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CANON ELECTRONICS INC.
ANNUAL REPORT 2014(Unaudited)
CONSOLIDATED FINANCIAL HIGHLIGHTS\Millions of yen(except per share amounts)
2014
2013
\$Thousands of U.S. dollars(except per share amounts)
2014
2013
$

Net sales
Component
Electronic Information Appliance
Other

51,53734,033
9,911

54,36233,014
10,638425,929
281,269
81,913449,280
272,849
87,921

Total

95,482

98,016789,112810,051

Net Income

7,377

7,249

60,971

59,910Net income per common shareassuming no dilution
assuming full dilution

178.77-174.26-

1.48-1.44-

Millions of yen

Total assets

101,542

96,013Thousands of U.S. dollars
2014
2013
$
839,195
793,497

Net assets

75,99673,953

628,073

2014

2013

\\$611,183

CONSOLIDATED STATEMENTS OF INCOME
Millions of yen

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

98,016
77,046
20,969
11,098
9,870

Thousands of U.S. dollars
2014
2013
$
789,112810,051
624,157
636,749
164,954
173,30292,24991,72472,704
81,577

1,585
225
179
1,990

1,574
913
9
14
239
2,750

13,102
1,864
1,482
16,44913,0107,550
741221,975
22,7321447
36
99
10,688

734
4
132
772
11,848

120
394
305
819
88,333

6,069
36
15265
6,387
97,922

2014\Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Other income
Foreign exchange gains
Gain on sales of investment securities
Gain on reversal of subscription rights to shares
Gain on bargain purchase
Other
Other expenses
Provision of allowance for doubtful receivables
Loss on sales and retirement of non-current assets
Loss on valuation of investment securities
Other
Income before income taxes and minority interests
Income taxes
Minority interests
Net income\2013\3,31007,377

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 30,2014.

\$

4,590
87,249$27,357560,971$

37,93873
59,910

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CONSOLIDATED STATEMENTS OF CASH FLOW
Millions of yen

7,377

7,249

Thousands of U.S. dollars
2014
2013
$
60,971
59,910Depreciation
Amortization of goodwill
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 provision for retirement benefits
Interest and dividends income
Loss (gain) on sales and retirement of property, plant and equipment
Loss (gain) on sales and valuation of investments in securities
Decrease (increase) in notes and accounts receivable
Decrease （increase） in inventories
Increase (decrease) in notes and accounts payable
Other, net

3,995
(2)
(6)
(8)
(309)
(51)
14
47
(1,701)447
1,123(766)

4,412
185
9(10)
(12)(198)(48)
3(911)(6,807)429(1,550)1,696

33,019
(19)
(52)
(66)
(2,558)
(425)
120
394
(14,062)
3,695
9,281
(6,333)36,467
1,530
76
(86)
(100)
(1,644)(396)
31(7,534)(56,256)
3,550(12,817)
14,019Net cash provided by operating activities

10,1594,446

83,962

36,747Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other,net(3,811)1(222)(86)(98)(4,398)12(129)
(76)
1,854
(200)
0(163)(31,500)
16(1,835)
(714)
(816)

(36,352)
106(1,067)(632)
15,329(1,652)0(1,354)

Net cash used in investing activities(4,217)(3,100)(34,851)(25,623)

Cash dividends paid
Purchase of treasury shares
Other,net(2,486)(1,499)(3)(2,491)(1)(20,550)(12,395)(25)(20,589)(13)

Net cash used in financing activities(3,989)(2,492)(32,971)(20,603)

301

(16)

2,494

(137)

Net change in cash and cash equivalents

2,254(1,163)

18,634(9,616)

Cash and cash equivalents at beginning of period

27,32628,489225,835

235,451(104)-(860)-

29,47627,326

243,609

225,835

2014\Net income

2013
\$

Adjustment to reconcile net income to net cash
provided by operating activities

Cash flows from investing activities

Cash flows from financing activities

Effect of exchange rate changes on cash and cash equivalents

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 30,2014.

