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		……………………………………………… ,		2012

 

		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 26, 2012		.				By ……/s/…………… Toshihide    Aoki ………
								(Signature)*
								Toshihide    Aoki                          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, 2012

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CONSOLIDATED RESULTS FOR

THE FIRST QUARTER ENDED MARCH 31, 2012

April 25, 2012

CONSOLIDATED RESULTS

 

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

 

			Actual																				Projected
		Three months ended March 31, 2012				Three months ended March 31, 2011				Change(%)								Three months ended March 31, 2012				Year ending December 31, 2012				Change(%)
Net sales		¥	829,240			¥	839,191				-				1.2			$	10,112,683			¥	3,900,000				+				9.6
Operating profit			82,679				82,502				+				0.2				1,008,280				450,000				+				19.0
Income before income taxes			92,724				82,032				+				13.0				1,130,780				460,000				+				22.8
Net income attributable to Canon Inc.		¥	61,538			¥	55,462				+				11.0			$	750,463			¥	290,000				+				16.6
Net income attributable to Canon Inc. stockholders per share:
- Basic		¥	51.53			¥	45.15				+				14.1			$	0.63			¥	244.31				+				19.5
- Diluted			51.53				45.14				+				14.2				0.63				-								-
		Actual
		As of March 31, 2012				As of December 31, 2011				Change(%)								As of March 31, 2012
Total assets		¥	3,949,681			¥	3,930,727				+				0.5			$	48,166,841
Canon Inc. stockholders’ equity		¥	2,556,380			¥	2,551,132				+				0.2			$	31,175,366

 

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 82 = U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of March 30, 2012, 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

2012 First Quarter in Review

Looking back at the global economy in the first quarter of 2012, in the United States, the economy showed positive signs of recovery as consumer confidence picked up slightly while the European economy recorded negative growth reflecting the impact of the debt crisis on the real economy. Growth in emerging economies, such as China and India, slowed down somewhat due to lagging exports and investment while within Japan, production activities recovered from the previous year’s earthquake in Japan and flooding in Thailand. The global economy as a whole realized moderate growth owing to a short-term alleviation of the downward risks related to the debt crisis in Europe and continued domestic demand in emerging economies.

As for the markets in which Canon operates amid these conditions, within the office equipment market, while demand for color multifunction devices (MFDs) continued to display growth, demand within the laser printer market cooled down mainly in Europe. With regard to the consumer products market, demand for digital single-lens reflex (SLR) cameras continued to realize robust growth in all regions. As for inkjet printers, although demand remained solid in emerging economies, sales overall declined due to product supply shortages and other factors. In the industry and others sector, although the market for semiconductor lithography equipment recorded solid growth, demand for equipment used to manufacture large-size liquid crystal display (LCD) panels remained sluggish.

The average values of the yen during the first quarter of the year were ¥79.72 to the U.S. dollar, a year-on-year appreciation of approximately ¥3, and ¥104.57 to the euro, a year-on-year appreciation of approximately ¥8.

Despite improvements in such factors as the downward risks of the global economy that were felt at the beginning of the year and the historically strong yen, the business environment remained harsh in the first quarter as business sentiment, mainly in Europe, worsened and the average values of the yen appreciated. Amid this environment, net sales totaled ¥829.2 billion (U.S.$10,113 million), a year-on-year decrease of just 1.2%, owing to Group-wide efforts to achieve sales growth. The gross profit ratio declined by 1.3 points from the year-ago period to 47.1%, mainly due to the effects of the strong yen and product mix, while gross profit totaled ¥390.9 billion (U.S.$4,767 million), a year-on-year decrease of 3.8%. Operating expenses decreased by 4.8% to ¥308.2 billion (U.S.$3,759 million), owing to efforts to thoroughly reduce spending by controlling expenses more efficiently. As a result, first-quarter operating profit increased by 0.2% to ¥82.7 billion (U.S.$1,008 million). Other income (deductions) achieved a turnaround of ¥10.5 billion (U.S.$128 million) owing to an improvement in foreign currency exchange losses, resulting in income before income taxes of ¥92.7 billion (U.S.$1,131 million), an increase of 13.0% from the year-ago period. With net income attributable to Canon Inc. increasing by 11.0% to ¥61.5 billion (U.S.$750 million) for the quarter, operating profit, income before income taxes and net income attributable to Canon Inc. have realized year-on-year increases for three consecutive quarters.

