REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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(1) |
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(2) |
* | |
Accelerated filer ☐ | Non-accelerated filer ☐ |
Emerging growth company |
☑ |
☐ International Financial Reporting Standards as issued by the International Accounting Standards Board |
☐ Other |
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Item 16F. |
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Item 16G. |
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Item 16H. |
Mine Safety Disclosure | 111 | ||
Item 16I. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 111 | ||
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Item 19. |
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173 |
Selected financial data *1*3*4: |
2021 |
2020 |
2019 |
2018 |
2017 |
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(Millions of yen, except average number of shares and per share data) |
||||||||||||||||||||
Net sales |
¥ | 3,513,357 | ¥ | 3,160,243 | ¥ | 3,593,299 | ¥ | 3,951,937 | ¥ | 4,080,015 | ||||||||||
Operating profit |
281,918 | 110,547 | 174,420 | 342,452 | 322,211 | |||||||||||||||
Income before income taxes |
302,706 | 130,280 | 195,493 | 362,392 | 354,490 | |||||||||||||||
Net income attributable to Canon Inc. |
214,718 | 83,318 | 124,964 | 252,441 | 242,081 | |||||||||||||||
Advertising expenses |
36,812 | 31,273 | 46,665 | 58,729 | 61,207 | |||||||||||||||
Research and development expenses |
287,338 | 272,312 | 298,503 | 315,842 | 333,371 | |||||||||||||||
Depreciation of property, plant and equipment |
156,333 | 162,733 | 170,418 | 175,771 | 189,712 | |||||||||||||||
Increase in property, plant and equipment |
151,914 | 132,302 | 178,088 | 159,316 | 147,542 | |||||||||||||||
Long-term debt, excluding current installments |
179,750 | 4,834 | 357,340 | 361,962 | 493,238 | |||||||||||||||
Common stock |
174,762 | 174,762 | 174,762 | 174,762 | 174,762 | |||||||||||||||
Canon Inc. shareholders’ equity |
2,873,773 | 2,575,031 | 2,685,496 | 2,820,644 | 2,863,986 | |||||||||||||||
Total assets |
4,750,888 | 4,625,614 | 4,771,918 | 4,902,955 | 5,201,626 | |||||||||||||||
Average number of common shares in thousands |
1,045,633 | 1,049,802 | 1,069,957 | 1,079,753 | 1,085,439 | |||||||||||||||
Per share data: |
||||||||||||||||||||
Net income attributable to Canon Inc. shareholders per share: |
||||||||||||||||||||
Basic |
¥ | 205.35 | ¥ | 79.37 | ¥ | 116.79 | ¥ | 233.80 | ¥ | 223.03 | ||||||||||
Diluted |
205.29 | 79.35 | 116.77 | 233.78 | 223.03 | |||||||||||||||
Cash dividends declared |
100.00 | 80.00 | 160.00 | 160.00 | 160.00 | |||||||||||||||
Cash dividends declared (U.S.$)*2 |
$ | 0.889 | $ | 0.745 | $ | 1.514 | $ | 1.440 | $ | 1.483 |
1. | The above financial data is prepared in accordance with U.S. generally accepted accounting principles. |
2. | Annual cash dividends declared (U.S.$) are translated from yen based on a weighted average of the noon buying rates for yen in New York City as reported by the Federal Reserve Bank of New York in effect on the date of each semiannual dividend payment or on the latest practicable date. |
3. | Canon adopted Accounting Standards Update (“ASU”) No. 2017-07 from the quarter beginning January 1, 2018. The adoption of the new presentation requirement of the service cost component and the other components of net benefit cost resulted in reclassification from cost of sales, and selling, general and administrative expenses, and research and development expenses into other income (deductions) for the year ended December 31, 2017. |
4. | Certain figures for the fiscal years ended December 31, 2019, 2018 and 2017 presented in the table above have been revised from the versions previously disclosed. During the year ended December 31, 2020, Canon corrected an immaterial error in its previously issued consolidated financial statements related to accounting for the Company’s and domestic subsidiaries’ compensated absence carryforward as disclosed in the previous fiscal year. For further details, please refer to Note 1 (y) of the Notes to Consolidated Financial Statements. |
Years ended December 31 |
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2021 |
change |
2020 |
change |
2019 |
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(Millions of yen, except percentage data) |
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Printing |
1,938,847 | 7.4 | % | 1,804,427 | -13.8 | % | 2,092,464 | |||||||||||||
Imaging |
