Form 6-K

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 ….  

 August

  …………………………………………………… ,   2015……  
  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….

  August 25, 2015      By ……/s/…… Shinichi Aoyama ………
                                  (Signature)*

 

 

Shinichi Aoyama

 

Deputy Senior General Manager

 

Group Management Center

 

Canon Inc.

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

The following materials are included.

1. Interim Report for the 115th Business Term


LOGO


To  Our  Shareholders

 

 

    We would like to present our report for the summary of the first half of our 115th business term (from January 1, 2015 to June 30, 2015).

 

        

LOGO

 

    In the world economy during the first half of the current business term, the U.S. continued to experience a steady recovery and the European economy was also picking up, led by the U.K. and Germany. However, the slowdown in the pace of economic expansion in China continued from last year and the economy in Southeast Asia also slowed down. The Japanese economy continued to recover at a moderate pace as can be seen by, for example, the signs of recovery in corporate earnings.

    Regarding the results of the Canon Group, in the Office Business Unit, in addition to the robust sales of office multifunction devices (MFDs) and laser printers, sales of commercial printers manufactured by Océ grew steadily. In the Imaging System Business Unit, although unit sales for digital cameras overall declined, signs of a partial upswing in demand for interchangeable lens cameras and compact cameras were observed. Meanwhile, sales of inkjet printers failed to grow, partly reflecting the effect of declining demand in Southeast Asia. In the Industry and Others Business Unit, unit sales of semiconductor lithography equipment increased. Additionally, in order to further strengthen our network camera business, we welcomed Sweden-based Axis AB – the global leader in network cameras – to the Canon Group.

    As a result of the above, on a consolidated basis, we recorded net sales of 1,831.9 billion yen (up 2.0%

 
   
   

 

1


 

from the first half of the 114th business term), income before income taxes of 164.5 billion yen (down 16.1%), and net income attributable to Canon Inc. of 102.1 billion yen (down 20.5%) for the first half of the current business term.

    For the interim dividend, from the perspective of ensuring a stable return to shareholders, we decided to pay 75.00 yen per share (the interim dividend for the previous business term was 65.00 yen per share). The dividend is payable on August 26.

    As for our economic outlook, although we cannot be optimistic about the prospects of either the European economy, which is plagued with the Greek debt crisis, or the economies of China and other Asian countries, we still expect the world economy to continue on the path to moderate recovery.

    The Canon Group intends to bring its five-year management plan, Phase IV of our “Excellent Global Corporation Plan,” to a successful end in the current business term, which is the final year of the plan, by creating a strong business foundation to return to the growth path and make great strides in the next phase.

    We look forward to your continued support and encouragement.

August, 2015

 

 

Chairman & CEO    FUJIO MITARAI

                    
              
              
              
        

 

To Our Shareholders

 

 

  

 

P.   1

 

 

  
              
              
                    
              
              
        

 

 

Excellent Global Corporation Plan

  

 

 

P.   3

  
        

Phase IV 2011~2015

 

 

     
              
              
                    
              
              
        

Highlights of Consolidated Financial Results

   P.   5   
        

Office Business Unit

   P.   6   
        

Imaging System Business Unit

   P.   7   
        

Industry and Others Business Unit

 

 

   P.   8

 

 

  
                    
              
              
              
        

 

 

Business Topics

  

 

 

P.   9

  
        

CSR and Environmental Initiatives

   P.   10   
              
              
              
                    
              
              
              
              
        

Consolidated Balance Sheets ·

   P.   11   
        

Consolidated Statements of Income

 

     
              
              
                    
              
              
              
        

 

 

Corporate Profile and Shares of the Company

  

 

 

P.   13

  
        

Information for Shareholders

   P.   14   
              
              
              
                    
              
              

LOGO

 

 

2


  

 

Excellent Global Corporation Plan
Phase IV
2011~2015

  
  
  

“Aiming for the Summit — Speed & Sound Growth —”

 

 

Seeking transformation and continued growth,

Canon has established six main strategies

 

Canon has been implementing its Excellent Global Corporation Plan since 1996

 

with the goal of becoming a truly excellent global company admired and respected all over the world.

