FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of ….		April		……………………………………………… ,		2013

 

		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-………………..

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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.

 

 

Date….		April 25, 2013						By ……/s/…………… Shinichi    Aoyama ………
								(Signature)*
								Shinichi    Aoyama                          General Manager                          Consolidated Accounting Div.                          Canon Inc.

*Print the name and title of the signing officer under his signature.

The following materials are included.

1. CONSOLIDATED RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2013

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CONSOLIDATED RESULTS FOR

THE FIRST QUARTER ENDED MARCH 31, 2013

April 24, 2013

CONSOLIDATED RESULTS

 

(Millions of yen, thousands of U.S. dollars, except per share amounts)

 

			Actual																				Projected
		Three months ended March 31, 2013				Three months ended March 31, 2012				Change(%)								Three months ended March 31, 2013				Year ending December 31, 2013				Change(%)
Net sales		¥	816,653			¥	829,240				-				1.5			$	8,687,798			¥	3,980,000				+				14.4
Operating profit			54,773				82,679				-				33.8				582,691				450,000				+				39.0
Income before income taxes			60,255				92,724				-				35.0				641,011				450,000				+				31.4
Net income attributable to Canon Inc.		¥	40,913			¥	61,538				-				33.5			$	435,245			¥	290,000				+				29.1
Net income attributable to Canon Inc. stockholders per share:
- Basic		¥	35.49			¥	51.53				-				31.1			$	0.38			¥	251.56				+				31.5
- Diluted			35.49				51.53				-				31.1				0.38				-								-
		Actual
		As of March 31, 2013				As of December 31, 2012				Change(%)								As of March 31, 2013
Total assets		¥	3,934,093			¥	3,955,503				-				0.5			$	41,852,053
Canon Inc. stockholders’ equity		¥	2,643,526			¥	2,598,026				+				1.8			$	28,122,617

 

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 94 = U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of March 29, 2013, 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

 

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I. Operating Results and Financial Conditions

2013 First Quarter in Review

Looking back at the global economy in the first quarter of 2013, the pace of economic recovery from last year remained sluggish. The United States saw signs of improvement in such economic indicators as housing prices and the unemployment rate, while in Europe the economy slowed further due to a sense of unease over a possible recurrence of the financial crisis in Southern European nations. The speed of economic expansion in emerging countries such as China, India and Russia declined as a consequence of the worldwide economic slowdown. In Japan, despite improvements in consumer and business sentiment, the real economy failed to match expectations. Although the U.S. economy gave indications of a recovery, the global economy overall remained flat.

As for the markets in which Canon operates amid these conditions, demand for multifunction devices (MFDs) declined due to economic uncertainty and a deceleration in economic growth in emerging countries, while demand for laser printers decreased due to the sluggish economy. Demand for interchangeable lens digital cameras displayed strong growth all over the world, while demand for digital compact cameras continued to shrink both in developed countries and emerging countries. Overall demand for inkjet printers also waned due to the weak economy in Europe and other factors. In the industry and others sector, demand for semiconductor lithography equipment remained flat due to restrained capital expenditure for memory devices, while lithography equipment used in the production of flat panel displays (FPD) continued facing sluggish demand for large-size panels despite the healthy market for mid- and small-size panels used mainly in smartphones and tablet PCs.

The average value of the yen during the quarter was ¥92.76 against the U.S. dollar, a year-on-year depreciation of approximately ¥13, and ¥122.35 against the euro, a year-on-year depreciation of approximately ¥18.

