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

For the month of …. ~~October~~November ……………………………………………… , 2023



		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)

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


Form 20-F		X		Form 40-F

[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.


Yes				No		X

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

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.


CANON INC.
(Registrant)

Date….	October 26, 2023	By....../s/.......... Sachiho Tanino.............
Date…	November 10, 2023	By....../s/.......... Sachiho Tanino.............
		(Signature)*
		Sachiho Tanino General Manager Consolidated Accounting Div. Canon Inc.

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

The following materials are included.

1. ~~RESULTS~~Quarterly ~~FOR~~Report ~~THE~~filed ~~THIRD~~with ~~QUARTER~~the ~~AND~~Japanese ~~THE~~government ~~NINE~~pursuant ~~MONTHS~~to ~~ENDED~~the ~~SEPTEMBER~~Financial Instruments and Exchange Law of Japan for the third quarter ended September 30, 2023

~~CONSOLIDATED~~[English ~~RESULTS~~summary ~~FOR~~with ~~THE~~full ~~THIRD~~translation ~~QUARTER~~of ~~AND~~consolidated financial information]

~~THE~~Quarterly ~~NINE~~Report ~~MONTHS~~filed ~~ENDED~~with ~~SEPTEMBER~~the ~~30,~~Japanese ~~2023~~government

~~October~~pursuant ~~26,~~to ~~2023~~

~~CONSOLIDATED~~the Financial ~~RESULTS~~Instruments ~~FOR~~and ~~THE THIRD~~Exchange ~~QUARTER~~Law of Japan

			(Millions of yen, thousands of U.S. dollars, except per share amounts)
	Actual
	Three monthsendedSeptember 30, 2023		Three months endedSeptember 30, 2022		Change(%)		Three monthsendedSeptember 30, 2023
Net sales	¥	1,025,247	¥	996,090	+	2.9	$	6,834,980
Operating profit		82,624		81,440	+	1.5		550,827
Income before income taxes		87,320		79,076	+	10.4		582,133
Net income attributable to Canon Inc.	¥	62,134	¥	54,118	+	14.8	$	414,227
Net income attributable to Canon Inc. shareholders per share:
- Basic	¥	62.65	¥	52.90	+	18.4	$	0.42
- Diluted		62.62		52.88	+	18.4		0.42
CONSOLIDATED RESULTS FOR THE NINE MONTHS
			(Millions of yen, thousands of U.S. dollars, except per share amounts)
	Actual								Projection
	Nine months endedSeptember 30, 2023		Nine monthsendedSeptember 30, 2022		Change(%)		Nine months endedSeptember 30, 2023		Year endingDecember 31,2023		Change(%)
Net sales	¥	3,017,254	¥	2,874,239	+	5.0	$	20,115,027	¥	4,220,000	+	4.7
Operating profit		259,373		256,055	+	1.3		1,729,153		400,000	+	13.2
Income before income taxes		275,982		231,969	+	19.0		1,839,880		425,000	+	20.6
Net income attributable to Canon Inc.	¥	183,947	¥	159,118	+	15.6	$	1,226,313	¥	292,000	+	19.7
Net income attributable to Canon Inc. shareholders per share:
- Basic	¥	182.98	¥	153.70	+	19.1	$	1.22	¥	291.65	+	23.2
- Diluted		182.91		153.65	+	19.0		1.22		291.53	+	23.2
	Actual
	As of September 30, 2023		As ofDecember 31, 2022		Change(%)		As of September 30, 2023
Total assets	¥	5,619,004	¥	5,095,530	+	10.3	$	37,460,027
Canon Inc. shareholders’ equity	¥	3,291,205	¥	3,113,105	+	5.7	$	21,941,367

For the third quarter ended

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 JPY150=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 29 30, 2023, ~~solely for the convenience of the reader.~~

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

CANON INC.

~~- 1 -~~Tokyo, Japan

I.CONTENTS ~~Operating Results and Financial Conditions~~

2023 Third Quarter in Review


		Page
I	Corporate Information

	(1) Consolidated Financial Summary		2

	(2) Description of Business		2

II	The Business

	(1) Risk Factors		3

	(2) Operating Results and Financial Conditions		3

	(3) Significant Business Contracts Entered into in the Third Quarter of Fiscal 2023		11

III	Company Information

	(1) Shares		12

	(2) Directors and Executive Officers		14

IV	Financial Statements

	(1) Consolidated Financial Statements		15

	(2) Other Information		54

Disclaimer Regarding Forward-Looking Statements

This quarterly report includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) concerning Canon Inc. (the “Company”) and its subsidiaries (collectively “Canon”). To the extent that statements in this quarterly report do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of Canon in light of the information currently available to them, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Canon’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Canon undertakes no obligation to publicly update any forward-looking statements after the date of this quarterly report. Investors are advised to consult any further disclosures by Canon in its subsequent filings with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 and its other filings.

The risks, uncertainties and other factors referred to above include, but are not limited to, foreign currency exchange rate fluctuations; the uncertainty of Canon’s ability to implement its plans to localize production and other measures to reduce the impact of foreign currency exchange rate fluctuations; uncertainty as to economic conditions in Canon’s major markets; uncertainty of continued demand for Canon’s high-value-added products; Canon’s ability to continue to develop products and to market products that incorporate new technology on a timely basis, are competitively priced, and achieve market acceptance; the possibility of losses resulting from foreign currency transactions designed to reduce financial risks from changes in foreign currency exchange rates; disasters, outages or similar events; and inventory risk due to disruptions in supply chains and shifts in market demand.

I.	Corporate Information

(1)

Consolidated Financial Summary


	Millions of yen (except per share amounts)
	Nine months ended September 30, 2023			Nine months ended September 30, 2022			Three months ended September 30, 2023		Three months ended September 30, 2022		Year ended December 31, 2022
Net sales		3,017,254			2,874,239			1,025,247		996,090		4,031,414
Income before income taxes		275,982			231,969			87,320		79,076		352,440
Net income attributable to Canon Inc.		183,947			159,118			62,134		54,118		243,961
Comprehensive income (loss)		424,798			480,656			106,056		105,086		476,959
Canon Inc. shareholders’ equity		—			—			3,291,205		3,122,629		3,113,105
Total equity		—			—			3,535,504		3,354,224		3,349,030
Total assets		—			—			5,619,004		5,301,056		5,095,530
Net income attributable to Canon Inc. shareholders per share:
Basic (yen)		182.98			153.70			62.65		52.90		236.71
Diluted (yen)		182.91			153.65			62.62		52.88		236.63
Canon Inc. shareholders’ equity to total assets (%)		—			—			58.6		58.9		61.1
Net cash provided by operating activities		269,885			188,481			—		—		262,603
Net cash used in investing activities		(204,021	)		(132,350	)		—		—		(180,820	)
Net cash provided by (used in) financing activities		65,080			(29,582	)		—		—		(146,844	)
Cash and cash equivalents at end of period		—			—			520,745		465,298		362,101

Notes:

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

2.	Consumption tax is excluded from the stated amount of net sales.

(2)

Description of Business

Canon prepares quarterly consolidated financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Financial information presented in sections “II. The Business” is also in conformity with U.S. GAAP.

The Canon Group (consisting of the Company, 334 consolidated subsidiaries, and 11 affiliates accounted for using the equity method, as of September 30, 2023, collectively, the “Group”) is engaged in development, manufacturing, sales, and servicing activities in areas such as printing, imaging, medical, industrial, and others and corporate. No material change in Canon’s business has occurred during the nine months ended September 30, 2023.

No additions or removals of significant group entities have occurred during the nine months ended September 30, 2023.

II.

The Business

(1)

Risk Factors

No new material risks have been identified during the nine months ended September 30, 2023. No material changes have been identified pursuant to the risk factors of Canon’s business indicated in the Annual Securities Report (Yukashoken Houkokusho) of the previous fiscal year.

(2)

Operating Results and Financial Conditions

Looking back at the third quarter of 2023, although the economic situation varied from one region to another, the global economy recovered modestly. In the United States, thanks to the strong employment situation, consumer spending remained solid. In Europe, however, the economy remained stagnant with strong uninterrupted downward pressure on the economy due to the continuation of tight monetary policy. In China, the economy slowed down due to sluggish real estate market. In other emerging countries, the economy remained solid, mostly centering around consumer spending and the service industry. In Japan, the economy recovered moderately, with consumer spending showing signs of picking up on the back of improvement in the employment and personal income environment.

In the markets in which Canon operates, demand was impacted by the sluggish Chinese economy. On a product basis, despite stagnant market conditions in China, demand for office multifunction devices (MFDs) remained firm thanks to solid demand for printing equipment offering high productivity in other countries. For inkjet printers, while the demand from customers working from home slowed, sales of refillable ink tank ~~models~~printers remained firm. For laser printers, demand slowed due to the curbing of corporate investments. For cameras, demand remained solid due to a recovery in travel and leisure. The market of network cameras continued to grow as well. For medical equipment, demand remained firm, particularly in Japan and Europe. For semiconductor lithography equipment, although demand for memory devices remained weak, ~~investments~~investment remained at a high level, particularly for power devices, analog devices, and sensors. For FPD (Flat Panel Display) lithography equipment, the market continued to shrink due to restrained ~~investments~~investment by panel manufacturers.

The average value of the yen against the U.S. dollar in the third quarter and for the first nine months of the year was ¥144.76, a year-on-year depreciation of approximately ¥6, and ¥138.27, a year-on-year depreciation of approximately ¥10, respectively. Correspondingly, against the euro, ¥157.32 a year-on-year depreciation of approximately ¥18, and ¥149.59, a year-on-year depreciation of approximately ¥14.

As for the third quarter, net sales increased by 2.9% year-on-year to ¥1,025.2 billion due to solid demand for network cameras and other new businesses, and the favorable effects of depreciation of the yen. Net sales for the third quarter exceeded ¥1,000 billion for the first time in sixteen years since 2007. Net sales for the first nine months of the year increased by 5.0% year-on-year to ¥3~~,017.3 billion.~~ Gross profit as a percentage of net sales increased by 1.7 points year-on-year to 47.0% due to an improvement in costs, resulting from easing of component shortages and logistics disruptions, and the favorable effects of depreciation of the yen. Gross profit for the third quarter increased by 6.9% year-on-year to ¥482.1 billion. Operating expenses increased by 8.1% year-on-year to ¥399.4 billion due to an increase in sales-related expenses with the normalization of sales activity. In addition, operating expenses denominated in foreign currencies increased due to depreciation of the yen. As a result, operating profit increased by 1.5% year-on-year to ¥82.6 billion. Other income (deductions) increased by ¥7.1 billion year-on-year to ¥4.7 billion due to a decrease of currency exchange losses, which were substantially incurred last year. As a result, income before income taxes increased by 10.4% year-on-year to ¥87.3 billion and net income attributable to Canon Inc. increased by 14.8% year-on-year to ¥62.1 billion. Consequently, operating profit, income before income taxes and net income attributable to Canon Inc. for the third quarter exceeded last year. Operating profit for the first nine months of the year increased by 1.3% to ¥259.4 billion, while income before income taxes increased by 19.0% to ¥276.0 billion and first nine months net income attributable to Canon Inc. increased by 15.6% to ¥183.9 billion.

~~Basic~~(2) ~~net~~Operating ~~income~~Results ~~attributable to Canon Inc. shareholders per share was ¥62.65 for the third quarter, a year-on-year increase of ¥9.75,~~ and ~~¥182.98~~Financial ~~for~~Conditions ~~the first nine months, a year-on-year increase of ¥29.28.~~ (continued)

~~- 2 -~~[Third quarter results]

~~Results~~Summarized byresults ~~Segment~~of the consolidated statements of income for the three months ended September 30, 2023 and September 30, 2022 are as follows:

Looking at Canon’s third-quarter performance by business unit, in the Printing Business Unit, unit sales of MFDs for offices decreased compared with the same period of the previous year, due to stagnant market conditions in China this year and the high level of unit sales last year resulting from the resumption of product supply. As for inkjet printers, unit sales were at the same level as the previous year thanks to solid sales of refillable ink tank models, even as the surge in working from home demand subsided. As for laser printers, unit sales decreased compared with the same period of the previous year due to the curbing of corporate investments. Regarding equipment for the production printing market, unit sales increased compared with the same period of the previous year, thanks to enhancing its product lineup by adding the imagePRESS V1350. As a result, sales of the Printing Business Unit increased by 2.8% compared with the same period of the previous year to ¥570.4 billion. Income before income taxes for the third quarter increased by 6.5% compared with the same period of the previous year to ¥46.8 billion mainly due to decrease in logistics costs. Sales for the first nine months of the year totaled ¥1,703.4 billion, a year-on-year increase of 4.3%, while income before income taxes totaled ¥161.5 billion, a year-on-year decrease of 5.1% due to such effects as weak sales of consumables in the first half of the year.


