Ten-Year ConsolidaTed FinanCial summarY
notes: 1. The figures have been presented in U.S. dollars by translating all Japanese yen amounts at ¥91 to U.S.$1, the prevailing exchange rate as of December 31, 2008.
2. Net income (loss) per share is based on the weighted average number of shares of common stock outstanding during the respective fiscal years.
3. Cash dividends per share are the amounts applicable to the respective fiscal years, including dividends to be paid after the end of the year.
4. The Accounting Standard for Consolidated Statements of Cash Flows (Business Accounting Council, issued on March 13, 1998) has been adopted effective the year ended December 31, 2000.
Canon Marketing Japan Inc. and Consolidated Subsidiaries Years ended December 31
FY’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08
795 816 822 867 905
787 757
827
Return on Sales (ROS)
(Billions of yen/%)
Millions of yen Millions of yen Thousands of
U.S. dollars (Note 1)
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 2008
CASH FLOWS (Note 4):
Net cash provided by operating activities 41,122 47,214 18,094 36,985 22,053 23,671 36,275 (3,384) 12,324 N/A 451,890
Net cash used in investing activities (28,967) (21,912) (19,217) (17,887) (7,963) (16,258) (26,869) (7,364) (13,015) N/A (318,319)
Net cash used in financing activities (21,738) (16,345) (6,126) (4,311) (39,045) (20,305) (13,889) (6,182) (2,909) N/A (238,879)
Cash and cash equivalents 107,589 117,206 108,248 115,504 98,844 123,815 136,448 141,045 157,921 N/A 1,182,297
Yen Yen U.S. dollars
(Note 1)
PER SHARE OF COMMON STOCK:
Net income (loss) (Note 2) ¥ 78.63 ¥ 134.84 ¥ 125.64 ¥ 101.78 ¥ 81.78 ¥ 46.24 ¥ 22.96 ¥ (217.39) ¥ 42.77 ¥ 42.01 $ 0.86
Cash dividends (Notes 3 and 5) 40.00 40.00 36.00 28.00 22.00 18.00 18.00 18.00 18.00 18.00 0.44
Stockholders equity (Note 6) 1,858.39 1,817.59 1,739.50 1,650.52 1,562.23 1,496.74 1,464.43 1,459.60 1,701.44 1,706.64 20.42
Ten-Year ConsolidaTed FinanCial summarY
5. Year-end cash dividends applicable to the year ended December 31, 2005 include a ¥2.00 bonus dividend reflecting record-high consolidated net sales, oper-ating income and net income.
6. Total stockholders equity in the above table represents the total of stockholders equity and valuation and translation adjustments in the consolidated balance sheets. This is due to the adoption of an accounting standard for the presentation of net assets in the balance sheet effective the year ended December 31, 2006, which requires former stockholders equity and minority interests to be presented as net assets, and net assets to be classified as stockholders equity, valuation and translation adjustments and minority interests.
FY’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 258 257
220 221 225 234 247 260 266
255
Total Stockholders’ Equity and ROE
(Billions of yen/%)
Total Assets and
Total Stockholders’ Equity Ratio
(Billions of yen/%)
Total Assets
Total Stockholders’ Equity Ratio
Millions of yen Millions of yen Thousands of
U.S. dollars (Note 1)
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 2008
CASH FLOWS (Note 4):
Net cash provided by operating activities 41,122 47,214 18,094 36,985 22,053 23,671 36,275 (3,384) 12,324 N/A 451,890
Net cash used in investing activities (28,967) (21,912) (19,217) (17,887) (7,963) (16,258) (26,869) (7,364) (13,015) N/A (318,319)
Net cash used in financing activities (21,738) (16,345) (6,126) (4,311) (39,045) (20,305) (13,889) (6,182) (2,909) N/A (238,879)
Cash and cash equivalents 107,589 117,206 108,248 115,504 98,844 123,815 136,448 141,045 157,921 N/A 1,182,297
Yen Yen U.S. dollars
(Note 1)
PER SHARE OF COMMON STOCK:
Net income (loss) (Note 2) ¥ 78.63 ¥ 134.84 ¥ 125.64 ¥ 101.78 ¥ 81.78 ¥ 46.24 ¥ 22.96 ¥ (217.39) ¥ 42.77 ¥ 42.01 $ 0.86
Cash dividends (Notes 3 and 5) 40.00 40.00 36.00 28.00 22.00 18.00 18.00 18.00 18.00 18.00 0.44
Stockholders equity (Note 6) 1,858.39 1,817.59 1,739.50 1,650.52 1,562.23 1,496.74 1,464.43 1,459.60 1,701.44 1,706.64 20.42
FinanCial
2008 were lower year on year in all business segments, and came to ¥827.5 billion, a year-on-year decrease of 8.6%.In the Business Solutions segment, sales of office multi-functional products (MFPs) were lower than in the previous year. Although color MFPs sold steadily, sales of mono-chrome MFPs fell along with the cooling of that market.
