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CANON ELECTRONICS INC.
ANNUAL REPORT 2016(Unaudited)
CONSOLIDATED FINANCIAL HIGHLIGHTS\Millions of yen(except per share amounts)
2016
2015
\$Thousands of U.S. dollars(except per share amounts)
2016
2015
$

Net sales
Component
Electronic Information Appliance
Other

44,181
30,246
8,862

48,56431,932
8,876

380,877
260,745
76,398418,659
275,284
76,521

Total

83,29089,373

718,021770,464

Profit (loss) attributable to owners of parent

5,553

6,951

47,87559,929Profit (loss) attributable to owners of parent per common shareassuming no dilution
assuming full dilution

136.06-170.31
-

1.17-

1.47
-

Millions of yen

Total assets

103,171

101,780

Thousands of U.S. dollars
2016
2015
$
889,407877,418

Net assets

81,51578,539702,723

2016

2015

\\$

677,065

CONSOLIDATED STATEMENTS OF INCOME
Millions of yen
2016

2015

\Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Other income
Interest and dividend income
Gain on sales of investment securities
Other
Other expenses
Foreign
Foreign exchange
exchange losses
lossesLoss
Loss onon salessales andand retirement
retirement ofof non-current
non-current assets
assets
Loss
Loss onon valuation
valuation ofof investment
investment securities
securities
OfficeLoss ontransfer
valuation
expensesof golf club membership
Other
Other
Profit (loss) before income taxes
Income taxes
Profit (loss)
Net income
Profit (loss) attributable to non-controlling interests
Net
Profitincome(loss) attributable to owners of parent

Thousands of U.S. dollars

\2016
$

2015
$

83,29064,61018,67910,602
8,077

89,37368,033
21,34010,816
10,523

718,021556,987
161,034
91,39969,634

770,464
586,492
183,972
93,24990,723

91
47
36
175

80
0
106
188

792
405
316
1,514

697
8
924
1,630

197
1
64
48
311
7,941

25
10
56
7
100
10,612

1,701
11
554
419
2,686
68,462

223
92
485
62
863
91,491

2,380
5,561

3,655
6,957

7
5,553

5
6,951

20,51847,94367
47,87531,512
59,97849
59,929\Notes:U.S.Dollar amounts are translated from yen at the rate of \116=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2016.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions of yen

5,561

6,957

Thousands of U.S. dollars
2016
2015
$
47,94359,978

(60)
(40)
(112)
78
(135)
5,426

68
(374)
(828)
(1,134)
5,823

(519)
(350)
(971)
675
(1,167)
46,776587(3,225)(7,140)(9,778)50,2005,418
75,817
5

46,70867

50,15049

2016\Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Comprehensive income
Profit attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

2015\Notes:U.S.Dollar amounts are translated from yen at the rate of \116=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2016.

$

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CONSOLIDATED STATEMENTS OF CASH FLOW
Millions of yen

5,561

6,957

Thousands of U.S. dollars
2016
2015
$47,943
59,978Depreciation
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

3,356
5(5)
123(1,486)
(91)
1(47)
(983)
(87)
133
1,078

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

28,93149(48)
1,061(12,815)(792)
8(405)(8,481)
(752)
1,147
9,297

28,26049(5)341(12,560)
(697)
80
476
34,170
4,244(20,041)(3,367)

Net cash provided by (used in) operating activities

7,556

10,547

65,14390,929Purchase 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 receivable
Other, net(3,078)1(381)(1)
150(5,000)243(2,472)5(316)(2)0(15,000)(335)(26,536)8(3,288)(13)
1,300(43,103)
2,101(21,313)46(2,728)(25)
8(129,310)(2,892)

Net cash provided by (used in) investing activities(8,065)(18,121)(69,530)(156,216)

Cash dividends paid
Other, net(2,446)(0)(2,447)(3)(21,093)(6)(21,095)(32)

Net cash provided by (used in) financing activities(2,447)(2,450)(21,099)(21,127)

(192)

(263)

(1,655)(2,271)

Net increase (decrease) in cash and cash equivalents(3,148)(10,287)(27,141)(88,685)

Cash and cash equivalents at beginning of period

19,18929,476

165,425

254,110

Cash and cash equivalents at end of period

16,04019,189138,283

165,425

2016\Profit (loss)

2015
\$

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 change on cash and cash equivalents

Notes:U.S.Dollar amounts are translated from yen at the rate of \116=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2016.

