Canon Inc. · TSE:7751
Canon — Investor Presentation (March 2019)
24 slides from Canon's investor presentation, Mar 1, 2019
Slide 1: Corporate Strategy Conference 2019
Canon Canon Inc. Corporate Strategy Conference 2019 March 1, 2019 Fujio Mitarai, Chairman & CEO
Slide 2: Agenda
Agenda ® Excellent Global Corporation Plan P1-3 Phase V — Progress B Revitalization of Existing Businesses P4-6 ™@ Progress and Future Measures of P7-18 New Businesses m@ Summary P19
Slide 3: Phase V of the Excellent Global Corporation Plan
Under Phase V of the Excellent Global Corporation Plan – a five- year initiative started in 2016 – we have been working towards reform under the basic policy of “Embracing the challenge of New Growth Through a Grand Strategic Transformation.” Last year marked the third-year, and midway point of this
Slide 4: Transformation of our business portfolio
Under this five-year plan, our number one focus is to complete a transformation of our business portfolio. For us to achieve the sustainable growth that we envision, we need to shift into business areas where higher growth can be expected. With this understood, even before the collapse of Lehman Bro
Slide 5: New businesses rose to 23% of total revenue
As a result, sales of new businesses in 2018 rose to account for 23% of total revenue, as compared to 9% in 2015, which was before the start of our current 5-year plan. And by 2020, the end of the plan, we expect that this will account for almost 30%. On the other hand, existing businesses account f
Slide 6: Existing Businesses
Existing Businesses
Slide 7: Revitalization of existing businesses
Now, I will discuss the thorough revitalization of existing businesses. Although the markets of existing businesses are maturing, we have steadily gained market share through the successive launch of competitive new products, since the start of the current five-year plan. Looking at color MFDs for e
Slide 8: Cameras and mirrorless market
On the other hand, among existing businesses, for cameras, which are mainly a consumer-oriented product, the overall market continues to shrink due to improvement in smartphone camera features. Even against this backdrop, however, we continue to see positive growth in mirrorless cameras, known for t
Slide 9: Lowering cost-of-sales ratio through automation
In addition to measures from a product perspective, strengthening existing businesses to further raise profitability is of the utmost importance. Here, we are keenly focused on measures aimed at lowering our cost-of-sales ratio. A prime example of this is the automation of product assembly. Our came
Slide 10: New Businesses
New Businesses
Slide 11: Four new businesses driving future growth
Next, I will discuss the new businesses that will drive our future growth—namely commercial printing, network cameras, medical, and industrial equipment—focusing on the progress we have made and results we have achieved so far as well as the challenges we expect to face and the future measures we pl
Slide 12: Commercial printing market
The first of our four new businesses I will look at is commercial printing. The digital portion of the market, where Canon competes, continues to grow thanks to the shift from offset to digital against the backdrop of rising demand for a high-variety short-run printing. We expect the market for grap
Slide 13: Inkjet products and sales engineers for commercial printing
In response to this change in print technology, over the past three years, we launched three new inkjet-based products targeting the graphic arts segment, where high growth is expected. We have worked to penetrate the market, growing unit sales with each passing year and will work to accelerate mark
Slide 14: Network camera market
Next, network cameras. The market continues to grow at a high rate thanks to increasing demand for security and replacement demand coming from a shift in technology from conventional analog to digital. Recently, with the advent of the age of AI and the capacity to conduct sophisticated analysis of r
Slide 15: Axis global partner network
Under these conditions, Axis, which is at the core of our network camera business, does not only have a broad lineup of camera hardware and software, but also an industry-leading global partner network. The number of partners responsible for sales in each country at the time we acquired Axis was alr
Slide 16: Network camera applications and M&A
Additionally, as for our response towards applications, we have actively introduced several proprietary applications, including software that can instantaneously count the number of people in a crowd of several thousand. However, we still need to further expand our lineup to address diversifying cus
Slide 17: Medical diagnostic imaging market
Next, Medical. For the diagnostic imaging systems market, which is our primary market, we expect growth to continue at a pace of around two to three percent, thanks to growing demand for leading-edge devices in developed countries and the rapid pace of medical infrastructure improvement in emerging
Slide 18: Renewed medical lineup and acquisitions
In this business environment, we have drastically renewed our lineup over the past three years, successively launching new products in such areas as CT, MRI, ultra-sound, and X- ray systems. Although certain new products had not initially received authorization outside of Japan, this was achieved at
Slide 19: Medical cost reduction and operating profit targets
Additionally, from a cost reduction perspective, we have been working to realize lower costs through synergies over the past two year, through cross-departmental project teams that span the entire company. Cost reduction, for example, has been realized through cooperation with the procurement divisi
Slide 20: Industrial equipment and OLED market
The last new business I will discuss is Industrial Equipment, which mainly consists of OLED vacuum deposition equipment. The number of smartphones adopting OLED panels is resulting in significant growth of the OLED panel market. Against this backdrop, our focus so far has been to keep up with demand
Slide 21: Strengthening profit structure for OLED equipment
Up until now, we have been in a situation where we are increasing production in order to respond to abundant demand. In preparation for the coming phase of market expansion, we will further strengthen our profit structure. Specifically, we will accelerate activities aimed at bringing down costs, suc
Slide 22: Improving workforce productivity
Thus far, I have discussed our measures for both existing and new businesses. Going forward, to further accelerate our grand strategic transformation, it is also very important for us to improve the productivity of our work force, in areas spanning from product development and production to sales &
Slide 23: Summary and growth targets to 2020
Overall, despite the impact of changing market conditions for cameras and OLED vacuum deposition equipment, I am confident that we can return to a path of growth from next year by promoting the measures for each business that I just outlined. Especially for new businesses, from this year until 2020
Slide 24: Canon
Canon