Canon Marketing Japan Incorporated · TSE:8060
Canon Marketing Japan — FY2018 Earnings Presentation
29 slides from Canon Marketing Japan's earnings presentation, Jan 30, 2019
Slide 1: FY2018 Results
FY2018 Results January 30, 2019 Yoshiyuki Matsusaka Director, Senior Vice President * The figures are rounded off to the nearest 100 million yen in this material. * Forward-looking statements and results forecasts presented in this material are based on the management’s assumptions using currently a
Slide 2: Summary of 2018 4Q Results
Summary of 2018 4Q Results Net sales ¥173.7 B (Y/Y -2.3B, -1%) Although we achieved increased sales in the Enterprise and the Area segment where IT Solution remained steady, the Consumers and Professional segments posted decreased sales, resulting in lower net sales. Operating Income ¥13.0 B (Y/Y +
Slide 3: Summary of Results 4Q 2018 Actual
Summary of Results 4Q 2018 Actual (from October 1 to December 31) (Billions of yen) Summary of Results 4Q 2017 4Q 2018 Changes Amount % Net sales 175.9 173.7 -2.3 -1% (34.8%) (35.2%) (+0.4%) Gross profit 61.2 61.1 -0.1 -0% (6.8%) (7.5%) (+0.7%) Operating income 12.0 13.0 +1.0 +9% (6.9%) (7.6%) (+0
Slide 4: Segment Outline 4Q 2018 Actual
Segment Outline 4Q 2018 Actual (from October 1 to December 31) (Billions of yen) 4Q 2017 4Q 2018 Changes Op. Op. Op. Net sales Net sales Net sales Income Income Income Consumers 57.0 7.0 53.9 7.0 -3.1 -0.0 Enterprise 46.5 2.3 48.6 2.9 +2.1 +0.6 Area 64.5 3.4 65.1 3.8 +0.6 +0.4 Professional 14.1 -0.7
Slide 5: Summary of Results FY 2018 Actual
Summary of Results FY 2018 Actual (from January 1 to December 31) (Billions of yen) Summary of Results FY FY Changes 2017 2018 Amount % Net sales 632.2 621.6 -10.6 -2% (35.4%) (35.1%) (-0.3%) Gross profit 223.8 218.2 -5.6 -3% (4.8%) (4.7%) (-0.2%) Operating income 30.4 28.9 -1.5 -5% (5.0%) (4.9%)
Slide 6: Segment Outline FY 2018 Actual
Segment Outline FY 2018 Actual (from January 1 to December 31) (Billions of yen) FY 2017 FY 2018 Changes Op. Op. Op. Net sales Net sales Net sales Income Income Income Consumers 166.3 12.7 150.2 7.3 -16.0 -5.3 Enterprise 177.6 7.7 187.7 9.6 +10.1 +1.9 Area 257.9 11.4 255.9 13.0 -2.0 +1.6 Professiona
Slide 7: Segment Information Consumers Segment
Segment Information Consumers Segment Net sales : 53.9 B (Y/Y -3.1B, -5%) Although mirrorless cameras remained steady, sales of digital interchangeable lens cameras declined overall. Inkjet printer sales also remained weak, resulting in decreased sales for the segment overall. Operating income 7.0
Slide 8: Segment Information Enterprise Segment
Segment Information Enterprise Segment Net sales : 48.6 B (Y/Y +2.1B, +5%) The solution business expanded, mainly for the financial and manufacturing sectors. The SI and data center businesses also remained strong, resulting in increased sales. Operating income 2.9B (Y/Y +0.6B, +27%) We secured
Slide 9: Segment Information Area Segment
Segment Information Area Segment Net sales : 65.1 B (Y/Y +0.6B, +1%) Although main hardware remained sluggish, IT solutions continued to increase, resulting in higher sales. Operating income 3.8 B (Y/Y +0.4B, +11%) We secured an increase in income following an increase in gross profits attributa
Slide 10: Segment Information Professional Segment
Segment Information Professional Segment Net sales : 12.4 B (Y/Y -1.7B, -12%) We recorded a decline in sales given a poor performance in Production Printing and Industrial Equipment. Operating income -0.3 B (Y/Y +0.4B, -%) Operating income rose mainly due to the improved gross profit ratio and t
Slide 11: Segment Information Professional Segment
Segment Information Professional Segment Net sales - Growth rate (Y/Y) FY2018 4Q Results (from October 1 to December 31) Production Printing -15% Industrial Equipment -38% Healthcare Business +10% Visual Solutions +0% Production Printing We posted lower sales due to a decline in high-speed continuo
Slide 12: Overall Sales of IT Solutions
Overall Sales of IT Solutions (Billions of Yen) Sales of IT Solutions by Segment 4Q 2017 4Q 2018 Changes Amount % Enterprise segment 28.9 31.1 +2.2 +8% Area segment 12.8 14.5 +1.7 +13% Other 5.8 6.5 +0.7 +12% Total 47.5 52.1 +4.6 +10% FY 2017 FY 2018 Changes Amount % Enterprise segment 108.5 119.0
Slide 13: Summary of Projections
Summary of Projections (Billions of Yen) 【Reference】 FY2019 FY2018 Changes Projection Actual Amount % Net Sales 622.0 621.6 +0.4 +0% (4.9%) (4.7%) (+0.1%) Operating Income 29.5 28.9 +0.6 +2% (4.9%) (4.9%) (-0.0%) Ordinary Income 30.7 30.5 +0.2 +1% Profit attributable to (3.4%) (3.4%) (+0.0%) owners
Slide 14: Comparison of impact by reclassification of actual results for 2018
