Canon Inc. · TSE:7751
Canon — Q2 2021 Earnings Presentation
27 slides from Canon's earnings presentation, Jul 28, 2021
Slide 1: Second Quarter 2021 Results
Canon Inc. Second Quarter 2021 Results July 28, 2021 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 2Q 2021 Results P2 – 4 FY 2021 Projection P5 – 8 Details by Business P9 – 16 (2Q 2021 Results & FY 2021 Projection) Financial Situation P17 – 18 Sustainability Measures P19 Excellent Global Corporation Plan Phase VI P20 Supplementary Information P21 – 26 1
Slide 3: Key Message (2Q 2021 Results)
Key Message (2Q 2021 Results) External Environment 2Q 2021 2Q 2020 (Billions of yen) % Change Rebound in infections in Actual Actual certain regions Net Sales 881.9 673.3 +31.0% Global economy recovering Gross Profit 417.6 275.3 +51.7% with accelerated pace of (% of Net Sales) 47.4% 40.9% vaccin
Slide 4: FY 2021 Financial Results by Business Unit
FY 2021 Financial Results by Business Unit (2Q 2021 Actual versus 2Q 2020 Actual) Achieved sales growth in all Business Units Posted double-digit profit ratio in Printing, Imaging, and Industrial & Others 2Q 2021 2Q 2020 (Billions of yen) % Change Actual Actual Net Sales 489.6 393.4 +24.5% Print
Slide 5: FY 2021 Operating Profit Analysis
FY 2021 Operating Profit Analysis (2Q 2021 Actual versus 2Q 2020 Actual) Sales volume expansion in all Business Units contributed to increase in profit Expenses increased due to resumption of sales and development activities (Billions of yen) FX Details Net Sales: +35.6 Change in Net Sales, excl
Slide 6: Key Message (FY 2021 Projection)
Key Message (FY 2021 Projection) FX Assumptions Impact of exchange rate movement （2H impact given a one yen change） 2H 2021 FY 2021 Net Sales Op. Profit USD/Yen 108.00 yen 107.92 yen 6.1 billion yen 2.1 billion yen EUR/Yen 130.00 yen 129.95 yen 2.9 billion yen 1.4 billion yen External Environment
Slide 7: FY 2021 Financial Projection
FY 2021 Financial Projection (Full Year) Significant improvement in gross profit ratio and expense ratio Net income to exceed 200.0 billion yen FY 2021 FY 2021 FY 2020 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 3,600.0 3,160.2 +13.9% 3,500.0
Slide 8: FY 2021 Financial Projection by Business Unit
FY 2021 Financial Projection by Business Unit (Full Year) Raised outlook for all Business Units Post double-digit profit ratio in Printing and Imaging, even for the full year FY 2021 FY 2021 FY 2020 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales
Slide 9: FY 2021 Operating Profit Analysis
FY 2021 Operating Profit Analysis (FY 2021 Current Projection versus Previous Projection) Increase profit via FX, Sales Volume, Pricing, and Expenses Cost reduction - Limit impact of unavoidable increase in parts cost by reducing fixed costs and improving productivity FX Details (Billions of yen
Slide 10: Printing – Office
Printing – Office Strive to expand sales of new series of medium- to high-speed MFDs amid expectations that offices will re-open from 2H, and service revenue will recover to 90% of pre-COVID-19 level by year end (Billions of yen) 2Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Ac
Slide 11: Printing – Prosumer
Printing – Prosumer 2Q: Strong sales of products for home, which consists mainly of inkjet printers 2H: Capture not only home demand, but also recovering office demand (Billions of yen) 2Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual Change Change Pr
Slide 12: Printing – Production
Printing – Production Strong unit sales growth of new products launched last year Make progress in sales recovery through further enhancement of lineup and leveraging of new dealers (Billions of yen) 2Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual Ch
Slide 13: Imaging – Cameras
Imaging – Cameras Raised outlook for camera market to reflect solid demand. Now expect size to be 6 million units Sales of EOS R5 and R6 also strong in 2Q. Better than expected improvement in product mix Raised full-year outlook with strengthened lineup of RF lenses as driver (Billions of yen)