	Millions of yen (except per share amounts and percentage data)
	Three months ended September 30, 2023		Change			Three months ended September 30, 2022
Net sales		1,025,247		+2.9	%		996,090
Gross profit		482,050		+6.9			451,033
Operating expenses		399,426		+8.1			369,593
Operating profit		82,624		+1.5			81,440
Other income (deductions)		4,696		—			(2,364	)
Income before income taxes		87,320		+10.4			79,076
Net income attributable to Canon Inc.		62,134		+14.8			54,118

Net income attributable to Canon Inc. shareholders per share:
Basic		62.65		+18.4			52.90
Diluted		62.62		+18.4			52.88

InAs for the ~~Imaging~~third ~~Business Unit~~quarter, net sales ofincreased ~~interchangeable~~by 2.9% year-~~lens~~on-year ~~digital~~to ~~cameras~~¥1,025.2 billion indue ~~particular~~to ~~mirrorless~~solid ~~cameras~~demand ~~like~~for ~~the~~network ~~EOS~~cameras R6and ~~Mark~~other IInew businesses, a ~~full-frame~~and ~~mirrorless~~the ~~camera~~favorable ~~released~~effects ~~last~~of ~~year,~~depreciation ~~and~~of the ~~new~~yen. ~~entry-level~~Net ~~EOS~~sales ~~R50~~for ~~and~~the ~~EOS~~third ~~R100~~quarter ~~mirrorless~~exceeded ¥1,000 billion ~~cameras~~for ~~launched in~~ the first ~~half~~time ofin ~~this~~sixteen ~~year,~~years ~~remained~~since ~~solid~~2007. ~~Sales~~Gross ofprofit ~~RF-series interchangeable-lenses remained solid~~ as ~~well.~~a ~~Sales~~percentage of ~~network~~net ~~cameras~~sales increased ~~thanks~~by 1.7 points year-on-year to ~~solid~~47.0% ~~demand~~due ~~and~~to ~~enhanced~~an improvement ~~sales~~in ~~activity~~costs, ~~against~~resulting ~~the~~from ~~background~~easing of ~~diversifying~~component ~~applications.~~shortages Asand alogistics ~~result~~disruptions, ~~sales~~and ~~for~~ the ~~third~~favorable ~~quarter~~effects of depreciation of the ~~Imaging Business~~yen. ~~Unit~~Gross profit for the third quarter increased by 86.79% ~~compared~~year-on-year ~~with~~to ~~the~~¥482.1 billion. ~~same~~Operating ~~period~~expenses ofincreased ~~the~~by ~~previous~~8.1% year-on-year to ¥~~220~~399.74 billion, ~~while~~due ~~income~~to ~~before~~an increase ~~income~~in ~~taxes~~sales-related ~~for~~expenses with the ~~third~~normalization ~~quarter~~of ~~increased~~sales ~~by 10~~activity.2% ~~compared~~In ~~with~~addition, ~~the~~operating ~~same~~expenses ~~period~~denominated ofin ~~the~~foreign ~~previous~~currencies ~~year~~increased due to ~~¥40.6 billion.~~ ~~Sales~~depreciation ~~for~~of the ~~first~~yen. ~~nine~~As ~~months~~a ofresult, ~~the~~operating profit increased by 1.5% year-on-year ~~totaled~~to ¥~~632~~82.36 billion,. aOther income (deductions) increased by ¥7.1 billion year-on-year ~~increase~~to ~~of 12~~¥4.7% billion due to a decrease of currency exchange losses, ~~while~~which were substantially incurred last year. As a result, income before income taxes ~~totaled~~increased ~~¥113~~by 10.~~0 billion,~~4% a year-on-year ~~increase~~to ~~of 35~~¥87.5%3 billion ~~due~~and net income attributable to ~~the~~Canon ~~steady~~Inc. ~~sales~~increased ofby ~~network~~14.8% ~~cameras~~year-on-year ~~and~~to ~~other~~¥62.1 billion. ~~highly~~Consequently, ~~competitive~~operating ~~products~~profit, asincome ~~well~~before asincome ~~non-recurring~~taxes ~~expenses~~and ~~incurred~~net income attributable to ~~close~~Canon aInc. ~~certain~~for ~~production~~the ~~facility~~third inquarter ~~the~~exceeded ~~previous~~last year.

InBasic ~~the~~net ~~Medical~~income ~~Business Unit,~~attributable ~~sales~~to ~~remained~~Canon ~~firm mainly in Japan and Europe~~Inc. Asshareholders aper ~~result,~~share ~~sales~~was ~~of the Medical Business Unit increased by 5.0% compared with the same period of the previous year to~~ ¥~~132~~62.~~4 billion.~~65 ~~Income before income taxes~~ for the third quarter ~~increased by 0.3% compared with the same period of the previous year to ¥6.6 billion. Sales for the first nine months of the year totaled ¥389.6 billion~~, a year-on-year increase of ~~7.5%, while income before income taxes totaled~~ ¥~~17.~~9 ~~billion, a year-on-year decrease of 17~~.~~1% mainly due to active investments to augment its workforce in order to enhance its sales capacity~~75.

In the Industrial Business Unit, sales of semiconductor lithography equipment remained strong, particularly for those used in the production of power devices. As a result, unit sales were on par with the same period of the previous year, which saw a significant increase in unit sales. For FPD lithography equipment, unit sales decreased compared with the previous year due to reduced investments by panel manufacturers as the panel market worsened. As a result, net sales of the Industrial Business Unit decreased by 9.4% compared with the same period of the previous year to ¥78.8 billion, and income before income taxes for the third quarter decreased by 6.6% compared with the same period of the previous year to ¥15.9 billion. Sales for the first nine months of the year totaled ¥215.8 billion, a year-on-year decrease of 7.7%, while income before income taxes totaled ¥35.7 billion, a year-on-year decrease of 21.9%.

~~- 3 -~~(2) Operating Results and Financial Conditions (continued)

~~Cash~~[Nine-month ~~Flow~~results]

~~During~~Summarized ~~the~~results ~~first nine months~~ of ~~2023,~~the ~~cash~~consolidated ~~flow~~statements ~~from~~of ~~operating~~income ~~activities~~for ~~increased~~the bynine ~~¥81.4 billion~~months ~~year-on-year~~ended ~~to ¥269.9~~September ~~billion~~30, ~~mainly~~2023 ~~due to an increase in profit~~ and ~~efforts to limit the rise in inventory. Cash flow used in investing activities increased by ¥71.7~~September ~~billion to ¥204.0 billion from the same period of the previous year due to an acquisition of Minaris Medical Co.~~30, ~~Ltd.,~~2022 ~~which has in vitro diagnostics and automated analyzer businesses,~~ are as ~~well~~follows: ~~as continued capital investments to improve efficiency and productivity. Accordingly, free cash flow increased by ¥9.7 billion compared with the previous year to ¥65.9 billion.~~


	Millions of yen (except per share amounts and percentage data)
	Nine months ended September 30, 2023		Change			Nine months ended September 30, 2022
Net sales		3,017,254		+5.0	%		2,874,239
Gross profit		1,420,831		+8.5			1,309,463
Operating expenses		1,161,458		+10.3			1,053,408
Operating profit		259,373		+1.3			256,055
Other income (deductions)		16,609		—			(24,086	)
Income before income taxes		275,982		+19.0			231,969
Net income attributable to Canon Inc.		183,947		+15.6			159,118

Net income attributable to Canon Inc. shareholders per share:
Basic		182.98		+19.1			153.70
Diluted		182.91		+19.0			153.65

As for the first nine months, net sales increased by 5.0% year-on-year to ¥3,017.3 billion due to a recovery of supply following a shortage of components and logistical disruptions, which had constrained business and solid demand for new businesses such as network cameras, as well as the favorable effects of depreciation of the yen. Gross profit as a percentage of net sales increased by 1.5 points year-on-year to 47.1% due to improvement of product costs, resulting from easing of component shortages and logistics disruptions, and depreciation of the yen. Gross profit increased by 8.5% year-on-year to ¥1,420.8 billion. Operating expenses increased by 10.3% year-on-year to ¥1,161.5 billion due to an increase in sales-related expenses with the normalization of sales activity. In addition, operating expenses denominated in foreign currencies increased due to depreciation of the yen. As a result, operating profit increased by 1.3% year-on-year to ¥259.4 billion. Other income (deductions) increased by ¥40.7 billion year-on-year to ¥16.6 billion due to a decrease of currency exchange losses, which were substantially incurred last year. As a result, income before income taxes increased by 19.0% to ¥276.0 billion and first nine months net income attributable to Canon Inc. increased by 15.6% to ¥183.9 billion.

Basic net income attributable to Canon Inc. shareholders per share was ¥182.98 for the first nine months, a year-on-year increase of ¥29.28.

(2)

Operating Results and Financial Conditions (continued)

Operating results by segment (“business unit”) for the nine months ended September 30, 2023 and September 30, 2022 are as follows:


Printing Business Unit	Millions of yen (except percentage data)
	Nine months ended September 30, 2023		Change			Nine months ended September 30, 2022
Net sales:
Office		716,782		+12.6	%		636,591
Prosumer		699,764		-5.1			737,454
Production		282,074		+11.0			254,096

External customers total		1,698,620		+4.3			1,628,141
Intersegment		4,824		+12.1			4,302

Total		1,703,444		+4.3			1,632,443
Operating cost and expenses		1,547,489		+5.1			1,471,916

Operating Profit		155,955		-2.8			160,527
Income before income taxes		161,533		-5.1			170,231

As for the Printing Business Unit, MFDs for offices continued to sell well, exceeding unit sales of the same period of the previous year, as the product supply shortage was abated, while demand for products including the imageRUNNER ADVANCE DX C5800 mid-speed color MFD series were solid. As for inkjet printers, unit sales decreased compared with the same period of the previous year as the surge in working from home demand subsided. As for laser printers, unit sales decreased compared with the same period of the previous year due to the curbing of corporate investments. Regarding equipment for the production printing market, unit sales increased compared with the same period of the previous year, thanks to enhancing its product lineup by adding the imagePRESS V1350. These factors resulted in total sales for the business unit of ¥1,703.4 billion, a year-on-year increase of 4.3%, while income before income taxes totaled ¥161.5 billion, a year-on-year decrease of 5.1% due to such effects as weak sales of consumables in the first half of the year.


Imaging Business Unit	Millions of yen (except percentage data)
	Nine months ended September 30, 2023		Change			Nine months ended September 30, 2022
Net sales:
Cameras		390,428		+8.4	%		360,334
Network cameras and Others		241,745		+20.7			200,362

External customers total		632,173		+12.7			560,696
Intersegment		174		-48.1			335

Total		632,347		+12.7			561,031
Operating cost and expenses		520,456		+8.7			478,688

Operating Profit		111,891		+35.9			82,343
Income before income taxes		113,025		+35.5			83,414

As for the Imaging Business Unit, sales of the interchangeable-lens digital cameras, in particular mirrorless cameras like the EOS R6 Mark II, a full-frame mirrorless camera released last year, and the new entry-level EOS R50 and EOS R100 mirrorless cameras launched in the first half of this year, remained solid. Sales of RF-series interchangeable-lenses remained solid as well. Sales of network cameras increased thanks to solid demand and enhanced sales activity against the background of diversifying applications. These factors resulted in a total of ¥632.3 billion, a year-on-year increase of 12.7%, while income before income taxes totaled ¥113.0 billion, a year-on-year increase of 35.5% due to the steady sales of network cameras as well as other highly competitive products and non-recurring expenses incurred to close a certain production facility in the previous year.

(2)

Operating Results and Financial Conditions (continued)


Medical Business Unit	Millions of yen (except percentage data)
	Nine months ended September 30, 2023		Change			Nine months ended September 30, 2022
Net sales:
External customers total		388,672		+7.3	%		362,240
Intersegment		904		+243.7			263

Total		389,576		+7.5			362,503
Operating cost and expenses		371,641		+8.8			341,449

Operating Profit		17,935		-14.8			21,054
Income before income taxes		17,927		-17.1			21,621

As for the Medical Business Unit, sales remained firm mainly in Japan and Europe. As a result, sales of the Medical Business Unit increased by 7.5% compared with the same period of the previous year to ¥389.6 billion. Income before income taxes decreased by 17.1% compared with the same period of the previous year to ¥17.9 billion mainly due to active investment to augment its workforce in order to enhance its sales capacity.


Industrial Business Unit	Millions of yen (except percentage data)
	Nine months ended September 30, 2023		Change			Nine months ended September 30, 2022
Net sales:
Optical equipment		143,676		-12.8	%		164,813
Industrial equipment		63,724		+1.1			63,019

External customers total		207,400		-9.0			227,832
Intersegment		8,365		+40.7			5,947

Total		215,765		-7.7			233,779
Operating cost and expenses		180,495		-4.6			189,126

Operating Profit		35,270		-21.0			44,653
Income before income taxes		35,678		-21.9			45,700

As for the Industrial Business Unit, sales of semiconductor lithography equipment remained strong, particularly for those used in the production of power devices. As a result, unit sales were on par with the same period of the previous year, which saw a significant increase in unit sales. For FPD lithography equipment, unit sales decreased compared with the previous year due to reduced investments by panel manufacturers as the panel market worsened. As a result, net sales of the Industrial Business Unit decreased by 7.7% compared with the same period of the previous year to ¥215.8 billion, and income before income taxes decreased by 21.9% compared with the same period of the previous year to ¥35.7 billion.

(2)

Operating Results and Financial Conditions (continued)

Financial Conditions


	Millions of yen (except percentage data)
	September 30, 2023			Change		December 31, 2022
Total assets		5,619,004			+523,474		5,095,530
Total liabilities		2,083,500			+337,000		1,746,500
Canon Inc. shareholders’ equity		3,291,205			+178,100		3,113,105
Noncontrolling interests		244,299			+8,374		235,925
Total equity		3,535,504			+186,474		3,349,030
Total liabilities and equity		5,619,004			+523,474		5,095,530
Canon Inc. shareholders’ equity as a percentage of total assets		58.6	%		-2.5		61.1	%

Total assets increased by ¥523.5 billion to ¥5,619.0 billion at September 30, 2023 compared to the end of the previous year, mainly due to the increase of cash and cash equivalents and inventories, combined with the impact of the depreciation of the yen. Inventories increased due to customer’s requests for delayed delivery and preparations for sales expansion in the next quarter. Total liabilities increased by ¥337.0 billion to ¥2,083.5 billion at September 30, 2023 compared to the end of the previous year, mainly due to the increase of short-term loans. The balance of total equity increased by ¥186.5 billion to ¥3,535.5 billion at September 30, 2023 compared to the end of the previous year, mainly due to the accumulation of net income attributable to Canon Inc. and the increase of accumulated other comprehensive income resulting from the depreciation of the yen although the payment of dividends to Canon Inc. shareholders and the repurchases of treasury stock decreased total equity. As a result, Canon Inc. shareholders’ equity as a percentage of total assets declined by 2.5 points to 58.6% compared to the end of the previous year. However, Canon continuously has achieved its goal of developing a solid financial base, measured as equity as a percentage of total assets.

