Fanuc CorporationTSE: 6954

Consolidated Interim Financial Results For the six months ended September 30, 2024

Sep 29, 2024 at 10:00 PM UTC · Issued by Fanuc Corporation

(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 Interim Financial Results

(based on Japanese standards)

For the six months ended September 30, 2024

		October 25, 2024
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: (0555)84－5555

Scheduled date of filing Japanese semi-annual report: November 11, 2024

Scheduled date of commencing dividend payments: December 2, 2024

Availability of supplementary briefing material on interim financial results: Yes

Interim financial results briefing session: Yes

(Amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 - September 30, 2024)

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		%
2024	387,962		(2.7)		75,588			13.6			94,780		10.0		69,922			9.4
2023	398,695		(4.2)		66,536			(29.7)			86,153		(25.4)	63,937			(24.1)
Note: Consolidated		comprehensive income:	April-September 2024:	¥63,459 million (46.9)%
								April-September 2023:	¥119,484 million (14.3)%

Six months		Net income				Net income
ended					per share
	per share
September 30					(diluted)

2024		Yen					Yen
74.17					-
2023	67.10					-
(2) Consolidated Financial Position
		Total assets		Net assets				Equity ratio
		Millions of yen		Millions of yen				%		88.6
September 30, 2024	1,902,485		1,699,658
March 31, 2024	1,926,037		1,719,200						88.6
(Reference) Equity: September 30, 2024: ¥1,686,101 million	March 31, 2024: ¥1,705,556 million
2. Dividends
								Dividends per share

		1st Quarter			2nd Quarter	3rd Quarter	Fiscal year-end	Full year

FY2023		Yen				Yen			Yen		Yen	43.88			Yen
	-					40.26				-						84.14
FY2024		-					44.51
FY2024												-			-				-
(forecast)

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

Note: The year-end dividends for FY2024 will be disclosed promptly upon their availability.

3. Consolidated Financial Forecasts for FY 2024 (April 1, 2024 - March 31, 2025)

(% 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
Full year	787,800	(0.9)	150,800	6.3	184,900	1.7	134,300	0.9	142.99

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

*Notes
(1) Significant changes in the scope of consolidation during the six months
ended September 30, 2024	:	No
(2) Adoption of Simplified and Specifically Applied Accounting Method for Interim
Consolidated Financial Reporting	:	No

(3) Changes in Accounting Principles and Accounting Estimates, and Revisions/Restatements

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/Restatements	:	No

Number of shares outstanding (Common shares)

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

September 30, 2024	995,418,885	March 31, 2024	1,003,073,989
	shares		shares

2. Number of treasury stocks at the end of the period

September 30, 2024	59,791,911	March 31, 2024	57,426,048
	shares		shares

3. Average number of shares during the period

April-September 2024	942,785,132	April-September 2023	952,897,144
	shares		shares

The report of the interim 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, including 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 4 of the Accompanying Documents. The forecasts of the year-end dividends for FY2024 will be disclosed promptly upon availability.

Table of Contents of Accompanying Documents

1.	Results of Operations and Financial Position	2
	(1)	Overview of Results of Operations	2
	(2)	Financial Position	2
	(3)	Financial Results Forecasts	4
2.	Consolidated Interim Financial Statements	5
	(1)	Consolidated Interim Balance Sheet	5
	(2)	Consolidated Interim Statement of Income and
		Consolidated Interim Statement of Comprehensive Income	7
		Consolidated Interim Statement of Income	7
		Consolidated Interim Statement of Comprehensive Income	8
	(3)	Consolidated Interim Statement of Cash Flows	9
3.	Other Information	10

Significant changes in the scope of consolidation during the six

months ended September 30, 2024

Adoption of Simplified and Specifically Applied Accounting

Method for Interim Consolidated Financial Reporting

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
(6)	Note on Segment Information, etc.	10

1. Results of Operations and Financial Position

(1) Overview of Results of Operations

Regarding the circumstances surrounding the FANUC Group during the first six-month period of the fiscal year ending March 31, 2025 (from April 1 to September 30, 2024), the economy is gradually recovering, and capital investment appears to be picking up. However, the situation remained uncertain due to several factors, such as the impact of the continued high interest rates in the U.S. and Europe and concerns about the perspective of the Chinese economy. In addition, although inventory adjustments, which have continued since the second half of FY 2022 (the fiscal year ended March 31, 2023), are returning to an appropriate level, some adjustments are still continuing. Amidst these difficult conditions, the Company has done every effort for sales expansion and cost reduction, etc., to minimize the impact on the financial results through the concerted efforts of all departments, including sales divisions, R&D divisions, factories, service divisions, and administrative departments.

