Slide 1: Canon Inc. First Quarter 2026 Results
Canon Inc. First Quarter 2026 Results April 23, 2026 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 state
Slide 2: Agenda
Agenda ◼ 1Q 2026 Results P 2-5 ◼ FY 2026 Projection P 6-10 ◼ Financial Situation P 11-13 ◼ Summary P 14 ◼ Supplementary Information P 15-20 1
Slide 3: 1Q 2026 Review
1Q 2026 Review ◼ Trend of postponed investment due to additional U.S. tariffs and rise in geopolitical risks continued, compounded by deteriorating situation in Middle East ◼ While Printing Group significantly impacted by weak market conditions, demand for cameras and network cameras remained strong
Slide 4: P&L (1Q 2026 Results)
P&L (1Q 2026 Results) ■Gross Profit Ratio 2026 2025 % Change 1Q 2025 47.3% (Billions of yen) Actual Actual FX Impact +1.7pt Net Sales 1,093.7 1,058.4 +3.3% Selling Price +0.1pt Cost Increase -0.3pt Gross Profit 505.3 500.9 +0.9% Tariff Impact -0.9pt (% of Net Sales) 46.2% 47.3% Product Mix -1.7pt To
Slide 5: 1Q 2026 Operating Profit Analysis
1Q 2026 Operating Profit Analysis (1Q 2026 Actual versus 1Q 2025 Actual) Change in Net Sales, excluding FX impact, for reference (Billions of yen) Printing: -41.8 Medical: -0.2 Imaging: +16.8 Industrial: -2.4 Tariff Impact Others: -3.0 Total: -30.6 Cost: -19.1 +18.7 Pricing: +17.5 +1.5 +0.8 -33.5 -5
Slide 6: 1Q 2026 Financial Results by Business Unit
1Q 2026 Financial Results by Business Unit 2026 2025 % Change (Billions of yen) Actual Actual Net Sales 610.5 611.0 -0.1% Printing Op. Profit 59.9 73.1 -18.0% (%) (9.8%) (12.0%) Net Sales 142.1 137.3 +3.4% Medical Op. Profit 5.2 6.7 -22.2% (%) (3.7%) (4.9%) Net Sales 245.9 212.1 +15.9% Imaging Op. P
Slide 7: 2026 Outlook
2026 Outlook 2026 global situation uncertain and hard to forecast <Key Assumptions> ◼ Memory needed for this year mostly secured, but expect a negative impact of approximately 50 billion yen ◼ Impact on sales through May, assuming early resolution of Middle East situation ◼ Potential increases in ra
Slide 8: 2026 Financial Projection (Full Year)
2026 Financial Projection (Full Year) 2026 2025 2026 Amount Current % Change Previous (Billions of yen) Actual Change Projection Projection Net Sales 4,765.0 4,624.7 +3.0% 4,765.0 +0 Gross Profit 2,219.0 2,162.0 +2.6% 2,239.0 -20.0 (% of Net Sales) 46.6% 46.7% 47.0% Op. Expenses 1,763.0 1,706.6 1,76
Slide 9: 2026 Operating Profit Analysis
2026 Operating Profit Analysis (FY 2026 Current Projection versus FY 2026 Previous Projection) Change in Net Sales, excluding FX (Billions of yen) impact, for reference Printing: -14.0 Medical: -15.3 Tariff Impact Imaging: +13.0 -0.1 Cost: +13.3 Industrial: -0.8 Pricing: -3.9 Others: Total: -17.2 +9
Slide 10: Review of Business Structure
Review of Business Structure (Billions of yen) 2025 2026 2026 Full year Full year Full 1Q 1Q Current Previous Year Projection Projection Sales Cost -1.2 -7.9 -0.7 -14.4 -17.2 Structural Effect 5.0 22.0 0.8 4.7 11.5 Reform PL Impact 3.8 14.1 0.1 -9.7 -5.7 Production Cost -0.9 -14.7 -0.8 -12.4 -14.2 S
Slide 11: 2026 Financial Projection by Business Unit
2026 Financial Projection by Business Unit (Full Year) 2026 2025 2026 Amount Current % Change Previous (Billions of yen) Actual Change Projection Projection Net Sales 2,526.8 2,494.4 +1.3% 2,532.9 -6.1 Printing Op. Profit 254.5 255.8 -0.5% 257.4 -2.9 (%) (10.1%) (10.3%) (10.2%) Medical Net Sales 601
Slide 12: Inventory
Inventory ◼ Leverage inventory built up since end of peak selling season of last year to support sales expansion from 2Q ◼ Maintain supply chain and aim to reduce inventory turnover to below 60 days by end of 2026 2025 2026 Change (Amt: Billions of yen) Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end v
Slide 13: Cash Flow (Full Year)
Cash Flow (Full Year) ◼ Generate 600.0 billion yen in operating CF, well above last year ◼ Continue to invest in future growth and pursue active shareholder returns 2026 2025 2024 Current (Billions of yen) Actual Actual Projection Net income 333.0 332.1 325.1 Depreciation and amortization 230.0 239.
Slide 14: Return on Capital
Return on Capital ◼ ROE for 2026 projected to be 9.8% ◼ Continue initiatives to improve return on capital in order to achieve Phase VII targets 14% ROE 12% PBR 9.4% (4.8% including 9.7% 9.8% 10% Impairment Loss) 7.9% 8.1% 8.2% 1.4x 8% 1.2x 1.1x 1.0x 6% 0.8x Cost of Capital 5% to 6％ 4% 0.9x 3.2% 2% 0
Slide 15: Summary
Summary ◼ In 2026 – first year of five-year plan – further enhance quality of management to drive additional growth Net Sales Operating Profit （Billions of yen） (Trillions of yen) 6 1,200 5.6T 4.77T 5.0T 5 1,000 Net Sales 4.51T 4.62T 4.18T 4.03T 4 800 3.51T 3 456.0B 600 Operating 455.4B Profit 444.9
Slide 16: Supplementary Information
Supplementary Information
Slide 17: 2026 Operating Profit Analysis (FY2025 Actual versus FY2026 Projection)
2026 Operating Profit Analysis (FY 2025 Actual versus FY 2026 Projection) (Billions of yen) Tariff Impact Cost: -37.4 Pricing: +39.5 +61.8 +8.2 -6.2 +26.1 -22.6 -5.4 +2.1 -63.4 Change in Net Sales, excluding FX impact, for reference Printing: -25.1 FX Details Medical: +12.2 Net Sales: +81.8 +75.2 45
Slide 18: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 99.3 99.9 -0.6% 468.3 437.3 +7.1% 480.3 -12.0 Office Office MFDs 154.6 149.2 +3.6% 643.9 631.6
Slide 19: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales Net Sales Growth Rate of Printing Hardware & Non-hardware 2026 2025 Full Year Full Year 1Q 1Q Projection Actual Hardware -12% +12% +1% -4% JPY Non-hardware +5% +4% +1% +1% Production Hardware -18% +10% 0% -5% LC Non-hardware -3% +1% 0% 0% Hardware 0% +4% -4% -5
Slide 20: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 142.1 137.3 +3.4% 601.4 580.6 +3.6% 616.1 -14.7 Op. Profit 5.2 6.7 -22.2% 38.2 32.8 +16.6% 38.3
Slide 21: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 133.9 118.1 +13.4% 674.8 625.5 +7.9% 675.3 -0.5 Network Cameras & Others 112.0 94.0 +19.1% 483.7 4
Slide 22: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 45.7 50.5 -9.5% 260.1 256.4 +1.5% 256.6 +3.5 Industrial Equipment 21.3 17.0 +25.4% 10