Despite the steady sales growth of competitively priced products such as MFDs and laser printers, as well as increased sales volume of inkjet printers, and the positive effect of favorable currency exchange rates, net sales for the quarter declined 1.5% year on year to ¥816.7 billion (U.S.$8,688 million), owing to decreased demand for digital compact cameras and industrial equipment. The gross profit ratio rose 0.2 points year on year to 47.3%, thanks to the depreciation of the yen. Although Canon carried out Group-wide efforts to thoroughly reduce spending, operating expenses increased 7.4% year on year to ¥331.1 billion (U.S.$3,523 million) due to the negative effect of the depreciation of the yen. Consequently, first-quarter operating profit decreased by 33.8% to ¥54.8 billion (U.S.$583 million) compared with the corresponding period of the previous year. Other income decreased by ¥4.6 billion (U.S.$49 million) for the first quarter from the year-ago period due to a decrease in foreign currency exchange gains, and income before income taxes declined by 35.0% year on year to ¥60.3 billion (U.S.$641 million). Net income attributable to Canon Inc. decreased by 33.5% to ¥40.9 billion (U.S.$435 million) for the period.

Basic net income attributable to Canon Inc. stockholders per share for the quarter was ¥35.49 (U.S.$0.38), a decrease of ¥16.04 (U.S.$0.17) compared with the corresponding quarter of the previous year.

 

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Results by Segment

Looking at Canon’s quarterly performance by business unit, within the Office Business Unit, although the sales performance of color MFDs, led by the imageRUNNER ADVANCE C5200/C2200 series, increased from the year-ago period, total sales volume for both color and monochrome models decreased slightly due to a deterioration in business confidence in the United States and Asia. Sales of the Océ VarioPrint 135 series, which was jointly developed by Canon and Océ for production printing, showed solid growth. Laser printers recorded a slight increase in sales volume year on year owing to sales expansion efforts centered on new products introduced last year offering exceptional environmental performance through such features as energy-saving functions and quiet operation. As a result, sales for the business unit totaled ¥464.2 billion (U.S.$4,938 million), an increase of 6.0% year on year, while operating profit totaled ¥60.1 billion (U.S.$639 million) an increase of 13.7%.

Within the Imaging System Business Unit, sales volume of interchangeable lens digital cameras declined year on year due mainly to the concentration of supply from Canon that had accumulated in the market during the year-ago period, as a consequence of the flooding in Thailand the prior year. Canon, however, maintained its lead in the global market share. As for digital compact cameras, sales volume declined from the previous year due to the market slowdown and the increasing popularity of smartphones. With regard to inkjet printers, new products featuring improved designs and operability in addition to enhanced print quality and other basic functionality were recognized by the market, leading to a significant increase in sales volume from the year-ago period despite the sluggish market as a whole. As a result of the above, sales for the business unit declined by 1.8% to ¥298.1 billion (U.S.$3,171 million), while operating profit totaled ¥28.5 billion (U.S.$303 million), a decrease of 39.1%.

In the Industry and Others Business Unit, sales volume of semiconductor lithography equipment declined from the previous year due to the restrained capital expenditure for memory devices although investment in semiconductor lithography equipment to produce image sensors and in-car devices showed steady growth. As for FPD lithography equipment, shrinking demand for equipment used in the production of large-size panels, an area in which Canon excels, continued to pose challenging conditions. Consequently, sales for the segment totaled ¥75.1 billion (U.S.$799 million), a decrease of 31.6%, while operating profit decreased ¥11.5 billion (U.S.$122 million), posting a loss of ¥7.5 billion (U.S.$80 million).

Cash Flow

During the first quarter of 2013, although net income attributable to Canon Inc. decreased ¥20.6 billion (U.S.$219 million), cash flow from operating activities totaled ¥55.4 billion (U.S.$590 million), a decline of only ¥0.7 billion (U.S.$7 million) compared with the corresponding period of the previous year owing to improvements in working capital through such means as an increasing the collection of accounts receivable. Due to capital investment focused on new products, cash flow from investing activities decreased ¥4.5 billion (U.S.$48 million) year on year, totaling ¥73.4 billion (U.S.$781 million). Accordingly, free cash flow totaled negative ¥18.0 billion (U.S.$191 million), an increase of ¥3.8 billion (U.S.$41 million) compared with the corresponding year-ago period.