Basic net income attributable to Canon Inc. stockholders per share was ¥51.53 (U.S.$0.63), an increase of ¥6.38 (U.S.$0.08) 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, amid the admirable sales performance of color MFDs led by the imageRUNNER ADVANCE C5000/C2000 series, sales volumes of both monochrome and color MFDs increased from the year-ago period. In addition, sales of imagePRESS C7010VPS-series color MFDs for production printing, machines that were jointly developed by Canon and Océ, gained momentum and contributed to increased unit sales of production printing devices. As for laser printers, deteriorating business sentiment along with channel inventory adjustment led to a temporary slowdown in demand mainly in Europe and the United States. Additionally, affected by the appreciation of the yen, sales for the business unit totaled ¥438.0 billion (U.S.$5,342 million), a decline of 8.9% year on year, while operating profit totaled ¥52.8 billion (U.S.$644 million), a decrease of 16.2%.

Within the Consumer Business Unit, unit sales of digital SLR cameras recorded significant growth for such products as the competitively priced EOS Digital Rebel T3i (EOS 600D) and the advanced-amateur-model EOS 5D Mark II and EOS 60D, driven by efforts to boost production and expand sales in response to heightened demand. The EOS 5D Mark III, which was released in March 2012, displayed robust growth and also contributed to increased sales. As for compact digital cameras, sales of four new ELPH (IXUS)-series and six new PowerShot-series models launched in February this year recorded healthy growth. With regard to inkjet printers, sales volumes declined as the effects of the previous year’s flooding in Thailand on production continued to be felt through February this year. Furthermore, the company successfully launched its Cinema EOS System lineup of professional cinematography products, targeting Hollywood and the broader motion picture and television production market, along with the new DreamLabo 5000, targeting the commercial photo printing market. As a result, sales for the Consumer Business Unit increased by 4.8% year on year to ¥303.5 billion (U.S.$3,701 million), while operating profit increased by 17.1% to ¥46.7 billion (U.S.$570 million).

In the Industry and Others Business Unit, i-line steppers recorded healthy sales thanks to active investment in semiconductor lithography equipment to produce digital semiconductor devices, which are used in smartphones. Unit sales of LCD lithography equipment, on the other hand, dropped substantially in the face of shrinking demand for equipment used in the production of large-size panels, an area in which Canon is particularly strong. Additionally, sales of equipment used to manufacture organic LED (Light-Emitting Diode) panels increased owing to active investment by organic LED panel manufacturers. Consequently, sales for the segment totaled ¥109.8 billion (U.S.$1,339 million), an increase of 19.4%, while operating profit totaled ¥4.0 billion (U.S.$49 million), a decrease of 39.5% from the year-ago period.

Cash Flow

During the first quarter of 2012, cash flow from operating activities totaled ¥56.1 billion (U.S.$684 million), a decrease of ¥15.8 billion (U.S.$193 million) compared with the year-ago period, owing to the effects of the optimizing of inventory levels in accordance with the recovery in production. Due to increased capital investment relevant to production, cash flow from investing activities increased ¥31.4 billion (U.S.$382 million) year on year to ¥77.9 billion (U.S.$950 million). Accordingly, free cash flow totaled negative ¥21.8 billion (U.S.$266 million), a decrease of ¥47.2 billion (U.S.$575 million) from the previous year.

Cash flow from financing activities recorded an outlay of ¥131.3 billion (U.S.$1,601 million), mainly arising from the dividend payout and the repurchase of treasury stock. Owing to these factors, as well as the positive impact from foreign currency translation adjustments, cash and cash equivalents decreased by ¥127.7 billion (U.S.$1,558 million) year on year to ¥645.5 billion (U.S.$7,872 million).

 

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Outlook

As for the outlook in the second quarter onward, amid lingering uncertainty over the sovereign debt crisis in Europe, the global economy is expected to take considerable time before realizing a full recovery. The U.S. economy faces such downward risks as high unemployment and falling housing prices, whereas the European economy is projected to remain stagnant for the time being. Although growth in emerging economies, such as China and India, is expected to slow down somewhat, expanded domestic demand in these markets is expected to drive global economic growth. As for the Japanese economy, despite the challenging environment, growing reconstruction demand points to a strengthening recovery trend.