During the six months ended September 30, 2024, FANUC posted consolidated net sales totaling ¥387,962 million, down 2.7%, consolidated ordinary income totaling ¥94,780 million, up 10.0%, and net income attributable to owners of parent totaling ¥69,922 million, up 9.4%, 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 firm in India and China where the government subsidy program provided a tailwind despite weak demand in each country around the world, including Japan, and sales of our CNC systems increased. Net sales in the FA Division amounted to ¥99,416 million, up 7.2% compared with the corresponding period of the previous fiscal year.

In the ROBOT Division, sales in Europe and the Americas were on par with the corresponding period of the previous fiscal year due to steady demand for both general industries and automobile-related industries, resulting from a backlog of orders from the previous period. In Japan, sales increased, driven by solid demand in automobile-related industries. In China, however, sales decreased due to a slight drop in demand for EV- related industries, which had previously been strong, as well as weak demand for infrastructure-related industries and electronic industries. As a result, net sales in the ROBOT Division amounted to ¥163,116 million, down 15.2% compared with the corresponding period of the previous fiscal year.

In the ROBOMACHINE Division, sales of ROBODRILLs (compact machining centers) slightly increased from the corresponding period of the previous fiscal year despite continued weakness both in Japan and overseas markets. Sales of ROBOSHOTs (electric injection molding machines) increased due to rising demand in China. Sales of ROBOCUTs (wire electrical-discharge machines) decreased, due in part to the suspension of shipments of the ROBOCUTs with European specifications caused by the possibility of being subject to tests which were non-compliant with EMC harmonized standards. As a result, net sales in the ROBOMACHINE Division amounted to ¥56,928 million, up 12.8% 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 and other factors by actively introducing IT technology. Net sales in the Service Division amounted to ¥68,502 million, up 8.7% compared with the corresponding period of the previous fiscal year.

(2) Financial Position

○1 Assets, Liabilities and Net Assets

Total assets were ¥1,902,485 million, down ¥23,552 million compared with the end of the previous fiscal year.

Total liabilities were ¥202,827 million, down ¥4,010 million compared with the end of the previous fiscal year.

Total net assets were ¥1,699,658 million, down ¥19,542 million compared with the end of the previous fiscal year.

○2 Cash Flows

Cash and cash equivalents (hereinafter "Cash") for the six months ended September 30, 2024 amounted to ¥481,139 million, down ¥45,742 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, 2024 amounted to ¥147,294 million, up ¥72,082 million compared with the same period of the previous fiscal year. This was mainly due to a turn in (increase) decrease in inventories from an increase to a decrease.

(Cash flows from investing activities)

Cash used in investing activities during the six months ended September 30, 2024 amounted to ¥99,056 million, up ¥65,293 million compared with the same period of the previous fiscal year. This was mainly due to the increase in payments into time deposits.

(Cash flows from financing activities)

Cash used in financing activities during the six months ended September 30, 2024 amounted to ¥84,491 million, up ¥28,788 million compared with the same period of the previous fiscal year. This was mainly due to the increase in share buybacks.

(3) Financial Results Forecasts

As the financial results have been stronger than originally planned at the time of the previous announcement, the Company changes the financial results forecasts for FY 2024 (the fiscal year ending March 31, 2025), as follows.

For FY 2024 (April 1, 2024 through March 31, 2025)

			(Millions of yen)
	Previous forecast		Comparison with
	(announced on	New forecast
	Previous forecast (%)
	July 29, 2024)	[B]
	[(B-A) / A]
	[A]

Net sales	784,300	787,800	0.4%
Operating income	143,000	150,800	5.5%

Ordinary income	173,900	184,900	6.3%

Net income	125,300	134,300	7.2%
attributable to owners

of parent

Note: The currency rate applied to the period from October 1, 2024 to March 31, 2025 is expected to average at 135 yen/US dollar and 150 yen/Euro.

