# EDGAR Filing Document

**Accession Number:** 0000016988
**File Stem:** 0001193125-23-018207
**Filing Date:** 2023-1
**Character Count:** 66975
**Document Hash:** fcd1f4daa33719723e91da0331a5f922
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-018207.hdr.sgml**: 20230130

**ACCESSION NUMBER**: 0001193125-23-018207

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20230130

**FILED AS OF DATE**: 20230130

**DATE AS OF CHANGE**: 20230130

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CANON INC
- **CENTRAL INDEX KEY:** 0000016988
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHOTOGRAPHIC EQUIPMENT & SUPPLIES [3861]
- **IRS NUMBER:** 954348646
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15122
- **FILM NUMBER:** 23565116

**BUSINESS ADDRESS:**
- **STREET 1:** 30 2 SHIMOMARUKO 3 CHOME
- **STREET 2:** OHTA-KU
- **CITY:** TOKYO JAPAN
- **STATE:** M0
- **ZIP:** 00000
- **BUSINESS PHONE:** 81-3-3758-2111

**MAIL ADDRESS:**
- **STREET 1:** 30 2 SHIMOMARUKO 3 CHOME
- **STREET 2:** OHTA-KU
- **CITY:** TOKYO JAPAN
- **STATE:** M0
- **ZIP:** 00000

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CANON CAMERA CO
- **DATE OF NAME CHANGE:** 19690411

**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** 

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| | | | |
|:---|:---|:---|:---|
| For the month of …. | **January** | ……………………………………………… , | **2023** |

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| |
|:---|
| **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) |

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[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

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| | | |
|:---|:---|:---|
| Form 20-F | **X** | Form 40-F |

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[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.

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| | | |
|:---|:---|:---|
| Yes | No | **X** |

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[If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-....................

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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.

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| |
|:---|
| **CANON INC.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant) |

---

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| | | |
|:---|:---|:---|
|  Date…. | **January 30, 2023** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By....../s/.......... Sachiho Tanino............. |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Signature)\* |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sachiho Tanino<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Manager<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Accounting Div.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canon Inc. |

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

The following materials are included.

1. RESULTS FOR THE FOURTH QUARTER AND THE FISCAL YEAR ENDED DECEMBER 31, 2022

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![LOGO](g448494g31t34.jpg)

**<u>CONSOLIDATED RESULTS FOR THE FOURTH QUARTER AND</u>**

**<u>THE FISCAL YEAR ENDED DECEMBER 31, 2022</u>**

January 30, 2023

**CONSOLIDATED RESULTS** 

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | (Millions of yen, thousands of U.S. dollars, except per share amounts) | (Millions of yen, thousands of U.S. dollars, except per share amounts) | (Millions of yen, thousands of U.S. dollars, except per share amounts) | (Millions of yen, thousands of U.S. dollars, except per share amounts) | (Millions of yen, thousands of U.S. dollars, except per share amounts) |
|  | Actual | Actual | Actual | Actual | Projected | Projected |
|  | **Year ended<br>December 31,<br>2022** | Year ended<br>December 31,<br>2021 | Change(%) | **Year ended<br>December 31,<br>2022** | Year ending<br>December 31,<br>2023 | Change(%) |
|  **Net sales** | ¥**4031414** | ¥3513357 | + 14.7 | $**30311383** | ¥4287000 | + 6.3 |
|  **Operating profit** | **353399** | 281918 | + 25.4 | **2657135** | 360000 | + 1.9 |
|  **Income before income taxes** | **352440** | 302706 | + 16.4 | **2649925** | 390000 | + 10.7 |
|  **Net income attributable to Canon Inc.** | ¥ **243961** | ¥214718 | + 13.6 | $**1834293** | ¥270000 | + 10.7 |
|  **Net income attributable to Canon Inc. shareholders per share:** | **Net income attributable to Canon Inc. shareholders per share:** | **Net income attributable to Canon Inc. shareholders per share:** | **Net income attributable to Canon Inc. shareholders per share:** | **Net income attributable to Canon Inc. shareholders per share:** | **Net income attributable to Canon Inc. shareholders per share:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **- Basic** | ¥ **236.71** | ¥205.35 | + 15.3 | $**1.78** | ¥265.91 | + 12.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **- Diluted** | **236.63** | 205.29 | + 15.3 | **1.78** | 265.82 | + 12.3 |
|  | Actual | Actual | Actual | Actual |  |  |
|  | **As of**<br>**December 31,<br>2022** | As of<br>December 31,<br>2021 | Change(%) | **As of**<br>**December 31,<br>2022** |  |  |
|  **Total assets** | ¥**5095530** | ¥4750888 | + 7.3 | $**38312256** |  |  |
|  **Canon Inc. shareholders' equity** | ¥**3113105** | ¥2873773 | + 8.3 | $**23406805** |  |  |

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| | |
|:---|:---|
|  Notes: | 1. Canon's consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles. |
|  | 2. U.S. dollar amounts are translated from yen at the rate of JPY133=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2022, solely for the convenience of the reader. |

---

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| | |
|:---|:---|
| Canon Inc. | 30-2, Shimomaruko 3-chome, Ohta-ku, |
| Headquarter office | Tokyo 146-8501, Japan |
|  | Phone: +81-3-3758-2111 |

---

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**I. Operating Results and Financial Conditions** 

**2022 in Review** 

Looking back at 2022, while the global economy resumed its economic activities in earnest, the pace of economic recovery slowed due to global inflation and tight monetary policies in order to control inflation in each country. In the United States, although affected by inflation and tightening monetary policy, the economic recovery continued due to robust increases in personal consumption and expansion of exports. In Europe, the economy slowed down due to surge in energy prices resulting from the Ukraine crisis and continuous price hikes caused by inflation. In China, the recovery of personal consumption declined and capital investment slowed due to restrictions implemented under its Zero-COVID strategy. In other emerging countries, the economy recovered moderately, mainly in India and Southeast Asia. In Japan, affected by surge in price of energy and inflation caused by depreciation of the yen, the economy continued to recover moderately, mainly in terms of personal consumption.

