Canon Marketing Japan Incorporated · TSE:8060
Canon Marketing Japan — Q3 2022 Earnings Presentation
32 slides from Canon Marketing Japan's earnings presentation, 2022
Slide 1: Third Quarter 2022 Results Presentation
Hello, everyone. I am Hatsumi Hirukawa. Thank you very much for joining the results presentation meeting for the third quarter of fiscal year 2022, despite your busy schedules. We will be moving on to the results for the third quarter of 2022 and the projections.
Slide 2: Key points of third quarter results
On the second page, I will review the key points of the third quarter results. Sales for the third quarter rose 12% year on year to ¥138.2 billion, with all segments achieving higher sales figures. Operating income was up ¥3.9 billion to ¥10.0 billion. This figure also surged in all segments. Net in
Slide 3: Summary of third quarter results
The third page shows a summary of the results for the third quarter. The third quarter produced increases in both sales and income, in part due to a recovery in the supply of products and the continued strength of the IT Solutions business.
Slide 4: Operating income analysis for the third quarter
The fourth page shows an analysis of operating income for the third quarter. Due to the rise in net sales, gross profit increased by ¥5.3 billion. Looking at the gross profit ratio, while the sales prices of major Canon products have been maintained or increased, as a result of ongoing sales of a wi
Slide 5: Third quarter results by segment
The fifth page shows the summary of the results for the third quarter by segment. Both sales and income increased in all segments.
Slide 6: Year-to-date financial results
Page 6 onwards deals with year-to-date financial results. For the first nine months of 2022, we managed to surpass previous record highs for operating income, ordinary income and net income.
Slide 7: Operating income analysis for first nine months
Page 7 represents an analysis of operating income for the first nine months of the year. Due to the rise in net sales, gross profit increased by ¥10.4 billion. In the Consumers, Enterprise and Professional segments, gross profit ratio deteriorated slightly due to sales of a wide range of products. S
Slide 8: First nine months results by segment
Page 8 shows a summary of results for the first nine months by segment. Sales increased in all segments, and all segments recorded double-digit growth in operating income.
Slide 9: Consumers segment
On the ninth and subsequent pages, I will explain results by segment. First, we are looking at the Consumers segment. In the third quarter, sales rose 17% year on year to ¥31.2 billion in this segment. This mainly reflects an increase in sales of digital interchangeable lens cameras and IT products,
Slide 10: Enterprise segment
On the tenth page, I will explain the Enterprise segment. For the third quarter, sales increased 8% year on year to ¥48.5 billion, reflecting strong performance in the IT Solutions business. Operating income rose ¥500 million year on year to ¥3.4 billion following a rise in gross profit due to incre
Slide 11: Area segment
On the eleventh page, I will explain the Area segment. For the third quarter, sales rose 11% year on year to ¥54.4 billion in this segment, reflecting solid performance in IT Solutions in addition to a turnaround in the supply of main business equipment. Operating income increased by ¥1.7 billion to
Slide 12: Professional segment
On the twelfth page, I will explain the Professional segment. Sales for the third quarter were up 40% year on year to ¥9.4 billion. All subsegments achieved higher sales figures. Operating income also went up ¥700 million year on year to ¥1.1 billion, after growth in gross profit following the sales
Slide 13: Overall sales of IT solutions
The thirteenth page shows overall sales of IT solutions. In 2022, segment changes took place for some products. The 2021 results reflect this reclassification. I will explain the results for the third quarter. Conditions in the Enterprise and Area segments are as explained in the Segment Information
Slide 14: Summary of projections
The fourteenth page shows a summary of projections. Looking back at the situation up to the third quarter, amid various rising costs including purchase prices and logistics, we enhanced our ability to develop proposals, increased the percentage of high value-added products and services offered, and
Slide 15: New projections versus previous projections by segment
The fifteenth page compares our new projections and the previous ones. Both are on a segment-by-segment basis. Following the first half of the year, we saw strong performance with mirrorless cameras equipped with the EOS R system and interchangeable lenses in the Consumers segment, high value-added
Slide 16: Projections by segment versus prior year
The sixteenth page compares the projections by segment and results by segment for the previous fiscal year. Due to these latest revisions, we project increased sales and income in all segments.
Slide 17: Fourth quarter projections: Consumers segment
Page 17 includes a year-on-year comparison of actual figures for the first nine months of the year and projections for the fourth quarter. Let us take a look segment by segment. First, let us focus on the fourth quarter projections in the Consumers segment. Strong digital camera sales are expected a
Slide 18: Fourth quarter projections: Area segment
We will now be moving on to the fourth quarter projections in the Area segment. For main business equipment, sales of office MFPs and LBPs are forecast to rise thanks to recovering product supply. Office MFP maintenance services and LBP cartridges are also expected to see solid operation, especially
Slide 19: Annual dividend forecast
Page 18 shows our annual dividend forecast. In view of our projections for this year, we have decided to increase the forecast annual dividend by ¥5 from the previous ¥80 to ¥85
Slide 20: Canon Marketing Japan Inc.
