Slide 1: Canon Inc. First Quarter 2013 Results
Canon Inc. First Quarter 2013 Results April 24, 2013 Toshizo Tanaka Executive Vice President & CFO 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 assumpti
Slide 2: Agenda
Agenda 1Q 2013 Results P3 – 5 FY 2013 Projections P6 – 9 Details by Business P10 – 15 Financial Situation P16 – 18 Supplementary Information P19 – 24 April 24, 2013 Canon Inc. 2
Slide 3: 1Q 2013 in Summary
1Q 2013 in Summary External Environment Last year's global economic weakness continued • Growing signs of a slowdown in China and Europe Greater than expected severity in the markets in which we participate Results Sales and profit decline due to challenging external environment • Cooling market
Slide 4: Summary of Results
Summary of Results 1Q 2013 Actual (Billions of yen) 1Q 2013 1Q 2012 Pct. Change Actual Actual Net Sales 816.7 829.2 -1.5% Gross Profit 385.9 390.9 -1.3% (% Sales) 47.3% 47.1% Op. Profit 54.8 82.7 -33.8% (% Sales) 6.7% 10.0% Net Income Attributable to Canon Inc. 40.9 61.5 -33.5% (% Sales) 5.0% 7.4% F
Slide 5: Transition in Sales and Op. Profit
Transition in Sales and Op. Profit 1Q 2013 Actual v. 1Q 2012 Actual (Billions of yen) Sales Op. Profit 1Q 2012 Actual 829.2 82.7 Foreign Exchange Impact Change in Exchange Rate +86.3 +40.9 (Net Sales, Cost of Sales, Expenses) •1USD: 79.72 to 92.76 yen •1EURO: 104.57 to 122.35 yen Sales Volume Impact
Slide 6: Assumptions
Assumptions 2013 Current Projection Average 2Q-4Q13 FY13 FY12 Exchange Rate Yen-1USD 95.00 yen 94.51 yen 79.96 yen Yen-1EURO 125.00 yen 124.45 yen 102.80 yen Impact of Exchange Rate Movement (2Q-4Q Impact Given a One Yen Change) Net Sales Operating Profit USD 15.0 billion yen 5.8 billion yen
Slide 7: Key Points FY2013
Key Points FY2013 External Environment A strengthening tone of global economic recovery from the second half of 2013 Outlook • Activate the market through vigorous sales and marketing activities • Invest in product development in order to strengthen product competitiveness • Continue cost reduction
Slide 8: Summary of Projected Results
Summary of Projected Results FY 2013 Current Projection (Billions of yen) FY 2013 FY 2012 Pct. Change Current Projection Actual Net Sales 3,980.0 3,479.8 +14.4% Gross Profit 1,974.3 1,650.0 +19.7% (% Sales) 49.6% 47.4% Op. Profit 450.0 323.9 +39.0% (% Sales) 11.3% 9.3% Net Income Attributable to Can
Slide 9: Transition in Sales and Op. Profit
Transition in Sales and Op. Profit FY 2013 Current Projection v. FY 2013 Previous Projection (Billions of yen) Sales Op. Profit Previous Projection (Jan. 30, 2013) 3,810.0 410.0 Change in Exchange Rate Foreign Exchange Impact •1USD: 85.00 to 94.51 yen +264.6 +129.0 •1EURO: 115.00 to 124.45 yen (Net
Slide 10: Office
1Q13 Growth Rate y/y (Unit Base) 1Q13 Color Ratio Office Color Copiers -1% Printers -14% Value Base* Copiers 55% Printers 45% Monochrome -8% +3% Unit Base 36% 13% 1Q 2013 Actual Total -6% +0% *Includes Consumables (Billions of yen) Sales Growth rate y/y ( ) Local currency base 800 Monochrome copiers
Slide 11: Office
FY13 Growth Rate y/y (Unit Base) FY13 Color Ratio Office Color Copiers +19% Printers +16% Value Base* Copiers 54% Printers 47% Monochrome +5% +11% Unit Base 36% 14% FY 2013 Projection Total +10% +11% *Includes Consumables (Billions of yen) Sales Growth rate y/y ( ) Local currency base 3,000 Monochro
Slide 12: Imaging System
Growth Rate y/y (Unit Base) Interchangeable Lens Imaging System Interchangeable Lens 1Q13 -15% Digital Camera Ratio * 1Q13 Digital Cameras Value Base 81% 1Q 2013 Actual Compact Digital -37% Unit Base 35% Cameras Total Digital Cameras -31% * Proportion of Total Digital Cameras IJP +14% * Value Base I