Amid the unstable economic environment, in the markets in which Canon operates, despite a shortage of semiconductor chips and supply chain disruptions, demand improved moderately. Looking at performance by products, demand for office multifunction devices (MFDs) remained firm due to a recovery of in-office work. Meanwhile demand for laser printers and inkjet printers slowed due to decreased demand from customers working from home. For cameras, demand remained solid, mainly for mirrorless cameras and lenses for professionals and enthusiasts. For medical equipment, demand in Japan declined this year due to a drop-off following the conclusion of government spending in 2021, although investments in the medical field recovered slowly, mainly for diagnostic imaging unit products outside Japan. For semiconductor lithography equipment, while the memory devices market declined, overall demand remained firm due to strong demand for power devices and sensors. For FPD (Flat Panel Display) lithography equipment, demand tended to decline due to decreased demand from customers working from home amid the COVID-19 pandemic, and demand for laptop computers decreased in response to the current economic slowdown.

The average value of the yen for the year was ¥131.66 against the U.S. dollar, a year-on-year depreciation of approximately ¥22, and ¥138.42 against the euro, a year-on-year depreciation of approximately ¥8.

In 2022, Canon ensured adequate supplies of products through sustained efforts such as switching to alternative components and seeking new vendors, and taking swift action to secure transportation capacity while utilizing alternative transportation routes to deal with a shortage of components and the logistics disruption. Net sales for the year increased by 14.7% year-on-year to ¥4,031.4 billion due to adjustment of product prices and depreciation of the yen. Sales of new business exceeded ¥1,000 billion, and net sales exceeded ¥4,000 billion for the first time in five years since 2017 as a result of the business portfolio transformation. Gross profit as a percentage of net sales decreased by 1.0 points to 45.3% due to the increase in the ratio of hardware caused by stabilization of production supply including printers, in addition to the increased costs of parts and logistics. However, gross profit increased by 12.3% year-on-year to ¥1,827.8 billion, mainly due to price adjustment of products and the depreciation of the yen. Although operating expenses increased by 9.5% year-on-year to ¥1,474.4 billion as a result of increased operating expenses denominated in foreign currencies due to the depreciation of the yen, as well as an increase in selling expenses accompanying a growth in sales, the operating expense to sales ratio decreased by 1.8 points to 36.5% due to continued efficiency-focused cost control and improvements to management structure. As a result, operating profit increased by 25.4% year-on-year to ¥353.4 billion. Other income (deductions) decreased by ¥21.8 billion year-on-year to a loss of ¥1.0 billion, mainly due to deterioration of valuation gains and losses on securities and currency exchange losses from liabilities, incurred by group finance, denominated in foreign currencies, caused by the depreciation of the yen. As a result, income before income taxes increased by 16.4% year-on-year to ¥352.4 billion and net income attributable to Canon Inc. increased by 13.6% year-on-year to ¥244.0 billion.

Basic net income attributable to Canon Inc. shareholders per share was ¥236.71 for the year, a year-on-year increase of ¥31.36.

------

**Results by Segment** 

Looking at Canon's full year performance by business unit, in the Printing Business Unit, unit sales increased compared with the previous year due to the recovery of office MFDs production, thanks to supplies of semiconductor chips improving in the second half of the year. Sales of services and consumables increased moderately compared with the previous year due to a recovery of increase of in-office work. As for laser printers and inkjet printers, unit sales increased significantly compared with the previous year due to the recovery from stagnating production activities resulting from COVID-19 infections. However, consumables decreased compared with the previous year due to decreased demand from customers working from home. For equipment in the production printing market, sales increased compared with the previous year due to strong sales of the varioPRINT iX series of high-speed cut-sheet color inkjet presses, while revenue from services also increased. These factors resulted in total sales for the business unit of ¥2,261.9 billion, a year-on-year increase of 16.7%, while income before income taxes decreased by 3.1% year-on-year to ¥225.8 billion, due to the increase in costs of parts and logistics, despite price adjustment of products.

As for the Imaging Business Unit, unit sales of interchangeable-lens digital cameras were above those of the same period of the previous year due to continued robust demand for full-frame mirrorless cameras including the EOS R5 and EOS R6 as well as favorable reviews of the new EOS R7 and EOS R10 APS-C-size mirror-less cameras, despite stagnant production activities caused by a shortage of components. Unit sales of lenses increased owing to strong sales of RF-series interchangeable-lenses that expanded the product lineup. As for network cameras, sales increased significantly, mainly as a result of strengthening sales activities in response to diversifying market needs in addition to the recovery of product supply. As for professional video production equipment, sales of Cinema EOS-series cameras, including the new EOS R5 C, as well as professional video cameras and broadcast lenses, were strong. These factors resulted in total sales for the business unit of ¥803.5 billion, a year-on-year increase of 22.9%, while income before income taxes increased by 63.2% year-on-year to ¥128.0 billion mainly as a result of improved profitability due to an enhanced product mix.

