CONSOLIDATED RESULTS
January 31, 2017
(Millions of yen, thousands of U.S. dollars, except per share amounts)
Actual Projected
Year ended
Year ended
Change(%) Year ended
Year ending
December 31, 2016
December 31, 2015
December 31, 2016
December 31, 2017 Change(%)
Net sales | ¥ | 3,401,487 | ¥ | 3,800,271 | - 10.5 | $ 29,323,164 | ¥ | 4,000,000 | + | 17.6 |
Operating profit | 228,866 | 355,210 | - 35.6 | 1,972,983 | 255,000 | + | 11.4 | |||
Income before income taxes | 244,651 | 347,438 | - 29.6 | 2,109,060 | 260,000 | + | 6.3 | |||
Net income attributable |
to Canon Inc.
¥ 150,650
¥ 220,209
- 31.6
$ 1,298,707
¥ 170,000
+ 12.8
Net income attributable to Canon Inc. shareholders per share:
- Basic | ¥ | 137.95 | ¥ | 201.65 | - 31.6 | $ 1.19 | ¥ | 155.67 | + | 12.8 |
- Diluted | 137.95 | 201.65 | - 31.6 | 1.19 | - | - |
As of
As of
Actual
Change(%) As of
December 31, 2016
December 31, 2015
December 31, 2016
Total assets
Canon Inc. shareholders' equity
¥ 5,138,529
¥ 2,783,129
¥ 4,427,773
¥ 2,966,415
+ 16.1
- 6.2
$ 44,297,664
$ 23,992,491
Notes: 1.Canon's consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.
2.U.S. dollar amounts are translated from yen at the rate of JPY 116= U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2016, solely for the convenience of the reader.
NON-CONSOLIDATED RESULTS
Year ended
Year ended
Actual
(Millions of yen, thousands of U.S. dollars, except per share amounts)
Year ended
December 31, 2016
December 31, 2015 Change(%)
December 31, 2016
Net sales
¥ 1,763,987 ¥
2,091,139
- 15.6 $
15,206,784
Operating profit 67,543 169,238 - 60.1 582,267
Ordinary profit 158,359 269,818 - 41.3 1,365,164
Net income
¥ 133,055
¥ 211,963
- 37.2
$ 1,147,026
Net income per share:
- Basic
¥ 121.84 ¥
194.10
- 37.2 $
1.05
- Diluted 121.84 194.10 - 37.2 1.05
Dividend per share 150.00 150.00 - 1.29
As of
As of
Actual
Change(%) As of
December 31, 2016
December 31, 2015
December 31, 2016
Total assets Net assets
¥ 3,176,703
¥ 1,452,646
¥ 2,437,924
¥ 1,484,157
+ 30.3
- 2.1
$ 27,385,371
$ 12,522,810
Notes: U.S. dollar amounts are translated from yen at the rate of JPY 116= U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2016, solely for the convenience of the reader.
Canon Inc. 30-2, Shimomaruko 3-chome, Ohta-ku,
Headquarter office Tokyo 146-8501, Japan
Phone: +81-3-3758-2111
I. Operating Results and Financial Conditions 2016 in ReviewLooking back at the global economy in 2016, the trend of recovery in the U.S. economy became stronger as employment conditions and consumer spending progressively improved from the latter half of the year. In Europe, although the economy grew moderately, centered on Germany, the outlook for the region's economy has grown increasingly uncertain due to concerns over the UK's decision to exit the EU and the political unrest in Syria. The Chinese economy continued its deceleration trend while the economies of emerging countries such as Russia and Brazil remained stagnant. In Japan, the economy remained weak due to weak consumer spending. Looking at the global economy as a whole, although higher growth than the previous year was expected at the beginning of the year, the global economy overall experienced its lowest level of growth since the financial crisis precipitated by Lehman Brothers' bankruptcy.
As for the markets in which Canon operates amid these conditions, regarding the demand for office multifunction devices (MFDs) and laser printers, the demand for color models enjoyed strong growth due to the trend of shifting from monochrome to color machines, while the demand for monochrome shrunk due to the continued economic slowdown in emerging countries. As for cameras, along with the ongoing contraction of the market, especially for digital compact cameras, the market suffered from a shortage of components arising from the earthquake in Kumamoto earlier in the year. Additionally, demand for inkjet printers continued to decline. Within the Industry and Other sector, demand for lithography equipment used in the production of flat panel displays (FPDs) and manufacturing equipment for organic LED (OLED) displays enjoyed strong growth thanks to active capital investment by panel manufacturers.
The average value of the yen during the year was ¥108.58 against the U.S. dollar, a year-on-year appreciation of approximately ¥13, and ¥120.25 against the euro, a year-on-year appreciation of approximately ¥14, which had a negative impact of ¥280.4 billion on net sales and of ¥101.8 billion on operating profit.
During 2016, color-model office MFDs achieved higher growth than the market average, making up for the continued decline of monochrome models, which led to the same level of unit sales as the previous year overall. Although the unit sales of laser printers were below level compared with the same period of the previous year until the third quarter, due to the sluggish economic conditions in the emerging countries, signs of bottoming out started to appear in the fourth quarter. Looking at the interchangeable-lens digital cameras, sales volume for the year exceeded that of the previous year, supported by sales of new products, while sales volume for digital compact cameras declined compared with the previous year amid the ongoing contraction of the market. Sales volume for inkjet printers declined for consumer products, while sales volume of wide format inkjet printers for business use exceeded the previous year. In contrast, sales of FPD lithography equipment and OLED panel manufacturing equipment increased, boosted by increased capital investment by panel manufacturers. Consequently, along with the negative impact of the appreciation of the yen, net sales for the year decreased 10.5% year on year to ¥3,401.5 billion. The gross profit ratio decreased by 1.7 points year on year to 49.2% mainly due to the negative effect of yen's appreciation. Despite a reduction in operating expenses of 8.5% year on year, partly due to Group-wide efforts to reduce spending, operating profit decreased by 35.6% to ¥228.9 billion. Other income (deductions) increased by ¥23.6 billion due to foreign currency exchange gains while income before income taxes decreased by 29.6% year on year to ¥244.7 billion and net income attributable to Canon Inc. decreased by 31.6% to ¥150.7 billion.
In December 2016, all shares of Toshiba Medical Systems Corporation (TMSC) were obtained following the completion of necessary clearance procedures by antitrust authorities, and TMSC joined the Canon Group.
Basic net income attributable to Canon Inc. shareholders per share for the year was ¥137.95, a year-on-year decrease of ¥63.70.
Results by SegmentLooking at Canon's full-year performance by business unit, beginning with the Office Business Unit, unit sales of office MFDs increased overall from the previous year thanks to strong sales of color models, even with the continued decrease in sales of monochrome models. This growth was supported by steady sales of the color A3 (12"x18") imageRUNNER ADVANCE C5500-series models, which were released this year, and the small-office/home-office color A3 (12"x18") imageRUNNER C3300-series models, which were launched in the previous year, along with expanded sales of imagePRESS C10000VP-series models, which target the production printing market. Among high-speed continuous-feed printers, unit sales of the Océ-produced VarioPrint i300, a high-speed sheet-fed color inkjet press, increased year on year. Although the unit sales of laser printers had been below level against the same period of the previous year until the third quarter, due to the sluggish economic conditions in the emerging countries, unit sales exceeded the same period of the year at fourth quarter along with a smooth transition to new models as planned. These factors, coupled with the negative effect of unfavorable currency exchange rates, resulted in total sales for the business unit of ¥1,807.8 billion, a year-on-year decline of 14.4%, while operating profit totaled ¥169.5 billion, a year-on-year decline of 41.7%.
Within the Imaging System Business Unit, sales volume for interchangeable-lens digital cameras grew compared with the previous year owing to healthy demand for the EOS-1D X mark II and the EOS 5D mark IV, which were launched this year, and the launch of a new addition to the Company's strengthening compact-system camera lineup, the EOS M5, which features a built-in EVF. As for digital compact cameras, along with the ongoing contraction of the market, sales volume declined amid difficulties in procuring components due to the earthquake in Kumamoto earlier in the year, with much of the profitability generated by sales of high-added-value models that deliver high image quality and zoom capabilities. As for inkjet printers, although sales volume declined compared with the previous year due to a shrinking market for consumer products, sales of models equipped with large-capacity ink tanks that were launched in the fourth quarter of 2015 experienced healthy demand mainly in emerging countries, while demand was high mainly in Japan for newly designed models for home use that were launched in 2016. Additionally, wide format inkjet printers, new imagePROGRAF PRO-series models, which target the professional photo and graphic art market, saw an increase in unit sales. As a result of these factors, along with the negative effect of unfavorable currency exchange rates, sales for the business unit decreased by 13.3% to ¥1,095.3 billion while operating profit totaled ¥144.4 billion, a year-on-year decline of 21.3%.
