July 27, 2017
CONSOLIDATED RESULTS FOR THE SECOND QUARTER(Millions of yen, thousands of U.S. dollars, except per share amounts) Actual
Three months ended
Three months ended
Change(%)
Three months ended
June 30, 2017 June 30, 2016 June 30, 2017
Net sales | ¥ | 992,473 | ¥ | 860,246 | + | 15.4 | $ 8,861,366 |
Operating profit | 96,319 | 68,596 | + | 40.4 | 859,991 | ||
Income before income taxes | 99,556 | 80,992 | + | 22.9 | 888,893 | ||
Net income attributable |
to Canon Inc.
¥ 69,180 ¥ 53,448 + 29.4
$ 617,679
Net income attributable to Canon Inc. shareholders per share:
- Basic | ¥ | 63.53 ¥ | 48.94 | + 29.8 | $ 0.57 |
- Diluted | 63.53 | 48.94 | + 29.8 | 0.57 |
Six months ended | Six months ended | Change(%) | Six months ended | Year ending December 31, | Change(%) | ||||||
June 30, 2017 June 30, 2016 June 30, 2017 2017 | |||||||||||
Net sales | ¥ | 1,965,234 | ¥ | 1,657,476 | + | 18.6 | $ 17,546,732 | ¥ | 4,050,000 | + | 19.1 |
Operating profit | 171,984 | 108,683 | + | 58.2 | 1,535,571 | 330,000 | + | 44.2 | |||
Income before income taxes Net income attributable | 177,566 | 126,753 | + | 40.1 | 1,585,411 | 340,000 | + | 39.0 |
(Millions of yen, thousands of U.S. dollars, except per share amounts) Actual Projected
to Canon Inc.
¥ 124,269 ¥ 81,439 + 52.6
$ 1,109,545 ¥ 220,000 + 46.0
Net income attributable to Canon Inc. shareholders per share:
- Basic | ¥ | 113.98 | ¥ | 74.57 | + | 52.8 | $ 1.02 | ¥ | 202.68 | + | 46.9 |
- Diluted | 113.98 | 74.57 | + | 52.8 | 1.02 | - | - |
As of
As of
Actual
Change(%) As of
June 30, 2017 December 31, 2016 June 30, 2017
Total assets | ¥ 5,209,750 ¥ 5,138,529 + 1.4 | $ 46,515,625 |
Canon Inc. shareholders' equity | ¥ 2,775,142 ¥ 2,783,129 - 0.3 | $ 24,778,054 |
Notes: 1. Canon's consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.
U.S. dollar amounts are translated from yen at the rate of JPY112=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of June 30, 2017, 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 2017 Second Quarter in ReviewLooking back at the global economy in the second quarter of 2017, the U.S. economy continued to grow steadily as employment conditions and corporate earnings continued to improve. In Europe, the economy continued to recover moderately, centered on Germany and the U.K. The Chinese economy rallied due to public investments, and the economies of emerging countries realized moderate growth. In Japan, corporate earnings improved and consumer spending showed signs of recovery. As a result, the global economy overall continued to realize moderate growth.
As for the markets in which Canon operates amid these conditions, demand for office multifunction devices (MFDs) remained at around the same level as the previous year, while demand for laser printers continued to recover in emerging countries, centered on China. Demand for cameras shrank moderately while demand for inkjet printers remained at the same level as the previous year. Additionally, there was solid demand for medical equipment, mainly in developed countries. Within the Industry and Others sector, demand for semiconductor lithography equipment and manufacturing equipment for organic LED (OLED) displays enjoyed strong growth.
The average values of the yen during the second quarter and the first half of the year were ¥111.12 and
¥112.27 against the U.S. dollar, respectively, year-on-year depreciations of approximately ¥3 and ¥1, and
¥122.36 and ¥121.72 against the euro, respectively, year-on-year at the same level for the second quarter and a year-on-year appreciation of approximately ¥3 for the first half of the year.
During the second quarter, office MFDs enjoyed solid demand, mainly for color models. The total sales volume of laser printers increased compared with the same period of the previous year amid recovering demand in emerging countries, supported by the increased sales of new models. Although total unit sales of interchangeable-lens digital cameras and compact cameras decreased compared with the same period of the previous year amid the shrinking market, sales of compact-system cameras increased. Looking at inkjet printers, sales volume remained at approximately the same level as the previous year, thanks to such factors as increased sales of refillable ink tank models for emerging countries and new models launched in the previous year. Additionally, sales of semiconductor lithography equipment and manufacturing equipment for OLED displays exceeded those of the previous year, thanks to favorable market conditions. Under these conditions, along with the impact of acquiring Toshiba Medical Systems Corporation (TMSC), second-quarter net sales increased by 15.4% year on year to ¥992.5 billion. Net sales for the first half of the year increased by 18.6% year on year to ¥1,965.2 billion. Although the gross profit ratio dropped by 0.4 points to 49.9% due to the effect of the product mix, gross profit increased by 14.6% year on year to ¥495.6 billion, thanks to such factors as the increase in sales and continuous cost down efforts. Operating expenses increased by 9.7% year on year to ¥399.2 billion mainly due to the impact of acquiring TMSC. As a result, second-quarter operating profit increased by 40.4% to ¥96.3 billion and other income (deductions) decreased by ¥9.2 billion due to foreign currency exchange losses, while income before income taxes increased by 22.9% year on year to ¥99.6 billion and net income attributable to Canon Inc. increased by 29.4% to ¥69.2 billion. Operating profit for the first half of the year increased by 58.2% to ¥172.0 billion while income before income taxes increased by 40.1% to ¥177.6 billion and first-half net income attributable to Canon Inc. increased by 52.6% to ¥124.3 billion.
Basic net income attributable to Canon Inc. shareholders per share was ¥63.53 for the second quarter, a year-on-year increase of ¥14.59, and ¥113.98 for the first half, a year-on-year increase of ¥39.41.
