6-K
CANON INC (CAJFF)
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Reportof Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16of
the Securities Exchange Act of 1934
| For the month of …. | July | ……………………………………………… , | 2021 |
|---|---|---|---|
| CANON INC. | |||
| --- | |||
| (Translation of registrant’s name into English) | |||
| 30-2, Shimomaruko 3-Chome, Ohta-ku, Tokyo 146-8501, Japan | |||
| (Address of principal executive offices) |
[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
| Form 20-F | X | Form 40-F |
|---|
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
| Yes | No | X |
|---|
[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-....................
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CANON INC. | ||
|---|---|---|
| (Registrant) | ||
| Date…. | July 28, 2021 | By....../s/.......... Sachiho Tanino............. |
| --- | --- | --- |
| (Signature)* | ||
| <br> Sachiho Tanino<br><br><br><br> General Manager<br><br><br><br> Consolidated Accounting Div.<br><br><br><br> Canon Inc. |
*Print the name and title of the signing officer under his signature.
The following materials are included.
| 1. | RESULTS FOR THE SECOND QUARTER AND THE FIRST HALF ENDED JUNE 30, 2021 |
|---|
CONSOLIDATED RESULTS FOR THE SECOND QUARTER AND
THE FIRST HALF ENDED JUNE 30, 2021
July 28, 2021
CONSOLIDATED RESULTS FOR THE SECOND QUARTER
| (Millions of yen, thousands of U.S. dollars, except per share amounts) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual | |||||||||||||
| Three monthsendedJune 30, 2021 | Three months<br>ended<br>June 30, 2020 | Change(%) | Three monthsendedJune 30, 2021 | ||||||||||
| Net sales | ¥ | 881,933 | ¥ | 673,315 | + | 31.0 | $ | 7,945,342 | |||||
| Operating profit (loss) | **** | 77,269 | (17,755 | ) | - | **** | 696,117 | ||||||
| Income (loss) before income taxes | **** | 85,773 | (7,223 | ) | - | **** | 772,730 | ||||||
| Net income (loss) attributable to Canon Inc. | ¥ | 61,149 | ¥ | (8,835 | ) | - | $ | 550,892 | |||||
| Net income (loss) attributable to Canon Inc. shareholders per share: | |||||||||||||
| - Basic | ¥ | 58.48 | ¥ | (8.45 | ) | - | $ | 0.53 | |||||
| - Diluted | **** | 58.46 | (8.45 | ) | - | **** | 0.53 | ||||||
| CONSOLIDATED RESULTS FOR THE FIRST HALF | |||||||||||||
| (Millions of yen, thousands of U.S. dollars, except per share amounts) | |||||||||||||
| Actual | Projection | ||||||||||||
| Six monthsendedJune 30, 2021 | Six months<br>ended<br>June 30, 2020 | Change(%) | Six monthsendedJune 30, 2021 | Year ending<br>December 31,<br>2021 | Change(%) | ||||||||
| Net sales | ¥ | 1,724,584 | ¥ | 1,455,627 | + | 18.5 | $ | 15,536,793 | ¥ | 3,600,000 | + | 13.9 | |
| Operating profit | **** | 147,833 | 15,122 | + | 877.6 | **** | 1,331,829 | 283,000 | + | 156.0 | |||
| Income before income taxes | **** | 151,821 | 27,288 | + | 456.4 | **** | 1,367,757 | 298,000 | + | 128.7 | |||
| Net income attributable to Canon Inc. | ¥ | 105,603 | ¥ | 13,071 | + | 707.9 | $ | 951,378 | ¥ | 201,000 | + | 141.2 | |
| Net income attributable to Canon Inc. shareholders per share: | |||||||||||||
| - Basic | ¥ | 100.99 | ¥ | 12.41 | + | 713.8 | $ | 0.91 | ¥ | 192.23 | + | 142.2 | |
| - Diluted | **** | 100.97 | 12.41 | + | 713.6 | **** | 0.91 | 192.17 | + | 142.2 | |||
| Actual | |||||||||||||
| As ofJune 30, 2021 | As of<br>December 31, 2020 | Change(%) | As ofJune 30, 2021 | ||||||||||
| Total assets | ¥ | 4,747,261 | ¥ | 4,625,614 | + | 2.6 | $ | 42,768,117 | |||||
| Canon Inc. shareholders’ equity | ¥ | 2,745,425 | ¥ | 2,575,031 | + | 6.6 | $ | 24,733,559 | |||||
| Notes: | 1. Canon’s consolidated financial statements are prepared in accordance with U.S.<br>generally accepted accounting principles. | ||||||||||||
| --- | --- | ||||||||||||
| 2. U.S. dollar amounts are translated from yen at the rate of JPY111=U.S.$1, the<br>approximate exchange rate on the Tokyo Foreign Exchange Market as of June 30, 2021, 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 |
- 1 -
I. Operating Results and Financial Conditions
2021 Second Quarter in Review
Looking back at the second quarter of 2021, the global economy trended toward recovery thanks to the rollout of vaccines in developed countries and the resumption of economic activities despite the continued spread of the coronavirus disease (“COVID-19”) pandemic. In the United States, economic recovery advanced as a result of the rapid normalization of economic activities and the continued increase in personal consumption and expansion of capital investment. In Europe, restrictions on economic activities were gradually eased in each country, and the economy began to recover due to such factors as an increase in exports. In China, the economic recovery continued as a result of the easing of government restrictions due to a decrease in the number of new infections and the continued expansion of domestic demand and exports. In other emerging markets, economic activities continued to stagnate due to the resurgence of COVID-19 variant infections, primarily in India. In Japan, despite the resurgence of infections, the economy continued to gain momentum as production activities and exports continued to recover.
