Canon Electronics Inc.
Annual Report 2017(Unaudited)
Consolidated Financial Highlights
Millions of yen（Amounts less than one million yen are truncated）
FY2016FY2017(from January 1, 2016
(from January 1, 2017
to December 31, 2016)
to December 31, 2017)
Net sales
Component

44,18147,650Electronic Information Appliance

30,246

26,495

Other

8,862

9,623

Total

83,29083,769Profit attributable to owners of parent

5,553

7,739

FY2016(from January 1, 2016
to December 31, 2016)

FY2017(from January 1, 2017
to December 31, 2017)

Basic earnings per share

136.06 yen

189.61 yenDiluted earnings per share――

Millions of yen（Amounts less than one million yen are truncated）
As of December 31, 2016

As of December 31, 2017

Total assets

103,171108,221

Net assets

81,51587,985―1―

Consolidated Balance Sheets
Millions of yen（Amounts less than one million yen are truncated）
As of December 31, 2016
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
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
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
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―2―

As of December 31, 201716,27022,394
299
975
2,233
76
20,000280
1,374△063,905

26,434
23,393
227
969
3,028
86
15,000297
1,261
70,69831,539△19,604
11,93523,043△18,743
4,299
18,694△15,428
3,265
14,618290
34,4091,447

31,714△20,377
11,337
22,951△19,183
3,767
18,613△15,649
2,964
14,62071
32,761
1,493

565
2,060
782
△03,408
39,266103,171

1,041
1,406
820
△03,267
37,522
108,221Consolidated Balance Sheets
Millions of yen（Amounts less than one million yen are truncated）
As of December 31, 2016
Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating
Lease obligations
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other
Total current liabilities
Non-current liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equityCapital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
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
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―3―

As of December 31, 201712,105
106
1,295
629
377
27
188
1,543
16,274

10,947
2,006
102
1,330
1,260
352
32
11
1,377
17,420

230
4,878
58
2135,381
21,655

221
2,421
19152
2,815
20,235

4,969
9,595
71,229△2,57983,215

4,969
9,595
76,519△2,58088,503203△40719△2,645△1,762
63
81,515
103,171348
524△1,520△648
12987,985108,221

Consolidated Statements of Income
Millions of yen（Amounts less than one million yen are truncated）
FY2016(from January 1, 2016
to December 31, 2016)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of golf club membership
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―4―FY2017(from January 1, 2017
to December 31, 2017)83,29064,61018,67910,602
8,077

83,76962,732
21,036
11,430
9,605

91
36
128

74
170
46
291

197
48
246
7,959

10
10
9,886

0
47
47

20
7
28

1
64
65
7,941
2,087
292
2,380
5,561
7
5,553

15
15
9,899
2,073
80
2,154
7,745
6
7,739

Consolidated Statements of Comprehensive Income
Millions of yen（Amounts less than one million yen are truncated）
FY2016(from January 1, 2016
to December 31, 2016)
ProfitFY2017(from January 1, 2017
to December 31, 2017)

5,561

7,745△60144△112△195

Other comprehensive income
Valuation difference on available-for-sale securities△40

Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

4078

1,125

△135

1,114

5,426

8,860

5,418

8,853

76

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―5―Consolidated Statements of Shareholders' Equity
FY2016 (from January 1, 2016 to December 31, 2016)
Millions of yen（Amounts less than one million yen are truncated）
Shareholders' Equity
Capitalstock
Balance at beginning of current period

Capitalsurplus

4,969

Retainedearnings

9,595

68,125

Total
shareholders'equity

Treasuryshares△2,57880,111

Changes of items during period
Dividends of surplus
Profit attributable to owners of parent△2,449△2,449

5,553

5,553

Purchase of treasury shares△0

Disposal of treasury shares△0△000―Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period―△03,104△03,103

4,969

9,595

71,229△2,57983,215

Accumulated other comprehensive income

Valuation
Deferreddifference on
gains
available-for- or losses onsale securities
hedgesBalance at beginning of current period

264-

Foreigncurrencytranslation
adjustment

832

Total
Remeasureaccumulated
ments ofotherdefinedcomprehensive
benefit plansincome△2,723△1,627

Non-controllinginterests

Total
net assets

55

78,539Changes of items during period
Dividends of surplus―△2,449Profit attributable to owners of parent―

5,553

Purchase of treasury shares―△0

Disposal of treasury shares―

0Net changes of items other than shareholders' equity△60△40△11278△1357△127

Total changes of items during period△60△40△11278△13572,976

203△40719△2,645△1,7626381,515

Balance at end of current period―6―Consolidated Statements of Shareholders' Equity
FY2017 (from January 1, 2017 to December 31, 2017)
Millions of yen（Amounts less than one million yen are truncated）
Shareholders' Equity
Capitalstock
Balance at beginning of current periodCapitalsurplus

4,969

Retainedearnings

9,595

71,229Total
shareholders'equity

Treasuryshares△2,57983,215

Changes of items during period
Dividends of surplus
Profit attributable to owners of parent△2,448△2,448

7,739

7,739

Purchase of treasury shares
Disposal of treasury shares

0△1

△100―

Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period―

05,290△15,288

4,969

9,595

76,519△2,58088,503

Accumulated other comprehensive income

Balance at beginning of current period

Valuation
Deferreddifference ongains
available-for- or losses onsale securities
hedgesForeigncurrencytranslation
adjustment△40719203

Total
Remeasureaccumulated
ments ofotherdefinedcomprehensive
benefit plansincome△2,645△1,762

Non-controllinginterests

Total
net assets

63

81,515

Changes of items during period
Dividends of surplus―△2,448

Profit attributable to owners of parent

―

7,739

Purchase of treasury shares―△1

Disposal of treasury shares―

0Net changes of items other than shareholders' equity14440

△195

1,125

1,114

66

1,180

Total changes of items during period

14440

△195

1,125

1,11466

6,469

348

―

524

△1,520△648

12987,985

Balance at end of current period―7―Consolidated Statements of Cash Flows
Millions of yen（Amounts less than one million yen are truncated）
FY2016(from January 1, 2016
to December 31, 2016)
Cash flows from operating activities
Profit before income taxes
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
SubtotalInterest and dividend income received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase 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
Net cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period―8―FY2017(from January 1, 2017
to December 31, 2017)

7,941
3,356
5△5123△1,486△91
1△47△983△87133
1,618
10,47692△3,012
7,556

9,899
3,317
△235△176△2,188△74△5△7△1,039
△798
876
1,359
11,14376△1,5409,679△3,078
1△381△1150△5,000243△8,065△1,583
86
△212
△266
7
5,000
△136
2,895

△2,446△0△2,447△192△3,14819,18916,040△2,44958△2,391△90
10,093
16,04026,134