Results by SegmentLooking at Canon's second-quarter performance by business unit, beginning with the Office Business Unit, unit sales of office MFDs increased from the same period of the previous year, supported by steady sales of newly launched small-office/home-office color A3 (12"x18") imageRUNNER ADVANCE C3500-series models and A3 (12"x18") imageRUNNER ADVANCE C5500-series models, launched in the previous year. Among high-speed continuous-feed printers, sales of the Océ-produced VarioPrint i300, a high-speed sheet-fed color inkjet press, increased year on year. As for laser printers, sales of both hardware and consumables increased from the same period of the previous year, supported by steady sales of new models which expand the product lineup. These factors resulted in total sales for the business unit of ¥470.7 billion, a year-on-year increase of 3.1%, while operating profit totaled ¥55.9 billion, a year-on-year increase of 17.4%. Sales for the combined first six months of the year totaled ¥928.4 billion, a year-on-year increase of 1.9%, while operating profit totaled ¥111.3 billion, a year-on-year increase of 20.6%.
Within the Imaging System Business Unit, although sales volume of interchangeable-lens digital cameras declined compared with the previous year, owing to the shrinking market, unit sales of compact-system cameras, including the newly launched EOS M6, increased from the same period of previous year, allowing Canon to maintain the top share in major countries in Europe, the U.S. and Japan. As for digital compact cameras, while sales volume declined amid the shrinking market, sales of high-value-added models enjoyed solid demand, supported by healthy demand for the newly launched G9 X Mark II, part of the high-image-quality PowerShot G-series lineup. As for inkjet printers, newly designed home-use models launched in the previous year and refillable ink tank models that target emerging countries enjoyed strong demand, resulting in unit sales remaining at approximately the same level as the corresponding period of the previous year. As a result, sales for the business unit decreased by 1.7% to ¥282.7 billion year on year, while operating profit totaled ¥48.5 billion, a year-on-year increase of 12.2%. Sales for the combined first six months of the year totaled ¥524.7 billion, a year-on-year increase of 0.5%, while operating profit totaled
¥77.7 billion, a year-on-year increase of 23.7%.
Within the Medical System Business Unit, a newly disclosed business unit as of this quarter, TMSC's computed tomography products maintained the top share in Japanese market and sales of such diagnostic imaging unit products as diagnostic ultrasound systems and magnetic resonance imaging remained firm. As a result, sales for the business unit totaled ¥88.6 billion year on year, while operating profit totaled ¥0.2 billion. Sales for the combined first six months of the year totaled ¥220.4 billion while operating profit totaled ¥10.1 billion.
In the Industry and Others Business Unit, unit sales of semiconductor lithography equipment increased from the same period of the previous year as a result of increasing demand for memory devices used in data centers. Additionally, sales of FPD lithography equipment and manufacturing equipment for OLED panel devices increased in response to growing demand for high-definition OLED displays used in mobile devices. As for network cameras, sales of network cameras increased considerably compared with the previous year thanks to efforts to strengthen the product lineup. Consequently, sales for the business unit increased by 25.0% year on year to ¥172.5 billion, while operating profit grew by ¥12.7 billion from the previous year to ¥13.2 billion. Sales for the combined first six months of the year totaled ¥334.9 billion, a year-on-year increase of 24.9%, while operating profit grew by ¥22.0 billion from the previous year to
¥21.9 billion.
Cash FlowDuring the first half of 2017, cash flow from operating activities totaled ¥309.1 billion, an increase of ¥67.9 billion compared with the previous year, mainly owing to improvements in profitability. Cash flow from investing activities decreased by ¥668.3 billion year on year to ¥107.8 billion due to the payment made in the previous year for the right to acquire all of the shares of TMSC. Accordingly, free cash flow totaled
¥201.3 billion, an increase of ¥736.2 billion compared with the corresponding year-ago period.
Cash flow from financing activities recorded an outlay of ¥135.1 billion, mainly owing to the dividend payout and the repurchasing of treasury stock.
Owing to these factors, as well as the impact of foreign currency translation adjustments, cash and cash equivalents increased by ¥63.6 billion to ¥693.8 billion from the end of the previous year.
OutlookAs for the outlook in the third quarter onward, the U.S. economy is expected to continue recovering as employment conditions and consumer spending steadily improve. The European economy is expected to recover slowly due to increasing uncertainty surrounding the U.K.'s decision to leave the EU. Looking at China, the economy is expected to stabilize through changes in fiscal policy, while emerging economies, such as those of Southeast Asia, Russia and Brazil, are expected to recover. With regard to the Japanese economy, the outlook indicates a trend of gradual recovery supported by improved employment conditions and corporate earnings. Overall, the global economy is expected to recover more firmly than the previous year, despite such concerns as increasing geopolitical risks.
In the businesses in which Canon is involved, for office MFDs, demand for color models is expected to grow moderately, despite the contraction of the market for monochrome models. Looking at the laser printer market, demand for printers is expected to improve as the economy recovers. For interchangeable-lens digital cameras, although demand continues to decrease primarily in developed countries, the pace of decline is gradually decelerating. Projections for digital compact cameras, despite solid demand for high-value-added models, indicate continued market contraction, centered mainly on low-priced models. With regard to inkjet printers, the trend of decreasing demand is expected to gradually bottom out. As for the medical equipment market, demand is expected to remain firm in response to replacement demand for medical equipment in developed countries and increasing medical needs associated with population growth in emerging countries.
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 active capital investment by panel manufacturers, which is expected to increase demand. The network camera market is also expected to grow in response to the increasing use of network cameras for diverse applications in such area as marketing support in addition to crime prevention and disaster monitoring.
