Interim report
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October 27, 2025 Canon Inc. Canon hereby reports that the following consolidated financial results for the nine months ended of the fiscal year ending December 31, 2025 (from January 1, 2025 to September 30, 2025) have been approved today at the board of directors meeting. CONSOLIDATED RESULTS FOR THE THIRD QUARTER (Millions of yen, thousands of U.S. dollars, except per share amounts) Three months ended September 30, 2025 Three months ended September 30, 2024 Change(%) Three months ended September 30, 2025 Net sales 1,104,324¥ 1,079,806¥ + 2.3 7,411,570$ Operating profit 88,047 98,164 - 10.3 590,919 Income before income taxes 91,830 89,322 + 2.8 616,309 Net income attributable to Canon Inc. 63,667¥ 68,763¥ - 7.4 427,295$ Net income attributable to Canon Inc. shareholders per share: - Basic 71.51¥ 71.88¥ - 0.5 0.48$ - Diluted 71.46 71.85 - 0.5 0.48 CONSOLIDATED RESULTS FOR THE NINE MONTHS (Millions of yen, thousands of U.S. dollars, except per share amounts) Nine months ended September 30, 2025 Nine months ended September 30, 2024 Change(%) Nine months ended September 30, 2025 Year ending December 31, 2025 Change(%) Net sales 3,302,891¥ 3,236,111¥ + 2.1 22,167,054$ 4,616,000¥ + 2.4 Operating profit 302,355 296,638 + 1.9 2,029,228 451,000 + 61.2 Income before income taxes 314,149 310,769 + 1.1 2,108,383 466,000 + 54.7 Net income attributable to Canon Inc. 219,571¥ 218,569¥ + 0.5 1,473,631$ 325,500¥ + 103.4 Net income attributable to Canon Inc. shareholders per share: - Basic 240.99¥ 224.49¥ + 7.3 1.62$ 360.23¥ + 117.6 - Diluted 240.84 224.37 + 7.3 1.62 360.00 + 117.6 As of September 30, 2025 As of December 31, 2024Change(%) As of September 30, 2025 Total assets 6,014,010¥ 5,766,246¥ + 4.3 40,362,483$ Canon Inc. shareholders’ equity 3,164,015¥ 3,380,273¥ - 6.4 21,235,000$ 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 JPY149=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 30, 2025, 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 Actual CONSOLIDATED RESULTS FOR THE THIRD QUARTER AND THE NINE MONTHS ENDED SEPTEMBER 30, 2025 Actual Actual Projection
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. October 27, 2025 Consolidated Financial Results for the Nine Months Ended September 30, 2025 (Under U.S. GAAP) Company name: Canon Inc. Listing: Tokyo Stock Exchange / Nagoya Stock Exchange / Sapporo Securities Exchange / Fukuoka Stock Exchange Securities code: 7751 URL: https://global.canon/en/ir/ Representative: Fujio Mitarai, Chairman & CEO Inquiries: Sachiho Tanino, General Manager, Consolidated Accounting Div. Telephone: +81-3-3758-2111 Scheduled date to commence dividend payments: － Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (Yen amounts are rounded to millions, unless otherwise noted.) 1. Consolidated financial results for the nine months ended September 30, 2025 (from January 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Income before income taxes Net income attributable to Canon Inc. Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 3,302,891 2.1 302,355 1.9 314,149 1.1 219,571 0.5 September 30, 2024 3,236,111 7.3 296,638 14.4 310,769 12.6 218,569 18.8 Note: Comprehensive income For the nine months ended September 30, 2025: ¥ 247,816 million -2.2% For the nine months ended September 30, 2024: ¥ 253,470 million -40.3% Net income attributable to Canon Inc. shareholders per share -Basic Net income attributable to Canon Inc. shareholders per share -Diluted Nine months ended Yen Yen September 30, 2025 240.99 240.84 September 30, 2024 224.49 224.37 (2) Consolidated financial position Total assets Total equity (Net assets) Canon Inc. shareholders’ equity Canon Inc. shareholders’ equity ratio As of Millions of yen Millions of yen Millions of yen % September 30, 2025 6,014,010 3,434,677 3,164,015 52.6 December 31, 2024 5,766,246 3,645,051 3,380,273 58.6
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended December 31, 2024 － 75.00 － 80.00 155.00 Year ending December 31, 2025 － 80.00 － Year ending December 31, 2025 (Forecast) 80.00 160.00 Note: Revisions to the forecast of cash dividends most recently announced: None As for the dividend per share for the year ending December 2025, Canon aims for a payout ratio of 50%, and under the policy of stable and proactive profit distribution, dividend will be reviewed as necessary taking into account future business performance and financial conditions. 3. Forecast of consolidated financial results for the year ending December 31, 2025 (from January 1, 2025 to December 31, 2025) (Percentages indicate year-on-year changes.) Net sales Operating profit Income before income taxes Net income attributable to Canon Inc. Net income attributable to Canon Inc. shareholders per share -Basic Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Year ending December 31, 2025 4,616,000 2.4 451,000 61.2 466,000 54.7 325,500 103.4 360.23 Note: Revisions to the forecast of consolidated financial results most recently announced: Yes
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of simplified method of accounting or specific accounting treatments: None (3) Changes in accounting policies (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (4) Number of issued shares (common stock) (i) Total number of issued shares at the end of the period (including shares of treasury stock) As of September 30, 2025 1,333,763,464 shares As of December 31, 2024 1,333,763,464 shares (ii) Number of shares of treasury stock at the end of the period As of September 30, 2025 455,137,491 shares As of December 31, 2024 389,771,598 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Nine months ended September 30, 2025 911,121,651 shares Nine months ended September 30, 2024 973,635,918 shares * Review of the attached consolidated quarterly financial statements of the Japanese original by certified public accountants or an audit firm: None * Appropriate use of financial forecasts, and other special notes (1) Financial forecast and forward looking statements in this document are based on the available information at present and contain potential risks and uncertainties. Please be aware that the actual result may differ significantly from the forecast due to changes caused by various factors. Please refer to “I. Operating Results and Financial Conditions, 4. Outlook” on page 4 for assumptions and other matters related to the forecast of financial results. (2) After the completion of the review by the audit firm, Canon plans to disclose the third quarter earnings report with the interim review report attached, on Thursday, October 30, 2025.