In the Industry and Other Business Unit, unit sales of semiconductor lithography equipment decreased from the previous year amid the postponement of some capital investments by customers. As for FPD lithography equipment, unit sales of lithography systems employed in the fabrication of mid- and small-size panels increased in response to growing demand for high-definition OLED displays used in mobile devices. Also, sales of manufacturing equipment for OLED displays, which is sold by Canon Tokki, increased amid brisk capital investment by panel manufacturers. In addition, sales of network camera increased compared with the previous year thanks to efforts to strengthen the product lineup. Consequently, sales for the business unit increased 11.4% year-on-year to ¥584.7 billion while operating profit grew by ¥20.5 billion to ¥7.4 billion.
Cash FlowDuring 2016, cash flow from operating activities totaled ¥500.3 billion, an increase of ¥25.6 billion compared with the previous year owing to improvements in working capital. Cash flow from investing activities increased ¥383.5 billion year on year to ¥837.1 billion mainly due to the acquisition of all of the shares of TMSC. Accordingly, free cash flow totaled negative ¥336.8 billion, a decrease of ¥357.9 billion compared with the previous year.
Cash flow from financing activities recorded proceeds of ¥355.7 billion, mainly owing to a bank borrowing related to the acquisition of TMSC.
Owing to these factors, as well as the negative impact from foreign currency translation adjustments, cash and cash equivalents decreased by ¥3.4 billion to ¥630.2 billion from the end of the previous year.
Non-consolidated ResultsNon-consolidated net sales totaled ¥1,764.0 billion, a year-on-year decrease of 15.6%, while ordinary profit decreased by 41.3% to ¥158.4 billion and net income decreased by 37.2% to ¥133.1 billion.
OutlookAs for the outlook in 2017, the U.S. economy is expected to grow thanks to its continued gradual recovery as employment conditions improve and expectations surrounding the financial policy of the new administration. Looking at the European economy, the declining cohesion of the EU resulting from the U.K.'s decision to leave the EU has caused increasing uncertainty for economic growth projections. As for emerging economies, although the outlook indicates signs of recovery for Russia and Brazil whose economies have experienced negative growth so far, the economic slowdown in China is expected to be prolonged.
The outlook for the Japanese economy, despite signs of a recovery in employment conditions, indicates
prolonged sluggish consumer spending and the market is expected to remain along a path of moderate growth. Overall, while the U.S. economy performs the role of the driving force of the world economy, the global economy is expected to move toward a moderate recovery.
In the businesses in which Canon is involved, among office MFDs, demand for color models makes up for the market contraction of monochrome models and demand is expected to remain in line with that of the previous year overall. Although demand for laser printers is expected to remain at the same level as that for the previous year, demand for color models and laser multifunction models with high potential consumable sales is expected to increase. As for interchangeable-lens digital cameras, although demand is waning mainly in developed countries, the sluggish demand condition is improving gradually, which is expected to bottom out. Projections for digital compact cameras indicate continued market contraction, centered mainly on low-priced models. With regard to inkjet printers, demand is expected to continue declining mainly for consumer models. Looking at industrial equipment, within the semiconductor lithography equipment segment, the market is expected to remain at the same level as the previous year while the outlook for FPD lithography equipment and OLED display manufacturing equipment points to continued active capital investment by panel manufacturers. The network camera market is also expected to grow in response to increasing marketing and production site efficiency-enhancing needs, in addition to disaster monitoring and crime prevention functions.
With regard to currency exchange rates for the year, on which the Company's performance outlook is based, Canon anticipates exchange rates of ¥110 to the U.S. dollar and ¥120 to the euro, representing a depreciation of approximately ¥1 against the U.S. dollar and approximately same level against the euro compared with the annual average rates of the previous year.
Upon taking into consideration the impact of the acquisition of TMSC and the current economic forecast, Canon projects full-year consolidated net sales in 2017 of ¥4,000.0 billion, a year-on-year increase of 17.6%; operating profit of ¥255.0 billion, a year-on-year increase of 11.4%; income before income taxes of ¥260.0 billion, a year-on-year increase of 6.3%; and net income attributable to Canon Inc. of ¥170.0 billion, a year-on-year increase of 12.8%.
Basic Policy Regarding Profit Distribution and Dividends for the Current Fiscal YearCanon is being more proactive in returning profits to shareholders, mainly in the form of a dividend, taking into consideration medium-term profit forecasts along with planned future investments, cash flow and other factors.
In 2016, Canon undertook such large investments for future growth as the acquisition of TMSC. Thanks, however, to efforts to boost product competitiveness and strengthen the Company's financial position through a management focus on profitability and cash flow, Canon was able to maintain its strong financial position. Taking this into consideration while seeking to actively provide a stable return to shareholders, Canon has decided to distribute a full-year dividend of ¥150 per share, (interim dividend of ¥75 per share [already distributed] and year-end dividend of ¥75), which is the same as the previous year's dividend.
This document contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management's views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project" or "should" and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon's targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this document. A detailed description of these and other risk factors is included in Canon's annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements.
-
Number of group companies
December 31, 2016
December 31, 2015
Change
Subsidiaries Affiliates
367
9
317
5
50
4
Total
376
322
54
- Group structure and major companies
Outside Customers
Sales Companies | |||
Japan | Americas | Europe | Other |
Canon Marketing Japan Inc. | Canon U.S.A.,Inc. | Canon Europe Ltd. | Canon (China) Co.,Ltd. |
Canon System and Support Inc. | Canon Canada,Inc. | Canon Europa N.V. | Canon Singapore Pte.Ltd. |
etc. | Canon Solutions America, Inc. | Canon (UK) Ltd. | Canon Hongkong Co.,Ltd. |
Canon Financial Services, Inc. | Canon France S.A.S. | Canon Australia Pty.Ltd. | |
TOSHIBA AMERICA | Canon Deutschland GmbH | Canon India Pvt., Ltd. | |
MEDICAL SYSTEMS, INC. | |||
Canon Ru LLC | etc. | ||
etc. | |||
Canon (Schweiz) AG | |||
Canon Nederland N.V. | |||
Canon Middle East FZ-LLC | |||
TOSHIBA MEDICAL | |||
SYSTEMS EUROPE B.V. | |||
etc. |
Canon Inc.
Domestic Manufacturers
Overseas Manufacturers
Office
Office
Canon Electronics Inc. Canon Finetech Inc. Nisca Corporation Canon Chemicals Inc. Canon Precision Inc. Nagahama Canon Inc.
Oita Canon Materials Inc. etc.
Imaging System
Canon Virginia,Inc. Océ-Technologies B.V.
Canon Dalian Business Machines, Inc. Canon Zhongshan Business Machines Co., Ltd.
Canon (Suzhou) Inc. Canon Vietnam Co.,Ltd.
Canon Prachinburi (Thailand) Ltd. etc.
Imaging System
Oita Canon Inc. Fukushima Canon Inc. Nagasaki Canon Inc.
Oita Canon Materials Inc. Canon Finetech Inc.
Canon Components, Inc. etc.
Canon Inc., Taiwan Canon Zhuhai, Inc.
Canon Hi-Tech(Thailand)Ltd. Canon Vietnam Co.,Ltd.
Canon Opto(Malaysia)Sdn.Bhd. etc.
Industry and Other
Industry and Other
Canon Electronics Inc. Canon Components, Inc. Canon Precision Inc.
Canon Machinery Inc.
Canon ANELVA Corporation Canon Tokki Corporation
TOSHIBA MEDICAL SYSTEMS CORPORATION
TOSHIBA ELECTRON TUBES&DEVICES CO.,LTD.
etc.
Product Supply Parts Supply
Axis Communications AB etc.
Other Companies
Canon Software Inc.
Canon Research Centre France S.A.S.
Canon Information Systems Research Australia Pty.Ltd.
Canon IT Solutions Inc. etc.
-
Basic Policy
Under the corporate philosophy of kyosei-living and working together for the common good-Canon's basic management policy is to contribute to the prosperity and well-being of the world while endeavoring to become a truly excellent global corporation targeting continued growth and development.
-
Management Goals
Based on this basic management policy, Canon launched the Excellent Global Corporation Plan in 1996 and, from Phase I through to Phase IV, has worked to strengthen its management base and improve corporate value. In 2016, under the slogan "Embracing the challenge of new growth through a grand strategic transformation," Canon embarked on a new five-year initiative: Phase V of the Excellent Global Corporation Plan. Under this plan, Canon aims to facilitate growth through structural transformation by reinforcing existing businesses and taking steps to cultivate and strengthen new businesses.
Regarding new businesses, Canon is particularly focused on areas where market expansion is expected in the future, namely such B2B spheres as commercial printing, network cameras, healthcare and industrial equipment. As part of such efforts, Toshiba Medical Systems Corporation (TMSC), a leading company in the medical equipment industry, was made a Canon subsidiary in December of 2016, the first year of Phase V. Through this acquisition, Canon was able to make significant progress in establishing a foundation for new businesses.
- Business Challenges and Countermeasures
Although the IMF is projecting a modest pickup in the global economy in 2017, political and economic circumstances are expected to remain highly uncertain.
2017 marks not only the second year of Phase V of the Excellent Global Corporation Plan, but also Canon's 80th anniversary. To ensure that 2017 is a year befitting this milestone, Canon is addressing the following key challenges under the theme "Further promoting grand strategic transformation by accelerating reforms."