Cash flow from financing activities recorded an outlay of ¥84.1 billion (U.S.$894 million), mainly arising from the dividend payout. Owing to these factors, as well as the positive impact from foreign currency translation adjustments, cash and cash equivalents decreased by ¥73.7 billion (U.S.$784 million) year on year to ¥593.0 billion (U.S.$6,308 million).

 

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Outlook

As for the outlook in the second quarter onward, the global economy is expected to realize a moderate recovery in the latter half of the year. The U.S. economy is expected to achieve moderate growth thanks to improvements in unemployment conditions and the housing market. The recession in Europe will likely to be protracted, especially in Southern European countries. China and other emerging economies are expected to show steady growth along with a recovery in consumer spending. Japan, buoyed by aggressive fiscal stimulus, is expected to realize moderate growth in the latter half of the year.

In the businesses in which Canon is involved, demand for MFDs is projected to grow moderately mainly for color models fueled by the recovery of the global economy, while demand in the laser printer market is expected to realize a slight increase from last year. Demand for interchangeable lens digital cameras is expected to continue growing across all regions owing to an expanding user base in developed countries along with market growth in emerging countries. The digital compact camera market is projected to shrink, mainly among low-end models, due to the popularity of smartphones. As for inkjet printers, with the growth in emerging markets offsetting the decline in developed countries, demand overall is expected to remain around the same level as for the previous year. In the industrial equipment market, demand for semiconductor lithography equipment is expected to recover with a turnaround in capital expenditure for memory devices from the second half of the year, made possible by a recovered supply-demand balance in the memory device market. Demand for FPD lithography equipment will likely pick up in line with the recovery in demand for large-size panels.

With regard to currency exchange rates for the second quarter onward, on which Canon’s performance outlook is based, although measures are being taken to resolve the steep appreciation of the yen, backed by the Bank of Japan’s monetary easing policy, taking into account such uncertainties as the euro debt crisis and financial problem in the United States, Canon anticipates exchange rates of ¥95 to the U.S. dollar and ¥125 to the euro, representing depreciations of approximately ¥15 against the U.S. dollar, and approximately ¥21 against the euro compared with the annual average rates of the previous year.

Upon taking into consideration these foreign exchange rate assumptions and the current economic forecast, Canon projects full-year consolidated net sales in 2013 of ¥3,980.0 billion (U.S.$42,340 million), a year-on-year increase of 14.4%; operating profit of ¥450.0 billion (U.S.$4,787 million), a year-on-year increase of 39.0%; income before income taxes of ¥450.0 billion (U.S.$4,787 million), a year-on-year increase of 31.4%; and net income attributable to Canon Inc. of ¥290.0 billion (U.S.$3,085 million), a year-on-year increase of 29.1%.

Consolidated Outlook

Fiscal year

 

		Millions of yen
		Year ending December 31, 2013								Change   (B - A)						Year ended December 31, 2012				Change (%)   (B - C) / C
		Previous Outlook (A)				Revised Outlook (B)										Results (C)
Net sales		¥	3,810,000			¥	3,980,000			¥	170,000					¥	3,479,788				+14.4%
Operating profit			410,000				450,000				40,000						323,856				+39.0%
Income before income taxes			400,000				450,000				50,000						342,557				+31.4%
Net income attributable to Canon Inc.		¥	255,000			¥	290,000			¥	35,000					¥	224,564				+29.1%

 

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

II. Financial Statements

1.    CONSOLIDATED BALANCE SHEETS

 

