Canon Inc. · TSE:7751
Canon — Medical Group Business Strategy Conference 2025
29 slides from Canon's conference presentation, Mar 24, 2025
Slide 1: Medical Group Business Strategy Conference
Canon Inc. Medical Group Business Strategy Conference March 24, 2025 Toshio Takiguchi Executive Vice President Head of Medical Group This presentation contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and refle
Slide 2: Today's Agenda
Today’s Agenda １．Position of Medical Business within Canon ２．Environment ３．Outlook for Profitability Improvement in 2025 ４．Measures and Strategies from 2026 and after 1
Slide 3: Today's Agenda
Today’s Agenda １．Position of Medical Business within Canon ２．Environment ３．Outlook for Profitability Improvement in 2025 ４．Measures and Strategies from 2026 and after 2
Slide 4: From Founding of Canon to Acquisition of Toshiba Medical, and Organizational Integration
From Founding of Canon to Acquisition of Toshiba Medical, and Organizational Integration Entering Third Stage of Canon’s Medical Business Canon Medical Business 1.0 ■ In 1940, Canon develops Japan’s first domestically produced X-ray camera Canon Medical Business 2.0 ■ In 2016, Canon acquires Toshiba
Slide 5: Direction of Medical Group – Contribute to precision medicine
Direction of Medical Group – Contribute to precision medicine Current business areas Business expansion areas Exam and diagnostic Solutions that support personalized treatment In vitro diagnostics & Bio In vitro testing Realize Clinical Various reagents Pathological diagnosis Decision Support Liquid
Slide 6: Today's Agenda
Today’s Agenda １．Position of Medical Business within Canon ２．Environment ３．Outlook for Profitability Improvement in 2025 ４．Measures and Strategies from 2026 and after 5
Slide 7: Environment in Japan
Environment in Japan ■ Changes in demographics and medical demand towards 2040 Aging population and expanding medical needs Changes in disease structure and importance of preventive medicine ■ Hospital management environment ■ Market and industry trends Demand toward hospital management and cost eff
Slide 8: Environment in China
Environment in China ■ Impact of anti-corruption campaign on introduction of new technology reduced to certain extent ■ Continued weakness of Chinese economy ■ Healthcare area relatively stable over medium- to long-term due to government support and demand from aging population ■ Centralized purchas
Slide 9: Environment in the U.S.
Environment in the U.S. ■ Transition to “Value-based healthcare”* ■ Large-scale medical network（Integrated Delivery Network） ■ Complex public (Medicare & Medicaid) and private insurance framework ■ Diagnostic imaging equipment market – Continued stable growth ■ Demand for high-performance equipment
Slide 10: Today's Agenda
Today’s Agenda １．Position of Medical Business within Canon ２．Environment ３．Outlook for Profitability Improvement in 2025 ４．Measures and Strategies from 2026 and after 9
Slide 11: Outlook for Profitability Improvement in 2025
Outlook for Profitability Improvement in 2025 Operating ROS Operating profit (Billions of yen) profit improvement Measures etc. increase % impact 2024 operating profit (Actual) 24.7 ROS 4.3% Increase in op. Offer service solutions that Reform global service improve efficiency of customer profit due
Slide 12: Improve Global Service Business
Improve Global Service Business Accelerate offering of service solutions/Pursue operational efficiency Based on the philosophy of “Made for life” we will further accelerate the offering of better service solutions such as quality improvement and optimization of functions and performance so that medi
Slide 13: Strengthen Product Competitiveness CT & MRI Systems
Strengthen Product Competitiveness CT & MRI Systems ◼ Photon Counting CT ◼ Planned launch: End of FY25 ◼ Currently under evaluation at four influential sites ◼ 3-Tesla MRI around the world ◼ New hardware to leverage AI technology ◼ Improve sequent flexibility ◼ Commercialization of multi-position CT
Slide 14: Strengthen Product Competitiveness Ultrasound & X-ray systems
Strengthen Product Competitiveness Ultrasound & X-ray systems ◼ Expand diagnostic field (Strengthen collaboration with other cos. In gastrointestinal field) ◼ Image processing that utilizes AI ◼ Endoscope with build-in ultrasound ◼ Global expansion (Promotions to start in U.S.) ◼ Expand into POCUS*1
Slide 15: Enhance Sales Capability in U.S.