 

Following its steady implementation of Phases I, II and III, Canon started Phase IV in 2011.

 

Having established six main strategies, Canon is undertaking a wide variety of initiatives to achieve its targets for 2015.

 

 

  

 

LOGO

 

3


LOGO

 

4


      
  

Highlights of Consolidated Financial Results

 

     

In the first half of the current business term, the world economy in general continued to recover at a moderate pace although economic growth slowed in China and Southeast Asia. In such an environment, we proactively launched new products and continued to expand sales. As a result, our consolidated net sales increased 2.0% in comparison to the first half of the 114th business term, helped in part by the consolidation of Axis AB.

 

     

Despite our initiatives to improve profitability such as shifting to high value added products, limiting price reduction, and cutting costs throughout the Canon Group, net income attributable to Canon Inc. decreased 20.5% from the first half of the 114th business term on a consolidated basis, mainly due to increases in R&D expenses for new business and new products.

 

  
   LOGO
  LOGO   LOGO

 

5


Office Business Unit

 

    

In the area of office MFDs, while the demand for monochrome machines decreased, sales of color machines were firm. In particular, the “imageRUNNER ADVANCE C5200” series, our main products, continued to perform strongly and the new “C3300” series made an excellent start. In the area of digital production printing systems, sales of color machines such as the “imagePRESS C800” series were brisk and overall sales including monochrome machines also outperformed the results of the first half of the previous business term. As for Océ, sales of high-speed continuous feed printers were strong, supported by, among others, the strong demand in the Americas. Unit sales of laser multifunction printers (MFPs) and laser printers increased from the first half of the previous business term mainly due to an increase in demand for high value added products.

As a result of the above, sales for this business unit increased by 3.3% on a consolidated basis, in comparison to the first half of the 114th business term.

    

LOGO

 

 

Product Introduction

 

 

LOGO

     LOGO

imageRUNNER ADVANCE C3330F

A3 color multifunction device that provides high-quality printing for all business needs, shorter times for consumable changeover, etc. and improved operability and productivity.

    

Océ ColorStream 3000 Twin series

High-speed continuous feed printer for applications requiring high speed and high quality such as invoice, direct mail, etc. as demanded by the data print services market.

LOGO

 

 

6


Imaging System Business Unit    

LOGO

 

 

As for interchangeable lens digital cameras, the market environment remained challenging particularly in Southeast Asia and Russia, but there were some bright signs including increases in unit sales in the Japanese and the U.S. markets from the first half of the previous business term. In such a situation, the newly launched “EOS M3” and “EOS 5DS/5DS R” were well received in the market. As a whole, the Canon Group maintained a high market share for interchangeable lens digital cameras. In the area of compact digital cameras, although sales decreased, profitability improved as the percentage of high value added models in total sales increased. As for inkjet printers, we promoted new products with improved connectivity with mobile devices, and “MAXIFY,” targeting business users, which resulted in unit sales growth in the U.S. and Western European markets. However, overall unit sales decreased from the first half of the previous business term due to such factors as economic slowdown and increased competition in Asia as well as the shrinking Japanese market. On the other hand, sales of large-format inkjet printers were favorable and sales volume increased from the first half of the previous business term.

   

As a result of the above, sales for this business unit decreased by 4.8% on a consolidated basis, in comparison to the first half of the 114th business term.

 

   
   

 

Product Introduction

 

LOGO     LOGO

EOS 5DS/5DS R

Digital SLR cameras EOS 5DS and 5DS R and the diverse lineup of EF lens-series for a wider world of imaging possibilities.

   

PIXMA PRO-10S

10-ink A3+ inkjet printer that offers high-quality printing and strengthened coordination with image editing software.