In the businesses in which Canon is involved, within the office equipment market, demand for such products as MFDs is projected to grow modestly while the laser printer market is expected to follow a path of recovery in the second half of the year. As for the consumer products market, demand for digital SLR cameras is anticipated to continue achieving robust growth worldwide while demand for compact digital cameras should grow mainly for high value-added models with high-definition screens or networking technology functions. Although demand for inkjet printers will remain solid in emerging economies, demand overall will likely remain at the same level as the previous year due to lingering concerns over declining business sentiment in Europe. In the industry and others market, while demand for semiconductor lithography equipment is expected to increase steadily for the time being, there is a growing sense of uncertainty regarding the outlook for the second half.

With regard to currency exchange rates for the second quarter onward, on which Canon’s performance outlook is based, despite the uncertain economic prospects, Canon anticipates exchange rates for the period of ¥80 to the U.S. dollar and ¥105 to the euro. Upon taking into consideration the abovementioned foreign exchange rate assumptions and the current economic forecasts, Canon projects full-year consolidated net sales of ¥3,900.0 billion (U.S.$47,561 million), a year-on-year increase of 9.6%; operating profit of ¥450.0 billion (U.S.$5,488 million), a year-on-year increase of 19.0%; income before income taxes of ¥460.0 billion (U.S.$5,610 million), a year-on-year increase of 22.8%; and net income attributable to Canon Inc. of ¥290.0 billion (U.S.$3,537 million), a year-on-year increase of 16.6%.

Consolidated Outlook

Fiscal year

 

		Millions of yen
		Year ending December 31, 2012								Change   (B - A)						Year ended December 31, 2011				Change (%)   (B - C) / C
		Previous Outlook (A)				Revised Outlook (B)										Results (C)
Net sales		¥	3,750,000			¥	3,900,000			¥	150,000					¥	3,557,433				+9.6%
Operating profit			390,000				450,000				60,000						378,071				+19.0%
Income before income taxes			390,000				460,000				70,000						374,524				+22.8%
Net income attributable to Canon Inc.		¥	250,000			¥	290,000			¥	40,000					¥	248,630				+16.6%

 

 

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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,    2012				As of    December 31,    2011				Change				As of    March 31,    2012
ASSETS
Current assets:
Cash and cash equivalents		¥	645,484			¥	773,227			¥	(127,743)			$	7,871,756
Short-term investments			131,587				125,517				6,070				1,604,720
Trade receivables, net			512,338				533,208				(20,870)				6,248,024
Inventories			553,864				476,704				77,160				6,754,439
Prepaid expenses and other current assets			277,320				244,649				32,671				3,381,951
Total current assets			2,120,593				2,153,305				(32,712)				25,860,890
Noncurrent receivables			16,238				16,772				(534)				198,024
Investments			57,705				51,790				5,915				703,720
Property, plant and equipment, net			1,222,826				1,190,836				31,990				14,912,512
Intangible assets, net			139,685				138,030				1,655				1,703,476
Other assets			392,634				379,994				12,640				4,788,219
Total assets		¥	3,949,681			¥	3,930,727			¥	18,954			$	48,166,841
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans and current portion of long-term debt		¥	11,303			¥	8,343			¥	2,960			$	137,841
Trade payables			392,414				380,532				11,882				4,785,537
Accrued income taxes			43,532				45,900				(2,368)				530,878
Accrued expenses			298,759				299,422				(663)				3,643,402
Other current liabilities			155,709				159,651				(3,942)				1,898,891
Total current liabilities			901,717				893,848				7,869				10,996,549
Long-term debt, excluding current installments			3,237				3,368				(131)				39,476
Accrued pension and severance cost			255,907				249,604				6,303				3,120,817
Other noncurrent liabilities			74,231				70,240				3,991				905,255
Total liabilities			1,235,092				1,217,060				18,032				15,062,097
Equity:
Canon Inc. stockholders’ equity:
Common stock			174,762				174,762				-				2,131,244
Additional paid-in capital			399,164				401,572				(2,408)				4,867,854
Legal reserve			59,923				59,004				919				730,768
Retained earnings			3,047,821				3,059,298				(11,477)				37,168,549
Accumulated other comprehensive income (loss)			(413,574)				(481,773)				68,199				(5,043,585)
Treasury stock, at cost			(711,716)				(661,731)				(49,985)				(8,679,464)
Total Canon Inc. stockholders’ equity			2,556,380				2,551,132				5,248				31,175,366
Noncontrolling interests			158,209				162,535				(4,326)				1,929,378
Total equity			2,714,589				2,713,667				922				33,104,744
Total liabilities and equity		¥	3,949,681			¥	3,930,727			¥	18,954			$	48,166,841
		Millions of yen												Thousands of U.S. dollars
		As of    March 31,    2012				As of    December 31,    2011								As of     March 31,    2012
Notes:
1. Allowance for doubtful receivables		¥	12,286			¥	11,563							$	149,829
2. Accumulated depreciation			2,081,622				2,038,682								25,385,634
3. Accumulated other comprehensive income (loss):
Foreign currency translation adjustments			(310,511)				(378,863)								(3,786,720)
Net unrealized gains and losses on securities			4,802				1,003								58,561
Net gains and losses on derivative instruments			(3,954)				455								(48,220)
Pension liability adjustments			(103,911)				(104,368)								(1,267,206)