Amid these conditions, in the markets in which Canon operates, demand for office multifunction devices (MFDs) showed significant increase compared with the same period of the previous year, when the market declined sharply as the COVID-19 pandemic spread worldwide. For laser printers, demand was above that of the same period of the previous year, mainly for monochrome models. For inkjet printers, demand in home use remained solid in developed countries and emerging countries. For cameras, amid the COVID-19 pandemic, the market remained solid mainly for mirrorless cameras due to the growth of photography as a hobby. For medical equipment, the trend toward recovery continued due to increased sales activities focusing on medical institutions. For lithography equipment, demand for both semiconductor lithography equipment and FPD (Flat Panel Display) lithography equipment remained solid.
The average value of the yen during the second quarter and the first half of the year was ¥109.48 and ¥107.82 against the U.S. dollar, respectively, a year-on-year depreciation of approximately ¥2 and the same level as the previous year, and ¥131.94 and ¥129.90 against the euro, respectively, a year-on-year depreciation of approximately ¥13 and a year-on-year depreciation of approximately ¥10.
As for the second quarter, unit sales of office MFDs and equipment for the production printing market were above those of the same period of the previous year. Sales of services and consumables also increased due to a recovery of corporate activity. As for the Prosumer consisting of laser printers and inkjet printers, unit sales of laser printers were below those of the same period of the previous year due to the stagnation of production activity, despite increased demand due to remote working. For inkjet printers, although unit sales were below those of the same period of the previous year, when demand in home use increased sharply due to the spread of COVID-19, sales were above those of the same period of the previous year due to an increase in sales of refillable ink tank printers. For interchangeable-lens digital cameras, unit sales were above those of the same period of the previous year in many regions due to strong sales of the EOS R5 and EOS R6 full-frame mirrorless cameras. As for network cameras, which are being used in a growing range of applications, sales increased due to the strengthening of sales activities. For medical equipment, sales increased in major areas due to strong sales of computed tomography (CT) systems and diagnostic X-ray systems. While sales for semiconductor lithography equipment remained solid, sales for FPD lithography equipment were significantly above those of the same period of the previous year. However, sales for OLED display manufacturing equipment were below those of the same period of the previous year due to the review of investment timing by some customers. Under these conditions, second-quarter net sales increased by 31.0% year-on-year to ¥881.9 billion. Net sales for the first half of the year increased by 18.5% year-on-year to ¥1,724.6 billion. Gross profit margin increased by 6.5 points to 47.4%. Operating expenses increased by 16.1% year-on-year to ¥340.4 billion due to the effects of exchange rate fluctuations, although expense ratio improved significantly thanks to Group-wide promotion of efficiency for expenses and the results of structural reform. As a result, operating profit totaled ¥77.3 billion representing in a shift from an operating loss in the same period of the previous year to an operating profit. Other income (deductions) decreased by ¥2.0 billion year-on-year to ¥8.5 billion, due to such factors as valuation losses on securities, while income before income taxes totaled ¥85.8 billion and net income attributable to Canon Inc. totaled ¥61.1 billion, with both incomes having recovered significantly from net losses in the same period of the previous year. Operating profit for the first half of the year increased by 877.6% to ¥147.8 billion, while income before income taxes increased by 456.4% to ¥151.8 billion and first-half net income attributable to Canon Inc. increased by 707.9% to ¥105.6 billion.
Basic net income attributable to Canon Inc. shareholders per share was ¥58.48 for the second quarter, a year-on-year increase of ¥66.93 representing in a shift from a loss in the same period of the previous year, and ¥100.99 for the first half, a year-on-year increase of ¥88.58.