Sales of laser-beam printers (LBPs) were also lower than in the previous year. The total number of color units sold increased year on year, but sales of monochrome units declined. Regarding large-format ink-jet printers, we introduced new products and worked hard to expand sales, and as a result sales were higher than in the previ-ous year and consumables also performed well.
Although unit prices for office MFP maintenance ser-vices continued to decline, sales remained at about the same level as in the previous year thanks to steady growth in printing volumes.
Canon System & Support Inc., a member of the Canon MJ Group, recorded steady sales of maintenance services, but its sales of business equipment declined, and on balance its overall sales were slightly down.
In the IT Solutions Business, we endeavored to expand our system integration (SI) services in sectors such as finance and manufacturing, and in the area of IT products sales of handy terminals for beverages, finance and meter reading operations grew strongly. However, overall sales were lower than in the previous year due to the impact of factors including reduced IT investment by companies.
At Canon Software Inc., a member of the Canon MJ Group, sales of computer-aided design (CAD) software and embedded software were strong and sales also grew in the solutions division. At Canon IT Solutions Inc., the SI services division increased its sales due to the effect of the merger, and the packaged products division, which offers electronic medical records and other products to medical examination clinics, and the server solutions division also achieved steady sales. At Canon Network Communications, Inc., sales grew in the network infra-structure building and internet data center businesses.
Net sales in the Business Solutions segment amount-ed to ¥495.9 billion, a year-on-year decline of 4.0%.
In the Consumer Equipment segment, sales of com-pact digital cameras were lower than in the previous year, when they had performed well, due to the impact of
declining unit prices, but we endeavored to promote sales centered on new products and were able to maintain the biggest market share. We captured the biggest share of the digital single-lens reflex camera market through our introduction of new products, and sales of exchangeable lenses increased again this year. We also worked to expand sales of digital video cameras by launching new products, and as a result sales increased and our market share also expanded. Sales of ink-jet printers were lower than in the previous year, but sales of consumables, such as ink cartridges and glossy photographic paper, were generally strong.
Net sales in the Consumer Equipment segment amount-ed to ¥265.8 billion, a year-on-year decline of 6.5%.
In the Industrial Equipment segment, we mounted a marketing campaign centered on our flagship products for lithography equipment for semiconductor manufac-turers, but sales were still much lower than in the previ-ous year. In the medical equipment business, sales of ophthalmological equipment grew thanks to the strong trend towards digitalization. Sales of broadcasting equip-ment grew due to steady sales of portable lenses and other products.
Net sales in the Industrial Equipment segment amount-ed to ¥65.7 billion, a year-on-year decline of 36.8%.
Income
Operating income decreased by 31.1% from the previous year s level to ¥25.4 billion. Although selling, general and administrative expenses declined year on year due to a reduction in advertising expenses and sales promotion expenditure, as well as a decline in payroll costs, this was more than offset by the decline in gross profit on sales resulting from the decline in sales.
Net income came to ¥11.2 billion, 44.2% less than last year, because we booked a loss on devaluation of invest-ments in securities, recorded a new provision for expenses related to continuous service rewards carried over from previous years due to a change in our accounting treat-ment, and incurred expenses related to restructuring of consolidated subsidiaries.
Net income per share was ¥78.63, compared with
¥134.84 in the previous year. The annual dividend per share was ¥40.00, the same as last year.