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CONTENTS I. Operating Results and Financial Conditions ............................................................................. 2 1. 2025 Third Quarter in Review .............................................................................................. 2 2. Results by Segment .............................................................................................................. 3 3. Financial Conditions in Review ........................................................................................... 4 4. Outlook ................................................................................................................................. 4 II. Consolidated Financial Statements ........................................................................................... 6 1. Consolidated Balance Sheet.................................................................................................. 6 2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .................................................... 7 【Results for the third quarter】 ......................................................................................... 7 Consolidated Statement of Income .................................................................................. 7 Consolidated Statement of Comprehensive Income ........................................................ 7 【Results for the nine months】 .......................................................................................... 8 Consolidated Statement of Income .................................................................................. 8 Consolidated Statement of Comprehensive Income ........................................................ 8 3. Consolidated Statement of Cash Flows ............................................................................... 9 4. Note for Going Concern Assumption ................................................................................ 10 5. Segment Information .............................................................................................................. 10 【Results for the third quarter】 ....................................................................................... 10 【Results for the nine months】 ........................................................................................ 12 6. Details of Sales ....................................................................................................................... 14 【Results for the third quarter】 ....................................................................................... 14 【Results for the nine months】 ........................................................................................ 14 7. Note on Significant Changes in Shareholders’ Equity ........................................................ 15 8. Basis of Presentation and Significant Accounting Policies ................................................ 15 - 1 -
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I. Operating Results and Financial Conditions 1. 2025 Third Quarter in Review Looking back at the global economy in the third quarter of 2025, in the U.S., although the labor market conditions have been deteriorating due to restrained hiring by companies, personal consumption remained firm. In Europe, while domestic demand was supported by personal consumption and fiscal policies, exports declined and the recovery remained modest. In China, although exports to Asia expanded, personal consumption temporarily boosted by stimulus measures subsequentially lost momentum, and the real estate downturn persisted. In Japan, personal consumption continued to recover moderately, supported by stable labor market conditions. Globally, the impact of additional U.S. tariffs begun to take effect, and overall economic growth remained moderate. In the markets in which Canon operates, although there were regional differences, overall demand has softened. By product, demand for office multifunction devices (MFDs) slowed in the U.S. due to the impact of tariffs, and sluggish market conditions continued in Europe and China. For commercial printing, signs of curbed investments were seen in the U.S. The market for laser printers continued to shrink, particularly in China, and curbs on corporate investments were also seen in Europe. For medical equipment, while the market in the U.S. continued to grow, there were installation delays, and in Japan, financial conditions at hospitals deteriorated further, resulting in a more challenging market. For cameras, in addition to strong demand for mirrorless cameras, demand for compact cameras also increased due to growing demand from those looking to enjoy authentic photography with ease. For network cameras, the market continued to grow across all regions. As for semiconductor lithography equipment, while the recovery of demand for memory devices for smartphones and PCs remained weak, demand for generative artificial intelligence (AI) applications remained firm. For FPD (Flat Panel Display) lithography equipment, demand increased due to additional investments driven by advancements in smartphone panel functionality. The average value of the yen against the U.S. dollar during the third quarter and the first nine months of the year was ¥147.50 and ¥148.06, a year-on-year appreciation of approximately ¥2 and a year-on-year appreciation of approximately ¥3, respectively. The average value of the yen against the euro was ¥172.33 and ¥165.56, a year-on-year depreciation of approximately ¥9 and a year-on-year depreciation of approximately ¥1, respectively. In the third quarter, although some businesses were affected by the curbs on corporate investment, the Imaging and Industrial Business Units achieved growth, and net sales increased by 2.3% year-on-year to ¥1,104.3 billion, resulting in the highest recorded third-quarter sales in Canon’s history. However, gross