Canon 2011 Annual Report Download - page 55

Strategy Business Units Management System FINANCIAL SECTION
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FINANCIAL SECTION
ous fall in DRAM prices.
In the market for semiconductor lithography equipment,
the recovery trend from 2010 continued and grew strongly
in 2011. By the type of lighting source, cutting-edge equip-
ment using ArF immersion now account for roughly
one-third of the market as memory makers and foundries
have been aggressively investing in miniaturization. At the
same time, manufacturers are starting to invest in equip-
ment using i-line for small diameter wafers used in image
sensors, power devices and LEDs, as well as for new markets
such as 3D mountings for TSV connections.
As a result, our shipments of semiconductor lithography
equipment in 2011 significantly increased compared to 2010.
By region, sales in South Korea have been increasing steadily,
while in Japan demand has significantly increased sales of
the equipment for sensors and image devices.
In 2011, the market for LCD lithography equipment
remained relatively flat compared to the previous year. The
market for LCD lithography equipment under 5.5th genera-
tion grew significantly in 2011 from the previous year due to
the rapid growth in the markets for smartphones and media
tablets. However, the market for LCD lithography equipment
over 6th generation decreased in 2011 from the previous year
due to weak investment in 2011 resulting from aggressive
investment in 2010, and price reductions for large LCD pan-
els. In China, although the 8th generation production lines of
LCD panels launched in 2011 led to a significant expansion in
the Chinese market, the growth could not fully absorb the
effects of decreased demand in the overall LCD lithography
equipment market.
In 2011, our shipments of LCD lithography equipment
markedly fell compared to the previous year due primarily to
the shrinkage of the over 6th generation market, where
Canon is particularly competitive, and the delay of develop-
ment of LCD lithography equipment under 5.5th generation,
for which the market has been growing rapidly.
The market for static digital X-ray equipment has been
expanding, although competition has become more severe
through the entry of computed radiography manufacturers
into the market. The medical equipment market in Asia
(mainly China) is expanding rapidly, and the static digital X-
ray equipment market has followed this trend.
In 2011, Canon’s overall sales in market for static digital X-
ray equipment increased steadily compared to the previous
fiscal year. The thin and lightweight CXDI-70C Wireless digi-
tal radiography system, which we released in 2010,
contributed to the increase of sales. We also focused on
emerging markets and have been successful in increasing
sales there, especially in China. In addition, Canon acceler-
ated sales of CXDI-50RF dynamic/static digital radiography
system in Europe and the United States. During 2011, new
products, CXDI-401C/G, CXDI-401C/G COMPACT, CXDI-501C/G
and CXDI-80C Wireless were launched.
Regarding the ophthalmic products, the optical coherence
tomography (!OCT") market has been expanding year by year.
In order to keep pace with these trends, Canon is striving to
increase sales by expanding competitive lineup of products to
gain the market acceptance.
Our sales of TX-20/TX-20P full auto tonometer, which was
released in 2011, and our CR-2 compact non-mydriatic retinal
camera increased steadily and contributed to our 2011 result.
Moreover, in 2011 we released CR-2 Plus digital non-mydriatic
retinal camera with a Fundus Autofluorescence (FAF) mode
and aim to increase sales in this market.
Sales in 2011 of document scanners manufactured by
Canon Electronics Inc. declined at a level in line with the
decline recorded in 2010, primarily due to stagnation in
sales of check scanners (i.e., image scanners specialized for
scanning bills and checks) to North American financial
institutions, which was partially offset by higher sales in
Japan, Europe and other regions.
Sales of organic EL display manufacturing equipment
made by Canon Tokki Corporation recorded significant
gains in 2011 deriving primarily from robust capital invest-
ments by organic EL panel manufacturers.
Die bonders made by Canon Machinery Inc. booked lower
sales in 2011 as semiconductor manufacturers reduced capi-
tal investments, but FA system-related devices recorded a
significant sales increase, due primarily to the continuation
of strong demand trend which began in 2010 for facilities
related to secondary automobile batteries in places like
China and South Korea.
In 2011, Canon ANELVA Corporation sales of film deposi-
tion equipment for magnetic heads and discs fell, while LED
film deposition equipment rose and semiconductor film
deposition equipment maintained levels recorded in 2010.
Forward looking statements
The foregoing discussion and other disclosure in this report
contains forward-looking statements that reflect manage-
ment’s current views with respect to certain future events
and financial performance. Actual results may differ materi-
ally from those projected or implied in the forward-looking
statements. Further, certain forward-looking statements are
based upon assumptions of future events that may not prove
to be accurate. The following important factors could cause
actual results to differ materially from those projected or
implied in any forward-looking statements: foreign currency
exchange rate fluctuations; the uncertainty of Canon’s abil-
ity to implement its plans to localize production and other
measures to reduce the impact of foreign currency exchange
rate fluctuations; uncertainty as to economic conditions in
Canon’s major markets; uncertainty of continued demand
for Canon’s high-value-added products; Canon’s ability to
continue to develop products and to market products that
incorporate new technology on a timely basis, are competi-
tively priced, and achieve market acceptance; the possibility
of losses resulting from foreign currency transactions
designed to reduce financial risks from changes in foreign
currency exchange rates; and inventory risk due to shifts in
market demand.