Canon Inc. · TSE:7751
Canon — Q3 2025 Earnings Presentation
22 slides from Canon's earnings presentation, Oct 27, 2025
Slide 1: Canon Inc. Third Quarter 2025 Results
Canon Inc. Third Quarter 2025 Results October 27, 2025 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 sta
Slide 2: Agenda
Agenda ◼ 3Q 2025 Results P 2-5 ◼ FY 2025 Projection P 6-10 ◼ Financial Situation P 11-13 ◼ Summary P 14 ◼ Supplementary Information P 15-20 1
Slide 3: 3Q 2025 Review
3Q 2025 Review ◼ In our markets, additional U.S. tariffs and geopolitical risks led to trend of postponed investment greater than in Q2 ◼ Printing Group net sales declined, but steady growth in camera and network camera sales, more than 20% increase in Industrial Group net sales ◼ Net sales up 2% in
Slide 4: P&L (3Q 2025 Results)
P&L (3Q 2025 Results) 3Q 1Q-3Q 2025 2024 2025 2024 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 1,104.3 1,079.8 +2.3% 3,302.9 3,236.1 +2.1% Gross Profit 512.0 516.4 -0.8% 1,547.7 1,546.4 +0.1% (% of Net Sales) 46.4% 47.8% 46.9% 47.8% Op. Expenses 424.0 418.2 1,245.3 1,24
Slide 5: 3Q 2025 Operating Profit Analysis
3Q 2025 Operating Profit Analysis (3Q 2025 Actual versus 3Q 2024 Actual) (Billions of yen) +6.0 +3.7 +0.1 -5.0 -7.1 -7.9 Change in Net Sales, excluding FX Details FX impact, for reference Net Sales: +10.9 Printing: -9.9 98.2 Cost of Sales: +1.0 Medical: +4.5 Op. Expenses: -5.9 Imaging: +17.4 88.0 In
Slide 6: 3Q 2025 Financial Results by Business Unit
3Q 2025 Financial Results by Business Unit 3Q 1Q-3Q 2025 2024 2025 2024 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 604.0 610.9 -1.1% 1,825.6 1,845.7 -1.1% Printing Op. Profit 52.2 60.7 -14.0% 202.2 205.4 -1.6% (%) (8.6%) (9.9%) (11.1%) (11.1%) Net Sales 132.9 132.3 +0.
Slide 7: 2025 Outlook
2025 Outlook ◼ In Q4, expected trend of postponed investment to continue due to additional U.S. tariffs and impact of geopolitical risks ◼ Expect continued growth of cameras and network camera businesses, Printing Group to gain share with new products, and large-size equipment business to steadily c
Slide 8: 2025 Financial Projection (Full Year)
2025 Financial Projection (Full Year) 2025 2025 2024 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 4,616.0 4,509.8 +2.4% 4,600.0 +16.0 Gross Profit 2,154.0 2,143.1 +0.5% 2,160.0 -6.0 (% of Net Sales) 46.7% 47.5% 47.0% Op. Expenses 1,703.0 1,698.2 1,
Slide 9: 2025 Operating Profit Analysis
2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2025 Previous Projection) (Billions of yen) +26.9 +20.9 +2.5 -48.7 -8 -2.4 Change in Net Sales, excluding FX impact, for reference FX Details Printing: -24.2 460.0 Net Sales: +80.1 Medical: -9.1 451.0 Cost of Sales: -29.3 Imaging:
Slide 10: Review of Business Structure
Review of Business Structure (Billions of yen) 2024 2025 4Q Full year Actual 1Q 2Q 3Q Current Current Projection Projection Sales Cost -20.0 -1.2 -0.5 -0.8 -3.5 -6.0 Structural Effect 8.0 5.0 4.9 5.3 6.8 22.0 Reform PL Impact -12.0 3.8 4.4 4.5 3.3 16.0 Production Cost 0.0 -0.9 -0.1 -4.8 -14.2 -20.0
Slide 11: 2025 Financial Projection by Business Unit
2025 Financial Projection by Business Unit (Full Year) 2025 2025 2024 Amount Tariff excl. Tariff (Billions of yen) Current % Change Previous Actual Change Impact Impact Projection Projection Net Sales 2,495.1 2,522.7 -1.1% 2,489.7 +5.4 -12.6 +18.0 Printing Op. Profit 276.2 289.9 -4.7% 287.7 -11.5 -3
Slide 12: Inventory
Inventory ◼ Reduced work-in-process and built-up inventory of finished goods for year-end selling season ◼ Aiming for appropriate level of inventory of 60 days or less by end of 2025 (Billions of yen) 2024 2025 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end Sep.-end Amt. 347.6 361.5 344.1 342
Slide 13: Cash Flow (Full Year)
Cash Flow (Full Year) ◼ Secure 500 billion yen or more in operating CF ◼ Invest in future growth and carry out active shareholders return FY2025 FY 2025 FY 2024 FY 2023 (Billions of yen) Current Previous Actual Actual Projection Projection Net income 325.5 330.0 325.1 264.5 Depreciation and amortiza
Slide 14: Return on Capital
Return on Capital ◼ Expect ROE to be 9.8% in 2025 ◼ Aiming to achieve 10% or higher at early stage, through sales growth and progress in structural reforms 14% 12% ROE PBR 9.4% 9.8% 10% (4.8% incl. Impairment Loss) 7.9% 8.1% 8.2% 1.4x 8% 1.1x 1.0x 6% 0.8x Weighted Average Cost of Capital (WACC) 5% t
Slide 15: Summary
Summary ◼ In 2025, final year of 5-year plan, achieve 5th consecutive year of sales and profit growth, and accelerate structural reforms to make further advancement in next 5-year plan Net Sales Operating Profit (Trillions of yen) （Billions of yen） 5 1,000 4.62T 4.51T Net Sales 4.03T 4.18T 4 800 3.5
Slide 16: Supplementary Information
Supplementary Information
Slide 17: 2025 Operating Profit Analysis (FY2025 vs FY2024)
2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2024 Actual) (Billions of yen) +54.8 +8.5 -15.6 -0.3 -33.0 -8.3 Change in Net Sales, excluding FX impact, for reference Printing: -9.9 FX Details Medical: +25.9 Net Sales: -19.2 Imaging: +137.7 444.9 451.0 Cost of Sales: +15.4 Indu
Slide 18: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 107.5 105.5 +1.9% 446.6 441.5 +1.2% 446.0 +0.6 Office Office MFDs 149.2 152.9 -2.4% 636.5 647.
Slide 19: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales FY 2025 FY 2024 3Q Full Year 3Q Full Year Actual Actual Actual Actual Hardware +3% +2% +10% +11% JPY Non-hardware +1% +1% +5% +9% Production Hardware +1% +2% +7% +4% LC Non-hardware 0% 0% +2% +2% Hardware -7% -1% +1% +1% JPY Non-hardware +2% -2% +1% +7% Office
Slide 20: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 132.9 132.3 +0.4% 580.9 568.8 +2.1% 582.1 -1.2 Op. Profit 6.4 4.7 +36.4% 31.3 24.7 +26.9% 34.5 -
Slide 21: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 152.7 146.0 +4.6% 632.1 579.9 +9.0% 610.9 +21.2 Network Cameras & Others 100.9 93.6 +7.9% 417.6 35
Slide 22: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 3Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 61.9 51.4 +20.4% 260.4 253.4 +2.8% 272.6 -12.2 Industrial Equipment 23.5 18.7 +25.2%