profit for the third quarter decreased by 0.8% year-on-year to ¥512.0 billion, mainly due to negative impact from the product mix and increased costs caused by the impact of additional U.S. tariffs, and gross profit as a percentage of net sales decreased by 1.4 points year-on-year to 46.4%. Operating expenses increased by 1.4% year-on-year to ¥424.0 billion partly due to foreign exchange effects, however, thanks to thorough expense control and the effects of overseas structural reforms already implemented, the operating expense to sales ratio improved by 0.3 points year-on-year to 38.4%. As a result, operating profit decreased by 10.3% year-on-year to ¥88.0 billion. Other income (deductions) improved by ¥12.6 billion year-on-year mainly due to a decrease in currency exchange losses on receivables denominated in foreign currencies, leading to a 2.8% year-on-year increase in income before income taxes to ¥91.8 billion. Net income attributable to Canon Inc. decreased by 7.4% year-on-year to ¥63.7 billion, compared to the previous year when a reversal of tax provision was recorded. As for the results of the first nine months of the year, net sales reached a record high, increasing by 2.1% year-on-year to ¥3,302.9 billion. Operating profit increased by 1.9% year-on-year to ¥302.4 billion, income before income taxes increased by 1.1% year-on-year to ¥314.1 billion, and net income attributable to Canon Inc. increased by 0.5% year-on-year to ¥219.6 billion, with all levels of profit exceeding the figures from the same period of the previous year. Basic net income attributable to Canon Inc. shareholders per share was ¥71.51 for the third quarter, a year-on- year decrease of ¥0.37, and ¥240.99 for the first nine months, a year-on-year increase of ¥16.50. - 2 -
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2. Results by Segment Looking at Canon’s third quarter performance by business unit, in the Printing Business Unit, sales of equipment for the production printing market increased year-on-year, as sales remained firm in regions other than the U.S., where corporate investment was restrained. As for office MFDs, although sales of imageFORCE, a new series launched in the third quarter began to grow, sales were weak, particularly in Europe and the U.S. As for inkjet printers, sales of refillable ink tank models remained at the same level as the previous year despite challenging market conditions. Sales of laser printers decreased year-on-year, mainly due to intensified investments restraint in Europe and China, and a rebound effect from the previous year when shipments had surged due to the completion of inventory adjustments at OEM partners. As a result, sales for the third quarter of the Printing Business Unit decreased by 1.1% year-on-year to ¥604.0 billion, while income before income taxes for the third quarter decreased by 12.2% year-on-year to ¥55.8 billion. Sales for the first nine months of the year totaled ¥1,825.6 billion, a year-on-year decrease of 1.1%, while income before income taxes totaled ¥215.8 billion, a year-on-year decrease of 0.1%. In the Medical Business Unit, hospitals’ financial conditions further worsened in Japan, and postponement of installations intensified mainly in the U.S. However, growth in emerging markets such as Central and South America drove sales, resulting in a year-on-year of 0.4% to ¥132.9 billion. Income before income taxes for the third quarter increased by 34.8% year-on-year to ¥6.7 billion, partly thanks to the effects of structural reforms already implemented. Sales for the first nine months of the year totaled ¥412.2 billion, a year-on-year increase of 1.1%, while income before income taxes totaled ¥18.7 billion, a year-on-year increase of 14.3%. In the Imaging Business Unit, sales increased as mirrorless cameras such as the EOS R50 and EOS R50 V, as well as compact digital cameras with increased production capacity, capturing the needs of customers seeking easy and convenient photography. Although some network camera sales shifted to the first half of the year due to boosted demand ahead of U.S. tariff hikes, sales continued to grow in the third quarter, particularly in the U.S. As a result, sales for the third quarter of the Imaging Business Unit increased by 5.9% year-on-year to ¥253.6 billion, while income before income taxes for the third quarter decreased by 12.4% year-on-year to ¥39.0 billion due to increased costs from U.S. tariffs and a less favorable product mix. Sales for the first nine months of the year totaled ¥726.4 billion, a year-on-year increase of 10.1%, while income before income taxes totaled ¥111.4 billion, a year-on-year increase of 10.1%. In the Industrial Business Unit, although demand for semiconductor lithography equipment for producing memory and power semiconductors was weak, demand for generative AI remained at a high level, leading to increased sales of Canon’s back-end lithography systems, which have become the industry standard. As for FPD lithography equipment, unit sales exceeded the previous year’s level as the business unit captured additional investment demand resulting from higher functionality in smartphone panels. As a result, sales for the third quarter of the Industrial Business Unit increased by 21.7% year-on-year to ¥85.4 billion, while income before income taxes for the third quarter increased by 0.9% year-on-year to ¥14.5 billion. Sales for the first nine months of the year totaled ¥245.2 billion, a year-on-year increase of 6.3%, while income before income taxes totaled ¥41.9 billion, a year-on-year decrease of 7.0%. - 3 -
