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FANUC CORPORATION

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Goals/Performance

Single-year Goals

So-called silent change (changes made to the quality of deliverables, unbeknownst to the Company) at our suppliers may have a significant impact on the quality of FANUC products. In order to prevent such silent change, we require our suppliers to apply for changes in 4M (Man, Machine, Method and Material) and obtain FANUC's approval in the event of any changes made to deliverables. We send documents stating our request regarding changes to our suppliers, in order to obtain a response indicating their consent.
If some suppliers do not consent on the grounds of confidentiality or respond by adding conditions, we hold discussions with the said suppliers and strive to increase the number of suppliers who provide consent, so as to maintain a high level of quality without undermining mutual trust.

Performance in FY2022

We have been working continuously to achieve our single-year goals. In FY2022, we also sent the same documents as those of the previous year to obtain responses indicating our suppliers’ consent. Even for suppliers whose consent we could not obtain, we have worked with quality control divisions to consider our suppliers’ conditions, an approach that has allowed us to reach agreement with them in more and more cases. Going forward, we will strive to increase the number of suppliers who provide consent.

Medium-term Goals

We will build a database for the centralized management of supplier information. In addition to the supplier's information (sales, profit, items handled, and factory information) and the supplier's relationship with FANUC (transaction amount, products purchased, the contact department and PIC within the supplier), the database will also list an evaluation of the quality, delivery time, and cost of each supplier, aiming to raise suppliers’ awareness. In addition, we will consider posting information such as the supplierʼs efforts on ESG-related items.
Over the next few years, we will need to significantly increase production, mainly of robots, but we anticipate difficulties in parts procurement. We will work with our existing suppliers as well as develop new suppliers to establish a stable parts procurement system.