Enhance Sales Capability in U.S. Based on integrated platform in Cleveland, utilize products for new areas and AI applications to further strengthen and expand sales capability ◼ Further expand KOL network in U.S. Upstream marketing Medical business U.S. holding co. Canon Healthcare USA, INC. Clevel
Slide 16: Canon Medical Academy
Canon Medical Academy Established “Canon Medical Academy,” training centers in Japan, U.S., and Europe Under head office management, latest information is centralized and appropriate information is provided in a timely manner depending on business case 15
Slide 17: Regional Strategy (India and Near & Middle East)
Regional Strategy (India and Near & Middle East) Established local subsidiary in India Established local subsidiary in Saudi Arabia ◼ Established local subsidiary (Corporate registration) – Dec. 2022 ◼ Obtained sales license – Jun. 2023 ◼ Obtain import license – Jan. 2025, by completing compliance w
Slide 18: SCM Reform Working Group
SCM Reform Working Group Reform SCM (procurement, production, logistics) systems and processes Raise productivity, improve quality, and reduce costs Maximize use of Canon’s technology, quality control, and cost reduction ◼ ◼ ◼ Procurement Integrate procurement operating with head office reform ◼ Tho
Slide 19: Development Reform Working Group
Development Reform Working Group Improve development systems and processes Improve development efficiency and strengthen product competitiveness Utilizing Canon’s human resources in medical business divisions Comprehensively strengthen quality and efficiency of development by introducing Canon’s dev
Slide 20: P&L
P&L Net sales (Billions of yen) Operating profit ratio 700.0 8.0% Net sales Op. profit 6.7% 7.0% 600.0 6.1% 6.0% 5.7% 6.0% 500.0 4.3% 5.0% 400.0 4.0% 300.0 3.0% 568.8 590.0 480.4 513.3 553.8 200.0 2.0% 100.0 1.0% 29.4 31.0 31.6 39.5 24.7 0.0 0.0% 2021 2022 2023 2024 2025 (excludes impairment loss) 1
Slide 21: Results by Modality and by Region
Results by Modality and by Region With sales network of 15 major local subsidiaries and 90 agents, Imaging IVD & Component continue to grow while working closely with medical facilities in over 190 countries and regions around the world Billions of yen Billions of yen 700 700 Imaging IVD & Component
Slide 22: Today's Agenda
Today’s Agenda １．Position of Medical Business within Canon ２．Environment ３．Outlook for Profitability Improvement in 2025 ４．Measures and Strategies from 2026 and after 21
Slide 23: Measures & Strategies from 2026 and after
Measures & Strategies from 2026 and after Key measures for future growth ◼ Promote innovation ✓ Launch new products that drive growth (PCCT) ✓ Support diagnostic imaging that utilizes AI and other technologies, and raise workflow efficiency ◼ Strengthen portfolio management and expand business ✓ In
Slide 24: Canon PCCT Research System: Global Research and Goals
Canon PCCT Research System: Global Research and Goals ◼ Promoting early empirical research to realize "Global No. 1 Highest Image Quality and Low Exposure" ◼ Maximize awareness and expectations for Canon’s PCCT technology in global markets and academic circles to prepare for commercial product launc
Slide 25: Product Development Strategy Utilizing AI
Product Development Strategy Utilizing AI Collaborative imaging with AI Advanced diagnostic imaging solutions & collaboration with health care IT that consolidates clinical information as well as use of AI To realize further cost reduction and further raise the quality of patient outcomes 24
Slide 26: IVD Business Growth Strategy
IVD Business Growth Strategy Further strengthening existing businesses and expanding into adjacent business areas High- Composite performance Image×IVD testing device New mkt. analyzer Information systems Coagulation Immunology test Diagnostic support services testing device reagent Biopsy-less Exis
Slide 27: Operation Excellence
Operation Excellence Change to “Canon-style” Management Policy ◼ Reaping benefits of Medical Innovation Committee activities 1. Prepare business foundation 2. Strengthen manufacturing and development capabilities ◼ Prepare business ◼ Establish business HQ operations and strengthen governance foundat
Slide 28: Direction of Medical Group – Contribute to precision medicine
Direction of Medical Group – Contribute to precision medicine Current business areas Business expansion areas Exam and diagnostic Solutions that support personalized treatment In vitro diagnostics & Bio In vitro testing Realize Clinical Various reagents Pathological diagnosis Decision Support Liquid
Slide 29: Made for patients. Made for you. Made for partnerships.
Made for patients. Made for you Made for partnerships. 28
Canon — Medical Group Business Strategy Conference 2025 on 6ix