- 2 -
Results by Segment
Looking at Canon’s second-quarter performance by business unit, in the Printing Business Unit, unit sales of office MFDs increased compared with the same period of the previous year, thanks to strong sales of the imageRUNNER ADVANCE DX series. For equipment for the production printing market, sales increased and unit sales significantly increased compared with the same period of the previous year. Sales of services and consumables increased as a result of higher print volumes, particularly for office MFDs, as corporate activity gradually headed toward recovery. As for the Prosumer, unit sales of laser printers, both monochrome and color models, decreased compared with the same period of the previous year due to stagnation of production activity resulting from lockdowns in Southeast Asia despite an increase in demand due to remote working. Unit sales of consumables increased significantly compared with the same period of the previous year, when demand decreased due to the impact of COVID-19. For inkjet printers, unit sales were below those of the same period of the previous year, when demand from home use increased rapidly due to the spread of COVID-19. However, sales were above those of the same period of the previous year as unit sales of refillable ink tank printers increased compared with the same period of the previous year based on strong global demand. These factors resulted in total sales for the business unit of ¥489.6 billion, a year-on-year increase of 24.5%, while income before income taxes increased by 229.5% year-on-year to ¥66.0 billion. Sales for the combined first six months of the year totaled ¥959.0 billion, a year-on-year increase of 10.1%, while income before income taxes totaled ¥120.6 billion, a year-on-year increase of 57.0%.
As for the Imaging Business Unit, unit sales of interchangeable-lens digital cameras were above those of the same period of the previous year due to demand from customers who began photography as a hobby amid the COVID-19 pandemic, and strong sales of the EOS R5 and EOS R6. In addition, sales of interchangeable lenses increased significantly due to the expansion of the lens product lineup. As for network cameras, despite the continued impact of COVID-19, sales increased mainly as a result of strengthening sales activities for such diversified applications as remote monitoring and monitoring of congested and confined spaces as well as conventional market needs including crime prevention and disaster monitoring tools. These factors resulted in total sales for the business unit of ¥169.8 billion, a year-on-year increase of 77.8%, while income before income taxes totaled ¥20.9 billion, representing in a shift from a loss for the same period of the previous year to a profit. Sales for the combined first six months of the year totaled ¥318.5 billion, a year-on-year increase of 47.9%, while income before income taxes totaled ¥38.9 billion resulting in a recovery from a loss for the same period of the previous year.
As for the Medical Business Unit, although the resurgence of COVID-19 infections had an impact on business negotiations and installation in some regions, sales of CT systems and diagnostic X-ray systems increased mainly in Europe and the United States, as well as strong sales in Japan. These factors resulted in total sales for the business unit of ¥111.8 billion, a year-on-year increase of 9.7%, while income before income taxes decreased by 36.5% year-on-year to ¥3.8 billion due to the resumption of exhibitions and other activities that Canon did not participate in last year. Sales for the combined first six months of the year totaled ¥236.2 billion, a year-on-year increase of 13.6%, while income before income taxes totaled ¥15.5 billion, a year-on-year increase of 53.0%.
As for the Industrial & Others Business Unit, regarding semiconductor lithography equipment, demand for memory devices, image sensors and automotive devices remained solid. As a result, unit sales remained strong at a level equivalent to the same period of the previous year. For FPD lithography equipment, there was growth in demand for panels. As a result, unit sales increased significantly compared with the previous year, when equipment installation stagnated due to circumstances related to COVID-19. However, sales of OLED display manufacturing equipment decreased as a result of reviewed investment timing by some customers. These factors resulted in total sales for the business unit of ¥138.1 billion, a year-on-year increase of 38.7%, while income before income taxes increased by 733.4% year-on-year to ¥15.6 billion. Sales for the combined first six months of the year totaled ¥262.6 billion, a year-on-year increase of 32.4%, while income before income taxes totaled ¥24.8 billion, a year-on-year increase of 177.6%.
- 3 -
Cash Flow
In the first half, cash flow from operating activities increased by ¥131.8 billion year-on-year to ¥272.6 billion due to a significant increase in profit and working capital improvement. Cash flow used in investing activities increased by ¥7.5 billion year-on-year to ¥80.4 billion mainly due to a decrease in the sale of fixed assets. Accordingly, free cash flow increased by ¥124.3 billion compared with that of the previous year to ¥192.2 billion.
Cash flow from financing activities recorded an outlay of ¥89.7 billion mainly due to the repayment of long-term debt and dividend payout.
