Canon 2003 Annual Report Download - page 34

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industry continued its shift from cathode-ray tube (CRT) to LCD
computer displays, and the LCD television market continued to
expand, while sales of steppers, used for the production of
semiconductors, also increased as the semiconductor market
began to show signs of a turnaround. Sales of optical and other
products constituted 9% of consolidated net sales in fiscal 2003
and increased 18.6% from fiscal 2002, primarily due to
increased sales of aligners for LCDs and steppers.
Sales by region
A geographical analysis indicates that net sales in fiscal 2003
increased in every region.
In Japan, net sales increased by 9.4% in fiscal 2003 despite
a decrease in sales of personal computers due to Canon’s
intentional curtailment of such sales in Japan. The results were
mainly attributable to increased sales of office imaging products
and digital cameras. Color network digital MFDs, which include
the Color imageRUNNER C3200/iRC3200N, have been well
received, contributing to increased sales of office imaging
products.
In the Americas, net sales increased by 11.9% on a local
currency basis, mainly due to increased sales of digital cameras,
network digital MFDs and laser beam printers. Sales of digital
cameras experienced continued strong demand and benefited
from the effect of newly-launched products. After accounting for
the appreciation of the yen against the U.S. dollar, net sales in
the Americas increased by 3.5%.
In Europe, net sales increased by 5.4% on a local currency
basis mainly due to increased sales of digital cameras, and laser
beam printers. After accounting for the depreciation of the yen
against the euro, net sales in Europe grew 13.1% in fiscal 2003.
Sales in other areas increased by 12.4% on a yen basis in
fiscal 2003, reflecting overall sales growth, particularly in digital
cameras and semiconductor equipment.
A summary of net sales by region is provided below:
SALES BY REGION
(Thousands of
(Millions of yen) U.S. dollars)
2003 change 2002 change 2001 2003
Japan ¥801,400 +9.4% 732,551 –11.5% 827,288 $7,489,719
Americas 1,045,166 +3.5 1,010,166 +2.9 982,104 9,767,907
Europe 969,042 +13.1 857,167 +6.3 806,104 9,056,467
Other areas 382,464 +12.4 340,244 +16.5 292,077 3,574,430
Total ¥3,198,072 +8.8 2,940,128 +1.1 2,907,573 $29,888,523
Note: This summary of net sales by region of destination is determined by the location of the customer.
in a slight sales decrease in value terms. Sales of computer
peripherals as a whole mainly increased, due to expanded sales
of laser beam printers. The adverse effect of severe price
competition on sales of computer peripherals was more than
offset by a rise in unit sales. As a result, sales of computer
peripherals in 2003 increased by 3.2%.
Sales of business information products decreased 16.1%, to
¥123,493 million (U.S.$1,154 million) in fiscal 2003, mainly due
to a decision to curtail the sales of personal computers on stand-
alone basis, which are unprofitable, and to concentrate more on
providing comprehensive business solutions.
Sales of cameras continued to achieve significant sales growth of
34.5%, totaling ¥653,540 million (U.S.$6,108 million). Amid the
continued strong demand for digital cameras worldwide, Canon
launched several new compact digital cameras in 2003,
including six new PowerShot-series models and three new
DIGITAL ELPH-series. These new products, led by the PowerShot
S400 DIGITAL ELPH and PowerShot A70, contributed
significantly to an increase in sales. Canon’s digital SLR cameras
also enjoyed sales growth, supported by the introduction of new
product lineups, including the EOS 10D, launched in the first half
of 2003, and the EOS Digital Rebel, launched in September.
Sales of conventional film cameras continued to decline amid the
increasing popularity of digital models. In fiscal 2003, digital
cameras accounted of 61% and 45% and conventional film
cameras accounted for 21% and 31% of camera sales in fiscal
2003 and 2002, respectively. Video camcorders accounted for
the remaining 18% and 24% of camera sales in fiscal 2003 and
2002, respectively. In the field of digital video camcorders, the
eight new products Canon launched in fiscal 2003, include the
Optura 300, as well as the ZR Series (ZR60, ZR65, ZR70)
contributed to increased sales. Sales of cameras constituted 20%
of consolidated net sales in fiscal 2003, an increase of 4% from
fiscal 2002, primarily due to increased sales of digital cameras.
Sales of optical and other products increased 18.6%, to
¥270,628 million (U.S.$2,529 million). Sales of aligners for the
production of LCDs displayed notable growth as the PC monitor