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3. Financial Conditions in Review Financial Conditions As of September 30, 2025, total assets increased by ¥247.8 billion to ¥6,014.0 billion compared to the end of the previous year, mainly due to the increase in cash and cash equivalents and an accumulation of inventories, despite a decrease in trade receivables. Total liabilities increased by ¥458.1 billion to ¥2,579.3 billion due to loans made to meet increased working capital needs. The balance of total equity decreased by ¥210.4 billion to ¥3,434.7 billion mainly due to dividend payments to Canon Inc. shareholders and three rounds of treasury stock repurchases, despite an increase in net income. As a result, Canon Inc. shareholders’ equity as a percentage of total assets declined by 6.0 points to 52.6% compared to the end of the previous year. Cash Flow In the first nine months of the year, cash flow from operating activities amounted to ¥283.6 billion, a decrease of ¥79.5 billion year-on-year, mainly due to increased working capital despite an increase in net income. Although the amount of fixed asset purchases increased, including investment in a new plant for semiconductor manufacturing equipment at the Utsunomiya Office, cash outflows from investing activities was lower by ¥14.7 billion year-on-year, resulting in total outflows of ¥188.4 billion. This was mainly due to the acquisition of Primagest, Inc. conducted in the same period of previous year. As a result, free cash flow decreased by ¥64.8 billion compared with the previous year to ¥95.2 billion. Cash flow from financing activities resulted in an inflow of ¥98.5 billion, an increase of ¥108.7 billion year-on- year. This was mainly due to an increase in short-term loans in response to higher working capital requirements, despite active shareholder returns, such as dividends and three rounds of treasury stock repurchases. As a result of these factors, combined with the effect of exchange rate fluctuations, cash and cash equivalents increased by ¥194.1 billion from the end of the previous year to ¥695.6 billion. 4. Outlook As for the outlook for the fourth quarter, while progress has been made in the structures for additional U.S. tariffs by various countries, given the renewed trade tensions between the U.S. and China, uncertainty is expected to persist going forward. However, the global economy is expected to continue its moderate growth with the support of fiscal policies in various countries. In the markets in which Canon operates, although it is anticipated that it will take time for market conditions for office MFDs to recover in some regions, overall demand is expected to remain solid thanks to the continued high level of demand for highly productive printing equipment with excellent cloud connectivity. For laser and inkjet printers, although the market is expected to continue to shrink, Canon will focus on expanding sales for refillable ink tank models through an expanded lineup. For medical equipment, emerging markets are expected to continue growing, and although there are signs of restrained investment in the U.S., demand is expected to remain firm. For interchangeable-lens digital cameras, the market is expected to remain strong, driven by high demand for video shooting and strong demand from younger generations. For network cameras, high demand is expected to continue thanks to growth in various areas beyond security applications. For semiconductor lithography equipment, demand is expected to remain solid, particularly for generative AI-related applications. For FPD lithography equipment, demand is expected to increase due to additional investments driven by the increasing functionality of smartphone panels. With regard to the currency exchange rates on which Canon bases its performance outlook for the fourth quarter, Canon anticipates exchange rates of ¥150 to the U.S. dollar and ¥175 to the euro, representing appreciation of approximately ¥3 against the U.S. dollar and depreciation of approximately ¥4 against the euro for the full fiscal year from the previous year. For the U.S. dollar and the euro, Canon expects the yen to depreciate by ¥4 and by ¥5 respectively compared with its previous forecast. Canon projects full-year consolidated net sales of ¥4,616.0 billion, a year-on-year increase of 2.4%; operating profit of ¥451.0 billion, a year-on-year increase of 1.4%*; income before income taxes of ¥466.0 billion, a year- - 4 -
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on-y ear decrease of 0.1%*; and net income attributable to Canon Inc. of ¥325.5 billion, a year-on-year increase of 0.1%*. The forecast has been revised downward from the previous outlook, reflecting delays in progress on business negotiations seen in some regions due to increased uncertainty over future prospects, as well as the additional tariff impacts. However, expanded sales of Canon’s highly competitive products are expected during the year-end sales season, and continued growth in both sales and profits is anticipated. Amid an adverse global economic environment, Canon will strive to achieve record-high sales and further improve profitability in the final year of Phase VI of the Excellent Global Corporation Plan. *Compared to adjusted profits excluding impairment loss on goodwill Consolidated Outlook *Year ended December 31, 2024 Results (adjusted) exclude the impact of impairment loss on goodwill of ¥165,100 million Fiscal year Change Change (%) Y ear ended December 31, 2024 Year ended December 31, 2024 * Previous Outlook (A) Revised Outlook (B) (B - A) (B - A) / A Results Results (adjusted) Net sales 4,600,000 4,616,000 16,000 +0.3% 4,509,821 4,509,821 Operating profit 460,000 451,000 (9,000) -2.0% 279,754 444,854 Income before income taxes 472,000 466,000 (6,000) -1.3% 301,161 466,261 Net income attributable to Canon Inc. 330,000 325,500 (4,500) -1.4% 160,025 325,125 Year ending December 31, 2025 Millions of yen This document contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management’s views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” or “should” and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon’s targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this document. Please refer to Canon’s most recent disclosure documents such as the Annual Securities Report, which are available on its website, for more information on the risks and uncertainties that may affect Canon’s business, financial condition and results of operations. 