Owing to these factors, as well as the impact from foreign currency exchange adjustments, cash and cash equivalents increased by ¥115.9 billion to ¥523.6 billion from the end of the previous year.
Outlook
Looking at the global economy from the third quarter onwards, while the progress of COVID-19 vaccinations is expected to support the resumption of economic activities, it will take time to see a full-scale recovery of the global economy. In addition, there are risks of delay in the supply of semiconductor chips and of tight supply due to high demand for international freight transport. Under these conditions, economic prospects continue to remain uncertain throughout the world. However, the pace of the global economy is expected to recover moderately over the long term, supported by various economic measures and fiscal policies in each country and region.
In the markets in which Canon operates, for office MFDs, as there is a recovery of corporate activity, demand for the imageRUNNER ADVANCE DX series is expected to increase. For laser printers, demand is expected to increase due to signs of recovery of demand from offices as well as in home use. For inkjet printers, demand is expected to remain solid due to print volumes resulting from remote work and education, which have become more commonplace due to the impact of the COVID-19 pandemic. As for interchangeable-lens digital cameras, the overall market is expected to increase slightly compared with the previous year. Canon will strengthen the competitiveness of its full-frame mirrorless cameras and interchangeable lenses while reinforcing sales promotion efforts amid a shift to mirrorless cameras and improving the product mix. For network cameras, the market is expected to continue growing due to the stable expansion of sales markets and increasing demand for video analysis solutions. As for the medical equipment market, demand is expected to continue to recover due to progress in sales activities focusing on medical institutions, despite concerns about the impact of a resurgence in COVID-19 infections. For semiconductor lithography equipment, while demand for memory devices is expected to remain solid, demand for image sensors and automotive devices is expected to continue to increase. For FPD lithography equipment, demand will remain solid as panel manufacturers are expected to increase capital investments.
With regard to currency exchange rates on which Canon bases its performance outlook for the third quarter onwards, Canon anticipates exchange rates of ¥108 to the U.S. dollar and ¥130 to the euro, representing depreciation of approximately ¥1 against the U.S. dollar and depreciation of approximately ¥8 against the euro as the annual average rates of the previous year.
Sales of inkjet printers, full-frame mirrorless cameras, medical equipment and semiconductor lithography equipment increased steadily due to strong demand in each region. Additionally, in the office market, a recovery of print demand is expected. Taking into consideration these circumstances and exchange rate assumptions, Canon projects full-year consolidated net sales of ¥3,600.0 billion, a year-on-year increase of 13.9%; operating profit of ¥283.0 billion, a year-on-year increase of 156.0%; income before income taxes of ¥298.0 billion, a year-on-year increase of 128.7%; and net income attributable to Canon Inc. of ¥201.0 billion, a year-on-year increase of 141.2%.
For more details, please refer to “Notice Regarding Revision of Consolidated Results Forecast” released separately on July 19, 2021.
Consolidated Outlook
| Fiscal year | Millions of yen | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year ending<br><br><br>December 31, 2021 | Change | Year ended<br>December 31, 2020 | Change (%) | |||||||
| Outlook as of April 26 (A) | Outlook as of July 19 (B) | (B - A) | Results (C) | (B - C) / C | ||||||
| Net sales | 3,500,000 | 3,600,000 | 100,000 | 3,160,243 | +13.9% | |||||
| Operating profit | 198,000 | 283,000 | 85,000 | 110,547 | +156.0% | |||||
| Income before income taxes | 211,000 | 298,000 | 87,000 | 130,280 | +128.7% | |||||
| Net income attributable to Canon Inc. | 140,000 | 201,000 | 61,000 | 83,318 | +141.2% |
- 4 -
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.
