Canon Marketing Japan Incorporated · TSE:8060
Canon Marketing Japan — FY2014 Earnings Presentation
26 slides from Canon Marketing Japan's earnings presentation, Jan 28, 2015
Slide 1: Canon Marketing Japan Inc. FY 2014 Results
Canon Marketing Japan Inc. FY 2014 Results January 28, 2015 Yo Shibasaki Director & Senior Vice President Canon Canon Marketing Japan Inc. * 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
Slide 2: Summary of Results FY 2014 Actual
Summary of Results FY 2014 Actual Canon (from January 1 to December 31) (Billions of yen) Summary of Results FY 2013 FY 2014 Changes Amount % Net sales 657.2 659.4 +2.2 +0% (34.1%) (35.4%) (+1.3%) Gross profit 223.9 233.5 +9.6 +4% (2.6%) (3.8%) (+1.2%) Operating income 17.0 25.1 +8.1 +47% (2.8%) (4.
Slide 3: Segment Outline FY 2014 Actual
Segment Outline FY 2014 Actual (from January 1 to December 31) Canon (Billions of yen) FY 2013 FY 2014 Changes Netsales Op.Income Netsales Op.Income = Netsales _—Op. Income Business Solutions 327.3 5.5 330.2 8.2 +3.0 +2.7 IT Solutions 142.3 0.4 148.8 3.2 +6.5 +2.8 Imaging System 191.7 12.5 185.4 14.
Slide 4: Summary of Results 4Q 2014 Actual
Summary of Results 4Q 2014 Actual Canon (from October 1 to December 31) (Billions of yen) Summary of Results 4Q 2013 4Q 2014 Changes Amount % Net sales 188.6 180.3 -8.3 4% (33.3%) (35.5%) (+2.2%) Gross profit 62.8 63.9 +1.1 +2% (4.6%) (5.1%) (+0.5%) Operating income 8.6 9.1 +0.5 +5% (4.7%) (5.2%) (+
Slide 5: Segment Outline 4Q 2014 Actual
Segment Outline 4Q 2014 Actual (from October 1 to December 31) Canon (Billions of yen) 4Q 2013 4Q 2014 Changes Netsales Op.Income Netsales Op.Income Netsales _—Op. Income Business Solutions 84.1 0.8 81.9 1.5 -2.2 +0.7 IT Solutions 38.1 0.4 35.6 0.7 -2.6 +0.2 Imaging System 67.2 7.6 62.5 6.9 -4.8 -0.
Slide 6: Business Solutions 4Q commentary
[Business Solutions] ・In 4Q, sales fell 3% from a year ago to 81.9 billion yen due to a reactionary decline from the special demand for business computers in the same period of the previous year. ・Meanwhile, operating income rose 700 million yen from a year ago to 1.5 billion yen, mainly due to an i
Slide 7: IT Solutions 4Q commentary
[IT Solutions] ・In Q4, sales declined by 7% from the previous year to 35.6 billion yen in a reactionary decline to the special demand for business computer replacement during the same period the previous year. ・Operating income rose by 200 million yen from the previous year to 700 million yen mainly
Slide 8: Imaging System 4Q commentary
[Imaging System] ・In 4Q, sales declined by 7% from the previous year to 62.5 billion yen due to the impact of the consumption tax hike as well as a decline in digital cameras and ink-jet printers. ・Operating income declined by 700 million yen from the previous year to 6.9 billion yen. (Interchangeab
Slide 9: Industrial / Medical 4Q commentary
[Industrial / Medical] ・In 4Q, sales rose by 1% from the previous year to 7.4 billion yen, while operating income improved by 200 million yen from the previous year to -100 million yen as a result of a turnaround in the gross margin. (Industrial Equipment) ・Sales increased mainly as a result of expa
Slide 10: Summary of Projections
Summary of Projections Canon (Billions of yen) FY 2015 FY 2014 Changes Projection Actual Amount % Net sales 681.0 659.4 +21.6 +3% (3.8%) (3.8%) (+0.0%) Operating income 26.0 25.1 +0.9 +4% (4.0%) (4.0%) (0.0%) Ordinary income 27.2 26.6 +0.6 +2% (2.5%) (2.4%) — (+0.1%) Net income 16.9 16.0 +0.9 +5%
Slide 11: Projections by segment
Projections Summary Outline Canon (Billions of yen) FY 2014 FY 2015 Changes Actual Projection Netsales Op. income Netsales Op. income Net sales . Op. income Business Solutions 330.2 8.2 340.0 8.7 +9.8 +3% +0.5 IT Solutions 148.8 3.2 151.7 4.2 +2.9 4+2% +1.0 Imaging System 185.4 14.3 188.8 13.2 43.4
Slide 12: Business Solutions outlook
[Business Solutions] ・Sales are expected to increase by 3% year on year to 340 billion yen, while operating income is projected to rise by 500 million yen from the previous year to 8.7 billion yen, driven by MFPs and production printing. (MFP) ・Unit sales are expected to increase from the previous y
Slide 13: IT Solutions outlook
