Canon Inc.: history, ownership, mission, how it works & makes money

A Brief History of Canon Inc.

Founded in 1937 in Tokyo, Japan, Canon Inc. began as a manufacturer of precision optical instruments. The company initially focused on developing a prototype of a 35mm focal-plane shutter camera, which eventually led to the launch of the Canon Hansa in 1936. This camera garnered international attention, marking Canon's entry into the consumer photography market.

By the 1960s, Canon had expanded its product line, introducing the Canon FT, one of the first 35mm cameras equipped with a through-the-lens (TTL) metering system. This innovation positioned Canon as a key player in the global camera industry. In 1970, Canon became the first Japanese company to produce a copier, the Canon NP-1100, which greatly influenced the office equipment market.

Throughout the 1980s and 1990s, Canon continued to innovate, launching several successful product lines, including the EOS series of cameras and the development of inkjet printers. The company went public in 1969 and has since seen its stock traded on the Tokyo Stock Exchange under the ticker "7751." As of October 2023, Canon's market capitalization stands at approximately ¥3.2 trillion (around $24 billion).

In fiscal year 2022, Canon reported revenue of ¥4.22 trillion (about $31.6 billion), representing a year-over-year increase of 5%. The company’s net income for the same year was ¥224 billion (approximately $1.68 billion), resulting in an operating margin of 5.2%.

Canon has consistently focused on sustainability and innovation. In 2023, it announced a goal to achieve carbon neutrality across its global operations by 2030. The company's R&D expenses for 2022 were approximately ¥385 billion, accounting for around 9% of its total revenue, underscoring its commitment to technology advancement.

In recent years, Canon has also entered the medical imaging market, acquiring several companies to enhance its portfolio. In 2022, Canon Medical Systems contributed around ¥600 billion in revenue, emphasizing the diversification of Canon's business operations.

From its inception, Canon's commitment to precision and quality has propelled it to become a global leader in imaging technologies, with a presence in over 200 countries. The company continues to adapt to changing market dynamics, focusing on digital transformation and customer-centric solutions.

A Who Owns Canon Inc.

Canon Inc., a globally recognized imaging and optical products company, has a diverse ownership structure that includes both institutional and individual shareholders. As of the most recent reports, the ownership breakdown of Canon Inc. is as follows:

Among the major institutional investors, the following funds hold significant stakes in Canon Inc.:

As of the latest financial disclosures, Canon Inc.'s stock performance has reflected its ownership dynamics. The company's market capitalization was approximately ¥3.62 trillion (around $33.2 billion) in October 2023. The stock price has seen fluctuations, with a year-to-date performance of approximately 12.5% increase.

The company has also consistently paid dividends, with a reported annual dividend of ¥80 per share for the fiscal year ending December 2022, representing a dividend yield of about 3.1% based on the current stock price.

The combined influence of institutional and individual investors plays a significant role in Canon's strategic decisions, particularly as they navigate a competitive landscape in the imaging and printing markets.

Canon Inc. Mission Statement

Canon Inc., a leading global imaging and printing solutions provider, emphasizes its commitment to innovation and customer satisfaction through its mission statement. The company aims to leverage its technological prowess to contribute to society while maintaining a focus on environmental sustainability.

As of 2023, Canon's mission statement articulates its dedication to enhancing the quality of life through advanced imaging technologies. Specifically, Canon highlights its goal to “bring the digital world to life” by integrating cutting-edge imaging and printing capabilities across various sectors.

The company has set forth several strategic initiatives that align with its mission. These include:

• Innovation in imaging technology
• Enhancing customer experiences
• Commitment to sustainability
• Expanding global reach

In terms of financial performance, Canon has demonstrated robust results that reflect its mission-driven approach. In the fiscal year 2022, Canon reported revenues of approximately ¥4.05 trillion (about $30 billion), a testament to its operational effectiveness and market demand.

Canon's focus on sustainability is evidenced by its commitment to reducing carbon emissions across its supply chain, targeting a 30% reduction in greenhouse gas emissions by 2030 compared to 2019 levels. This initiative aligns closely with its mission to create a positive impact on the environment through innovative business practices.

In 2023, Canon has reported an R&D expenditure of approximately ¥200 billion (around $1.5 billion), underlining its strategic focus on developing new technologies that enhance its product offerings and customer experience.

Market conditions have also played a role in Canon's mission-driven strategy. The imaging market is projected to grow at a CAGR of 6.2% from 2023 to 2028, driven by increasing demand in sectors such as healthcare, education, and corporate environments.

Canon's approach to fulfillment of its mission statement continues to be reflected in its product innovation. The launch of new imaging technologies, such as the EOS R series of cameras, has positioned Canon as a leader in the professional photography space, further solidifying its commitment to excellence and customer satisfaction.