- 5 -
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
II. Financial Statements
- CONSOLIDATED BALANCE SHEETS
| Millions of yen | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| As of June 30, 2021 | As of<br>December 31, 2020 | Change | |||||||
| ASSETS | |||||||||
| Current assets | **** | 1,903,220 | **** | 1,789,143 | 114,077 | ||||
| Cash and cash equivalents | **** | 523,565 | **** | 407,684 | 115,881 | ||||
| Short-term investments | **** | 97 | **** | 71 | 26 | ||||
| Trade receivables | **** | 493,991 | **** | 546,771 | (52,780 | ) | |||
| Inventories | **** | 589,125 | **** | 562,807 | 26,318 | ||||
| Prepaid expenses and other current assets | **** | 309,651 | **** | 284,556 | 25,095 | ||||
| Allowance for credit losses | **** | (13,209 | ) | (12,746 | ) | (463 | ) | ||
| Non-current assets | **** | 2,844,041 | **** | 2,836,471 | 7,570 | ||||
| Noncurrent receivables | **** | 16,507 | **** | 17,276 | (769 | ) | |||
| Investments | **** | 55,097 | **** | 49,994 | 5,103 | ||||
| Property, plant and equipment, net | **** | 1,036,166 | **** | 1,037,680 | (1,514 | ) | |||
| Operating lease<br>right-of-use assets | **** | 102,214 | **** | 107,361 | (5,147 | ) | |||
| Intangible assets, net | **** | 306,973 | **** | 318,497 | (11,524 | ) | |||
| Goodwill | **** | 928,243 | **** | 915,564 | 12,679 | ||||
| Other assets | **** | 401,135 | **** | 392,066 | 9,069 | ||||
| Allowance for credit losses | **** | (2,294 | ) | (1,967 | ) | (327 | ) | ||
| Total assets | **** | 4,747,261 | **** | 4,625,614 | 121,647 | ||||
| LIABILITIES AND EQUITY | |||||||||
| Current liabilities | **** | 1,322,230 | **** | 1,326,189 | (3,959 | ) | |||
| Short-term loans and current portion of long-term debt | **** | 345,697 | **** | 392,235 | (46,538 | ) | |||
| Trade payables | **** | 312,137 | **** | 303,809 | 8,328 | ||||
| Accrued income taxes | **** | 42,347 | **** | 18,761 | 23,586 | ||||
| Accrued expenses | **** | 310,025 | **** | 317,716 | (7,691 | ) | |||
| Current operating lease liabilities | **** | 32,412 | **** | 32,307 | 105 | ||||
| Other current liabilities | **** | 279,612 | **** | 261,361 | 18,251 | ||||
| Non-Current liabilities | **** | 463,684 | **** | 515,384 | (51,700 | ) | |||
| Long-term debt, excluding current installments | **** | 5,673 | **** | 4,834 | 839 | ||||
| Accrued pension and severance cost | **** | 302,033 | **** | 345,897 | (43,864 | ) | |||
| Noncurrent operating lease liabilities | **** | 71,033 | **** | 76,796 | (5,763 | ) | |||
| Other noncurrent liabilities | **** | 84,945 | **** | 87,857 | (2,912 | ) | |||
| Total liabilities | **** | 1,785,914 | **** | 1,841,573 | (55,659 | ) | |||
| Canon Inc. shareholders’ equity | **** | 2,745,425 | **** | 2,575,031 | 170,394 | ||||
| Common stock | **** | 174,762 | **** | 174,762 | - | ||||
| Additional paid-in capital | **** | 404,549 | **** | 404,620 | (71 | ) | |||
| Retained earnings | **** | 3,542,570 | **** | 3,478,807 | 63,763 | ||||
| Legal reserve | **** | 68,656 | **** | 69,436 | (780 | ) | |||
| Other retained earnings | **** | 3,473,914 | **** | 3,409,371 | 64,543 | ||||
| Accumulated other comprehensive income (loss) | **** | (218,097 | ) | (324,789 | ) | 106,692 | |||
| Treasury stock, at cost | **** | (1,158,359 | ) | (1,158,369 | ) | 10 | |||
| Noncontrolling interests | **** | 215,922 | **** | 209,010 | 6,912 | ||||
| Total equity | **** | 2,961,347 | **** | 2,784,041 | 177,306 | ||||
| Total liabilities and equity | **** | 4,747,261 | **** | 4,625,614 | 121,647 | ||||
| * Canon has<br>changed the presentation of allowance for credit losses as defined in ASU No. 2016-13, Financial Instruments - Credit Losses - (Topic 326): Measurement of Credit Losses on Financial Instruments, from the<br>beginning of the first quarter of 2021. Consolidated balance sheet for the year ended December 31, 2020 also has been reclassified. | |||||||||
| Millions of yen | |||||||||
| As ofJune 30, 2021 | As of<br>December 31, 2020 | ||||||||
| Notes: | |||||||||
| 1. Accumulated depreciation | **** | 2,826,904 | **** | 2,770,106 | |||||
| 2. Accumulated other comprehensive income (loss): | |||||||||
| Foreign currency translation adjustments | **** | (26,470 | ) | (113,646 | ) | ||||
