Canon

C ANON ANNUAL REPORT 2010

Fiscal Year Ended December 31, 2010

FINANCIAL HIGHLIGHTS

Millions of yen

(except per share amounts)

Thousands of U.S. dollars

(except per share amounts)

2010

2009

Change (%)

2010

¥3,706,901

¥3,209,201

+15.5

$45,764,210

Operating profit

387,552

217,055

+78.6

4,784,593

Income before income taxes

392,863

219,355

+79.1

4,850,160

Net income attributable to Canon Inc.

246,603

131,647

+87.3

3,044,481

106.64

+87.3

199.70

106.64

+87.3

2.47

Total assets

¥3,983,820

¥3,847,557

+3.5

$49,182,963

Canon Inc. stockholders’ equity

¥2,645,782

¥2,688,109

-1.6

$32,663,975

Net sales

Net income attributable to Canon Inc.

stockholders per share:

–Basic

¥

–Diluted

199.71

¥

$

2.47

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 JPY81=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2010, solely for the convenience of the reader.

Net Sales

Net Income Attributable to Canon Inc.

(Millions of yen)

(Millions of yen)

5,000,000

488,332

500,000

455,325

4,481,346

4,156,759

4,094,161

4,000,000

400,000

3,706,901

3,209,201

309,148

3,000,000

300,000

246,603

2,000,000

200,000

1,000,000

100,000

131,647

0

0

06

07

08

09

10

06

Net Income Attributable to Canon Inc. Stockholders per Share

08

09

(%)

10

ROE/ROA

(Yen)

07

Basic

400.00

Diluted

ROE

20.0

377.59 377.53

16.3

16.5

10.6

341.95 341.84

10.8

15.0

300.00

246.21 246.20

199.71199.70

200.00

11.1

9.2

10.0

7.3

4.9

106.64 106.64

100.00

5.0

0.00

0

6.3

3.4

06

07

08

09

10

06

07

08

09

10...