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CAJ Canon

Filed: 26 Apr 21, 6:29am

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of …. 

 April

 ……………………………………………… ,  

2021

 

 

  CANON INC.  
  (Translation of registrant’s name into English)  
  30-2, Shimomaruko 3-Chome, Ohta-ku, Tokyo 146-8501, Japan  
  (Address of principal executive offices)  

[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F

 X Form 40-F   

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes

    

No

 X

[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-....................


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

CANON INC.

 
    (Registrant) 

 

Date….

 April 26, 2021         By....../s/.......... Sachiho Tanino.............
                                               (Signature)*
     
     
     
     
     

                     Sachiho Tanino

                     General Manager

                     Consolidated Accounting Div.

                     Canon Inc.

*Print the name and title of the signing officer under his signature.

The following materials are included.

 

1.

 RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2021


LOGO

CONSOLIDATED RESULTS FOR

THE FIRST QUARTER ENDED MARCH 31, 2021

April 26, 2021

CONSOLIDATED RESULTS

 

       (Millions of yen, thousands of U.S. dollars, except per share amounts) 
   Actual   Projection 
   Three months
ended
March 31, 2021
   Three months
ended
March 31, 2020
   Change(%)   Three months
ended
March 31, 2021
  ��Year ending
December 31,
2021
   Change(%) 

Net sales

  ¥842,651   ¥782,312   +7.7   $7,591,450   ¥3,500,000   +10.8 

Operating profit

   70,564    32,877   + 114.6    635,712    198,000   +79.1 

Income before income taxes

   66,048    34,511   +  91.4    595,027    211,000   +62.0 

Net income attributable to Canon Inc.

  ¥44,454   ¥21,906   +102.9   $400,486   ¥140,000   +68.0 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Canon Inc. shareholders per share:

 

  

- Basic

  ¥42.51   ¥20.69   +105.5   $0.38   ¥133.89   +68.7 

- Diluted

   42.50    20.68   +105.5    0.38    133.85   +68.7 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   Actual     
   As of
March 31, 2021
   As of
December 31, 2020
   Change(%)   As of
March 31, 2021
 

Total assets

  ¥4,734,410   ¥4,625,614   + 2.4   $42,652,342 
  

 

 

   

 

 

   

 

 

   

 

 

 

Canon Inc. shareholders’ equity

  ¥2,670,231   ¥2,575,031   + 3.7   $24,056,135 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Notes:

 

1. Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.

 

2. U.S. dollar amounts are translated from yen at the rate of JPY 111= U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of March 31, 2021, solely for the convenience of the reader.

 

Canon Inc.  30-2, Shimomaruko 3-chome, Ohta-ku,
Headquarter office  Tokyo 146-8501, Japan
  Phone: +81-3-3758-2111

 

- 1 -


I. Operating Results and Financial Conditions

2021 First Quarter in Review

Looking back at the first quarter of 2021, the global economy gradually recovered as a result of balanced measures to curb infections and resume economic activities despite no indications that the spread of the coronavirus disease (“COVID-19”) pandemic worldwide was declining. In the U.S., the economy gradually recovered as a result of increased personal consumption and capital investment through economic measures decided by the U.S. government at the end of 2020. In Europe, because of the resurgence of infections, largely due to the COVID-19 variant from the U.K., the restriction of economic activity was prolonged and some countries reimposed lockdowns. In China, although the number of new COVID-19 cases increased, economic recovery continued due to increased domestic demand and exports. In other emerging markets, economies were stagnant due to the resurgence of COVID-19 infections. In Japan, the trend toward economic recovery continued, including exports and capital investments.

Amid these conditions, in the markets in which Canon operates, demand for office multifunction devices (MFDs), for both color and monochrome models showed moderate recovery. For laser printers, demand was above that of the previous year, mainly for monochrome models. For inkjet printers, demand in home use remained solid in developed countries and emerging countries. For cameras, the market showed signs of improvement due to a recovery in consumption centering on mirrorless cameras. For medical equipment, the trend towards recovery continued due to increased sales activities focusing on medical institutions. For industrial equipment, demand for both semiconductor lithography equipment and FPD (Flat Panel Display) lithography equipment remained solid.