With regard to currency exchange rates for the third quarter onward, on which Canon's performance outlook is based, Canon anticipates exchange rates of ¥112 to the U.S. dollar and ¥125 to the euro, representing depreciations of approximately ¥4 against the U.S. dollar and approximately ¥3 against the euro as the annual average rates of the previous year.
Upon taking into consideration the impact of acquiring TMSC and the current economic forecast, Canon projects full-year consolidated net sales in 2017 of ¥4,050.0 billion, a year-on-year increase of 19.1%; operating profit of ¥330.0 billion, a year-on-year increase of 44.2%; income before income taxes of ¥340.0 billion, a year-on-year increase of 39.0%; and net income attributable to Canon Inc. of ¥220.0 billion, a year-on-year increase of 46.0%.
Consolidated Outlook Fiscal year
Millions of yen
Year ending
December 31, 2017
Change
Year ended
December 31, 2016 Change(%)
Previous Outlook (A) Revised Outlook (B) (B - A) Results (C) (B - C) / C
Basic Policy Regarding Profit DistributionNet sales
4,020,000
4,050,000
30,000
3,401,487
+19.1%
Operating profit
270,000
330,000
60,000
228,866
+44.2%
Income before income taxes
280,000
340,000
60,000
244,651
+39.0%
Net income attributable to Canon Inc.
180,000
220,000
40,000
150,650
+46.0%
Canon 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.
Canon Inc. plans to distribute an interim dividend of ¥75.00 per share for the fiscal year 2017, half the amount of the annual dividend paid out in fiscal 2016, to provide a stable return to shareholders. The year-end dividend, however, has yet to be decided.
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.
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
II. Financial Statements
1. CONSOLIDATED BALANCE SHEETS
Millions of yen
As of
June 30, 2017
As of
December 31, 2016
Change
ASSETS
Current assets:
Cash and cash equivalents
693,826
630,193
63,633
Short-term investments
17,529
3,206
14,323
Trade receivables, net
584,148
641,458
(57,310)
Inventories
596,837
560,736
36,101
Prepaid expenses and other current assets
268,894
264,155
4,739
Total current assets
2,161,234
2,099,748
61,486
Noncurrent receivables
34,105
29,297
4,808
Investments
70,612
73,680
(3,068)
Property, plant and equipment, net
1,160,042
1,194,976
(34,934)
Intangible assets, net
434,547
446,268
(11,721)
Goodwill
954,715
936,424
18,291
Other assets
394,495
358,136
36,359
Total assets
5,209,750
5,138,529
71,221
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans and current portion of long-term debt
36,906
1,850
35,056
Trade payables
393,075
372,269
20,806
Accrued income taxes
51,909
30,514
21,395
Accrued expenses
282,592
304,901
(22,309)
Other current liabilities
283,635
273,835
9,800
Total current liabilities
1,048,117
983,369
64,748
Long-term debt, excluding current installments
615,984
611,289
4,695
Accrued pension and severance cost
415,549
407,200
8,349
Other noncurrent liabilities
140,313
142,049
(1,736)
Total liabilities
2,219,963
2,143,907
76,056
Equity:
Canon Inc. shareholders' equity:
Common stock
174,762
174,762
-
Additional paid-in capital
401,381
401,385
(4)
Legal reserve
66,776
66,558
218
Retained earnings
3,392,745
3,350,728
42,017
Accumulated other comprehensive income (loss)
(202,064)
(199,881)
(2,183)
Treasury stock, at cost
(1,058,458)
(1,010,423)
(48,035)
Total Canon Inc. shareholders' equity
2,775,142
2,783,129
(7,987)
Noncontrolling interests
214,645
211,493
3,152
Total equity
2,989,787
2,994,622
(4,835)
Total liabilities and equity
5,209,750
5,138,529
71,221
Millions of yen
As of
June 30, 2017
As of
December 31, 2016
Notes:
1. Allowance for doubtful receivables
11,584
11,075
2. Accumulated depreciation
2,618,029
2,578,342
3. Accumulated other comprehensive income (loss):
Foreign currency translation adjustments
(17,467)
(13,960)
Net unrealized gains and losses on securities
14,631
15,251
Net gains and losses on derivative instruments
(1,053)
(2,742)
Pension liability adjustments
(198,175)
(198,430)
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
2. CONSOLIDATED STATEMENTS OF INCOME AND
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Consolidated statements of income
Results for the second quarter
Millions of yen
Three months Three months
ended ended
June 30, 2017 June 30, 2016
Change(%)
Net sales
992,473
860,246
+
15.4
Cost of sales
496,921
427,878
Gross profit
495,552
432,368
+
14.6
Operating expenses:
Selling, general and administrative expenses
318,741
287,208
Research and development expenses
80,492
76,564
399,233
363,772
Operating profit
96,319
68,596
+
40.4
Other income (deductions):
Interest and dividend income
1,686
1,425
Interest expense
(105)
(341)
Other, net
1,656
11,312
3,237
12,396
Income before income taxes
99,556
80,992
+
22.9
Income taxes
27,739
24,912
Consolidated net income
71,817
56,080
Less: Net income attributable to noncontrolling interests
2,637
2,632
Net income attributable to Canon Inc.
69,180
53,448
+
29.4
Results for the first half
Millions of yen
Six months Six months
ended ended
June 30, 2017 June 30, 2016
Change(%)
Net sales
1,965,234
1,657,476
+
18.6
Cost of sales
1,001,338
820,362
Gross profit
963,896
837,114
+
15.1
Operating expenses:
Selling, general and administrative expenses
630,159
572,997
Research and development expenses
161,753
155,434
791,912
728,431
Operating profit
171,984
108,683
+
58.2
Other income (deductions):
Interest and dividend income
2,965
2,532
Interest expense
(353)
(521)
Other, net
2,970
16,059
5,582
18,070
Income before income taxes
177,566
126,753
+
40.1
Income taxes
48,048
41,457
Consolidated net income
129,518
85,296
Less: Net income attributable to noncontrolling interests
5,249
3,857
Net income attributable to Canon Inc.