653,532 | 20.7 | 541,314 | -18.2 | 661,706 | |||||||||||||||
Medical |
480,362 | 10.2 | 436,074 | -0.6 | 438,525 | |||||||||||||||
Industrial and Others |
545,742 | 18.2 | 461,522 | -6.5 | 493,784 | |||||||||||||||
Eliminations |
(105,126 | ) | — | (83,094 | ) | — | (93,180 | ) | ||||||||||||
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Total |
3,513,357 | 11.2 | % | 3,160,243 | -12.1 | % | 3,593,299 | |||||||||||||
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1. | Based on the realignment of Canon’s internal reporting and management structure, from 2021, Canon has changed the name and structure of segments from Office Business Unit, Imaging System Business Unit, Medical System Business Unit and Industry and Others Business Unit to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. Major changes include moving Inkjet printers from Imaging System Business Unit to the Printing Business Unit, the same business unit as Office MFDs and Laser MFPs, and moving Network cameras from Industry and Others Business Unit to the Imaging Business Unit, the same business unit as Interchangeable-lens digital cameras. Net sales by segment for the fiscal years ended December 31, 2020 and 2019 also have been reclassified. |
Years ended December 31 |
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2021 |
change |
2020 |
change |
2019 |
||||||||||||||||
(Millions of yen, except percentage data) |
||||||||||||||||||||
Japan |
830,378 | 3.0 | % | 806,305 | -7.6 | % | 872,534 | |||||||||||||
Americas |
968,839 | 13.7 | 852,451 | -17.2 | 1,029,078 | |||||||||||||||
Europe |
894,898 | 12.5 | 795,616 | -9.8 | 882,480 | |||||||||||||||
Asia and Oceania |
819,242 | 16.1 | 705,871 | -12.8 | 809,207 | |||||||||||||||
|
|
|
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|
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Total |
3,513,357 | 11.2 | % | 3,160,243 | -12.1 | % | 3,593,299 | |||||||||||||
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Kyocera Document Solutions Inc. |
Electrophotography | |
Brother Industries, Ltd. |
Electrophotography and facsimile machines |
HP Inc. |
Bubble jet printers | |
Xerox Corporation |
Business machines | |
International Business Machines Corporation |
Information handling systems | |
Eastman Kodak Company |
Electrophotography and image processing technology | |
Seiko Epson Corporation |
Information-related instruments |
1. |
Measures Addressing Global Climate Change |
2. |
Measures to Address the Circular Economy |
3. |
European Union Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (“the RoHS Directive”) |
4. |
European Framework for the Management of Chemical Substances (“REACH Regulation”) |
5. |
The European Framework for the Setting of Requirements for Energy-Related Products (“ErP Directive”) |
6. |
Other Environmental Regulations |
• | CMSC, a wholly-owned Japanese subsidiary of Canon Inc., had indirect sales transactions through independent distributors in Istanbul, Turkey, Sharjah, United Arab Emirates and Tehran, Iran for computed tomography, diagnostic ultrasound systems and service parts for those products with hospitals in Iran. It is our understanding that Iranian hospitals are owned or controlled by the Government of Iran (central or local government) and that their purchases are controlled through an agency of the Iranian Ministry of Health and Medical Education. Total gross sales under these contracts during the year 2021 were approximately ¥721 million. The net profit was substantially less than that. |
Name of company |
Head office location |
Proportion of ownership interest owned |
Proportion of voting power held |
|||||||
Canon Marketing Japan Inc. |
Tokyo, Japan | 57.8 | % | 58.5 | % | |||||
Canon U.S.A., Inc. |
New York, U.S.A. | 100.0 | % | 100.0 | % | |||||
Canon Europa N.V. |
Amstelveen, The Netherlands | 100.0 | % | 100.0 | % | |||||
Canon Medical Systems Corporation |
Tochigi, Japan | 100.0 | % | 100.0 | % |
Name and location |
Floor space (including leased space) |
Principal activities and products manufactured | ||||
Domestic |
(Thousands of square feet) |
|||||
Headquarters, Tokyo |
2,564 | R&D, corporate administration and other functions | ||||
Canon Global Management Institute, Tokyo |
166 | Training and administration | ||||
Kawasaki Office, Kanagawa |
1,882 | R&D and manufacturing of production equipment and semiconductor devices; R&D of laser printers and toner cartridges | ||||
Kosugi Office, Kanagawa |
378 | Development of medical equipment, Human resources development training (except for technical training) | ||||