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. - 5 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED II. Consolidated Financial Statements 1. Consolidated Balance Sheet Millions of yen As of September 30, 2025 As of December 31, 2024 Change Assets Current assets 2,657,170 2,450,083 207,087 Cash and cash equivalents 695,636 501,565 194,071 Short-term investments 7,350 4,775 2,575 Trade receivables 631,264 705,591 (74,327) Inventories 913,788 841,836 71,952 Current lease receivables 163,346 167,612 (4,266) Prepaid expenses and other current assets 262,750 245,665 17,085 Allowance for credit losses (16,964) (16,961) (3) Non-current assets 3,356,840 3,316,163 40,677 Noncurrent receivables 35,982 29,614 6,368 Investments 119,924 113,241 6,683 Property, plant and equipment, net 1,170,437 1,147,380 23,057 Operating lease right-of-use assets 119,950 136,717 (16,767) Intangible assets, net 257,522 275,391 (17,869) Goodwill 948,176 915,258 32,918 Noncurrent lease receivables 336,309 363,749 (27,440) Other assets 372,819 339,569 33,250 Allowance for credit losses (4,279) (4,756) 477 Total assets 6,014,010 5,766,246 247,764 Liabilities and Equity Current liabilities 1,922,703 1,546,306 376,397 Short-term loans and current portion of long-term debt 777,475 318,330 459,145 Short-term loans related to financial services 39,700 40,400 (700) Other short-term loans and current portion of long-term debt 737,775 277,930 459,845 Trade payables 337,769 350,128 (12,359) Accrued income taxes 43,295 78,438 (35,143) Accrued expenses 436,376 433,329 3,047 Current operating lease liabilities 40,199 41,876 (1,677) Other current liabilities 287,589 324,205 (36,616) Non-Current liabilities 656,630 574,889 81,741 Long-term debt, excluding current portion of long-term debt 304,723 205,075 99,648 Accrued pension and severance cost 170,426 166,153 4,273 Noncurrent operating lease liabilities 82,994 98,219 (15,225) Other noncurrent liabilities 98,487 105,442 (6,955) Total liabilities 2,579,333 2,121,195 458,138 Canon Inc. shareholders’ equity 3,164,015 3,380,273 (216,258) Common stock 174,762 174,762 - Additional paid-in capital 412,915 412,287 628 Retained earnings 3,952,442 3,880,561 71,881 Legal reserve 62,150 61,893 257 Other retained earnings 3,890,292 3,818,668 71,624 Accumulated other comprehensive income (loss) 481,935 470,897 11,038 Treasury stock, at cost (1,858,039) (1,558,234) (299,805) Noncontrolling interests 270,662 264,778 5,884 Total equity 3,434,677 3,645,051 (210,374) Total liabilities and equity 6,014,010 5,766,246 247,764 Millions of yen As of September 30, 2025 As of December 31, 2024 Notes: 1. Accumulated depreciation 3,252,324 3,203,327 2. Accumulated other comprehensive income (loss): Foreign currency translation adjustments 527,268 519,361 Net unrealized gains and losses on securities 67 31 Net gains and losses on derivative instruments (940) (1,519) Pension liability adjustments (44,460) (46,976) - 6 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED 2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Results for the third quarter Consolidated statement of income Millions of yen Three months ended September 30, 2025 Three months ended September 30, 2024 Change % % Net sales 1,104,324 100.0 1,079,806 100.0 24,518 Cost of sales 592,314 53.6 563,445 52.2 28,869 Gross profit 512,010 46.4 516,361 47.8 (4,351) Operating expenses: Selling, general and administrative expenses 341,417 30.9 336,907 31.2 4,510 Research and development expenses 82,546 7.5 81,290 7.5 1,256 423,963 38.4 418,197 38.7 5,766 Operating profit 88,047 8.0 98,164 9.1 (10,117) Other income (deductions): Interest and dividend income 3,404 3,828 (424) Interest expense (2,026) (1,012) (1,014) Other, net 2,405 (11,658) 14,063 3,783 0.3 (8,842) (0.8) 12,625 Income before income taxes 91,830 8.3 89,322 8.3 2,508 Income taxes 22,989 2.1 15,890 1.5 7,099 Consolidated net income 68,841 6.2 73,432 6.8 (4,591) Less: Net income attributable to noncontrolling interests 5,174 0.4 4,669 0.4 505 Net income attributable to Canon Inc. 63,667 5.8 68,763 6.4 (5,096) Consolidated statement of comprehensive income Millions of yen Three months ended September 30, 2025 Three months ended September 30, 2024 Change Consolidated net income 68,841 73,432 (4,591) Other comprehensive income (loss), net of tax Foreign currency translation adjustments 63,252 (200,091) 263,343 Net unrealized gains and losses on securities 32 23 9 Net gains and losses on derivative instruments (858) 4,497 (5,355) Pension liability adjustments (79) 723 (802) 62,347 (194,848) 257,195 Comprehensive income (loss) 131,188 (121,416) 252,604 Less: Comprehensive income (loss) attributable to noncontrolling interests 5,659 3,161 2,498 Comprehensive income (loss) attributable to Canon Inc. 125,529 (124,577) 250,106 - 7 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED Results for the nine months Consolidated statement of income Millions of yen Nine months ended September 30, 2025 Nine months ended September 30, 2024 Change % % Net sales 3,302,891 100.0 3,236,111 100.0 66,780 Cost of sales 1,755,168 53.1 1,689,720 52.2 65,448 Gross profit 1,547,723 46.9 1,546,391 47.8 1,332 Operating expenses: Selling, general and administrative expenses 999,202 30.2 1,003,953 31.0 (4,751) Research and development expenses 246,166 7.5 245,800 7.6 366 1,245,368 37.7 1,249,753 38.6 (4,385) Operating profit 302,355 9.2 296,638 9.2 5,717 Other income (deductions): Interest and dividend income 10,947 11,557 (610) Interest expense (5,016) (2,487) (2,529) Other, net 5,863 5,061 802 11,794 0.3 14,131 0.4 (2,337) Income before income taxes 314,149 9.5 310,769 9.6 3,380 Income taxes 76,959 2.3 77,660 2.4 (701) Consolidated net income 237,190 7.2 233,109 7.2 4,081 Less: Net income attributable to noncontrolling interests 17,619 0.6 14,540 0.4 3,079 Net income attributable to Canon Inc. 219,571 6.6 