As for the Medical Business Unit, demand in Japan declined this year due to a drop-off after an uptick from government spending, which concluded in 2021, and delays of installation work at medical institutions overseas. However, demand of large systems such as Computed tomography (CT) systems and Magnetic resonance imaging (MRI) systems recovered overseas, mainly in Europe and the United States. Sales of diagnostic ultrasound systems were also strong. These factors resulted in total sales for the business unit of ¥513.3 billion, a year-on-year increase of 6.9%, the highest recorded sales in the history of the business unit. Income before income taxes decreased by 7.0% year-on-year to ¥31.9 billion due to an increase in other income (deductions) accompanying a corporate acquisition transaction occurred in the prior year.

As for the Industrial Business Unit, regarding semiconductor lithography equipment, unit sales increased compared with the previous year as a result of maximizing production capacity amid strong sales for a wide range of products such as power devices and sensors. For FPD lithography equipment, performance remained high despite a decrease in unit sales compared with the previous year when the business unit caught up with the delayed equipment installation, although this was mitigated by the minimized impacts of both decreased demand from customers working from home amid the COVID-19 pandemic and the economic slowdown in the current year. For OLED display manufacturing equipment, sales decreased compared with the previous year as panel manufacturers reconsidered investment plans in response to diversifying OLED panel applications. These factors resulted in total sales for the business unit of ¥329.2 billion, a year-on-year decrease of 2.5%, while income before income taxes totaled ¥59.2 billion, a year-on-year increase of 30.7% following the increased unit sales of semiconductor lithography equipment.

------

**Cash Flow** 

During 2022, cash flow from operating activities decreased by ¥188.4 billion year-on-year to ¥262.6 billion as a result of higher inventory levels of key devices and main products, and an increase in working capital. Cash flow from investing activities decreased by ¥26.4 billion year-on-year to ¥180.8 billion due to the absence of major M&A transactions and the increased sales of fixed assets resulting from optimization of branch office capacity at overseas sales subsidiaries, while capital investment to improve efficiency and productivity remained consistent and purchases of securities increased. Accordingly, free cash flow decreased by ¥162.0 billion compared with the previous year to ¥81.8 billion.

Cash flow from financing activities comprised the repayment of loans that were provided for the acquisition of Toshiba Medical Systems Corporation (Canon Medical Systems Corporation). As a result, long-term loans decreased by ¥120.0 billion. In addition, there are repurchases of ¥100.0 billion of treasury stock and dividend payout increased by ¥30.4 billion year-on-year. On the other hand, total outlay of ¥146.8 billion was recorded due to the increase in short-term loans in response to the increase in working capital.

Owing to these factors, as well as the impact from foreign currency exchange adjustments, cash and cash equivalents decreased by ¥39.3 billion to ¥362.1 billion from the end of the previous year.

**Outlook** 

The outlook for the global economy from next year is expected to remain uncertain due to pandemic, geopolitical risk and economic slowdown risk in response to inflation mainly in Europe and the United States.

In the markets in which Canon operates, demand for office MFDs is expected to remain solid due to demand for high-productivity printing equipment. However, there are concerns that demand for laser printers and inkjet printers may be affected by the decrease in demand from customers working from home and the current economic slowdown. As for interchangeable-lens digital cameras, demand is expected to remain solid due to the need for high-quality visual expression. For network cameras, the market is expected to maintain stable growth due to the growing demand for video analysis and high value-added products. In addition, the market for professional video production equipment is expected to grow, supported by increasing demand for video content due to the spread of online video streaming. As for the medical equipment market, demand is expected to remain solid due to a recovery in large investments, mainly for diagnostic imaging unit products, previously held back due to the COVID-19 pandemic. For semiconductor lithography equipment, despite concerns of shrinking in some memory device market, demand of power devices is expected to remain solid. Furthermore, robust demand is expected to continue due to the spread of political initiatives repatriate semiconductor manufacturing capabilities. For FPD lithography equipment, there are concerns about a delay of investments of panel manufacturers mainly due to decreased demand from customers working from home amid the COVID-19 pandemic.

With regard to the currency exchange rates on which Canon bases its performance outlook for the next year, Canon anticipates exchange rates of ¥130 to the U.S. dollar and ¥140 to the euro, representing appreciation of approximately ¥2 against the U.S. dollar and depreciation of approximately ¥2 against the euro as the annual average rates of the previous year.

Upon taking into consideration of the above economic projection, despite concerns of global inflation and tightening monetary policies in each country, it is expected that policies will lead economic recovery in the second half of the year. Based on improved product costs and recovery of product supplies in response to easing of component shortages and logistical disruptions, Canon will strive to demonstrate the results of its new business portfolio and to supply the market with competitive new products. Accordingly, Canon projects full-year consolidated net sales of ¥4,287.0 billion, a year-on-year increase of 6.3%; operating profit of ¥360.0 billion, a year-on-year increase of 1.9%; income before income taxes of ¥390.0 billion, a year-on-year increase of 10.7%; and net income attributable to Canon Inc. of ¥270.0 billion, a year-on-year increase of 10.7%.