Fuji-Susono Research Park, Shizuoka |
932 | R&D in electrophotographic technologies | ||||
Ayase Plant, Kanagawa |
394 | R&D and manufacturing of semiconductor devices | ||||
Hiratsuka Plant, Kanagawa |
916 | R&D of display products and manufacturing of semiconductor devices | ||||
Tamagawa Office, Kanagawa |
384 | Quality engineering | ||||
Oita Plant, Oita |
475 | Manufacturing of semiconductor devices | ||||
Yako Office, Kanagawa |
906 | Development of inkjet printers, inkjet chemical products | ||||
Utsunomiya Office, Tochigi |
2,764 | Manufacturing of interchangeable lenses and other applications, R&D in optical technologies, development and sales of broadcasting equipment, R&D, manufacturing, sales and servicing of semiconductor lithography equipment | ||||
Toride Plant, Ibaraki |
2,857 | R&D in electrophotographic technologies, mass-production trials and supports; manufacturing of office MFDs, chemical products; training of manufacturing | ||||
Ami Plant, Ibaraki |
962 | Manufacturing of FPD production-related equipment | ||||
Canon Electronics Inc., Tokyo, Saitama and Gunma |
1,310 | Magnetic/business machine components, document scanners and handy terminals | ||||
Canon Finetech Nisca Inc., Saitama, Ibaraki and Yamanashi |
1,106 | Development, production and sales of office MFDs peripherals, printers, DC motors | ||||
Canon Precision Inc., Aomori |
1,591 | Micromotors, production of toner cartridges and sensors |
Name and location |
Floor space (including leased space) |
Principal activities and products manufactured | ||||
Domestic |
(Thousands of square feet) |
|||||
Canon Optron Inc., Ibaraki |
144 | Optical crystals (cameras, telescopes) and vapor deposition materials | ||||
Canon Chemicals Inc., Ibaraki |
1,907 | Toner cartridges, advanced-function parts, plastic precision-molded parts and metal molds | ||||
Canon Components, Inc., Saitama |
712 | Image sensor units, Printed Circuit Boards (“PCB”), inkjet cartridges and medical equipment | ||||
Oita Canon Inc., Oita |
2,095 | Interchangeable-lens digital cameras, interchangeable lenses and digital camcorders | ||||
Nagahama Canon Inc., Shiga |
1,095 | Laser printers, toner cartridges, A-Si drums and semiconductor production-related equipment | ||||
Oita Canon Materials Inc., Oita |
3,074 | Chemical products for MFDs and printers | ||||
Ueno Canon Materials Inc., Mie |
654 | Chemical products for MFDs and printers | ||||
Fukushima Canon Inc., Fukushima |
1,310 | Inkjet printers, print heads, ink tanks and analysis of software | ||||
Canon Semiconductor Equipment Inc., Ibaraki |
241 | Development and production of semiconductor production-related equipment | ||||
Canon Ecology Industry Inc., Ibaraki |
1,463 | Recycling of toner cartridges, repair and recycling of office MFDs | ||||
Fukui Canon Materials Inc., Fukui |
192 | OPC raw stock, material for optics and high water-repellent material | ||||
Miyazaki Canon Inc., Miyazaki |
652 | Interchangeable-lens digital cameras and electronics packaging | ||||
Canon Mold Co., Ltd., Ibaraki |
408 | Design and production of precise plastic molds | ||||
Canon ANELVA Corporation, Kanagawa and Yamanashi |
745 | Development, production, sales and maintenance of semiconductor, electronic and R&D equipment | ||||
Canon Machinery Inc., Shiga |
676 | Semiconductor and precision automation equipment | ||||
Canon Tokki Corporation, Niigata and Kanagawa |
375 | OLED display manufacturing equipment, thin-film photovoltaic cell manufacturing equipment and vacuum process equipment | ||||
Nagasaki Canon Inc., Nagasaki |
477 | Digital cameras | ||||
Canon Medical Systems Corporation, Tochigi |
1,424 | Development, manufacturing, sales and technical services of medical equipment |
Name and location |
Floor space (including leased space) |
Principal activities and products manufactured | ||||
Domestic |
(Thousands of square feet) |
|||||
Canon Electron Tubes & Devices Corporation, Tochigi |
357 | Development, manufacturing and sales of electron tubes and application products |
Name and location |
Floor space (including leased space) |
Principal activities and products manufactured | ||||
Overseas |
(Thousands of square feet) |
|||||
Europe |
||||||
Canon Giessen GmbH, Giessen, Germany |
348 | Production and remanufacturing of office MFDs, refilling of toner cartridges, refurbishing of semiconductor lithography equipment | ||||
Canon Bretagne S.A.S., Liffre, France |
505 | Manufacturing and recycling of toner cartridges, PCB assembly, packaging, after sales service | ||||
