Slide 1: Second Quarter 2022 Results
Canon Inc. Second Quarter 2022 Results July 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 state
Slide 2: Agenda
Agenda 2Q 2022 Results P2 - 4 FY 2022 Projection P5 - 7 Details by Business P8 - 14 (2Q 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 (2Q 2022 Results)
Key Message (2Q 2022 Results) Despite growing uncertainty about global economy, demand for our products remained firm 2Q - Increased product supply led to 6th consecutive quarter of Y/Y sales growth Even amid cost increase, achieved double-digital growth in operating profit, by adjusting price
Slide 4: FY 2022 Financial Results by Business Unit
FY 2022 Financial Results by Business Unit (2Q 2022 Actual versus 2Q 2021 Actual) Posted sales and profit growth in all Business Units Medical - Highest second quarter profitability to date 7.0% 2Q 2022 2Q 2021 % Change Actual Actual Net Sales 567.5 489.6 +15.9% Printing Op. Profit 66.6 63.8 +4.
Slide 5: FY 2022 Operating Profit Analysis
FY 2022 Operating Profit Analysis (2Q 2022 Actual versus 2Q 2021 Actual) Positive impact from significant depreciation of the yen against the U.S. dollar and euro Covered impact of cost increase through price adjustment FX Details (Billions of yen) Net Sales: +81.2 Cost of Sales: -33.2 Op. Expen
Slide 6: FY 2022 Financial Projection (Full Year)
FY 2022 Financial Projection (Full Year) Despite expectation that demand will remain firm, lowered unit sales projection to reflect new round of parts shortages Partially absorb impact of lower unit sales by adjusting prices and improving product mix. Thanks to this and yen depreciation, raised
Slide 7: FY 2022 Financial Projection by Bus. Unit
FY 2022 Financial Projection by Bus. Unit (Full Year) Post sales and profit growth in all Business Units Medical – Surpass record performance of last year, profitability at 7.9% FY 2022 FY 2022 FY 2021 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sal
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 Increase in parts cost as securing volume is prioritized, but absorbing impact through price adjustment (Billions of yen FX Deta
Slide 9: Printing - Office
Printing - Office 2Q – Posted increase in net sales, offsetting impact of unit sales decline through increased sales of medium- and high-speed MFDs and price adjustment FY – Aiming for double-digit sales growth by increasing production volume and through recovery in print volume (Billions of yen
Slide 10: Printing - Prosumer
Printing - Prosumer 2Q – Posted significant increase in hardware sales, but production volume below plan due to Shanghai’s COVID lockdown FY – Aiming to raise production volume as much as possible in 2H and significantly expand unit sales for the full year (Billions of yen) 2Q Full Year 2022 202
Slide 11: Printing - Production
Printing - Production Solid orders for high-speed continuous feed and cut sheet printing equipment Continued steady growth in non-hardware sales thanks to growth in MIF (Billions of yen) 2Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Actual Change Actual Change Change P
Slide 12: Imaging - Cameras
Imaging - Cameras 2Q – Despite decline in unit sales due to supply shortage, achieved double-digit increase in net sales thanks to growth in both full-frame camera and interchangeable lens sales FY - Expand user base through EOS R7 and EOS R10, first R system cameras that incorporate APS-C size
Slide 13: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others 2Q – Achieved strong double-digit growth in net sales as product supply volumes recovered FY – Work to enhance solutions, starting cloud service for large corporations in Japan (Billions of yen) 2Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous
Slide 14: Medical
Medical 2Q – Achieved 8th consecutive quarter of Y/Y net sales growth and raised operating profit ratio to 7.0% FY – With record high orders, sales plan of 500.0 billion yen Acquired dealer in July. Strengthening sales capability to facilitate aim of 10% mkt. shr. in U.S. (Billions of yen) 2Q
Slide 15: Industrial & Others - Litho. Equip./Industrial Equip.
Industrial & Others - Litho. Equip./Industrial Equip. Semiconductor lithography equipment – Significantly grow full-year sales to 180 units, and promote production capacity expansion FPD lithography equipment – Post sales of 56 units even amid lockdown impact (Billions of yen) 2Q Full Year 2022
Slide 16: Inventory
Inventory Inventory of sales companies – Decreases as supply falls short of solid demand Increases in work-in-process due to production delay and lithography equipment being installed, optimized by year-end (Billions of yen) FY 2021 FY 2022 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end A
Slide 17: Cash Flow (Full Year)
Cash Flow (Full Year) Generate 255.0 billion yen in free cash flow, exceeding last year Raised full-year dividend projection to 120 yen while promoting repayment of debt FY 2022 FY 2022 FY 2021 FY 2020 Current Previous Actual Actual (Billions of yen) Projection Projection Net cash provided by op
Slide 18: Sustainability Measures
Sustainability Measures Nanoimprint - Prize of Excellence at Environmental Awards Outstanding Promote environmental performance Smart Society ・Consumes Approx. one-tenth the energy × ・Technology that supports ・Conserve water resources etc. semiconductor production Protect and preserve Create new v
Slide 19: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI Raise performance, even in challenging business environment, supported by solid demand and strong foundation to generate profit Raising net sales to 4 trillion yen and profit to its highest in 10 years as we work towards achieving 2025 targets (Net Sale
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: +185.3 Imaging: +42.3 (Billions of yen) Medical: +2.6 Industrial & Others: +40.3 Eliminations: -13.5 FX Details Total: +257.0 Net Sales: +272.2 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 2Q Full Year 2Q Full Year Actual Projection Actual Actual Hardware +10% +40% +47% +7% JPY Non-hardware +7% +10% +35% +3% Office MFDs Hardware -1% +29% +40% +3% LC Non-hardware +0% +3% +30% 0% Hardware +47% +44% +4% +2% JP
Slide 23: Office/Prosumer – Net Sales by Product Category
Office/Prosumer – Net Sales by Product Category (Billions of yen) FY 2022 FY 2021 2Q Full Year 2Q Full Year Actual Projection Actual Actual Office MFDs 138.2 590.6 127.2 478.4 Office Others 77.3 313.5 66.6 278.7 215.5 904.1 193.8 757.1 LPs 176.2 676.5 141.4 563.1 Prosumer IJPs 87.7 393.4 82.8 329.4