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This document contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management's views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project" or "should" and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon's targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this document. A detailed description of these and other risk factors is included in Canon's annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements.

**II. Basic Concept Regarding the Selection of Accounting Standards** 

Canon is listed on the New York Stock Exchange and, since registering its American Depositary Receipts on the OTC (over-the-counter) market in 1969, has prepared its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") over the long term.

Canon has continued to adopt U.S. GAAP in order to maintain the continuity of financial statements from the past and to maintain international comparability.

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

**III. Financial Statements** 

<u>1. CONSOLIDATED BALANCE SHEETS</u>

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| | | | |
|:---|:---|:---|:---|
|  | Millions of yen | Millions of yen | Millions of yen |
|  | **As of<br> December 31, 2022** | As of<br>December 31, 2021 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change |
|  ASSETS |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets | **2155914** | 1878345 | 277569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | **362101** | 401395 | (39294) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments | **10905** | 3377 | 7528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade receivables | **636803** | 522432 | 114371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | **808312** | 650568 | 157744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | **353028** | 314489 | 38539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | **(15235)** | (13916) | (1319) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current assets | **2939616** | 2872543 | 67073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncurrent receivables | **12996** | 16388 | (3392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments | **65128** | 60967 | 4161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net | **1035065** | 1041403 | (6338) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | **117843** | 95791 | 22052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | **280995** | 301793 | (20798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | **972626** | 953850 | 18776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | **458629** | 404720 | 53909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | **(3666)** | (2369) | (1297) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | **5095530** | 4750888 | 344642 |
|  LIABILITIES AND EQUITY |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities | **1365353** | 1060833 | 304520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term loans and current portion of long-term debt | **296384** | 44891 | 251493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term loans related to financial services | **41200** | 42300 | (1100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other short-term loans and current portion of long-term debt | **255184** | 2591 | 252593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade payables | **355930** | 338604 | 17326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income taxes | **48414** | 43081 | 5333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | **365847** | 323929 | 41918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liabilities | **33281** | 30945 | 2336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | **265497** | 279383 | (13886) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Current liabilities | **381147** | 591626 | (210479) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, excluding current portion of long-term debt | **2417** | 179750 | (177333) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued pension and severance cost | **189215** | 248467 | (59252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncurrent operating lease liabilities | **85331** | 65385 | 19946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other noncurrent liabilities | **104184** | 98024 | 6160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | **1746500** | 1652459 | 94041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canon Inc. shareholders' equity | **3113105** | 2873773 | 239332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock | **174762** | 174762 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | **404838** | 403119 | 1719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | **3729244** | 3606052 | 123192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal reserve | **64509** | 68015 | (3506) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other retained earnings | **3664735** | 3538037 | 126698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income (loss) | **62623** | (151794) | 214417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost | **(1258362)** | (1158366) | (99996) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interests | **235925** | 224656 | 11269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity | **3349030** | 3098429 | 250601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and equity | **5095530** | 4750888 | 344642 |
|  | Millions of yen | Millions of yen |  |
|  | **As of<br>December 31, 2022** | As of<br>December 31, 2021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Accumulated depreciation | **2962228** | 2862801 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Accumulated other comprehensive income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | **191287** | 5519 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains and losses on securities | **(34)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains and losses on derivative instruments | **(428)** | (894) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustments | **(128202)** | (156419) |  |

---

------

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

<u>2. CONSOLIDATED STATEMENTS OF INCOME AND</u>

<u>CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME</u>

**Consolidated statements of income** 

**<u>Results for the fourth quarter</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Millions of yen | Millions of yen | | |
|  | **Three months <br>ended<br>December 31, 2022** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three months <br>ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Net sales | **1157175** | 955449 | + | 21.1 |
|  Cost of sales | **638836** | 517598 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | **518339** | 437851 | + | 18.4 |
|  Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | **335338** | 286166 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development expenses | **85657** | 76328 |  |  |
|  | **420995** | 362494 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating profit | **97344** | 75357 | + | 29.2 |
|  Other income (deductions): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividend income | **2010** | 713 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | **(309)** | (205) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | **21426** | (4306) |  |  |
|  | **23127** | (3798) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income before income taxes | **120471** | 71559 | + | 68.4 |
|  Income taxes | **30394** | 8132 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated net income | **90077** | 63427 |  |  |
|  Less: Net income attributable to noncontrolling interests | **5234** | 3629 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to Canon Inc. | **84843** | 59798 | + | 41.9 |
|  **<u>Results for the fiscal year</u>** |  |  |  |  |
|  | Millions of yen | Millions of yen |  |  |
|  | **Year ended<br>December 31, 2022** | Year ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Net sales | **4031414** | 3513357 | + | 14.7 |
|  Cost of sales | **2203612** | 1885565 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | **1827802** | 1627792 | + | 12.3 |
|  Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | **1167673** | 1058536 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development expenses | **306730** | 287338 |  |  |
|  | **1474403** | 1345874 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating profit | **353399** | 281918 | + | 25.4 |
|  Other income (deductions): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividend income | **5177** | 2232 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | **(1046)** | (647) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | **(5090)** | 19203 |  |  |
|  | **(959)** | 20788 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income before income taxes | **352440** | 302706 | + | 16.4 |
|  Income taxes | **92356** | 71866 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated net income | **260084** | 230840 |  |  |
|  Less: Net income attributable to noncontrolling interests | **16123** | 16122 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to Canon Inc. | **243961** | 214718 | + | 13.6 |