Thoroughly bolster existing business
In order to successfully transform its business structure, Canon will work to improve profitability by reinforcing the existing businesses that will support this transformation. Specifically, Canon will accelerate the development of "Dantotsu Products," which are products with unique appeal and strengths that realize high profitability thanks to their difficulty to imitate. At the same time, Canon will advance such initiatives as automation, in-house production, and procurement reform, in order to achieve a cost-of-sales ratio of 45%. Additionally, Canon will expand its business domains, developing new business models in response to the internet of things (IoT) and cloud environments.
Strengthen and grow new businesses and create future businesses
For commercial printing, with the aim of becoming a comprehensive printing company, Canon will accelerate product development in order to make a full-scale entry into the fast-growing package printing market. Regarding network cameras, Canon will work to strengthen camera intelligence, by not only improving image quality, but leveraging the image-processing and image-analytics technologies at its disposal in order to create market-specific solutions. As for healthcare, Canon will formulate new growth strategies, built around TMSC, and will exert the Group's comprehensive strength to provide innovative products and high-quality services on a global scale. For industrial equipment, such as IC lithography equipment that utilizes nanoimprint lithography, Canon will formulate new business strategies to pioneer a "fourth industrial revolution" driven by artificial intelligence and IoT.
Restructure the global sales network
In the B2B sphere, success or failure is determined by the capacity to devise and implement solutions. In addition to training highly skilled sales engineers with a breadth of technical knowledge spanning both hardware and software, Canon will establish a sales structure with networks that expand to corporations and governments. Additionally, Canon will formulate global sales strategies that take full advantage of the expansion and development of e-commerce.
Strengthen R&D through open innovation
Canon will enhance R&D efficiency in existing business fields and be selective in investment in promising new fields. On top of this, aiming to establish and expand service businesses, Canon will train software engineers, develop systems and accelerate the establishment of an external cooperation system.
Cultivate global human resources and reinvigorate the Canon spirit
An enterprising spirit and the San-ji (Three Selfs) Spirit of self-motivation, self-management, and self-awareness, have been basic components of Canon's corporate DNA since its foundation. Canon is now working to re-instill these values as we promote the development of human resources that are able to exert leadership in a global environment.
IV.Basic Concept Regarding the Selection of Accounting StandardsCanon is listed on the New York Stock Exchange and, since registering its American Depositary Receipts on the OTC (over-the-counter) market in 1969, has prepared its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") over the long term.
Canon has continued to adopt U.S. GAAP in order to maintain the continuity of financial statements from the past and to maintain international comparability.
V. Financial StatementsCONSOLIDATED BALANCE SHEETS
CONSOLIDATED
ASSETS
As of
December 31, 2016
Millions of yen As of
December 31, 2015 Change
Current assets:
Cash and cash equivalents Short-term investments
¥ 630,193
3,206
¥ 633,613
20,651
¥ (3,420)
(17,445)
Trade receivables, net
641,458
588,001
53,457
Inventories
560,736
501,895
58,841
Prepaid expenses and other current assets
264,155
313,019
(48,864)
Total current assets
2,099,748
2,057,179
42,569
Noncurrent receivables
29,297
29,476
(179)
Investments
73,680
67,862
5,818
Property, plant and equipment, net
1,194,976
1,219,652
(24,676)
Intangible assets, net
446,268
241,208
205,060
Goodwill
936,424
478,943
457,481
Other assets
358,136
333,453
24,683
Total assets
¥ 5,138,529
¥ 4,427,773
¥ 710,756
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans and current portion of long-term debt
¥ 1,850
¥ 688
¥ 1,162
Trade payables
372,269
278,255
94,014
Accrued income taxes
30,514
47,431
(16,917)
Accrued expenses
304,901
317,653
(12,752)
Other current liabilities
273,835
171,302
102,533
Total current liabilities
983,369
815,329
168,040
Long-term debt, excluding current installments
611,289
881
610,408
Accrued pension and severance cost
407,200
296,262
110,938
Other noncurrent liabilities
142,049
130,838
11,211
Total liabilities
2,143,907
1,243,310
900,597
Equity:
Canon Inc. shareholders' equity:
Common stock
174,762
174,762
-
Additional paid-in capital
401,385
401,358
27
Legal reserve
66,558
65,289
1,269
Retained earnings
3,350,728
3,365,158
(14,430)
Accumulated other comprehensive income (loss)
(199,881)
(29,742)
(170,139)
Treasury stock, at cost
(1,010,423)
(1,010,410)
(13)
Total Canon Inc. shareholders' equity
2,783,129
2,966,415
(183,286)
Noncontrolling interests
211,493
218,048
(6,555)
Total equity
2,994,622
3,184,463
(189,841)
Total liabilities and equity
¥
5,138,529
¥
4,427,773
¥
710,756
As of
Millions of yen
As of
Notes:
December 31, 2016
December 31, 2015
Allowance for doubtful receivables
¥ 11,075 ¥
12,077
Accumulated depreciation 2,578,342 2,570,806
Accumulated other comprehensive income (loss):
Foreign currency translation adjustments (13,960) 87,038
Net unrealized gains and losses on securities 15,251 14,055
Net gains and losses on derivative instruments (2,742) 182
Pension liability adjustments (198,430) (131,017)
CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
CONSOLIDATED
Consolidated statements of income
Results for the fourth quarter Millions ofyen
Three months ended
Three months ended
Change(%)
December 31, 2016
December 31, 2015
Net sales
¥ 965,173 ¥
1,042,638
- 7.4
Cost of sales 505,066 519,830
Gross profit 460,107 522,808 - 12.0 Operating expenses:
Selling, general and administrative expenses
305,987
332,471
Research and development expenses
73,952
83,295
379,939
415,766
Operating profit Other income (deductions):
80,168
107,042
- 25.1
Interest and dividend income
1,178
1,196
Interest expense
(219)
(73)
Other, net
(8,492)
796
(7,533)
1,919
Income before income taxes
72,635
108,961
- 33.3
Income taxes
22,751
35,660
Consolidated net income
49,884
73,301
Less: Net income attributable to noncontrolling interests Net income attributable to Canon Inc..
5,054
¥ 44, 30
4,397
¥ 68,904
- 34..9
Results for the fiscal year Millions ofyen
Year ended December 31, 2016
Year ended
December 31, 2015 Change(%)
Net sales
¥ 3,401,487 ¥
3,800,271
- 10.5
Cost of sales 1,727,654 1,865,887
Gross profit 1,673,833 1,934,384 - 13.5
Operating expenses:
Selling, general and administrative expenses
1,142,591
1,250,674
Research and development expenses
302,376
328,500
1,444,967
1,579,174
Operating profit Other income (deductions):
228,866
355,210
- 35.6
Interest and dividend income
4,762
5,501
Interest expense
(1,061)
(584)
Other, net
12,084
(12,689)
15,785
(7,772)
Income before income taxes
244,651
347,438
- 29.6
Income taxes
82,681
116,105
Consolidated net income
161,970
231,333
Less: Net income attributable to noncontrolling interests Net income attributable to Canon Inc.
11,320
¥ 150,650
11,124
¥ 220,209
- 31.6
CONSOLIDATED
Consolidated statements of comprehensive income
Results for the fourth quarter Millions ofyen
Three months ended
Three months ended
Change(%)
December 31, 2016
December 31, 2015
Consolidated net income
Other comprehensive income (loss), net of tax:
¥ 49,884
¥ 73,301
- 31.9
Foreign currency translation adjustments
189,007
(3,984)
Net unrealized gains and losses on securities
5,184
2,779
Net gains and losses on derivative instruments
(4,514)
(65)
Pension liability adjustments
(72,975)
(5,529)
116,702
(6,799)
Comprehensive income
166,586
66,502
+ 150.5
Less: Comprehensive income attributable to
noncontrolling interests 5,584 3,420
Comprehensive income attributable to Canon Inc.
¥ 161,002
¥ 63,082
+ 155.2
Results for the fiscal year Millions ofyen
Year ended December 31, 2016
Year ended
December 31, 2015 Change(%)
Consolidated net income
Other comprehensive income (loss), net of tax:
¥ 161,970
¥ 231,333
- 30.0
Foreign currency translation adjustments
(107,666)
(55,504)
Net unrealized gains and losses on securities
997
2,010
Net gains and losses on derivative instruments
(2,948)
2,785
Pension liability adjustments
(70,355)
(6,543)
(179,972)
(57,252)
Comprehensive income (loss)
Less: Comprehensive income attributable to
(18,002)
174,081
-
noncontrolling interests 1,745 11,973
Comprehensive income (loss) attributable to Canon Inc.