124,269
81,439
+
52.6
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
Consolidated statements of comprehensive income
Results for the second quarter
Millions of yen
Three months Three
ended e
June 30, 2017 June
months nded
30, 2016
Change(%)
Consolidated net income
71,817
56,080
+
28.1
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments
41,490
(178,795)
Net unrealized gains and losses on securities
(931)
(1,492)
Net gains and losses on derivative instruments
(1,166)
860
Pension liability adjustments
(511)
41
38,882
(179,386)
Comprehensive income (loss)
110,699
(123,306)
-
Less: Comprehensive income (loss) attributable to
noncontrolling interests
4,779
(3,923)
Comprehensive income (loss) attributable to Canon Inc.
105,920
(119,383)
-
Results for the first half
Millions of yen
Six months Six
ended e
June 30, 2017 June
months nded
30, 2016
Change(%)
Consolidated net income
129,518
85,296
+
51.8
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments
(2,604)
(270,258)
Net unrealized gains and losses on securities
(591)
(6,334)
Net gains and losses on derivative instruments
1,707
2,372
Pension liability adjustments
20
2,853
(1,468)
(271,367)
Comprehensive income (loss)
128,050
(186,071)
-
Less: Comprehensive income (loss) attributable to
noncontrolling interests
5,964
(4,735)
Comprehensive income (loss) attributable to Canon Inc.
122,086
(181,336)
-
CANON INC. AND SUBSIDIARIES
DETAILS OF SALES
Results for the second quarter Millions of yen
CONSOLIDATED
Sales by business unit Three monthsended
June 30, 2017
Three months ended
June 30, 2016 Change(%)
Office | 470,657 | 456,396 + 3.1 |
Imaging System | 282,688 | 287,543 - 1.7 |
Medical System | 88,617 | - - |
Industry and Others | 172,483 | 137,971 + 25.0 |
Eliminations | (21,972) | (21,664) - |
Total | 992,473 | 860,246 + 15.4 |
Millions of yen
Sales by region Three months ended
June 30, 2017
Three months ended
June 30, 2016 Change(%)
Japan | 210,897 | 168,535 | + | 25.1 |
Overseas: | ||||
Americas | 274,273 | 247,072 | + | 11.0 |
Europe | 253,983 | 236,774 | + | 7.3 |
Asia and Oceania | 253,320 | 207,865 | + 21.9 | |
781,576 | 691,711 | + 13.0 |
Total 992,473 860,246 + 15.4
*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Net sales for the three months ended June 30, 2016 were not restated since they were not material.
Results for the first half Millions of yen
Sales by business unit Six monthsended
June 30, 2017
Six months ended
June 30, 2016 Change(%)
Office | 928,402 | 910,748 + 1.9 |
Imaging System | 524,747 | 522,359 + 0.5 |
Medical System | 220,372 | - - |
Industry and Others | 334,943 | 268,142 + 24.9 |
Eliminations | (43,230) | (43,773) - |
Total | 1,965,234 | 1,657,476 + 18.6 |
Millions of yen
Sales by region Six months ended
June 30, 2017
Six months ended
June 30, 2016 Change(%)
Japan | 441,464 | 337,076 | + | 31.0 |
Overseas: | ||||
Americas | 530,146 | 471,320 | + | 12.5 |
Europe | 495,555 | 456,659 | + | 8.5 |
Asia and Oceania | 498,069 | 392,421 | + 26.9 | |
1,523,770 | 1,320,400 | + 15.4 |
Total 1,965,234 1,657,476 + 18.6
*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Net sales for the six months ended June 30, 2016 were not restated since they were not material.
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
Medical System Business Unit :
Digital radiography systems / Diagnostic x-ray systems / Computed tomography / Magnetic resonance imaging / Diagnostic ultrasound systems / Clinical chemistry analyzers / Ophthalmic equipment
Industry and Others Business Unit :
Semiconductor lithography equipment / FPD (Flat panel display) lithography 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 | |||
4. CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Millions of yen | |||
Six months ended June 30, 2017 | Six months ended June 30, 2016 | ||
Cash flows from operating activities: | |||
Consolidated net income | 129,518 | 85,296 | |
Adjustments to reconcile consolidated net income to net cash | |||
provided by operating activities: | |||
Depreciation and amortization | 126,615 | 122,372 | |
Loss on disposal of fixed assets | 1,670 | 3,163 | |
Deferred income taxes | (8,150) | (2,982) | |
Decrease in trade receivables | 58,105 | 67,738 | |
Increase in inventories | (36,543) | (31,050) | |
Increase in trade payables | 20,974 | 26,305 | |
Increase (decrease) in accrued income taxes | 21,164 | (12,178) | |
Decrease in accrued expenses | (22,227) | (24,148) | |
Increase in accrued (prepaid) pension and severance cost | 1,189 | 3,824 | |
Other, net | 16,791 | 2,867 | |
Net cash provided by operating activities | 309,106 | 241,207 | |
Cash flows from investing activities: | |||
Purchases of fixed assets | (94,835) | (100,700) | |
Proceeds from sale of fixed assets | 3,105 | 2,095 | |
Purchases of available-for-sale securities | - | (8) | |
Proceeds from sale and maturity of available-for-sale securities | 558 | 407 | |
Increase in time deposits, net | (13,959) | (4,057) | |
Acquisitions of businesses, net of cash acquired | (5,598) | (9,226) | |
Purchases of other investments | (250) | (665,676) | |
Other, net | 3,141 | 1,073 | |
Net cash used in investing activities | (107,838) | (776,092) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 1,158 | 238 | |
Repayments of long-term debt | (2,819) | (473) | |
