Slide 1: Canon Inc. First Quarter 2022 Results
Canon Inc. First Quarter 2022 Results April 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 1Q 2022 Results P2 - 4 FY 2022 Projection P5 - 7 Details by Business P8 - 14 (1Q 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 (1Q 2022 Results)
Key Message (1Q 2022 Results) Accelerated inflation, Ukraine crisis - Global economy uncertainty 5th consecutive quarter of sales growth as products supplied as planned Achieved increase in profit, even amid raising costs, thanks to solid revenue base 1Q 2022 1Q 2021 (Billions of yen) % Change
Slide 4: FY 2022 Financial Results by Business Unit
FY 2022 Financial Results by Business Unit (1Q 2022 Actual versus 1Q 2021 Actual) Printing - Increased sales and maintained double-digit profitability Imaging - Increased sales, but decrease in profit due to one-off expenses 1Q 2022 1Q 2021 (Billions of yen) % Change Actual Actual Net Sales 504.
Slide 5: FY 2022 Operating Profit Analysis
FY 2022 Operating Profit Analysis (1Q 2022 Actual versus 1Q 2021 Actual) Positive impact as yen depreciates against U.S. dollar Negative impact of cost increase partially offset with pricing FX Details (Billions of yen) Net Sales: +35.2 Cost of Sales: -16.7 Op. Expenses: -7.5 Change in Net Sales
Slide 6: FY 2022 Financial Projection
FY 2022 Financial Projection (Full Year) Demand remains strong. Availability of parts gradually improving from second half of year Raised sales projection by 110.0 billion yen to reflect expectation for yen weakness Expect double-digit profit growth as negative impact of cost increase is absor
Slide 7: FY 2022 Financial Projection by Business Unit
FY 2022 Financial Projection by Bus. Unit (Full Year) All Business Units - Sales and profit growth Printing, Imaging, and Industrial & Others - Double-digit profitability FY 2022 FY 2022 FY 2021 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 2,25
Slide 8: FY 2022 Operating Profit Analysis
FY 2022 Operating Profit Analysis (FY 2022 Current Projection versus Previous Projection) FX - Positive impact from yen's depreciation Absorb rise in international shipping and other costs through pricing FX Details Net Sales: +88.7 (Billions of yen) Cost of Sales: -45.8 Op. Expenses: -17.7 Chan
Slide 9: Printing - Office
Printing - Office Continuing situation of product supply not catching up with demand Expand hardware sales by focusing on product supply and turning backorders into sales (Billions of yen) 1Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Actual Change Actual Change Change
Slide 10: Printing - Prosumer
Printing - Prosumer 1Q: Increase in Prosumer sales as production and sales were both in line with plan FY: Double-digit sales growth by launching new products that capture user needs (Billions of yen) 1Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Actual Change Actual C
Slide 11: Printing - Production
Printing - Production Recovery in sales through further strengthening of product lineup and enhancement of sales network Acquired U.K. based Edale to facilitate full-scale entry into industrial printing market (Billions of yen) 1Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Ac
Slide 12: Imaging - Cameras
Imaging - Cameras FY: Expect 5% market growth to 5.65 million units Announced new RF lenses in February. Will continue to promote lineup enhancement going forward FY: Sales and profit growth by securing parts to increase production volume (Billions of yen) 1Q Full Year 2022 2022 2022 2021 % 20
Slide 13: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others Expect double-digital network camera market growth to continue Aiming for market exceeding growth of over 15% by responding to robust demand (Billions of yen) 1Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Actual Change Actual Change C
Slide 14: Medical
Medical Achieved 7th consecutive quarter of sales growth. Expect to beat last year's record performance this year Launch of first product that strategically integrates Canon's Imaging and Medical technologies (Billions of yen) 1Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Act
Slide 15: Industrial & Others
Industrial & Others Semiconductor Lithography Equipment - Significant increase in first quarter and full year unit sales FPD lithography equipment - Solid demand. Raised unit sales projection by one (Billions of yen) 1Q Full Year 2022 2022 2022 2021 % 2021 % Amount Current Previous Actual Actual
Slide 16: Inventory
Inventory Increase in inventory due to securing materials and raising production volume Expect inventory to gradually come down due to stabilization of product supply (Billions of yen) FY 2021 FY 2022 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Amt. 237.3 232.0 269.2 285.5 324.7 Printing Days 4
Slide 17: Cash Flow
Cash Flow (Full Year) Generate 495.0 billion yen in operating cash flow, over 40 billion yen more than last year Repay debt while allocating sufficient funds to growth investment FY 2022 FY 2022 FY 2021 FY 2020 Current Previous Actual Actual (Billions of yen) Projection Projection Net cash provi
Slide 18: Sustainability Measures
Sustainability Measures Issued report that includes enhanced information about value creation Create Value Through Technology Detect cracks in infrastructure through image processing and AI Significant improves work efficiency compared to conventional visual method Development of world's f
Slide 19: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI Good start in second year of our plan with sales and profit growth in the first quarter Maintain momentum through the year and move closer to achieving performance targets (Net Sales: Trillions of yen) (Operating Profit: Billions of yen) 5 1,000 Over 4,
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: +240.3 (Billions of yen) Imaging: +63.7 Medical: +5.5 Industrial & Others: +35.9 Eliminations: -4.2 FX Details Total: +341.2 Net Sales: +112.2 Cost o
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 1Q Full Year 1Q Full Year Actual Projection Actual Actual Hardware -4% +31% +9% +7% JPY Non-hardware +6% +12% -21% +3% Office MFDs Hardware -9% +27% +7% +3% LC Non-hardware +3% +10% -22% 0% Hardware +7% +44% +3% +2% JPY N
Slide 23: Office/Prosumer – Net Sales by Product Category
Office/Prosumer – Net Sales by Product Category (Billions of yen) FY 2022 FY 2021 1Q Full Year 1Q Full Year Actual Projection Actual Actual Office MFDs 117.2 577.4 115.8 478.4 Office Others 77.8 303.6 69.2 278.7 195.0 881.0 185.0 757.1 LPs 150.2 676.5 136.9 563.1 Prosumer IJPs 86.3 374.3 84.1 329.4