¥ (19,747)
¥ 162,108 -
DETAILS OF SALES
CONSOLIDATED
Results for the fourth quarter Millions of yen
Sales by business unit Three monthsended
Three months ended
Change(%)
December 31, 2016
December 31, 2015
Office
¥
485,850
¥
534,007
-
9.0
Imaging System
324,742
366,183
-
11.3
Industry and Others
175,634
166,211
+
5.7
Eliminations (21,053) (23,763) -
Total
¥ 965,173 ¥
1,042,638
- 7.4
Millions of yen
Sales by region Three months ended
Three months ended
Change(%)
December 31, 2016
December 31, 2015
Japan
¥
205,096
¥
203,737
+ 0.7
Overseas:
Americas
267,467
311,596
- 14.2
Europe
262,324
300,727
- 12.8
Asia and Oceania 230,286 226,578 + 1.6
760,077 838,901 - 9.4
Total
¥ 965,173 ¥
1,042,638
- 7.4
Results for the fiscal year Millions of yen
Sales by business unit Yearended
Year ended
Change(%)
December 31, 2016
December 31, 2015
Office
¥
1,807,819
¥
2,110,816
-
14.4
Imaging System
1,095,289
1,263,835
-
13.3
Industry and Others
584,660
524,651
+
11.4
Eliminations (86,281) (99,031) -
Total
¥ 3,401,487 ¥
3,800,271
- 10.5
Millions of yen
Sales by region Yearended
Year ended
Change(%)
December 31, 2016
December 31, 2015
Japan
¥
706,979
¥
714,280
- 1.0
Overseas:
Americas
963,544
1,144,422
- 15.8
Europe
913,523
1,074,366
- 15.0
Asia and Oceania 817,441 867,203 - 5.7
2,694,508 3,085,991 - 12.7
Total
¥ 3,401,487 ¥
3,800,271
- 10.5
Notes:1. The primary products included in each of the segments are as follows: Office Business Unit :
Office multifunction devices (MFDs) / Laser multifunction printers (MFPs) / Laser printers / Digital production printing systems / High speed continuous feed printers / Wide-format printers / Document solutions
Imaging System Business Unit :
Interchangeable lens digital cameras / Digital compact cameras / Digital camcorders / Digital cinema cameras / Interchangeable lenses / Compact photo printers / Inkjet printers / Large-format inkjet printers / Commercial photo printers / Image scanners / Multimedia projectors / Broadcast equipment / Calculators
Industry and Others Business Unit :
Semiconductor lithography equipment / FPD (Flat panel display) lithography equipment / Digital radiography systems / Diagnostic X-ray System / Computed Tomography / Magnetic Resonance Imaging / Diagnostic Ultrasound System / Clinical Chemistry Analyzer / Ophthalmic equipment / Vacuum thin-film deposition equipment /
Organic LED (OLED) panel manufacturing equipment / Die bonders / Micromotors / Network cameras / Handy terminals / Document scanners
2. The principal countries and regions included in each regional category are as follows: Americas: United States of America, Canada, Latin America
Europe: United Kingdom, Germany, France, Netherlands, European countries, Middle East and Africa Asia and Oceania: China, Asian countries, Australia
CANON INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
CONSOLIDATED
Millions of yen
Common Stock
Additional paid-in capital
Legal reserve
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock
Total Canon Inc. shareholders' equity
Noncontrolling interests
Total equity
Balance at December 31, 2014
¥ 174,762
¥ 401,563
¥ 64,599
¥ 3,320,392
¥
28,286
¥ (1,011,418)
¥
2,978,184
¥
162,574
¥ 3,140,758
Equity transactions with noncontrolling interests and other Dividends to Canon Inc. shareholders
Dividends to noncontrolling interests Acquisition of subsidiaries
Transfers to legal reserve
Comprehensive income: Net income
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments
Net unrealized gains and losses on securities Net gains and losses on derivative instruments Pension liability adjustments
Total comprehensive income
Repurchases and reissuance of treasury stock
(29)
690
(174,711)
73
1,008
44
(29,627)
(29,583)
(174,711)
(174,711)
(3,958)
(3,958)
77,086
77,086
(690)
-
-
220,209
220,209
11,124
231,333
(57,592)
(57,592)
2,088
(55,504)
1,509
1,509
501
2,010
2,785
2,785
-
2,785
(4,803)
(4,803)
(1,740)
(6,543)
162,108
11,973
174,081
(176)
(42)
790
790
Balance at December 31, 2015
¥ 174,762
¥ 401,358
¥ 65,289
¥ 3,365,158
¥
(29,742)
¥ (1,010,410)
¥
2,966,415
¥
218,048
¥ 3,184,463
Equity transactions with noncontrolling interests and other Dividends to Canon Inc. shareholders
Dividends to noncontrolling interests Acquisition of subsidiaries
Transfers to legal reserve
Comprehensive income: Net income
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments Net unrealized gains and losses on securities
Net gains and losses on derivative instruments Pension liability adjustments
Total comprehensive income (loss) Repurchases and reissuance of treasury stock
27
1,269
(163,810)
258
(13)
285
(5,270)
(4,985)
(163,810)
(163,810)
(4,077)
(4,077)
1,047
1,047
(1,269)
-
-
150,650
150,650
11,320
161,970
(101,257)
(101,257)
(6,409)
(107,666)
1,196
1,196
(199)
997
(2,924)
(2,924)
(24)
(2,948)
(67,412)
(67,412)
(2,943)
(70,355)
(19,747)
1,745
(18,002)
(1)
(14)
(14)
Balance at December 31, 2016
¥ 174,762
¥ 401,385
¥ 66,558
¥ 3,350,728
¥
(199,881)
¥ (1,010,423)
¥
2,783,129
¥
211,493
¥ 2,994,622
CONSOLIDATED STATEMENTS OF CASH FLOWS
Millions of yen
Year ended
December 31, 2016
Year ended
December 31, 2015
Cash flows from operating activities: Consolidated net income
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
¥ 161,970 ¥
231,333
Depreciation and amortization
250,096
273,327
Loss on disposal of fixed assets
5,203
7,975
Deferred income taxes
7,188
4,672
(Increase) decrease in trade receivables
(4,155)
22,720
Decrease in inventories
6,156
14,249
Increase (decrease) in trade payables
56,844
(17,288)
Decrease in accrued income taxes
(16,456)
(8,731)
Decrease in accrued expenses
(5,256)
(25,529)
Increase in accrued (prepaid) pension and severance cost
5,489
4,622
Other, net
33,204
(32,626)
Net cash provided by operating activities
500,283
474,724
Cash flows from investing activities:
Purchases of fixed assets
(206,971)
(252,948)
Proceeds from sale of fixed assets
6,177
3,824
Purchases of available-for-sale securities
(84)
(98)
Proceeds from sale and maturity of available-for-sale securities
1,181
804
Decrease in time deposits, net
15,414
47,665
Acquisitions of businesses, net of cash acquired
(649,570)
(251,534)
Purchases of other investments
(4,460)
(1,220)
Other, net
1,188
(112)
Net cash used in investing activities
(837,125)
(453,619)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
610,552
717
Repayments of long-term debt
(856)
(1,350)
Decrease in short-term loans, net
(80,580)
-
Purchases of noncontrolling interests
(4,993)
(29,570)
Dividends paid
(163,810)
(174,711)
Repurchases and reissuance of treasury stock
(14)
790
Other, net
(4,607)
(6,078)
Net cash provided by (used in) financing activities
355,692
(210,202)
Effect of exchange rate changes on cash and cash equivalents
(22,270)
(21,870)
Net change in cash and cash equivalents
(3,420)
(210,967)
Cash and cash equivalents at beginning of year
633,613
844,580
Cash and cash equivalents at end of year
¥ 630,193
¥ 633,613
NOTE FOR GOING CONCERN ASSUMPTION
Not applicable.