218,569 6.8 1,002 Consolidated statement of comprehensive income Millions of yen Nine months ended September 30, 2025 Nine months ended September 30, 2024 Change Consolidated net income 237,190 233,109 4,081 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 7,581 15,557 (7,976) Net unrealized gains and losses on securities 36 44 (8) Net gains and losses on derivative instruments 555 476 79 Pension liability adjustments 2,454 4,284 (1,830) 10,626 20,361 (9,735) Comprehensive income (loss) 247,816 253,470 (5,654) Less: Comprehensive income (loss) attributable to noncontrolling interests 17,207 14,774 2,433 Comprehensive income (loss) attributable to Canon Inc. 230,609 238,696 (8,087) - 8 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED 3. Consolidated Statement of Cash Flows Nine months ended September 30, 2025 Nine months ended September 30, 2024 Cash flows from operating activities: Consolidated net income 237,190 233,109 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization 173,413 172,788 Loss on disposal of fixed assets 439 752 Deferred income taxes (22,001) (15,753) Decrease in trade receivables 58,587 24,231 Increase in inventories (71,485) (88,179) Decrease (increase) in lease receivables 15,172 (14,026) (Decrease) increase in trade payables (8,056) 44,933 Decrease in accrued income taxes (35,349) (1,290) Increase in accrued expenses 1,823 27,086 Decrease in accrued pension and severance cost (14,950) (25,073) Other, net (51,230) 4,427 Net cash provided by operating activities 283,553 363,005 Cash flows from investing activities: Purchases of fixed assets (183,144) (172,946) Proceeds from sale of fixed assets 2,432 3,401 Purchases of securities (9,010) (5,307) Proceeds from sale and maturity of securities 6,502 3,624 Acquisitions of businesses, net of cash acquired (878) (32,672) Other, net (4,331) 723 Net cash used in investing activities (188,429) (203,177) Cash flows from financing activities: Proceeds from issuance of long-term debt 200,000 100,000 Repayments of long-term debt (1,842) (1,745) (Decrease) increase in short-term loans related to financial services, net (700) 2,100 Increase in other short-term loans, net 360,000 240,000 Dividends paid (147,644) (141,530) Repurchases and reissuance of treasury stock, net (300,013) (200,024) Other, net (11,253) (8,959) Net cash provided by (used in) financing activities 98,548 (10,158) Effect of exchange rate changes on cash and cash equivalents 399 (403) Net change in cash and cash equivalents 194,071 149,267 Cash and cash equivalents at beginning of period 501,565 401,323 Cash and cash equivalents at end of period 695,636 550,590 Millions of yen - 9 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED 4. Note for Going Concern Assumption Not applicable. 5. Segment Information Segment information by business unit (1) Consolidated statement of income, depreciation and amortization, and capital expenditures by business unit Results for the third quarter Millions of yen Three months ended September 30, 2025 Three months ended September 30, 2024 Change Change(%) Printing Net sales: External customers 602,489 609,152 (6,663) - 1.1 Intersegment 1,497 1,725 (228) - 13.2 Total 603,986 610,877 (6,891) - 1.1 Cost of sales 335,895 331,876 4,019 + 1.2 Gross profit 268,091 279,001 (10,910) - 3.9 Research and development expenses 23,094 23,586 (492) - 2.1 Selling, general and administrative expenses 192,799 194,709 (1,910) - 1.0 Operating profit 52,198 60,706 (8,508) - 14.0 Other income (deductions) 3,589 2,845 744 + 26.2 Income before income taxes 55,787 63,551 (7,764) - 12.2 Depreciation and amortization 17,807 16,137 1,670 + 10.3 Capital expenditures 18,605 15,124 3,481 + 23.0 Medical Net sales: External customers 132,595 132,112 483 + 0.4 Intersegment 272 218 54 + 24.8 Total 132,867 132,330 537 + 0.4 Cost of sales 70,232 70,092 140 + 0.2 Gross profit 62,635 62,238 397 + 0.6 Research and development expenses 11,524 12,585 (1,061) - 8.4 Selling, general and administrative expenses 44,752 44,992 (240) - 0.5 Operating profit 6,359 4,661 1,698 + 36.4 Other income (deductions) 299 277 22 + 7.9 Income before income taxes 6,658 4,938 1,720 + 34.8 Depreciation and amortization 3,550 3,261 289 + 8.9 Capital expenditures 2,764 3,972 (1,208) - 30.4 Imaging Net sales: External customers 253,504 239,488 14,016 + 5.9 Intersegment 105 86 19 + 22.1 Total 253,609 239,574 14,035 + 5.9 Cost of sales 121,377 107,916 13,461 + 12.5 Gross profit 132,232 131,658 574 + 0.4 Research and development expenses 26,276 23,494 2,782 + 11.8 Selling, general and administrative expenses 67,848 64,549 3,299 + 5.1 Operating profit 38,108 43,615 (5,507) - 12.6 Other income (deductions) 884 890 (6) - 0.7 Income before income taxes 38,992 44,505 (5,513) - 12.4 Depreciation and amortization 5,975 5,193 782 + 15.1 Capital expenditures 11,440 8,105 3,335 + 41.1 Industrial Net sales: External customers 84,838 68,742 16,096 + 23.4 Intersegment 531 1,406 (875) - 62.2 Total 85,369 70,148 15,221 + 21.7 Cost of sales 48,402 35,814 12,588 + 35.1 Gross profit 36,967 34,334 2,633 + 7.7 Research and development expenses 7,785 6,611 1,174 + 17.8 Selling, general and administrative expenses 15,241 13,723 1,518 + 11.1 Operating profit 13,941 14,000 (59) - 0.4 Other income (deductions) 559 375 184 + 49.1 Income before income taxes 14,500 14,375 125 + 0.9 Depreciation and amortization 4,155 2,944 1,211 + 41.1 Capital expenditures 4,564 4,423 141 + 3.2 - 10 -