 

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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, 2012				Three months ended March  31, 2011				Change(%)								Three  months ended March 31, 2012
Net sales		¥	829,240			¥	839,191				-				1.2			$	10,112,683
Cost of sales			438,342				432,954												5,345,634
Gross profit			390,898				406,237				-				3.8				4,767,049
Operating expenses:
Selling, general and administrative expenses			236,188				253,640												2,880,342
Research and development expenses			72,031				70,095												878,427
			308,219				323,735												3,758,769
Operating profit			82,679				82,502				+				0.2				1,008,280
Other income (deductions):
Interest and dividend income			1,562				1,636												19,049
Interest expense			(109)				(438)												(1,329)
Other, net			8,592				(1,668)												104,780
			10,045				(470)												122,500
Income before income taxes			92,724				82,032				+				13.0				1,130,780
Income taxes			29,114				26,052												355,048
Consolidated net income			63,610				55,980												775,732
Less: Net income attributable to noncontrolling interests			2,072				518												25,269
Net income attributable to Canon Inc.		¥	61,538			¥	55,462				+				11.0			$	750,463
Consolidated statements of comprehensive income
		Millions of yen																Thousands of U.S. dollars
		Three  months ended March 31, 2012				Three months ended March  31, 2011				Change(%)								Three months ended March 31, 2012
Consolidated net income		¥	63,610			¥	55,980				+				13.6			$	775,732
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments			70,358				39,644												858,024
Net unrealized gains and losses on securities			3,997				292												48,744
Net gains and losses on derivative instruments			(4,375)				(1,440)												(53,354)
Pension liability adjustments			337				142												4,110
			70,317				38,638												857,524
Comprehensive income			133,927				94,618				+				41.5				1,633,256
Less: Comprehensive income attributable to      noncontrolling interests			2,916				1,293												35,561
Comprehensive income attributable to Canon Inc.		¥	131,011			¥	93,325				+				40.4			$	1,597,695

 