Cash Flows


	Millions of yen
	Nine months ended September 30, 2023			Change		Nine months ended September 30, 2022
Net cash provided by operating activities		269,885			+81,404		188,481
Net cash used in investing activities		(204,021	)		-71,671		(132,350	)
Free cash flow		65,864			+9,733		56,131
Net cash provided by (used in) financial activities		65,080			+94,662		(29,582	)
Effect of exchange rate changes on cash and cash equivalents		27,700			-9,654		37,354
Net change in cash and cash equivalents		158,644			+94,741		63,903
Cash and cash equivalents at beginning of period		362,101			-39,294		401,395
Cash and cash equivalents at end of period		520,745			+55,447		465,298

During the first nine months of 2023, cash flow from operating activities increased by ¥81.4 billion year-on-year to ¥269.9 billion, mainly due to an increase in profit and efforts to limit the rise in inventory. Cash flow used in investing activities increased by ¥71.7 billion to ¥204.0 billion from the same period of the previous year due to an acquisition of Minaris Medical Co., Ltd., which has in vitro diagnostics medicine and automated analyzer business, as well as continued capital investments to improve efficiency and productivity. Canon defines “free cash flows” as cash flows from operating activities less cash flows from investing activities. Free cash flow increased by ¥9.7 billion compared with the previous year to ¥65.9 billion.

(2)

Operating Results and Financial Conditions (continued)

Cash flow from financing activities increased by ¥94.7 billion year-on-year to ¥65.1 billion due to an increase in proceeds received from short-term loans despite dividends paid increased by ¥11.5 billion from the same period of last year due to an increase in last year’s year-end dividend and this year’s interim dividend, as well as repurchases of ¥100.0 billion of treasury stock.

Owing to these factors, as well as the impact from foreign currency exchange adjustments, cash and cash equivalents increased by ¥158.6 billion to ¥520.7 billion from the end of the previous year.

~~Outlook~~9

~~There~~(2) ~~are~~Operating ~~still~~Results ~~some global economic uncertainties for the fourth quarter onward due to various geopolitical risks, tightening monetary policies across the world in response to inflation,~~ and ~~the~~Financial ~~risk~~Conditions of an economic slowdown caused by China’s market stagnation and other factors. However, Canon expects the global economy to continue down the track of recovery due to the strong employment situation and improved personal income, particularly in the United States and Japan. (continued)

~~In the market in which Canon operates, demand for office MFDs as key office devices is expected to remain firm, thanks to strong demand for high~~Non-~~productivity~~GAAP ~~printing~~Financial asMeasures well as their reputation. For inkjet printers, the demand for refillable ink tank models is expected to remain solid even though the market of inkjet printers is expected to shrink due to decreased working from home demand. For laser printers, demand is expected to remain weak due to the curbing of corporate investments despite new demand generated from decentralization of offices. As for digital interchangeable-lens cameras, demand is expected to remain solid during the year-end selling season in the fourth quarter. For network cameras, market growth is expected to remain stable due to the continued expansion of security applications and growing demand for applications to enhance productivity and quality at manufacturing and sales sites. In addition, the needs for downsizing and remote control in professional video production equipment are expected to continue, supported by continued growth in demand for online video content. As for the medical equipment market, demand is expected to remain solid despite ongoing uncertainty due to increasing interest rates and delayed purchase of equipment by medical institutions caused by increasing interest rates and labor cost. Canon will steadily execute equipment installation for placed orders. For semiconductor lithography equipment, despite concerns that the temporary decline in some memory device market will continue, demand of equipment for such products as power devices is expected to remain solid. Furthermore, robust demand is expected to continue as semiconductor factories are being constructed in various countries and regions from the viewpoint of economic security. For FPD lithography equipment, the harsh market condition is expected to continue due to ongoing delayed investments by panel manufacturers amid market sluggishness.

~~Regarding currency exchange rates on which~~ Canon ~~bases~~has reported its ~~performance~~financial ~~outlook~~results ~~for~~in ~~the~~accordance ~~fourth~~with ~~quarter onwards, Canon anticipates exchange rates of ¥145 to the~~ U.S. ~~dollar and ¥155 to the euro, representing depreciation of approximately ¥8 against the U~~GAAP.S. ~~dollar~~In ~~and depreciation of approximately ¥13 against the euro from the previous year. For the U.S. dollar and the euro~~addition, Canon ~~expects the~~has ~~yen~~discussed toits ~~depreciate~~results byusing ¥5“free ~~and~~cash flow,” ~~depreciate~~which byis ¥6a ~~from~~non-GAAP ~~its previous forecast, respectively~~measure.

~~Upon taking into consideration the currency exchange rates and the current market conditions,~~ Canon ~~revised~~believes ~~its~~this ~~forecast to full-year consolidated net sales of ¥4~~measure,~~220.0 billion,~~ ~~a year-on-year increase of 4.7%, due to the market slowdown in China,~~ which ~~mainly~~takes ~~affects its laser printer business, as well as postponement of installation of semiconductor lithography equipment and FPD lithography equipment for customer reasons. On the other hand, taking~~ into consideration ~~the decrease in the cost of logistics and components, as well as the gains from depreciation of the yen, Canon maintained~~ its ~~previous outlook, expecting~~ operating ~~profit~~and ofinvesting ~~¥400.0 billion~~activities, ais ~~year-on-year~~beneficial ~~increase~~to ofan ~~13.2%;~~investor’s ~~income~~understanding ~~before income taxes~~ of ~~¥425.0 billion,~~its acurrent ~~year-on-year~~liquidity ~~increase~~and ofthe ~~20.6%;~~alternative ~~net income~~uses ~~attributable~~in tofinancing ~~Canon Inc~~activities. ~~of ¥292.0 billion, a year-on-year increase of 19.7%, recording highs since 2009.~~

A reconciliation of this non- ~~4 -~~GAAP financial measure and the most directly comparable measure calculated and presented in accordance with U.S. GAAP is set forth on the following table.

Consolidated Outlook


	Billions of yen
	Nine months ended September 30, 2023
Net cash provided by operating activities		269.9
Net cash used in investing activities		(204.0	)

Free cash flow		65.9

Fiscal year	Millions of yen
	Year ending December 31, 2023				Change			Year endedDecember 31, 2022		Change (%)
	Previous Outlook (A)		Revised Outlook (B)		(B - A)			Results (C)		(B - C) / C
Net sales		4,363,000		4,220,000		(143,000	)		4,031,414		+4.7%
Operating profit		400,000		400,000		-			353,399		+13.2%
Income before income taxes		425,000		425,000		-			352,440		+20.6%
Net income attributable to Canon Inc.		292,000		292,000		-			243,961		+19.7%

~~This~~(2) ~~document~~Operating ~~contains~~Results ~~forward-looking statements with respect to future results, performance~~ and ~~achievements~~ ~~that~~Financial ~~are~~Conditions 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. (continued)

~~- 5 -~~Accounting Estimates and Assumptions

No material changes with respect to accounting estimates and assumptions have occurred during the nine months ended September 30, 2023.

Prioritized Management Issues to be Addressed

No material changes or issues with respect to prioritized business operations and finances have occurred during the nine months ended September 30, 2023.

Research and Development Expenses

Canon’s research and development expenses for the nine months ended September 30, 2023 totaled ¥246.8 billion.

Property, Plant and Equipment

(1)

Major Property, Plant and Equipment

There were no significant changes to the status of existing major property, plant and equipment during the nine months ended September 30, 2023.

(2)

Prospect of Capital Investment in the first nine months of Fiscal 2023

The new construction of property, plant and equipment, which had been in progress as of December 31, 2022 and was completed during the nine months ended of 2023, is as follows:

Name and location

Principal activities and products manufactured

Date of
completion

Canon Inc.,

Hiratsuka Plant

Kanagawa, Japan

New production base (Others and Corporate)

February

2023

There were no significant plans relevant to the retirement of property, plant and equipment.

(3)

Significant Business Contracts Entered into in the Third Quarter of Fiscal 2023

No material contracts were entered into during the three months ended September 30, 2023.

III.

Company Information

(1)

Shares

Total number of authorized shares is 3,000,000,000 shares. The common stock of Canon is listed on the Tokyo, Nagoya, Fukuoka, and Sapporo Stock Exchanges. Total issued shares are as follows:


	As of September 30, 2023
Total number of issued shares		1,333,763,464

Stock Acquisition Rights

(1)	Stock options

Not applicable.

(2) Other stock acquisition rights

Not applicable.

Exercise status of bonds with share subscription rights containing an adjustable exercise price clause

Not applicable.

Change in Issued Shares, Common Stock and Additional Paid in Capital


	Change during this quarter		As of September 30, 2023
Issued Shares (Number of shares)		—		1,333,763,464
Common Stock (Millions of yen)		—		174,762
Additional Paid-in Capital (Millions of yen)		—		306,288

Major Shareholders

Not applicable.

(1)

Shares (continued)

Voting Rights

The information provided below is based on the latest register of shareholders as of June 30, 2023.


	As of June 30, 2023
Classification	Number of shares (shares)		Number of voting rights (units)
Shares without voting rights		—		—
Shares with restricted voting rights (Treasury stock, etc.)		—		—
Shares with restricted voting rights (Others)		—		—
Shares with full voting rights (Treasury stock, etc.)		334,635,400		—
Shares with full voting rights (Others)		997,785,500		9,977,855
Fractional unit shares (Note)		1,342,564		—
Total number of issued shares		1,333,763,464		—
Total voting rights held by all shareholders		—		9,977,855

Note:

In “Fractional unit shares” under “Number of shares,” 75 shares of treasury stock are included.

Treasury Stock, etc.


	Number of shares owned (Number of shares)		Number of shares owned / Number of shares issued
Canon Inc.		334,635,400		25.09	%

Total		334,635,400		25.09	%

(2)

Directors and Executive Officers

There were no changes in Directors and Audit & Supervisory Board Members between the filing date of the Annual Securities Report (Yukashoken Houkokusho) for the fiscal year ended December 31, 2022 and the end of this quarter.

Changes in functions of director are below:


Toshizo Tanaka		(Executive Vice President & CFO: Group Executive of Public Affairs Headquarters, Group Executive of Facilities Management Headquarters, Senior General Manager of Corporate Governance Center)

There were no changes in members of executive officers between the filing date of the Annual Securities Report (Yukashoken Houkokusho) for the fiscal year ended December 31, 2022 and the end of this quarter.

Changes in functions of executive officers are below:


Takashi Takeya		(Managing Executive Officer: Senior General Manager of Global Logistics Management Center, Senior General Manager of Economic Security Office)

Hideki Sanatake		(Executive Officer: Group Executive of Corporate Intellectual Property and Legal Headquarters)

Katsuhito Sakurai		(Executive Officer: Unit Executive of Device Development Unit)

The Number of Directors and Executive Officers by Gender

Males: 48, Females: 2 (Females account for 4.0% of the total.)

The total number consisted of 10 Directors or Corporate Auditors and 40 Executive Officers as of September 30, 2023.

IV.

Financial Statements (Unaudited)

(1)

Consolidated Financial Statements

Index of Consolidated Financial Statements of Canon Inc. and Subsidiaries:


	Page
Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022		16
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for the nine months ended September 30, 2023 and 2022		18
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for the three months ended September 30, 2023 and 2022		20
Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022		22
Notes to Consolidated Financial Statements		23

CANON INC. AND SUBSIDIARIES

~~CONSOLIDATED~~Consolidated Balance Sheets (Unaudited)

II. Financial Statements


	Millions of yen
	September 30, 2023			December 31, 2022
Assets
Current assets:
Cash and cash equivalents (Notes 1, 18 and 19)		520,745			362,101
Short-term investments (Notes 2 and 18)		4,321			10,905
Trade receivables (Note 3)		622,081			636,803
Inventories (Note 4)		913,872			808,312
Current lease receivables (Note 6)		159,947			137,038
Prepaid expenses and other current assets (Notes 12, 14 and 18)		256,424			215,990
Allowance for credit losses (Notes 3 and 6)		(16,044	)		(15,235	)

Total current assets		2,461,346			2,155,914

Noncurrent receivables (Note 16)		12,291			12,996
Investments (Notes 2 and 18)		74,264			65,128
Property, plant and equipment, net (Note 5)		1,101,574			1,035,065
Operating lease right-of-use assets (Note 15)		123,751			117,843
Intangible assets, net		271,331			280,995
Goodwill (Note 7)		1,040,689			972,626
Noncurrent lease receivables (Note 6)		323,198			279,332
Other assets		214,443			179,297
Allowance for credit losses (Note 6)		(3,883	)		(3,666	)

Total assets		5,619,004			5,095,530

1.16 ~~CONSOLIDATED BALANCE SHEETS~~

	Millions of yen
	As of September 30, 2023			As of December 31, 2022			Change
ASSETS
Current assets		2,461,346			2,155,914			305,432
Cash and cash equivalents		520,745			362,101			158,644
Short-term investments		4,321			10,905			(6,584	)
Trade receivables		622,081			636,803			(14,722	)
Inventories		913,872			808,312			105,560
Current lease receivables		159,947			137,038			22,909
Prepaid expenses and other current assets		256,424			215,990			40,434
Allowance for credit losses		(16,044	)		(15,235	)		(809	)
Non-current assets		3,157,658			2,939,616			218,042
Noncurrent receivables		12,291			12,996			(705	)
Investments		74,264			65,128			9,136
Property, plant and equipment, net		1,101,574			1,035,065			66,509
Operating lease right-of-use assets		123,751			117,843			5,908
Intangible assets, net		271,331			280,995			(9,664	)
Goodwill		1,040,689			972,626			68,063
Noncurrent lease receivables		323,198			279,332			43,866
Other assets		214,443			179,297			35,146
Allowance for credit losses		(3,883	)		(3,666	)		(217	)
Total assets		5,619,004			5,095,530			523,474
LIABILITIES AND EQUITY
Current liabilities		1,725,316			1,365,353			359,963
Short-term loans and current portion of long-term debt		607,573			296,384			311,189
Short-term loans related to financial services		40,200			41,200			(1,000	)
Other short-term loans and current portion of long-term debt		567,373			255,184			312,189
Trade payables		344,065			355,930			(11,865	)
Accrued income taxes		45,251			48,414			(3,163	)
Accrued expenses		393,784			365,847			27,937
Current operating lease liabilities		36,489			33,281			3,208
Other current liabilities		298,154			265,497			32,657
Non-Current liabilities		358,184			381,147			(22,963	)
Long-term debt, excluding current portion of long-term debt		2,920			2,417			503
Accrued pension and severance cost		169,745			189,215			(19,470	)
Noncurrent operating lease liabilities		88,899			85,331			3,568
Other noncurrent liabilities		96,620			104,184			(7,564	)
Total liabilities		2,083,500			1,746,500			337,000
Canon Inc. shareholders’ equity		3,291,205			3,113,105			178,100
Common stock		174,762			174,762			-
Additional paid-in capital		404,934			404,838			96
Retained earnings		3,782,280			3,729,244			53,036
Legal reserve		61,554			64,509			(2,955	)
Other retained earnings		3,720,726			3,664,735			55,991
Accumulated other comprehensive income (loss)		287,503			62,623			224,880
Treasury stock, at cost		(1,358,274	)		(1,258,362	)		(99,912	)
Noncontrolling interests		244,299			235,925			8,374
Total equity		3,535,504			3,349,030			186,474
Total liabilities and equity		5,619,004			5,095,530			523,474
	Millions of yen
	As ofSeptember 30, 2023			As ofDecember 31, 2022
Notes:
1. Accumulated depreciation		3,107,984			2,962,228
2. Accumulated other comprehensive income (loss):
Foreign currency translation adjustments		413,202			191,287
Net unrealized gains and losses on securities		26			(34	)
Net gains and losses on derivative instruments		(1,704	)		(428	)
Pension liability adjustments		(124,021	)		(128,202	)

