Canon 2013 Annual Report Download - page 42

Strategy FINANCIAL SECTION
40 Corporate DataBusiness Segment Corporate Structure
Within the Office Business Unit, as for office MFDs, sales of
color models increased from 2012 led by the imageRUNNER
ADVANCE C5200/C2200 series. Results for high speed contin-
uous feed printers and wide-format printers, sales of the Océ
ColorStream 3000 series showed solid growth. With regard
to laser printers, laser multifunction models recorded strong
growth contributing to a year-on-year increase in sales vol-
ume. As a result, sales for the business unit totaled ¥2,000.1
billion (U.S.$19,048 million) in 2013, an increase of 13.8%
year on year, while operating profit totaled ¥266.9 billion
(U.S.$2,542 million), increasing 31.1%.
Within the Imaging System Business Unit, interchangeable-
lens digital cameras maintained their top market share despite
the challenging environment, which was marked by a drop
in demand in Europe and China due to the economic down-
turn, although demand in Japan continued to expand. In par-
ticular, the EOS 5D Mark III and 70D advanced-amateur-model
digital SLR cameras continued to realize healthy growth.
Furthermore, in Japan, the new entry-level EOS Digital Rebel
SL1 and T5i cameras proved popular. As for digital compact
cameras, although total sales volume declined due to the mar-
ket slowdown and the increasing popularity of smartphones,
sales volume increased from 2012 for high-added-value mod-
els incorporating features that differentiate them from smart-
phones, such as large-size image sensors and models like
the PowerShot SX50 HS and SX510 HS, which feature high-
magnification zoom lenses. With regard to inkjet printers,
despite the harsh market environment due to the rapid fall
in demand in emerging markets, sales volume showed solid
growth thanks to efforts to boost sales through the introduc-
tion of new products offering enhanced support for cloud
services. As a result, sales for the business unit increased by
3.1% to ¥1,448.9 billion (U.S.$13,799 million) in 2013, while
operating profit totaled ¥203.8 billion (U.S.$1,941 million), a
decrease of 3.1%.
In the Industry and Others Business Unit, within semiconduc-
tor lithography equipment, despite an increase in sales volume
for memory devices in the latter half of the year 2013 fueled
by renewed investment in capital expenditure by memory
manufacturers, sales volumes for the year decreased slightly
owing to restrained capital expenditure in the first half. As for
FPD lithography equipment, sales volume remained the same
as for the previous year amid the recovery in investment for
large-size panels. With respect to medical equipment, sales vol-
ume for Canon’s mainstay digital radiography systems steadily
increased. Consequently, sales for the business unit totaled
¥374.9 billion (U.S.$3,570 million) in 2013, a decrease of 8.1%
year on year, while operating profit recorded a loss of ¥25.3 bil-
lion (U.S.$241 million), declining by ¥31.2 billion (U.S.$298 mil-
lion) from 2012.
Intersegment sales of ¥92,501 million (U.S.$880,962 million),
representing 2.4% of total sales, are eliminated from total sales
for the three segments, 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.
A geographical analysis indicates that net sales in 2013
increased in all areas except Japan.
In Japan, sales slightly decreased in 2013 due to the slow-
down in the Industry and Others Business, although the
interchangeable-lens digital cameras continued to expand.
In the Americas, despite the decline in sales of digital com-
pact cameras from the previous year due to the significant
slowdown in the market, increased sales of inkjet printers
including consumable supplies, along with the depreciation
of the yen against the U.S. dollar, caused sales to increase by
12.7% in 2013.
In Europe, although sales of interchangeable lens digital
cameras declined due to shifting to low-end models as well as
declining sales of digital compact cameras owing to shrinking
market, amid increasing uncertainty in European economy
sales of inkjet printers and MFDs showed steady sales growth.
As a result, along with the effect of depreciation of the yen,
sales increased by 10.9% in 2013.
In Asia and Oceania, sales of interchangeable lens digital
cameras, which have been an engine for solid growth in Asia
and Oceania, showed a slowdown in growth. In addition sales
of digital compact cameras and laser printers faced harsh con-
ditions. Inkjet printers including consumable supplies, on
the other hand, showed steady sales growth. Reflecting these
factors and the effect of depreciation of the yen, net sales
increased by 3.2% in 2013.
SALES BY SEGMENT
Millions of yen
Thousands of
U.S. dollars
2013 change 2012 change 2011 2013
Office ¥2,000,073 +13.8% ¥1,757,575 -8.4% ¥1,917,943 $19,048,314
Imaging System 1,448,938 +3.1% 1,405,971 +7.2% 1,312,044 13,799,410
Industry and Others 374,870 -8.1% 407,840 -3.1% 420,863 3,570,190
Eliminations (92,501) — (91,598) — (93,417) (880,962)
Total ¥3,731,380 +7.2% ¥3,479,788 -2.2% ¥3,557,433 $35,536,952
Sales by segment
Please refer to the table of sales by segment in Note 21 of the Notes to Consolidated Financial Statements.
Canon’s sales by segment are summarized as follows: