Slide 1: Canon Inc. Corporate Strategy Conference 2017
Canon Inc. Corporate Strategy Conference 2017 March 6,, 2017 Fujio Mitarai, Chairman & CEO 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 form
Slide 2: Phase V Excellent Global Corporation Plan
Phase V Excellent Global Corporation Plan (Basic Policy) Embrace the challenge of new growth through a grand strategic transformation (Key Strategies) 1. Establish a new pproduction system y to achieve a cost-of-sales ratio of 45% 2. Reinforce and expand new businesses while creating future business
Slide 3: 2016 Achievements
2016 Achievements New Businesses meras mmerciaal Heaalthcaree equipmentt dustriall Networrk cam priinting Com Ind N Existing businesses Assembled 4 new core businesses 2
Slide 4: 2nd Yr. of Actions and Important Measures
Phase V 2nd Yr Yr. of Actions and Important Measures (F ndamental Policy) (Fundamental Polic ) Further p promote the ggrand strategic g transformation by accelerating reforms • Thoroughly bolster existing businesses • Strengthen and grow new businesses • Rebuild global sales network • Strengthen R&D
Slide 5: Strengthen and Grow New Businesses – Commercial Printing
Phase V – 2nd Yr. of Actions and Important Measures Strengthen and Grow New Businesses – Commercial Printing From Offset to Digital Expansion of Package Printing Printing Total print volume: 90 trillion yen Digital printing 18% Offset printing 14% 9% 2010 2015 2020 (Source: Market research firm) 4
Slide 6: Strengthen and Grow New Businesses – Network Cameras
Phase V – 2nd Yr. of Actions and Important Measures Strengthen and Grow New Businesses – Network Cameras Forecast for Network Camera Market Expanding use of Network Cameras Growth Advancement in Image analysis camera performance f + technology h l Solutions Accessories Expanding Usages Video mgmt. W
Slide 7: Offer high value-added solutions, strengthening both hardware and software
Phase V – 2nd Yr. of Actions and Important Measures Strengthen and Grow New Businesses – Network Cameras Anti-terror Anti terror Exercise Held at Canon Inc. Counting People in Designated Area Headquarters Offer high value-added solutions, strengthening both hardware and software 6
Slide 8: Strengthen and Grow New Businesses – Industrial Equipment
Phase V – 2nd Yr. of Actions and Important Measures Strengthen and Grow New Businesses – Industrial Equip. Equip Trend in Canon Canon’ss Industrial OLED Vacuum Evaporation Equip. Equip Equipment Net Sales Increasing substrate size G6 (Half-sized) Approx. 90 cm Approx. 4 G4.5 times larger ((Half-size
Slide 9: OLED Panel Market and Nanoimprint Semiconductor Equipment
Phase V – 2nd Yr. of Actions and Important Measures Strengthen and Grow New Businesses – Industrial Equip. Equip OLED Smartphone p Panel Market Expected p to Nanoimprint p Semiconductor Production Equipment q p Exceed LCD in 2018 Being Developed for use in Mass-production (Billions of dollars) 25 20
Slide 10: Strengthen and Grow New Businesses – Healthcare
Phase V – 2nd Yr. of Actions and Important Measures Strengthen and Grow New Businesses – Healthcare Markets expected to grow due to global pop. pop expansion Penetrating the “Safety & Security” area + Restart of new medical business 9
Slide 11: Strengthen and Grow New Businesses – Healthcare
Phase V – 2nd Yr. of Actions and Important Measures Strengthen and Grow New Businesses – Healthcare Working to expand nascent healthcare business Canon’s proprietary medical technology + TMSC’s R&D capability R&D off Cli Clinical i l Applications A li ti Computed Tomography (CT) X-Ray Ultrasound
Slide 12: Thoroughly Bolster Existing Businesses
Phase V – 2nd Yr. of Actions and Important Measures Thoroughly Bolster Existing Businesses Trend in Gross Profit Launch of new products (Trillions of yen) 2.0 60% (Exchange rate impact excluded) 11.5 5 50% Improvement in profitability thanks to launch of high value-added products 1.0 40% Share expan
Slide 13: Thoroughly Bolster Existing Businesses
Phase V – 2nd Yr. of Actions and Important Measures Thoroughly Bolster Existing Businesses Advancement of automation and in house production in-house Designs that assume automated assembly Cost reduction In-house In house Production of key parts & + Accumulation of key components proprietary t
Slide 14: Net Sales and Sales Ratio (FY15 – 20)
Phase V Net Sales and Sales Ratio (FY15 – 20) Trillions of yen Existing businesses New businesses CAGR +6% 4 CAGR +15% 15% 2 15% 13% New Business Ratio 0 2015 2016 2017 2018 2019 2020 Projection Projection Projection Projection 13
Slide 15: Canon
Canon