Slide 1: Canon Inc. FY 2013 Results
Canon Inc. FY 2013 Results January 29, 2014 Toshizo Tanaka Executive Vice President & CFO This presentation 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 forme
Slide 2: Agenda
Agenda 4Q/FY 2013 Results P3 – 5 FY 2014 Projections P6 – 9 Details by Business P10 – 15 (4Q/FY 2013 Results and FY 2014 Projections) Financial Situation P16 – 18 Supplementary Information P19 – 24 January 29, 2014 Canon Inc. 2
Slide 3: FY 2013 in Summary
FY 2013 in Summary External Environment Global economic slowdown due to weakness in Europe and sluggish growth in China Challenging conditions across our businesses as well Correction of excessive yen appreciation Results Achieved full-year sales and profit growth for the first time in three
Slide 4: Summary of Results
Summary of Results 4Q/FY 2013 Actual (Billions of yen) 4Q FY 2013 2012 Pct. 2013 2012 Pct. Actual Actual Change Actual Actual Change Net Sales 1,034.7 951.4 +8.8% 3,731.4 3,479.8 +7.2% Gross Profit 488.0 432.4 +12.9% 1,798.4 1,650.0 +9.0% (% Sales) 47.2% 45.4% 48.2% 47.4% Op. Profit 93.5 77.7 +20.4%
Slide 5: Transition in Sales and Op. Profit
Transition in Sales and Op. Profit FY 2013 Actual v. Projection (Billions of yen) Sales Op. Profit FY 2013 Projection (Oct. 24, 2013) 3,750.0 360.0 Foreign Exchange Impact Change in Exchange Rate +32.8 +18.1 (Net Sales, Cost of Sales, Expenses) •1USD: 96.95 to 97.84 yen •1EURO: 128.24 to 130.01 yen
Slide 6: Assumptions
Assumptions FY 2014 Projection Average FY14 FY13 Exchange Rate Yen-1USD 100.00 yen 97.84 yen Yen-1EURO 135.00 yen 130.01 yen Impact of Exchange Rate Movement (FY14 Impact Given a One Yen Change) Net Sales Operating Profit USD 16.8 billion yen 6.4 billion yen EURO 7.0 billion yen 3.4 billion
Slide 7: Key Points
Key Points FY 2014 Projection External Environment Gradual global economic recovery Recovering conditions across our businesses from the second half Outlook Return to a path of growth, posting second consecutive year of sales and profit expansion • For Office and Industry & Others Expand sales
Slide 8: Summary of Projected Results
Summary of Projected Results FY 2014 Projection (Billions of yen) FY 2014 FY 2013 Pct. Change Projection Actual Net Sales 3,850.0 3,731.4 +3.2% Gross Profit 1,877.0 1,798.4 +4.4% (% Sales) 48.8% 48.2% Op. Profit 360.0 337.3 +6.7% (% Sales) 9.4% 9.0% Net Income Attributable to Canon Inc. 240.0 230.5
Slide 9: Transition in Sales and Op. Profit
Transition in Sales and Op. Profit FY 2014 Projection v. FY 2013 Actual (Billions of yen) Sales Op. Profit FY 2013 Actual 3,731.4 337.3 Change in Exchange Rate Foreign Exchange Impact •1USD: 97.84 to 100.00 yen +55.4 +13.4 •1EURO: 130.01 to 135.00 yen (Net Sales, Cost of Sales, Expenses) Sales Volum
Slide 10: Office
Growth Rate y/y (Unit Base) Color Ratio Office Copiers 4Q13 FY13 Printers 4Q13 FY13 Copiers Printers 4Q13 FY13 4Q13 FY13 Color +10% +8% +37% +16% Value Base* 56% 55% 47% 47% 2013 Actual Monochrome +1% -6% +20% +13% Unit Base 38% 37% 14% 14% Total +4% -2% +22% +14% (Billions of yen) 800 Sales *Includ
Slide 11: Office
Office FY 2014 Projection Growth Rate y/y (Billions of yen) 3,000 Sales ( ) Local Currency Base Op. Profit Monochrome Copiers Color Copiers Office Total Growth Rate y/y Op. Profit (Billions of yen) Printers Others 2,500 +5.7%(+3.5%) Op. Profit Ratio +7.2% 2,115 2,000 Others 2,000 1,758 +8.6%(+6.4%)
Slide 12: Imaging System
Growth Rate y/y (Unit Base) Interchangeable Lens Imaging System Interchangeable Lens 4Q13 -6% FY13 -7% Digital Camera Ratio * 4Q13 FY13 Digital Cameras Value Base 81% 81% 2013 Actual Compact Digital -20% -28% Unit Base 35% 37% Cameras * Proportion of Total Digital Cameras -16% -21% (Billions of yen)
