Slide 1: Canon Inc. Second Quarter 2023 Results
Canon Inc. Second Quarter 2023 Results July 27, 2023 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 state
Slide 2: Agenda
Agenda 2Q 2023 Results P2 - 3 FY 2023 Projection P4 - 5 Details by Business P6 - 12 (2Q 2023 Results & FY 2023 Projection) Financial Situation P13 - 14 Sustainability Measures P15 Excellent Global Corporation Plan Phase VI P16 Supplementary Information P17 - 21 1
Slide 3: Key Message (2Q/1H 2023 Results)
Key Message (2Q/1H 2023 Results) Achieved 10th consecutive quarter of sales growth and sequential improvement in quarterly profit and profitability, as planned Realized sales and profit growth in the first half 2Q 1st Half 2023 2022 2023 2022 (Billions of yen) % Change % Change Actual Actual Act
Slide 4: FY 2023 Financial Results by Business Unit
FY 2023 Financial Results by Business Unit (2Q/1H 2023 Actual versus 2Q/1H 2022 Actual) Imaging: Maintained high profitability through new mirrorless camera products and strong sales of network cameras Other segments: Lower profit due to market conditions, increased expenses etc. 2Q 1st Half 202
Slide 5: FY 2023 Financial Projection (Full Year)
FY 2023 Financial Projection (Full Year) Maintained basic outlook, raised projection to reflect change in exchange rate assumptions Targeting operating profit of over 400.0 billion yen, first time since 2008 FY 2023 FY 2023 FY 2022 Amount (Billions of yen) Current % Change Previous Actual Change
Slide 6: FY 2023 Financial Projection by Business Unit
FY 2023 Financial Projection by Bus. Unit (Full Year) Plan for sales and profit growth in all four business units Medical: Aiming to renew record high sales and profit FY 2023 FY 2023 FY 2022 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 2,399.0
Slide 7: Printing - Office
Printing - Office Solid sales, even after backorders filled Share expansion thanks to broad product lineup and solutions proposals (Billions of yen) 2Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Office 245.2 214.
Slide 8: Printing - Prosumer
Printing - Prosumer Laser: Aim to expand sales, particularly new medium- to high-speed color models Inkjet: Aggressively expand sales of enhanced lineup of refillable ink tank models (Billions of yen) 2Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual C
Slide 9: Printing - Production
Printing - Production 2Q: 9th consecutive quarter of sales growth, driven by sales expansion centered on new products Further sales growth, driven by increased sales of Colorado M-series and expanded dealer network (Billions of yen) 2Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previo
Slide 10: Imaging - Cameras
Imaging - Cameras 2Q: Double-digit sales growth, driven by strong sales of new mirrorless cameras and RF lenses Broaden user base via EOS R50 and EOS R100, first entry-class models of EOS R-series (Billions of yen) 2Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual C
Slide 11: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others 2Q: Double-digit network camera sales growth Capture needs of growing market by enhancing product lineup (Billions of yen) 2Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras
Slide 12: Medical
Medical 2Q: Approx. 7% sales growth, driven by increased sales in each product category Aiming for double-digit sales growth and more than 7% operating profit ratio for the full year through further sales expansion in 2H (Billions of yen) 2Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current
Slide 13: Industrial – Optical & Industrial Equip.
Industrial – Optical & Industrial Equip. Semiconductor lithography equipment: Sell a solid 195 units for full year, partially thanks to developments in generative AI Panel manufacturing equipment: Work to improve product competitiveness for next year on (Billions of yen) 2Q Full Year 2023 2023 2
Slide 14: Inventory
Inventory Inventory at end of June was same level as March, when exchange rate impact is excluded Inventory of parts and materials as well as product inventory approaching appropriate level towards end of year (Billions of yen) FY 2022 FY 2023 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-en
Slide 15: Cash Flow (Full Year)
Cash Flow (Full Year) Aggressive investment of 257.0 billion yen for growth, from 633.0 billion yen in operating CF Raised full-year dividend projection by 20 yen, remainder for share buybacks and debt repayment 2023 2023 FY 2022 FY 2021 Current Previous Actual Actual (Billions of yen) Projectio
Slide 16: Sustainability Measures
Sustainability Measures Contribute to realization of sustainable society, developing technologies for environment Plastic recycling process Problem Infrared: Absorbed by dye, does not allow proper sorting of black plastics Laser light: Amount of light reflected from black plastics is small, takes
Slide 17: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI Achieve 3rd consecutive year of sales and profit growth, and link this to achievement of 2025 targets (Operating Profit: Billions of yen) (Net Sales: Trillions of yen) 5 1,000 Over 4,500.0 Billion 4,363.0 Billion Net Sales 4 4,031.4 Billion Operating 800
Slide 18: Supplementary Information
Supplementary Information
Slide 19: FY 2023 Operating Profit Analysis (2Q 2023 vs 2Q 2022)
FY 2023 Operating Profit Analysis (2Q 2023 Actual versus 2Q 2022 Actual) Changes in sales volume: Negative due to lower printer sales Expenses: Increased due to rise in selling-related expenses linked to sales growth, and R&D expenses (Billions of yen) Change in Net Sales, excluding FX FX Detail
Slide 20: FY 2023 Operating Profit Analysis (Projection vs FY 2022 Actual)
FY 2023 Operating Profit Analysis (FY 2023 Current Projection versus FY 2022 Actual) Changes in sales volume: Increase in profit, as all four business units expected to post sales growth Expenses: Increase due to sales expansion and R&D investment to expand future performance (Billions of yen) C
Slide 21: FY 2023 Operating Profit Analysis (Current vs Previous Projection)
FY 2023 Operating Profit Analysis (FY 2023 Current Projection versus Previous Projection) (Billions of yen) Change in Net Sales, excluding FX impact, for reference FX Details Net Sales: +92.4 Printing: -22.9 Cost of Sales: -30.1 Imaging: -11.8 Op. Expenses: -26.8 Medical: -3.3 Industrial: -0.8 Other
Slide 22: Printing – Net Sales Growth Rate Y/Y (Hardware & Non-hardware)
Printing – Net Sales Growth Rate Y/Y (Hardware & Non-hardware) FY 2023 FY 2022 2Q Full Year 2Q Full Year Actual Projection Actual Actual Hardware +21% +13% +10% +30% JPY Non-hardware +8% +6% +7% +10% Office MFDs Hardware +15% +10% -1% +17% LC Non-hardware +3% +4% 0% +2% Hardware -6% +5% +47% +34% JP
Slide 23: Office/Prosumer - Net Sales by Product Category
Office/Prosumer - Net Sales by Product Category (Billions of yen) FY 2023 FY 2022 2Q Full Year 2Q Full Year Actual Projection Actual Actual Office MFDs 156.5 620.8 137.3 567.8 Office Others 88.7 363.5 77.4 321.1 245.2 984.3 214.7 888.9 LPs 149.7 653.5 176.2 651.2 Prosumer IJPs 83.2 376.3 91.5 370.1