Increase in short-term loans, net | 2,278 | 610,000 | |
Purchases of noncontrolling interests | - | (4,993) | |
Dividends paid | (81,905) | (81,905) | |
Repurchases and reissuance of treasury stock, net | (50,012) | (6) | |
Other, net | (3,815) | (2,978) | |
Net cash provided by (used in) financing activities | (135,115) | 519,883 | |
Effect of exchange rate changes on cash and cash equivalents | (2,520) | (49,431) | |
Net change in cash and cash equivalents | 63,633 | (64,433) | |
Cash and cash equivalents at beginning of period | 630,193 | 633,613 | |
Cash and cash equivalents at end of period | 693,826 | 569,180 |
CANON INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED | ||||||
5. NOTE FOR GOING CONCERN ASSUMPTION | ||||||
Not applicable. | ||||||
6. SEGMENT INFORMATION | ||||||
SEGMENT INFORMATION BY BUSINESS UNIT | ||||||
Results for the second quarter | Millions of yen | |||||
Three months ended Three mo June 30, 2017 June 30, | nths ended 2016 | Change(%) | ||||
Office | ||||||
Net sales: | ||||||
External customers | 470,178 | 455,858 | + | 3.1 | ||
Intersegment | 479 | 538 | - | 11.0 | ||
Total | 470,657 | 456,396 | + | 3.1 | ||
Operating cost and expenses | 414,784 | 408,791 | + | 1.5 | ||
Operating profit | 55,873 | 47,605 | + | 17.4 | ||
Imaging System | ||||||
Net sales: | ||||||
External customers | 282,568 | 287,303 | - | 1.6 | ||
Intersegment | 120 | 240 | - | 50.0 | ||
Total | 282,688 | 287,543 | - | 1.7 | ||
Operating cost and expenses | 234,198 | 244,320 | - | 4.1 | ||
Operating profit | 48,490 | 43,223 | + | 12.2 | ||
Medical System | ||||||
Net sales: | ||||||
External customers | 88,526 | - | - | |||
Intersegment | 91 | - | - | |||
Total | 88,617 | - | - | |||
Operating cost and expenses | 88,445 | - | - | |||
Operating profit | 172 | - | - | |||
Industry and Others | ||||||
Net sales: | ||||||
External customers | 151,201 | 117,085 | + | 29.1 | ||
Intersegment | 21,282 | 20,886 | + | 1.9 | ||
Total | 172,483 | 137,971 | + | 25.0 | ||
Operating cost and expenses | 159,332 | 137,472 | + | 15.9 | ||
Operating profit | 13,151 | 499 | - | |||
Corporate and Eliminations | ||||||
Net sales: | ||||||
External customers | - | - | - | |||
Intersegment | (21,972) | (21,664) | - | |||
Total | (21,972) | (21,664) | - | |||
Operating cost and expenses | (605) | 1,067 | - | |||
Operating profit | (21,367) | (22,731) | - | |||
Consolidated | ||||||
Net sales: | ||||||
External customers | 992,473 | 860,246 | + | 15.4 | ||
Intersegment | - | - | - | |||
Total | 992,473 | 860,246 | + | 15.4 | ||
Operating cost and expenses | 896,154 | 791,650 | + | 13.2 | ||
Operating profit | 96,319 | 68,596 | + | 40.4 | ||
*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Operating results for the three months ended June 30, 2016 were not restated since they were not material. *Operating results pertaining to TMSC, a company acquired in December 2016, are included in "Medical System" for the second quarter of 2017. Amortization costs of identified intangible assets resulting from the purchase price allocation of TMSC are included in "Corporate and Eliminations". |
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
Results for the first half Millions of yen
Six months ended
Six months ended
Change(%)
Office
Net sales:
June 30, 2017
June 30, 2016
External customers | 927,315 | 909,498 | + 2.0 |
Intersegment | 1,087 | 1,250 | - 13.0 |
Total | 928,402 | 910,748 | + 1.9 |
Operating cost and expenses | 817,101 | 818,439 | - 0.2 |
Operating profit | 111,301 | 92,309 | + 20.6 |
Imaging System Net sales: External customers | 524,468 | 521,870 | + 0.5 |
Intersegment | 279 | 489 | - 42.9 |
Total | 524,747 | 522,359 | + 0.5 |
Operating cost and expenses | 447,021 | 459,518 | - 2.7 |
Operating profit | 77,726 | 62,841 | + 23.7 |
Medical System
Net sales:
External customers 220,150 - -
Intersegment 222 - -
Total 220,372 - -
Operating cost and expenses 210,304 - -
Operating profit 10,068 - -
Industry and Others Net sales: External customers | 293,301 | 226,108 | + 29.7 |
Intersegment | 41,642 | 42,034 | - 0.9 |
Total | 334,943 | 268,142 | + 24.9 |
Operating cost and expenses | 313,085 | 268,265 | + 16.7 |
Operating profit | 21,858 | (123) | - |
Corporate and Eliminations
Net sales:
External customers - - -
Intersegment | (43,230) | (43,773) | - |
Total | (43,230) | (43,773) | - |
Operating cost and expenses | 5,739 | 2,571 | - |
Operating profit | (48,969) | (46,344) | - |
Consolidated Net sales: External customers | 1,965,234 | 1,657,476 | + 18.6 |
Intersegment Total | - 1,965,234 | - 1,657,476 | - + 18.6 |
Operating cost and expenses | 1,793,250 | 1,548,793 | + 15.8 |
Operating profit | 171,984 | 108,683 | + 58.2 |
*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Operating results for the six months ended June 30, 2016 were not restated since they were not material.
*Operating results pertaining to TMSC, a company acquired in December 2016, are included in "Medical System" for the first half of 2017. Amortization costs of identified intangible assets resulting from the purchase price allocation of TMSC are included in "Corporate and Eliminations".
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
SIGNIFICANT CHANGES IN CANON INC. SHAREHOLDERS' EQUITY
None.
