News Release

March 17, 2016
Canon Inc.

Canon Inc. to make Toshiba Medical Systems Corporation a subsidiary

TOKYO, Japan, March 17, 2016—Canon Inc. ("Canon"; Headquarters: Tokyo, Japan; Chairman, President and CEO: Fujio Mitarai) announced today that it has concluded a share transfer agreement with Toshiba Corporation ("Toshiba"; Headquarters: Tokyo, Japan; President and CEO: Masashi Muromachi) concerning the acquisition from Toshiba of shares of Toshiba Medical Systems Corporation ("TMSC"; Headquarters: Tochigi Prefecture, Japan; President: Toshio Takiguchi) to make TMSC a Canon subsidiary. This transaction is conditional upon the clearance of necessary competition regulatory authorities.

Under Phase V of its Excellent Global Corporation Plan, a five-year initiative launched in 2016, Canon aims to embrace the challenge of new growth through a grand strategic transformation. With regard to reinforcing and expanding new businesses in particular, which represents one of the important strategies to be carried out during this phase, Canon intends to cultivate its health care business within the safety and security sector as a next-generation pillar of growth.

TMSC is one of the leading global companies in the medical equipment industry. Within the field of medical X-ray computed tomography (CT) systems in particular, TMSC is the overwhelming market share leader in Japan and has been steadily increasing its global market share. Additionally, TMSC is the only company in the industry with a broad product portfolio that spans diagnostic X-ray systems, magnetic resonance imaging (MRI) systems, diagnostic ultrasound systems and diagnostic nuclear medicine systems. The company also offers cutting-edge medical imaging solutions and in-vitro diagnostics aimed at individualized care.

Through the agreement announced today, TMSC, with its world-class technological capabilities and global platform, will be welcomed into the Canon Group. By maximizing the combination of both companies' management resources, Canon aims to solidify its business foundation for health care that can contribute to the world.

The inclusion of TMSC into the Canon Group is expected to make possible the following benefits.

Accelerated entry into new fields

By maximizing the application of both Canon and TMSC's management resources, Canon will be able to leverage TMSC's core strength in imaging diagnostics, further reinforcing TMSC's operational strength in its in-vitro diagnostics business and next-generation medical IT through M&A and other strategic investment, to make possible the strengthening of Canon's biomedical business. Additionally, by making use of Canon's business portfolio and partnerships, further progress is expected in the field of medical equipment.

Further improvements in quality through shared production technology

A collaborated effort between Canon, with its advanced production technologies, and TMSC, with its exceptional product development capabilities, is expected to lead to further enhancing TMSC's product strength through the provision of precision design and microfabrication technologies, an optimized production system and cooperation aimed at improving quality. This will not only enable the sale of price-competitive products in the market, but also contribute to the development of the health care business through the circulation of funds generated through enhanced management efficiency applied toward investing in the development of next-generation medical equipment.

Expanded business domains through enhanced development capabilities

Canon possesses proprietary high-speed dynamic X-ray imaging sensor technology, among other imaging devices, along with associated elemental technologies; photoacoustic tomography technology selected by Japan's national ImPACT program; medical robotic system technologies and minimally invasive technologies. Through the promotion of joint technology development leveraging these Canon technologies and TMSC's R&D capabilities, the Canon Group will be able to globally provide innovative new products and services in the future.

Overview of Toshiba Medical Systems Corporation

1) Company name: Toshiba Medical Systems Corporation
2) President: Toshio Takiguchi
3) Headquarters: 1385 Shimoishigami, Otawara-shi, Tochigi-ken, JAPAN
4) Date of establishment: September 23, 1948
5) Scope of business: Development, manufacture, sale and technical services for medical equipment (including diagnostic X-ray systems, medical X-ray CT systems, magnetic resonance imaging systems, diagnostic ultrasound systems, radiation therapy systems, diagnostic nuclear medicine systems, medical sample testing equipment, and information systems for medical equipment) 6) Operating results for FY2015
Net sales: 279,967 million yen
Operating profit: 17,700 million yen
Net income: 15,849 million yen

Number of shares to be acquired and acquisition price

134,980,000 shares of Toshiba Medical Systems common stock, approximately 665.5 billion yen (ratio of ownership voting rights: 100%)


1) Resolution of the Board of Directors: March 17, 2016
2) Contract date of the agreement: March 17, 2016
3) Date of common stock acquisition: To be determined

Outlook for the future

With regard to the impact of this transaction on Canon's operating results, should the need arise to revise business forecasts and/or announce any other matter, such information shall be promptly disclosed.