active, including in relation to automobiles. However, the outlook remained uncertain due to several factors, such as impact on production activities by shortage in semiconductors and other components in the supply chain, accelerating inflation, 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 aiming to prevent the spread of COVID-19. In particular, with regard to the shortages of semiconductors and other components, the entire company has done every effort to minimize the impact of such shortages by taking measures such as utilizing alternative parts and even changing the design of our products.

During the six months from April to September 2022, FANUC posted consolidated net sales totaling ¥416,128 million, up 18.4%, consolidated ordinary income totaling ¥115,547 million, up 7.2%, and net income attributable to owners of parent totaling ¥84,214 million, up 7.1%, compared with the corresponding period of the previous fiscal year.

An overview of the results for each business division is as follows:

In the FA Division, overall demand from the machine tool industry, the primary market for CNC systems, remained at a high level, while in China there were some impacts on demands due to the zero COVID-19 policy such as lockdowns. Performance in Europe, the Americas, Asia, and Japan also remained strong, and sales of our CNC systems increased. Net sales in the FA Division amounted to ¥129,450 million, up 24.5% compared with the corresponding period of the previous fiscal year.

In the Robot Division, sales in China remained strong, mainly for EVs and in IT-related industries. Sales in the United States were also strong for general industries and for automobile industry with EV- related demand. Sales for general industries also remained strong in Europe. In Japan, sales remained at the level similar to those in the previous period. As a result, net sales in the Robot Division amounted to ¥161,641 million, up 33.4% compared with the corresponding period of the previous fiscal year.

In the Robomachine Division, sales of ROBODRILLs (compact machining centers) decreased due to a lull in demand from the personal computer, tablet, and smartphone markets, which had been strong. ROBOSHOTs (electric injection molding machines) continued to post a high level of sales due to strong demand from IT-related and medical markets. Sales of ROBOCUTs (wire electrical- discharge machines) increased due to strong demand from IT-related and automobile component markets. As a result, net sales in the Robomachine Division amounted to ¥71,110 million, down 12.3% compared with the corresponding period of the previous fiscal year.

In the Service Division, with an emphasis on our policy of "Service First," we are strengthening the service system and improving efficiency by actively introducing IT technology. Net sales in the Service

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Division amounted to ¥53,927 million, up 19.1% compared with the corresponding period of the previous fiscal year.

1. Financial Position

• Assets, Liabilities and Net Assets

Total assets were ¥1,866,606 million, up ¥82,642 million compared with the end of the previous fiscal year.

Total liabilities were ¥235,419 million, up ¥1,334 million compared with the end of the previous fiscal year.

Total net assets were ¥1,631,187 million, up ¥81,308 million compared with the end of the previous fiscal year.

• Cash Flows

Cash and cash equivalents (hereinafter "Cash") for the first half of the current fiscal year amounted to ¥547,524 million, down ¥27,131 million from the end of the previous fiscal year.

(Cash flows from operating activities)

Cash provided by operating activities during the six months ended September 30, 2022 amounted to ¥46,108 million, down ¥28,931 million compared with the same period of the previous fiscal year. This was mainly due to the increase in inventories.

(Cash flows from investing activities)

Cash used in investing activities during the six months ended September 30, 2022 amounted to ¥26,093 million, up ¥10,138 million compared with the same period of the previous fiscal year. This was mainly due to the increase in purchases of property, plant, and equipment.

(Cash flows from financing activities)

Cash used in financing activities during the six months ended September 30, 2022 amounted to ¥59,463 million, up ¥18,759 million compared with the same period of the previous fiscal year. This was mainly due to the increase in purchases of treasury stock.

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