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
GROUP POSITION
June 30, 2017
December 31, 2016
Change
Subsidiaries
373
367
6
Affiliates
7
9
(2)
Total
380
376
4
Number of Group Companies
Change in Group Entities Subsidiaries
Addition: 8 companies
Removal: 2 companies
Affiliates (Carried at Equity Basis) Removal: 2 companies
Subsidiaries Listed on Domestic Stock Exchange
Tokyo Stock Exchange (1st section): Canon Marketing Japan Inc., Canon Electronics Inc.
SIGNIFICANT ACCOUNTING POLICIES
NOTE FOR NON-GAAP FINANCIAL MEASURES
-
SALES BY GEOGRAPHIC AREA AND BUSINESS UNIT (Millions ofyen)
2017
2016
Change year over year
2nd quarter
1st half
Year (P)
2nd quarter
1st half
Year
2nd quarter
1st half
Year
Japan
95,362
189,416
-
96,434
190,538
378,834
-1.1%
-0.6%
-
Office
Imaging System
41,287
73,898
-
42,252
77,197
179,304
-2.3%
-4.3%
-
Medical System
40,249
110,390
-
-
-
-
-
-
-
Industry and Others
33,999
67,760
-
29,849
69,341
148,841
+13.9%
-2.3%
-
Total
210,897
441,464
879,300
168,535
337,076
706,979
+25.1%
+31.0%
+24.4%
Overseas
374,816
737,899
-
359,424
718,960
1,426,028
+4.3%
+2.6%
-
Office
Imaging System
241,281
450,570
-
245,051
444,673
914,987
-1.5%
+1.3%
-
Medical System
48,277
109,760
-
-
-
-
-
-
-
Industry and Others
117,202
225,541
-
87,236
156,767
353,493
+34.4%
+43.9%
-
Total
781,576
1,523,770
3,170,700
691,711
1,320,400
2,694,508
+13.0%
+15.4%
+17.7%
Americas
151,391
297,730
-
145,589
292,512
582,297
+4.0%
+1.8%
-
Office
Imaging System
81,150
147,261
-
80,936
139,332
297,403
+0.3%
+5.7%
-
Medical System
20,342
44,486
-
-
-
-
-
-
-
Industry and Others
21,390
40,669
-
20,547
39,476
83,844
+4.1%
+3.0%
-
Total
274,273
530,146
1,093,800
247,072
471,320
963,544
+11.0%
+12.5%
+13.5%
Europe
149,083
290,087
-
141,234
280,398
556,353
+5.6%
+3.5%
-
Office
Imaging System
74,812
141,368
-
79,444
145,805
293,894
-5.8%
-3.0%
-
Medical System
15,830
34,119
-
-
-
-
-
-
-
Industry and Others
14,258
29,981
-
16,096
30,456
63,276
-11.4%
-1.6%
-
Total
253,983
495,555
1,009,500
236,774
456,659
913,523
+7.3%
+8.5%
+10.5%
Asia and Oceania
74,342
150,082
-
72,601
146,050
287,378
+2.4%
+2.8%
-
Office
Imaging System
85,319
161,941
-
84,671
159,536
323,690
+0.8%
+1.5%
-
Medical System
12,105
31,155
-
-
-
-
-
-
-
Industry and Others
81,554
154,891
-
50,593
86,835
206,373
+61.2%
+78.4%
-
Total
253,320
498,069
1,067,400
207,865
392,421
817,441
+21.9%
+26.9%
+30.6%
Intersegment
479
1,087
-
538
1,250
2,957
-11.0%
-13.0%
-
Office
Imaging System
120
279
-
240
489
998
-50.0%
-42.9%
-
Medical System
91
222
-
-
-
-
-
-
-
Industry and Others
21,282
41,642
-
20,886
42,034
82,326
+1.9%
-0.9%
-
Eliminations
(21,972)
(43,230)
-
(21,664)
(43,773)
(86,281)
-
-
-
Total
0
0
0
0
0
0
-
-
-
Total
470,657
928,402
1,869,200
456,396
910,748
1,807,819
+3.1%
+1.9%
+3.4%
Office
Imaging System
282,688
524,747
1,119,000
287,543
522,359
1,095,289
-1.7%
+0.5%
+2.2%
Medical System
88,617
220,372
440,000
-
-
-
-
-
-
Industry and Others
172,483
334,943
709,600
137,971
268,142
584,660
+25.0%
+24.9%
+21.4%
Eliminations
(21,972)
(43,230)
(87,800)
(21,664)
(43,773)
(86,281)
-
-
-
Total
992,473
1,965,234
4,050,000
860,246
1,657,476
3,401,487
+15.4%
+18.6%
+19.1%
(P)=Projection
*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Net sales for the six months ended June 30, 2016 were not restated since they were not material.
Canon Inc.