[IT Solutions] ・The domestic IT services and packaged software markets are expected to remain strong. ・The Company will be proactive in activities related to orders received, centered on system development for financial institutions – the Company’s forte – as well as in manufacturing, distribution,
Slide 14: Imaging System outlook
[Imaging System] ・Sales are expected to rise by 2% from the previous year to 188.8 billion yen as a result of new product launches in addition to proactive sales initiatives and promotion activities. ・Meanwhile, operating income is expected to decline by 1.1 billion yen to 13.2 billion primarily due
Slide 15: Industrial / Medical outlook
[Industrial / Medical] ・Sales are expected to increase by 12% from the previous year to 31.5 billion yen, while operating income is projected to improve by 500 million yen to -500 million yen as a result of the proactive expansion of sales of existing products as well as new industrial products. (In
Slide 16: Supplementary Information
Supplementary Information 15
Slide 17: Reference: Overall sales of IT Solutions
[Reference] Overall sales of IT Solutions Canon (Billions of yen) 4Q2013 4Q2014 Changes Amount % Sales of IT Solutions 38.1 35.6 -2.6 -7% Sales other than the IT Solutions segment 14.3 12.5 -1.8 -13% Intersegment (elimination), etc. -8.2 -6.9 +1.3 5 Total 44.2 41.2 -3.0 -7% FY 2013 FY 2014 Changes A
Slide 18: Capital Relationship Diagram
Capital Relationship Diagram Ss ~ 100% _ [Canon System & Supportinc] 4561 100% _, [Canon Production Printing stems Inc. 2. Canon 745. 100% [Canon MJIT Group | Holdings Inc. 100% [Canon IT Solutions Inc. 3 — 100%,fcanon ITSMedicalinc. gg ] | Canon Software Inc. 348 88.39% Canon BizAttenda Inc. 44, 10
Slide 19: Results of main consolidated companies (FY)
Results of main consolidated companies Canon (Billions of yen) FY 2013 FY 2014 Changes Amount % Business Solutions Canon System & Support Inc. Net sales 114.9 116.7 +1.8 +2% Op. income 2.8 (2.4%) 2.9 (2.4%) +0.1 (40.0%) Canon Production Printing Systems Inc. Net sales 14.4 14.1 -0.4 -2% Op. income 0
Slide 20: Results of main consolidated companies (4Q)
Results of main consolidated companies Canon (Billions of yen) 4Q 2013 4Q 2014 Changes Amount % Business Solutions Canon System & Support Inc. Net sales 28.8 26.6 -2.2 8% Op. income 0.4 = (1.3%) 0.3 (1.2%) -0.0 (0.1%) Canon Production Printing Systems Inc. Net sales 3.7 4.2 +0.6 +15% Op. income 0.1
Slide 21: Selling expenses
Selling expenses Canon (Billions of yen) FY 2013 FY 2014 Changes 4Q FY 4Q FY 4Q FY Advertising expenses 3.2 10.5 3.9 10.9 +0.7 +0.4 Promotion expenses 1.3 3.9 1.8 5.1 40.5 +1.2 Warranty expenses 2.0 7.6 2.2 7.6 +0.2 +0.0 Other direct selling expenses 4.9 18.6 5.0 18.7 +0.0 +0.1 Personnel expenses 32
Slide 22: Non-operating income and expenses
Non-operating income and expenses m= Non-operating income Canon (Billions of yen) FY 2013 FY 2014 Changes 4Q FY 4Q FY 4Q FY Interest & dividends income 0.1 0.3 0.1 0.4 +0.0 +0.0 Insurance income 0.0 0.6 0.0 0.6 -0.0 -0.1 Other 0.2 0.7 0.3 0.8 +0.0 +0.1 Total 0.3 1.7 0.4 1.8 +0.0 +0.1 = Non-operating
Slide 23: Extraordinary income and expenses
Extraordinary income and expenses Canon (Billions of yen) = Extraordinary income FY 2013 FY 2014 Changes 4Q FY 4Q FY 4Q FY Gain on sales of non-current assets 0.0 0.0 0.1 0.1 +0.1 +0.0 Gain on bargain purchase - - - 0.0 - +0.0 Insurance income on disaster - - 0.3 0.3 +0.3 +0.3 Settlement received -
Slide 24: Balance Sheets
Balance Sheets Dec. 31 Dec. 31 2013 2014 Changes Assets 467.1 479.7 +12.7 Current assets 324.9 339.6 +14.7 Cash and deposits 102.3 1206 +183 Notes and accounts receivable trade uray VAS ee Inventories 28.2 27.8 0.4 Other 61.7 62.7 +1.0 Noncurrent assets 142.1 140.2 -2.0 Property, plant and equipment
Slide 25: Cash Flow / Investment / Depreciation and amortization
Cash Flow / Investment / Depreciation and amortization / Canon Financial indicator (Billions of yen) 6.1% ™Cash Flow Operating income ratio 38.2 ee ° tom 28.8 23.0 ——ROA ; 3.8% Netcash provided by operatin, 30 ceive ° 1.5% “we r Netcashprovided 1.1% : 2.2% 152 activities —— =omFree Cash Flow 3.7 6.8
Slide 26: Canon Marketing Japan Inc.
Canon Canon Marketing Japan Inc. 25