Canon Marketing Japan Incorporated · TSE:8060

Canon Marketing Japan — Q2 2013 Earnings Presentation

27 slides from Canon Marketing Japan's earnings presentation, Jul 24, 2013

  1. Slide 1: Second Quarter 2013 Results

    Canon Marketing Japan Inc. Second Quarter 2013 Results July 24, 2013 Yo Shibasaki 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’

  2. Slide 2: Summary of Results 2Q 2013 Actual

    Summary of Results 2Q 2013 Actual (from April 1 to June 30) (Billions of yen) Summary of Results 2Q 2012 2Q 2013 Changes Amount % Net sales 160.0 159.2 -0.8 -0% (34.2%) (33.9%) (-0.3%) Gross profit 54.7 53.9 -0.8 -1% (2.7%) (2.3%) (-0.4%) Operating income 4.3 3.7 -0.6 -14% (3.1%) (2.7%) (-0.4%) Ordi

  3. Slide 3: Segment Outline 2Q 2013 Actual

    Segment Outline 2Q 2013 Actual (from April 1 to June 30) (Billions of yen) 2Q 2012 2Q 2013 Changes Net sales Op. Income Net sales Op. Income Net sales Op. Income Business Solutions 81.4 1.7 81.4 1.8 -0.1 +0.1 IT Solutions 32.3 -0.4 36.0 -0.1 +3.8 +0.3 Imaging System 45.4 3.3 43.2 2.5 -2.2 -0.9 Indus

  4. Slide 4: Summary of Results 1Q-2Q 2013 Actual

    Summary of Results 2Q 2013 Actual (from January 1 to June 30) (Billions of yen) Summary of Results 1Q-2Q 2012 1Q-2Q 2013 Changes Amount % Net sales 323.0 309.4 -13.6 -4% (33.6%) (33.4%) (-0.3%) Gross profit 108.7 103.2 -5.5 -5% (2.4%) (1.3%) (-1.1%) Operating income 7.8 4.1 -3.7 -48% (2.7%) (1.6%) (

  5. Slide 5: Segment Outline 1Q-2Q 2013 Actual

    Segment Outline 2Q 2013 Actual (from January 1 to June 30) (Billions of yen) 1Q-2Q 2012 1Q-2Q 2013 Changes Net sales Op. Income Net sales Op. Income Net sales Op. Income Business Solutions 168.8 5.5 163.7 3.4 -5.1 -2.1 IT Solutions 66.5 0.0 70.0 0.0 +3.4 -0.0 Imaging System 83.0 2.3 77.8 1.5 -5.2 -0

  6. Slide 6: Segment Information: Business Solutions

    Segment Information 2Q 2013 Actual (from January 1 to June 30) (Billions of yen) 50% Business Solutions Net sales 2013 Actual v. 2012 Actual 87.3 82.3 81.4 81.4 80.3 81.8 1Q-2Q 1Q-2Q Changes 2012 2013 168.8 163.7 -5.1 FY 2012 Net sales FY 2013 Op. income 5.5 3.4 -2.1 Net sales - Growth rate 1Q 2Q

  7. Slide 7: Segment Information: IT Solutions

    Segment Information 2Q 2013 Actual (from January 1 to June 30) (Billions of yen) 22% IT Solutions Net sales 36.0 2013 Actual v. 2012 Actual 34.3 33.9 1Q-2Q 1Q-2Q 32.3 32.7 Changes 31.8 2012 2013 FY 2012 Net sales 66.5 70.0 +3.4 FY 2013 Op. income 0.0 0.0 -0.0 Net sales - Growth rate 1Q 2Q 3Q 4Q F

  8. Slide 8: Segment Information: Imaging System

    Segment Information 2Q 2013 Actual (from January 1 to June 30) (Billions of yen) 24% Imaging System Net sales 2013 Actual v. 2012 Actual 66.9 1Q-2Q 1Q-2Q Changes 45.4 43.2 2012 2013 42.1 37.6 34.6 Net sales 83.0 77.8 -5.2 FY 2012 FY 2013 Op. income 2.3 1.5 -0.8 Net sales - Growth rate 1Q 2Q 3Q 4Q