		Millions of yen												Thousands of U.S. dollars
		As of    March 31,    2013				As of    December 31,    2012				Change				As of    March 31,    2013
ASSETS
Current assets:
Cash and cash equivalents		¥	592,992			¥	666,678			¥	(73,686)			$	6,308,426
Short-term investments			37,670				28,322				9,348				400,745
Trade receivables, net			512,031				573,375				(61,344)				5,447,138
Inventories			588,633				551,623				37,010				6,262,053
Prepaid expenses and other current assets			288,673				262,258				26,415				3,070,989
Total current assets			2,019,999				2,082,256				(62,257)				21,489,351
Noncurrent receivables			20,786				19,702				1,084				221,128
Investments			56,729				56,617				112				603,500
Property, plant and equipment, net			1,280,986				1,260,364				20,622				13,627,511
Intangible assets, net			137,363				135,736				1,627				1,461,309
Other assets			418,230				400,828				17,402				4,449,254
Total assets		¥	3,934,093			¥	3,955,503			¥	(21,410)			$	41,852,053
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans and current portion of long-term debt		¥	1,690			¥	1,866			¥	(176)			$	17,979
Trade payables			314,144				325,235				(11,091)				3,341,957
Accrued income taxes			34,435				60,057				(25,622)				366,330
Accrued expenses			277,810				291,348				(13,538)				2,955,426
Other current liabilities			139,022				165,929				(26,907)				1,478,957
Total current liabilities			767,101				844,435				(77,334)				8,160,649
Long-term debt, excluding current installments			1,784				2,117				(333)				18,979
Accrued pension and severance cost			277,444				272,131				5,313				2,951,532
Other noncurrent liabilities			87,166				82,518				4,648				927,297
Total liabilities			1,133,495				1,201,201				(67,706)				12,058,457
Equity:
Canon Inc. stockholders’ equity:
Common stock			174,762				174,762				-				1,859,170
Additional paid-in capital			401,182				401,547				(365)				4,267,894
Legal reserve			62,092				61,663				429				660,553
Retained earnings			3,098,776				3,138,976				(40,200)				32,965,702
Accumulated other comprehensive income (loss)			(281,610)				(367,249)				85,639				(2,995,851)
Treasury stock, at cost			(811,676)				(811,673)				(3)				(8,634,851)
Total Canon Inc. stockholders’ equity			2,643,526				2,598,026				45,500				28,122,617
Noncontrolling interests			157,072				156,276				796				1,670,979
Total equity			2,800,598				2,754,302				46,296				29,793,596
Total liabilities and equity		¥	3,934,093			¥	3,955,503			¥	(21,410)			$	41,852,053
		Millions of yen												Thousands of U.S. dollars
		As of    March 31,    2013				As of    December 31,    2012								As of    March 31,    2013
Notes:
1. Allowance for doubtful receivables		¥	13,472			¥	12,970							$	143,319
2. Accumulated depreciation			2,230,979				2,159,453								23,733,819
3. Accumulated other comprehensive income (loss):
Foreign currency translation adjustments			(162,626)				(247,734)								(1,730,064)
Net unrealized gains and losses on securities			4,939				4,146								52,543
Net gains and losses on derivative instruments			(3,529)				(4,462)								(37,543)
Pension liability adjustments			(120,394)				(119,199)								(1,280,787)

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

2.    CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Consolidated statements of income

 

		Millions of yen																Thousands of U.S. dollars
		Three months ended March 31, 2013				Three months ended March 31, 2012				Change(%)								Three months ended March 31, 2013
Net sales		¥	816,653			¥	829,240				-				1.5			$	8,687,798
Cost of sales			430,740				438,342												4,582,341
Gross profit			385,913				390,898				-				1.3				4,105,457
Operating expenses:
Selling, general and administrative expenses			257,624				236,188												2,740,681
Research and development expenses			73,516				72,031												782,085
			331,140				308,219												3,522,766
Operating profit			54,773				82,679				-				33.8				582,691
Other income (deductions):
Interest and dividend income			1,036				1,562												11,021
Interest expense			(105)				(109)												(1,117)
Other, net			4,551				8,592												48,416
			5,482				10,045												58,320
Income before income taxes			60,255				92,724				-				35.0				641,011
Income taxes			18,528				29,114												197,107
Consolidated net income			41,727				63,610												443,904
Less: Net income attributable to noncontrolling interests			814				2,072												8,659
Net income attributable to Canon Inc.		¥	40,913			¥	61,538				-				33.5			$	435,245
Consolidated statements of comprehensive income
		Millions of yen																Thousands of U.S. dollars
		Three months ended March 31, 2013				Three months ended March 31, 2012				Change(%)								Three months ended March 31, 2013
Consolidated net income		¥	41,727			¥	63,610				-				34.4			$	443,904
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments			85,600				70,358												910,639
Net unrealized gains and losses on securities			1,126				3,997												11,979
Net gains and losses on derivative instruments			935				(4,375)												9,947
Pension liability adjustments			(1,016)				337												(10,809)
			86,645				70,317												921,756
Comprehensive income			128,372				133,927				-				4.1				1,365,660
Less: Comprehensive income attributable to      noncontrolling interests			1,628				2,916												17,320
Comprehensive income attributable to Canon Inc.		¥	126,744			¥	131,011				-				3.3			$	1,348,340

