Canon 2015 Annual Report Download - page 42

CANON ANNUAL REPORT 2015
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Within the Office Business Unit, as for office MFDs, thanks to
strong sales of color models led by new small-office/home-
office color A3 (12”x18”) imageRUNNER ADVANCE C3300-
series models and imagePRESS C800/700-series color digital
presses targeting the light production market, unit sales of
color models increased compared with the previous year, as
did unit sales for the segment overall, including monochrome
models, which had been facing decreasing demand. Among
high-speed continuous-feed printers, the new Océ-produced
VarioPrint i300, Canon’s first high-speed sheet-fed color ink-
jet press, gained favorable reviews. As for laser printers, total
sales volume decreased due to declining demand in emerg-
ing countries. Those factors, coupled with the positive effect
of favorable currency exchange rates, resulted in sales for
the business unit totaling ¥2,110,816 million, a year-on-year
increase of 1.5%, while operating profit totaled ¥290,586 mil-
lion, a year-on-year decrease of 0.5%.
Within the Imaging System Business Unit, although total sales
volume of interchangeable-lens digital cameras declined due
to currency depreciations in emerging countries and the slow-
down of China’s economy, there were positive signs of a
recovery in sales in the U.S. and Japan. Additionally, sales have
been strong for such models as the EOS 5DS and EOS 5DS R
digital SLR cameras, which deliver the highest resolution of
any model in the history of EOS cameras. As for digital com-
pact cameras, while sales volume declined amid the ongoing
contraction of the market, the ratio of more profitable high-
added-value models increased owing to efforts to strengthen
the lineup of PowerShot G-series models. As for inkjet print-
ers, although Canon has been working to expand sales
through the Company’s broad product lineup, ranging from
home-use printers to MAXIFY-series business models, total
sales volume declined due to the significant impact of shrink-
ing markets, mainly in Asia. In contrast, sales of consumable
supplies enjoyed solid demand. As a result, sales for the busi-
ness unit totaled ¥1,263,835 million, a year-on-year decrease
of 5.9%, while operating profit totaled ¥183,439 million,
declining 5.7% year on year.
In the Industry and Others Business Unit, within the semicon-
ductor lithography equipment segment, unit sales increased
owing to strong capital investment in response to grow-
ing demand for memory devices used in mobile devices such
as smartphones, and in cloud servers, along with increased
demand for on-board automotive devices and for communi-
cation devices supporting the development of the Internet of
Things (“IoT”). Unit sales of FPD lithography equipment also
increased, particularly systems used in the fabrication of large-
size panels. Consequently, along with the impact of the acqui-
sition of Axis, which was consolidated in the second quarter,
sales for the business unit increased 31.6% year on year to
¥524,651 million. As for operating profit, although it improved
by ¥8,722 million compared with the previous year, the busi-
ness unit was in the red by ¥13,079 million due to upfront
investment in next-generation technologies and new businesses.
Intersegment sales of ¥99,031 million, representing 2.6% of
total sales, are eliminated from total sales for the three seg-
ments, and are described as “Eliminations.”
Sales by geographic area
Please refer to the table of sales by geographic area in Note 21
of the Notes to Consolidated Financial Statements.
In Japan, net sales decreased 1.4% from the previous year due
mainly to the rush in demand during the first quarter of the pre-
vious year that preceded the country’s consumption tax increase.
In the Americas, net sales increased 10.4% from the previous
year owing to the positive effects of favorable currency exchange
rates along with the consolidation of new businesses.
In Europe, despite the solid demand for office MFDs and laser
printers along with the consolidation of new businesses, sales
decreased by 1.5% from the previous year due to the negative
effect of the appreciation of the yen.
In Asia and Oceania, despite the positive impact of deprecia-
tion of the yen, net sales decreased by 1.0% from the previous
year owing to the economic stagnation in China and Southeast
Asian countries.
SALES BY SEGMENT
Millions of yen
2015 change 2014 change 2013
Office ¥2,110,816 +1.5% ¥2,078,732 +3.9% ¥2,000,073
Imaging System 1,263,835 -5.9% 1,343,194 -7.3% 1,448,938
Industry and Others 524,651 +31.6% 398,765 +6.4% 374,870
Eliminations (99,031) — (93,439) — (92,501)
Total ¥3,800,271 +2.0% ¥3,727,252 -0.1% ¥3,731,380
Sales by segment
FINANCIAL OVERVIEW