Through its mission statement, Canon Inc. remains focused not only on profitability but also on its role as a responsible corporate entity, driving technological advancement while contributing positively to society and the environment.

How Canon Inc. Works

Canon Inc. operates as a leading multinational corporation specializing in imaging and optical products, which include cameras, camcorders, printers, and medical equipment. In the fiscal year 2022, Canon reported revenue of ¥4,025 billion (approximately $37 billion), demonstrating a recovery in sales following the impacts of the COVID-19 pandemic.

The company categorizes its operations into four main segments: Imaging System, Office Business, Industry and Other, and Medical System. Here is a brief overview of their performance across these segments in 2022:

Canon's Imaging System segment includes consumer and professional imaging products. In 2022, DSLR and mirrorless camera sales showed a slight improvement due to increased consumer interest. The total sales volume of interchangeable lens cameras increased to **4 million** units, with mirrorless cameras accounting for approximately **66%** of total sales.

The Office Business segment, which includes printers and multifunction devices, generated revenues of ¥1,251 billion. Canon's strategy here focuses on transitioning from hardware to solutions, with managed print services becoming a core component. Canon's inkjet printer sales reached **7 million** units in 2022, with **40%** attributed to business solutions.

In the Industry and Other segment, which includes industrial equipment and semiconductor lithography equipment, revenue amounted to ¥370 billion. Canon is particularly enhancing its offerings in semiconductor manufacturing, with lithography equipment sales forecasted to reach **¥200 billion** in 2023.

Canon's Medical System segment is rapidly expanding, driven by its diagnostic imaging solutions. The segment reported revenues of ¥1,090 billion. The company expects continued growth in advanced imaging systems, with a projected annual growth rate of **10%** through 2025.

As of the end of Q3 2023, Canon's total assets stood at **¥3.7 trillion**, with a net income of **¥300 billion** reported for the last fiscal year. Canon maintains a healthy balance sheet, with a debt-to-equity ratio of **0.4**, reinforcing its financial stability. Furthermore, the company has a dividend yield of **3.5%**, appealing to investors looking for returns.

Canon's global workforce consisted of approximately **180,000** employees as of 2022, highlighting its expansive operational capacity. The company prides itself on innovation, allocating about **8%** of its revenue to research and development annually, focusing on sustainability and digital transformation.

In terms of stock performance, Canon's share price has experienced fluctuations, closing at approximately **¥3,700** per share in October 2023, reflecting a **12%** increase year-to-date. The company’s market capitalization is around **¥3.5 trillion** as of the same period.

How Canon Inc. Makes Money

Canon Inc. generates revenue through several key business segments, primarily focusing on imaging and printing solutions, industrial equipment, and healthcare products. The company reported consolidated net sales of approximately ¥3.63 trillion (around $33.6 billion) for the fiscal year ending December 31, 2022.

• Imaging System: This segment includes digital cameras, camcorders, and printers. In 2022, Canon registered sales of ¥1.37 trillion ($12.6 billion), accounting for about 37.7% of total revenues.
• Office Business Unit: This covers multifunction printers (MFPs), large format printers, and document solutions. For 2022, sales in this sector reached ¥1.10 trillion ($10.1 billion), representing approximately 30.3% of total sales.
• Industry and Other Business: This includes production equipment, medical equipment, and semiconductor lithography systems. The sales in this area amounted to ¥950 billion ($8.6 billion) in 2022, contributing around 26% to the total revenue.
• Other: This category includes software and services, which comprised ¥134 billion ($1.2 billion) in revenue—about 3.7% of total sales.

Geographically, Canon's revenues are distributed across multiple regions. In 2022, sales in Japan were approximately ¥1.03 trillion ($9.4 billion), accounting for 28.4% of total revenue. The Americas contributed around ¥1.07 trillion ($9.8 billion), which is about 29.5%. Europe, the Middle East, and Africa (EMEA) generated ¥1.04 trillion ($9.5 billion), accounting for 28.6%. The Asia-Pacific region brought in ¥490 billion ($4.5 billion), representing around 13% of total sales.

Canon continues to invest in research and development (R&D) to sustain innovation and drive revenue growth. In 2022, R&D expenses were reported at ¥151.3 billion ($1.38 billion), representing **4.2%** of total sales. This investment focuses on advancements in imaging technologies, healthcare equipment, and sustainability initiatives.

The company has also made significant efforts in the sustainability sector. In 2022, Canon's sustainable products generated sales of around ¥100 billion ($910 million), aligning with the company's goal to enhance eco-friendly solutions and reduce its carbon footprint.

Through these diverse segments and strategic investments, Canon Inc. effectively maintains a strong revenue stream while adapting to the changing demands of the global market.