SEGMENT INFORMATION BY BUSINESS UNIT (Millions of yen)
2017
2016
2nd quarter
1st half
Year (P)
2nd quarter
1st half
Year
Office
470,178
927,315
1,867,500
455,858
909,498
1,804,862
External customers
Intersegment
479
1,087
1,700
538
1,250
2,957
Total sales
470,657
928,402
1,869,200
456,396
910,748
1,807,819
Operating profit
55,873
111,301
208,000
47,605
92,309
169,486
% of sales
11.9%
12.0%
11.1%
10.4%
10.1%
9.4%
Imaging System
282,568
524,468
1,118,200
287,303
521,870
1,094,291
External customers
Intersegment
120
279
800
240
489
998
Total sales
282,688
524,747
1,119,000
287,543
522,359
1,095,289
Operating profit
48,490
77,726
160,000
43,223
62,841
144,413
% of sales
17.2%
14.8%
14.3%
15.0%
12.0%
13.2%
Medical System
88,526
220,150
439,600
-
-
-
External customers
Intersegment
91
222
400
-
-
-
Total sales
88,617
220,372
440,000
-
-
-
Operating profit
172
10,068
20,500
-
-
-
% of sales
0.2%
4.6%
4.7%
-
-
-
Industry and Others
151,201
293,301
624,700
117,085
226,108
502,334
External customers
Intersegment
21,282
41,642
84,900
20,886
42,034
82,326
Total sales
172,483
334,943
709,600
137,971
268,142
584,660
Operating profit
13,151
21,858
45,900
499
(123)
7,448
% of sales
7.6%
6.5%
6.5%
0.4%
-0.0%
1.3%
Corporate and Eliminations
-
-
-
-
-
-
External customers
Intersegment
(21,972)
(43,230)
(87,800)
(21,664)
(43,773)
(86,281)
Total sales
(21,972)
(43,230)
(87,800)
(21,664)
(43,773)
(86,281)
Operating profit
(21,367)
(48,969)
(104,400)
(22,731)
(46,344)
(92,481)
Consolidated
992,473
1,965,234
4,050,000
860,246
1,657,476
3,401,487
External customers
Intersegment
-
-
-
-
-
-
Total sales
992,473
1,965,234
4,050,000
860,246
1,657,476
3,401,487
Operating profit
96,319
171,984
330,000
68,596
108,683
228,866
% of sales
9.7%
8.8%
8.1%
8.0%
6.6%
6.7%
Change year over year
2nd quarter
1st half
Year
+3.1%
-11.0%
+2.0%
-13.0%
+3.5%
-42.5%
+3.1%
+1.9%
+3.4%
+17.4%
-
+20.6%
-
+22.7%
-
-1.6%
-50.0%
+0.5%
-42.9%
+2.2%
-19.8%
-1.7%
+0.5%
+2.2%
+12.2%
-
+23.7%
-
+10.8%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
+29.1%
+1.9%
+29.7%
-0.9%
+24.4%
+3.1%
+25.0%
+24.9%
+21.4%
-
-
-
-
+516.3%
-
-
-
-
-
-
-
-
-
-
-
-
-
+15.4%
-
+18.6%
-
+19.1%
-
+15.4%
+18.6%
+19.1%
+40.4%
-
+58.2%
-
+44.2%
-
(P)=Projection
OTHER INCOME / DEDUCTIONS (Millions of yen)
2017
2016
2nd quarter
1st half
Year (P)
2nd quarter
1st half
Year
Interest and dividend, net
1,581
2,612
3,000
1,084
2,011
3,701
Forex gain (loss)
(2,254)
(3,465)
(3,900)
7,622
10,680
(2)
Equity earnings
of affiliated companies
197
709
1,500
242
511
890
Other, net
3,713
5,726
9,400
3,448
4,868
11,196
Total
3,237
5,582
10,000
12,396
18,070
15,785
Change year over year
2nd quarter
1st half
Year
+497
+601
(701)
(9,876)
(14,145)
(3,898)
(45)
+198
+610
+265
+858
(1,796)
(9,159)
(12,488)
(5,785)
(P)=Projection
*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been
reclassified. Operating results for the six months ended June 30, 2016 were not restated since they were not material.
*The actual and projected operating results pertaining to TMSC, a company acquired in December 2016, are included in "Medical System" for the second quarter, first half and fiscal year 2017. Amortization costs of identified intangible assets resulting from the purchase price allocation of TMSC are included in "Corporate and Eliminations."
-
BREAKDOWN OF PRODUCT SALES WITHIN BUSINESS UNIT
Canon Inc.
2017
2016
2nd quarter
1st half
Year (P)
2nd quarter
1st half
Year
Office
16%
15%
16%
17%
16%
16%
Monochrome copiers
Color copiers
22%
22%
22%
22%
21%
21%
Printers
38%
39%
37%
36%
37%
37%
Others
24%
24%
25%
25%
26%
26%
Imaging System
64%
62%
61%
63%
61%
61%
Cameras
Inkjet printers
28%
29%
30%
28%
30%
30%
Others
8%
9%
9%
9%
9%
9%
Industry and Others
25%
25%
28%
20%
23%
21%
Lithography equipment
Others
75%
75%
72%
80%
77%
79%
(P)=Projection
-
SALES GROWTH IN LOCAL CURRENCY (Year over year)
2017
2nd quarter
1st half
Year (P)
Office
Japan Overseas
-1.1%
+2.4%
-0.6%
+2.4%
-
-
Total
+1.6%
+1.8%
+1.3%
Imaging System
Japan Overseas
-2.3%
-2.5%
-4.3%
+2.2%
-
-
Total
-2.5%
+1.2%
0.0%
Industry and Others
Japan Overseas
+13.9%
+33.1%
-2.3%
+43.8%
-
-
Total
+24.2%
+24.9%
+20.4%
Total
Japan Overseas
Americas Europe
Asia and Oceania
+25.1%
+11.5%
+8.3%
+6.6%
+20.9%
+31.0%
+15.6%
+11.5%
+9.9%
+27.1%
+24.4%
+15.2%
+11.0%
+7.7%
+28.4%
Total
+14.2%
+18.7%
+17.1%
(P)=Projection
PROFITABILITY
Canon Inc.
2017
2016
1st half
Year (P)
1st half
Year
ROE *1
8.9%
7.9%
5.7%
5.2%
ROA *2
4.8%
4.3%
3.6%
3.1%
*1 Return on Equity ; Based on Net Income attributable to Canon Inc. and Total Canon Inc. Shareholders' Equity (P)=Projection
*2 Return on Assets ; Based on Net Income attributable to Canon Inc.