- 6 -

CANON INC. AND SUBSIDIARIES

~~CONSOLIDATED~~Consolidated Balance Sheets (Unaudited) (continued)

2. CONSOLIDATED STATEMENTS OF INCOME AND


	Millions of yen
	September 30, 2023			December 31, 2022
Liabilities and equity
Current liabilities:
Short-term loans and current portion of long-term debt (Notes 9 and 17)		607,573			296,384
Short-term loans related to financial services		40,200			41,200
Other short-term loans and current portion of long-term debt		567,373			255,184
Trade payables (Note 8)		344,065			355,930
Accrued income taxes		45,251			48,414
Accrued expenses (Note 16)		393,784			365,847
Current operating lease liabilities (Note 15)		36,489			33,281
Other current liabilities (Notes 12, 14 and 18)		298,154			265,497

Total current liabilities		1,725,316			1,365,353

Long-term debt, excluding current portion of long-term debt (Note 17)		2,920			2,417
Accrued pension and severance cost		169,745			189,215
Noncurrent operating lease liabilities (Note 15)		88,899			85,331
Other noncurrent liabilities (Note 12)		96,620			104,184

Total liabilities		2,083,500			1,746,500

Equity:
Canon Inc. shareholders’ equity (Note 10):
Common stock		174,762			174,762
(Number of authorized shares)		(3,000,000,000	)		(3,000,000,000	)
(Number of issued shares)		(1,333,763,464	)		(1,333,763,464	)
Additional paid-in capital		404,934			404,838
Legal reserve		61,554			64,509
Retained earnings		3,720,726			3,664,735
Accumulated other comprehensive income (loss) (Note 11)		287,503			62,623
Treasury stock, at cost		(1,358,274	)		(1,258,362	)
(Number of shares)		(345,963,587	)		(318,250,096	)

Total Canon Inc. shareholders’ equity		3,291,205			3,113,105
Noncontrolling interests (Note 10)		244,299			235,925

Total equity (Note 10)		3,535,504			3,349,030

Total liabilities and equity		5,619,004			5,095,530

~~CONSOLIDATED~~17 ~~STATEMENTS OF COMPREHENSIVE INCOME~~

Consolidated statements of income

Results for the third quarter	Millions of yen
	Three months ended September 30, 2023			Three months ended September 30, 2022			Change(%)
Net sales		1,025,247			996,090			+	2.9
Cost of sales		543,197			545,057
Gross profit		482,050			451,033			+	6.9
Operating expenses:
Selling, general and administrative expenses		315,099			294,576
Research and development expenses		84,327			75,017
		399,426			369,593
Operating profit		82,624			81,440			+	1.5
Other income (deductions):
Interest and dividend income		3,550			1,542
Interest expense		(659	)		(207	)
Other, net		1,805			(3,699	)
		4,696			(2,364	)
Income before income taxes		87,320			79,076			+	10.4
Income taxes		21,379			21,827
Consolidated net income		65,941			57,249
Less: Net income attributable to noncontrolling interests		3,807			3,131
Net income attributable to Canon Inc.		62,134			54,118			+	14.8
Results for the nine months	Millions of yen
	Nine months ended September 30, 2023			Nine monthsended September 30, 2022			Change(%)
Net sales		3,017,254			2,874,239			+	5.0
Cost of sales		1,596,423			1,564,776
Gross profit		1,420,831			1,309,463			+	8.5
Operating expenses:
Selling, general and administrative expenses		914,628			832,335
Research and development expenses		246,830			221,073
		1,161,458			1,053,408
Operating profit		259,373			256,055			+	1.3
Other income (deductions):
Interest and dividend income		9,103			3,167
Interest expense		(1,474	)		(737	)
Other, net		8,980			(26,516	)
		16,609			(24,086	)
Income before income taxes		275,982			231,969			+	19.0
Income taxes		77,951			61,962
Consolidated net income		198,031			170,007
Less: Net income attributable to noncontrolling interests		14,084			10,889
Net income attributable to Canon Inc.		183,947			159,118			+	15.6

- 7 -

CANON INC. AND SUBSIDIARIES

~~CONSOLIDATED~~Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

Consolidated ~~statements~~ Statements of ~~comprehensive~~Income ~~income~~

Results for the third quarter	Millions of yen
	Millions of yen
	Three months ended September 30, 2023			Three months ended September 30, 2022			Change(%)
	Nine months endedSeptember 30, 2023			Nine months endedSeptember 30, 2022
Consolidated net income		65,941			57,249			+	15.2
Net sales (Notes 6, 11, 12 and 14):
Other comprehensive income (loss), net of tax
Products and Equipment		2,382,158			2,290,449
Foreign currency translation adjustments		40,004			42,987
Services		635,096			583,790
Net unrealized gains and losses on securities		21			(21	)
		3,017,254			2,874,239
Net gains and losses on derivative instruments		(752	)		617
Cost of sales (Notes 15 and 19):
Pension liability adjustments		842			4,254
Products and Equipment		1,292,731			1,290,688
		40,115			47,837
Services		303,692			274,088
Comprehensive income (loss)		106,056			105,086			+	0.9
		1,596,423			1,564,776
Less: Comprehensive income (loss) attributable to noncontrolling interests		4,248			3,965
Gross profit		1,420,831			1,309,463
Comprehensive income (loss) attributable to Canon Inc.		101,808			101,121			+	0.7
Operating expenses:
Results for the nine months	Millions of yen
Selling, general and administrative expenses (Notes 11, 15 and 19)		914,628			832,335
	Nine months ended September 30, 2023			Nine monthsended September 30, 2022			Change(%)
Research and development expenses		246,830			221,073
Consolidated net income		198,031			170,007			+	16.5
		1,161,458			1,053,408
Other comprehensive income (loss), net of tax
Operating profit		259,373			256,055
Foreign currency translation adjustments		223,928			309,018
Other income (deductions):
Net unrealized gains and losses on securities		60			(21	)
Interest and dividend income		9,103			3,167
Net gains and losses on derivative instruments		(1,214	)		(1,867	)
Interest expense		(1,474	)		(737	)
Pension liability adjustments		3,993			3,519
Other, net (Notes 2, 11, 14 and 19)		8,980			(26,516	)
		226,767			310,649
		16,609			(24,086	)
Comprehensive income (loss)		424,798			480,656			-	11.6
Income before income taxes		275,982			231,969
Less: Comprehensive income (loss) attributable to noncontrolling interests		15,971			12,757
Income taxes		77,951			61,962
Comprehensive income (loss) attributable to Canon Inc.		408,827			467,899			-	12.6
Consolidated net income		198,031			170,007
Less: Net income attributable to noncontrolling interests		14,084			10,889
Net income attributable to Canon Inc.		183,947			159,118
	Yen			Yen
Net income attributable to Canon Inc. shareholders per share (Note 13):
Basic		182.98			153.70
Diluted		182.91			153.65

~~- 8 -~~18

CANON INC. AND SUBSIDIARIES

~~CONSOLIDATED~~Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (continued)

3.Consolidated ~~DETAILS~~Statements OFof ~~SALES~~Comprehensive Income

Results for the third quarter


	Millions of yen
	Nine months ended September 30, 2023			Nine months ended September 30, 2022
Consolidated net income		198,031			170,007
Other comprehensive income (loss), net of tax (Note 11):
Foreign currency translation adjustments		223,928			309,018
Net unrealized gains and losses on securities		60			(21	)
Net gains and losses on derivative instruments		(1,214	)		(1,867	)
Pension liability adjustments		3,993			3,519

		226,767			310,649

Comprehensive income (loss) (Note 10)		424,798			480,656
Less: Comprehensive income attributable to noncontrolling interests		15,971			12,757

Comprehensive income (loss) attributable to Canon Inc.		408,827			467,899

	Millions of yen
Sales by business unit	Three months endedSeptember 30, 2023			Three months endedSeptember 30, 2022			Change(%)
Printing		570,360			554,778			+	2.8
Imaging		220,686			202,933			+	8.7
Medical		132,406			126,074			+	5.0
Industrial		78,849			87,037			-	9.4
Others and Corporate		44,744			53,790			-	16.8
Eliminations		(21,798	)		(28,522	)			-
Total		1,025,247			996,090			+	2.9
	Millions of yen
Sales by region	Three months endedSeptember 30, 2023			Three months endedSeptember 30, 2022			Change(%)
Japan		213,428			201,091			+	6.1
Overseas:
Americas		328,008			311,553			+	5.3
Europe		270,461			251,981			+	7.3
Asia and Oceania		213,350			231,465			-	7.8
		811,819			794,999			+	2.1
Total		1,025,247			996,090			+	2.9
Results for the nine months
	Millions of yen
Sales by business unit	Nine months ended September 30, 2023			Nine months endedSeptember 30, 2022			Change(%)
Printing		1,703,444			1,632,443			+	4.3
Imaging		632,347			561,031			+	12.7
Medical		389,576			362,503			+	7.5
Industrial		215,765			233,779			-	7.7
Others and Corporate		141,359			157,102			-	10.0
Eliminations		(65,237	)		(72,619	)			-
Total		3,017,254			2,874,239			+	5.0
	Millions of yen
Sales by region	Nine months ended September 30, 2023			Nine months endedSeptember 30, 2022			Change(%)
Japan		652,598			627,576			+	4.0
Overseas:
Americas		944,583			893,993			+	5.7
Europe		790,223			720,649			+	9.7
Asia and Oceania		629,850			632,021			-	0.3
		2,364,656			2,246,663			+	5.3
Total		3,017,254			2,874,239			+	5.0

* Based on the realignment of Canon’s internal management structure, from the fourth quarter ended December 31, 2022, Canon has changed the name and structure of segments from Industrial and Others Business Unit and Corporate and eliminations to Industrial Business Unit, Others and Corporate and Eliminations. Also, a certain business, which was previously included in Others, has been presented within the Printing Business Unit from the beginning of the first quarter of 2023. Operating results for the three and nine months ended September 30, 2022 have also been reclassified.

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

- 9 -

CANON INC. AND SUBSIDIARIES

~~CONSOLIDATED~~Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (continued)

4.Consolidated ~~CONSOLIDATED~~Statements ~~STATEMENTS~~of ~~OF CASH~~Income ~~FLOWS~~

	Millions of yen
	Nine months endedSeptember 30, 2023			Nine months endedSeptember 30, 2022
	Three months endedSeptember 30, 2023			Three months endedSeptember 30, 2022
Cash flows from operating activities:
Net sales (Notes 6, 11 12 and 14):
Consolidated net income		198,031			170,007
Products and Equipment		807,581			793,367
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Services		217,666			202,723
Depreciation and amortization		174,112			166,225
		1,025,247			996,090
Loss (gain) on disposal of fixed assets		3,059			(9,549	)
Cost of sales (Notes 15 and 19):
Deferred income taxes		(10,060	)		(6,081	)
Products and Equipment		437,241			450,569
Decrease in trade receivables		61,379			8,399
Services		105,956			94,488
Increase in inventories		(41,126	)		(153,886	)
		543,197			545,057
Increase in lease receivables		(19,082	)		(11,070	)
Gross profit		482,050			451,033
(Decrease) increase in trade payables		(26,576	)		75,275
Operating expenses:
Decrease in accrued income taxes		(4,964	)		(12,740	)
Selling, general and administrative expenses (Notes 11, 15 and 19)		315,099			294,576
Increase in accrued expenses		1,072			20,144
Research and development expenses		84,327			75,017
Decrease in accrued pension and severance cost		(22,926	)		(29,442	)
		399,426			369,593
Contribution of cash to retirement benefit trust		(18,000	)		-
Operating profit		82,624			81,440
Other, net		(25,034	)		(28,801	)
Other income (deductions):
Net cash provided by operating activities		269,885			188,481
Interest and dividend income		3,550			1,542
Cash flows from investing activities:
Interest expense		(659	)		(207	)
Purchases of fixed assets		(156,948	)		(132,251	)
Other, net (Notes 2, 11, 14 and 19)		1,805			(3,699	)
Proceeds from sale of fixed assets		2,533			14,316
		4,696			(2,364	)
Proceeds from maturity of held to maturity securities		-			2,151
Income before income taxes		87,320			79,076
Purchases of securities		(6,685	)		(20,053	)
Income taxes		21,379			21,827
Proceeds from sale and maturity of securities		13,181			6,518
Consolidated net income		65,941			57,249
Acquisitions of businesses, net of cash acquired		(56,219	)		(5,890	)
Less: Net income attributable to noncontrolling interests		3,807			3,131
Other, net		117			2,859
Net income attributable to Canon Inc.		62,134			54,118
Net cash used in investing activities		(204,021	)		(132,350	)
	Yen			Yen
Cash flows from financing activities:
Net income attributable to Canon Inc. shareholders per share (Note 13):
Repayments of long-term debt		(1,456	)		(1,546	)
Basic		62.65			52.90
Decrease in short-term loans related to financial services, net		(1,000	)		(800	)
Diluted		62.62			52.88
Increase in other short-term loans, net		306,280			197,840
Dividends paid		(130,870	)		(119,326	)
Repurchases and reissuance of treasury stock, net		(100,014	)		(100,012	)
Other, net		(7,860	)		(5,738	)
Net cash provided by (used in) financing activities		65,080			(29,582	)
Effect of exchange rate changes on cash and cash equivalents		27,700			37,354
Net change in cash and cash equivalents		158,644			63,903
Cash and cash equivalents at beginning of period		362,101			401,395
Cash and cash equivalents at end of period		520,745			465,298

*20 ~~Certain items in the consolidated statements of cash flows for the nine months ended September 30, 2022, have been reclassified to conform to the current year’s presentation.~~

- 10 -

CANON INC. AND SUBSIDIARIES

~~CONSOLIDATED~~Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (continued)

5.Consolidated ~~NOTE~~Statements ~~FOR~~of ~~GOING~~Comprehensive ~~CONCERN ASSUMPTION~~Income

Not applicable.