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

3.    DETAILS OF SALES

 

Notes: 1. The primary products included in each of the segments are as follows:

  2. The principal countries and regions included in each regional category are as follows:

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

4.    CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

5.    NOTE FOR GOING CONCERN ASSUMPTION

      Not applicable.

6.    SEGMENT INFORMATION

 

(1)  SEGMENT INFORMATION BY BUSINESS UNIT

 

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

(2)  SEGMENT INFORMATION BY GEOGRAPHIC AREA

 

				Millions of yen												Thousands of U.S. dollars
				Three months ended March 31, 2013				Three months ended March 31, 2012				Change(%)				Three months ended March 31, 2013
Japan
Net sales:
		External customers		¥	171,874			¥	209,215				-            17.8			$	1,828,447
		Intersegment			425,726				460,173				-              7.5				4,529,000
		Total			597,600				669,388				-            10.7				6,357,447
Operating cost and expenses					533,827				596,832				-            10.6				5,679,011
Operating profit				¥	63,773			¥	72,556				-            12.1			$	678,436
Americas
Net sales:
		External customers		¥	229,375			¥	207,002				+            10.8			$	2,440,160
		Intersegment			2,578				5,218				-            50.6				27,425
		Total			231,953				212,220				+              9.3				2,467,585
Operating cost and expenses					228,627				207,988				+              9.9				2,432,202
Operating profit				¥	3,326			¥	4,232				-            21.4			$	35,383
Europe
Net sales:
		External customers		¥	246,729			¥	244,036				+              1.1			$	2,624,777
		Intersegment			11,731				1,526				+          668.7				124,797
		Total			258,460				245,562				+              5.3				2,749,574
Operating cost and expenses					264,474				234,669				+            12.7				2,813,553
Operating profit (loss)				¥	(6,014)			¥	10,893				-			$	(63,979)
Asia and Oceania
Net sales:
		External customers		¥	168,675			¥	168,987				-              0.2			$	1,794,414
		Intersegment			190,528				197,206				-              3.4				2,026,895
		Total			359,203				366,193				-              1.9				3,821,309
Operating cost and expenses					345,014				345,344				-              0.1				3,670,362
Operating profit				¥	14,189			¥	20,849				-            31.9			$	150,947
Corporate and Eliminations
Net sales:
		External customers		¥	-			¥	-				-			$	-
		Intersegment			(630,563)				(664,123)				-				(6,708,117)
		Total			(630,563)				(664,123)				-				(6,708,117)
Operating cost and expenses					(610,062)				(638,272)				-				(6,490,021)
Operating profit				¥	(20,501)			¥	(25,851)				-			$	(218,096)
Consolidated
Net sales:
		External customers		¥	816,653			¥	829,240				-              1.5			$	8,687,798
		Intersegment			-				-				-				-
		Total			816,653				829,240				-              1.5				8,687,798
Operating cost and expenses					761,880				746,561				+              2.1				8,105,107
Operating profit				¥	54,773			¥	82,679				-            33.8			$	582,691

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

7.    SIGNIFICANT CHANGES IN CANON INC. STOCKHOLDERS’ EQUITY

      None.

8.    BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

(1)  GROUP POSITION

 

1.

Number of Group Companies

 

		March 31, 2013				December 31, 2012				Change
Subsidiaries			281				275				6
Affiliates			9				9				-
Total			290				284				6

 

2.