| Net gains and losses on derivative instruments | **** | (562 | ) | 100 | |||||
| Pension liability adjustments | **** | (191,065 | ) | (211,243 | ) |
- 6 -
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
- CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Consolidated statements of income (loss)
Results for the second quarter
| Millions of yen | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three months<br>endedJune 30, 2021 | Three months <br>ended<br>June 30, 2020 | Change(%) | |||||||
| Net sales | **** | 881,933 | **** | 673,315 | + | 31.0 | |||
| Cost of sales | **** | 464,310 | **** | 398,000 | |||||
| Gross profit | **** | 417,623 | **** | 275,315 | + | 51.7 | |||
| Operating expenses: | |||||||||
| Selling, general and administrative expenses | **** | 269,404 | **** | 229,348 | |||||
| Research and development expenses | **** | 70,950 | **** | 63,722 | |||||
| **** | 340,354 | **** | 293,070 | ||||||
| Operating profit (loss) | **** | 77,269 | **** | (17,755 | ) | - | |||
| Other income (deductions): | |||||||||
| Interest and dividend income | **** | 613 | **** | 487 | |||||
| Interest expense | **** | (180 | ) | (202 | ) | ||||
| Other, net | **** | 8,071 | **** | 10,247 | |||||
| **** | 8,504 | **** | 10,532 | ||||||
| Income (loss) before income taxes | **** | 85,773 | **** | (7,223 | ) | - | |||
| Income taxes | **** | 21,251 | **** | (2,121 | ) | ||||
| Consolidated net income (loss) | **** | 64,522 | **** | (5,102 | ) | ||||
| Less: Net income attributable to noncontrolling interests | **** | 3,373 | **** | 3,733 | |||||
| Net income (loss) attributable to Canon Inc. | **** | 61,149 | **** | (8,835 | ) | - | |||
| Results for the first half | |||||||||
| Millions of yen | |||||||||
| Six monthsendedJune 30, 2021 | Six months<br>ended<br>June 30, 2020 | Change(%) | |||||||
| Net sales | **** | 1,724,584 | **** | 1,455,627 | + | 18.5 | |||
| Cost of sales | **** | 922,602 | **** | 821,649 | |||||
| Gross profit | **** | 801,982 | **** | 633,978 | + | 26.5 | |||
| Operating expenses: | |||||||||
| Selling, general and administrative expenses | **** | 515,839 | **** | 487,191 | |||||
| Research and development expenses | **** | 138,310 | **** | 131,665 | |||||
| **** | 654,149 | **** | 618,856 | ||||||
| Operating profit | **** | 147,833 | **** | 15,122 | + | 877.6 | |||
| Other income (deductions): | |||||||||
| Interest and dividend income | **** | 1,037 | **** | 1,625 | |||||
| Interest expense | **** | (348 | ) | (388 | ) | ||||
| Other, net | **** | 3,299 | **** | 10,929 | |||||
| **** | 3,988 | **** | 12,166 | ||||||
| Income before income taxes | **** | 151,821 | **** | 27,288 | + | 456.4 | |||
| Income taxes | **** | 38,733 | **** | 8,304 | |||||
| Consolidated net income | **** | 113,088 | **** | 18,984 | |||||
| Less: Net income attributable to noncontrolling interests | **** | 7,485 | **** | 5,913 | |||||
| Net income attributable to Canon Inc. | **** | 105,603 | **** | 13,071 | + | 707.9 |
- 7 -
| CANON INC. AND SUBSIDIARIES <br><br><br><br>CONSOLIDATED<br> <br><br><br><br>Consolidated statements of comprehensive income (loss)<br><br><br><br> <br>Results for the secondquarter |
|---|
| Millions of yen | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three months endedJune 30, 2021 | Three months <br>ended<br>June 30, 2020 | Change(%) | |||||||
| Consolidated net income (loss) | **** | 64,522 | **** | (5,102 | ) | - | |||
| Other comprehensive income (loss), net of tax | |||||||||
| Foreign currency translation adjustments | **** | 12,799 | **** | 25,456 | |||||
| Net gains and losses on derivative instruments | **** | 845 | **** | (34 | ) | ||||
| Pension liability adjustments | **** | 349 | **** | (12,098 | ) | ||||
| **** | 13,993 | **** | 13,324 | ||||||
| Comprehensive income (loss) | **** | 78,515 | **** | 8,222 | + | 854.9 | |||
| Less: Comprehensive income (loss) attributable to noncontrolling interests | **** | 3,424 | **** | 3,843 | |||||
| Comprehensive income (loss) attributable to Canon Inc. | **** | 75,091 | **** | 4,379 | - | ||||
| Results for the first half | |||||||||
| Millions of yen | |||||||||