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CONSOLIDATED BALANCE SHEETS
AssetsMillions of yen
2014

Current assets
Cash and cash equivalents
Notes and accounts receivable
Lease receivables and investment assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
OthersLess allowance for doubtful receivables

Thousands of U.S. dollars
201420132013\\$$

29,71625,592
270
1,258
2,339
92
398
1,500(0)27,42623,883
207
1,166
2,887
98
447
2,068(739)245,593
211,505
2,238
10,401
19,331767
3,289
12,403(7)

226,662
197,386
1,715
9,638
23,867810
3,695
17,098(6,110)61,16857,446505,521474,764

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

30,429(16,181)
14,24818,931(16,474)
2,457
20,414(16,799)
3,615
13,784
694

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

251,483(133,729)
117,754
156,461(136,153)
20,307
168,718(138,834)
29,883113,919
5,742

35,54634,800293,775

287,607

Intangible assets
Other intangible assets
Total intangible assets

1,035
1,035

891
891

8,556
8,556

7,363
7,363

Investment and other assets
Investment securities
Deferred tax assets
OthersLess allowance for doubtful receivables

734
2,260
796
(0)

735
1,257
882
(0)

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

6,081
10,3907,291(1)

Total investments and other assets

3,792

2,875

31,341

23,761

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

Total assets\\101,542

Liabilities and Net assets$Millions of yen
2014

Current liabilities
Notes and accounts payable
Lease obligations
Accrued expenses
Income taxes payable
Notes payable-facilities
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
OthersTotal current liabilities

96,013Long-term liabilities
Provision for retirement benefits
Net defined benefit liability
Provision for directors' retirement benefits
Deferred tax liabilities
Others$793,497

Thousands of U.S. dollars
2014
2013

2013

\839,195\$$

14,504
74
1,434
2,335
367
33
25
1,632
20,40913,329
82
1,476
2,649
54
366
40
33
1,582
19,614

119,870
617
11,856
19,303
3,037
277
211
13,494
168,669

110,158
679
12,204
21,896
446
3,029
330
277
13,081
162,104

4,659
247
27
202

2,056
252
10
125

38,505
2,044
230
1,671

16,999
2,085
89
1,034

Total long-term liabilities

5,136

2,445

42,452

20,208

Total liabilities

25,54522,059211,122

182,313

Net assets
Stockholders' equity
Capital stock
Additional paid-in capital
Retained earnings
Treasury stock
Total shareholders' equity

4,969
9,595
64,450(2,574)76,4394,969
9,595
59,561(1,071)73,05441,06779,300532,645(21,279)
631,734

41,06779,300492,242(8,857)603,752

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Adjustment of exchange conversion
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

195
1,206
(1,895)
(492)

221
403
624

1,618
9,971
(15,663)(4,074)

1,827
3,330
5,158

-

225

-

1,864

49

49

412

407

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

75,996\101,542

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 30,2014.

73,953\96,013628,073$

839,195

611,183$

793,497

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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, 2013 ¥Cash dividends
Net income
Purchases of treasury stock
Disposition of treasury stock
Other, net
Balance at December 31, 2014 ¥CapitalsurplusRetainedearnings

Total
Subscription
Total
accumulated
Valuation difference Foreign currency
rightsTreasury
Remeasurements
Shareholders' on available-for-saletranslation
otherto sharesstockof defined benefit
securities
equityadjustment
comprehensive
plansincome4,969 ¥

9,595 ¥ 59,561 ¥ (1,071) ¥(2,488)
7,377
0(1,503)0

4,969 ¥

9,595 ¥ 64,450 ¥ (2,574) ¥73,054 ¥(2,488)7,377(1,503)076,439 ¥CapitalsurplusRetainedearnings

403

(25)
195 ¥

803
1,206 ¥¥

(1,895)(1,895) ¥624 ¥(1,117)(492)

225 ¥(225)- ¥TotalSubscription
Total
accumulated
Valuation difference Foreign currency
rightsTreasury
Remeasurements
Shareholders' on available-for-saletranslationotherto shares
stockofdefined
benefitsecurities
equityadjustment
comprehensive
plansincomeBalance at December 31, 2013 $ 41,067 $ 79,300 $492,242 $ (8,857) $Cash dividends(20,568)
Net income
60,971
Purchases of treasury stock0(12,423)
Disposition of treasury stock2
Other, net
Balance at December 31, 2014 $ 41,067 $ 79,300 $532,645 $ (21,279) $49 ¥049 ¥Total net
assets73,953(2,488)
7,377(1,503)0(1,342)
75,996

Thousands of U.S. dollars
Accumulated other comprehensive income

Shareholders' equity

Capitalstock221 ¥Minority
interests

603,752 $(20,568)
60,971(12,423)
2631,734 $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 30,2014.

1,827 $

3,330

(209)
1,618 $

6,640
9,971 $$

(15,663)(15,663) $5,157 $
(9,232)(4,074)

1,864 $
(1,864)- $Minority
interests

407 $4412 $

Total net
assets611,180(20,568)
60,971(12,423)2(11,092)
628,073