 

7


Industry and Others Business Unit    

LOGO

 

 

Semiconductor lithography equipment was supported by the demand arising from the production of memory devices, image sensors, power semiconductors, etc., and, in particular, unit sales of i-line lithography equipment increased significantly. As for FPD lithography equipment, orders were received and products were shipped steadily, supported by healthy capital investment for large-size panels such as 4K displays. In medical equipment, unit sales of digital radiography systems, our main products, decreased due to increased competition. However, as a result of our promotion efforts focused on high value added products, sales revenue increased. As for network cameras, sales of products suitable to monitor interiors of shops, factories, etc., increased and high value added models also received favorable responses. Sales of document scanners manufactured by Canon Electronics Inc. decreased due to sluggish sales in the Americas despite the sales growth in Europe and some other markets.

As a result of the above and the sales contribution of Axis AB, which became our consolidated subsidiary in April, sales for this business unit increased by 18.7% on a consolidated basis, in comparison to the first half of the 114th business term.

   
   
   

 

Product Introduction

 

LOGO     LOGO

FPA-5550iZ

i-line stepper, based on the preceding highly stable and reliable model, that realizes high performance through a shortened exposure time thanks to a high-acceleration stage.

   

Network Camera Systems

HD network cameras for surveillance – the VB-M741LE is equipped with infrared illuminators, enabling surveillance even in 0 lux conditions; the VB-M641VE is a dome camera that can be used in harsh outdoor environments.

LOGO

 

 

8


Business Topics     

Axis AB - the Leader in Network Cameras - Joins Canon Group

 

Canon, in anticipation of future market expansion, made Sweden-based Axis AB (“Axis”) a consolidated subsidiary to strengthen its network camera business, which is expected to be the Canon Group’s growth engine.

Axis possess both excellent product development, backed by its leading network video processing technology, and a sales and service network comprising over 75,000 partner companies worldwide. By utilizing these strengths, this exceptional company continues to realize high growth exceeding market growth and is now a strong contender for top market share by sales revenue.

Canon aims to make a significant forward leap in its network camera business by utilizing the business resources of both Canon and Axis such as by combining the above-mentioned strengths of Axis with Canon’s optical and imaging technologies.

 

Photo: Axis co-founder Martin Gren (right) with Canon Chairman & CEO Fujio Mitarai (left)

     LOGO

Growth rate of video surveillance camera system market *

 

LOGO

    

Network camera market share by sales revenue (2014) *

 

LOGO

 

* External research company data

 

9


  CSR and Environmental Initiatives
 
  Tsuzuri Project - Donation of “Dragon and Clouds” High-Resolution Facsimiles
 

LOGO

 

    

The “Tsuzuri Project” (Official Title: Cultural Heritage Inheritance Project), which aims to preserve original art works at the same time as providing an opportunity for art appreciation by creating high-resolution facsimiles of Japan’s precious cultural heritage through the combination of Canon’s digital technology and Kyoto traditional craftsmanship, is now in its eighth year of operation.

In March 2015, the project donated high-resolution facsimiles for the entire eight panels of “Dragon and Clouds” (owned by the Museum of Fine Arts, Boston, U.S.), an ink painting by Edo-era artist Soga Shohaku, to the Tenryuji Temple in Kyoto.

Features, such as the dragon’s humorous expression, its nails drawn with thick, strong curves, and the clouds uniquely shaded with ink, were faithfully reproduced by the facsimiles, which possessed the same powerful presence and beauty as the original.

  Canon’s Toner Cartridge Recycling Program Celebrates 25th Anniversary
 

LOGO

    

Canon’s Toner Cartridge Recycling Program has now been running 25 years since it was founded in 1990. This program has been collecting and recycling used toner cartridges of copiers and laser printers. The program has now been expanded to 24 countries and regions. As of the end of 2014, it has collected an accumulated total of about 340,000 tons of toner cartridges and achieved accumulated emissions reductions of about 500,000 tons of CO2.

In May, the existing automatic recycling system was renewed, and Canon commenced operation of “CARS-T *,” which realizes a cleaner, quieter recycling environment and an improved recycling volume. Looking forward, Canon will continue to implement initiatives to bring about a resource-recycling society.