---

------

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Consolidated statements of comprehensive income** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Results for the fourth quarter</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Millions of yen | Millions of yen | | |
|  | **Three months <br>ended<br>December 31, 2022** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three months <br>ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Consolidated net income | **90077** | 63427 | + | 42.0 |
|  Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | **(122455)** | 40006 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains and losses on securities | **(13)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains and losses on derivative instruments | **2316** | (648) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustments | **26378** | 36373 |  |  |
|  | **(93774)** | 75731 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income (loss) | **(3697)** | 139158 |  |  |
|  Less: Comprehensive income (loss) attributable to noncontrolling interests | **5824** | 5449 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income (loss) attributable to Canon Inc. | **(9521)** | 133709 |  |  |
| **<u>Results for the fiscal year</u>** |  |  |  |  |
|  | Millions of yen | Millions of yen |  |  |
|  | **Year ended<br>December 31, 2022** | Year ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Consolidated net income | **260084** | 230840 | + | 12.7 |
|  Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | **186563** | 120439 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains and losses on securities | **(34)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains and losses on derivative instruments | **449** | (972) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustments | **29897** | 56508 |  |  |
|  | **216875** | 175975 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income (loss) | **476959** | 406815 | + | 17.2 |
|  Less: Comprehensive income (loss) attributable to noncontrolling interests | **18581** | 19102 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income (loss) attributable to Canon Inc. | **458378** | &nbsp;&nbsp;&nbsp;&nbsp;387713 | + | 18.2 |

---

------

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

<u>3. DETAILS OF SALES</u>

**<u>Results for the fourth quarter</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Millions of yen | Millions of yen | | |
| **Sales by business unit** | **Three months ended<br>December 31, 2022** | Three months ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Printing | **638129** | 520650 | + | 22.6 |
|  Imaging | **242449** | 181297 | + | 33.7 |
|  Medical | **150828** | 128457 | + | 17.4 |
|  Industrial | **95453** | 95901 |  | 0.5 |
|  Others and Corporate | **57285** | 51740 | + | 10.7 |
|  Eliminations | **(26969)** | (22596) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **1157175** | 955449 | + | 21.1 |
|  | Millions of yen | Millions of yen |  |  |
| **Sales by region** | **Three months ended<br>December 31, 2022** | Three months ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Japan | **237232** | 228365 | + | 3.9 |
|  Overseas: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Americas* | **361412** | 258540 | + | 39.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Europe* | **313359** | 242314 | + | 29.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Asia and Oceania* | **245172** | 226230 | + | 8.4 |
|  | **919943** | 727084 | + | 26.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **1157175** | 955449 | + | 21.1 |
| **<u>Results for the fiscal year</u>** |  |  |  |  |
|  | Millions of yen | Millions of yen |  |  |
| **Sales by business unit** | **Year ended<br>December 31, 2022** | Year ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Printing | **2261938** | 1938847 | + | 16.7 |
|  Imaging | **803480** | 653532 | + | 22.9 |
|  Medical | **513331** | 480362 | + | 6.9 |
|  Industrial | **329232** | 337721 |  | 2.5 |
|  Others and Corporate | **223021** | 186593 | + | 19.5 |
|  Eliminations | **(99588)** | (83698) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **4031414** | 3513357 | + | 14.7 |
|  | Millions of yen | Millions of yen |  |  |
| **Sales by region** | **Year ended<br>December 31, 2022** | Year ended<br>December 31, 2021 | Change(%) | Change(%) |
|  Japan | **864808** | 830378 | + | 4.1 |
|  Overseas: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Americas* | **1255405** | 968839 | + | 29.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Europe* | **1034008** | 894898 | + | 15.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Asia and Oceania* | **877193** | 819242 | + | 7.1 |
|  | **3166606** | 2682979 | + | 18.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **4031414** | 3513357 | + | 14.7 |

---

\* Based on the realignment of Canon's internal management structure, from 2022, Canon has changed the name and structure of segments to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial Business Unit, Others and Corporate, and Eliminations. Operating results for the three months ended December 31, 2021 and the year ended December 31, 2021 also have been reclassified. 

---

| | |
|:---|:---|
|  Notes: | 1. The primary products included in each of the segments are as follows: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Printing Business Unit : |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Office multifunction devices (MFDs) / Document solutions / Laser multifunction printers (MFPs) /<br> Laser printers / Inkjet printers / Image scanners / Calculators / Digital continuous feed presses /<br> Digital sheet-fed presses / Large format printers |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Imaging Business Unit : |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interchangeable-lens digital cameras / Interchangeable lenses / Digital compact cameras / Compact photo printers /<br> MR Systems / Network cameras / Video management software / Video content analytics software /<br> Digital camcorders / Digital cinema cameras / Broadcast equipment / Projectors |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medical Business Unit : |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Computed tomography (CT) systems / Diagnostic ultrasound systems / Diagnostic X-ray systems /<br> Magnetic resonance imaging (MRI) systems / Clinical chemistry analyzers / Digital radiography systems / Ophthalmic equipment |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Business Unit : |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Semiconductor lithography equipment / FPD (Flat panel display) lithography equipment /<br> OLED Display Manufacturing Equipment / Vacuum thin-film deposition equipment / Die bonders |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others : |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Handy terminals / Document scanners |
|  | 2. The principal countries and regions included in each regional category are as follows: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Americas: United States of America, Canada, Latin America<br> Europe: United Kingdom, Germany, France, Netherlands, European countries, Middle East and Africa<br> Asia and Oceania: China, Asian countries, Australia |