Change in Group Entities

 

Subsidiaries
Addition:		16 companies
Removal:		10 companies

 

3.

Subsidiaries Listed on Domestic Stock Exchange

Tokyo Stock Exchange (1st section): Canon Marketing Japan Inc., Canon Electronics Inc.

(2)  SIGNIFICANT ACCOUNTING POLICIES

Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.

 

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Canon Inc.

April 24, 2013

CONSOLIDATED FINANCIAL RESULTS FOR

THE FIRST QUARTER ENDED MARCH 31, 2013

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

 

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Canon Inc.

 

1. SALES BY GEOGRAPHIC AREA AND BUSINESS UNIT		(Millions of yen)

				2013								2012										Change year over year
				1st quarter				Year (P)				1st quarter				Year						1st quarter				Year
Japan
		Office			90,534				-				92,531				368,939						-2.2%				-
		Imaging System			40,094				-				42,348				213,465						-5.3%				-
		Industry and Others			29,090				-				41,996				137,882						-30.7%				-
		Total			159,718				730,000				176,875				720,286						-9.7%				+1.3%
Overseas
		Office			371,596				-				344,395				1,383,021						+7.9%				-
		Imaging System			257,833				-				260,669				1,190,929						-1.1%				-
		Industry and Others			27,506				-				47,301				185,552						-41.8%				-
		Total			656,935				3,250,000				652,365				2,759,502						+0.7%				+17.8%
Americas
		Office			142,983				-				125,721				530,382						+13.7%				-
		Imaging System			79,474				-				73,537				366,888						+8.1%				-
		Industry and Others			9,545				-				11,090				42,603						-13.9%				-
		Total			232,002				1,110,900				210,348				939,873						+10.3%				+18.2%
Europe
		Office			163,809				-				151,581				597,341						+8.1%				-
		Imaging System			77,570				-				87,458				394,612						-11.3%				-
		Industry and Others			4,986				-				5,414				22,085						-7.9%				-
		Total			246,365				1,179,400				244,453				1,014,038						+0.8%				+16.3%
Asia and Oceania
		Office			64,804				-				67,093				255,298						-3.4%				-
		Imaging System			100,789				-				99,674				429,429						+1.1%				-
		Industry and Others			12,975				-				30,797				120,864						-57.9%				-
		Total			178,568				959,700				197,564				805,591						-9.6%				+19.1%
Intersegment
		Office			2,076				-				1,113				5,615						+86.5%				-
		Imaging System			180				-				459				1,577						-60.8%				-
		Industry and Others			18,471				-				20,485				84,406						-9.8%				-
		Eliminations			(20,727	)			-				(22,057	)			(91,598	)					-				-
		Total			0				0				0				0						-				-
Total
		Office			464,206				2,027,400				438,039				1,757,575						+6.0%				+15.4%
		Imaging System			298,107				1,635,300				303,476				1,405,971						-1.8%				+16.3%
		Industry and Others			75,067				423,000				109,782				407,840						-31.6%				+3.7%
		Eliminations			(20,727	)			(105,700	)			(22,057	)			(91,598	)					-				-
		Total			816,653				3,980,000				829,240				3,479,788						-1.5%				+14.4%

(P)=Projection

 

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Canon Inc.

 

2. SEGMENT INFORMATION BY BUSINESS UNIT

(Millions of yen)