| Six monthsendedJune 30, 2021 | Six months<br>ended<br>June 30, 2020 | Change(%) | |||||||
| Consolidated net income | **** | 113,088 | **** | 18,984 | + | 495.7 | |||
| Other comprehensive income (loss), net of tax | |||||||||
| Foreign currency translation adjustments | **** | 88,017 | **** | (35,576 | ) | ||||
| Net gains and losses on derivative instruments | **** | (645 | ) | 515 | |||||
| Pension liability adjustments | **** | 20,253 | **** | (9,746 | ) | ||||
| **** | 107,625 | **** | (44,807 | ) | |||||
| Comprehensive income (loss) | **** | 220,713 | **** | (25,823 | ) | - | |||
| Less: Comprehensive income (loss) attributable to noncontrolling interests | **** | 8,418 | **** | 6,152 | |||||
| Comprehensive income (loss) attributable to Canon Inc. | **** | 212,295 | **** | (31,975 | ) | - |
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| CANON INC. AND SUBSIDIARIES <br><br><br><br>CONSOLIDATED<br> <br><br><br><br>3. DETAILS OF SALES<br> <br><br><br><br>Results for the secondquarter |
|---|
| Millions of yen | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Sales by business unit | Three months ended<br>June 30, 2021 | Three months ended<br>June 30, 2020 | Change(%) | ||||||
| Printing | **** | 489,641 | **** | 393,428 | + | 24.5 | |||
| Imaging | **** | 169,847 | **** | 95,526 | + | 77.8 | |||
| Medical | **** | 111,777 | **** | 101,852 | + | 9.7 | |||
| Industrial and Others | **** | 138,065 | **** | 99,542 | + | 38.7 | |||
| Eliminations | **** | (27,397 | ) | (17,033 | ) | - | |||
| Total | **** | 881,933 | **** | 673,315 | + | 31.0 | |||
| Millions of yen | |||||||||
| Sales by region | Three months endedJune 30, 2021 | Three months ended<br>June 30, 2020 | Change(%) | ||||||
| Japan | **** | 191,310 | **** | 177,293 | + | 7.9 | |||
| Overseas: | |||||||||
| Americas | **** | 247,330 | **** | 182,801 | + | 35.3 | |||
| Europe | **** | 235,526 | **** | 160,622 | + | 46.6 | |||
| Asia and Oceania | **** | 207,767 | **** | 152,599 | + | 36.2 | |||
| **** | 690,623 | **** | 496,022 | + | 39.2 | ||||
| Total | **** | 881,933 | **** | 673,315 | + | 31.0 | |||
| Results for the first half | |||||||||
| Millions of yen | |||||||||
| Sales by business unit | Six months ended June 30, 2021 | Six months ended <br>June 30, 2020 | Change(%) | ||||||
| Printing | **** | 958,996 | **** | 871,269 | + | 10.1 | |||
| Imaging | **** | 318,451 | **** | 215,351 | + | 47.9 | |||
| Medical | **** | 236,191 | **** | 207,946 | + | 13.6 | |||
| Industrial and Others | **** | 262,617 | **** | 198,354 | + | 32.4 | |||
| Eliminations | **** | (51,671 | ) | (37,293 | ) | - | |||
| Total | **** | 1,724,584 | **** | 1,455,627 | + | 18.5 | |||
| Millions of yen | |||||||||
| Sales by region | Six months endedJune 30, 2021 | Six months ended<br>June 30, 2020 | Change(%) | ||||||
| Japan | **** | 415,578 | **** | 391,971 | + | 6.0 | |||
| Overseas: | |||||||||
| Americas | **** | 465,688 | **** | 398,236 | + | 16.9 | |||
| Europe | **** | 446,515 | **** | 358,425 | + | 24.6 | |||
| Asia and Oceania | **** | 396,803 | **** | 306,995 | + | 29.3 | |||
| **** | 1,309,006 | **** | 1,063,656 | + | 23.1 | ||||
| Total | **** | 1,724,584 | **** | 1,455,627 | + | 18.5 | |||
| * | Based on the realignment of Canon’s internal reporting and management structure, from the beginning of the<br>first quarter of 2021, Canon has changed the name and structure of segments to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. Operating results for the three and six months ended<br>June 30, 2020 also have been reclassified. | ||||||||
| --- | --- | ||||||||
| Notes: | 1. The primary products included in each of the segments are as<br>follows: | ||||||||
| --- | --- | ||||||||
| Printing Business Unit: | |||||||||
| Office multifunction devices (MFDs) / Document solutions / Laser multifunction printers (MFPs) / Laser printers /<br>Inkjet printers / Image scanners / Calculators / Digital continuous feed presses / Digital sheet-fed presses / Wide-format printers / Large format inkjet printers / Commercial photo printers | |||||||||
| Imaging Business Unit: | |||||||||
