Slide 1: Canon Inc. Third Quarter 2024 Results
Canon Inc. Third Quarter 2024 Results October 24, 2024 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 sta
Slide 2: Agenda
Agenda ◼ 3Q 2024 Results P 2～5 ◼ FY 2024 Projection P 6～11 ◼ Financial Situation P 12～14 ◼ Summary P 15 ◼ Supplementary Information P 16～20 1
Slide 3: 3Q 2024 Review
3Q 2024 Review ◼ In the markets which we compete, weak demand in China and Europe, but solid demand overall ◼ Sales of cameras, network cameras and laser printers, which recovered in second quarter, continued to grow steadily in third quarter ◼ Steady growth in commercial printing equipment sales wh
Slide 4: P&L (3Q/YTD 2024 Results)
P&L (3Q/YTD 2024 Results) 3Q 1Q-3Q 2024 2023 2024 2023 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 1,079.8 1,025.2 +5.3% 3,236.1 3,017.3 +7.3% Gross Profit 516.4 482.1 +7.1% 1,546.4 1,420.8 +8.8% (% of Net Sales) 47.8% 47.0% 47.8% 47.1% Op. Expenses 418.2 399.5 1,249.8
Slide 5: 3Q 2024 Operating Profit Analysis
3Q 2024 Operating Profit Analysis (3Q 2024 Actual versus 3Q 2023 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference Printing: +29.9 Medical: -2.4 FX Details Imaging: +17.6 Net Sales: +18.7 Industrial: -9.7 Cost of Sales: -9.3 Others: +2.6 Op. Expenses: -9.9 Total: +38.
Slide 6: 2024 Financial Results by Business Unit
2024 Financial Results by Business Unit (3Q/YTD 2024 Actual versus 3Q/YTD 2023 Actual) 3Q 1Q-3Q 2024 2023 2024 2023 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 610.9 570.4 +7.1% 1,845.7 1,703.4 +8.3% Printing Op. Profit 60.7 46.0 +31.8% 205.4 156.0 +31.7% (%) (9.9%) (8.
Slide 7: 2024 Outlook
2024 Outlook ◼ Amid uncertainty about future of global economy, assumed growth will be in line with previous year ◼ For B-to-C products (cameras and inkjet printers), stimulate demand in fourth quarter utilizing new products ◼ For B-to-B products (lithography equipment, commercial printing equipment
Slide 8: Business Structure Review
Business Structure Review Sales Companies Medical Business • Organization restructuring Optimal R&D, Production, and • DX promotion management allocation • Sales channel review Integration Canon Inc. CMSC → Optimize workforce, raise asset efficiency Strengthen Competitiveness Establish system to ful
Slide 9: 2024 Financial Projection (Full Year)
2024 Financial Projection (Full Year) 2024 2024 2023 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 4,540.0 4,181.0 +8.6% 4,600.0 -60.0 Gross Profit 2,148.0 1,968.9 +9.1% 2,192.9 -44.9 (% of Net Sales) 47.3% 47.1% 47.7% Op. Expenses 1,692.5 1,593.5 1
Slide 10: 2024 Operating Profit Analysis (Current vs Previous Projection)
2024 Operating Profit Analysis (FY 2024 Current Projection versus FY 2024 Previous Projection) FX Details Net Sales: -67.5 (Billions of yen) Cost of Sales: +28.5 Op. Expenses: +16.5 Change in Net Sales, excluding FX impact, for reference Printing: -14.8 Medical: -6.9 Imaging: +7.3 Industrial: +7.0 O
Slide 11: 2024 Operating Profit Analysis (Projection vs 2023 Actual)
2024 Operating Profit Analysis (FY 2024 Current Projection versus FY 2023 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference Printing: +65.0 Medical: +10.7 FX Details Imaging: +60.4 Net Sales: +166.8 Industrial: +41.6 Cost of Sales: -66.4 Others: +17.5 Op. Expenses: -6
Slide 12: 2024 Financial Projection by Business Unit
2024 Financial Projection by Business Unit (4Q/Full Year) 4Q Full Year 2024 2024 2023 2023 (Billions of yen) Current % Change Current % Change Actual Actual Projection Projection Net Sales 670.3 642.6 +4.3% 2,516.0 2,346.1 +7.2% Printing Op. Profit 82.6 72.4 +14.1% 288.0 228.3 +26.1% (%) (12.3%) (11
Slide 13: Inventory
Inventory ◼ Inventory at end of September below June thanks to PSI activities, secured inventory for 4th quarter selling season ◼ Aiming for optimal 60 days or less inventory level at the end of 2024 (Billions of yen) FY 2023 FY 2024 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end Sep.-end Amt
Slide 14: Cash Flow
Cash Flow (Full Year) ◼ Operating CF, 565 billion yen, significantly exceeding last year ◼ Additional 100 billion yen used for share repurchase, dividend 150 yen per share FY 2024 FY 2024 FY 2023 FY 2022 (Billions of yen) Current Previous Actual Actual Projection Projection Net income 325.0 335.0 26
Slide 15: Return on Capital
Return on Capital ◼ Significant improvement in ROE : 9.6% in 2024, 1.4 pts. above last year ◼ Further enhancement to achieve 2025 target of 10% or higher 14.0% 2025 Target ROE 10% or higher 12.0% PBR 9.6% 10.0% 7.9% 8.1% 8.2% 1.4x 8.0% 1.1x 1.0x 6.0% 0.8x Weighted Average Cost of Capital (WACC) 5% t
Slide 16: Summary
Summary ◼ Achieve record high sales and 4th consecutive year of sales and profit growth ◼ Work towards achieving 2025 target for sales one year earlier as well as achieve target for profitability Net Sales Operating Profit (Trillions of yen) （Billions of yen） 5 1,000 4.54T Net Sales 4.03T 4.18T 2025
Slide 17: Supplementary Information
Supplementary Information
Slide 18: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 105.5 98.6 +7.1% 442.5 401.6 +10.2% 443.2 -0.7 Office Office MFDs 152.9 151.5 +0.9% 652.6 622.
Slide 19: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales Net Sales Growth Rate of Printing Hardware & Non-hardware FY 2024 FY 2023 Full Year 3Q 3Q Full Year Current Actual Actual Actual Projection Hardware +10% +15% +3% +11% JPY Non-hardware +5% +8% +8% +11% Production Hardware +7% +8% -4% +3% LC Non-hardware +2% +2%
Slide 20: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 132.3 132.4 -0.1% 580.8 553.8 +4.9% 594.6 -13.8 Op. Profit 4.7 6.6 -29.8% 33.1 31.6 +4.6% 46.0 -
Slide 21: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 146.0 138.7 +5.3% 593.9 544.6 +9.1% 606.1 -12.2 Network Cameras & Others 93.6 82.0 +14.1% 361.9 31
Slide 22: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 51.4 53.1 -3.2% 255.0 212.6 +19.9% 250.8 +4.2 Industrial Equipment 19.9 25.7 -22.9% 1