Slide 1: Third Quarter 2022 Results
Canon Inc. Third Quarter 2022 Results October 26, 2022 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 formed by available information. All sta
Slide 2: Agenda
Agenda 3Q 2022 Results P2 - 4 FY 2022 Projection P5 - 7 Details by Business P8 - 14 (3Q 2022 Results & FY 2022 Projection) Financial Situation P15 - 16 Sustainability Measures P17 Excellent Global Corporation Plan Phase VI P18 Supplementary Information P19 - 21 1
Slide 3: Key Message (3Q 2022 Results)
Key Message (3Q 2022 Results) Growth in product supply leads to increase in unit sales and 7th consecutive quarter of revenue growth Significant increase in operating profit, even amid rise in costs, thanks to sales volume increase, yen depreciation, and price adjustment 3Q 2022 3Q 2021 (Billion
Slide 4: FY 2022 Financial Results by Business Unit
FY 2022 Financial Results by Business Unit (3Q 2022 Actual versus 3Q 2021 Actual) All Business Units achieve revenue growth. Printing, due to decline in non- hardware sales, only Business Unit to post lower profit Imaging and Industrial & Others post double-digit profitability 3Q 2022 3Q 2021 %
Slide 5: FY 2022 Operating Profit Analysis
FY 2022 Operating Profit Analysis (3Q 2022 Actual versus 3Q 2021 Actual) FX – Positive impact due to significant yen depreciation Increase in product supply leads to growth in sales volume, a factor behind significant profit growth FX Details (Billions of yen) Net Sales: +104.3 Cost of Sales: -5
Slide 6: FY 2022 Financial Projection
FY 2022 Financial Projection (Full Year) Softening demand for printing due to economic slowdown, but demand in other businesses remains solid Significantly expand fourth-quarter sales and achieve 4.09 trillion yen for the full year Raised projection for operating profit to 385 billion yen (Pro
Slide 7: FY 2022 Financial Projection by Bus. Unit
FY 2022 Financial Projection by Bus. Unit (Full Year) Plan for sales and profit growth in all Business Units Lowered projection for Printing, but thanks to significant improvement in Imaging, raised operating profit projection for entire company FY 2022 FY 2022 FY 2021 Amount (Billions of yen) C
Slide 8: FY 2022 Operating Profit Analysis
FY 2022 Operating Profit Analysis (FY 2022 Current Projection versus Previous Projection) FX – Revised assumptions for U.S. dollar and euro, following yen depreciation Sales Volume – Negative impact due to lower projection for non-hardware sales Op. Expense – Improvement, largely thanks to low
Slide 9: Printing - Office
Printing - Office Increased production volume in third quarter. Plan to significantly expand sales in the fourth quarter, with a focus on medium- to high-speed color models Print volume recovering to about 80% of pre-COVID level in fourth quarter (Billions of yen) 3Q Full Year 2022 2022 2022 202
Slide 10: Printing - Prosumer
Printing - Prosumer 3Q – Double-digit unit sales growth, but actual demand appears to be decreasing as work from home tops out Plan to expand printer sales in fourth quarter, and link this to consumable sales from next year (Billions of yen) 3Q Full Year 2022 2022 2022 2021 % 2021 % Amount Curre
Slide 11: Printing - Production
Printing - Production Highly evaluated for productivity and from TCO perspective, orders increasing Effectively promote installation of large equipment in fourth quarter to advance sales (Billions of yen) 3Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Actual Change Actu
Slide 12: Imaging - Cameras
Imaging - Cameras 3Q – Significant growth in revenue thanks to increase in product supply volume, and addition of new products that incorporate APS-C size sensors Maintain high profitability by stimulating demand through strengthening of EOS R series lineup (Billions of yen) 3Q Full Year 2022 20
Slide 13: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others Second consecutive quarter of double-digit revenue growth in third quarter, full year sales to exceed 200 billion yen Plan to expand business scale by broadening diversified product lineup (Billions of yen) 3Q Full Year 2022 2022 2022 2021 % 2021 % Amount Curre
Slide 14: Medical
Medical Orders, which were mainly for large equipment, reached record high at end of September Aim to exceed 500 billion yen in full-year sales by advancing production, transportation, and installation (Billions of yen) 3Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Act
Slide 15: Industrial & Others - Litho. Equip./Industrial Equip.
Industrial & Others - Litho. Equip./Industrial Equip. Decided to build new plant for semiconductor lithography equipment to meet growing demand Prepare for expanding demand for OLED panels (Billions of yen) 3Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Actual Change Ac
Slide 16: Inventory
Inventory Increase in inventory of finished goods at end of September connected to sales expansion in fourth quarter Parts shortage eased, inventory held by manufacturing plants optimized by year end as production stabilizes (Billions of yen) FY 2021 FY 2022 Mar.-end Jun.-end Sep.-end Dec.-end M
Slide 17: Cash Flow
Cash Flow (Full Year) Continue to generate over 400 billion yen in operating cash flow Decided to build new plant in Utsunomiya. Will continue to make growth investment a top priority FY 2022 FY 2022 FY 2021 FY 2020 Current Previous Actual Actual (Billions of yen) Projection Projection Net cash
Slide 18: Sustainability Measures
Sustainability Measures Under slogan of Nature Positive, undertake ecological conservation activities Living Water Forests Organisms • Protect endangered • Remove non-native • Promote green space in business sites species species • Tree management for • Insect (Butterfly) • Cleanup beaches disaste
Slide 19: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI Maintained growth even under unstable business conditions, thanks to diversified business portfolio and high percentage of overseas sales and domestic production. Moving close to achieving 2025 targets (Net Sales: Trillions of yen) (Operating Profit: Bill
Slide 20: Supplementary Information
Supplementary Information
Slide 21: FY 2022 Operating Profit Analysis
FY 2022 Operating Profit Analysis (FY 2022 Current Projection versus FY 2021 Actual) Change in Net Sales, excluding FX impact, for reference Printing: +117.0 Imaging: +50.3 (Billions of yen) Medical: +4.5 Industrial & Others: +31.8 Eliminations: -23.5 FX Details Total: +180.1 Net Sales: +362.4 Cost
Slide 22: Printing – Net Sales Growth Rate Y/Y (Hardware & Non-hardware)
Printing – Net Sales Growth Rate Y/Y (Hardware & Non-hardware) FY 2022 FY 2021 3Q Full Year 3Q Full Year Actual Projection Actual Actual Hardware +75% +40% -11% +7% JPY Non-hardware +14% +10% +4% +3% Office MFDs Hardware +54% +26% -14% +3% LC Non-hardware +3% +1% +1% 0% Hardware +53% +36% -19% +2% J
Slide 23: Office/Prosumer – Net Sales by Product Category
Office/Prosumer – Net Sales by Product Category (Billions of yen) FY 2022 FY 2021 3Q Full Year 3Q Full Year Actual Projection Actual Actual Office MFDs 150.6 592.2 107.6 478.4 Office Others 78.9 322.7 66.8 278.7 229.5 914.9 174.4 757.1 LPs 151.5 655.8 137.1 563.1 Prosumer IJPs 77.5 367.6 78.5 329.4