Canon Inc. · TSE:7751
Canon — Q1 2023 Earnings Presentation
23 slides from Canon's earnings presentation, Apr 26, 2023
Slide 1: Canon Inc. First Quarter 2023 Results
Canon Inc. First Quarter 2023 Results April 26, 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 1Q 2023 Results P2 - 4 FY 2023 Projection P5 - 7 Details by Business P8 - 14 (1Q 2023 Results & FY 2023 Projection) Financial Situation P15 - 16 Sustainability Measures P17 Excellent Global Corporation Plan Phase VI P18 Supplementary Information P19 - 21 1
Slide 3: Key Message (1Q 2023 Results)
Key Message (1Q 2023 Results) Global economy and our markets in line with expectations Double-digit sales and profit growth with growth of new businesses and high profitability of existing ones 1Q 2023 1Q 2022 (Billions of yen) % Change Actual Actual Net Sales 971.1 879.4 +10.4% Gross Profit 454
Slide 4: FY 2023 Financial Results by Business Unit
FY 2023 Financial Results by Business Unit (1Q 2023 Actual versus 1Q 2022 Actual) Imaging: Major improvement in profitability thanks to significant growth in sales of new interchangeable-lens cameras and network cameras Medical: Sales and profit growth with progress made in installing large equi
Slide 5: FY 2023 Operating Profit Analysis (1Q)
FY 2023 Operating Profit Analysis (1Q 2023 Actual versus 1Q 2022 Actual) Office MFDs, medical equipment, and network cameras contribute to sales volume Sales & marketing related expenses, accompanying sales expansion, and R&D expenses increase FX Details (Billions of yen) Net Sales: +60.2 Cost o
Slide 6: FY 2023 Financial Projection
FY 2023 Financial Projection (Full Year) Aiming for 3rd consecutive year of sales and profit growth through highly competitive products Raised sales and profit outlook to reflect strong performance of Imaging and restrained expenses FY 2023 FY 2023 FY 2022 Amount (Billions of yen) Current % Chan
Slide 7: FY 2023 Financial Projection by Bus. Unit
FY 2023 Financial Projection by Bus. Unit (Full Year) Achieve sales and profit growth in all 4 business units Imaging: Raised sales and profit projection by 26 and 10 billion yen, respectively Medical: Renew record high performance FY 2023 FY 2023 FY 2022 Amount (Billions of yen) Current % Cha
Slide 8: FY 2023 Operating Profit Analysis (Full Year)
FY 2023 Operating Profit Analysis (FY 2023 Current Projection versus FY 2022 Actual) Sales Volume: Higher profit with sales growth in all four business units Op. Expense: Sales growth and R&D to expand performance FX Details Net Sales: -33.8 (Billions of yen) Cost of Sales: +11.2 Op. Expenses: +
Slide 9: Printing - Office
Printing - Office 1Q: Significant increase in unit sales thanks to recovery in product supply volume Aiming to expand market share, leveraging strength of broad printing equipment lineup (Billions of yen) 1Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actu
Slide 10: Printing - Prosumer
Printing - Prosumer Laser: Work to expand sales of medium- to high-speed A4 color printers Inkjet: Expand share through enhanced lineup of refillable ink tank models (Billions of yen) 1Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual Change Change Proj
Slide 11: Printing - Production
Printing - Production 1Q: 8th consecutive quarter of sales growth with enhanced product lineup Stable growth through increased sales of consumables, driven by expanded sales of graphic arts-oriented equipment (Billions of yen) 1Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Act
Slide 12: Imaging - Cameras
Imaging - Cameras 1Q: Improved product mix through new mirrorless cameras, raised full-year sales projection Expand user base through launch of first entry-class EOS R series camera (Billions of yen) 1Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual Ch
Slide 13: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others 1Q: Achieved high network camera sales, second only to fourth quarter of last year Working to establish new businesses based on SPAD sensors, volumetric video etc. (Billions of yen) 1Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual
Slide 14: Medical
Medical 1Q: Sales up double-digit rate as planned, thanks to steady progress made in production and installation Working to raise profitability, expanding sales, particularly in the United States, where sales capabilities have been strengthened (Billions of yen) 1Q Full Year 2023 2023 2023 2022
Slide 15: Industrial – Optical & Industrial Equip.
Industrial – Optical & Industrial Equip. Semiconductor lithography equipment: Planning to sell 195 units by increasing production capacity Panel manufacturing equipment: Preparing for period of expansion from 2024 (Billions of yen) 1Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previou
Slide 16: Inventory
Inventory Inventory of finished goods at the end of March raised to address sales expansion from April Revised policy for parts and raw materials, moving towards reduction from second quarter (Billions of yen) FY 2022 FY 2023 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Amt. 324.7 353.6 408.1 36
Slide 17: Cash Flow
Cash Flow (Full Year) Over 600 billion yen in operating cash flow and approximately 250 billion yen in investment cash flow Repay debt and proactively return profits to shareholders, targeting payout ratio of 50% 2023 2023 FY 2022 FY 2021 Current Previous Actual Actual (Billions of yen) Projecti
Slide 18: Sustainability measures
Sustainability measures Aiming to sustainably raise corporate value by strengthening ESG activities and enhancing information disclosure Strengthen ESG activities Enhance information disclosure Reduce CO2 Emissions Sustainability report/Integrated Collaborating with numerous companies report 2022
Slide 19: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI Third consecutive year of sales and profit growth, linked to achievement of 2025 performance targets (Operating Profit: Billions of yen) (Net Sales: Trillions of yen) 5 1,000 Over 4,500.0 Billion Net Sales 4,313.0 Billion 4 4,031.4 Billion 800 New Operati
Slide 20: Supplementary Information
Supplementary Information
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 Imaging: +26.0 19
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 Full Year Full Year 1Q 1Q Full Year Current Previous Actual Actual Actual Projection Projection Hardware +39% +11% +11% -4% +30% JPY Non-hardware +12% +5% +5% +6% +10% Office MFDs Hardware +27% +12% +12% -9% +17% LC Non-h
Slide 23: Office/Prosumer Net Sales by Product Category; Lithography Unit Breakdown
Office/Prosumer - Net Sales by Product Category (Billions of yen) FY 2023 FY 2022 1Q Full Year 1Q Full Year Actual Projection Actual Actual Office MFDs 143.7 614.4 116.3 567.8 Office Others 89.6 346.7 77.7 321.1 233.3 961.1 194.0 888.9 LPs 151.1 638.4 150.2 651.2 Prosumer IJPs 86.8 391.4 89.7 370.1