The average value of the yen in the first quarter was ¥106.11 against the U.S. dollar, a year-on-year appreciation of approximately ¥3, and ¥127.72 against the euro, a year-on-year depreciation of approximately ¥8.

As for the first quarter, although unit sales of office MFDs were above those of the same period of the previous year, unit sales of equipment for the production printing market declined compared with the same period of the previous year, due to a moderate recovery in demand. For unit sales of laser printers, although monochrome models were above those of the same period of the previous year due to increased demand stemming from remote working, color models were below those of the same period of the previous year. Sales of services and consumables decreased particularly for office MFDs due to stagnation in customers’ print volumes amid the spread of COVID-19, although corporate activities gradually headed toward a recovery. For inkjet printers, unit sales, including those of Refillable Ink Tank Printers, were above those of the same period of the previous year due to solid global demand. For interchangeable-lens digital cameras, unit sales were above those of the same period of the previous year due to strong sales of the EOS R5 and EOS R6 full-frame mirrorless cameras. As for network cameras, which are being used in a growing range of applications, sales increased due to the strengthening of sales activities. For medical equipment, sales increased in major areas as a result of securing opportunities with medical institutions supported by the Japanese government. While semiconductor lithography equipment remained solid, sales for FPD lithography equipment were significantly above those of the same period of the previous year. However, sales for organic LED (OLED) panel manufacturing equipment were below those of the same period of the previous year. Under these conditions, first-quarter net sales increased by 7.7% year-on-year to ¥842.7 billion. Gross profit as a percentage of net sales decreased by 0.2 points to 45.6%. First-quarter gross profit increased by 7.2% year-on-year to ¥384.4 billion. Operating expenses decreased by 3.7% year-on-year to ¥313.8 billion, due to the continued controls of expenses. As a result, operating profit increased by 114.6% year-on-year to ¥70.6 billion. Other income (deductions) decreased by ¥6.2 billion year-on-year to a loss of ¥4.5 billion, mainly due to currency exchange losses, while income before income taxes increased by 91.4% year-on-year to ¥66.0 billion and net income attributable to Canon Inc. increased by 102.9% year-on-year to ¥44.5 billion.

Basic net income attributable to Canon Inc. shareholders per share was ¥42.51 for the first quarter, a year-on-year increase of ¥21.82.

 

- 2 -


Results by Segment

Looking at Canon’s first-quarter performance by business unit, in the Printing Business Unit, unit sales of office MFDs increased compared with the same period of the previous year, thanks to strong sales of the imageRUNNER ADVANCE DX series. For equipment for the production printing market, although sales of some products increased, unit sales as a whole were below those of the same period of the previous year due to a moderate recovery of demand. As for laser printers, while unit sales of monochrome models increased compared with the same period of the previous year due to increase in demand stemming from remote working, unit sales of color models were below those of the same period of the previous year. Sales of services and consumables declined as a result of stagnating customer print volumes particularly for office MFDs, although corporate activities gradually headed toward a recovery. For inkjet printers, unit sales, including those of Refillable Ink Tank Printers, increased compared with the same period of the previous year based on strong global demand. These factors resulted in total sales for the business unit of ¥469.4 billion, a year-on-year decrease of 1.8%, while income before income taxes decreased by 3.8% year-on-year to ¥54.7 billion.

As for the Imaging Business Unit, unit sales of interchangeable-lens digital cameras were above those of the same period of the previous year as sales of the EOS R5 and EOS R6 have grown with the shift to mirrorless models, and sales of interchangeable lenses increased significantly due to an expansion of the lens product lineup. As for network cameras, despite the continued impact of COVID-19, sales increased mainly as a result of strengthening sales activities of software for such diversified applications as remote monitoring and monitoring of congested and confined spaces, as well as conventional market needs including crime prevention and disaster monitoring tools. These factors resulted in total sales for the business unit of ¥148.6 billion, a year-on-year increase of 24.0%, while income before income taxes totaled ¥18.1 billion resulting in a recovery from a deficit for the same period of the previous year.