Canon Production Printing Netherlands B.V., Venlo, the Netherlands |
2,347 | R&D, manufacturing, sales and distribution of large format printing systems, display graphics printing systems, mid- and high- volume office MFDs, sheet-fed printing systems, ancillary equipment, software, consumables | ||||
Americas |
||||||
Canon Virginia, Inc., Virginia, U.S. |
1,546 | Production of toner cartridges , toner for MFDs and printers, molding dies, service and support for Canon sales companies (repair of cameras, remanufacturing and repair office MFDs) | ||||
Asia |
||||||
Canon Inc., Taiwan, Taiwan |
1,597 | Interchangeable-lens digital cameras, network cameras, interchangeable lenses, camera accessories, precision-metal molds and others | ||||
Canon Opto (Malaysia) Sdn. Bhd., Selangor, Malaysia |
611 | Interchangeable lenses, optical lenses and others | ||||
Canon Dalian Business Machines, Inc., Dalian, China |
1,721 | Production and recycling of toner cartridges, production of laser printer units, design and production of precision molds and tools | ||||
Canon Prachinburi (Thailand) Ltd., Prachinburi, Thailand |
1,268 | Office MFDs | ||||
Canon Hi-Tech (Thailand) Ltd., Ayutthaya and Nakohon Ratchasima, Thailand |
3,270 | Inkjet printers and office MFDs |
Name and location |
Floor space (including leased space) |
Principal activities and products manufactured | ||||
Overseas |
(Thousands of square feet) |
|||||
Canon Zhongshan Business Machines Co., Ltd., Zhongshan, China |
52 | Laser printers | ||||
Canon Vietnam Co., Ltd., Hanoi, Vietnam |
3,369 | Inkjet printers, laser printers, office MFDs, image scanners and contact image sensors | ||||
Canon (Suzhou) Inc., Suzhou, China |
1,528 | Office MFDs and laser printers | ||||
Canon Business Machines (Philippines), Inc., Batangas, Philippines |
898 | Laser printers |
Name and location |
Principal activities and products manufactured | |
Domestic |
||
Canon Inc., Hiratsuka Plant, Kanagawa |
New production base (Manufacturing of semiconductor devices) |
2021 |
Change |
2020 |
||||||||||
(Millions of yen, except per share |
||||||||||||
amounts and percentage data) |
||||||||||||
Net sales |
3,513,357 | +11.2 | % | 3,160,243 | ||||||||
Gross profit |
1,627,792 | +18.3 | 1,375,868 | |||||||||
Operating expenses |
1,345,874 | +6.4 | 1,265,321 | |||||||||
Operating profit |
281,918 | +155.0 | 110,547 | |||||||||
Other income (deductions) |
20,788 | +5.3 | 19,733 | |||||||||
Income before income taxes |
302,706 | +132.4 | 130,280 | |||||||||
Net income attributable to Canon Inc. |
214,718 | +157.7 | 83,318 | |||||||||
Net income attributable to Canon Inc. shareholders per share: |
||||||||||||
Basic |
205.35 | +158.7 | 79.37 | |||||||||
Diluted |
205.29 | +158.7 | 79.35 |
2021 |
Change |
2020 |
||||||||||
(Millions of yen, except per share amounts and percentage data) |
||||||||||||
Total assets |
4,750,888 | 125,274 | 4,625,614 | |||||||||
Total liabilities |
1,652,459 | (189,114 | ) | 1,841,573 | ||||||||
Canon Inc. shareholders’ equity |
2,873,773 | 298,742 | 2,575,031 | |||||||||
Noncontrolling interests |
224,656 | 15,646 | 209,010 | |||||||||
Total equity |
3,098,429 | 314,388 | 2,784,041 | |||||||||
Total liabilities and equity |
4,750,888 | 125,274 | 4,625,614 | |||||||||
Canon Inc. shareholders’ equity as a percentage of total assets |
60.5 | % | 4.8 | % | 55.7 | % |
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
Net sales (Millions of yen) |
3,513,357 | 3,160,243 | 3,593,299 | 3,951,937 | 4,080,015 | |||||||||||||||
Gross profit to net sales ratio |
46.3 | % | 43.5 | % | 44.8 | % | 46.4 | % | 48.8 | % | ||||||||||
R&D expense to net sales ratio |
8.2 | % | 8.6 | % | 8.3 | % | 8.0 | % | 8.2 | % | ||||||||||
Operating profit to net sales ratio |
8.0 | % | 3.5 | % | 4.9 | % | 8.7 | % | 7.9 | % | ||||||||||
Income before income taxes to net sales ratio |
8.6 | % | 4.1 | % | 5.4 | % | 9.2 | % | 8.7 | % | ||||||||||
Inventory turnover measured in days |
66 days | 60 days | 59 days | 56 days | 49 days | |||||||||||||||
Debt to total assets ratio |
6.8 | % | 10.9 | % | 10.8 | % | 8.2 | % | 10.2 | % | ||||||||||
Canon Inc. shareholders’ equity to total assets ratio |
60.5 | % | 55.7 | % | 56.3 | % | 57.5 | % | 55.1 | % |
1. | See notes to Item 3A “Selected Financial Data”. |
2021 |
Change |
2020 |
||||||||||
(Millions of yen, except per share |
||||||||||||
amounts and percentage data) |
||||||||||||
Net sales |
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