Canon 2012 Annual Report Download - page 51

FINANCIAL OVERVIEW 49
the market for 5.5-6th generation small-to-mid-sized panel
production maintained high growth due to the brisk market
of smartphones and tablet PCs.
As a result, Canon’s shipments of FPD lithography equip-
ment decreased from the previous year primarily due to
decline in the market for large-sized panels, where Canon is
particularly competitive, and the delay in the development
of new products for small-to-mid-sized panels, for which the
market has maintained a healthy growth.
Canon expects FPD lithography equipment investments
by panel makers to recover in 2013 mainly led by Chinese
makers. Canon aims to turn around the market share by
revamping its product lineup including products for small-to-
mid-sized panels.
In the medical equipment business, the digital radiogra-
phy (DR) market continued to expand in 2012, mainly in the
emerging markets such as Asia. Moreover, the digital systems
market of developed countries continued to experience a
rapid transition from the digitalization format of computed
radiography (CR) to the newest DR format. While competition
increased with a growing number of new players, the target
market of Canon DR products showed steady growth.
As a result, Canon accelerated sales of Canon’s static DR
products; CXDI-401C/G, CXDI-401C/G COMPACT, CXDI-501C/G,
and CXDI-80C Wireless, all launched in fiscal year 2011, led
the revenue increase for fiscal year 2012. Canon’s dynamic DR
product, CXDI-50RF, also recorded consistent sales growth,
contributing to the overall sales expansion in DR business.
Regarding the ophthalmic products, the optical coher-
ence tomography (“OCT”) market continued to expand in
2012, and Canon expects a further increase in both vol-
ume and competition in the market. In the OCT market,
Canon launched the first Canon-brand OCT, OCT HS-100, in
September 2012. This product was the result of collaboration
with Optopol Technology, S.A. (Poland), a Canon Group con-
solidated subsidiary since 2010.
Canon’s fiscal year 2012 ophthalmic product sales were
supported by increased sales of TX-20/TX-20P a full auto
tonometer and CR-2 Plus high-end non-mydriatic retinal
camera, both released in 2011, and RK-F2, a full auto refkera-
tometer released in 2012.
With the addition of OCT to Canon’s product portfolio,
Canon strives to further increase sales in the ophthalmic
equipment market.
Sales of document scanners manufactured by Canon
Electronics Inc. recovered in North America in addition to
brisk sales in China, India and other Asian countries. As a
result, overall unit sales increased.
Sales of organic LED panel manufacturing equipment
made by Canon Tokki Corporation recorded steady sales from
aggressive capital investment by organic LED panel manu-
facturers on the back of increasing demand for smartphones
and tablet PCs.
Sales of film deposition equipment, made by Canon
ANELVA Corporation, for magnetic heads and hard discs fell
due to the weak PC market, while sales of semiconductor film
deposition equipment significantly increased as demand for
semiconductor devices used in smartphones was robust.
Although sales of die bonders manufactured by Canon
Machinery Inc. decreased due to slow capital investment
by semiconductor manufacturers, sales of equipment
related to secondary batteries used in automobiles and
smartphones increased.
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 cur-
rency exchange rate fluctuations; the uncertainty of Canon’s
ability to implement its plans to localize production and
other measures to reduce the impact of foreign currency
exchange rate fluctuations; uncertainty as to economic con-
ditions 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 prod-
ucts that incorporate new technology on a timely basis, are
competitively priced, and achieve market acceptance; the pos-
sibility 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.