SEGMENT INFORMATION
SEGMENT INFORMATION BY BUSINESS UNIT
Results for the fourth quarter Millions of yen
Three months ended
December 31, 2016 Office
Net sales:
Three months ended
December 31, 2015 Change(%)
External customers
¥ 484,656 ¥
533,366
- 9.1
Intersegment 1,194 641 + 86.3
Total 485,850 534,007 - 9.0
Operating cost and expenses 437,225 461,764 - 5.3
Operating profit
¥ 48,625
¥ 72,243
- 32.7
Imaging System
Net sales:
External customers
¥ 324,455 ¥
365,944
- 11.3
Intersegment 287 239 + 20.1
Total 324,742 366,183 - 11.3
Operating cost and expenses 273,040 304,057 - 10.2
Operating profit
¥ 51,702
¥ 62,126
- 16.8
Industry and Others
Net sales:
External customers
¥ 156,062 ¥
143,328
+ 8.9
Intersegment 19,572 22,883 - 14.5
Total 175,634 166,211 + 5.7
Operating cost and expenses 172,472 168,995 + 2.1
Operating profit
¥ 3,162
¥ (2,784)
-
Corporate and Eliminations
Net sales:
External customers
¥ - ¥ - -
Intersegment
(21,053)
(23,763)
-
Total
(21,053)
(23,763)
-
Operating cost and expenses
2,268
780
-
Operating profit
¥ (23,321)
¥ (24,543)
-
Consolidated
Net sales:
External customers
¥ 965,173 ¥
1,042,638
- 7.4
Intersegment - - -
Total 965,173 1,042,638 - 7.4
Operating cost and expenses 885,005 935,596 - 5.4
Operating profit
¥ 80,168
¥ 107,042
- 25.1
Results for the fiscal year Millions of yen
Year ended
December 31, 2016 Office
Net sales:
Year ended
December 31, 2015 Change(%)
External customers
¥ 1,804,862 ¥
2,108,246
- 14.4
Intersegment 2,957 2,570 + 15.1
Total 1,807,819 2,110,816 - 14.4
Operating cost and expenses 1,638,333 1,820,230 - 10.0
Operating profit 169,486 290,586 - 41.7 Total assets 961,749 1,020,758 - 5.8
Depreciation and amortization 78,319 86,206 - 9.1
Capital expenditures
¥ 72,189
¥ 73,819
- 2.2
Imaging System
Net sales:
External customers
¥ 1,094,291 ¥
1,262,667
- 13.3
Intersegment 998 1,168 - 14.6
Total 1,095,289 1,263,835 - 13.3
Operating cost and expenses 950,876 1,080,396 - 12.0
Operating profit 144,413 183,439 - 21.3 Total assets 391,661 452,283 - 13.4
Depreciation and amortization 47,386 52,070 - 9.0
Capital expenditures
¥ 25,564
¥ 38,337
- 33.3
Industry and Others
Net sales:
External customers
¥ 502,334 ¥
429,358
+ 17.0
Intersegment 82,326 95,293 - 13.6
Total 584,660 524,651 + 11.4
Operating cost and expenses 577,212 537,730 + 7.3
Operating profit 7,448 (13,079) - Total assets 545,210 332,252 + 64.1
Depreciation and amortization 41,053 45,064 - 8.9
Capital expenditures
¥ 29,346
¥ 24,241
+ 21.1
Corporate and Eliminations
Net sales:
External customers
¥ - ¥ - -
Intersegment (86,281) (99,031) -
Total (86,281) (99,031) -
Operating cost and expenses 6,200 6,705 -
Operating profit (92,481) (105,736) - Total assets 3,239,909 2,622,480 + 23.5
Depreciation and amortization 83,338 89,987 - 7.4
Capital expenditures
¥ 81,280
¥ 106,733
- 23.8
Consolidated
Net sales:
External customers
¥ 3,401,487 ¥
3,800,271
- 10.5
Intersegment - - -
Total 3,401,487 3,800,271 - 10.5
Operating cost and expenses 3,172,621 3,445,061 - 7.9
Operating profit 228,866 355,210 - 35.6 Total assets 5,138,529 4,427,773 + 16.1
Depreciation and amortization 250,096 273,327 - 8.5
Capital expenditures
¥ 208,379
¥ 243,130
- 14.3
In addition to the disclosure requirements under Topic 280, Canon has disclosed the segment information, "SEGMENT INFORMATION BY GEOGRAPHIC AREA", which is based on the location of Canon Inc. and its subsidiaries. Results from a survey of a representative sample of financial statement users, however, indicated that they consider the latter to be less useful than sales information based on the location where the product is shipped to customers, which is disclosed separately. For this reason, Canon decided to discontinue the disclosure of geographical segment information based on the location of Canon Inc. and its subsidiaries from this year, in order to avoid the risk of confusing users due to disclosing two similar types of geographical information and make disclosure more concise and transparent. Sales information based on the location where the products is shipped to customers is available on page 12 "3. DETAILS OF SALES in V. Financial Statements".
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
GROUP POSITION
Number of Group Companies
December 31, 2016
December 31, 2015
Change
Subsidiaries Affiliates
367
9
317
5
50
4
Total
376
322
54
Change in Group Entities Subsidiaries
Addition: 61 companies
Removal: 11 companies
Affiliates (Carried at Equity Basis) Addition: 4 companies
Subsidiaries Listed on Domestic Stock Exchange
Tokyo Stock Exchange (1st section): Canon Marketing Japan Inc., Canon Electronics Inc.
SIGNIFICANT ACCOUNTING POLICIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NET INCOME ATTRIBUTABLE TO CANON INC. SHAREHOLDERS PER SHARE
Results for the fiscal year Millions of yen
Year ended
December 31, 2016
Year ended
December 31, 2015
Net income attributable to Canon Inc.
-Basic
¥ 150,650 ¥
220,209
-Diluted 150,650 220,209
Average common shares outstanding
Number of shares
-Basic 1,092,070,680 1,092,017,955
-Diluted 1,092,070,680 1,092,052,886
Net income attributable to
Canon Inc. shareholders per share:
-Basic
¥ 137.95
Yen
¥
201.65
-Diluted 137.95 201.65
ACQUISITIONS
As necessary clearance from competition regulatory authorities regarding the acquisition of Toshiba Medical Systems Corporation (TMSC) shares were obtained, Canon exercised the share options acquired for consideration of cash, through a Shares and Other Securities Transfer Agreement concluded with Toshiba Corporation dated March 17, 2016, and acquired all of the shares of TMSC. The acquisition date was December 19, 2016 and the purchase price was ¥665.5 billion.
Under Phase V of the Excellent Global Corporation Plan, a five-year initiative that Canon has been implementing since 2016, "embracing the challenge of new growth through a grand strategic transformation" has been set as a basic policy. With regard to "strengthening and growing new businesses, and creating future businesses," a particularly important strategy, Canon intends to develop a health care business within the realm of "safety and security," as a next-generation pillar of growth.
Since the acquisition date of TMSC was near the balance sheet date, the allocation of the purchase price to the assets acquired and liabilities assumed was incomplete and provisionally carried out as of December 31, 2016.
On January 23, 2017, regarding the borrowing that was provisionally raised in March 2016 for this acquisition, a contract was concluded to refinance with an unsecured loan with a repayment due in December 2021. The loan is ¥ 610 billion as of December 31, 2016, and is included in long-term debt in the consolidated balance sheet.
FINANCE RECEIVABLES AND OPERATING LEASES, MARKETABLE SECURITIES, DEFERRED TAX ACCOUNTING, EMPLOYEE RETIREMENT AND SEVERANCE BENEFITS, STOCK OPTIONS, DERIVATIVE CONTRACTS AND OTHERS
The disclosure is omitted as it is not considered significant in this report.
SUBSEQUENT EVENT
NOTE FOR NON-GAAP FINANCIAL MEASURES
Candidate for new Director to be appointed
Toshio Homma (Executive Vice President, Chief Executive of Office Imaging Products Operations)
Candidate for new Representative Director
Representative Director
/ Executive Vice President
Toshio Homma (Executive Vice President, Chief Executive
of Office Imaging Products Operations)
Candidate for Director to be promoted
New Executive Officers to be appointed Effective date: April 1, 2017
Toshio Takiguchi (President of Toshiba Medical Systems Corporation)
Hideki Sanatake (Deputy Group Executive of Corporate Intellectual Property and Legal Headquarters)