				2013								2012										Change year  over year
					1st quarter				Year (P)				1st quarter				Year						1st quarter			Year
Office
		External customers			462,130				2,019,100				436,926				1,751,960						+5.8%			+15.2%
		Intersegment			2,076				8,300				1,113				5,615						+86.5%			+47.8%
		Total sales			464,206				2,027,400				438,039				1,757,575						+6.0%			+15.4%
		Operating profit			60,071				272,600				52,846				203,578						+13.7%			+33.9%
		% of sales			12.9%				13.4%				12.1%				11.6%						-			-
Imaging System
		External customers			297,927				1,634,300				303,017				1,404,394						-1.7%			+16.4%
		Intersegment			180				1,000				459				1,577						-60.8%			-36.6%
		Total sales			298,107				1,635,300				303,476				1,405,971						-1.8%			+16.3%
		Operating profit			28,481				305,900				46,734				210,318						-39.1%			+45.4%
		% of sales			9.6%				18.7%				15.4%				15.0%						-			-
Industry and Others
		External customers			56,596				326,600				89,297				323,434						-36.6%			+1.0%
		Intersegment			18,471				96,400				20,485				84,406						-9.8%			+14.2%
		Total sales			75,067				423,000				109,782				407,840						-31.6%			+3.7%
		Operating profit			(7,536	)			(17,700	)			3,993				5,910						-			-
		% of sales			-10.0%				-4.2%				3.6%				1.4%						-			-
Corporate and Eliminations
		External customers			-				-				-				-						-			-
		Intersegment			(20,727	)			(105,700	)			(22,057	)			(91,598	)					-			-
		Total sales			(20,727	)			(105,700	)			(22,057	)			(91,598	)					-			-
		Operating profit			(26,243	)			(110,800	)			(20,894	)			(95,950	)					-			-
Consolidated
		External customers			816,653				3,980,000				829,240				3,479,788						-1.5%			+14.4%
		Intersegment			-				-				-				-						-			-
		Total sales			816,653				3,980,000				829,240				3,479,788						-1.5%			+14.4%
		Operating profit			54,773				450,000				82,679				323,856						-33.8%			+39.0%
		% of sales			6.7%				11.3%				10.0%				9.3%						-			-
																				(P)=Projection
3. OTHER INCOME / DEDUCTIONS																						(Millions of yen)
				2013								2012										Change year over year
				1st quarter				Year (P)				1st quarter				Year						1st quarter				Year
		Interest and dividend, net			931				4,000				1,453				5,770						(522	)		(1,770)
		Forex gain (loss)			3,182				(2,200	)			9,307				9,130						(6,125	)		(11,330)
		Equity earnings (loss) of affiliated companies			(86	)			600				465				610						(551	)		(10)
		Other, net			1,455				(2,400	)			(1,180	)			3,191						+2,635			(5,591)
		Total			5,482				0				10,045				18,701						(4,563	)		(18,701)
																							(P)=Projection

 

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Canon Inc.

 

4. BREAKDOWN OF PRODUCT SALES WITHIN BUSINESS UNIT
				2013				2012
				1st quarter		Year (P)		1st quarter		Year
Office
		Monochrome copiers		16%		16%		16%		16%
		Color copiers		19%		19%		19%		19%
		Printers		43%		42%		45%		44%
		Others		22%		23%		20%		21%
Imaging System
		Cameras		65%		71%		70%		70%
		Inkjet printers		26%		22%		21%		22%
		Others		9%		7%		9%		8%
Industry and Others
		Lithography equipment		9%		18%		17%		15%
		Others		91%		82%		83%		85%
										(P)=Projection
5. SALES GROWTH IN LOCAL CURRENCY (Year over year)
				2013
				1st quarter		Year (P)
Office
		Japan		-2.2%		-
		Overseas		-7.6%		-
		Total		-6.2%		+0.6%
Imaging System
		Japan		-5.3%		-
		Overseas		-15.3%		-
		Total		-14.0%		+0.2%
Industry and Others
		Japan		-30.7%		-
		Overseas		-46.7%		-
		Total		-33.7%		+0.3%
Total
		Japan		-9.7%		+1.3%
		Overseas		-13.5%		-0.3%
		Americas		-5.4%		0.0%
		Europe		-13.9%		-3.0%
		Asia and Oceania		-21.8%		+2.7%
		Total		-12.7%		0.0%
						(P)=Projection

 

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Canon Inc.