---

------

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

<u>4. CONSOLIDATED STATEMENTS OF EQUITY</u> 

Millions of yen

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;Common<br> stock | &nbsp;&nbsp;&nbsp;&nbsp;Additional<br> paid-in<br> capital | Retained earnings | Retained earnings | Retained earnings | &nbsp;&nbsp;&nbsp;&nbsp;Accumulated<br> other<br> comprehensive<br> income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;Treasury<br> stock | &nbsp;&nbsp;&nbsp;&nbsp;Total Canon<br> Inc.<br> shareholders'<br> equity | &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling<br> interests | Total equity |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Common<br> stock | &nbsp;&nbsp;&nbsp;&nbsp;Additional<br> paid-in<br> capital | &nbsp;&nbsp;&nbsp;&nbsp;Legal<br> reserve | &nbsp;&nbsp;&nbsp;&nbsp;Other retained<br> earnings | &nbsp;&nbsp;&nbsp;&nbsp;Total retained<br> earnings | &nbsp;&nbsp;&nbsp;&nbsp;Accumulated<br> other<br> comprehensive<br> income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;Treasury<br> stock | &nbsp;&nbsp;&nbsp;&nbsp;Total Canon<br> Inc.<br> shareholders'<br> equity | &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling<br> interests | Total equity |
| &nbsp;&nbsp;&nbsp;&nbsp; Balance at December 31, 2020 | 174762 | 404620 | 69436 | 3409371 | 3478807 | (324789) | (1158369) | 2575031 | 209010 | 2784041 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity transactions with noncontrolling interests and other |  | (62) |  |  |  |  |  | (62) | 1725 | 1663 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends to Canon Inc. shareholders |  |  |  | (88891) | (88891) |  |  | (88891) |  | (88891) |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends to noncontrolling interests |  |  |  |  |  |  |  |  | (5181) | (5181) |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfers to legal reserve |  | (1429) | (1421) | 2850 | 1429 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income |  |  |  | 214718 | 214718 |  |  | 214718 | 16122 | 230840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments |  |  |  |  |  | 119165 |  | 119165 | 1274 | 120439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains and losses on securities |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains and losses on derivative instruments |  |  |  |  |  | (994) |  | (994) | 22 | (972) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustments |  |  |  |  |  | 54824 |  | 54824 | 1684 | 56508 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total comprehensive income (loss) |  |  |  |  |  |  |  | 387713 | 19102 | 406815 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchases and reissuance of treasury stock |  | (10) |  | (11) | (11) |  | 3 | (18) |  | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp; Balance at December 31, 2021 | 174762 | 403119 | 68015 | 3538037 | 3606052 | (151794) | (1158366) | 2873773 | 224656 | 3098429 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Equity transactions with noncontrolling interests and other** |  | **298** | **(4538)** | **4536** | **(2)** |  |  | **296** | **(1151)** | **(855)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Dividends to Canon Inc. shareholders** |  |  |  | **(119326)** | **(119326)** |  |  | **(119326)** |  | **(119326)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Dividends to noncontrolling interests** |  |  |  |  |  |  |  |  | **(6161)** | **(6161)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Transfers to legal reserve** |  | **1432** | **1032** | **(2464)** | **(1432)** |  |  | **-** |  | **-** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Comprehensive income:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income** |  |  |  | **243961** | **243961** |  |  | **243961** | **16123** | **260084** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Other comprehensive income (loss), net of tax:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Foreign currency translation adjustments** |  |  |  |  |  | **185768** |  | **185768** | **795** | **186563** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net unrealized gains and losses on securities** |  |  |  |  |  | **(34)** |  | **(34)** |  | **(34)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net gains and losses on derivative instruments** |  |  |  |  |  | **466** |  | **466** | **(17)** | **449** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Pension liability adjustments** |  |  |  |  |  | **28217** |  | **28217** | **1680** | **29897** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total comprehensive income (loss)** |  |  |  |  |  |  |  | **458378** | **18581** | **476959** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Repurchases and reissuance of treasury stock** |  | **(11)** |  | **(9)** | **(9)** |  | **(99996)** | **(100016)** |  | **(100016)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Balance at December 31, 2022** | **174762** | **404838** | **64509** | **3664735** | **3729244** | **62623** | **(1258362)** | **3113105** | **235925** | **3349030** |