Tamaki Hashimoto (Group Executive of Consumer Inkjet Products Group)
Hideto Kohtani (Group Executive of Office Imaging Products Digital Solution Group) Minoru Asada (Senior General Manager of Group Management Center)
Kazuhiko Nagashima (Senior General Manager of Finance Accounting Center) Katsuhiko Shinjo (Deputy Group Executive of R&D Headquarters)
Executive Officers to be retired
Effective date: March 30, 2017
Representative Director / Executive Vice President to be appointed
Toshio Homma (Executive Vice President, Chief
Executive of Office Imaging Products
Operations)
Effective date: March 31, 2017
President of Canon Tokki Corporation Shigeyuki Uzawa (Managing Executive Officer, President
of Canon Tokki Corporation)
Managing Director of Canon Electronics Inc. to be appointed
Akiyoshi Kimura (Managing Executive Officer, Group
Executive of Corporate Planning
Development Headquarters)
Adviser to be appointed Akio Noguchi (Managing Executive Officer, Group
Executive of Mixed Reality Solution
Business Promotion Headquarters)
Masato Okada (Executive Officer, Deputy Chief
Executive of Image Communication
Business Operations)
(Current Titles are Shown in the Parentheses)
Executive Officers (2/2)
Candidate for Executive Officers to be promoted Effective date: April 1, 2017
SALES BY GEOGRAPHIC AREA AND BUSINESS UNIT (2016) (Millions ofyen)
2016
2015
Change year over year
4th quarter
Year
4th quarter
Year
4th quarter
Year
Japan
Office
99,303
378,834
98,804
379,277
+0.5%
-0.1%
Imaging System
63,174
179,304
66,958
198,739
-5.7%
-9.8%
Industry and Others
42,619
148,841
37,975
136,264
+12.2%
+9.2%
Total
205,096
706,979
203,737
714,280
+0.7%
-1.0%
Overseas
Office
385,353
1,426,028
434,562
1,728,969
-11.3%
-17.5%
Imaging System
261,281
914,987
298,986
1,063,928
-12.6%
-14.0%
Industry and Others
113,443
353,493
105,353
293,094
+7.7%
+20.6%
Total
760,077
2,694,508
838,901
3,085,991
-9.4%
-12.7%
Americas
Office
153,027
582,297
175,923
713,197
-13.0%
-18.4%
Imaging System
91,064
297,403
110,869
352,946
-17.9%
-15.7%
Industry and Others
23,376
83,844
24,804
78,279
-5.8%
+7.1%
Total
267,467
963,544
311,596
1,144,422
-14.2%
-15.8%
Europe
Office
158,562
556,353
185,623
680,619
-14.6%
-18.3%
Imaging System
83,926
293,894
95,593
335,312
-12.2%
-12.4%
Industry and Others
19,836
63,276
19,511
58,435
+1.7%
+8.3%
Total
262,324
913,523
300,727
1,074,366
-12.8%
-15.0%
Asia and Oceania
Office
73,764
287,378
73,016
335,153
+1.0%
-14.3%
Imaging System
86,291
323,690
92,524
375,670
-6.7%
-13.8%
Industry and Others
70,231
206,373
61,038
156,380
+15.1%
+32.0%
Total
230,286
817,441
226,578
867,203
+1.6%
-5.7%
Intersegment
Office
1,194
2,957
641
2,570
+86.3%
+15.1%
Imaging System
287
998
239
1,168
+20.1%
-14.6%
Industry and Others
19,572
82,326
22,883
95,293
-14.5%
-13.6%
Eliminations
(21,053)
(86,281)
(23,763)
(99,031)
-
-
Total
0
0
0
0
-
-
Total
Office
485,850
1,807,819
534,007
2,110,816
-9.0%
-14.4%
Imaging System
324,742
1,095,289
366,183
1,263,835
-11.3%
-13.3%
Industry and Others
175,634
584,660
166,211
524,651
+5.7%
+11.4%
Eliminations
(21,053)
(86,281)
(23,763)
(99,031)
-
-
Total
965,173
3,401,487
1,042,638
3,800,271
-7.4%
-10.5%
Sales by business unit (Millions ofyen)
2017 (P)
2016
Year
Year
Office
1,828,900
1,807,819
Imaging System
1,092,000
1,095,289
Industry and Others
1,158,000
584,660
Eliminations
(78,900)
(86,281)
Total
4,000,000
3,401,487
Change year over year
Year
+1.2%
-0.3%
+98.1%
-
+17.6%
(P)=Projection
Sales by region (Millions ofyen)
IMPACT OF FOREIGN EXCHANGE RATES
Exchange rates (Yen)
2017 (P)
2016
2015
Year
4th quarter
Year
4th quarter
Year
Yen/US$
Yen/Euro
110.00
120.00
109.48
118.10
108.58
120.25
121.60
132.81
121.13
134.20
Impact of foreign exchange rates on sales (Year over year) (Billionsof yen)
(P)=Projection
2017(P)
2016
Year
4th quarter
Year
US$
+21.8
(31.9)
(144.2)
Euro
(1.0)
(27.1)
(90.3)
Other currencies
(4.5)
(10.7)
(45.9)
Total
+16.3
(69.7)
(280.4)
Impact of foreign exchange rates per yen (Billions of yen)
(P)=Projection
2017 (P)
Year
On sales
13.4
US$
Euro
6.6
On operating profit
4.9
US$
Euro
2.4
(P)=Projection
STATEMENTS OF CASH FLOWS (Millions ofyen)
INCREASE IN PP&E & DEPRECIATION AND AMORTIZATION
(Millions of yen)
2017(P)
2016
2015
Year
Year
Year
Increase in PP&E
-
67,675
70,887
Office
Imaging System
-
23,482
35,634
Industry and Others
-
26,788
20,683
Corporate and Eliminations
-
53,652
67,916
Total
195,000
171,597
195,120
Depreciation and amortization
-
78,319
86,206
Office
Imaging System
-
47,386
52,070
Industry and Others
-
41,053
45,064
Corporate and Eliminations
-
83,338
89,987
Total
270,000
250,096
273,327
INVENTORIES
(P)=Projection
Inventories (Millions ofyen)
2016
2015
Difference
Dec.31
Dec.31
Office
205,656
225,327
(19,671)
Imaging SSyysstteem
127,386
155,767
(28,381)
Industry and Others
227,694
120,801
+106,893
Total
560,736
501,895
+58,841
Inventories/Sales* (Days)
2016
2015
Difference
Dec.31
Dec.31
Office
42
39
+3
Imaging System
41
43
(2)
Industry and Others
152
86
+66
Total
59
47
+12
*Index based on the previous six months sales.
DEBT RATIO
2016
2015
Difference
Dec.31
Dec.31
Total debt / Total assets
11.9%
0.0%
+11.9%
OVERSEAS PRODUCTION RATIO
2016
2015
Year
Year
Overseas production ratio
44%
48%
NUMBER OF EMPLOYEES
Canon's consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.
Recently Issued Accounting Guidance
In November 2015, the Financial Accounting Standards Board issued an amendment which requires deferred tax assets and liabilities be classified as noncurrent in the consolidated balance sheets. Canon early adopted this amended guidance from the quarter beginning January 1, 2016, on a prospective basis, and prior periods were not retrospectively adjusted. Canon's current deferred tax assets were ¥ 55,108 million and current deferred tax liabilities were ¥ 2,682 million as of December 31, 2015.
There is no significant subsequent event.
We have reported our financial results in accordance with U.S. generally accepted accounting principles (U.S. GAAP). In addition, we have discussed our results using "Free cash flow" which is non-GAAP measure.
We believe this measure is beneficial to an investor's understanding on Canon's current liquidity and the alternatives of use in financing activities because it takes into consideration its operating and investing activities.
A reconciliation of this non-GAAP financial measure and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following table.
Billions of yen Year ended
December 31, 2016 | |
Net cash provided by operating activities | 500.3 |
Net cash used in investing activities | (837.1) |
Free cash flow | (336.8) |
CANON INC. | |||
NON-CONSOLIDATED | |||
11. NON-CONSOLIDATED BALANCE SHEETS | |||
( Parent company only ) | |||
Millions of yen | |||
As of | As of | ||
December 31, 2016 | December 31, 2015 | ||
ASSETS | |||
Current assets: | |||
Cash | ¥ 85,748 | ¥ 100,836 | |
Trade receivables | 476,744 | 450,449 | |
Marketable securities | - | 18,070 | |
Inventories | 155,780 | 148,485 | |
Prepaid expenses and other current assets | 231,636 | 154,575 | |
Allowance for doubtful receivables | (1) | (1) | |
Total current assets | 949,907 | 872,414 | |
Fixed assets: | |||
Net property, plant and equipment | 646,975 | 659,258 | |
Intangibles | 25,264 | 25,578 | |
Investments and other fixed assets | 1,554,652 | 880,769 | |
Allowance for doubtful receivables-noncurrent | (95) | (95) | |
Total fixed assets | 2,226,796 | 1,565,510 | |
Total assets | ¥ 3,176,703 | ¥ 2,437,924 | |
LIABILITIES AND NET ASSETS | |||
Current liabilities: | |||
Trade payables | ¥ 314,921 | ¥ 301,792 | |
Short-term loans | 602,326 | 461,686 | |
Accrued income taxes | 8,868 | 22,805 | |
