Canon 2009 Annual Report Download - page 52

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50 CANON ANNUAL REPORT 2009
Sales of the Offi ce Business Unit, constituting 51.3% of con-
solidated net sales, decreased by 26.8% to ¥1,645,076 million
(U.S.$17,881 million) in fi scal 2009, due to the decreased
demand for offi ce equipment overall amid the deterioration of
economic conditions, along with the impact of the strong yen.
Sales of network digital MFDs remained low in all regions while
demand for laser printers decreased substantially compared with
the previous year despite the optimization of inventory levels
being in sight.
Sales of the Consumer Business Unit declined by 10.6% in
fi scal 2009, totaling ¥1,301,160 million (U.S.$14,143 million),
due to the signifi cant impact of the yen’s appreciation. Sales vol-
umes, however, of such new products as the competitively
priced EOS Rebel T1i (EOS 500D) and advanced-amateur model
EOS 7D digital SLR cameras recorded solid growth. As for com-
pact digital cameras, although stagnant market conditions led to
a contraction in sales volume, the Company reinforced its prod-
uct lineup through the launch of six new ELPH (IXUS)-series
models and nine new PowerShot-series models. As for inkjet
printers, although the market overall remained sluggish, sales in
the Americas and Asia displayed healthy growth, contributing to
a year-on-year increase in sales volume. Sales of the Consumer
Business Unit constituted 40.5% of consolidated net sales in
fi scal 2009.
Sales of the Industry and Others Business Unit decreased by
31.5% in fi scal 2009, to ¥357,998 million (U.S.$3,891 million).
Within this segment, sales of steppers remained sluggish amid
worsening market conditions for memory chips, while sales of
aligners dropped due to restrained capital investment by LCD
panel manufacturers. Sales of the Industry and Others Business
Unit constituted 11.2% of consolidated net sales in fi scal 2009.
Intersegment sales of ¥95,033 million (U.S.$1,033 million), rep-
resenting 3.0% of total sales, are eliminated from the total sales
of the three segments, and are described as “Eliminations”.
Sales by geographic area
Please refer to the table of sales by geographic area in Note 22
of the Notes to Consolidated Financial Statements.
A geographical analysis indicates that net sales in fi scal 2009
decreased in each of the major geographic areas.
In Japan, sales decreased by 19.1% in fi scal 2009 mainly due
to weakened sales of monochrome and color models of net-
work digital MFDs within the Offi ce Business Unit, along
with steppers.
In the Americas, net sales declined by 14.9% on a local cur-
rency basis in fi scal 2009, mainly due to reduced sales of such
products as monochrome network MFDs and laser printers. On
a yen basis, net sales in the Americas declined by 22.6% in fi scal
2009 as the yen strengthened to the U.S. dollar.
In Europe, net sales fell by 15.4% on a local currency basis in
fi scal 2009, mainly due to reduced sales of such products as
laser printers and monochrome network MFDs. On a yen basis,
net sales in Europe dropped by 25.8% in fi scal 2009 resulting
from the impact of the substantial appreciation of the yen to
the euro.
Sales in other areas decreased by 15.4% on a yen basis in
fi scal 2009, largely due to the stagnant sales of steppers
and aligners.
A summary of net sales by geographic area is provided below.
Operating profi t by segment
Please refer to the table of segment information in Note 22 of
the Notes to Consolidated Financial Statements.
Operating profi t for the Offi ce Business Unit in fi scal 2009
decreased by ¥227,950 million (U.S.$2,478 million) to ¥229,396
million (U.S.$2,493 million). This decline resulted primarily from
the decrease in gross profi t led by the signifi cant reduction
in sales.
Operating profi t for the Consumer Business Unit in fi scal
2009 declined by ¥39,632 million (U.S.$431 million) to
¥183,492 million (U.S.$1,994 million) as a result of the decrease
in gross profi t arising from the reduction in sales.
Operating profi t for the Industry and Others Business Unit
in fi scal 2009 decreased by ¥28,080 million (U.S.$305 million) to
an operating loss of ¥75,956 million (U.S.$826 million) as a
result of a signifi cant drop in sales along with impairment losses
related to semiconductor production equipment, totaling
¥15,390 million (U.S.$167 million), arising from a fundamental
reassessment of the business structure for steppers.
SALES BY GEOGRAPHIC AREA
Millions of yen
Thousands of
U.S. dollars
2009 change 2008 change 2007 2009
Japan ¥ 702,344 –19.1% ¥ 868,280 –8.4% ¥ 947,587 $ 7,634,174
Americas 894,154 –22.6 1,154,571 –13.6 1,336,168 9,719,065
Europe 995,150 –25.8 1,341,400 –10.5 1,499,286 10,816,848
Other areas 617,553 –15.4 729,910 +4.5 698,305 6,712,533
Total ¥3,209,201 –21.6% ¥4,094,161 –8.6% ¥4,481,346 $34,882,620
Note: This summary of net sales by geographic area is determined by the location where the product is shipped to the customer.
Canon AR09_FS_0325_ipc .indd 50 10.3.26 2:47:02 PM