Financial Results for the six months Ended September 30, 2018

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1 (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. Financial Results for the six months Ended September 30, 2018 FANUC CORPORATION The 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. 1

2 Consolidated Financial Results for the 2 nd Quarter (6 months) of 1st Half Actual 1st Half Forecast 1st Half Actual 1st Half of Previous Forecast Net sales % +2.7% Cost of sales Operating income Ordinary income Net income % +1.5% 55.7% 57.6% 57.0% % +6.1% 30.9% 27.6% 28.5% % +10.3% 34.1% 30.2% 32.5% % +7.8% 24.7% 22.6% 23.7% FX Rate Yen/1USD % +5.5% Yen/1EUR % +1.8% Net income means Net income attributable to shareholders of parent company. 2

3 Half-yearly Changes in Consolidated Sales and Profit/Loss Net income means Net income attributable to shareholders of parent company. 3

4 Consolidated Financial Results for the 2 nd Quarter (3 months) of Net sales 1Q (Jul~Sep) (Apr~Jun) (Jul~Sep) of 1Q of % -11.3% Cost of sales Operating income Ordinary income Net income % -9.8% 55.0% 56.5% 57.5% % -19.4% 31.8% 29.8% 27.1% % -15.6% 35.0% 33.2% 31.6% % -17.3% 25.1% 24.5% 22.8% FX Rate Yen/1USD % +2.2% Yen/1EUR % -0.3% Net income means Net income attributable to shareholders of parent company. 4

5 Quarterly Changes in Consolidated Sales and Profit/Loss Net income means Net income attributable to shareholders of parent company. 5

6 Consolidated Sales by Division Q 4Q Q FA Robot Robomachine Service % 10.9% -36.2% -9.8% -3.5% Previous Period FA There was a slight downward trend seen in China and Taiwan. Demands remained at a high level in Japan, Europe, the Americas, and India. Robot Although the automobile industry saw a trough in capital investments in the Americas and sales in China were weak, sales in Japan and Europe remained favorable. Robomachine The short-term demand in the IT-related industry for the ROBODRILLs has settled, but other markets, mainly the automobile part processing market, generally remained favorable. In addition, sales of the ROBOSHOTs remained robust, while sales of the ROBOCUTs remained unchanged. of FA by Region % % % Robot by Region % Robomachine by Region 16% 34% 40% 25% 31% 18% Service by Region 27% 40% 25% Japan The Americas Europe The consolidated net sales does not include the service business in China, which is operated by the equitymethod affiliates. China Asia(Excluding China) ROW

7 Consolidated Sales by Region Q 4Q Q % 1.1% -1.6% -41.9% -7.5% -1.5% 7.3% Previous Period Japan The Americas Europe China Asia(Excluding China) ROW 7

8 Consolidated Orders by Division % 10.0% -26.8% -1.7% % 0 3Q 4Q 1Q Previous Period FA Robot Robomachine Service 8

9 Consolidated Orders by Region % -17.4% -45.9% -7.3% Q 4Q 1Q 9.4% -0.5% Previous Period Japan The Americas Europe China Asia(Excluding China) ROW 9

10 Consolidated Financial Results Forecasts Forecast Net sales Cost of sales Operating income Ordinary income Net income % % 54.8% 59.9% % 31.6% 24.1% % 34.3% 26.4% % 25.0% 22.7% FX Rate Yen/1USD % Yen/1EUR % Forecast anticipates 24,968 million yen extraordinary income, gains on the return of the substitutional (past) portion of the Employees Pension Fund. Note: The currency rate applied to the period from October 1, 2018 to March 31, 2019 is averaged at 100 yen/us dollar and 120 yen/euro. Net income means Net income attributable to shareholders of parent company. 10

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