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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, 2012				Three months ended March  31, 2011				Change(%)				Three months ended March 31, 2012
Japan
Net sales:
		External customers		¥	209,215			¥	177,476				+            17.9			$	2,551,402
		Intersegment			460,173				442,932				+              3.9				5,611,866
		Total			669,388				620,408				+              7.9				8,163,268
Operating cost and expenses					596,832				533,874				+            11.8				7,278,439
Operating profit				¥	72,556			¥	86,534				-            16.2			$	884,829
Americas
Net sales:
		External customers		¥	207,002			¥	215,677				-              4.0			$	2,524,415
		Intersegment			5,218				3,113				+            67.6				63,634
		Total			212,220				218,790				-              3.0				2,588,049
Operating cost and expenses					207,988				217,745				-              4.5				2,536,439
Operating profit					¥4,232			¥	1,045				+          305.0			$	51,610
Europe
Net sales:
		External customers		¥	244,036			¥	277,713				-            12.1			$	2,976,049
		Intersegment			1,526				882				+            73.0				18,610
		Total			245,562				278,595				-            11.9				2,994,659
Operating cost and expenses					234,669				267,276				-            12.2				2,861,818
Operating profit				¥	10,893			¥	11,319				-              3.8			$	132,841
Asia and Oceania
Net sales:
		External customers		¥	168,987			¥	168,325				+              0.4			$	2,060,817
		Intersegment			197,206				185,858				+              6.1				2,404,951
		Total			366,193				354,183				+              3.4				4,465,768
Operating cost and expenses					345,344				339,907				+              1.6				4,211,512
Operating profit				¥	20,849			¥	14,276				+            46.0			$	254,256
Corporate and Eliminations
Net sales:
		External customers		¥	-			¥	-				-			$	-
		Intersegment			(664,123	)			(632,785	)			-				(8,099,061	)
		Total			(664,123	)			(632,785	)			-				(8,099,061	)
Operating cost and expenses					(638,272	)			(602,113	)			-				(7,783,805	)
Operating profit				¥	(25,851	)		¥	(30,672	)			-			$	(315,256	)
Consolidated
Net sales:
		External customers		¥	829,240			¥	839,191				-              1.2			$	10,112,683
		Intersegment			-				-				-				-
		Total			829,240				839,191				-              1.2				10,112,683
Operating cost and expenses					746,561				756,689				-              1.3				9,104,403
Operating profit				¥	82,679			¥	82,502				+              0.2			$	1,008,280

 

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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, 2012				December 31, 2011				Change
Subsidiaries			285				277				8
Affiliates			10				11				(1	)
Total			295				288				7

 

2.

Change in Group Entities

 

Subsidiaries
Addition:		11 companies
Removal:		3 companies
Affiliates(Carried at Equity Basis)
Removal:		1 company

 

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 25, 2012

CONSOLIDATED FINANCIAL RESULTS FOR

THE FIRST QUARTER ENDED MARCH 31, 2012

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)

				2012								2011										Change year over year
				1st quarter				Year (P)				1st quarter				Year						1st quarter				Year
Japan
		Office			92,531				-				91,059				362,528						+1.6%				-
		Consumer			42,348				-				38,632				187,397						+9.6%				-
		Industry and Others			41,996				-				28,357				144,525						+48.1%				-
		Total			176,875				793,800				158,048				694,450						+11.9%				+14.3%
Overseas
		Office			344,395				-				387,992				1,549,584						-11.2%				-
		Consumer			260,669				-				250,736				1,123,626						+4.0%				-
		Industry and Others			47,301				-				42,415				189,773						+11.5%				-
		Total			652,365				3,106,200				681,143				2,862,983						-4.2%				+8.5%
Americas
		Office			125,721				-				142,410				588,190						-11.7%				-
		Consumer			73,537				-				66,136				335,158						+11.2%				-
		Industry and Others			11,090				-				7,988				38,607						+38.8%				-
		Total			210,348				1,019,300				216,534				961,955						-2.9%				+6.0%
Europe
		Office			151,581				-				182,180				696,239						-16.8%				-
		Consumer			87,458				-				89,751				391,747						-2.6%				-
		Industry and Others			5,414				-				8,022				25,079						-32.5%				-
		Total			244,453				1,129,200				279,953				1,113,065						-12.7%				+1.4%
Asia and Oceania
		Office			67,093				-				63,402				265,155						+5.8%				-
		Consumer			99,674				-				94,849				396,721						+5.1%				-
		Industry and Others			30,797				-				26,405				126,087						+16.6%				-
		Total			197,564				957,700				184,656				787,963						+7.0%				+21.5%
Intersegment
		Office			1,113				-				1,811				5,831						-38.5%				-
		Consumer			459				-				253				1,021						+81.4%				-
		Industry and Others			20,485				-				21,164				86,565						-3.2%				-
		Eliminations			(22,057	)			-				(23,228	)			(93,417	)					-				-
		Total			0				0				0				0						-				-
Total
		Office			438,039				1,938,600				480,862				1,917,943						-8.9%				+1.1%
		Consumer			303,476				1,580,100				289,621				1,312,044						+4.8%				+20.4%
		Industry and Others			109,782				466,100				91,936				420,863						+19.4%				+10.7%
		Eliminations			(22,057	)			(84,800	)			(23,228	)			(93,417	)					-				-
		Total			829,240				3,900,000				839,191				3,557,433						-1.2%				+9.6%

(P)=Projection

 

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Canon Inc.