| Interchangeable-lens digital cameras / Digital compact cameras / Interchangeable lenses / Compact photo printers /<br>Network cameras / Digital camcorders / Digital cinema cameras / Multimedia projectors / Broadcast equipment | |||||||||
| Medical Business Unit: | |||||||||
| Digital radiography systems / Diagnostic X-ray systems / Computed tomography (CT)<br>systems /<br> <br>Magnetic resonance imaging (MRI) systems / Diagnostic ultrasound systems / Clinical chemistry analyzers / Ophthalmic<br>equipment | |||||||||
| Industrial and Others Business Unit: | |||||||||
| Semiconductor lithography equipment / FPD (Flat panel display) lithography equipment / OLED display manufacturing<br>equipment / Vacuum thin-film deposition equipment / Die bonders / Micromotors / Handy terminals / Document scanners | |||||||||
| 2. The principal countries and regions included in each regional category are as<br>follows: | |||||||||
| Americas: United States of America, Canada, Latin America<br><br><br>Europe: United Kingdom, Germany, France, Netherlands, European countries, Middle East and Africa<br><br><br>Asia and Oceania: China, Asian countries, Australia |
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CANON INC. AND SUBSIDIARIES
CONSOLIDATED
- CONSOLIDATED STATEMENTS OF CASH FLOWS
| Millions of yen | ||||||
|---|---|---|---|---|---|---|
| Six months endedJune 30, 2021 | Six months ended<br>June 30, 2020 | |||||
| Cash flows from operating activities: | ||||||
| Consolidated net income | **** | 113,088 | **** | 18,984 | ||
| Adjustments to reconcile consolidated net income to net cash provided by operating<br>activities: | ||||||
| Depreciation and amortization | **** | 106,974 | **** | 108,531 | ||
| Loss (gain) on disposal of fixed assets | **** | 3,825 | **** | (1,852 | ) | |
| Deferred income taxes | **** | (3,724 | ) | (5,073 | ) | |
| Decrease in trade receivables | **** | 69,573 | **** | 141,098 | ||
| Increase in inventories | **** | (7,391 | ) | (28,375 | ) | |
| Increase (decrease) in trade payables | **** | 18,898 | **** | (32,394 | ) | |
| Increase (decrease) in accrued income taxes | **** | 23,243 | **** | (1,821 | ) | |
| Decrease in accrued expenses | **** | (18,106 | ) | (40,611 | ) | |
| Decrease in accrued (prepaid) pension and severance cost | **** | (25,884 | ) | (6,539 | ) | |
| Other, net | **** | (7,891 | ) | (11,117 | ) | |
| Net cash provided by operating activities | **** | 272,605 | **** | 140,831 | ||
| Cash flows from investing activities: | ||||||
| Purchases of fixed assets | **** | (81,940 | ) | (81,800 | ) | |
| Proceeds from sale of fixed assets | **** | 991 | **** | 7,381 | ||
| Purchases of securities | **** | (1,279 | ) | (212 | ) | |
| Proceeds from sale and maturity of securities | **** | 201 | **** | 237 | ||
| (Increase) decrease in time deposits, net | **** | (20 | ) | 1,600 | ||
| Acquisitions of businesses, net of cash acquired | **** | - | **** | (127 | ) | |
| Other, net | **** | 1,654 | **** | 47 | ||
| Net cash used in investing activities | **** | (80,393 | ) | (72,874 | ) | |
| Cash flows from financing activities: | ||||||
| Proceeds from issuance of long-term debt | **** | 1,100 | **** | 2,100 | ||
| Repayments of long-term debt | **** | (46,100 | ) | (585 | ) | |
| (Decrease) increase in short-term loans, net | **** | (1,169 | ) | 157,553 | ||
| Dividends paid | **** | (41,831 | ) | (85,107 | ) | |
| Repurchases and reissuance of treasury stock, net | **** | (10 | ) | (50,008 | ) | |
| Other, net | **** | (1,705 | ) | (1,704 | ) | |
| Net cash (used in) provided by financing activities | **** | (89,715 | ) | 22,249 | ||
| Effect of exchange rate changes on cash and cash equivalents | **** | 13,384 | **** | (2,974 | ) | |
| Net change in cash and cash equivalents | **** | 115,881 | **** | 87,232 | ||
| Cash and cash equivalents at beginning of period | **** | 407,684 | **** | 412,814 | ||
| Cash and cash equivalents at end of period | **** | 523,565 | **** | 500,046 |
- 10 -
CANON INC. AND SUBSIDIARIES
CONSOLIDATED
- NOTE FOR GOING CONCERN ASSUMPTION
Not applicable.
6. SIGNIFICANT CHANGES IN CANON INC. SHAREHOLDERS’ EQUITY
None.
- BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES
Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.
- 11 -