As for the Medical Business Unit, although the resurgence of COVID-19 infections had an impact on business negotiations and installation, Canon captured the opportunity in Japan to support the purchase of equipment for medical institutions using government subsidies. Sales also increased in Europe and the United States due to strong sales of computed tomography (CT) systems, diagnostic X-ray systems and diagnostic ultrasound systems. These factors resulted in total sales for the business unit of ¥124.4 billion, a year-on-year increase of 17.3%, while income before income taxes increased by 184.2% year-on-year to ¥11.7 billion.

As for the Industrial & Others Business Unit, regarding semiconductor lithography equipment, demand for memory devices, image sensors and automotive devices remained solid. As a result, unit sales remained at the same level as the previous year, when sales were strong. For FPD lithography equipment, there was growth in demand for panels. As a result, unit sales increased significantly from the previous year when there were delays in equipment installation due to COVID-19. For OLED panel manufacturing equipment, sales decreased. These factors resulted in total sales for the business unit of ¥124.6 billion, a year-on-year increase of 26.0%, while income before income taxes totaled ¥9.2 billion, a year-on-year increase of 30.9%.

Cash Flow

In the first quarter, cash flow from operating activities increased by ¥65.9 billion year-on-year to ¥129.2 billion due to an increase in profit and working capital improvement. Cash flow used in investing activities decreased by ¥4.3 billion year-on-year to ¥39.3 billion mainly due to a decrease of investment in production equipment. Accordingly, free cash flow increased by ¥70.2 billion compared with that of the previous year to ¥90.0 billion.

Cash flow from financing activities recorded an outlay of ¥25.8 billion mainly due to dividend payout.

Owing to these factors, as well as the impact from foreign currency exchange adjustments, cash and cash equivalents increased by ¥75.7 billion to ¥483.4 billion from the end of the previous year.

 

- 3 -


Outlook

Looking at the global economy from the second quarter onwards, while expectations are increasing for COVID-19 vaccines that are gradually being administered around the world, it will take time to see a full-scale recovery of the global economy through balancing measures to curb infections and resume economic activities. In addition, the risk of delays for delivery of goods due to the high demand for international freight transport and delays for the supply of semiconductor chips are becoming apparent. Under these conditions, economic prospects continue to remain uncertain throughout the world. However, the pace of the world economy is expected to recover moderately over the long term thanks to various economic measures and fiscal policies in each country and region.

In the markets in which Canon operates, for office MFDs, amid an expected recovery of corporate activities, although a recovery of sales of services and consumables is slower than expected, demand for the imageRUNNER ADVANCE DX series is expected to increase. For laser printers, demand is also expected to increase due to signs of recovery of demand in offices as well as in home use. For inkjet printers, demand is expected to remain solid due to increased print volumes resulting from remote work and education, which have become more commonplace due to the impact of the resurgence of COVID-19 infections. As for interchangeable-lens digital cameras, the overall market is expected to remain at the same level as the previous year. Canon will strengthen sales of full-frame mirrorless cameras and interchangeable lenses while reinforcing sales promotion efforts amid a shift to mirrorless cameras and improving our product mix. For network cameras, the market is expected to continue growing due to the expansion of emerging markets and increasing demand for video analysis solutions. As for the medical equipment market, demand is expected to continue to recover due to progress in sales activity focusing on medical institutions despite concerns about impact of the resurgence of COVID-19 infections. For semiconductor lithography equipment, while demand for memory devices is expected to remain solid, demand for image sensors and automotive devices is expected to continue to increase. For FPD lithography equipment, demand will remain solid as panel manufacturers are expected to increase capital investments.

With regard to currency exchange rates on which Canon bases its performance outlook for the second quarter onwards, Canon anticipates exchange rates of ¥105 to the U.S. dollar and ¥125 to the euro, representing appreciation of approximately ¥1 against the U.S. dollar and depreciation of approximately ¥4 against the euro as the annual average rates of the previous year.

Taking into consideration exchange rate assumptions, Canon’s first quarter performance, as well as the current market forecast and sales prospects of new products, Canon projects full-year consolidated net sales of ¥3,500.0 billion, a year-on-year increase of 10.8%; operating profit of ¥198.0 billion, a year-on-year increase of 79.1%; income before income taxes of ¥211.0 billion, a year-on-year increase of 62.0%; and net income attributable to Canon Inc. of ¥140.0 billion, a year-on-year increase of 68.0%, which were revised upward from its previous outlook.