Slide 14: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others Network camera market clearly returning to double-digit growth 2H: Accelerate growth by actively investing in development (Billions of yen) 2Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual Change Change Projection Pr
Slide 15: Medical
Medical 2Q: Results basically in line with plan, thanks to ongoing market recovery, mainly in the U.S. Aiming for market exceeding growth, focusing on expanding sales of mainly high-end equipment (Billions of yen) 2Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Ch
Slide 16: Industrial & Others – Lithography Equipment
Industrial & Others – Lithography Equipment Again raised semiconductor lithography equipment unit sales projection Sold 17 FPD lithography tools as planned despite travel limitations (Billions of yen) 2Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual C
Slide 17: Industrial & Others – Industrial Equipment
Industrial & Others – Industrial Equipment Expect sales to be lower than last year due to a review of the timing of investments by customers (Billions of yen) 2Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Lithograp
Slide 18: Inventory
Inventory Low level of finished goods inventory at end of June due to strong sales etc. 2H: Focus on stably supplying products amid concerns about parts shortage FY 2020 FY 2021 (Billions of yen) Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end Amt. 238.6 233.3 227.9 216.7 237.3 232.0 Print
Slide 19: Cash Flow (Full Year)
Cash Flow (Full Year) FCF recovering to 230.0 billion yen thanks to strong performance Repay debt to strengthen financial position utilizing cash that is generated FY 2021 FY 2021 FY 2020 Current Previous Actual (Billions of yen) Projection Projection Net cash provided by operating activities 43
Slide 20: Sustainability Measures
Sustainability Measures Established Sustainability Headquarters with aim of contributing to achieving SDGs 2008 - 2030 2050 Contribute to Aiming for net achievement of SDGs zero CO2 emissions Steady improvement in Lifecycle CO2 emissions per Contribute to resolution of product unit social issues t
Slide 21: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI Progress in stabilizing profit of current businesses and growing new businesses A good start towards achieving targets set out in 5-year plan (2021-2025) (Sales: Trillions of yen) (Operating Profit: Billions of yen) 5 1,000 Over 4,500.0 Billion Sales 4
Slide 22: Supplementary Information
Supplementary Information 21
Slide 23: FY 2021 Operating Profit Analysis
FY 2021 Operating Profit Analysis (FY 2021 Current Projection versus FY 2020 Actual) (Billions of yen) FX Details Net Sales: +83.7 Cost of Sales: -16.3 Op. Expenses: -28.9 Change in Net Sales, excluding FX impact, for reference Printing: +148.3 Imaging: +98.2 Medical: +27.2 Industrial & Others: +95.
Slide 24: Printing - Net Sales Growth Rate of Hardware & Non-hardware
Printing - Net Sales Growth Rate of Hardware & Non-hardware FY 2021 FY 2020 2Q Full Year 2Q Full Year Actual Projection Actual Actual Hardware +47% +20% -38% -21% JPY Non-hardware +35% +5% -40% -20% Office MFDs Hardware +40% +16% -37% -20% LC Non-hardware +30% +2% -38% -20% Hardware +4% +17% -31% -2
Slide 25: Office MFDs - Net Sales Growth by Monochrome & Color
Office MFDs - Net Sales Growth by Monochrome & Color FY 2021 FY 2020 2Q Full Year 2Q Full Year Actual Projection Actual Actual Monochrome +35% +8% -39% -22% JPY Color +45% +14% -39% -19% Monochrome +29% +5% -38% -22% LC Color +38% +10% -37% -19% Office/Prosumer - Net Sales by Product Category (Billi
Slide 26: Office MFDs/LPs - Color Ratio
Office MFDs/LPs - Color Ratio FY 2021 FY 2020 2Q Full Year 2Q Full Year Actual Projection Actual Actual Net Sales 60% 61% 58% 59% Office MFDs Units 61% 60% 59% 59% Net Sales 53% 52% 52% 51% LPs Units 17% 20% 23% 21% Office MFDs/LPs - Unit Sales Growth by Monochrome & Color FY 2021 FY 2020 2Q Full Ye
Slide 27: DILC Ratio & Digital Compact Camera (DCC) Units
DILC Ratio & Digital Compact Camera (DCC) Units FY 2021 FY 2020 2Q Full Year 2Q Full Year Actual Projection Actual Actual DILC Ratio Net Sales * 89% 90% 86% 87% Units 70% 71% 66% 65% DCC Units (Millions) 0.31 1.25 0.26 1.48 * Net Sales Includes Interchangeable Lenses Semiconductor Lithography Equipm