 

2. SEGMENT INFORMATION BY BUSINESS UNIT

(Millions of yen)

				2012								2011										Change year over year
					1st quarter				Year (P)				1st quarter				Year						1st quarter				Year
Office
		External customers			436,926				1,934,700				479,051				1,912,112						-8.8%				+1.2%
		Intersegment			1,113				3,900				1,811				5,831						-38.5%				-33.1%
		Total sales			438,039				1,938,600				480,862				1,917,943						-8.9%				+1.1%
		Operating profit			52,846				242,900				63,052				259,265						-16.2%				-6.3%
		% of sales			12.1%				12.5%				13.1%				13.5%						-				-
Consumer
		External customers			303,017				1,578,300				289,368				1,311,023						+4.7%				+20.4%
		Intersegment			459				1,800				253				1,021						+81.4%				+76.3%
		Total sales			303,476				1,580,100				289,621				1,312,044						+4.8%				+20.4%
		Operating profit			46,734				290,400				39,909				211,294						+17.1%				+37.4%
		% of sales			15.4%				18.4%				13.8%				16.1%						-				-
Industry and Others
		External customers			89,297				387,000				70,772				334,298						+26.2%				+15.8%
		Intersegment			20,485				79,100				21,164				86,565						-3.2%				-8.6%
		Total sales			109,782				466,100				91,936				420,863						+19.4%				+10.7%
		Operating profit			3,993				13,400				6,603				24,300						-39.5%				-44.9%
		% of sales			3.6%				2.9%				7.2%				5.8%						-				-
Corporate and Eliminations
		External customers			-				-				-				-						-				-
		Intersegment			(22,057	)			(84,800	)			(23,228	)			(93,417	)					-				-
		Total sales			(22,057	)			(84,800	)			(23,228	)			(93,417	)					-				-
		Operating profit			(20,894	)			(96,700	)			(27,062	)			(116,788	)					-				-
Consolidated
		External customers			829,240				3,900,000				839,191				3,557,433						-1.2%				+9.6%
		Intersegment			-				-				-				-						-				-
		Total sales			829,240				3,900,000				839,191				3,557,433						-1.2%				+9.6%
		Operating profit			82,679				450,000				82,502				378,071						+0.2%				+19.0%
		% of sales			10.0%				11.5%				9.8%				10.6%						-				-
																				(P)=Projection
3. OTHER INCOME / DEDUCTIONS																						(Millions of yen)
				2012								2011										Change year over year
				1st quarter				Year (P)				1st quarter				Year						1st quarter				Year
		Interest and dividend, net			1,453				5,500				1,198				7,444						+255				(1,944	)
		Forex gain / loss			9,307				6,200				2,893				(3,287	)					+6,414				+9,487
		Equity earnings / loss of affiliated companies			465				1,300				(2,878	)			(7,368	)					+3,343				+8,668
		Other, net			(1,180	)			(3,000	)			(1,683	)			(336	)					+503				(2,664	)
		Total			10,045				10,000				(470	)			(3,547	)					+10,515				+13,547
																							(P)=Projection

 

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Canon Inc.

 

4. BREAKDOWN OF PRODUCT SALES WITHIN BUSINESS UNIT
				2012				2011
				1st quarter		Year (P)		1st quarter		Year
Office
		Monochrome copiers		16%		15%		15%		15%
		Color copiers		19%		19%		17%		17%
		Other printing devices		45%		44%		48%		48%
		Others		20%		22%		20%		20%
Consumer
		Cameras		70%		72%		69%		71%
		Inkjet printers		21%		21%		26%		24%
		Others		9%		7%		5%		5%
Industry and Others
		Lithography equipment		17%		16%		20%		19%
		Others		83%		84%		80%		81%
										(P)=Projection
5. SALES GROWTH IN LOCAL CURRENCY (Year over year)
				2012
				1st quarter		Year(P)
Office
		Japan		+1.6%		-
		Overseas		-6.8%		-
		Total		-5.3%		+2.6%
Consumer
		Japan		+9.6%		-
		Overseas		+8.0%		-
		Total		+8.3%		+21.5%
Industry and Others
		Japan		+48.1%		-
		Overseas		+13.3%		-
		Total		+20.2%		+10.9%
Total
		Japan		+11.9%		+14.3%
		Overseas		-0.1%		+10.0%
		Americas		+0.8%		+6.1%
		Europe		-6.4%		+6.1%
		Asia and Oceania		+8.5%		+20.4%
		Total		+2.2%		+10.9%
						(P)=Projection

 

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Canon Inc.