With regards to dividend forecast for the fiscal year 2021 which had yet to be decided, taking into consideration the earnings forecast mentioned above, Canon plans to distribute a yearly dividend of ¥90.00 per share, consisting of ¥45.00 for both the interim and year-end dividend. For more details, please refer to “Notice Regarding Projected Dividend for the Fiscal Year Ending December 31, 2021 (the 121st Business Term)” released separately on April 26, 2021.

Consolidated Outlook

 

Fiscal year  Millions of yen     
   

Year ending

December 31, 2021

   Change   Year ended
December 31, 2020
   Change (%) 
   Previous Outlook (A)   Revised Outlook (B)   (B - A)   Results (C)   (B - C) / C 

Net sales

   3,400,000    3,500,000    100,000    3,160,243    +10.8% 

Operating profit

   158,500    198,000    39,500    110,547    +79.1% 

Income before income taxes

   176,500    211,000    34,500    130,280    +62.0% 

Net income attributable to Canon Inc.

   115,000    140,000    25,000    83,318    +68.0% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 4 -


This document contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management’s views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” or “should” and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon’s targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this document. A detailed description of these and other risk factors is included in Canon’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements.

 

- 5 -


CANON INC. AND SUBSIDIARIES

CONSOLIDATED

II. Financial Statements

1. CONSOLIDATED BALANCE SHEETS

 

   Millions of yen 
   As of
   March 31, 2021   
  As of
December 31, 2020
            Change           

ASSETS

    

Current assets

   1,888,873   1,789,143   99,730 

Cash and cash equivalents

   483,403   407,684   75,719 

Short-term investments

   91   71   20 

Trade receivables

   522,140   546,771   (24,631

Inventories

   595,906   562,807   33,099 

Prepaid expenses and other current assets

   300,554   284,556   15,998 

Allowance for credit losses

   (13,221  (12,746  (475

Non-current assets

   2,845,537   2,836,471   9,066 

Noncurrent receivables

   16,530   17,276   (746

Investments

   53,231   49,994   3,237 

Property, plant and equipment, net

   1,040,623   1,037,680   2,943 

Operating lease right-of-use assets

   106,246   107,361   (1,115

Intangible assets, net

   315,029   318,497   (3,468

Goodwill

   921,317   915,564   5,753 

Other assets

   394,682   392,066   2,616 

Allowance for credit losses

   (2,121  (1,967  (154
  

 

 

  

 

 

  

 

 

 

Total assets

   4,734,410   4,625,614   108,796 
  

 

 

  

 

 

  

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities

   1,376,332   1,326,189   50,143 

Short-term loans and current portion of long-term debt

   410,095   392,235   17,860 

Trade payables

   317,400   303,809   13,591 

Accrued income taxes

   18,504   18,761   (257

Accrued expenses

   326,956   317,716   9,240 

Current operating lease liabilities

   33,353   32,307   1,046 

Other current liabilities

   270,024   261,361   8,663 

Non-Current liabilities

   475,259   515,384   (40,125

Long-term debt, excluding current installments

   4,759   4,834   (75

Accrued pension and severance cost

   309,367   345,897   (36,530

Noncurrent operating lease liabilities

   74,438   76,796   (2,358

Other noncurrent liabilities

   86,695   87,857   (1,162
  

 

 

  

 

 

  

 

 

 

Total liabilities

   1,851,591   1,841,573   10,018 
  

 

 

  

 

 

  

 

 

 

Canon Inc. shareholders’ equity

   2,670,231   2,575,031   95,200 

Common stock

   174,762   174,762   -   

Additional paid-in capital

   404,452   404,620   (168

Retained earnings

   3,481,430   3,478,807   2,623 

Legal reserve

   69,605   69,436   169 

Other retained earnings

   3,411,825    3,409,371    2,454  

Accumulated other comprehensive income (loss)

   (232,039  (324,789  92,750 

Treasury stock, at cost

   (1,158,374  (1,158,369  (5

Noncontrolling interests

   212,588   209,010   3,578 
  

 

 

  

 

 

  

 

 

 

Total equity

   2,882,819   2,784,041   98,778 
  

 

 

  

 

 

  

 

 

 

Total liabilities and equity

   4,734,410   4,625,614   108,796 
  

 

 

  

 

 

  

 

 

 

 

* Canon has changed the presentation of allowance for credit losses as defined in ASU No. 2016-13, Financial Instruments - Credit Losses - (Topic 326): Measurement of Credit Losses on Financial Instruments, from the beginning of the first quarter of 2021. Consolidated balance sheet for the year ended December 31, 2020 also has been reclassified.

