Canon Inc. · TSE:7751
Canon — Investor Day (March 2024)
19 slides from Canon's investor day presentation, Mar 8, 2024
Slide 1: Canon Overall Strategy
Canon Inc. 2024 Corporate Strategy Conference Canon Overall Strategy March 8, 2024 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
Slide 2: Agenda
Agenda Excellent Global Corporation Plan Phase VI ■Review up to 2023 P 1-3 ■Measures Over Next Two Years P 4-8 ■Financial Strategy P 9-13 ■Sustainability P 14-15 ■Summary P 16-17
Slide 3: Review up to 2023
Canon @ Review up to 2023
Slide 4: Businesses
Review up to 2023 Strengthened business competitiveness and built structure that realizes new growth Printing Medical Imaging Industrial Office Cameras Lithography MFDs equipment Printers Businesses Network Industrial cameras equipment Commercial New printing New imaging 2
Slide 5: A New Canon through Business Portfolio Transformation
Review up to 2023 A New Canon through Business Portfolio Transformation (Trillion yen) 5 Net sales Operating profit ratio 15% 2025 Targets 4.5T or more 4.18T 4.35T Net Sales: 4.5 trillion yen or more 4 4.03T 12.0% or higher 3.51T 10.0% Op. Profit Ratio: 12% or higher 9.0% 10% 8.8% Net Income Ratio:
Slide 6: Measures Over Next Two Years
Measures Over Next Two Years 1. Strengthen and Expand Industry-oriented Business Groups 2. Review Business Structure 3. Restructure Global Production System 4. Strengthen Technology Research Capability 4
Slide 7: 1. Strengthen and Expand Industry-oriented Business Groups
1. Strengthen and Expand Industry-oriented Business Groups Improved performance through bus. sphere expansion Circle size: Operating profit Printing Raise profit Maintain as cash cow One Net sales Trillion yen Expand sales Maintain high & achieve profitability double-digit profitability Medical Imag
Slide 8: 2. Review Business Structure
2. Review Business Structure Sales • New businesses (B-to-B): Enhance sales capability Develop sales engineers that can propose solutions • Mature businesses: Improve efficiency Review structure of sales organization • Sale of assets, consolidation of administrative operations R&D Thorough selection
Slide 9: 3. Restructure Global Production System
3. Restructure Global Production System Importance of supply chain reconfirmed • Uncertain, unstable global situation • Parts shortages and logistical constraints due to spread of COVID-19 Major manufacturing sites Consolidate sites in politically and socially • Stable manufacturing, stable countrie
Slide 10: 4. Strengthen Technology Research Capability
4. Strengthen Technology Research Capability Printing Medical Imaging Industrial Core technology Fundamental technologies (Imaging, Creating Value, Drawing), Value creation technologies 2010 2016 2015 2007 Raise added value of products Create new businesses Commercial printing Medical Network camera
Slide 11: Financial Strategy
Canon @ Financial Strategy
Slide 12: Return on Capital
Return on Capital ROE recovers from COVID-19 impact to 8.2% in 2023 Aiming for 10% or higher in 2025 14.0% ROE and PBR 2025 target 12.0% ROE PBR 10% or higher 10.0% 8.9% 8.1% 8.2% 7.9% 8.0% 1.2X 1.1X 1.0X 6.0% Weighted average cost of capital (WACC) 5～6％ 0.8X 4.0% 0.9X 3.2% 2.0% 0.0% 2020 2021 2022
Slide 13: Measures to Improve ROE
Measures to Improve ROE Looking to achieve ROE of 10% or higher in 2025 ROE ＝ Net income ratio X Total asset turnover ratio X Financial leverage Profitability improvement Net income 2025 targets: Op. profit ratio of 12% or higher, net income ratio of 8% or higher • Optimize expense ratio through rev
Slide 14: Actions to raise ROE by Group
Actions to raise ROE by Group Operating profit & Total assets (Billions of yen) Corp. & 2023 Printing Medical Imaging Industrial Total Others Net sales 2,346.1 553.8 861.6 314.7 104.8 4,181.0 Op. profit 228.3 31.6 145.6 58.6 -88.8 375.4 Op. profit ratio 9.7% 5.7% 16.9% 18.6% -84.7% 9.0% Total assets
Slide 15: Cash Allocation
Cash Allocation 【Policy】 Capital expenditures: As a general rule kept within depreciation and amortization. However, be exceeded in Growth cases judged necessary for growth. investment M&A: Cases where it complements growth of new businesses Dividend: Target payout ratio of 50% Shareholders Share bu
Slide 16: Sustainability
Canon m Sustainability
Slide 17: Sustainability Measures
Sustainability Measures Realizing a sustainable society. Meeting stakeholder needs and expectations with innovation and technology Contributing through technology, products, and solutions Environmental conservation & resolving social issues 15
Slide 18: Summary
Canon = Summary
Slide 19: Summary: Improving corporate value
Summary Improving corporate value Change is progress Transformation is advancement Structure of 10 Directors Printing Medical Imaging Industrial 17