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CANON ELECTRONICS INC.
ANNUAL REPORT 2015(Unaudited)
CONSOLIDATED FINANCIAL HIGHLIGHTS\Millions of yen(except per share amounts)
2015
2014
\$Thousands of U.S. dollars(except per share amounts)
2015
2014
$

Net sales
Component
Electronic Information Appliance
Other

48,56431,932
8,876

51,53734,0339,911

401,359
263,908
73,359425,929
281,269
81,913

Total

89,373

95,482738,627

789,112Net Income

6,951

7,377

57,45260,971

Net income per common shareassuming no dilution
assuming full dilution

170.31-178.77-

1.41-1.48-

Millions of yen

Total assets

101,806

101,542

Thousands of U.S. dollars
2015
2014
$841,374
839,195

Net assets

78,53975,996

649,087

2015

2014

\\$628,073

CONSOLIDATED STATEMENTS OF INCOME
Millions of yen
2015

2014

\Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Other income
Foreign exchange gains
Interest and dividend income
Gain on reversal of subscription rights to shares
Other
Other expenses
Foreign
Foreign exchange
exchange losses
losses
Loss
Loss onon sales
sales andand retirement
retirement ofof non-current
non-current assets
assets
Loss
Loss onon valuation
valuation ofof investment
investment securities
securities
Other
Other
Income (loss) before income taxes
Income taxes
Minority interests in income
Net
Profitincome(loss)\\$

Thousands of U.S. dollars
2015
2014
$
738,627
789,112562,257
624,157
176,370
164,954
89,39592,24986,97472,70489,37368,033
21,34010,816
10,523

95,48275,523
19,959
11,162
8,797

80
107
188

1,585
51
225
127
1,989

668
894
1,563

13,102425
1,8641,056
16,449

25
1056
7
100
10,6121447
36
98
10,688

214
88
465
59
827
87,710

120
394
305
819
88,333

3,655
5
6,951

3,310
0
7,377

30,21047
57,452

27,357560,971

Notes:U.S.Dollar amounts are translated from yen at the rate of \121=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2015.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions of yen

6,957

7,378

Thousands of U.S. dollars
2015
2014
$
57,50060,97668(374)(828)(1,134)
5,823

(25)
803
7788,156

563(3,092)(6,845)(9,374)
48,125

(209)
6,640
6,431
67,408

5,817
5

8,155
0

48,07847

67,40252015\Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Comprehensive income
Profit attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

2014\Notes:U.S.Dollar amounts are translated from yen at the rate of \121=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2015.

$

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CONSOLIDATED STATEMENTS OF CASH FLOW
Millions of yen

6,957

7,378

Thousands of U.S. dollars
2015
2014
$
57,50060,976

Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for loss on order received
Increase (decrease) in net defined benefit liability
Interest and dividend income
Loss (gain) on sales and retirement of property, plant and equipment
Loss (gain) on sales and valuation of investment securities
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other, net

3,278
5(0)
39(1,457)
(80)
955
3,963
492
(2,324)
(390)

3,995
(2)
(6)
(8)
(309)
(51)
14
47
(1,701)447
1,123(767)27,09247(4)326(12,041)
(668)
77
457
32,758
4,069(19,213)(3,228)33,019
(19)
(52)
(66)
(2,558)
(425)
118
394
(14,062)
3,695
9,281
(6,338)Net cash provided by (used in) operating activities

10,547

10,15987,172

83,962

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of loans receivable
Other, net(2,472)5(316)(2)(15,000)(334)(3,811)1(222)(86)(98)(20,432)44(2,615)(24)(123,966)(2,764)(31,500)
16(1,835)
(714)
(816)

Net cash provided by (used in) investing activities(18,121)(4,217)(149,760)(34,851)(2,447)(3)(2,486)(1,499)(3)(20,223)(31)(20,550)(12,395)(25)(2,450)(3,989)(20,254)(32,971)

(263)

301

(2,177)

2,494

2015

2014

\Profit (loss)\$Adjustment to reconcile net income to net cash
provided by operating activities

Cash flows from investing activities

Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(10,287)2,254(85,020)

18,634

Cash and cash equivalents at beginning of period

29,47627,326

243,609

225,835-(104)-(860)

19,18929,476

158,589

243,609

Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period

Notes:U.S.Dollar amounts are translated from yen at the rate of \121=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2015.

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CONSOLIDATED BALANCE SHEETSAssets

Current assets
Cash and deposits
Notes and accounts receivable - trade
Lease investment assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Deferred tax assets
OthersOther
Allowance for doubtful accounts

Millions of yen
December 31.
December 31,
2015
2014
\Total current assets\Thousands of U.S. dollars
December 31.
December 31,
2015
2014
$

$

19,72921,488
314
1,068
2,039
90
15,000
314
1,912
(0)

29,71625,592
270
1,258
2,339
92
398
1,500(0)163,052
177,590
2,598
8,826
16,854749
123,966
2,602
15,807(2)

245,593
211,505
2,238
10,401
19,331767
3,289
12,403(7)