Canon Canon Marketing Japan Inc.
Slide 21: Supplementary Information
Supplementary Information
Slide 22: Capital Relationship Diagram
Capital Relationship Diagram som Canon Marketing Japan Inc. || srs | entre 73,303 ‘Canon IT Solutions Inc. SuperStream Inc. 3,617, 100 ” ae 4,561 syo0% [Canon Software America, Inc. room [ABACO. IBN. USS0.8 milion | |_* _, Paeanieriectoreea (Shangh: tai) Inc. RMB15,571 millon 100% = anon TS Medea ag
Slide 23: Results of main consolidated companies: 3Q 2022
Results of main consolidated companies 3Q 2022 Actual (from July 1 to September 30) Canon (Billions of yen) Canon IT Solutions Inc. Net sales Op. income Canon System & Support Inc. Net sales Op. income Canon Production Printing Net sales Op. income Changes 3Q FY2022 Amount % 25.9 +2.1 +9% 2.3 (8.9%)
Slide 24: Results of main consolidated companies: 1Q-3Q 2022
Results of main consolidated companies 1Q-3Q 2022 Actual (from January 1 to September 30) Canon (Billions of yen) Canon IT Solutions Inc. Net sales Op. income Canon System & Support Inc. Net sales Op income Professional Canon Production Printing Net sales Op. income 1Q-3Q Changes 2022 Amount % 80.9
Slide 25: SG&A expenses: 3Q 2022 Actual
3Q 2022 Actual SG&A expenses (from July 1 to September 30) canon (Billions of yen) 3Q FY2021 3QFY2022 Changes Advertising expenses 1.6 0.9 -0.7 Promotion expenses 0.7 0.6 -0.0 Warranty expenses 0.7 0.7 +0.0 Other direct selling expenses 3.8 4.3 +0.4 Personnel expenses 23.5 22.5 -1.1 Depreciation and
Slide 26: SG&A expenses: 1Q-3Q 2022 Actual
1Q-3Q 2022 Actual Canon SG&A expenses (from January 1 to September 30) (Billions of yen) 1Q-3 1Q-3 aor ae Changes Advertising expenses 3.4 2.8 -0.7 Promotion expenses 2.0 1.9 -0.1 Warranty expenses 2.2 2.1 -0.1 Other direct selling expenses 12.5 12.6 +0.0 Personnel expenses 71.3 68.4 -2.9 Depreciati
Slide 27: Non-operating income and expenses
Non-operating income and expenses Canon (Billions of yen) FY2021 FY2022 Changes 3Q 1Q-3Q 3Q 1Q-3Q 3Q 1Q-3Q Interest income 0.1 0.2 0.1 0.2 +0.0 +0.0 Dividend income 0.0 0.1 0.0 0.1 +0.0 +0.0 Insurance income 0.0 0.5 0.0 0.4 -0.0 -0.1 Gain on investments in partnership 0.1 0.3 - - -0.1 -0.3 Other 0.0
Slide 28: Extraordinary income and losses
Extraordinary income and losses Canon (Billions of yen) FY2020 FY2022 Changes 3Q 1Q-3Q 3Q 1Q-3Q 3Q 1Q-3Q Gain on sales of fixed assets 0.0 0.0 0.0 0.0 +0.0 -0.0 Gain on sales of investments in securities 1.3 1.3 0.4 0.4 -0.9 -0.9 Gain on sales of shares of subsidiaries and associates - 0.9 = = - -0.
Slide 29: Balance Sheets
Balance Sheets @illions of yen) ne Assets 5264 532.3, +59 caret asst wo) s1 100 cash and deposi nn ey) Nes and accounts ecoabetade wr ors invents a other curet set) wer rst Non une asst 13 t82 a1 Property, plant and equipment 852 846 05 angie 2s 6s iverson or ats wr) a4 2a Cabs rere ea caret abies w
Slide 30: Financial Indicator
Financial Indicator Canon (Billions of yen) 8.2% uh) 6.9% 7.1% 6.6% 8.1% 5.2% 7.2% 47% 5.7% 6.3% 5.7% 41% 44% 49 ° bee Net income attributable to owners of parent —— Operating income ratio ——-ROE ---ROA —7 34.0 29.4 20.8 2222.33} 22.0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Projection
Slide 31: Financial Indicator: cash flow and capital investment
Financial Indicator Canon (Billions of yen) ™ Cash Flow @ Capital Investment 1Q-3Q 4Q FY Actual Projection Projection 36.7 37.1 296 FY 2021 Actual 10.2 2.5 12.6 4.6 . FY 2022 Projection 6.1 5.1 11.2 % FY2022 1Q-3Q is actual value. Depreciation and amortization aH 7.5 1Q-3Q 4Q FY : Actual Projection
Slide 32: Canon Marketing Japan Inc.
Canon Canon Marketing Japan Inc.
Canon Marketing Japan — Q3 2022 Earnings Presentation on 6ix