6. PROFITABILITY

				2012								2011
				1st quarter				Year (P)				1st quarter				Year
ROE *1					9.6%				11.1%				8.4%				9.6%
ROA *2					6.2%				7.2%				5.6%				6.3%
													(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	)
				2012												2011
				1st quarter				2nd-4th quarter (P)				Year (P)				1st quarter				Year
		Yen/US$			79.72				80.00				79.94				82.28				79.55
		Yen/Euro			104.57				105.00				104.91				112.86				110.72
																	(P)=Projection
(2) Impact of foreign exchange rates on sales (Year over year)				(Billions of yen)
				2012
				1st quarter				Year (P)
		US$			(4.7	)			+14.4
		Euro			(18.4	)			(59.1	)
		Other currencies			+0.4				+8.4
		Total			(22.7	)			(36.3	)
					(P)=Projection
(3) Impact of foreign exchange rates per yen				(Billions of yen)
				2012
				2nd-4th quarter (P)
On sales
		US$			15.7
		Euro			8.9
On operating profit
		US$			7.8
		Euro			4.8
					(P)=Projection
8. STATEMENTS OF CASH FLOWS													(Millions of yen)
				2012								2011
				1st quarter				Year (P)				1st quarter				Year
Net cash provided by operating activities					56,126				560,000				71,930				469,562
Net cash used in investing activities					(77,875	)			(370,000	)			(46,516)				(256,543	)
Free cash flow					(21,749	)			190,000				25,414				213,019
Net cash used in financing activities					(131,316	)			(203,200	)			(73,857	)			(257,513	)
Effect of exchange rate changes on cash and cash equivalents					25,322				10,000				24,479				(22,858	)
Net change in cash and cash equivalents					(127,743	)			(3,200	)			(23,964	)			(67,352	)
Cash and cash equivalents at end of period					645,484				770,000				816,615				773,227
													(P)=Projection

 

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Canon Inc.

 

9. R&D EXPENDITURE																(Millions of yen)
				2012								2011
				1st quarter				Year (P)				1st quarter				Year
		Office			23,299				-				23,997				103,378
		Consumer			19,872				-				18,835				82,731
		Industry and Others			6,220				-				5,080				27,061
		Corporate and Eliminations			22,640				-				22,183				94,630
		Total			72,031				315,000				70,095				307,800
		% of sales			8.7%				8.1%				8.4%				8.7%
																	(P)=Projection
10. INCREASE IN PP&E & DEPRECIATION AND AMORTIZATION																(Millions of yen)
				2012								2011
				1st quarter				Year (P)				1st quarter				Year
		Increase in PP&E			73,664				300,000				43,694				226,869
		Depreciation and amortization			59,873				265,000				61,728				261,343
																	(P)=Projection
11. INVENTORIES
(1) Inventories												(Millions of yen)
				2012				2011				Difference
				Mar.31				Dec.31
		Office			221,081				207,690				+13,391
		Consumer			206,113				148,954				+57,159
		Industry and Others			126,670				120,060				+6,610
		Total			553,864				476,704				+77,160
(2) Inventories/Sales*												(Days)
				2012				2011				Difference
				Mar.31				Dec.31
		Office			44				39				+5
		Consumer			55				38				+17
		Industry and Others			127				115				+12
		Total			56				46				+10
*Index based on the previous six months sales.
12. DEBT RATIO
				2012				2011				Difference
				Mar.31				Dec.31
		Total debt / Total assets			0.4%				0.3%				+0.1%
13. OVERSEAS PRODUCTION RATIO
				2012				2011
				1st quarter				Year
		Overseas production ratio			52%				52%
14. NUMBER OF EMPLOYEES
				2012				2011				Difference
				Mar.31				Dec.31
		Japan			69,794				70,346				(552	)
		Overseas			132,165				127,961				+4,204
		Total			201,959				198,307				+3,652

 

- S5 -