Fanuc : Consolidated Quarterly Financial Results For the three months ended June 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 three months ended June 30, 2022

		July 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: August 8, 2022

Scheduled date of commencing of dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled

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

(1) Consolidated Results of Operations

(% represents changes from the previous corresponding Three-month period.)

Three months	Net sales				Operating income		Ordinary income		Net income
					attributable to owners
ended June 30
																of parent
	Millions of yen		%	Millions of yen			%			Millions of yen		%			Millions of yen		%
2022	211,563		14.2	49,757			(4.4)		59,538		2.7		42,122		4.5
2021	185,293		69.6	52,070			370.0			57,960		341.1		40,295		343.2
Note: Consolidated	comprehensive income: April-June 2022:	¥84,743 million 76.8%
						April-June 2021: ¥47,920 million 278.8%
Three months	Net income				Net income
			per share
ended June 30	per share
			(diluted)
2022	Yen				Yen
220.00				-
2021	210.07				-
(2) Consolidated Financial Position
	Total assets				Net assets		Equity ratio
	Millions of yen				Millions of yen		%
June 30, 2022	1,794,600	1,576,193					87.1
March 31, 2022	1,783,964	1,549,879					86.1	1,535,809 million
(Reference) Equity: June 30, 2022: ¥1,562,673 million	March 31, 2022: ¥
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	-
FY2022						-			-	-				-
(forecast)

Note: We have not changed the forecasts of dividends from the latest ones.

Note: The forecasts of the 2nd quarter-end and 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)

(% for the 2Q cumulative period and for the full year represent changes from the same quarter of the previous

fiscal year and 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

2nd Quarter

412,300

17.3

96,600

2.9

115,100

6.8

83,000

5.5

433.69

(Cumulative)

Fiscal period

825,700

12.6

198,400

8.3

230,100

7.8

166,900

7.5

872.29

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
June 30, 2022	201,909,397	March 31, 2022
	shares		shares
2. Number of treasury stocks	10,617,706	March 31, 2022	10,089,875
June 30, 2022
	shares		shares
3. Average number of shares during the period	April-June 2021	191,812,543
April-June 2022	191,467,700
	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 3 of the Accompanying Documents. The forecasts of the 2nd quarter-end and 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	3
2.	Consolidated Quarterly Financial Statements	4
	(1)	Consolidated Quarterly Balance Sheet	4
	(2)	Consolidated Quarterly Statement of Income and
		Consolidated Quarterly Statement of Comprehensive Income	6
		Consolidated Quarterly Statement of Income	6
		Consolidated Quarterly Statement of Comprehensive Income	7
3.	Other Information	8
	(1)	Changes in Significant Subsidiaries during the Period	8

1. Adoption of Simplified and Specifically Applied Accounting

Method for Quarterly Consolidated Financial Reporting

8

1. Changes in Accounting Principles and Accounting Estimates, and

	Revisions/Restatements	8
(4)	Note on Premise of a Going Concern	8
(5)	Note on the Substantial Change in Shareholders' Equity	8

1

1. Results of Operations and Financial Position

(1) Results of Operations

Regarding the circumstances surrounding the FANUC Group during the first quarter (from April 1 to June 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, including the impact of the shortage in semiconductors and other components in the supply chain on production activities, 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 three months from April to June 2022, FANUC posted consolidated net sales totaling ¥211,563 million, up 14.2%, consolidated ordinary income totaling ¥59,538 million, up 2.7%, and net income attributable to owners of parent totaling ¥42,122 million, up 4.5%, 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, demand from the machine tool industry, the primary market for CNC systems, remained strong on a global scale, including in China, Europe, the Americas, Asia, and Japan, and sales of our CNC systems for machine tools increased. Net sales in the FA Division amounted to ¥65,560 million, up 25.6% 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. Strong sales were also recorded in the United States, to general industries and to the automobile industry with EV-related demand, and sales to general industries in Europe remained strong. In Japan, sales remained unchanged. As a result, net sales in the Robot Division amounted to ¥80,429 million, up 36.8% compared with the corresponding period of the previous fiscal year.

In the Robomachine Division, sales of ROBODRILLs (compact machining centers) decreased compared to the same period of the previous year when there was vigorous demand for use in the personal computer, tablet, and smartphone markets. Despite strong demand from IT-related and medical markets, sales of ROBOSHOTs (electric injection molding machines) decreased compared to the same period of the previous year when sales were strong. 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 ¥40,190 million, down 24.5% 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 Division amounted to ¥25,384 million, up 20.6% compared with the corresponding period of the previous fiscal year.

2

(2) Financial Position

Total assets were ¥1,794,600 million, up ¥10,636 million compared with the end of the previous fiscal year.

Total liabilities were ¥218,407 million, down ¥15,678 million compared with the end of the previous fiscal year.

Total net assets were ¥1,576,193 million, up ¥26,314 million compared with the end of the previous fiscal year.

(3) Financial Results Forecasts

In light of the financial results for the first quarter and the current outlook for the business environment, the Company forecasts financial results for the first half of fiscal 2022 (the fiscal year ending March 31, 2023) and fiscal 2022 as follows.

For the first half of the fiscal year 2022 (April 1, 2022 through September 30, 2022)

(Millions of yen)

	Previous forecast		Comparison with
	(released on	New forecast
	previous forecast (%)
	April 26, 2022)	[B]
	[(B-A) / A]
	[A]
Net sales	410,800	412,300	0.4%
Operating income	97,300	96,600	(0.7%)
Ordinary income	113,900	115,100	1.1%
Net income	83,000	83,000	0.0%
attributable to owners
of parent

For the fiscal year 2022 (April 1, 2022 through March 31, 2023)

(Millions of yen)

	Previous forecast		Comparison with
	(released on	New forecast
	previous forecast (%)
	April 26, 2022)	[B]
	[(B-A) / A]
	[A]
Net sales	825,500	825,700	0.0%
Operating income	197,300	198,400	0.6%
Ordinary income	227,400	230,100	1.2%
Net income	166,200	166,900	0.4%
attributable to owners
of parent

Note: The currency rate applied to the period from July 1, 2022 to March 31, 2023 is averaged at 125 yen/US dollar and 135 yen/Euro.

3