2. Consolidated Interim Financial Statements

(1) Consolidated Interim Balance Sheet

		(Millions of yen)
	March 31, 2024	September 30, 2024
Assets
Current assets
Cash and bank deposits	522,979	553,020
Notes receivables, trade	18,990	18,461
Accounts receivable, trade	136,931	112,529
Marketable securities	16,100	16,300
Finished goods	147,545	126,683
Work in progress	91,929	87,982
Raw materials and supplies	123,072	118,021
Other current assets	20,206	23,126
Allowance for doubtful accounts	(1,487)	(1,662)
Total current assets	1,076,265	1,054,460
Noncurrent assets
Property, plant and equipment
Buildings, net	326,373	328,281
Land	163,593	163,074
Other, net	117,789	112,630
Total property, plant and equipment	607,755	603,985
Intangible assets	9,823	9,100
Investments and other assets
Investment securities	184,434	186,684
Others	47,864	48,356
Allowance for doubtful accounts	(104)	(100)
Total investments and other assets	232,194	234,940
Total noncurrent assets	849,772	848,025
Total assets	1,926,037	1,902,485

		(Millions of yen)
	March 31, 2024	September 30, 2024
Liabilities
Current liabilities
Notes and accounts payables, trade	42,938	34,299
Accrued income taxes	5,490	16,730
Warranty reserves	10,021	9,373
Other current liabilities	98,441	92,233
Total current liabilities	156,890	152,635
Long-term liabilities
Net defined benefit liability	42,437	42,402
Other long-term liabilities	7,510	7,790
Total long-term liabilities	49,947	50,192
Total liabilities	206,837	202,827
Net assets
Shareholders' equity
Common stock	69,014	69,014
Capital surplus	95,995	95,995
Retained earnings	1,540,398	1,549,789
Treasury stock, at cost	(143,573)	(164,565)
Total shareholders' equity	1,561,834	1,550,233
Accumulated other comprehensive income
Valuation difference on available-for-sale	21,740	18,388
securities

Foreign currency translation adjustment	127,754	121,811
Remeasurements of defined benefit plans	(5,772)	(4,331)
Total accumulated other comprehensive	143,722	135,868
income

Non-controlling interests	13,644	13,557
Total net assets	1,719,200	1,699,658
Total liabilities and net assets	1,926,037	1,902,485

(2) Consolidated Interim Statement of Income and

Consolidated Interim Statement of Comprehensive Income

Consolidated Interim Statement of Income 2nd quarter (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2023	September 30, 2024
	(cumulative)	(cumulative)
Net sales	398,695	387,962
Cost of goods sold	265,752	243,645
Gross profit	132,943	144,317
Selling, general and administrative expenses	66,407	68,729
Operating income	66,536	75,588
Non-operating income
Interest income	2,133	3,405
Dividends income	1,731	1,746
Equity in earnings of affiliates	14,358	13,942
Miscellaneous income	3,359	2,430
Total non-operating income	21,581	21,523
Non-operating expenses
Foreign exchange loss	－	704
Miscellaneous expenses	1,964	1,627
Total non-operating expenses	1,964	2,331
Ordinary income	86,153	94,780
Income before income taxes	86,153	94,780
Income taxes-current	30,900	24,062
Income taxes-deferred	(9,794)	(1,073)
Total taxes and others	21,106	22,989
Net income	65,047	71,791
Net income attributable to non-controlling interests	1,110	1,869
Net income attributable to owners of parent	63,937	69,922

Consolidated Interim Statement of Comprehensive Income

Net income

Other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment Remeasurements of defined benefit plans

Share of other comprehensive income of affiliates accounted for using equity method

	(Millions of yen)
Six months ended	Six months ended
September 30, 2023	September 30, 2024
(cumulative)	(cumulative)
65,047	71,791
2,265	(3,352)
44,908	(23,717)
1,299	1,441
5,965	17,296

Total other comprehensive income

Comprehensive income for the six months ended September 30

Comprehensive income attributable to: Owners of parent Non-controlling interests

54,437	(8,332)
119,484	63,459
117,536	62,068
1,948	1,391