	Millions of yen
	Three months ended September 30, 2023			Three months ended September 30, 2022
Consolidated net income		65,941			57,249
Other comprehensive income (loss), net of tax (Note 11):
Foreign currency translation adjustments		40,004			42,987
Net unrealized gains and losses on securities		21			(21	)
Net gains and losses on derivative instruments		(752	)		617
Pension liability adjustments		842			4,254

		40,115			47,837

Comprehensive income (loss) (Note 10)		106,056			105,086
Less: Comprehensive income attributable to noncontrolling interests		4,248			3,965

Comprehensive income (loss) attributable to Canon Inc.		101,808			101,121

6.21 ~~NOTE ON SIGNIFICANT CHANGES IN CANON INC. SHAREHOLDERS’ EQUITY~~

~~None~~CANON INC. AND SUBSIDIARIES

7.Consolidated ~~BASIS~~Statements OFof ~~PRESENTATION~~Cash ~~AND~~Flows ~~SIGNIFICANT~~(Unaudited) ~~ACCOUNTING POLICIES~~

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


	Millions of yen
	Nine months ended September 30, 2023			Nine months ended September 30, 2022
Cash flows from operating activities:
Consolidated net income		198,031			170,007
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization		174,112			166,225
Loss (gain) on disposal of fixed assets		3,059			(9,549	)
Deferred income taxes		(10,060	)		(6,081	)
Decrease in trade receivables		61,379			8,399
Increase in inventories		(41,126	)		(153,886	)
Increase in lease receivables (Note 6)		(19,082	)		(11,070	)
(Decrease) increase in trade payables		(26,576	)		75,275
Decrease in accrued income taxes		(4,964	)		(12,740	)
Increase in accrued expenses		1,072			20,144
Decrease in accrued pension and severance cost		(22,926	)		(29,442	)
Contribution of cash to retirement benefit trust		(18,000	)		—
Other, net (Note 15)		(25,034	)		(28,801	)

Net cash provided by operating activities		269,885			188,481

Cash flows from investing activities:
Purchases of fixed assets (Note 5)		(156,948	)		(132,251	)
Proceeds from sale of fixed assets (Note 5)		2,533			14,316
Proceeds from maturity of held to maturity securities		—			2,151
Purchases of securities		(6,685	)		(20,053	)
Proceeds from sale and maturity of securities		13,181			6,518
Acquisitions of businesses, net of cash acquired (Notes 7 and 19)		(56,219	)		(5,890	)
Other, net		117			2,859

Net cash used in investing activities		(204,021	)		(132,350	)

Cash flows from financing activities:
Repayments of long-term debt		(1,456	)		(1,546	)
Decrease in short-term loans related to financial services, net (Note 9)		(1,000	)		(800	)
Increase in other short-term loans, net (Note 9)		306,280			197,840
Dividends paid		(130,870	)		(119,326	)
Repurchases and reissuance of treasury stock, net		(100,014	)		(100,012	)
Other, net		(7,860	)		(5,738	)

Net cash provided by (used in) financing activities		65,080			(29,582	)

Effect of exchange rate changes on cash and cash equivalents		27,700			37,354

Net change in cash and cash equivalents		158,644			63,903
Cash and cash equivalents at beginning of period		362,101			401,395

Cash and cash equivalents at end of period		520,745			465,298

Supplemental disclosure for cash flow information:
Cash paid during the period for:
Interest		1,435			657
Income taxes		97,792			91,607

8.22 ~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~SUBSEQUENT EVENT~~CANON INC. AND SUBSIDIARIES

OnNotes October 2, 2023, Canon Marketing Japan Inc., a subsidiary of the Company, acquired 93.09% of the issued shares of Tokyo Nissan Computer System Co., Ltd. excluded treasury stock through a public cash tender offer for consideration of ¥10,249 million in order to ~~expand~~Consolidated ~~its~~Financial ITStatements ~~solution~~(Unaudited) business. Further information related to the accounting for this business combination has not been disclosed, because none of the activities required to complete the initial accounting for this acquisition have been completed as of the announcement date of the third quarter of 2023 consolidated results.

~~- 11 -~~(1) Basis of Presentation and Significant Accounting Policies

(a)

Basis of Presentation

The Company issued convertible debentures in the United States in May 1969 and established a program in which its American Depositary Receipts (ADRs) are traded in the U.S. over-the-counter market. Since then, under the U.S. Securities Act of 1933 and the U.S. Securities Exchange Act of 1934, as amended, the Company has prepared its annual consolidated financial statements in accordance with U.S. GAAP and filed them with the U.S. Securities and Exchange Commission on Form 20-F. The Company’s ADRs were listed on the NYSE in September 2000 after being quoted on NASDAQ from February 1972 to September 2000. On February 24, 2023, the Company filed Form 25 with the SEC in connection with the delisting from the NYSE. The delisting became effective on March 6, 2023. In the future, the Company plans to file an application for the termination of registration of its ADRs with the SEC when the requirements have been met.

Canon’s quarterly consolidated financial statements are prepared in accordance with the recognition and measurement criteria of U.S. GAAP. Certain footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.

Canon has reclassified certain items in the consolidated statements of cash flows for the nine months ended September 30, 2022 to conform to the current year’s presentation.

The number of consolidated subsidiaries and affiliated companies that were accounted for by the equity method as of September 30, 2023 and December 31, 2022 are summarized as follows:


	September 30, 2023		December 31, 2022
Consolidated subsidiaries		334		330
Affiliated companies		11		10

Total		345		340

(b)

Principles of Consolidation

The quarterly consolidated financial statements include the accounts of the Company, its majority owned subsidiaries and those variable interest entities where the Company or its consolidated subsidiaries are the primary beneficiaries. All intercompany balances and transactions have been eliminated.

(c)

Recent Accounting Guidance

Recently adopted accounting guidance

In October 2021, ASU No. 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”-ASC 805 (“Business Combinations”), was issued by the Financial Accounting Standards Board (“FASB”). The standard requires us to apply ASC 606 “Revenue from Contracts with Customers” to recognize and measure contract assets and contract liabilities acquired in a business combination. Canon adopted the standard from interim and annual reporting periods beginning January 1, 2023. The adoption of this standard did not have a material impact on its consolidated results of operations and financial condition.

In March 2022, ASU No. 2022-02, “Troubled Debt Restructurings and Vintage Disclosures”-ASC 326 (“Credit Losses”), was issued by FASB. The standard requires us to expand disclosures for certain loan re-financings and restructurings, and requires current-period gross write-offs by year of origination for financing receivables and net investments in leases. Canon adopted the standard from interim and annual reporting periods beginning January 1, 2023. The adoption of this standard did not have a material impact on its consolidated results of operations and financial condition.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

In September 2022, ASU No. 2022-04, “Disclosure of Supplier Finance Program Obligations”-ASC 405-50 (“Liabilities—Supplier Finance Programs”), was issued by FASB. The standard requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations. Canon adopted the standard, which requires disclosure of the key terms of the programs and information about obligations outstanding, from interim and annual reporting periods beginning January 1, 2023. The standard’s requirement to disclose a rollforward of obligations outstanding is effective for annual reporting periods beginning after December 15, 2023. The adoption of this standard did not have a material impact on its consolidated results of operations and financial condition. For further information, please refer to Note 8.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(2)	Investments

The cost, gross unrealized holding gains, gross unrealized holding losses and fair value for available-for-sale debt securities included in short-term investments and investments by major security type at September 30, 2023 and December 31, 2022 as follows:


	Millions of yen
	September 30, 2023
	Cost		Gross unrealized holding gains		Gross unrealized holding losses		Fair value
Current:
Corporate bonds		1,353		3		—		1,356

Noncurrent:
Corporate bonds		5,427		37		4		5,460

		6,780		40		4		6,816


	Millions of yen
	December 31, 2022
	Cost		Gross unrealized holding gains		Gross unrealized holding losses		Fair value
Current:
Corporate bonds		9,277		35		11		9,301

Noncurrent:
Corporate bonds		4,850		—		65		4,785

		14,127		35		76		14,086

Maturities of available-for-sale debt securities included in short-term investments and investments in the accompanying consolidated balance sheets at September 30, 2023 are as follows:


	Millions of yen
	Fair value
Due within one year		1,356
Due after one year through five years		5,460

Total		6,816

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(2)	Investments (continued)

The unrealized and realized gains and losses related to equity securities for the nine months and three months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Nine months ended September 30, 2023			Nine months ended September 30, 2022
Net gains (losses) recognized during the period on equity securities		6,331			(6,451	)
Less: Net gains (losses) recognized during the period on equity securities sold during the period		152			61

Unrealized gains (losses) recognized during the period on equity securities still held at September 30		6,179			(6,512	)


	Millions of yen
	Three months ended September 30, 2023			Three months ended September 30, 2022
Net gains (losses) recognized during the period on equity securities		(2,024	)		(1,219	)
Less: Net gains (losses) recognized during the period on equity securities sold during the period		128			83

Unrealized gains (losses) recognized during the period on equity securities still held at September 30		(2,152	)		(1,302	)

The carrying amount of non-marketable equity securities without readily determinable fair value totaled ¥10,437 million and ¥6,808 million at September 30, 2023 and December 31, 2022, respectively. The impairment or other adjustments resulting from observable price changes recorded during the nine months ended September 30, 2023 and 2022 were not material.

Time deposits with original maturities of more than three months are ¥2,965 million and ¥1,604 million at September 30, 2023 and December 31, 2022, respectively, and are included in short-term investments in the accompanying consolidated balance sheets.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(3)	Trade Receivables

Trade receivables are summarized as follows:


	Millions of yen
	September 30, 2023			December 31, 2022
Notes		34,899			30,535
Accounts		587,182			606,268

Trade receivables		622,081			636,803
Allowance for credit losses		(13,991	)		(13,305	)

		608,090			623,498

(4)	Inventories

Inventories are summarized as follows:


	Millions of yen
	September 30, 2023		December 31, 2022
Finished goods		555,974		486,826
Work in process		279,689		253,026
Raw materials		78,209		68,460

		913,872		808,312

(5)	Property, Plant and Equipment, net

Property, plant and equipment are stated at cost less accumulated depreciation and are summarized as follows:


	Millions of yen
	September 30, 2023			December 31, 2022
Land		284,116			275,261
Buildings		1,856,128			1,760,058
Machinery and equipment		2,007,527			1,893,745
Construction in progress		53,292			60,914
Finance lease right-of-use assets		8,495			7,315

Cost		4,209,558			3,997,293
Less: accumulated depreciation		(3,107,984	)		(2,962,228	)

Property, plant and equipment, net		1,101,574			1,035,065

Fixed assets presented in the consolidated statements of cash flows includes property, plant and equipment and intangible assets.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(6)	Lessor Accounting

Lease income is included in products and equipment sales in the accompanying consolidated statements of income. Supplemental income statement information is as follows:


	Millions of yen
	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Lease income – sales-type and direct financing leases
Revenue at lease commencement		112,468		81,902
Interest income on lease receivables		19,240		15,222

Sales-type and direct financing leases income total		131,708		97,124

Lease income – operating leases		29,802		25,199
Variable lease income		4,196		3,861

Total lease income		165,706		126,184


	Millions of yen
	Three months ended September 30, 2023		Three months ended September 30, 2022
Lease income – sales-type and direct financing leases
Revenue at lease commencement		36,895		30,932
Interest income on lease receivables		7,226		5,493

Sales-type and direct financing leases income total		44,121		36,425

Lease income – operating leases		10,331		9,740
Variable lease income		1,574		1,558

Total lease income		56,026		47,723

Allowance for Credit Losses

Lease receivables represent financing leases, which consist of sales-type leases and direct financing leases. These receivables typically have terms ranging from 1 year to 8 years. Lease receivables are ¥483,145 million and ¥416,370 million at September 30, 2023 and December 31, 2022, respectively.

The activities in the allowance for credit losses are as follows:


	Millions of yen
	Nine months ended September 30, 2023			Nine months ended September 30, 2022
Balance at beginning of period		5,596			3,791
Write-offs		(1,660	)		(1,689	)
Provision		887			1,518
Translation adjustments and other		1,113			1,430

Balance at end of period		5,936			5,050

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(6)	Lessor Accounting (continued)

Canon has policies in place to ensure that its products are sold to customers with an appropriate credit history, and continuously monitors its customers’ credit quality based on information including length of period in arrears, macroeconomic conditions, initiation of legal proceedings against customers and bankruptcy filings. The allowance for credit losses of lease receivables is evaluated collectively based on historical experiences of credit losses and reasonable and supportable forecasts. An additional reserve for individual accounts is recorded when Canon becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings. Lease receivables which are past due or individually evaluated for impairment at September 30, 2023 and December 31, 2022 are not significant.

