Fanuc : Consolidated Quarterly Financial Results For the nine months ended December 31, 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 nine months ended December 31, 2022

		January 27, 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 filing quarterly report: February 9, 2023

Scheduled date of commencing of dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 1, 2022 - December 31, 2022)

(1) Consolidated Results of Operations

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

Nine months	Net sales			Operating income	Ordinary income	Net income
ended			attributable to owners
December 31																	of parent
	Millions of yen		%	Millions of yen			%		Millions of yen		%		Millions of yen		%
2022	636,113		17.7		147,158			5.2		177,795		10.1		129,807			9.3
2021	540,250		44.0		139,946			114.4		161,534		114.2		118,772			114.6
Note: Consolidated	comprehensive income:	April-December 2022:	¥166,818 million	21.0%
						April-December 2021:	¥137,892 million 93.9%
Nine months	Net income			Net income
ended			per share
per share
December 31			(diluted)
2022	Yen			Yen
678.76			-
2021	619.20			-
(2) Consolidated Financial Position
	Total assets		Net assets				Equity ratio
	Millions of yen		Millions of yen				%		85.9
December 31, 2022	1,844,083		1,594,680
March 31, 2022	1,783,964		1,549,879						86.1
(Reference) Equity: December 31, 2022: ¥1,583,174 million	March 31, 2022: ¥1,535,809 million
2. Dividends
						Dividends per share
	1st Quarter		2nd Quarter	3rd Quarter	Year-end	Full year
		Dividends
FY2022	Yen			Yen				Yen			Yen			Yen
-			246.02			-			239.68		485.70
FY2023	-			264.02			-
FY2023													-			-
(forecast)

Note: We have not 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	831,200	13.4	184,400	0.6	223,100	4.5	164,000	5.6	858.06

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

*Notes

1. Changes in Significant Subsidiaries during the nine months ended December 31, 2022 (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
December 31, 2022	201,909,397	March 31, 2022
	shares		shares
2. Number of treasury stocks at the end of the period	March 31, 2022	10,089,875
December 31, 2022	11,125,803
	shares		shares
3. Average number of shares during the period	April-December 2021	191,816,435
April-December 2022	191,242,503
	shares		shares

• The report of the quarterly 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 "Financial Results Forecasts" on page 3 of the Accompanying Documents. 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

1. 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 nine months

ended December 31, 2022

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
(6)	Significant Subsequent Events	8

1

1. Results of Operations and Financial Position

(1) Results of Operations

Regarding the circumstances surrounding the FANUC Group during the first nine-month period of the fiscal year ending March 31, 2023 (from April 1 to December 31, 2022), capital investment across the entire manufacturing sector including automobile related sector, was active. 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, progressing 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 nine months from April to December 2022, FANUC posted consolidated net sales totaling ¥636,113 million, up 17.7%, consolidated ordinary income totaling ¥177,795 million, up 10.1%, and net income attributable to owners of parent totaling ¥129,807 million, up 9.3%, 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 with the exception of China. Demand in China remained at the level similar to those in the previous period. Sales of our CNC systems increased overall. Net sales in the FA Division amounted to ¥191,920 million, up 17.1% compared with the corresponding period of the previous fiscal year.

In the Robot Division, sales in China remained very strong, mainly for EVs, logistics and renewable energy-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 ¥256,939 million, up 29.7% 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 ¥104,274 million, down 4.5% compared with the corresponding period of the previous fiscal year.

2

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 ¥82,980 million, up 20.1% compared with the corresponding period of the previous fiscal year.

(2) Financial Position

Total assets were ¥1,844,083 million, up ¥60,119 million compared with the end of the previous fiscal year.

Total liabilities were ¥249,403 million, up ¥15,318 million compared with the end of the previous fiscal year.

Total net assets were ¥1,594,680 million, up ¥44,801 million compared with the end of the previous fiscal year.

(3) Financial Results Forecasts

While the Company anticipates the impact of the revision of the assumed currency rate in the fourth quarter of the financial year and the impact of order adjustments in China and elsewhere in FA, the financial result has been stronger than planned at the time of the second quarter announcement. Therefore, the Company changes the financial results forecasts for fiscal 2022 (the fiscal year ending March 31, 2023) as follows.

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

	Previous forecast	New forecast
	(released on
	October 27, 2022)	[B]
	[A]
Net sales	805,700	831,200
Operating income	181,700	184,400
Ordinary income	217,000	223,100
Net income
attributable to owners	159,500	164,000
of parent

(Millions of yen)

Comparison with

Previous forecast (%) [(B-A) / A]

3.2%

1.5%

2.8%

2.8%

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

3