---

------

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

<u>5. CONSOLIDATED STATEMENTS OF CASH FLOWS</u> 

---

| | | |
|:---|:---|:---|
|  | Millions of yen | Millions of yen |
|  | **Year ended<br>December 31, 2022** | Year ended<br>December 31, 2021 |
|  Cash flows from operating activities: |  |  |
|  Consolidated net income | **260084** | 230840 |
|  Adjustments to reconcile consolidated net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | **226492** | 221246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposal of fixed assets | **(6458)** | 7745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | **(7800)** | (9826) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in trade receivables | **(78203)** | 44678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in inventories | **(108510)** | (61017) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in lease receivables | **(30379)** | (1075) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in trade payables | **3293** | 52138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in accrued income taxes | **3472** | 24017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in accrued expenses | **23407** | (8673) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in accrued pension and severance cost | **(42580)** | (41477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | **19785** | (7568) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | **262603** | 451028 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of fixed assets | **(188527)** | (177350) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of fixed assets | **14733** | 3796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of held to maturity securities | **-** | (2216) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from maturity of held to maturity securities | **2151** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of securities | **(21558)** | (2162) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale and maturity of securities | **7680** | 1714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of businesses, net of cash acquired | **(5890)** | (31751) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | **10591** | 713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | **(180820)** | (207256) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of long-term debt | **300** | 175100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments of long-term debt | **(122067)** | (347029) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in short-term loans related to financial services, net | **(1100)** | (2700) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in other short-term loans, net | **197826** | (175) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction with noncontrolling interests | **3700** | 1527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid | **(119326)** | (88891) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchases and reissuance of treasury stock, net | **(100016)** | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | **(6161)** | (5181) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | **(146844)** | (267366) |
|  Effect of exchange rate changes on cash and cash equivalents | **25767** | 17305 |
|  Net change in cash and cash equivalents | **(39294)** | (6289) |
|  Cash and cash equivalents at beginning of period | **401395** | 407684 |
|  Cash and cash equivalents at end of period | **362101** | 401395 |

---

\* Certain items in the consolidated statements of cash flows for the year ended December 31, 2021, have been reclassified to conform to the current year's presentation.

------

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

<u>6. NOTE FOR GOING CONCERN ASSUMPTION</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.

<u>7. SEGMENT INFORMATION</u>

&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT INFORMATION BY BUSINESS UNIT

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Results for the fiscal year</u>** | Millions of yen | Millions of yen |  |  |
|  | **Year ended<br> December 31, 2022** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year ended<br> December 31, 2021 | Change(%) | Change(%) |
| **Printing** |  |  |  |  |
| Net sales: |  |  |  |  |
| External customers | **2255402** | 1934012 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 16.6 |
| Intersegment | **6536** | 4835 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 35.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **2261938** | 1938847 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 16.7 |
| Operating cost and expenses | **2049964** | 1713154 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 19.7 |
| Operating profit | **211974** | 225693 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 6.1 |
| Other income (deductions) | **13806** | 7259 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 90.2 |
| Income before income taxes | **225780** | 232952 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 3.1 |
| Total assets | **1224187** | 1009922 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 21.2 |
| Depreciation and amortization | **72946** | 69549 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 4.9 |
| Capital expenditures | **66550** | 63609 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 4.6 |
| **Imaging** |  |  |  |  |
| Net sales: |  |  |  |  |
| External customers | **803057** | 651494 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 23.3 |
| Intersegment | **423** | 2038 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 79.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **803480** | 653532 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 22.9 |
| Operating cost and expenses | **676850** | 574814 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 17.8 |
| Operating profit | **126630** | 78718 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 60.9 |
| Other income (deductions) | **1403** | (256) |  |  |
| Income before income taxes | **128033** | 78462 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 63.2 |
| Total assets | **349338** | 236143 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 47.9 |
| Depreciation and amortization | **20374** | 21840 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 6.7 |
| Capital expenditures | **17841** | 12069 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 47.8 |
| **Medical** |  |  |  |  |
| Net sales: |  |  |  |  |
| External customers | **513028** | 480029 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 6.9 |
| Intersegment | **303** | 333 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **513331** | 480362 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 6.9 |
| Operating cost and expenses | **482326** | 450942 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 7.0 |
| Operating profit | **31005** | 29420 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 5.4 |
| Other income (deductions) | **890** | 4876 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 81.7 |
| Income before income taxes | **31895** | 34296 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 7.0 |
| Total assets | **356799** | 311247 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 14.6 |
| Depreciation and amortization | **13418** | 12435 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 7.9 |
| Capital expenditures | **11956** | 11888 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 0.6 |
| **Industrial** |  |  |  |  |
| Net sales: |  |  |  |  |
| External customers | **320817** | 328164 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 2.2 |
| Intersegment | **8415** | 9557 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 11.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **329232** | 337721 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 2.5 |
| Operating cost and expenses | **271213** | 292854 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 7.4 |
| Operating profit | **58019** | 44867 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 29.3 |
| Other income (deductions) | **1194** | 434 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 175.1 |
| Income before income taxes | **59213** | 45301 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 30.7 |
| Total assets | **233969** | 212156 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 10.3 |
| Depreciation and amortization | **12195** | 11193 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 9.0 |
| Capital expenditures | **15271** | 10127 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 50.8 |
| **Others and Corporate** |  |  |  |  |
| Net sales: |  |  |  |  |
| External customers | **139110** | 119658 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 16.3 |
| Intersegment | **83911** | 66935 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **223021** | 186593 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 19.5 |
| Operating cost and expenses | **296399** | 282643 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 4.9 |
| Operating profit | **(73378)** | (96050) |  |  |
| Other income (deductions) | **(12147)** | 14978 |  |  |
| Income before income taxes | **(85525)** | (81072) |  |  |
| Total assets | **2952891** | 2999754 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 1.6 |
| Depreciation and amortization | **107559** | 106229 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 1.3 |
| Capital expenditures | **71673** | 81307 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 11.8 |
| **Eliminations** |  |  |  |  |
| Net sales: |  |  |  |  |
| External customers | **-** |  |  |  |
| Intersegment | **(99588)** | (83698) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **(99588)** | (83698) |  |  |
| Operating cost and expenses | **(98737)** | (82968) |  |  |
| Operating profit | **(851)** | (730) |  |  |
| Other income (deductions) | **(6105)** | (6503) |  |  |
| Income before income taxes | **(6956)** | (7233) |  |  |
| Total assets | **(21654)** | (18344) |  |  |
| Depreciation and amortization | **-** |  |  |  |
| Capital expenditures | **-** |  |  |  |
| **Consolidated** |  |  |  |  |
| Net sales: |  |  |  |  |
| External customers | **4031414** | 3513357 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 14.7 |
| Intersegment | **-** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **4031414** | 3513357 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 14.7 |
| Operating cost and expenses | **3678015** | 3231439 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 13.8 |
| Operating profit | **353399** | 281918 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 25.4 |
| Other income (deductions) | **(959)** | 20788 |  |  |
| Income before income taxes | **352440** | 302706 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 16.4 |
| Total assets | **5095530** | 4750888 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 7.3 |
| Depreciation and amortization | **226492** | 221246 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 2.4 |
| Capital expenditures | **183291** | 179000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ | 2.4 |