Information about transferring lease receivables

Canon has syndication arrangements to sell its entire interests in lease receivables to the third-party financial institutions. The transactions under the arrangements are accounted for as sales in accordance with ASC 860 “Transfers and Servicing.” There were no significant transfers of lease receivables for the nine months ended September 30, 2022 while the transfers of lease receivables were ¥23,435 million for the nine months ended September 30, 2023. The amount that remained uncollected was ¥32,052 million and ¥13,077 million at September 30, 2023 and December 31, 2022, respectively. Cash proceeds from the transactions are included in increase in lease receivables under the cash flow from operating activities in the consolidated statement of cash flows. Canon continues to provide collection and administrative services for the financial institutions. The amount associated with the servicing liability measured at fair value was not significant at September 30, 2023 and December 31, 2022. Canon also retains limited recourse obligations which cover credit defaults. The recourse obligations were not significant at September 30, 2023 and December 31, 2022.

(7)	Acquisitions

On July 3, 2023, Canon Medical Systems Corporation, a subsidiary of the Company, acquired 100% of the issued shares of Minaris Medical Co., Ltd. and Minaris Medical America, Inc., (hereinafter referred to collectively as “Minaris Medical”) from Resonac Corporation for cash consideration of ¥28,968 million.

Acquisitions of businesses, net of cash acquired presented in the consolidated statements of cash flows includes the subrogation payment of the loan of ¥4,450 million of Minaris Medical to Resonac Corporation which was made by Canon Medical Systems Corporation in addition to the above cash consideration.

The acquisition was accounted for using the acquisition method of accounting. Acquisition-related costs were expensed as incurred and were not material.

In the medical business, Canon is working to strengthen its core business of diagnostic imaging systems, while also working to expand into areas such as healthcare IT and in vitro diagnostics. This acquisition will allow synergy between Minaris Medical’s diverse solutions in the in-vitro diagnostics business, and Canon’s technologies in the fields of automated biochemical analyzers, diagnostic imaging, and healthcare IT. By leveraging this synergy, Canon will be able to provide added value to meet the demands of the market.

Canon has not completed the process of allocating the amount paid for the acquisition to the assets acquired and liabilities assumed, and the provisional allocation is based on the information available as of the issuance date of the consolidated financial statements. The provisional amount of goodwill was ¥24,330 million which may be revised during the measurement period. The estimated fair values of the assets acquired and liabilities assumed at the acquisition date in the consolidated balance sheets were not material excluding those pertaining to goodwill.

The operating results with the assumption the financial statements of Minaris Medical had been included in Canon’s consolidated financial statements for the year ended December 31, 2022 and the year beginning on January 1, 2023 were not disclosed because the impact was not material.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(8)	Trade Payables

Trade payables are summarized as follows:


	Millions of yen
	September 30, 2023		December 31, 2022
Notes		79,802		82,702
Accounts		264,263		273,228

		344,065		355,930

Canon has supplier finance programs with particular third-party financial institutions where Canon agrees to pay the financial institutions after 90 to 180 days based on the contracts agreed to with the suppliers. The financial institutions offer earlier payment of the invoices at the sole discretion of the supplier for a discounted amount. Canon does not provide assets pledged as security or any other forms of guarantees under the arrangements. Canon is not a party to any arrangement between its suppliers and the financial institutions. The amount of liabilities under these programs, which is included in the above trade payables, as of September 30, 2023 and December 31, 2022 were ¥96,344 million and ¥95,389 million, respectively.

(9)	Short-Term Loans and Long-Term Debt

Short-term loans related to financial services are external loans held by Canon’s lease subsidiaries for the purpose of financing its customers through loans. Short-term loans related to financial services consisting of bank borrowings at September 30, 2023 and December 31, 2022 were ¥40,200 million and ¥41,200 million, and other short-term loans consisting of bank borrowings were ¥512,079 million and ¥200,012 million, respectively.

Canon has revolving credit facilities expiring in December 2023. The outstanding loans under the credit facilities are ¥54,000 million at a floating interest of 0.22% and Canon has no unused credit facilities as of September 30, 2023.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(10)

Equity

The changes in the carrying amounts of total equity, equity attributable to Canon Inc. shareholders and equity attributable to noncontrolling interests in the consolidated balance sheets for the nine months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Common stock		Additional paid-in capital			Legal reserve			Retained earnings			Accumulated other comprehensive income (loss)			Treasury stock			Total Canon Inc. shareholders’ equity			Non- controlling interests			Total equity
Balance at December 31, 2022		174,762		404,838			64,509			3,664,735			62,623			(1,258,362	)		3,113,105			235,925			3,349,030
Equity transactions with noncontrolling interests and other				157			(3,534	)		3,534									157			(102	)		55
Dividends to Canon Inc. shareholders (130.00 yen per share)										(130,870	)								(130,870	)					(130,870	)
Dividends to noncontrolling interests																						(7,495	)		(7,495	)
Transfer to legal reserve							579			(579	)								—						—
Comprehensive income:
Net income										183,947									183,947			14,084			198,031
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments													221,915						221,915			2,013			223,928
Net unrealized gains and losses on securities													60						60						60
Net gains and losses on derivative instruments													(1,276	)					(1,276	)		62			(1,214	)
Pension liability adjustments													4,181						4,181			(188	)		3,993

Total comprehensive income (loss)																			408,827			15,971			424,798

Repurchases and reissuance of treasury stock				(61	)					(41	)					(99,912	)		(100,014	)					(100,014	)

Balance at September 30, 2023		174,762		404,934			61,554			3,720,726			287,503			(1,358,274	)		3,291,205			244,299			3,535,504


	Millions of yen
	Common stock		Additional paid-in capital			Legal reserve			Retained earnings			Accumulated other comprehensive income (loss)			Treasury stock			Total Canon Inc. shareholders’ equity			Non- controlling interests			Total equity
Balance at December 31, 2021		174,762		403,119			68,015			3,538,037			(151,794	)		(1,158,366	)		2,873,773			224,656			3,098,429
Equity transactions with noncontrolling interests and other				298			(4,538	)		4,535									295			320			615
Dividends to Canon Inc. shareholders (115.00 yen per share)										(119,326	)								(119,326	)					(119,326	)
Dividends to noncontrolling interests																						(6,138	)		(6,138	)
Transfer to legal reserve				1,432			1,014			(2,446	)								—						—
Comprehensive income:
Net income										159,118									159,118			10,889			170,007
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments													307,209						307,209			1,809			309,018
Net unrealized gains and losses on securities													(21	)					(21	)					(21	)
Net gains and losses on derivative instruments													(1,902	)					(1,902	)		35			(1,867	)
Pension liability adjustments													3,495						3,495			24			3,519

Total comprehensive income (loss)																			467,899			12,757			480,656

Repurchases and reissuance of treasury stock				(11	)					(8	)					(99,993	)		(100,012	)					(100,012	)

Balance at September 30, 2022		174,762		404,838			64,491			3,579,910			156,987			(1,258,359	)		3,122,629			231,595			3,354,224

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(10)	Equity (continued)

The changes in the carrying amounts of total equity, equity attributable to Canon Inc. shareholders and equity attributable to noncontrolling interests in the consolidated balance sheets for the three months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Common stock		Additional paid-in capital			Legal reserve			Retained earnings			Accumulated other comprehensive income (loss)			Treasury stock			Total Canon Inc. shareholders’ equity			Non- controlling interests			Total equity
Balance at June 30, 2023		174,762		405,036			65,088			3,724,997			247,829			(1,316,360	)		3,301,352			243,707			3,545,059
Equity transactions with noncontrolling interests and other				(102	)		(3,534	)		3,534									(102	)		(144	)		(246	)
Dividends to Canon Inc. shareholders (70.00 yen per share)										(69,939	)								(69,939	)					(69,939	)
Dividends to noncontrolling interests																						(3,512	)		(3,512	)
Comprehensive income:
Net income										62,134									62,134			3,807			65,941
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments													39,608						39,608			396			40,004
Net unrealized gains and losses on securities													21						21						21
Net gains and losses on derivative instruments													(764	)					(764	)		12			(752	)
Pension liability adjustments													809						809			33			842

Total comprehensive income (loss)																			101,808			4,248			106,056

Repurchases and reissuance of treasury stock																(41,914	)		(41,914	)					(41,914	)

Balance at September 30, 2023		174,762		404,934			61,554			3,720,726			287,503			(1,358,274	)		3,291,205			244,299			3,535,504


	Millions of yen
	Common stock		Additional paid-in capital			Legal reserve			Retained earnings			Accumulated other comprehensive income (loss)			Treasury stock			Total Canon Inc. shareholders’ equity			Non- controlling interests			Total equity
Balance at June 30, 2022		174,762		404,843			69,004			3,583,088			109,984			(1,208,355	)		3,133,326			230,425			3,363,751
Equity transactions with noncontrolling interests and other				(5	)		(4,538	)		4,538									(5	)		14			9
Dividends to Canon Inc. shareholders (60.00 yen per share)										(61,809	)								(61,809	)					(61,809	)
Dividends to noncontrolling interests																						(2,809	)		(2,809	)
Transfer to legal reserve							25			(25	)								—						—
Comprehensive income:
Net income										54,118									54,118			3,131			57,249
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments													42,166						42,166			821			42,987
Net unrealized gains and losses on securities													(21	)					(21	)					(21	)
Net gains and losses on derivative instruments													612						612			5			617
Pension liability adjustments													4,246						4,246			8			4,254

Total comprehensive income (loss)																			101,121			3,965			105,086

Repurchases and reissuance of treasury stock																(50,004	)		(50,004	)					(50,004	)

Balance at September 30, 2022		174,762		404,838			64,491			3,579,910			156,987			(1,258,359	)		3,122,629			231,595			3,354,224

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(11)	Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Foreign currency translation adjustments			Net unrealized gains and losses on securities			Gains and losses on derivative instruments			Pension liability adjustments			Total
Balance at December 31, 2022		191,287			(34	)		(428	)		(128,202	)		62,623
Other comprehensive income (loss) before reclassifications		221,928			89			(2,490	)		3,047			222,574
Amounts reclassified from accumulated other comprehensive income (loss)		(13	)		(29	)		1,214			1,134			2,306

Net change during the period		221,915			60			(1,276	)		4,181			224,880

Balance at September 30, 2023		413,202			26			(1,704	)		(124,021	)		287,503


	Millions of yen
	Foreign currency translation adjustments			Net unrealized gains and losses on securities			Gains and losses on derivative instruments			Pension liability adjustments			Total
Balance at December 31, 2021		5,519			—			(894	)		(156,419	)		(151,794	)
Other comprehensive income (loss) before reclassifications		311,268			(28	)		(7,055	)		1,864			306,049
Amounts reclassified from accumulated other comprehensive income (loss)		(4,059	)		7			5,153			1,631			2,732

Net change during the period		307,209			(21	)		(1,902	)		3,495			308,781

Balance at September 30, 2022		312,728			(21	)		(2,796	)		(152,924	)		156,987

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(11)	Other Comprehensive Income (Loss) (continued)

Reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Amount reclassified from accumulated other comprehensive income (loss) *
	Nine months ended September 30, 2023			Nine months ended September 30, 2022			Affected line items in consolidated statements of income
Foreign currency translation adjustments
		(32	)		(5,883	)	Selling, general and administrative expenses
		10			1,824		Income taxes

		(22	)		(4,059	)	Consolidated net income
		9			—		Net income attributable to noncontrolling interests
		(13	)		(4,059	)	Net income attributable to Canon Inc.

Net unrealized gains and losses on securities		(37	)		9		Other, net
		8			(2	)	Income taxes

		(29	)		7		Consolidated net income
		—			—		Net income attributable to noncontrolling interests
		(29	)		7		Net income attributable to Canon Inc.

Gains and losses on derivative instruments		1,661			7,060		Net sales
		(474	)		(1,963	)	Income taxes

		1,187			5,097		Consolidated net income
		27			56		Net income attributable to noncontrolling interests
		1,214			5,153		Net income attributable to Canon Inc.

Pension liability adjustments		961			2,460		Other, net
		(46	)		(451	)	Income taxes

		915			2,009		Consolidated net income
		219			(378	)	Net income attributable to noncontrolling interests
		1,134			1,631		Net income attributable to Canon Inc.

Total amount reclassified, net of tax and noncontrolling interests		2,306			2,732

*	Increase (decrease) of amounts indicate losses (gains) in consolidated statements of income.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(11)	Other Comprehensive Income (Loss) (continued)

Reclassifications out of accumulated other comprehensive income (loss) for the three months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Amount reclassified from accumulated other comprehensive income (loss) *
	Three months ended September 30, 2023			Three months ended September 30, 2022			Affected line items in consolidated statements of income
Foreign currency translation adjustments
		—			(5,883	)	Selling, general and administrative expenses
		—			1,824		Income taxes

		—			(4,059	)	Consolidated net income
		—			—		Net income attributable to noncontrolling interests
		—			(4,059	)	Net income attributable to Canon Inc.

Net unrealized gains and losses on securities		1			9		Other, net
		(0	)		(2	)	Income taxes

		1			7		Consolidated net income
		—			—		Net income attributable to noncontrolling interests

		1			7		Net income attributable to Canon Inc.

Gains and losses on derivative instruments		534			3,787		Net sales
		(158	)		(1,049	)	Income taxes

		376			2,738		Consolidated net income
		45			40		Net income attributable to noncontrolling interests

		421			2,778		Net income attributable to Canon Inc.

Pension liability adjustments		390			820		Other, net
		(32	)		(150	)	Income taxes

		358			670		Consolidated net income
		73			(125	)	Net income attributable to noncontrolling interests

		431			545		Net income attributable to Canon Inc.

Total amount reclassified, net of tax and noncontrolling interests		853			(729	)

* Increase (decrease) of amounts indicate losses (gains) in consolidated statements of income.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(12)

Revenue

Canon recognizes contract assets primarily for unbilled receivables mainly arising from services contracts for the products of the Printing Business Unit. Contract assets are reclassified to trade receivables when they are billed under the terms of the contract. The difference between the opening and closing balances of contract assets primarily results from the timing difference of Canon’s performance and billing to customers. Contract assets at September 30, 2023 and December 31, 2022 were ¥48,392 million and ¥39,251 million respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets.