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Millions of yen Three months ended September 30, 2025 Three months ended September 30, 2024 Change Change(%) Others and Corporate Net sales: External customers 30,898 30,312 586 + 1.9 Intersegment 24,463 23,603 860 + 3.6 Total 55,361 53,915 1,446 + 2.7 Cost of sales 43,616 44,487 (871) - 2.0 Gross profit 11,745 9,428 2,317 + 24.6 Research and development expenses 13,867 15,014 (1,147) - 7.6 Selling, general and administrative expenses 20,755 18,977 1,778 + 9.4 Operating profit (22,877) (24,563) 1,686 - Other income (deductions) (1,546) (13,229) 11,683 - Income before income taxes (24,423) (37,792) 13,369 - Depreciation and amortization 33,183 31,908 1,275 + 4.0 Capital expenditures 28,642 16,548 12,094 + 73.1 Eliminations Net sales: External customers - - - - Intersegment (26,868) (27,038) 170 - Total (26,868) (27,038) 170 - Cost of sales (27,208) (26,740) (468) - Gross profit 340 (298) 638 - Research and development expenses - - - - Selling, general and administrative expenses 22 (43) 65 - Operating profit 318 (255) 573 - Other income (deductions) (2) - (2) - Income before income taxes 316 (255) 571 - Depreciation and amortization - - - - Capital expenditures - - - - Consolidated Net sales: External customers 1,104,324 1,079,806 24,518 + 2.3 Intersegment - - - - Total 1,104,324 1,079,806 24,518 + 2.3 Cost of sales 592,314 563,445 28,869 + 5.1 Gross profit 512,010 516,361 (4,351) - 0.8 Research and development expenses 82,546 81,290 1,256 + 1.5 Selling, general and administrative expenses 341,417 336,907 4,510 + 1.3 Operating profit 88,047 98,164 (10,117) - 10.3 Other income (deductions) 3,783 (8,842) 12,625 - Income before income taxes 91,830 89,322 2,508 + 2.8 Depreciation and amortization 64,670 59,443 5,227 + 8.8 Capital expenditures 66,015 48,172 17,843 + 37.0 * In order to manage the performance of each reportable segment more appropriately, Canon has changed its performance management method regarding intercompany transactions for Industrial Business Unit from the beginning of the first quarter of 2025. Operating results for the three months ended September 30, 2024 have also been reclassified. * Canon has modified the presentation of segment information in accordance with the requirements set forth in ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures, from the fourth quarter of 2024. Operating results for the three months ended September 30, 2024 have also been reclassified. *Corporate expenses include certain corporate research and development expenses. Amortization costs of identified intangible assets resulting from the purchase price allocation of Toshiba Medical Systems Corporation (Canon Medical Systems Corporation) are also included in corporate expenses. - 11 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED Segment information by business unit Results for the nine months Millions of yen Nine months ended September 30, 2025 Nine months ended September 30, 2024 Change Change(%) Printing Net sales: External customers 1,820,795 1,839,975 (19,180) - 1.0 Intersegment 4,768 5,680 (912) - 16.1 Total 1,825,563 1,845,655 (20,092) - 1.1 Cost of sales 989,660 989,541 119 + 0.0 Gross profit 835,903 856,114 (20,211) - 2.4 Research and development expenses 69,885 73,690 (3,805) - 5.2 Selling, general and administrative expenses 563,835 577,004 (13,169) - 2.3 Operating profit 202,183 205,420 (3,237) - 1.6 Other income (deductions) 13,600 10,649 2,951 + 27.7 Income before income taxes 215,783 216,069 (286) - 0.1 Depreciation and amortization 47,146 46,499 647 + 1.4 Capital expenditures 53,198 50,571 2,627 + 5.2 Medical Net sales: External customers 411,580 407,071 4,509 + 1.1 Intersegment 579 466 113 + 24.2 Total 412,159 407,537 4,622 + 1.1 Cost of sales 225,543 219,266 6,277 + 2.9 Gross profit 186,616 188,271 (1,655) - 0.9 Research and development expenses 35,768 37,547 (1,779) - 4.7 Selling, general and administrative expenses 132,697 134,992 (2,295) - 1.7 Operating profit 18,151 15,732 2,419 + 15.4 Other income (deductions) 569 640 (71) - 11.1 Income before income taxes 18,720 16,372 2,348 + 14.3 Depreciation and amortization 10,106 9,841 265 + 2.7 Capital expenditures 10,487 12,705 (2,218) - 17.5 Imaging Net sales: External customers 726,093 659,614 66,479 + 10.1 Intersegment 280 225 55 + 24.4 Total 726,373 659,839 66,534 + 10.1 Cost of sales 342,090 298,673 43,417 + 14.5 Gross profit 384,283 361,166 23,117 + 6.4 Research and development expenses 78,250 72,388 5,862 + 8.1 Selling, general and administrative expenses 197,605 189,897 7,708 + 4.1 Operating profit 108,428 98,881 9,547 + 9.7 Other income (deductions) 2,938 2,239 699 + 31.2 Income before income taxes 111,366 101,120 10,246 + 10.1 Depreciation and amortization 15,800 14,563 1,237 + 8.5 Capital expenditures 30,313 27,877 2,436 + 8.7 Industrial Net sales: External customers 242,797 226,404 16,393 + 7.2 Intersegment 2,412 4,355 (1,943) - 44.6 Total 245,209 230,759 14,450 + 6.3 Cost of sales 139,715 127,613 12,102 + 9.5 Gross profit 105,494 103,146 2,348 + 2.3 Research and development expenses 23,007 21,166 1,841 + 8.7 Selling, general and administrative expenses 42,459 38,016 4,443 + 11.7 Operating profit 40,028 43,964 (3,936) - 9.0 Other income (deductions) 1,860 1,061 799 + 75.3 Income before income taxes 41,888 45,025 (3,137) - 7.0 Depreciation and amortization 9,639 8,211 1,428 + 17.4 Capital expenditures 12,480 8,654 3,826 + 44.2 - 12 -
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Millions of yen Nine months ended September 30, 2025 Nine months ended September 30, 2024 Change Change(%) Others and Corporate Net sales: External customers 101,626 103,047 (1,421) - 1.4 Intersegment 70,392 65,885 4,507 + 6.8 Total 172,018 168,932 3,086 + 1.8 Cost of sales 137,594 132,650 4,944 + 3.7 Gross profit 34,424 36,282 (1,858) - 5.1 Research and development expenses 39,256 41,009 (1,753) - 4.3 Selling, general and administrative expenses 62,283 63,463 (1,180) - 1.9 Operating profit (67,115) (68,190) 1,075 - Other income (deductions) (7,172) (458) (6,714) - Income before income taxes (74,287) (68,648) (5,639) - Depreciation and amortization 90,722 93,674 (2,952) - 3.2 Capital expenditures 76,056 75,377 679 + 0.9 Eliminations Net sales: External customers - - - - Intersegment (78,431) (76,611) (1,820) - Total (78,431) (76,611) (1,820) - Cost of sales (79,434) (78,023) (1,411) - Gross profit 1,003 1,412 (409) - Research and development expenses - - - - Selling, general and administrative expenses 323 581 (258) - Operating