 

*  Canon Automated Recycling System for Toner Cartridge

LOGO

 

 

10


Consolidated Balance Sheets · Consolidated Statements of Income      
Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.      

 

Consolidated Balance Sheets

 

  

  
       As of June 30,         As of December 31,   
       2015         2014   

ASSETS

     

Current assets:

     

Cash and cash equivalents

     626,965         844,580   

Short-term investments

     18,141         71,863   

Trade receivables, net

     565,561         625,675   

Inventories

     591,483         528,167   

Prepaid expenses and other current

assets

     328,763         321,648   

Total current assets

     2,130,913         2,391,933   

Noncurrent receivables

     30,117         29,785   

Investments

     72,937         65,176   

Property, plant and equipment, net

     1,261,446         1,269,529   

Intangible assets, net

     239,297         177,288   

Goodwill

     489,558         211,336   

Other assets

     323,808         315,571   
                   

Total assets

     4,548,076         4,460,618   
              

 

(Millions of yen

 

 

     As of June 30,        As of December 31,   
       2015        2014   

LIABILITIES AND EQUITY

    

Current liabilities:

    

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

     804        1,018   

Trade payables

     319,708        310,214   

Accrued income taxes

     49,812        57,212   

Accrued expenses

     323,191        345,237   

Other current liabilities

     216,472        207,698   

Total current liabilities

     909,987        921,379   

Long-term debt, excluding current installments

     1,071        1,148   

Accrued pension and severance cost

     283,919        280,928   

Other noncurrent liabilities

     131,317        116,405   

Total liabilities

     1,326,294        1,319,860   

Commitments and contingent

liabilities

    

Equity:

    

Canon Inc. stockholders’ equity:

    

Common stock

     174,762        174,762   

[Authorized shares] (share)

     [3,000,000,000     [3,000,000,000

[Issued shares] (share)

     [1,333,763,464     [1,333,763,464

Additional paid-in capital

     401,386        401,563   

Legal reserve

     65,574        64,599   

Retained earnings

     3,328,695        3,320,392   

Accumulated other comprehensive income (loss)

     45,209        28,286   

Treasury stock, at cost

     (1,010,399     (1,011,418

[Treasury shares] (share)

     [241,687,704     [241,931,637

Total Canon Inc. stockholders’ equity

     3,005,227        2,978,184   

Noncontrolling interests

     216,555        162,574   

Total equity

     3,221,782        3,140,758   

Total liabilities and equity

     4,548,076        4,460,618   
 

 

11


Consolidated Statements of Income

     (Millions of yen

 

     
     

Six months ended
June 30, 2015

 

   

Six months ended
June 30, 2014

 

 
    

Net sales

     1,831,851        1,795,108   

Cost of sales

    

 

889,494

 

  

 

   

 

880,116

 

  

 

Gross profit

     942,357        914,992   

Operating expenses:

    

Selling, general and
administrative expenses

     608,516        570,099   

Research and development
expenses

    

 

162,932

 

  

 

   

 

151,705

 

  

 

      

 

771,448

 

  

 

   

 

721,804

 

  

 

Operating profit

     170,909        193,188   

Other income (deductions):

    

Interest and dividend income

     3,273        3,917   

Interest expense

     (361     (234

Other, net

    

 

(9,305

 

 

   

 

(705

 

 

      

 

(6,393

 

 

   

 

2,978

 

  

 

Income before income taxes

     164,516        196,166   

Income taxes

    

 

58,784

 

  

 

   

 

63,180

 

  

 

Consolidated net income

     105,732        132,986   

Less: Net income attributable to noncontrolling interests

 

    

 

3,607

 

  

 

   

 

4,528

 

  

 

Net income attributable to Canon Inc. 

 

    

 

102,125

 

  

 

   

 

128,458

 

  

 

 

Notes to Consolidated Balance Sheets     

<Notes to Consolidated Balance Sheets as of June 30, 2015>

    
1.  