Slide 13: Imaging System
Growth Rate y/y (Unit Base) Interchangeable Lens Imaging System Interchangeable Lens FY13 +12% Digital Camera Ratio * FY13 Digital Cameras Value Base 83% FY 2013 Projection Compact Digital -21% Unit Base 39% Cameras Total Digital Cameras -11% * Proportion of Total Digital Cameras IJP +2% * Value Bas
Slide 14: Industry and Others
Industry and Others Lithography Equipment IC Stepper Unit Breakdown by Light Source (Unit Sales) 1Q12 1Q13 1Q 2013 Actual 1Q12 1Q13 ArF 0 0 IC 13 5 KrF 2 0 FPD 5 0 i-line 11 5 (Billions of yen) Sales Growth Rate y/y ( ) Local Currency Base 180 Sales Eliminations Lithography Equipment Industry and Ot
Slide 15: Industry and Others
Industry and Others Lithography Equipment IC Stepper Unit Breakdown by Light Source (Unit Sales) FY13 FY13 FY 2013 Projection FY13 FY13 FY12 Previous Current FY12 Previous Current Projection Projection Projection Projection ArF 0 0 0 (Billions of yen) Sales Growth Rate y/y ( ) Local Currency Base IC
Slide 16: Inventories
Inventories (Billions of yen) 800 Amount (Billions of yen) 90 Turnover (Days) 700 63 61 70 54 56 57 57 52 46 42 50 600 591 589 554 542 552 30 518 500 479 477 10 436 -10 400 -30 300 -50 1QE11 2QE11 3QE11 4QE11 1QE12 2QE12 3QE12 4QE12 1QE13 April 24, 2013 Canon Inc. 16
Slide 17: Capital Expenditure Free Cash Flow
Capital Free Cash Flow Expenditure (Billions of yen) (Billions of yen) 1,000 1,000 Increase in PP&E Operating C/F Net Income Attributable to Canon Inc. Free C/F Depreciation Investing C/F 750 750 402 500 500 130 290 247 255 130 249 744 225 213 171 480 250 250 470 455 384 350 342 325 276 270 270 265
Slide 18: Cash on Hand
Cash on Hand Cash on Hand (Year-end) 1500 4 Cash-on hand (Bilions of yen) Cash-on-hand 3.5 (In months of 2nd-half net sales, except FYE13, which is based on full-year net sales) 2.8 3 1000 2.5 2.5 2.3 2.5 2.0 2.0 841 795 773 2 667 670 640 1.5 500 1 0.5 0 0 FYE09 FYE10 FYE11 FYE12 FYE13 FYE13 Previou
Slide 19: Supplementary Information
Supplementary Information April 24, 2013 Canon Inc. 19
Slide 20: Transition in Sales and Operating Profit
Transition in Sales and Operating Profit FY 2013 Current Projection v. FY 2012 Actual (Billions of yen) Sales Op. Profit FY 2012 Actual 3,479.8 323.9 Foreign Exchange Impact +467.5 +238.1 Change in Exchange Rate (Net Sales, Cost of Sales, Expenses) •1USD: 79.96 to 94.51 yen •1EURO: 102.80 to 124.45
Slide 21: Gross Profit Variance Analysis
Gross Profit Variance Analysis 1Q 2013 Actual v. 1Q 2012 Actual (Billions of yen) 1Q13 1Q12 Change (Billions of yen) Gross Profit 385.9 390.9 -5.0 % Sales 47.3% 47.1% +0.2pt. 100 86.3 50 6.5 0 -5.0 -25.8 -21.5 -50 -50.5 -100 Forex Sales Price Forex Cost Total Impact Volume Change Impact Reduction Ch
Slide 22: Operating Profit Variance Analysis
Operating Profit Variance Analysis 1Q 2013 Actual v. 1Q 2012 Actual (Billions of yen) 1Q13 1Q12 Change Op. Profit 54.8 82.7 -27.9 (Billions of yen) % Sales 6.7% 10.0% -3.3pt. 100 50 1.0 0 -5.0 -23.9 -27.9 -50 -100 Total Change in Change in Total Change in SG & A SG & A Change in Gross Profit (Exclud
Slide 23: Interest Bearing Debt
Interest Bearing Debt (Billions of yen) 50 5.0% Debt Debt/Total Assets 40 4.0% 30 3.0% 20 2.0% 11 12 10 10 1.0% 0.3% 0.3% 0.3% 4 3 0.1% 0.1% 0 0.0% FYE09 FYE10 FYE11 FYE12 1QE13 Supplementary Information April 24, 2013 Canon Inc. 23
Slide 24: Financial Ratios
Financial Ratios (Yen) 900 15% 10.7% 9.2% 9.6% 600 10% 8.7% 7.1% 6.3% 6.3% 5.7% 4.9% 300 251.56 5% 3.4% 199.71 204.49 191.34 106.64 0 0% FY09 FY10 FY11 FY12 FY13 Current Projection EPS(Basic) ROE ROA (Attributable to Canon Inc.) Supplementary Information April 24, 2013 Canon Inc. 24