profit 680 831 (151) - Other income (deductions) (1) - (1) - Income before income taxes 679 831 (152) - Depreciation and amortization - - - - Capital expenditures - - - - Consolidated Net sales: External customers 3,302,891 3,236,111 66,780 + 2.1 Intersegment - - - - Total 3,302,891 3,236,111 66,780 + 2.1 Cost of sales 1,755,168 1,689,720 65,448 + 3.9 Gross profit 1,547,723 1,546,391 1,332 + 0.1 Research and development expenses 246,166 245,800 366 + 0.1 Selling, general and administrative expenses 999,202 1,003,953 (4,751) - 0.5 Operating profit 302,355 296,638 5,717 + 1.9 Other income (deductions) 11,794 14,131 (2,337) - 16.5 Income before income taxes 314,149 310,769 3,380 + 1.1 Depreciation and amortization 173,413 172,788 625 + 0.4 Capital expenditures 182,534 175,184 7,350 + 4.2 (2) Total assets by business unit Millions of yen As of September 30, 2025 As of December 31, 2024 Change Printing 1,311,059 1,354,948 (43,889) Medical 416,869 421,453 (4,584) Imaging 453,504 425,515 27,989 Industrial 253,014 238,625 14,389 Others and Corporate 3,582,421 3,329,047 253,374 Eliminations (2,857) (3,342) 485 Consolidated 6,014,010 5,766,246 247,764 * In order to manage the performance of each reportable segment more appropriately, Canon has changed its performance management method regarding intercompany transactions for Industrial Business Unit from the beginning of the first quarter of 2025. Operating results for the nine months ended September 30, 2024 have also been reclassified. * Canon has modified the presentation of segment information in accordance with the requirements set forth in ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures, from the fourth quarter of 2024. Operating results for the nine months ended September 30, 2024 have also been reclassified. *Corporate expenses include certain corporate research and development expenses. Amortization costs of identified intangible assets resulting from the purchase price allocation of Toshiba Medical Systems Corporation (Canon Medical Systems Corporation) are also included in corporate expenses. - 13 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED 6. Details of Sales Results for the third quarter Millions of yen Sales by business unit Three months ended September 30, 2025 Three months ended September 30, 2024 Change(%) % % Printing 603,986 54.7 610,877 56.6 - 1.1 Medical 132,867 12.0 132,330 12.3 + 0.4 Imaging 253,609 23.0 239,574 22.2 + 5.9 Industrial 85,369 7.7 70,148 6.5 + 21.7 Others and Corporate 55,361 5.0 53,915 5.0 + 2.7 Eliminations (26,868) (2.4) (27,038) (2.6) - Total 1,104,324 100.0 1,079,806 100.0 + 2.3 Millions of yen Sales by region Three months ended September 30, 2025 Three months ended September 30, 2024 Change(%) % % Japan 217,824 19.7 213,109 19.7 + 2.2 Overseas: Americas 358,268 32.4 355,087 32.9 + 0.9 Europe 296,567 26.9 285,264 26.4 + 4.0 Asia and Oceania 231,665 21.0 226,346 21.0 + 2.3 886,500 80.3 866,697 80.3 + 2.3 Total 1,104,324 100.0 1,079,806 100.0 + 2.3 Results for the nine months Millions of yen Sales by business unit Nine months ended September 30, 2025 Nine months ended September 30, 2024 Change(%) % % Printing 1,825,563 55.3 1,845,655 57.0 - 1.1 Medical 412,159 12.5 407,537 12.6 + 1.1 Imaging 726,373 22.0 659,839 20.4 + 10.1 Industrial 245,209 7.4 230,759 7.1 + 6.3 Others and Corporate 172,018 5.2 168,932 5.2 + 1.8 Eliminations (78,431) (2.4) (76,611) (2.3) - Total 3,302,891 100.0 3,236,111 100.0 + 2.1 Millions of yen Sales by region Nine months ended September 30, 2025 Nine months ended September 30, 2024 Change(%) % % Japan 698,867 21.2 693,447 21.4 + 0.8 Overseas: Americas 1,058,292 32.0 1,032,639 31.9 + 2.5 Europe 866,131 26.2 841,170 26.0 + 3.0 Asia and Oceania 679,601 20.6 668,855 20.7 + 1.6 2,604,024 78.8 2,542,664 78.6 + 2.4 Total 3,302,891 100.0 3,236,111 100.0 + 2.1 Notes:1. The primary products included in each of the segments are as follows: Printing Business Unit : Digital continuous feed presses / Digital sheet-fed presses / Large format printers / Office multifunction devices (MFDs) / Document solutions / Laser multifunction printers (MFPs) / Laser printers / Inkjet printers / Image scanners / Calculators Medical Business Unit : Computed tomography (CT) systems / Diagnostic ultrasound systems / Diagnostic X-ray systems / Magnetic resonance imaging (MRI) systems / Digital radiography systems / Ophthalmic equipment / In vitro diagnostic systems and reagents / Healthcare IT solutions 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 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 * In order to manage the performance of each reportable segment more appropriately, Canon has changed its performance management method regarding intercompany transactions for Industrial Business Unit from the beginning of the first quarter of 2025. Operating results for the three and nine months ended September 30, 2024 have also been reclassified. - 14 -
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CANON INC. AND SUBSIDIARIES CONSOLIDATED 7. Note on Significant Changes in Shareholders’ Equity None. 8. Basis of Presentation and Significant Accounting Policies Canon’s quarterly consolidated financial statements are prepared in accordance with Article 5, Paragraph 4 of the Standards for Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, the Nagoya Stock Exchange, the Sapporo Securities Exchange, and the Fukuoka Stock Exchange, and in accordance with U.S. generally accepted accounting principles. However, the omission of details, as stipulated in Article 5, Paragraph 5 of the Standards for Preparation of Quarterly Financial Statements, has been applied. Canon also applies mutatis mutandis to Paragraph 3 of the Supplementary Provisions of the Cabinet Office Ordinance for Partial Amendment of the Regulations on Terminology, Forms and Preparation Methods of Consolidated Financial Statements (the Cabinet Office Ordinance No.11 of 2002) in compiling its quarterly consolidated financial statements. - 15 -