61,957

61,168512,046505,521

Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress

31,285(18,576)
12,70822,177(17,965)
4,212
18,863(16,004)
2,858
14,493356

31,359(17,543)
13,815
20,370(17,328)
3,042
19,911(17,043)
2,868
14,486
1,334

258,554(153,525)
105,028
183,288(148,476)
34,811
155,895(132,271)
23,624
119,777
2,942

259,170(144,989)
114,181
168,352(143,207)
25,145
164,554(140,851)
23,702
119,720
11,025

Total property, plant and equipment

34,62835,546286,185

293,775

Intangible assets

1,221

1,035

10,0988,556

Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts

763
2,433
800
(0)

734
2,260
796
(0)

6,309
20,114
6,619
(0)

6,073
18,685
6,582
(0)

3,998

3,792

33,04331,341

Total investments and other assets
Total assets\Liabilities and Net assets

Current liabilities
Notes and accounts payable - trade
Lease obligations
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other101,806\101,542$

Millions of yen
December 31.
December 31,2015
2014\Total current liabilities

Non-current liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Deferred tax liabilities
Other\841,374$

839,195

Thousands of U.S. dollars
December 31.
December 31,
2015
2014
$

$

12,014
104
1,324
1,480
373
33
65
1,326

14,504
74
1,434
2,335
367
33
25
1,632

99,295864
10,945
12,232
3,085
272
538
10,963

119,870
617
11,856
19,303
3,037
277
211
13,494

16,721

20,409138,197

168,669

247
5,979
87
230

247
4,659
27
202

2,044
49,417
724
1,903

2,044
38,505230
1,671

Total Non-current liabilities

6,544

5,136

54,08942,452

Total liabilities

23,26625,545

192,286

211,122

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

4,969
9,595
68,125(2,578)

4,969
9,595
64,450(2,574)41,06779,300563,018(21,310)41,06779,300532,645(21,279)

80,111

76,439662,076

631,734

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Total shareholders' equity

264832(2,723)

195
1,206(1,895)

2,181
6,879
(22,509)

1,618
9,971
(15,663)

Total accumulated other comprehensive income(1,627)(492)(13,448)(4,074)

Subscription rights to shares
Minority
Minorityinterests
interest
Total net assets
Total liabilities and net assets

----

55

49

459

412

78,539\101,806

Notes:U.S.Dollar amounts are translated from yen at the rate of \121=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2015.

75,996\101,542

649,087$

841,374

628,073$

839,195

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CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

Millions of yen
Accumulated other comprehensive income

Shareholders' equity

Capitalstock

Balance at December 31, 2014¥
Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Dividends of surplus
Net income (loss)
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at December 31, 2015
¥4,969 ¥CapitalsurplusRetainedearnings

9,595 ¥ 64,450

Treasuryshares

Total
Subscription
ForeignRemeasureValuation
Total
accumulated
rights tocurrency
ments ofdifference on
Shareholders'otheravailable-for- translation
sharesdefinedequitysale securities adjustment benefit plans comprehensive
income¥ (2,574) ¥76,439 ¥(827)
4,969

9,595

63,622(2,574)75,612(2,449)
6,951

4,502
9,595 ¥ 68,125(3)¥ (2,578) ¥CapitalsurplusRetainedearnings(1,895) ¥(492)

TreasurysharesTotal net
assets- ¥49 ¥75,996-49

75,169195

1,206(1,895)

(492)

(827)

--

68

(374)

(828)

(1,134)

4,498
80,111 ¥68
264 ¥(374)
832 ¥

(828)
(2,723) ¥(1,134)(1,627)(2,449)
6,951
(3)
-- ¥

5(1,128)

555 ¥

3,370
78,539Thousands of U.S. dollars
Accumulated other comprehensive income

Shareholders' equity

Capitalstock

1,206 ¥

(2,449)
6,951
(3)
-(3)

4,969 ¥

195 ¥

(827)

Minority
interests

Total
Subscription
Foreign
Remeasure
Valuation
Total
accumulated
rights tocurrency
ments ofdifference on
Shareholders'otheravailable-for- translation
sharesdefinedequitysale securities adjustment benefit plans comprehensive
incomeBalance at December 31, 2014
$ 41,067 $ 79,300 $532,645 $(21,279) $Cumulative effects of changes in(6,839)
accounting policies
Restated balance
41,06779,300 525,805(21,279)
Changes of items during period
Dividends of surplus(20,240)
Net income (loss)
57,452(31)
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
37,212(31)
Balance at December 31, 2015
$ 41,067 $ 79,300 $563,018 $(21,310) $631,734 $

1,618 $

9,971 $

(15,663) $(6,839)624,894

1,618

9,971

(15,663)-Notes:U.S.Dollar amounts are translated from yen at the rate of \121=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2015.

(4,074)412 $

628,073-412

621,233(6,839)563(3,092)(6,845)(9,374)563
2,181 $

(3,092)
6,879 $

(6,845)(22,509) $(9,374)(13,448)

Total netassets- $-(20,240)
57,452(31)-

37,181
662,076 $(4,074)

Minority
interests(20,240)
57,452
(31)
-- $

47

(9,326)47459 $27,854
649,087