Canon typically bills to the customer when the performance obligation is satisfied and collects the payment in relatively short term except for certain maintenance service of the products of the Printing Business Unit and the Medical Business Unit and certain industrial equipment for which Canon occasionally receives the payment in advance from customers. The amount received in excess of revenue recognized is recorded as deferred revenue until the performance obligation for distinct goods or services are satisfied. Deferred revenue at September 30, 2023 and December 31, 2022 was ¥163,095 million and ¥141,840 million, respectively, and are included in other current liabilities and other non-current liabilities in the accompanying consolidated balance sheets. Revenue recognized for the nine months ended September 30, 2023, which had been included in the deferred revenue balance at December 31, 2022, was ¥98,771 million.

Remaining performance obligations for products and equipment at September 30, 2023 primarily arise from the sales of certain industrial equipment, amounting to ¥210,604 million, 66% of which is expected to be recognized as revenue within one year, 32% is within two years and the remaining 2% is within three years. Disclosure of remaining performance obligations is not required for the majority of service since the related revenue is recognized on an as billed basis applying the right to invoice practical expedient or is generated from the contracts with original expected duration of less than one year. Service revenue recognized from the fixed maintenance service contracts for the products of the Printing Business Unit and the Medical Business Unit with original expected duration of more than one year is ¥59,724 million for the nine months ended September 30, 2023 and the average remaining period for these fixed contracts at September 30, 2023 is about two years.

Disaggregated revenues by business unit, product and geographic area are described in Note 20.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(13) Net Income Attributable to Canon Inc. Shareholders per Share

Reconciliations of the numerators and denominators of basic and diluted net income attributable to Canon Inc. shareholders per share computations for the nine months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Net income attributable to Canon Inc.		183,947		159,118
Diluted net income attributable to Canon Inc.		183,943		159,115


	Number of shares
	Nine months ended September 30, 2023		Nine months ended September 30, 2022
The weighted-average number of common shares outstanding		1,005,262,399		1,035,225,840
Effect of dilutive securities:
Stock options		399,434		329,670

Diluted common shares outstanding		1,005,661,833		1,035,555,510


	Yen
	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Net income attributable to Canon Inc. shareholders per share:
Basic		182.98		153.70
Diluted		182.91		153.65

Reconciliations of the numerators and denominators of basic and diluted net income attributable to Canon Inc. shareholders per share computations for the three months ended September 30, 2023 and 2022 are as follows:


	Millions of yen
	Three months ended September 30, 2023		Three months ended September 30, 2022
Net income attributable to Canon Inc.		62,134		54,118
Diluted net income attributable to Canon Inc.		62,133		54,117

	Number of shares
	Three months ended September 30, 2023		Three months ended September 30, 2022
The weighted-average number of common shares outstanding		991,796,369		1,023,041,561
Effect of dilutive securities:
Stock options		418,086		350,492

Diluted common shares outstanding		992,214,455		1,023,392,053


	Yen
	Three months ended September 30, 2023		Three months ended September 30, 2022
Net income attributable to Canon Inc. shareholders per share:
Basic		62.65		52.90
Diluted		62.62		52.88

During the nine and three months ended September 30, 2023 and 2022, there were dilutive effects from the stock options granted by the Company.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(14)	Derivatives and Hedging Activities

Risk management policy

Canon operates internationally, exposing it to the risk of changes in foreign currency exchange rates. Derivative financial instruments are comprised principally of foreign exchange contracts utilized by the Company and certain of its subsidiaries to reduce the risk. Canon assesses foreign currency exchange rate risk by continually monitoring changes in the exposures and by evaluating hedging opportunities. Canon does not hold or issue derivative financial instruments for speculative purposes. Canon is also exposed to credit-related losses in the event of non-performance by counterparties to derivative financial instruments, but it is not expected that any counterparties will fail to meet their obligations. Most of the counterparties are internationally recognized financial institutions and selected by Canon taking into account their financial condition, and contracts are diversified across a number of major financial institutions.

Foreign currency exchange rate risk management

Canon’s international operations expose Canon to the risk of changes in foreign currency exchange rates. Canon uses foreign exchange contracts to manage certain foreign currency exchange exposures principally from the exchange of U.S. dollars and euros into yen. These contracts are primarily used to hedge the foreign currency exposure of forecasted intercompany sales and intercompany trade receivables that are denominated in foreign currencies. In accordance with Canon’s policy, a specific portion of foreign currency exposure resulting from forecasted intercompany sales is hedged using foreign exchange contracts which principally mature within three months.

Cash flow hedge

Changes in the fair value of derivative financial instruments designated as cash flow hedges, including foreign exchange contracts associated with forecasted intercompany sales, are reported in accumulated other comprehensive income (loss). These amounts are subsequently reclassified into earnings in the same period as the hedged items affect earnings. All amounts recorded in accumulated other comprehensive income (loss) as of September 30, 2023 are expected to be recognized in net sales over the next twelve months. Changes in the fair value of a foreign exchange contract for the period between the date that the forecasted intercompany sales occur and its maturity date are recognized in earnings.

Derivatives not designated as hedges

Canon has entered into certain foreign exchange contracts to primarily offset the earnings impact related to fluctuations in foreign currency exchange rates associated with certain assets denominated in foreign currencies. Although these foreign exchange contracts have not been designated as hedges as required in order to apply hedge accounting, the contracts are effective from an economic perspective. The changes in the fair value of these contracts are recorded in earnings immediately.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(14)	Derivatives and Hedging Activities (continued)

Contract amounts of foreign exchange contracts at September 30, 2023 and December 31, 2022 are set forth below:


	Millions of yen
	September 30, 2023		December 31, 2022
To sell foreign currencies		305,823		149,080
To buy foreign currencies		33,378		26,224

Fair value of derivative instruments in the consolidated balance sheets

The following tables present Canon’s derivative instruments measured at gross fair value as reflected in the consolidated balance sheets at September 30, 2023 and December 31, 2022.

Derivatives designated as hedging instruments


	Millions of yen
	Balance sheet location	Fair value
		September 30, 2023		December 31, 2022
Assets:
Foreign exchange contracts	Prepaid expenses and other current assets		234		176
Liabilities:
Foreign exchange contracts	Other current liabilities		1,729		416

Derivatives not designated as hedging instruments


	Millions of yen
	Balance sheet location	Fair value
		September 30, 2023		December 31, 2022
Assets:
Foreign exchange contracts	Prepaid expenses and other current assets		272		2,539
Liabilities:
Foreign exchange contracts	Other current liabilities		2,213		846

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(14)	Derivatives and Hedging Activities (continued)

Effect of derivative instruments in the consolidated statements of income

The following tables present the effect of Canon’s derivative instruments in the consolidated statements of income for the nine and three months ended September 30, 2023 and 2022.

Derivatives in cash flow hedging relationships

Millions of yen

Nine months ended September 30, 2023

Gain (loss)
recognized in
OCI

Gain (loss) reclassified from
accumulated OCI into income

Amount

Location

Amount

Foreign exchange contracts

(3,373

)

Net sales

(1,661

)

Millions of yen

Nine months ended September 30, 2022

Gain (loss)
recognized in
OCI

Gain (loss) reclassified from
accumulated OCI into income

Amount

Location

Amount

Foreign exchange contracts

(9,543

)

Net sales

(7,060

)

Millions of yen

Three months ended September 30, 2023

Gain (loss)
recognized in
OCI

Gain (loss) reclassified from
accumulated OCI into income

Amount

Location

Amount

Foreign exchange contracts

(1,548

)

Net sales

(534

)

Millions of yen

Three months ended September 30, 2022

Gain (loss)
recognized in
OCI

Gain (loss) reclassified from
accumulated OCI into income

Amount

Location

Amount

Foreign exchange contracts

(2,785

)

Net sales

(3,787

)

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(14)	Derivatives and Hedging Activities (continued)

Effect of derivative instruments in the consolidated statements of income (continued)

Derivatives not designated as hedging instruments


	Millions of yen
Nine months ended September 30, 2023	Gain (loss) recognized in income on derivative
Nine months ended September 30, 2023	Location		Amount
Foreign exchange contracts		Other, net		(14,737	)

	Millions of yen
Nine months ended September 30, 2022	Gain (loss) recognized in income on derivative
Nine months ended September 30, 2022	Location		Amount
Foreign exchange contracts		Other, net		(15,526	)

	Millions of yen
Three months ended September 30, 2023	Gain (loss) recognized in income on derivative
Three months ended September 30, 2023	Location		Amount
Foreign exchange contracts		Other, net		(1,728	)

	Millions of yen
Three months ended September 30, 2022	Gain (loss) recognized in income on derivative
Three months ended September 30, 2022	Location		Amount
Foreign exchange contracts		Other, net		(1,843	)

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(15)	Lessee Accounting

Lease costs are included in cost of sales or selling general and administrative expenses in the accompanying consolidated statements of income. Supplemental income statement information is as follows:


	Millions of yen
	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Operating lease cost		35,638		33,837
Short-term lease cost		12,036		11,261
Other lease cost		232		159

Total		47,906		45,257


	Millions of yen
	Three months ended September 30, 2023		Three months ended September 30, 2022
Operating lease cost		12,249		11,363
Short-term lease cost		3,928		4,234
Other lease cost		74		102

Total		16,251		15,699

Operating lease cash flow

Supplemental cash flow information is as follows.


	Millions of yen
	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Cash paid for amount included in the measurement of lease liabilities
Operating cash flows from operating leases		33,777		33,819

Noncash activity - Rights of use assets obtained in exchange for lease liabilities
Operating leases		30,010		35,644

Maturity Analysis

The following is a schedule by year of the future minimum lease payments under operating leases at September 30, 2023.


	Millions of yen
Within one year		38,848
Two years		29,129
Three years		22,820
Four years		15,657
Five years		9,490
Thereafter		16,722

Total future minimum lease payments		132,666
Less Imputed Interest		(7,278	)

Total		125,388

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(16)	Commitments and Contingent Liabilities

Commitments

As of September 30, 2023, commitments outstanding for the purchase of property, plant and equipment approximated ¥65,292 million, and commitments outstanding for the purchase of parts and raw materials approximated ¥234,246 million.

Guarantees

Canon occupies sales offices and other facilities under lease arrangements accounted for as operating leases. Deposits mainly for restoration made under such arrangements aggregated ¥10,745 million and ¥10,086 million at September 30, 2023 and December 31, 2022, respectively, and are included in noncurrent receivables in the accompanying consolidated balance sheets.

Canon provides guarantees for its employees, affiliates and other companies. The guarantees for the employees are principally made for their housing loans. The guarantees for affiliates and other companies are made for their lease obligations and bank loans to facilitate financing.

Canon would have to perform under a guarantee if the borrower defaults on a payment within the contract terms. The contract terms are 1 year to 11 years in case of employees with housing loans, and 1 year to 6 years in case of affiliates and other companies with lease obligations and bank loans. The maximum amount of undiscounted payments Canon would have had to make in the event of default is ¥1,893 million at September 30, 2023. The carrying amounts of the liabilities recognized for Canon’s obligations as a guarantor under those guarantees at September 30, 2023 were not significant.

Canon also offers assurance-type warranties under which it generally guarantees the performance of products delivered and services rendered for a certain period or term. Estimated product warranty costs are recorded at the time revenue is recognized and are included in selling, general and administrative expenses in the accompanying consolidated statements of income. Estimates for accrued product warranty costs are based on historical experience. Accrued product warranty costs are included in accrued expenses in the accompanying consolidated balance sheets and changes in accrued product warranty cost for the nine months ended September 30, 2023 and 2022 are summarized as follows:

Nine months ended September 30, 2023


	Millions of yen
Balance at December 31, 2022		20,887
Addition		14,854
Utilization		(13,505	)
Other		(1,627	)

Balance at September 30, 2023		20,609

Nine months ended September 30, 2022


	Millions of yen
Balance at December 31, 2021		16,949
Addition		14,382
Utilization		(12,406	)
Other		(348	)

Balance at September 30, 2022		18,577

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(16)	Commitments and Contingent Liabilities (continued)

Legal proceedings

Canon is involved in various claims and legal actions arising in the ordinary course of business. Canon has recorded provisions for liabilities when it is probable that liabilities have been incurred and the amount of loss can be reasonably estimated. Canon reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of the negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Based on its experience, although litigation is inherently unpredictable, Canon believes that any damage amounts claimed in outstanding matters are not a meaningful indicator of Canon’s potential liability. In the opinion of management, any reasonably possible range of losses from outstanding matters would not have a material adverse effect on Canon’s consolidated financial position, results of operations, or cash flows.

(17)	Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk

Fair value of financial instruments

The estimated fair values of Canon’s financial instruments at September 30, 2023 and December 31, 2022 are set forth below. The following summary excludes cash and cash equivalents, trade receivables, noncurrent receivables, short-term loans, trade payables and accrued expenses, and the fair values of these instruments approximate their carrying amounts. The summary also excludes investments and derivative instruments which are disclosed in Note 2 and Note 18, and Note 14, respectively.


	Millions of yen
	September 30, 2023						December 31, 2022
	Carrying amount			Estimated fair value			Carrying amount			Estimated fair value
Long-term debt, including current portion of long-term debt		(54,182	)		(54,182	)		(54,205	)		(54,205	)

The following methods and assumptions are used to estimate the fair value in the above table.

Long-term debt

Canon’s long-term debt instruments are classified as Level 2 instruments and valued based on the present value of future cash flows associated with each instrument discounted using current market borrowing rates for similar debt instruments of comparable maturity. The levels are more fully described in Note 18.

Limitations of fair value estimates

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Concentrations of credit risk

No single customer accounted for more than 10 percent of consolidated trade receivables as of September 30, 2023 and December 31, 2022.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(18)	Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy that prioritizes the inputs used to measure fair value is as follows:


Level 1 -		Inputs are quoted prices in active markets for identical assets or liabilities.
Level 2 -		Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 -		Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable, which reflect the reporting entity’s own assumptions about the assumptions that market participants would use in establishing a price.

Assets and liabilities measured at fair value on a recurring basis

The following tables present Canon’s assets and liabilities that are measured at fair value on a recurring basis consistent with the fair value hierarchy at September 30, 2023 and December 31, 2022.