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CONSOLIDATED BALANCE SHEETS
AssetsCurrent 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
OthersOtherAllowance for doubtful accounts

Millions of yen
December 31.
December 31,
2016
2015
\\Thousands of U.S. dollars
December 31.
December 31,
2016
2015
$

$

16,27022,394
299
975
2,233
76
20,000280
1,374(0)19,72921,488
314
1,068
2,039
90
15,000
314
1,912
(0)

140,265
193,059
2,578
8,406
19,254661
172,413
2,421
11,846(0)

170,080
185,245
2,710
9,207
17,580782
129,3102,715
16,488(2)

63,905

61,957550,906

534,117

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, netLandConstruction in progress

31,539(19,604)
11,93523,043(18,743)
4,299
18,694(15,428)
3,265
14,618290

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

271,889(169,000)
102,888
198,651(161,583)
37,067
161,156(133,006)
28,150126,020
2,508

269,698(160,142)
109,555
191,188(154,876)
36,312
162,615(137,973)
24,642
124,940
3,069

Total property, plant and equipment

34,40934,628296,634

298,520

Intangible assets

1,447

1,221

12,48010,533

Investments and other assets
Investment securities
Deferred tax assets
OtherAllowance for doubtful accounts

565
2,060
782(0)

763
2,408
800(0)

4,874
17,765
6,746
(0)

6,581
20,7596,905(0)

Total current assets

Total investments and other assets
Total assets

3,408\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
Other103,171

3,972\101,780

29,386$Millions of yen
December 31.
December 31,2016
2015\\889,407

34,246$877,418

Thousands of U.S. dollars
December 31.
December 31,2016
2015
$

$

12,105
106
1,295
629
377
27
188
1,543

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

104,358
922
11,169
5,426
3,256
235
1,623
13,302

103,575901
11,417
12,759
3,218
284
561
11,435

16,274

16,721

140,293

144,153

230
4,878
58
213

247
5,979
61
230

1,987
42,055
507
1,839

2,132
51,547533
1,985

Total Non-current liabilities

5,381

6,519

46,39056,199Total liabilities

21,65523,240186,683

200,352

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

4,969
9,595
71,229(2,579)

4,969
9,595
68,125(2,578)42,83782,718614,050(22,234)

42,83782,718587,286(22,228)

83,215

80,111

717,371690,614

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

203
(40)
719
(2,645)264832(2,723)

1,756
(350)
6,203
(22,804)

2,275
7,175
(23,479)

Total accumulated other comprehensive income(1,762)(1,627)(15,195)(14,028)

Total current liabilities

Non-current liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Deferred tax liabilities
Other

Total shareholders' equity

Non-controlling
Minority interestinterests
Total net assets
Total liabilities and net assets

\63

55

547

479

81,51578,539702,723

677,065

103,171

Notes:U.S.Dollar amounts are translated from yen at the rate of \116=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2016.

\101,780$

889,407$877,418

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CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY

Millions of yen
Accumulated other comprehensive income

Shareholders' equity

Capitalstock

Balance at December 31, 2015
¥Changes of items during period
Dividends of surplus
Profit (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, 2016
¥4,969 ¥CapitalsurplusRetainedearnings

Treasuryshares

Total
Shareholders'equity9,595 ¥ 68,125 ¥ (2,578) ¥(2,449)
5,553

4,969 ¥

80,111 ¥(0)
3,104
(0)
9,595 ¥ 71,229 ¥ (2,579) ¥CapitalsurplusRetainedearnings

Treasuryshares264- ¥832 ¥(2,723) ¥Noncontrollinginterests(1,627) ¥55 ¥-Total net
assets78,539(2,449)
5,553
(0)
0-

(60)

(40)

(112)

78

(135)

7(127)

3,103
83,215 ¥(60)
203 ¥(40)(40) ¥(112)
719 ¥

78
(2,645) ¥(135)(1,762) ¥763 ¥

2,976
81,515

Thousands of U.S. dollars
Accumulated other comprehensive income

Shareholders' equity

Capital
stock

Total
Foreign
Remeasureaccumulated
currency
ments ofothertranslation
definedcomprehensive
adjustment benefit plansincomeDeferred
gains orlosses onhedges(2,449)5,553(0)0(0)0(0)

Valuationdifference on
available-forsale
securities

Total
Shareholders'equityBalance at December 31, 2015
$ 42,837 $ 82,718 $587,286 $ (22,228) $Changes of items during period
Dividends of surplus(21,112)
Profit (loss)
47,875(6)Purchase of treasury shares(0)0
Disposal of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period(0)26,763(6)
Balance at December 31, 2016
$ 42,837 $ 82,718 $614,050 $ (22,234) $Valuationdifference on
available-forsale
securities

690,614 $

2,275

Total
Foreign
Remeasureaccumulated
currency
ments ofothertranslation
definedcomprehensive
adjustment benefit plansincomeDeferred
gains orlosses onhedges- $7,175 $

(23,479) $(21,112)
47,875(6)026,757717,371 $Notes:U.S.Dollar amounts are translated from yen at the rate of \116=U.S.1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of December 30,2016.

Noncontrollinginterests(14,028) $479 $-Total net
assets677,065(21,112)47,875(6)0(519)

(350)

(971)

675

(1,167)67(1,099)(519)
1,756 $

(350)
(350) $(971)
6,203 $

675
(22,804) $(1,167)(15,195) $

67
547 $

25,658702,723