---

\*Based on the realignment of Canon's internal management structure, from 2022, Canon has changed the name and structure of segments to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial Business Unit, Others and Corporate, and Eliminations. Operating results for the year ended December 31, 2021 also have been reclassified.

\*Others and Corporate expenses include certain corporate research and development expenses. Amortization costs of identified intangible assets resulting from the purchase price allocation of Toshiba Medical Systems Corporation (Canon Medical Systems Corporation) are also included in corporate expenses.

------

CANON INC. AND SUBSIDIARIES

<u>8. NOTE ON SIGNIFICANT CHANGES IN SHAREHOLDERS' EQUITY</u> 

None.

<u>9. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES</u> 

SIGNIFICANT ACCOUNTING POLICIES

Canon's consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.

<u>10. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u> 

(1) NET INCOME ATTRIBUTABLE TO CANON INC. SHAREHOLDERS PER SHARE

---

| | | |
|:---|:---|:---|
| Results for the fiscal year | Millions of yen | Millions of yen |
|  | **Year ended<br> December 31, 2022** | Year ended<br> December 31, 2021 |
|  Net income attributable to Canon Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Basic | **243961** | 214718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Diluted | **243957** | 214714 |
|  | Number of shares | Number of shares |
|  Average common shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Basic | **1030644385** | 1045632588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Diluted | **1030979260** | 1045909654 |
|  | Yen | Yen |
|  Net income attributable to |  |  |
|  Canon Inc. shareholders per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Basic | **236.71** | 205.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Diluted | **236.63** | 205.29 |

---

(2) SUBSEQUENT EVENT

On January 5, 2023, Canon borrowed ¥140 billion under its existing overdraft facilities with Mizuho Bank, Ltd. and MUFG Bank, Ltd. for required operating funds. The overdraft facilities bear interest at a rate equal to a base rate plus a spread.

------

NON-CONSOLIDATED

(Current Titles are Shown in the Parentheses)

<u>Effective Date: March 30, 2023</u> 

<u>Audit</u> <u>& Supervisory Board Members</u>

(1) Audit & Supervisory Board Member to be retired

 <br> Hiroaki Sato (Audit & Supervisory Board Member)

(2) Candidate for new Audit & Supervisory Board Member to be appointed

 <br> Hideya Hatamochi (President of Canon (Suzhou) Inc.)

------

NON-CONSOLIDATED

(Current Titles are Shown in the Parentheses)

<u>Executive Officers</u>

(1) Executive Officers to be retired

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Effective Date: March 31, 2023</u>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kenichi Nagasawa | (Senior Managing Executive Officer,<br> Group Executive of Corporate Intellectual Property and Legal Headquarters, Senior General Manager of Economic Security Office) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aitake Wakiya | (Senior Managing Executive Officer,<br> Executive Vice President & CFO of Canon Europe Ltd.) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nobuyuki Tainaka | (Executive Officer,<br> Senior General Manager of Global Legal Administration Center) |

---

(2) New Executive Officer to be appointed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Effective Date: April 1, 2023</u>

 <br> Katsuhito Sakurai (Senior General Manager of Semiconductor Device Development Center 1)

(3) Executive Officers to be promoted

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Effective Date: April 1, 2023</u>

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Managing Executive Officer | Shunsuke Inoue | (Managing Executive Officer,<br> Group Executive of R&D Headquarters) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Managing Executive Officer | Soichi Hiramatsu | (Managing Executive Officer,<br> Group Executive of Procurement Headquarters) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Managing Executive Officer | Go Tokura | (Managing Executive Officer,<br> Deputy Head of Imaging Group) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Managing Executive Officer | Minoru Asada | (Managing Executive Officer,<br> Group Executive of Finance & Accounting Headquarters) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Executive Officer | Katsuhiko Shinjo | (Executive Officer,<br> Deputy Group Executive of R&D Headquarters) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Executive Officer | Masaki Omori | (Executive Officer,<br> President of Canon Machinery Inc.) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Executive Officer | Takeshi Ichikawa | (Executive Officer,<br> Group Executive of Device Technology Development Headquarters) |

---