IMPACT OF FOREIGN EXCHANGE RATES
Exchange rates (Yen)
2017
2016
2nd quarter
1st half
2nd half (P)
Year (P)
2nd quarter
1st half
Year
Yen/US$ Yen/Euro
111.12
122.36
112.27
121.72
112.00
125.00
112.14
123.39
108.08
121.94
111.28
124.33
108.58
120.25
(P)=Projection
Impact of foreign exchange rates on sales (Year over year) (Billions ofyen)
2017
2nd quarter
1st half
Year (P)
US$
+9.4
+7.7
+40.2
Euro
+0.9
(8.2)
+21.8
Other currencies
+0.0
(1.7)
+5.8
Total
+10.3
(2.2)
+67.8
(P)=Projection
Impact of foreign exchange rates per yen (Billions of yen)
2017
2nd half (P)
On sales
7.2
US$
Euro
3.5
On operating profit
2.3
US$
Euro
1.6
(P)=Projection
STATEMENTS OF CASH FLOWS (Millions ofyen)
2017
2016
2nd quarter
1st half
Year (P)
2nd quarter
1st half
Year
Net cash provided by operating activities
141,685
309,106
550,000
126,585
241,207
500,283
Net cash used in investing activities
(57,742)
(107,838)
(255,000)
(55,863)
(776,092)
(837,125)
Free cash flow
83,943
201,268
295,000
70,722
(534,885)
(336,842)
Net cash provided by (used in) financing activities
(51,669)
(135,115)
(318,200)
(50,835)
519,883
355,692
Effect of exchange rate changes on cash and cash equivalents
6,898
(2,520)
(7,000)
(31,661)
(49,431)
(22,270)
Net change in cash and cash equivalents
39,172
63,633
(30,200)
(11,774)
(64,433)
(3,420)
Cash and cash equivalents at end of period
693,826
693,826
600,000
569,180
569,180
630,193
(P)=Projection
Canon Inc.
R&D EXPENDITURE (Millions ofyen)
2017
2016
2nd quarter
1st half
Year (P)
2nd quarter
1st half
Year
Office
22,808
45,056
-
23,987
49,956
94,440
Imaging System
23,054
44,892
-
23,092
46,706
91,752
Medical System
7,436
18,612
-
-
-
-
Industry and Others
15,835
32,012
-
18,065
33,798
67,887
Corporate and Eliminations
11,359
21,181
-
11,420
24,974
48,297
Total
80,492
161,753
335,000
76,564
155,434
302,376
% of sales
8.1%
8.2%
8.3%
8.9%
9.4%
8.9%
(P)=Projection
INCREASE IN PP&E & DEPRECIATION AND AMORTIZATION (Millions ofyen)
2017
2016
2nd quarter
1st half
Year (P)
2nd quarter
1st half
Year
Increase in PP&E Depreciation and amortization
37,191
64,476
68,829
126,615
190,000
260,000
40,526
62,162
90,990
122,372
171,597
250,096
(P)=Projection
INVENTORIES
Inventories (Millions ofyen)
2017
2016
Difference
Jun.30
Dec.31
Office
211,469
205,656
+5,813
Imaging System
148,793
127,386
+21,407
Medical System
80,477
-
+80,477
Industry and Others
156,098
227,694
(71,596)
Total
596,837
560,736
+36,101
Inventories/Sales* (Days)
2017
2016
Difference
Jun.30
Dec.31
Office
42
42
0
Imaging System
52
41
+11
Medical System
67
-
-
Industry and Others
98
152
(54)
Total
55
59
(4)
*Index based on the previous six months sales.
DEBT RATIO
2017
2016
Difference
Jun.30
Dec.31
Total debt / Total assets
12.5%
11.9%
+0.6%
OVERSEAS PRODUCTION RATIO
2017
2016
1st half
Year
Overseas production ratio
37%
44%
NUMBER OF EMPLOYEES
Canon's consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.
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 Six months ended June 30, 2017
Net cash provided by operating activities | 309.1 |
Net cash used in investing activities | (107.8) |
Free cash flow | 201.3 |
Canon Inc. July 27, 2017
CONSOLIDATED RESULTS FOR THE SECOND QUARTER | |||
AND THE FIRST HALF ENDED JUNE 30, 2017 | |||
SUPPLEMENTARY REPORT | |||
TABLE OF CONTENTS | |||
PAGE | |||
1. | SALES BY GEOGRAPHIC AREA AND BUSINESS UNIT.............................. | S | 1 |
2. | SEGMENT INFORMATION BY BUSINESS UNIT........................................... | S | 2 |
3. | OTHER INCOME / DEDUCTIONS..................................................................... | S | 2 |
4. | BREAKDOWN OF PRODUCT SALES WITHIN BUSINESS UNIT................. | S | 3 |
5. | SALES GROWTH IN LOCAL CURRENCY (Year over year).......................... | S | 3 |
6. | PROFITABILITY................................................................................................... | S | 4 |
7. | IMPACT OF FOREIGN EXCHANGE RATES.................................................... | S | 4 |
8. | STATEMENTS OF CASH FLOWS...................................................................... | S | 4 |
9. | R&D EXPENDITURE........................................................................................... | S | 5 |
10. | INCREASE IN PP&E & DEPRECIATION AND AMORTIZATION................ | S | 5 |
11. | INVENTORIES...................................................................................................... | S | 5 |
12. | DEBT RATIO......................................................................................................... | S | 5 |
13. | OVERSEAS PRODUCTION RATIO................................................................... | S | 5 |
14. | NUMBER OF EMPLOYEES................................................................................ | S | 5 |
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.
Canon Inc.
2017 | 2016 | Difference | |
Jun.30 | Dec.31 | ||
Japan Overseas | 74,464 126,709 | 72,913 124,760 | +1,551 +1,949 |
Total | 201,173 | 197,673 | +3,500 |
*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Operating results for the six months ended June 30, 2016 were not restated since they were not material.
Canon Inc. published this content on 27 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 06:09:09 UTC.
Original documenthttp://www.canon.com/ir/results/2017/rslt2017q2e.pdf
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