Canon 2014 Annual Report Download - page 42

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Within the Office Business Unit, office MFDs sales increased
steadily from the year-ago period, led by healthy demand
for new imageRUNNER ADVANCE C350/C250-series models,
Canon’s first color A4 (letter and legal-sized)-model
imageRUNNER ADVANCE machines, and the imagePRESS
C800/C700, Canon’s first color models targeting the light
production market, along with the A3 (12” x 18”)-model
imageRUNNER ADVANCE C5200 series, which continues to
be well accepted in the market. The Océ ColorStream 3000
series of high-speed continuous-feed printers continued
to enjoy solid sales growth from the previous year. Among
laser printers, although color models and multifunction
models recorded sales growth, total sales volume decreased
slightly from the year-ago period owing to the decrease in
demand for monochrome models in European and other
markets that have suffered prolonged economic stagnation.
As a result, coupled with the positive effects of favorable
currency exchange rates, sales for the business unit totaled
¥2,078.7 billion, a year-on-year increase of 3.9%, while oper-
ating profit totaled ¥292.1 billion, an increase of 9.4%.
Within the Imaging System Business Unit, although sales
volume of interchangeable-lens digital cameras declined
owing to the shrinking market—in Japan as a result of the
reaction following the rush in demand prior to the con-
sumption tax increase, and in Europe and other markets
due to worsening economic conditions—the advanced-
amateur-model EOS 7D Mark II achieved healthy growth,
enabling Canon to maintain the market’s top share. Despite
a decline in total sales volume for digital compact cameras,
sales of high-added-value models featuring high image qual-
ity and high-magnification zoom capabilities, such as the
PowerShot G7 X and PowerShot SX60 HS/SX700 HS, record-
ed solid growth, contributing to an improvement in prof-
itability. Inkjet printer hardware sales increased for the
fourth quarter from the year-ago period thanks to the intro-
duction of new products for the year-end shopping season
and marketing tailored to geographical characteristics, but
sales volume for the year decreased due to economic slug-
gishness in Asia and Europe. Sales of consumable supplies
increased from the previous year owing to the steady accu-
mulation of printer units currently operating in the market.
As a result, including the positive effect of favorable cur-
rency change rates, sales for the business unit decreased by
7.3% to ¥1,343.2 billion year on year, while operating profit
declined 4.5% to ¥194.6 billion.
In the Industry and Others Business Unit, ongoing invest-
ment following the recovery in the second half of the previ-
ous year by memory device manufacturers led to increased
unit sales of semiconductor lithography equipment for
memory devices and image sensors. Amid increasing mar-
ket demand for higher definition tools, lithography systems
for the creation of high-definition mid- and small-size pan-
els, in addition to a model introduced in the second half of
the previous year for large panels, recorded healthy growth,
contributing to the boosting of both sales volume and mar-
ket share. In medical equipment, sales volume of new dig-
ital radiography systems, including wireless static-image
models and models capable of capturing dynamic imag-
es, grew steadily, fueling sales growth. Consequently, sales
for the business unit totaled ¥398.8 billion, an increase of
6.4% year on year, while operating profit, although showing
an improvement from the previous year, recorded a loss of
¥21.8 billion owing to investment, including R&D expenses,
into next-generation technologies.
Intersegment sales of ¥93,439 million, representing 2.5% of
total sales, are eliminated from total sales for the three seg-
ments, 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 2014
are summarized as follows.
In Japan, although sales volume of digital compact cam-
eras declined, net sales increased by 1.2% from the previous
year due to solid growth in office MFDs.
In the Americas, despite the favorable effect from depreci-
ation of the yen against U.S. dollar and solid demand for ink-
jet printers, net sales decreased by 2.2% from the previous
year owing to the decline of compact digital camera market.
Despite the favorable effect from depreciation of the
SALES BY SEGMENT
Millions of yen
2014 change 2013 change 2012
Office ¥2,078,732 +3.9% ¥2,000,073 +13.8% ¥1,757,575
Imaging System 1,343,194 -7.3% 1,448,938 +3.1% 1,405,971
Industry and Others 398,765 +6.4% 374,870 -8.1% 407,840
Eliminations (93,439) — (92,501) — (91,598)
Total ¥3,727,252 -0.1% ¥3,731,380 +7.2% ¥3,479,788
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:
FINANCIAL OVERVIEW