Slide 13: Imaging System
Imaging System FY 2014 Projection (Billions of yen) 2,500 Sales Growth Rate y/y Op. Profit ( ) Local Currency Base Op. Profit (Billions of yen) Cameras IJP Others Op. Profit Ratio 2,000 Imaging System Growth Rate y/y -4.2%(-6.1%) 1,449 1,388 -3.8% 1,500 1,406 IJP 1,000 +5.9%(+3.8%) 15.0% 14.1% 14.1%
Slide 14: Industry and Others
Industry and Others Lithography Equipment (Unit Sales) IC Stepper Unit Breakdown by Light Source 4Q12 FY12 4Q13 FY13 2013 Actual 4Q12 FY12 4Q13 FY13 ArF 0 0 0 0 IC 6 46 16 43 KrF 0 3 4 6 Growth Rate y/y i-line 6 43 12 37 FPD 1 16 16 16 (Billions of yen) 180 Sales ( ) Local Currency Base 20 30.0% Sal
Slide 15: Industry and Others
Industry and Others FY 2014 Projection Growth Rate y/y ( ) Local Currency Base (Billions of yen) Sales Industry and Others Op. Profit 600 Net Sales 40 20.0% Sales Eliminations Lithography Equipment Op. Profit (Billions of yen) Others +21.6%(+21.0%) 352 Op. Profit Ratio 15.0% Net Sales 323 289 400 Gr
Slide 16: Inventories
Inventories (Billions of yen) 800 Amount (Billions of yen) 90 Turnover (Days) 700 63 61 60 70 56 57 57 59 52 46 608 50 600 591 589 582 554 542 552 554 30 500 477 10 -10 400 -30 300 -50 4QE11 1QE12 2QE12 3QE12 4QE12 1QE13 2QE13 3QE13 4QE13 January 29, 2014 Canon Inc. 16
Slide 17: Capital Expenditure and Free Cash Flow
Capital Free Cash Flow Expenditure (Billions of yen) (Billions of yen) 1,000 1,000 Increase in PP&E Operating C/F Net Income Attributable to Canon Inc. Free C/F Depreciation Investing C/F 750 750 500 500 215 230 240 249 257 225 213 171 515 507 250 250 470 384 300 275 270 270 261 258 257 250 227 213
Slide 18: Cash on Hand and Return to Shareholders
Cash on Hand and Return to Shareholders Cash on Hand (Year-end) Dividend (Billions of yen) 1500 5 200 120.0% Cash-on hand (Billions of yen) Regular Dividend Cash-on-hand 110.0% Commemorative Dividend marking the 75th (In months of 2nd-half net sales, except FYE14, 103.1% 4 Anniversary of the Company
Slide 19: Supplementary Information
Supplementary Information January 29, 2014 Canon Inc. 19
Slide 20: Transition in Sales and Operating Profit
Transition in Sales and Operating Profit 4Q/FY 2013 Actual v. 4Q/FY 2012 Actual (Billions of yen) 4Q FY Sales Op. Profit Sales Op. Profit 2012 Actual 951.4 77.7 3,479.8 323.9 Change in Exchange Rate(4Q) Foreign Exchange Impact +146.9 +60.5 +514.0 +217.6 •1USD: 81.26 to 100.50 yen (Net Sales, Cost of
Slide 21: Gross Profit Variance Analysis
Gross Profit Variance Analysis 4Q 2013 Actual v. 4Q 2012 Actual (Billions of yen) 4Q13 4Q12 Change (Billions of yen) Gross Profit 488.0 432.4 +55.6 % Sales 47.2% 45.4% +1.8pt. 200 146.9 100 55.6 12.7 0 -23.5 -37.5 -43.0 -100 -200 Forex Sales Price Forex Cost Total Impact Volume Change Impact Reducti
Slide 22: Operating Profit Variance Analysis
Operating Profit Variance Analysis 4Q 2013 Actual v. 4Q 2012 Actual (Billions of yen) 4Q13 4Q12 Change Op. Profit 93.5 77.7 +15.8 (Billions of yen) % Sales 9.0% 8.2% +0.8pt. 200 100 55.6 15.8 3.6 0 -43.4 -100 -200 Total Change in Change in Total Change in SG & A SG & A Change in Gross Profit (Exclud
Slide 23: Interest Bearing Debt
Interest Bearing Debt (Billions of yen) 50 5.0% Debt Debt/Total Assets 40 4.0% 30 3.0% 20 2.0% 11 12 10 10 1.0% 4 3 0.3% 0.3% 0.3% 0.1% 0.1% 0 0.0% FYE09 FYE10 FYE11 FYE12 FYE13 Supplementary Information January 29, 2014 Canon Inc. 23
Slide 24: Financial Ratios
Financial Ratios (Yen) 900 15% 9.6% 600 9.2% 10% 8.7% 8.4% 8.2% 6.3% 6.3% 5.7% 5.6% 5.6% 300 5% 199.71 204.49 191.34 200.78 211.08 0 0% FY10 FY11 FY12 FY13 FY14 Projection EPS(Basic) ROE ROA (Attributable to Canon Inc.) Supplementary Information January 29, 2014 Canon Inc. 24