6. PROFITABILITY

				2013								2012
				1st quarter				Year (P)				1st quarter				Year
ROE *1					6.2%				10.7%				9.6%				8.7%
ROA *2					4.1%				7.1%				6.2%				5.7%
													(P)=Projection
*1 Return on Equity; Based on Net Income attributable to Canon Inc. and Total Canon Inc. Stockholders’ Equity *2 Return on Assets; Based on Net Income attributable to Canon Inc.   7. IMPACT OF FOREIGN EXCHANGE RATES
(1) Exchange rates																					(Yen	)
				2013												2012
				1st quarter				2nd-4th quarter (P)				Year (P)				1st quarter				Year
		Yen/US$			92.76				95.00				94.51				79.72				79.96
		Yen/Euro			122.35				125.00				124.45				104.57				102.80
																	(P)=Projection
(2) Impact of foreign exchange rates on sales (Year over year)								(Billions of yen)
				2013
				1st quarter				Year (P)
		US$			+46.7				+224.8
		Euro			+29.1				+166.1
		Other currencies			+10.5				+76.6
		Total			+86.3				+467.5
					(P)=Projection
(3) Impact of foreign exchange rates per yen				(Billions of yen)
				2013
				2nd-4th quarter (P)
On sales
		US$			15.0
		Euro			6.4
On operating profit
		US$			5.8
		Euro			3.5
					(P)=Projection
8. STATEMENTS OF CASH FLOWS													(Millions of yen)
				2013								2012
				1st quarter				Year (P)				1st quarter				Year
Net cash provided by operating activities					55,414				480,000				56,126				384,077
Net cash used in investing activities					(73,403	)			(350,000	)			(77,875	)			(212,740	)
Free cash flow					(17,989	)			130,000				(21,749	)			171,337
Net cash used in financing activities					(84,061	)			(160,000	)			(131,316	)			(319,739	)
Effect of exchange rate changes on cash and cash equivalents					28,364				33,300				25,322				41,853
Net change in cash and cash equivalents					(73,686	)			3,300				(127,743	)			(106,549	)
Cash and cash equivalents at end of period					592,992				670,000				645,484				666,678
													(P)=Projection

 

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Canon Inc.

 

9. R&D EXPENDITURE																(Millions of yen)
				2013								2012
				1st quarter				Year (P)				1st quarter				Year
		Office			24,658				-				23,299				99,484
		Imaging System			20,037				-				19,872				83,948
		Industry and Others			5,814				-				6,220				25,635
		Corporate and Eliminations			23,007				-				22,640				87,397
		Total			73,516				315,000				72,031				296,464
		% of sales			9.0%				7.9%				8.7%				8.5%
																	(P)=Projection
10. INCREASE IN PP&E & DEPRECIATION AND AMORTIZATION																(Millions of yen)
				2013								2012
				1st quarter				Year (P)				1st quarter				Year
		Increase in PP&E			50,793				260,000				73,664				270,457
		Depreciation and amortization			64,340				265,000				59,873				258,133
																	(P)=Projection
11. INVENTORIES
(1) Inventories												(Millions of yen)
				2013				2012				Difference
				Mar.31				Dec.31
		Office			217,117				201,661				+15,456
		Imaging System			255,807				245,973				+9,834
		Industry and Others			115,709				103,989				+11,720
		Total			588,633				551,623				+37,010
(2) Inventories/Sales*												(Days)
				2013				2012				Difference
				Mar.31				Dec.31
		Office			43				43				0
		Imaging System			66				61				+5
		Industry and Others			152				124				+28
		Total			61				57				+4
*Index based on the previous six months sales.
12. DEBT RATIO
				2013				2012				Difference
				Mar.31				Dec.31
		Total debt / Total assets			0.1%				0.1%				0.0%
13. OVERSEAS PRODUCTION RATIO
				2013				2012
				1st quarter				Year
		Overseas production ratio			58%				52%
14. NUMBER OF EMPLOYEES
				2013				2012				Difference
				Mar.31				Dec.31
		Japan			69,765				70,234				(469	)
		Overseas			125,214				126,734				(1,520	)
		Total			194,979				196,968				(1,989	)

 

- S5 -