Accrued warranty expenses | 2,376 | 3,920 | |
Accrued bonuses for employees | 4,397 | 4,606 | |
Accrued bonuses for directors | 60 | 144 | |
Other current liabilities | 123,758 | 108,269 | |
Total current liabilities | 1,056,706 | 903,222 | |
Noncurrent liabilities: | |||
Long-term loans | 610,000 | - | |
Accrued pension and severance cost | 53,072 | 45,985 | |
Reserve for environmental provision | 1,389 | 1,618 | |
Accrued long service rewards for employees | 1,602 | 1,449 | |
Other noncurrent liabilities | 1,288 | 1,493 | |
Total noncurrent liabilities | 667,351 | 50,545 | |
Total liabilities | 1,724,057 | 953,767 | |
Net assets: | |||
Shareholders' equity | 1,443,164 | 1,473,935 | |
Valuation and translation adjustments | 9,017 | 9,091 | |
Subscription rights to shares | 465 | 1,131 | |
Total net assets | 1,452,646 | 1,484,157 | |
Total liabilities and net assets | ¥ 3,176,703 | ¥ 2,437,924 |
CANON INC. | |||
NON-CONSOLIDATED | |||
12. NON-CONSOLIDATED STATEMENTS OF INCOME | |||
( Parent company only ) | |||
Millions of yen | |||
Year ended | Year ended | ||
December 31, 2016 | December 31, 2015 | ||
Net sales | ¥ 1,763,987 | ¥ 2,091,139 | |
Cost of sales | 1,279,902 | 1,461,270 | |
Gross profit | 484,085 | 629,869 | |
Selling, general and administrative expenses | 416,542 | 460,631 | |
Operating profit | 67,543 | 169,238 | |
Other income (deductions): | |||
Interest and dividend income | 91,406 | 103,788 | |
Interest expense | (3,386) | (2,124) | |
Other, net | 2,796 | (1,084) | |
90,816 | 100,580 | ||
Ordinary profit | 158,359 | 269,818 | |
Non-ordinary gain (loss), net | (1,678) | (2,447) | |
Income before income taxes | 156,681 | 267,371 | |
Income taxes | 23,626 | 55,408 | |
Net income | ¥ 133,055 | ¥ 211,963 |
13. NON-CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
( Parent company only )Year ended December 31, 2016
(Millions of yen)
Shareholders' equity | Valuation and translation adjustments | Subscription rights to shares | Total net assets | ||||||||||
Common stock | Capital surplus | Retained earnings | Treasury stock | Total shareholders' equity | Net unrealized gains (losses) on securities | Net deferred profits (losses) on hedges | |||||||
Additional paid-in capital | Legal reserve | Other retained earnings | |||||||||||
Reserve for special depreciation | Reserve for deferral of capital gain on property | Special reserves | Retained earnings brought forward | ||||||||||
Balance at the beginning of current period | ¥ 174,762 | ¥ 306,288 | ¥ 22,114 | ¥ 167 | ¥ 3,727 | ¥ 1,249,928 | ¥ 727,359 | ¥ (1,010,410) | ¥ 1,473,935 | ¥ 8,851 | ¥ 240 | ¥ 1,131 | ¥ 1,484,157 |
Changes of items during the period | |||||||||||||
Transfer to reserve for special depreciation | 17 | (17) | - | - | |||||||||
Reversal of reserve for special depreciation | (46) | 46 | - | - | |||||||||
Transfer to reserve for deferral of capital gain on property | 390 | (390) | - | - | |||||||||
Reversal of reserve for deferral of capital gain on property | (135) | 135 | - | - | |||||||||
Dividends paid | (163,810) | (163,810) | (163,810) | ||||||||||
Net income | 133,055 | 133,055 | 133,055 | ||||||||||
Purchase of treasury stock | (18) | (18) | (18) | ||||||||||
Disposal of treasury stock | (3) | 5 | 2 | 2 | |||||||||
Net changes of items other than shareholders' equity | - | 1,088 | (1,162) | (666) | (740) | ||||||||
Total changes of items during the period | - | - | - | (29) | 255 | - | (30,984) | (13) | (30,771) | 1,088 | (1,162) | (666) | (31,511) |
Balance at the end of current period | ¥ 174,762 | ¥ 306,288 | ¥ 22,114 | ¥ 138 | ¥ 3,982 | ¥ 1,249,928 | ¥ 696,375 | ¥ (1,010,423) | ¥ 1,443,164 | ¥ 9,939 | ¥ (922) | ¥ 465 | ¥ 1,452,646 |
Year ended December 31, 2015 (Millions of yen)
Shareholders' equity | Valuation and translation adjustments | Subscription rights to shares | Total net assets | ||||||||||
Common stock | Capital surplus | Retained earnings | Treasury stock | Total shareholders' equity | Net unrealized gains (losses) on securities | Net deferred profits (losses) on hedges | |||||||
Additional paid-in capital | Legal reserve | Other retained earnings | |||||||||||
Reserve for special depreciation | Reserve for deferral of capital gain on property | Special reserves | Retained earnings brought forward | ||||||||||
Balance at the beginning of current period | ¥ 174,762 | ¥ 306,288 | ¥ 22,114 | ¥ 341 | ¥ 3,693 | ¥1,249,928 | ¥ 692,960 | ¥ (1,011,418) | ¥ 1,438,668 | ¥ 7,780 | ¥ (679) | ¥ 1,553 | ¥1,447,322 |
Cumulative effects of changes in accounting policies | (2,951) | (2,951) | (2,951) | ||||||||||
Restated balance | ¥ 174,762 | ¥ 306,288 | ¥ 22,114 | ¥ 341 | ¥ 3,693 | ¥1,249,928 | ¥ 690,009 | ¥ (1,011,418) | ¥ 1,435,717 | ¥ 7,780 | ¥ (679) | ¥ 1,553 | ¥1,444,371 |
Changes of items during the period | |||||||||||||
Transfer to reserve for special depreciation | - | - | |||||||||||
Reversal of reserve for special depreciation | (174) | 174 | - | - | |||||||||
Transfer to reserve for deferral of capital gain on property | 157 | (157) | - | - | |||||||||
Reversal of reserve for deferral of capital gain on property | (123) | 123 | - | - | |||||||||
Dividends paid | (174,711) | (174,711) | (174,711) | ||||||||||
Net income | 211,963 | 211,963 | 211,963 | ||||||||||
Purchase of treasury stock | (39) | (39) | (39) | ||||||||||
Disposal of treasury stock | (42) | 1,047 | 1,005 | 1,005 | |||||||||
Net changes of items other than shareholders' equity | - | 1,071 | 919 | (422) | 1,568 | ||||||||
Total changes of items during the period | - | - | - | (174) | 34 | - | 37,350 | 1,008 | 38,218 | 1,071 | 919 | (422) | 39,786 |
Balance at the end of current period | ¥ 174,762 | ¥ 306,288 | ¥ 22,114 | ¥ 167 | ¥ 3,727 | ¥1,249,928 | ¥ 727,359 | ¥ (1,010,410) | ¥ 1,473,935 | ¥ 8,851 | ¥ 240 | ¥ 1,131 | ¥1,484,157 |
CANON INC. |
NON-CONSOLIDATED |
14. NOTE FOR GOING CONCERN ASSUMPTION |
( Parent company only ) |
Not applicable. |
(Current Titles are Shown in the Parentheses) Effective Date: March 30, 2017
Directors
Executive Vice President & CTO Shigeyuki Matsumoto (Senior Managing Director&CTO,
Group Executive of R&D Headquarters)
(Current Titles are Shown in the Parentheses)
Executive Officers (1/2)
Executive Vice President Hideki Ozawa (Senior Managing ExecutiveOfficer,
President of Canon (CHINA) Co. Ltd)
Senior Managing Executive Officer Yasuhiro Tani (Managing Executive Officer,Group
Executive of Digital System Technology
Development Headquarters)
Senior Managing Executive Officer Naoji Otsuka (Managing Executive Officer,Chief
Executive of Inkjet Products Operations)
Senior Managing Executive Officer Toshio Takiguchi (New appointment, President ofToshiba
Medical Systems Corporation)
Managing Executive Officer Shunsuke Inoue (Executive Officer, Group Executiveof
Device Technology Development
Headquarters)
Managing Executive Officer Takayuki Miyamoto (Executive Officer, Chief Executiveof
Peripheral Products Operations)
Managing Executive Officer Katsumi Iijima (Executive Officer, Group Executiveof
Information & Communication Systems
Headquarters)
Managing Executive Officer Hiroyuki Takeishi (Executive Officer, Chief Executiveof
Optical Products Operations)
This document contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management's views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project" or "should" and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon's targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this document. A detailed description of these and other risk factors is included in Canon's annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements.