 

 

   Millions of yen   
   As of
March 31, 2021
  As of
December 31, 2020
 

Notes:

   

1. Accumulated depreciation

   2,822,104    2,770,106  

2. Accumulated other comprehensive income (loss):

   

Foreign currency translation adjustments

   (39,255  (113,646

Net gains and losses on derivative instruments

   (1,408  100 

Pension liability adjustments

   (191,376  (211,243

 

- 6 -


CANON INC. AND SUBSIDIARIES

CONSOLIDATED

2. CONSOLIDATED STATEMENTS OF INCOME AND

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Consolidated statements of income

 

   Millions of yen        
   Three months
ended

March 31, 2021
  Three months
ended
March 31, 2020
  Change(%) 

Net sales

   842,651   782,312   +    7.7   

Cost of sales

   458,292   423,649    
  

 

 

  

 

 

    

Gross profit

   384,359   358,663   +    7.2   

Operating expenses:

      

Selling, general and administrative expenses

   246,435   257,843    

Research and development expenses

   67,360   67,943    
  

 

 

  

 

 

    
   313,795   325,786    
  

 

 

  

 

 

    

Operating profit

   70,564   32,877   +    114.6   

Other income (deductions):

      

Interest and dividend income

   424   1,138    

Interest expense

   (168  (186   

Other, net

   (4,772  682    
  

 

 

  

 

 

    
   (4,516  1,634    
  

 

 

  

 

 

    

Income before income taxes

   66,048   34,511   +    91.4   

Income taxes

   17,482   10,425    
  

 

 

  

 

 

    

Consolidated net income

   48,566   24,086    

Less: Net income attributable to noncontrolling interests

   4,112   2,180    
  

 

 

  

 

 

    

Net income attributable to Canon Inc.

   44,454   21,906   +    102.9   
  

 

 

  

 

 

    

Consolidated statements of comprehensive income

      
   Millions of yen        
   Three months
ended

March 31, 2021
  Three months
ended
March 31, 2020
  Change(%) 

Consolidated net income

   48,566   24,086   +    101.6   

Other comprehensive income (loss), net of tax

      

Foreign currency translation adjustments

   75,218   (61,032   

Net gains and losses on derivative instruments

   (1,490  549    

Pension liability adjustments

   19,904   2,352    
  

 

 

  

 

 

    
   93,632   (58,131   
  

 

 

  

 

 

    

Comprehensive income (loss)

   142,198   (34,045    -     

Less: Comprehensive income attributable to noncontrolling interests

   4,994   2,309    
  

 

 

  

 

 

    

Comprehensive income (loss) attributable to Canon Inc.

   137,204   (36,354    -     
  

 

 

  

 

 

    

 

- 7 -


CANON INC. AND SUBSIDIARIES

CONSOLIDATED

3. DETAILS OF SALES

 

   Millions of yen        
Sales by business unit  Three months ended
March 31, 2021
  Three months ended
March 31, 2020
  Change(%) 

Printing

   469,355   477,841   -    1.8 

Imaging

   148,604   119,825   +    24.0 

Medical

   124,414   106,094   +    17.3 

Industrial and Others

   124,552   98,812   +    26.0 

Eliminations

   (24,274  (20,260    -     
  

 

 

  

 

 

  

 

 

 

Total

   842,651   782,312   +    7.7 
  

 

 

  

 

 

  

 

 

 
   Millions of yen        
Sales by region  Three months ended
March 31, 2021
  Three months ended
March 31, 2020
  Change(%) 

Japan

   224,268   214,678   +    4.5 

Overseas:

      

Americas

   218,358   215,435   +    1.4 

Europe

   210,989   197,803   +    6.7 

Asia and Oceania

   189,036   154,396   +    22.4 
  

 

 

  

 

 

  

 

 

 
   618,383   567,634   +    8.9 
  

 

 

  

 

 

  

 

 

 

Total

   842,651   782,312   +    7.7 
  

 

 

  

 

 

  

 

 

 

 

*

Based on the realignment of Canon’s internal reporting and management structure, from the beginning of the first quarter of 2021, Canon has changed the name and structure of segments to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. Operating results for the three months ended March 31, 2020 also have been reclassified.