Comparison of impact by reclassification of actual results for 2018 FY2018 Before reclassification v. After reclassification (Billions of Yen) FY2018 FY2018 Before reclassification After reclassification Op. Op. Net Sales Op. Net Sales Net Sales Income Income Amount Income Consumers 150.2 7.3 150.2
Slide 15: Summary of Projections by Segment
Summary of Projections by Segment (Billions of Yen) FY2019 Projection v. FY2018 Actual FY2018 FY2019 Changes Actual Projection Op. Op. Net Sales Op. Net Sales Net Sales Income Income Amount % Income Consumers 150.2 7.3 138.8 6.9 -11.4 -8% -0.4 Enterprise 188.2 8.7 190.0 9.7 +1.8 +1% +1.0 Area 257.6
Slide 16: Earnings Forecast: Segment Information (1)
Earnings Forecast: Segment Information (1) Consumers ■While we make efforts for further expansion of sales of mirrorless cameras, net sales are expected to be 138.8 billion yen, 8% decrease year on year due to the declining performance for DSLR cameras and inkjet printers. ■While we aim to focus on
Slide 17: Earnings Forecast: Segment Information (2)
Earnings Forecast: Segment Information (2) Area ■ Net sales are expected to be 262.9 billion yen, a 2% increase year on year due to the increased sales with the release of new Office MFP and sales expansion in IT Solutions. ■ The consumables business is likely to be affected by the reduced number of
Slide 18: Supplementary Information
Supplementary Information
Slide 19: Capital Relationship Diagram
Capital Relationship Diagram Canon Marketing Japan Inc. 50.11% Canon Inc. 背面 174,762 73,303 92.00% SuperStream Inc. 100 100% Canon IT Solutions Inc. 90.00% Qualysite Technologies Inc. 3,617 100 87.50% Canon Software America,Inc. 100% Edifist Learning Inc. US$0.8 million 100 100% Canon Control System
Slide 20: Results of main consolidated companies
Results of main consolidated companies (Billions of Yen) 4Q FY2017 4Q FY2018 Changes Amount % Enterprise Canon IT Solutions Inc. Net sales 22.7 23.3 +0.7 +3% Op. income 1.5 (6.5%) 2.3 (10.0%) +0.9 (+3.5%) Area Canon System & Support Inc. Net sales 28.8 29.2 +0.4 +1% Op. income 1.1 (3.7%) 1.2 (4.0%)
Slide 21: Results of main consolidated companies
Results of main consolidated companies (Billions of Yen) Changes FY2017 FY2018 Amount % Enterprise Canon IT Solutions Inc. Net sales 84.7 89.6 +4.9 +6% Op. income 5.4 (6.4%) 7.4 (8.3%) +2.0 (+1.9%) Area Canon System & Support Inc. Net sales 119.0 117.4 -1.6 -1% Op. income 3.4 (2.9%) 3.9 (3.3%) +0.5
Slide 22: SG&A expenses
SG&A expenses (Billions of Yen) FY 2017 FY 2018 Changes 4Q FY 4Q FY 4Q FY Advertising expenses 2.4 8.5 2.6 8.4 +0.2 -0.0 Promotion expenses 1.8 5.2 1.2 4.4 -0.6 -0.8 Warranty expenses 1.3 5.2 1.2 4.8 -0.1 -0.4 Other direct selling expenses 5.2 20.4 5.1 19.5 -0.1 -0.8 Personnel expenses 30.6 123.1 30
Slide 23: Non-operating income and expenses
Non-operating income and expenses (Billions of Yen) Non-operating income FY 2017 FY 2018 Changes 4Q FY 4Q FY 4Q FY Interest income 0.0 0.2 0.0 0.2 +0.0 +0.0 Dividend income 0.0 0.1 0.0 0.2 +0.0 +0.0 Insurance income 0.0 0.5 0.0 0.5 -0.0 -0.0 Gain on investments in partnership - - 0.0 0.5 +0.0 +0.5
Slide 24: Extraordinary income and expenses
Extraordinary income and expenses (Billions of Yen) Extraordinary income FY 2017 FY 2018 Changes 4Q FY 4Q FY 4Q FY Gain on sales of fixed assets 0.0 0.9 0.0 0.1 -0.0 -0.8 Gain on sales of investments - 0.5 - 0.5 - -0.1 in securities Gain on sales of shares of subsidiaries and associates - - - 0.2
Slide 25: Balance Sheets
Balance Sheets (Billions of Yen) Dec. 31 Dec. 31 Changes Notes and accounts receivable trade 2017 2018 Notes and accounts receivable trade Turnover (days) Assets 510.8 498.8 -12.0 71 69 70 70 Current assets 397.5 387.2 -10.3 67 Cash and deposits 137.0 135.6 -1.4 Notes and accounts receivable 125.6
Slide 26: Financial Indicator
Financial Indicator (Billions of Yen) Operating income ratio / ROA / ROE 7.2% 6.9% 6.7% 6.5% 5.7% 4.8% 4.7% 4.7% 4.4% 4.1% 4.1% 4.2% 3.7% 4.1% 3.2% Profit attributable to owners of parent 20.7 20.8 20.9 15.7 18.2 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 25 Forecast
Slide 27: Financial Indicator
Financial Indicator Payout Ratio / EPS / Dividend per share Payout Ratio 37% 38% 37% 37% Dividend per share : EPS : Yen Yen 36% 159 161 161 140 121 60 60 60 45 50 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Forecast 26
Slide 28: Financial Indicator
Financial Indicator (Billions of Yen) Investment Cash Flow Full Year FY 2017 13.7 36.8 28.9 FY 2018 10.7 FY 2019 20.8 6.5 8.0 17.0 Depreciation and amortization -10.5 Full Year FY FY 2017 2018 FY 2017 14.3 FY 2018 13.3 FY 2019 13.1 27
Slide 29: Canon
Canon Canon Marketing Japan Inc.