January 31, 2017
CONSOLIDATED RESULTS FOR THE FOURTH QUARTER AND THE FISCAL YEAR ENDED DECEMBER 31, 2016 | |||
SUPPLEMENTARY REPORT | |||
TABLE OF CONTENTS | |||
1. | SALES BY GEOGRAPHIC AREA AND BUSINESS UNIT (2016)..................... | PAGE S 1 | |
2. | SALES BY GEOGRAPHIC AREA AND BUSINESS UNIT (2017/Projection)... | S | 2 |
3. | SEGMENT INFORMATION BY BUSINESS UNIT (2016).................................. | S | 3 |
4. | OTHER INCOME / DEDUCTIONS (2016)............................................................ | S | 3 |
5. | SEGMENT INFORMATION BY BUSINESS UNIT (2017/Projection)................ | S | 4 |
6. | OTHER INCOME / DEDUCTIONS (2017/Projection).......................................... | S | 4 |
7. | BREAKDOWN OF PRODUCT SALES WITHIN BUSINESS UNIT................... | S | 5 |
8. | SALES GROWTH IN LOCAL CURRENCY......................................................... | S | 5 |
9. | PROFITABILITY .................................................................................................... | S | 6 |
10. | IMPACT OF FOREIGN EXCHANGE RATES...................................................... | S | 6 |
11. | STATEMENTS OF CASH FLOWS........................................................................ | S | 6 |
12. | R&D EXPENDITURE ............................................................................................. | S | 7 |
13. | INCREASE IN PP&E & DEPRECIATION AND AMORTIZATION................... | S | 7 |
14. | INVENTORIES ....................................................................................................... | S | 7 |
15. | DEBT RATIO........................................................................................................... | S | 7 |
16. | OVERSEAS PRODUCTION RATIO...................................................................... | S | 7 |
17. | NUMBER OF EMPLOYEES................................................................................... | S | 7 |
2017 (P) | 2016 | |
Year | Year | |
Japan | 922,000 | 706,979 |
Overseas | 3,078,000 | 2,694,508 |
Americas | 1,067,800 | 963,544 |
Europe | 985,600 | 913,523 |
Asia and Oceania | 1,024,600 | 817,441 |
Total | 4,000,000 | 3,401,487 |
Change year over year |
Year |
+30.4% +14.2% |
+10.8% +7.9% +25.3% |
+17.6% |
(P)=Projection
2016 | 2015 | Change year over year | ||||
4th quarter | Year | 4th quarter | Year | 4th quarter | Year | |
Office | 484,656 | 1,804,862 | 533,366 | 2,108,246 | -9.1% | -14.4% |
External customers | ||||||
Intersegment | 1,194 | 2,957 | 641 | 2,570 | +86.3% | +15.1% |
Total sales | 485,850 | 1,807,819 | 534,007 | 2,110,816 | -9.0% | -14.4% |
Operating profit | 48,625 | 169,486 | 72,243 | 290,586 | -32.7% | -41.7% |
% of sales | 10.0% | 9.4% | 13.5% | 13.8% | - | - |
Imaging System | 324,455 | 1,094,291 | 365,944 | 1,262,667 | -11.3% | -13.3% |
External customers | ||||||
Intersegment | 287 | 998 | 239 | 1,168 | +20.1% | -14.6% |
Total sales | 324,742 | 1,095,289 | 366,183 | 1,263,835 | -11.3% | -13.3% |
Operating profit | 51,702 | 144,413 | 62,126 | 183,439 | -16.8% | -21.3% |
% of sales | 15.9% | 13.2% | 17.0% | 14.5% | - | - |
Industry and Others | 156,062 | 502,334 | 143,328 | 429,358 | +8.9% | +17.0% |
External customers | ||||||
Intersegment | 19,572 | 82,326 | 22,883 | 95,293 | -14.5% | -13.6% |
Total sales | 175,634 | 584,660 | 166,211 | 524,651 | +5.7% | +11.4% |
Operating profit | 3,162 | 7,448 | (2,784) | (13,079) | - | - |
% of sales | 1.8% | 1.3% | -1.7% | -2.5% | - | - |
Corporate and Eliminations | - | - | - | - | - | - |
External customers | ||||||
Intersegment | (21,053) | (86,281) | (23,763) | (99,031) | - | - |
Total sales | (21,053) | (86,281) | (23,763) | (99,031) | - | - |
Operating profit | (23,321) | (92,481) | (24,543) | (105,736) | - | - |
Consolidated | 965,173 | 3,401,487 | 1,042,638 | 3,800,271 | -7.4% | -10.5% |
External customers | ||||||
Intersegment | - | - | - | - | - | - |
Total sales | 965,173 | 3,401,487 | 1,042,638 | 3,800,271 | -7.4% | -100.5% |
Operating profit | 80,168 | 228,866 | 107,042 | 355,210 | -25.1% | -35.6% |
% of sales | 8.3% | 6.7% | 10.3% | 9.3% | - | - |
4. OTHER INCOME / DEDUCTIONS (2016) (Millions ofyen)
2016 | 2015 | |||
4th quarter | Year | 4th quarter | Year | |
Interest and dividend, net | 959 | 3,701 | 1,123 | 4,917 |
Forex gain (loss) | (12,620) | (2) | (1,009) | (22,149) |
Equity earnings of affiliated companies | 217 | 890 | 110 | 447 |
Other, net | 3,911 | 11,196 | 1,695 | 9,013 |
Total | (7,533) | 15,785 | 1,919 | (7,772) |
Change year over year | |
4th quarter | Year |
(164) | (1,216) |
(11,611) | +22,147 |
+107 | +443 |
+2,216 | +2,183 |
(9,452) | +23,557 |
2017 (P) | 2016 | Change year over year | |
Year | Year | Year | |
Office | 1,825,000 | 1,804,862 | +1.1% |
External customers | |||
Intersegment | 3,900 | 2,957 | +31.9% |
Total sales | 1,828,900 | 1,807,819 | +1.2% |
Operating profit | 177,500 | 169,486 | +4.7% |
% of sales | 9.7% | 9.4% | - |
Imaging System | 1,086,800 | 1,094,291 | -0.7% |
External customers | |||
Intersegment | 5,200 | 998 | +421.0% |
Total sales | 1,092,000 | 1,095,289 | -0.3% |
Operating profit | 154,000 | 144,413 | +6.6% |
% of sales | 14.1% | 13.2% | - |
Industry and Others | 1,088,200 | 502,334 | +116.6% |
External customers | |||
Intersegment | 69,800 | 82,326 | -15.2% |
Total sales | 1,158,000 | 584,660 | +98.1% |
Operating profit | 20,800 | 7,448 | +179.3% |
% of sales | 1.8% | 1.3% | - |
Corporate and Eliminations | - | - | - |
External customers | |||
Intersegment | (78,900) | (86,281) | - |
Total sales | (78,900) | (86,281) | - |
Operating profit | (97,300) | (92,481) | - |
Consolidated | 4,000,000 | 3,401,487 | +17.6% |
External customers | |||
Intersegment | - | - | - |
Total sales | 4,,000,,000 | 3,,401,,487 | +17..6% |
Operating profit | 255,000 | 228,866 | +11.4% |
% of sales | 6.4% | 6.7% | - |
(P)=Projection
6. OTHER INCOME / DEDUCTIONS (2017/Projection) (Millions ofyen)
2017 (P) | 2016 | |
Year | Year | |
Interest and dividend, net | (500) | 3,701 |
Forex gain (loss) | (10,200) | (2) |
Equity earnings of affiliated companies | 1,300 | 890 |
Other, net | 14,400 | 11,196 |
Total | 5,000 | 15,785 |
Change year over year |
Year |
(4,201) (10,198) +410 +3,204 |
(10,785) |
(P)=Projection
2017 (P) | 2016 | 2015 | |||
Year | 4th quarter | Year | 4th quarter | Year | |
Office | 16% | 15% | 16% | 16% | 16% |
Monochrome copiers | |||||
Color copiers | 22% | 22% | 21% | 21% | 20% |
Printers | 36% | 38% | 37% | 38% | 41% |
Others | 26% | 25% | 26% | 25% | 23% |
Imaging System | 60% | 61% | 61% | 60% | 62% |
Cameras | |||||
Inkjet printers | 31% | 31% | 30% | 31% | 29% |
Others | 9% | 8% | 9% | 9% | 9% |
Industry and Others | 16% | 20% | 21% | 26% | 24% |
Lithography equipment | |||||
Others | 84% | 80% | 79% | 74% | 76% |
(P)=Projection
8. SALES GROWTH IN LOCAL CURRENCY (Year over year)
2017 (P) | 2016 | |||
Year | 4th quarter | Year | ||
Office Japan Overseas | - - | +0.5% -4.2% | -0.1% -9.2% | |
Total | +0.7% | -3.2% | -7.6% | |
Imaging System Japan Overseas | - - | -5.7% -1.5% | -9.8% -3.1% | |
Total | -0.5%% | -2.2%% | -4.1%% | |
Industry and Others Japan Overseas | - - | +12.2% +12.9% | +9.2% +27.6% | |
Total | +97.2% | +9.0% | +15.4% | |
Total Japan Overseas Americas Europe Asia and Oceania | +30.4% +13.6% +9.3% +8.0% +25.1% | +0.7% -1.1% -4.6% -2.5% +11.2% | -1.0% -3.6% -5.9% -5.5% +4.3% | |
Total | +17.1% | -0.7% | -3.1% |
(P)=Projection
2017 (P) | 2016 | 2015 | |
Year | Year | Year | |
ROE *1 | 6.1% | 5.2% | 7.4% |
ROA *2 | 3.3% | 3.1% | 5.0% |
(P)=Projection
*1 Return on Equity ; Based on Net Income attributable to Canon Inc. and Total Canon Inc. Shareholders' Equity
*2 Return on Assets ; Based on Net Income attributable to Canon Inc.
2017 (P) | 2016 | 2015 | |||
Year | 4th quarter | Year | 4th quarter | Year | |
Net cash provided by operating activities | 500,000 | 156,920 | 500,283 | 143,892 | 474,724 |
Net cash used in investing activities | (250,000) | (12,216) | (837,125) | (89,154) | (453,619) |
Free cash flow | 250,000 | 144,704 | (336,842) | 54,738 | 21,105 |
Net cash provided by (used in) financing activities | (267,200) | (80,647) | 355,692 | (244) | (210,202) |
Effect of exchange rate changes on cash and cash equivalents | (13,000) | 31,656 | (22,270) | (2,128) | (21,870) |
Net change in cash and cash equivalents | (30,200) | 95,713 | (3,420) | 52,366 | (210,967) |
Cash and cash equivalents at end of period | 600,000 | 630,193 | 630,193 | 633,613 | 633,613 |
(P)=Projection
2017 (P) | 2016 | 2015 | |
Year | Year | Year | |
Office | - | 94,440 | 105,298 |
Imaging System | - | 91,752 | 90,236 |
Industry and Others | - | 67,887 | 66,585 |
Corporate and Eliminations | - | 48,297 | 66,381 |
Total | 345,000 | 302,376 | 328,500 |
% of sales | 8.6% | 8.9% | 8.6% |
(P)=Projection
2016 | 2015 | Difference | |
Dec.31 | Dec.31 | ||
Japan Overseas | 72,913 124,760 | 68,325 121,246 | +4,588 +3,514 |
Total | 197,673 | 189,571 | +8,102 |
* The effect of newly consolidated TMSC is included in "Industry and Others," and appears in both fiscal 2016 results and fiscal 2017 projections.
Canon Inc. published this content on 31 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 January 2017 06:14:07 UTC.
Original documenthttp://www.canon.com/ir/results/2016/rslt2016e.pdf
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