 

Notes:

 

1.  The primary products included in each of the segments are as follows:

 

Printing Business Unit:

 

Office multifunction devices (MFDs) / Document solutions / Laser multifunction printers (MFPs) / Laser printers / Inkjet printers / Image scanners / Calculators / Digital continuous feed presses / Digital sheet-fed presses / Wide-format printers / Large format inkjet printers / Commercial photo printers

 

Imaging Business Unit:

 

Interchangeable-lens digital cameras / Digital compact cameras / Interchangeable lenses / Compact photo printers / Network cameras / Digital camcorders / Digital cinema cameras / Multimedia projectors / Broadcast equipment

 

Medical Business Unit:

 

Digital radiography systems / Diagnostic X-ray systems / Computed tomography (CT) systems /

Magnetic resonance imaging (MRI) systems / Diagnostic ultrasound systems / Clinical chemistry analyzers / Ophthalmic equipment

 

Industrial and Others Business Unit:

 

Semiconductor lithography equipment / FPD (Flat panel display) lithography equipment / Organic LED (OLED) panel manufacturing equipment / Vacuum thin-film deposition equipment / Die bonders / Micromotors / Handy terminals / Document scanners

 

2.  The principal countries and regions included in each regional category are as follows:

 

Americas: United States of America, Canada, Latin America

Europe: United Kingdom, Germany, France, Netherlands, European countries, Middle East and Africa

Asia and Oceania: China, Asian countries, Australia

 

- 8 -


CANON INC. AND SUBSIDIARIES

CONSOLIDATED

4. CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Millions of yen 
   Three months ended
March 31, 2021
  Three months ended
March 31, 2020
 

Cash flows from operating activities:

   

Consolidated net income

   48,566   24,086 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

   

Depreciation and amortization

   50,885   53,790 

Loss on disposal of fixed assets

   624   533 

Deferred income taxes

   66   (6,418

Decrease in trade receivables

   39,865   58,129 

Increase in inventories

   (17,158  (28,255

Increase (decrease) in trade payables

   23,205   (7,544

Decrease in accrued income taxes

   (654  (2,527

Increase (decrease) in accrued expenses

   2,780   (22,871

Decrease in accrued (prepaid) pension and severance cost

   (18,019  (3,625

Other, net

   (914  (1,949
  

 

 

  

 

 

 

Net cash provided by operating activities

   129,246   63,349 

Cash flows from investing activities:

   

Purchases of fixed assets

   (41,177  (44,275

Proceeds from sale of fixed assets

   967   1,083 

Purchases of securities

   (110  (130

Proceeds from sale and maturity of securities

   159   86 

Increase in time deposits, net

   (15  (236

Acquisitions of businesses, net of cash acquired

   -       (127

Other, net

   911   (7
  

 

 

  

 

 

 

Net cash used in investing activities

   (39,265  (43,606

Cash flows from financing activities:

   

Repayments of long-term debt

   (468  (259

Increase in short-term loans, net

   18,099   150,638 

Dividends paid

   (41,831  (85,107

Repurchases and reissuance of treasury stock, net

   (5  (50,005

Other, net

   (1,582  (1,651
  

 

 

  

 

 

 

Net cash (used in) provided by financing activities

   (25,787)   13,616 

Effect of exchange rate changes on cash and cash equivalents

   11,525   (6,231
  

 

 

  

 

 

 

Net change in cash and cash equivalents

   75,719   27,128 

Cash and cash equivalents at beginning of period

   407,684   412,814 
  

 

 

  

 

 

 

Cash and cash equivalents at end of period

   483,403   439,942 
  

 

 

  

 

 

 

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

5. NOTE FOR GOING CONCERN ASSUMPTION

Not applicable.

6. SIGNIFICANT CHANGES IN CANON INC. SHAREHOLDERS’ EQUITY

None.

7. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.

 

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