  9. Slide 9: Segment Information: Industrial Equipment

    Segment Information 2Q 2013 Actual (from January 1 to June 30) (Billions of yen) Industrial Equipment Net sales 4% 2013 Actual v. 2012 Actual 10.7 1Q-2Q 1Q-2Q Changes 2012 2013 7.0 6.6 6.5 6.5 FY 2012 17.7 12.4 -5.2 5.8 Net sales FY 2013 Op. income -0.2 -1.0 -0.8 Net sales - Growth rate 1Q 2Q 3Q

  10. Slide 10: Summary of Projections

    Summary of Projections (Billions of yen) FY 2013 FY 2013 Changes FY 2012 Changes Previous Current projection projection Amount % Actual Amount % Net sales 684.8 665.6 -19.2 -3% 659.2 +6.4 +1% (2.6%) (2.7%) (+0.1%) (2.5%) (+0.2%) Operating income 18.0 18.0 - - 16.8 +1.2 +7% (2.8%) (2.9%) (+0.1%) (2.7

  11. Slide 11: Summary of Projections by Segment

    Summary of Projections (Billions of yen) FY2013 Previous projection v. Current projection FY 2013 FY 2013 Changes Previous projection Current projection Op. Net sales Op. income Net sales Op. income Net sales income Business Solutions 336.7 7.0 328.9 5.9 -7.8 -2% -1.1 IT Solutions 139.4 0.7 140.7 1.

  12. Slide 12: Projections Summary Outline

    Projections Summary Outline (Billions of yen) FY2013 Projection v. FY 2012 Actual FY 2012 FY 2013 Changes Actual Projection Op. Net sales Op. income Net sales Op. income Net sales income Business Solutions 330.9 6.3 328.9 5.9 -2.0 -1% -0.4 IT Solutions 131.0 0.2 140.7 1.5 +9.7 +7% +1.3 Imaging Syste

  13. Slide 13: Projections Segment Information: Business Solutions

    Projections Segment Information (Billions of yen) 48% Business Solutions Net sales FY 2013 Projection v. FY 2012 Actual 168.8 Previous 163.7 165.2 FY 2012 FY 2013 Changes projection 162.1 FY 2012 Actual Projection - April 22 - Actual Net sales 330.9 328.9 -2.0 336.7 FY 2013 Op. income 6.3 5.9 -0.4

  14. Slide 14: Projections Segment Information: IT Solutions

    Projections Segment Information (Billions of yen) 20% IT Solutions Net sales FY 2013 Projection v. FY 2012 Actual 70.0 70.7 66.5 64.5 Previous FY 2012 FY 2012 FY 2013 projection Actual Changes Actual Projection - April 22 - FY 2013 Net sales 131.0 140.7 +9.7 139.4 Projection Op. income 0.2 1.5 +1.

  15. Slide 15: Projections Segment Information: Imaging System

    Projections Segment Information (Billions of yen) 28% Imaging System Net sales FY 2013 Projection v. FY 2012 Actual 113.3 109.0 Previous 83.0 FY 2012 FY 2012 FY 2013 77.8 Changes projection Actual Actual Projection - April 22 - FY 2013 Net sales 192.0 191.1 -0.9 199.2 Projection Op. income 10.9 10

  16. Slide 16: Projections Segment Information: Industrial Equipment

    Projections Segment Information (Billions of yen) 4% Industrial Equipment Net sales FY 2013 Projection v. FY 2012 Actual Previous 17.7 18.6 FY 2012 FY 2013 Changes projection FY 2012 Actual Projection - April 22 - 12.4 13.0 Actual Net sales 30.7 31.0 +0.3 35.6 FY 2013 Op. income -1.2 -0.3 +0.9 0.1

  17. Slide 17: Supplementary Information

    Supplementary Information 9 16

  18. Slide 18: FY2012 Results - After deduction

    FY2012 Results - After deduction - (Billions of yen) [Reference] FY 2012 Results [After deduction ] FY 2012 1Q 2Q 3Q 4Q FY Before Amount deduction deducted Business Solutions 87.3 81.4 80.3 81.8 330.9 344.0 -13.1 IT Solutions 34.3 32.3 31.8 32.7 131.0 131.3 -0.3 Imaging System 37.6 45.4 42.1 66.9 19

