Canon Inc. · TSE:7751
Canon — Corporate Strategy Conference 2019
24 slides from Canon's conference presentation, Mar 1, 2019
Slide 1: Corporate Strategy Conference 2019
Canon Inc. Corporate Strategy Conference 2019 March 1, 2019 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 forme
Slide 2: Agenda
Agenda Excellent Global Corporation Plan P1-3 Phase V – Progress Revitalization of Existing Businesses P4-6 Progress and Future Measures of P7-18 New Businesses Summary P19
Slide 3: Excellent Global Corporation Plan Phase V 2016-2020
Excellent Global Corporation Plan Phase V 2016 – 2020 (Basic Policy) Embrace the challenge of new growth through a grand strategic transformation (Key Strategies) 1. Achieve a cost-of-sales ratio of 45% 2. Strengthen and expand new businesses 3. Restructure global sales network 4. Enhance R&D capabi
Slide 4: M&As for Business Portfolio Transformation
M&As for Business Portfolio Transformation 2005- 2007 Tokki, Anelva, & Machinery Industrial Equipment 2010 Commercial Printing 2014 Network Cameras 2015 Network Cameras 2016 Medical 2
Slide 5: Excellent Global Corporation Plan Phase V (2016-2018 Update)
Excellent Global Corporation Plan Phase V (2016 – 2018 Update) Steady progress in portfolio transformation New business sales expanded to 23% Raise to Total net sales and new business composition (Trillions of yen) around 5 30% Existing businesses New businesses 4 9％ 22％ 23％ 24％ 12％ 3 2 1 New bu
Slide 6: Existing Businesses
Existing Businesses
Slide 7: Revitalization of Existing Businesses (Launch Competitive New Products)
Revitalization of Existing Businesses (Launch Competitive New Products) Aim to raise market share through products offering superior features Color MFDs Y/Y Growth Rate (Canon Unit Sales) 15% MFD 10% Color Mkt. 5% Shr. ’16⇒’18 0% 17% ⇒ 19% -5% 2016 2017 2018 2019 Projection Growth thanks to total
Slide 8: Revitalization of Existing Businesses (Cameras)
Revitalization of Existing Businesses (Cameras: Focus on growth areas amid continuing market contraction) Support camera bus., concentrating mgmt. resources on mirrorless Plan to stabilize business over medium term, shifting to B2B areas DSLRs Mirrorless Professional Continue to further enhance
Slide 9: Revitalization of Existing Businesses (Expansion of automated assembly)
Revitalization of Existing Businesses (Improve Profitability – Expansion of automated assembly) Expand range of products Apply automation to mirrorless cameras and lenses Expand range of processes In addition to assembly of end goods and units, use automation in investigation and packaging processes
Slide 10: New Businesses
New Businesses
Slide 11: 4 new businesses that will drive future growth
Progress and Future Measures of New Businesses (4 new businesses that will drive future growth) Commercial Printing Network Cameras Medical Industrial Equipment 7
Slide 12: New Businesses (Commercial Printing)
Progress and Future Measures of New Businesses (Commercial Printing) Continuing to grow 5 to 6% per year, supported by shift to digital Change in printing technology trend from toner to inkjet 全社売上高及び新規事業構成比推移 Digital Printing Market Outlook 3 Trillion yen グラフィックアーツ Graphic Arts/ /パッケージ Graphic
Slide 13: Commercial Printing: Progress and Achievements
Progress and Future Measures of New Businesses (Commercial Printing) Progress and Achievements • Launched 3 new products into graphic arts market where high growth is expected • Also launched new product into packaging market, with the aim of building a position in this market Challenges and Measure
Slide 14: Network camera market expected to grow more than 10%
Progress and Future Measures of New Businesses (Network Cameras) High market growth thanks to demand for security and shift to digital Expanding use from security to marketing analytics Camera hardware, Video management systems – CAGR (‘17-’21) +8 to +9% Video analytics software – CAGR (‘17-’21)
Slide 15: Network Cameras: Progress and Achievements
Progress and Future Measures of New Businesses (Network Cameras) Progress and Achievements • Achieved market exceeding CAGR of more than 20% • Expanded industry-leading global partner network to 90 thousand • Acquired BriefCam, a company known for strength in video synopsis technology Challenges and
Slide 16: Enhancing applications to respond to diversifying custom needs
Progress and Future Measures of New Businesses (Network Cameras) Market is swiftly expanding from office to infrastructure Enhancing applications to respond to diversifying custom needs Marketing Entertainment Security Customer base/ People counter/ Spot suspicious people/ People flow analysis Und
Slide 17: New Businesses (Medical)
Progress and Future Measures of New Businesses (Medical) Demand for leading-edge systems in developed countries and medical infrastructure development in emerging markets continues in the diagnostic imaging equipment market (Billions of yen) Diagnostic Imaging Equip. Mkt. Outlook 2,500 Japan Overs
Slide 18: Medical: Progress and Achievements
Progress and Future Measures of New Businesses (Medical) Progress and Achievements • Drastically renewed CT, MRI, ultrasound, and X-ray lineups • Improved overseas awareness, collaborating with well-recognized universities • Prepared for business field expansion through M&As, business partnerships e
Slide 19: Medical Sales and Operating Profit
Progress and Future Measures of New Businesses (Medical) Cost reduction on parts through cooperation with Canon HQ’s procurement div., reduced lead-time by leveraging production tech. Swiftly achieve operating profit ratio of 10% or more, maximizing Group synergies (Billions of yen) Medical Sale
Slide 20: Industrial Equipment: Progress and Achievements
Progress and Future Measures of New Businesses (Industrial Equipment) Progress and Achievements • Established high-definition technology which meets panel manufacturers expectations • Achieved overwhelming market share in the OLED vacuum deposition equipment market Challenges and Measures over the n
Slide 21: New Businesses (Industrial Equipment)
Progress and Future Measures of New Businesses (Industrial Equipment) Preparation for recovery phase, during period of completed one round manufacturer investment Strengthen Profitability Growing use of OLED panels in large-size TVs Switch to general- use parts for easy cost reduction Reduce syste
Slide 22: Improve Company-wide Productivity
Improve Company-wide Productivity Progress and Achievements • Improve work force efficiency through automated assembly • Expansion of highly specialized training facilities (Software, Manufacturing) Challenges and Measures • Train and re-align human resources from production divisions • Reallocate g
Slide 23: Summary: Return to path of growth
Summary (Achievement Goals by the end of Phase V 2020) Return to path of growth by promoting measures in each business Raise new business sales composition to around 30% of total company Further reinforce transformed business portfolio 19
Slide 24: Canon
Canon