	Millions of yen
	September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents		—		2,166		—		2,166
Short-term investments:
Available-for-sale:
Corporate bonds		—		1,356		—		1,356
Investments:
Available-for-sale:
Corporate bonds		—		5,460		—		5,460
Fund trusts and others		285		472		—		757
Equity securities		25,221		—		—		25,221
Prepaid expenses and other current assets:
Derivatives		—		506		—		506

Total assets		25,506		9,960		—		35,466

Liabilities:
Other current liabilities:
Derivatives		—		3,942		—		3,942

Total liabilities		—		3,942		—		3,942

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(18)	Fair Value Measurements (continued)


	Millions of yen
	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents		—		627		—		627
Short-term investments:
Available-for-sale:
Corporate bonds		—		9,301		—		9,301
Investments:
Available-for-sale:
Corporate bonds		—		4,785		—		4,785
Fund trusts and others		255		383		—		638
Equity securities		21,770		—		—		21,770
Prepaid expenses and other current assets:
Derivatives		—		2,715		—		2,715

Total assets		22,025		17,811		—		39,836

Liabilities:
Other current liabilities:
Derivatives		—		1,262		—		1,262

Total liabilities		—		1,262		—		1,262

Level 1 investments are comprised principally of Japanese equity securities, which are valued using an unadjusted quoted market price in active markets with sufficient volume and frequency of transactions. Level 2 assets and liabilities are comprised principally of corporate bonds included in cash and cash equivalents, investments or short-term investments, and derivatives. Corporate bonds included in cash and cash equivalents, and investments or short-term investments are valued using quoted prices for identical assets in markets that are not active or quotes obtained from counterparties or third parties.

Derivative financial instruments are comprised of foreign exchange contracts. Level 2 derivatives are valued using quotes obtained from counterparties or third parties, which are periodically validated by pricing models using observable market inputs, such as foreign currency exchange rates and interest rates, based on market approach.

Assets and liabilities measured at fair value on a nonrecurring basis

During the nine months ended September 30, 2023 and 2022, there were no circumstances that required any significant assets or liabilities to be measured at fair value on a nonrecurring basis.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(19)	Supplemental Information

Foreign Currency Exchange Gains and Losses

Gains and losses resulting from foreign currency transactions, including foreign exchange contracts, and translation of assets and liabilities denominated in foreign currencies are included in other, net of other income (deductions) in the consolidated statements of income. Foreign currency exchange gains and losses were net losses of ¥13,381 million and ¥47,078 million for the nine months ended September 30, 2023 and 2022, respectively, and were a net gain of ¥450 million and a net loss of ¥10,006 million for the three months ended September 30, 2023 and 2022, respectively.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs were ¥32,465 million and ¥29,130 million for the nine months ended September 30, 2023 and 2022, respectively, and were ¥11,668 million and ¥11,062 million for the three months ended September 30, 2023 and 2022, respectively, and are included in selling, general and administrative expenses in the consolidated statements of income.

Shipping and Handling Costs

Shipping and handling costs totaled ¥46,800 million and ¥43,940 million for the nine months ended September 30, 2023 and 2022, respectively, and were ¥15,428 million and ¥16,081 million for the three months ended September 30, 2023 and 2022, respectively, and are included in selling, general and administrative expenses in the consolidated statements of income.

Components of Net Periodic Benefit Cost

Net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans for the nine months ended September 30, 2023 and 2022 consisted of the following components:


	Millions of yen
	Nine months ended September 30, 2023			Nine months ended September 30, 2022
Service cost		19,711			23,871
Interest cost		17,359			9,500
Expected return on plan assets		(27,155	)		(29,979	)
Amortization of prior service credit		(5,852	)		(6,197	)
Amortization of actuarial loss		6,813			8,643
Curtailments and settlements		—			(622	)

		10,876			5,216

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(19)	Supplemental Information (continued)

Net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans for the three months ended September 30, 2023 and 2022 consisted of the following components:


	Millions of yen
	Three months ended September 30, 2023			Three months ended September 30, 2022
Service cost		6,461			8,003
Interest cost		5,960			3,198
Expected return on plan assets		(9,318	)		(10,093	)
Amortization of prior service credit		(1,965	)		(2,080	)
Amortization of actuarial loss		2,355			2,902
Curtailments and settlements		—			15

		3,493			1,945

Service cost component of net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans is included in cost of sales and operating expenses in the consolidated statements of income. The components other than the service cost component are included in other, net of other income (deductions) in the consolidated statements of income.

Cash Equivalents

Certain debt securities with original maturities of less than three months, classified as available-for-sale debt securities of ¥2,166 million and ¥627 million at September 30, 2023 and December 31, 2022, respectively, are included in cash and cash equivalents in the consolidated balance sheets. Fair value for these securities approximates their cost.

Acquisitions of businesses, net of cash acquired

The payment made to the securities firm acting as the tender offer agent for the shares acquired through the tender offer described Note 21, is included in Acquisitions of businesses, net of cash acquired in the consolidated statements of cash flows in an amount of ¥10,249 million.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(20)	Segment Information

Canon reports in four reportable segments: the Printing Business Unit, the Imaging Business Unit, the Medical Business Unit and the Industrial Business Unit with Others and Corporate, which are based on the organizational structure and information reviewed by Canon’s management to evaluate results and allocate resources.

Based on the realignment of Canon’s internal management structure, from the fourth quarter ended December 31, 2022, Canon has changed the name and structure of segments from Industrial and Others Business Unit and Corporate and eliminations to Industrial Business Unit, Others and Corporate and Eliminations. Also, a certain business, which was previously included in Others, has been presented within the Printing Business Unit from the beginning of the first quarter of 2023. Operating results for the three and nine months ended September 30, 2022 have also been reclassified.

The primary products included in each segment are as follows:


Printing Business Unit:		Office multifunction devices (MFDs) / Document solutions/ Laser multifunction printers (MFPs) / Laser printers / Inkjet printers / Image scanners / Calculators / Digital continuous feed presses / Digital sheet-fed presses / Large format printers

Imaging Business Unit:		Interchangeable-lens digital cameras / Interchangeable lenses / Digital compact cameras / Compact photo printers / MR Systems / Network cameras / Video management software / Video content analytics software / Digital camcorders / Digital cinema cameras / Broadcast equipment / Projectors

Medical Business Unit:		Computed tomography (CT) systems / Diagnostic ultrasound systems / Diagnostic X-ray systems / Magnetic resonance imaging (MRI) systems / Clinical chemistry analyzers / Digital radiography systems / Ophthalmic equipment

Industrial Business Unit:		Semiconductor lithography equipment / FPD (Flat panel display) lithography equipment / OLED Display Manufacturing Equipment / Vacuum thin-film deposition equipment / Die bonders

Others:		Handy terminals / Document scanners

The accounting policies of the segments are substantially the same as the accounting policies used in Canon’s quarterly consolidated financial statements. Canon evaluates performance of, and allocates resources to, each segment based on income before income taxes.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(20)	Segment Information (continued)

Information about operating results for each segment for the nine months ended September 30, 2023 and 2022 is as follows:


	Millions of yen
	Printing		Imaging		Medical			Industrial		Others and Corporate			Eliminations			Consolidated
2023:
Net sales:
External customers		1,698,620		632,173		388,672			207,400		90,389			—			3,017,254
Intersegment		4,824		174		904			8,365		50,970			(65,237	)		—

Total		1,703,444		632,347		389,576			215,765		141,359			(65,237	)		3,017,254
Operating cost and expenses		1,547,489		520,456		371,641			180,495		201,365			(63,565	)		2,757,881

Operating profit		155,955		111,891		17,935			35,270		(60,006	)		(1,672	)		259,373
Other income (deductions)		5,578		1,134		(8	)		408		15,109			(5,612	)		16,609

Income before income taxes		161,533		113,025		17,927			35,678		(44,897	)		(7,284	)		275,982


	Millions of yen
	Printing		Imaging		Medical			Industrial		Others and Corporate			Eliminations			Consolidated
2022:
Net sales:
External customers		1,628,141		560,696		362,240			227,832		95,330			—			2,874,239
Intersegment		4,302		335		263			5,947		61,772			(72,619	)		—

Total		1,632,443		561,031		362,503			233,779		157,102			(72,619	)		2,874,239
Operating cost and expenses		1,471,916		478,688		341,449			189,126		210,048			(73,043	)		2,618,184

Operating profit		160,527		82,343		21,054			44,653		(52,946	)		424			256,055
Other income (deductions)		9,704		1,071		567			1,047		(30,464	)		(6,011	)		(24,086	)

Income before income taxes		170,231		83,414		21,621			45,700		(83,410	)		(5,587	)		231,969

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(20)	Segment Information (continued)

Information about operating results for each segment for the three months ended September 30, 2023 and 2022 is as follows:


	Millions of yen
	Printing		Imaging		Medical			Industrial		Others and Corporate			Eliminations			Consolidated
2023:
Net sales:
External customers		568,502		220,614		132,044			76,547		27,540			—			1,025,247
Intersegment		1,858		72		362			2,302		17,204			(21,798	)		—

Total		570,360		220,686		132,406			78,849		44,744			(21,798	)		1,025,247
Operating cost and expenses		524,317		180,503		125,767			63,081		70,245			(21,290	)		942,623

Operating profit		46,043		40,183		6,639			15,768		(25,501	)		(508	)		82,624
Other income (deductions)		764		369		(20	)		131		3,512			(60	)		4,696

Income before income taxes		46,807		40,552		6,619			15,899		(21,989	)		(568	)		87,320


	Millions of yen
	Printing		Imaging		Medical			Industrial		Others and Corporate			Eliminations			Consolidated
2022:
Net sales:
External customers		552,951		202,848		126,006			85,307		28,978			—			996,090
Intersegment		1,827		85		68			1,730		24,812			(28,522	)		—

Total		554,778		202,933		126,074			87,037		53,790			(28,522	)		996,090
Operating cost and expenses		513,766		166,318		119,642			70,156		73,543			(28,775	)		914,650

Operating profit		41,012		36,615		6,432			16,881		(19,753	)		253			81,440
Other income (deductions)		2,944		190		169			147		(5,725	)		(89	)		(2,364	)

Income before income taxes		43,956		36,805		6,601			17,028		(25,478	)		164			79,076

Intersegment sales are recorded at the same prices used in transactions with third parties. Expenses not directly associated with specific segments are allocated based on the most reasonable measures applicable. 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 (currently, Canon Medical Systems Corporation) are also included in corporate expenses.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(20)	Segment Information (continued)

Information about sales by product and service to external customers by business unit for the nine months ended September 30, 2023 and 2022 is as follows:


	Millions of yen
	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Printing
Office multifunction devices		450,747		402,301
Office others		266,035		234,290

Office		716,782		636,591
Laser printers		444,754		474,844
Inkjet printers and Others		255,010		262,610

Prosumer		699,764		737,454
Production		282,074		254,096

Total		1,698,620		1,628,141
Imaging
Cameras		390,428		360,334
Network cameras and Others		241,745		200,362

Total		632,173		560,696
Medical
Diagnostic equipment		388,672		362,240

Industrial
Optical equipment		143,676		164,813
Industrial equipment		63,724		63,019

Total		207,400		227,832

Others and Corporate		90,389		95,330

Consolidated		3,017,254		2,874,239

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(20)	Segment Information (continued)

Information about sales by product and service to external customers by business unit for the three months ended September 30, 2023 and 2022 is as follows:


	Millions of yen
	Three months ended September 30, 2023		Three months ended September 30, 2022
Printing
Office multifunction devices		151,160		149,375
Office others		88,268		78,952

Office		239,428		228,327
Laser printers		145,277		150,131
Inkjet printers and Others		85,305		81,585

Prosumer		230,582		231,716
Production		98,492		92,908

Total		568,502		552,951
Imaging
Cameras		138,629		132,064
Network cameras and Others		81,985		70,784

Total		220,614		202,848
Medical
Diagnostic equipment		132,044		126,006

Industrial
Optical equipment		53,074		64,897
Industrial equipment		23,473		20,410

Total		76,547		85,307

Others and Corporate		27,540		28,978

Consolidated		1,025,247		996,090

Based on the realignment of Canon’s internal management structure, from the fourth quarter ended December 31, 2022, Canon has changed certain product categories and some product sales, which were previously included in Others, have been added to Lithography equipment and are presented as Optical equipment. Also, certain businesses, which were previously included in Office multifunction devices and Others and Corporate, have been presented as Inkjet printers and Others from the beginning of the first quarter of 2023. Operating results for the three and nine months ended September 30, 2022 have also been reclassified.

CANON INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited) (continued)

(20)	Segment Information (continued)

Information by major geographic area for the nine months ended September 30, 2023 and 2022 is as follows:


	Millions of yen
	Japan		Americas		Europe		Asia and Oceania		Total
2023:
Net sales:		652,598		944,583		790,223		629,850		3,017,254

2022:
Net sales:		627,576		893,993		720,649		632,021		2,874,239

Information by major geographic area for the three months ended September 30, 2023 and 2022 is as follows:


	Millions of yen
	Japan		Americas		Europe		Asia and Oceania		Total
2023:
Net sales:		213,428		328,008		270,461		213,350		1,025,247

2022:
Net sales:		201,091		311,553		251,981		231,465		996,090

Net sales are attributed to areas based on the location where the product is shipped to the customers.

(21)	Subsequent Events

On October 2, 2023, Canon Marketing Japan Inc., a subsidiary of the Company, acquired 93.10% of the issued shares of Tokyo Nissan Computer System Co., Ltd. (currently, TCS Co., Ltd. , changed the company name on November 1, 2023) excluding treasury stock through a public cash tender offer for consideration of ¥10,249 million in order to expand its IT solution business. In addition, on November 1, 2023, it acquired 6.90% of the issued shares of the acquired company through squeeze out so that the acquired company became its wholly owned subsidiary company for a total consideration of ¥11,009 million. Further information related to the accounting for this business combination has not been disclosed, because none of the activities required to complete the initial accounting for this acquisition have been completed as of the issuance date of the consolidated financial statements for the third quarter of 2023.

(2)

Other Information

The Board of Directors approved an interim cash dividend at the meeting held on July 27, 2023 as below:

Total amount of interim cash dividends:

69,939 million yen

Amount of an interim cash dividend per share:

70 yen

Payment date:

August 25, 2023

Note:

The interim dividend was paid to registered shareholders as of June 30, 2023.

Filing Compare · CANON INC