  19. Slide 19: Capital Relationship Diagram

    Capital Relationship Diagram Canon Marketing Japan Inc. 50.11% Canon Inc. 73,303 174,762 100% Canon System & Support Inc. 18,515 4,561 100% OCE JAPAN CORPORATION 1,100 361 100% Canon Print square Inc. 0 50 100% SHOWA INFORMATION 2,524 SYSTEMS CO., LTD. 2,745 100% Canon MJ IT Group 100% Canon IT Solu

  20. Slide 20: Results of main consolidated companies

    Results of main consolidated companies (Billions of yen) 2Q 2012 2Q 2013 Changes Amount % Business Solutions Canon System & Support Inc. Net sales 25.5 27.9 +2.5 +10% Op. income 0.0 (0.1% ) 0.4 (1.4% ) +0.4 (+1.4% ) SHOWA INFORMATION SYSTEMS CO., LTD. Net sales 3.0 3.8 +0.8 +25% Op. income 0.2 (5.0%

  21. Slide 21: Results of main consolidated companies

    Results of main consolidated companies (Billions of yen) 1Q-2Q 2012 1Q-2Q 2013 Changes Amount % Business Solutions Canon System & Support Inc. Net sales 52.9 57.2 +4.3 +8% Op. income 0.8 (1.5% ) 1.5 (2.6% ) +0.7 (+1.1% ) SHOWA INFORMATION SYSTEMS CO., LTD. Net sales 5.3 6.5 +1.1 +21% Op. income -0.0

  22. Slide 22: Selling expenses

    Selling expenses (Billions of yen) FY 2012 FY 2013 Changes 2Q 1Q-2Q 2Q 1Q-2Q 2Q 1Q-2Q Advertising expenses 2.2 5.1 2.3 4.3 +0.2 -0.8 Promotion expenses 0.8 1.6 1.0 1.7 +0.2 +0.1 Warranty espenses 2.3 4.5 1.8 3.8 -0.5 -0.7 Personnel expenses 32.2 63.7 31.1 62.1 -1.1 -1.6 Depreciation and amortization

  23. Slide 23: Non-operating income and expenses

    Non-operating income and expenses (Billions of yen)  Non-operating income FY 2012 FY 2013 Changes 2Q 1Q-2Q 2Q 1Q-2Q 2Q 1Q-2Q Interest & dividends income 0.1 0.2 0.1 0.2 -0.0 -0.0 Insurance income 0.6 0.6 0.6 0.6 -0.0 -0.0 Other 0.2 0.3 0.1 0.3 -0.0 -0.0 Total 0.9 1.1 0.8 1.1 -0.0 -0.0  Non-operati

  24. Slide 24: Extraordinary income and expenses

    Extraordinary income and expenses (Billions of yen)  Extraordinary income FY 2012 FY 2013 Changes 2Q 1Q-2Q 2Q 1Q-2Q 2Q 1Q-2Q Gain on sales of investment securities 0.1 0.1 0.1 0.1 -0.0 +0.1 Gain on sales of noncurrent assets 0.0 0.0 0.0 0.0 +0.0 +0.0 Gain on negative goodwill 0.2 0.2 - - -0.2 -0.2

  25. Slide 25: Balance Sheets

    Balance Sheets Dec. 31 June 30 (Billions of yen) Changes 2012 2013 Notes and accounts receivable trade Assets 462.6 436.9 -25.7 Notes and accounts receivable trade Current assets 316.6 292.7 -23.9 Turnover (days) 108.4 107.4 -1.1 66 67 Cash and deposits 65 64 Notes and accounts 63 receivable trade

  26. Slide 26: Cash Flow / Investment / Depreciation and amortization / Financial indicator

    Cash Flow / Investment / Depreciation and amortization / Financial indicator (Billions of yen) Cash Flow 4. 1% 19.6 Operating income ratio 4. 2% Net cash ROE 2. 7% 11.0 provided by ROA 2. 5% 10.8 2. 7% operating 1. 5% 1. 5% activities 0. 9% 1. 1% 2. 3% 1.2 2. 3% 1. 3% Net income Net cash 0. 8% -0.

  27. Slide 27: Canon

    Canon Canon Marketing Japan Inc.

Canon Marketing Japan — Q2 2013 Earnings Presentation on 6ix