Allowance for doubtful receivables:

     11,874 million yen     
2.   Accumulated depreciation:      2,564,260 million yen     
3.  

Accumulated other comprehensive income (loss) includes foreign currency translation adjustments, net unrealized gains and losses on securities, net gains and losses on derivative financial instruments and pension liability adjustments.

       
4.   Guarantee obligations for bank loans:      8,926 million yen     
5.  

The number of consolidated subsidiaries and affiliated companies accounted for by the equity method was 304 and 5 respectively.

     

<Note to Per Share Information as of June 30, 2015>

    
    Canon Inc. stockholders’ equity per share      2,751.85 yen     
Note to Consolidated Statements of Income     

<Note to Per Share Information for the six months ended June 30, 2015>

    
    Net income attributable to Canon Inc. stockholders per share     
    Basic      93.52 yen     
    Diluted      93.52 yen     

LOGO

 

 

12


Corporate Profile and Shares of the Company (As of June 30, 2015)

Corporate Profile

 

 

Company Name

 

  

 

Canon Inc.

 

 

Founded

  

 

August 10, 1937

 

Headquarters

 

  

 

30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501

 

 

Phone

 

  

 

(81) 3-3758-2111

 

 

Common Stock

 

  

 

174,761,797,475 yen

 

  Number of
  Employees

 

 

Consolidated                           194,998 persons

  (Increase of 3,109 persons from the end of the previous term)
  Non-Consolidated                     26,631 persons
  (Increase of 222 persons from the end of the previous term)

  Stock

  Exchange 

  Listings

 

 

First Section of the Tokyo Stock Exchange

  First Section of the Nagoya Stock Exchange
  The Fukuoka Stock Exchange
  The Sapporo Securities Exchange
 

The New York Stock Exchange

 

 

 

Shares of the Company

Number of Shares Issuable:

   3,000,000,000 shares

Issued Shares:

   1,333,763,464 shares

Number of Shareholders:

   260,486 persons
(Increase of 10,872 persons from the end of the previous term)

 

Shareholding Ratio by Category

 

LOGO

 

 

Major Shareholders (Ten shareholders)

 

     
     

Name of Shareholders

   Number of Shares Held    Shareholding Ratio
   (thousands of shares)

 

   (%)

 

 

The Master Trust Bank of Japan, Ltd. (Trust Account)

 

  

 

61,408

 

  

 

5.6

 

 

Japan Trustee Services Bank, Ltd. (Trust Account)

 

   43,878

 

   4.0

 

 

The Dai-ichi Life Insurance Company, Limited

 

   37,416

 

   3.4

 

 

Barclays Securities Japan Limited

 

   30,000

 

   2.7

 

 

Moxley and Co. LLC

 

   27,040

 

   2.5

 

 

Mizuho Bank, Ltd.

 

   22,558

 

   2.1

 

 

Nomura Securities Co., Ltd.

 

   17,911

 

   1.6

 

 

Sompo Japan Nipponkoa Insurance Inc.

 

   17,439

 

   1.6

 

 

State Street Bank West Client - Treaty 505234

 

   17,367

 

   1.6

 

 

OBAYASHI CORPORATION

 

 

   16,527

 

   1.5

 

 

Notes:

  1.  

Shareholding ratio is calculated by deducting the number of treasury shares (241,687 thousand shares) from total shares issued.

  2.  

With respect to The Dai-ichi Life Insurance Company, Limited, in addition to the above, there are 6,180 thousand shares of the Company’s stock included in trust property relating to retirement allowance trust.

  3.  

With respect to Mizuho Bank, Ltd., in addition to the above, there are 9,057 thousand shares of the Company’s stock included in trust property relating to retirement allowance trust.

 

13


Information for Shareholders    

 

Notes

Business term

 

 

From January 1 to December 31 of each year

 

 

Ordinary general meeting of shareholders

 

  March of each year

 

Record date for above

 

 

December 31 of each year

 

 

Record date for interim dividends

 

  June 30 of each year

 

Number of shares constituting one unit

 

  100 shares

 

 

Securities code

 

  7751

 

 

Manager of the register of shareholders / Account management institution for the special account (tokubetsu koza)

 

 

2-1, Yaesu 1-chome, Chuo-ku, Tokyo

Mizuho Trust & Banking Co., Ltd.

Business handling place

 

 

Stock Transfer Agency Department, Head Office Mizuho Trust & Banking Co., Ltd.

 

Method of public notice

 

 

Electronic means (http://canon.jp/) However, if the Company is unable to give an electronic public notice due to an accident or any other unavoidable reason, the notice shall be given in the Nikkei.

 

 

 

 

Share Handling Procedures

 

1.

Should you have any inquiries about the following procedures pertaining to shares of Canon Inc., please contact your securities company etc.

 

LOGO

 

2.

Should you have any inquiries about the above procedures in cases where your shares are managed in a special account (tokubetsu koza)(*), or about procedures for payment of accrued dividends or the issuance of documents such as statements of payment, Mizuho Trust & Banking Co., Ltd. handles these procedures, so please contact as shown below.

 

   

    Website    

  

Mizuho Trust & Banking Co., Ltd.

(procedures pertaining to shares)

http://www.mizuho-tb.co.jp/daikou/index.html

   

Phone

  

0120-288-324 (Toll free, available in Japan only)

Operating hours: 9:00 – 17:00

(Monday - Friday except national holidays)

   

Address

  

Stock Transfer Agency Department of Mizuho Trust &

Banking Co., Ltd.

8-4, Izumi 2-chome, Suginami-ku, Tokyo 168-8507

 

  *

A special account is an account for the management of shares that are not managed at a securities company etc. For the sale of shares that are managed in a special account, it is necessary to carry out procedures for the transfer of such shares to an account at a securities company etc. Should you have any inquiries about such procedures, please contact Mizuho Trust & Banking Co., Ltd.

 

The Company’s Investor Relations Website

http://www.canon.com/ir/

 

LOGO

 

LOGO

 

 

14


   

For those shareholders who receive dividends by way of “Receipt of Dividend”

 

   
   

The way to receive dividends is shown on the backside of “Receipt of Dividend.”

 

We recommend one of the following three methods as a safer and more expeditious way to receive dividends. For more information, please ask your securities company etc.

 

   

i)

 

The method of depositing the dividends of all the issues, including shares of Canon Inc., that are managed by a shareholder using securities company accounts into said securities company accounts.

(System of allocating dividends to securities company accounts in proportion to the number of shares held in respective accounts)

       

ii)

  

The method of transferring the dividends of all the issues, including shares of Canon Inc., held by a shareholder into the same bank deposit account. (System of receiving dividends in the account registered for receipt of dividends)

       

iii)

  

The method of transferring dividends into an account at a financial institution such as a bank (including Japan Post Bank).

(System of designating an account for each issue held)

   
   
   

* It is not possible to use method i) for shares that are managed in a special account.

* In the case of method ii), it is not possible to choose a Japan Post Bank account as the account into which the dividends are transferred.

 

   

 

   

To Shareholders Holding Shares Less Than One Unit

 

   
   
   

The trading unit of Canon Inc. shares (1 unit) is 100 shares and you can not purchase or sell the Canon Inc. shares less than one unit (1–99 shares; hereinafter “Less-than-one-unit Shares”) on securities markets. However, you may purchase or sell these shares by the methods below.

     
   
    LOGO      
   
   

* In the case that you are a shareholder of Less-than-one-unit Shares in an account of securities company etc., please carry out procedures at the securities company etc.

* In the case that you are a shareholder of Less-than-one-unit Shares in a special account (a shareholder who does not have an account in securities company etc.), please contact our manager of the register of shareholders (Mizuho Trust & Banking Co., Ltd.; 0120-288-324, toll free, available in Japan only).

 

       

 

LOGO