Slide 1: Canon Inc. Second Quarter 2024 Results
Canon Inc. Second Quarter 2024 Results July 25, 2024 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 2024 Results P2 – 5 ◼ FY 2024 Projection P6 – 10 ◼ Financial Situation P11 – 13 ◼ Summary P14 ◼ Supplementary Information P15 - 20 1
Slide 3: 2Q 2024 Review
2Q 2024 Review ◼ In markets in which we compete, demand remained weak in certain regions due to slowdown in global economic growth ◼ Recovery in camera, network camera, and laser printer sales as inventory adjustments were completed as planned ◼ Steady growth in semiconductor lithography equipment,
Slide 4: P&L (2Q/1H 2024 Results)
P&L (2Q/1H 2024 Results) 2Q 1st Half 2024 2023 2024 2023 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 1,167.8 1,020.9 +14.4% 2,156.3 1,992.0 +8.2% Gross Profit 551.6 484.8 +13.8% 1,030.0 938.8 +9.7% (% of Net Sales) 47.2% 47.5% 47.8% 47.1% Op. Expenses 433.2 392.5 831.5
Slide 5: 2Q 2024 Operating Profit Analysis
2Q 2024 Operating Profit Analysis (2Q 2024 Actual versus 2Q 2023 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference Printing: +23.7 Medical: +5.9 FX Details Imaging: +7.3 Net Sales: +87.4 Industrial: +16.3 Cost of Sales: -33.2 Others: +6.6 Op. Expenses: -29.2 Total: +5
Slide 6: 2024 Financial Results by Business Unit
2024 Financial Results by Business Unit (2Q/1H 2024 Actual versus 2Q/1H 2023 Actual) 2Q 1st Half 2024 2023 2024 2023 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 654.5 574.9 +13.8% 1,234.8 1,133.1 +9.0% Printing Op. Profit 79.2 59.3 +33.6% 144.7 109.9 +31.7% (%) (12.1%)
Slide 7: 2024 Outlook
2024 Outlook ◼ Amid uncertainty about future of global economy, assumed growth will be in line with previous year ◼ For B-to-C products (Cameras and inkjet printers), stimulate demand by launching new products and strengthening marketing activities ◼ For B-to-B products (Lithography equipment, comme
Slide 8: Business Structure Review
Business Structure Review Timeline 2024 2025 J F M A M J J A S O N D 1H 2H Basic concept Detailed plan Enter phase of execution step by step Sales Companies Medical Business • Org. restructuring R&D, Production, Management Optimal • Sales channel review distribution • DX promotion Integration Canon
Slide 9: 2024 Financial Projection (Full Year)
2024 Financial Projection (Full Year) 2024 2024 2023 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 4,600.0 4,181.0 +10.0% 4,350.0 +250.0 Gross Profit 2,192.9 1,968.9 +11.4% 2,065.5 +127.4 (% of Net Sales) 47.7% 47.1% 47.5% Op. Expenses 1,727.9 1,593
Slide 10: 2024 Operating Profit Analysis (Current vs Previous Projection)
2024 Operating Profit Analysis (FY 2024 Current Projection versus FY 2024 Previous Projection) FX Details (Billions of yen) Net Sales: +203.3 Cost of Sales: -79.1 Op. Expenses: -58.4 Change in Net Sales, excluding FX impact, for reference Printing: +45.0 Medical: -10.7 Imaging: +21.1 Industrial: -25
Slide 11: 2024 Financial Projection by Business Unit
2024 Financial Projection by Business Unit (Full Year) 2024 2024 2023 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 2,570.2 2,346.1 +9.6% 2,393.8 +176.4 Printing Op. Profit 299.8 228.3 +31.3% 260.6 +39.2 (%) (11.7%) (9.7%) (10.9%) Net Sales 594.6 55
Slide 12: Inventory
Inventory ◼ Inventory at June-end down, excluding the impact of yen depreciation ◼ Aiming for optimal inventory level of 60 days or less at December-end (Billions of yen) FY 2023 FY 2024 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end Amt. 372.5 387.5 377.6 312.6 347.6 361.5 Printing Days 57 6
Slide 13: Cash Flow (Full Year)
Cash Flow (Full Year) ◼ Operating CF rising to 590.0 billion yen due to increase in full-year profit projection ◼ Completed 100.0 billion yen share buyback, dividend 150 yen per share FY 2024 FY 2024 FY 2023 FY 2022 (Billions of yen) Current Previous Actual Actual Projection Projection Net income 33
Slide 14: Return on Capital
Return on Capital ◼ ROE 9.7% in 2024, significant increase of 1.5 points over last year ◼ Work for further improvement, achieve 2025 target of 10% or higher 14.0% 2025 Target ROE 10% or higher 12.0% PBR 9.7% 10.0% 7.9% 8.1% 8.2% 8.0% 1.3x 1.1x 1.0x 6.0% 0.8x Weighted Average Cost of Capital (WACC) 5
Slide 15: Summary
Summary ◼ Achieve record high sales and fourth consecutive year of sales and profit growth ◼ Work towards achieving 2025 target for sales one year earlier as well as achieve target for profitability Net Sales Operating Profit (Trillions of yen) （Billions of yen） 5 1,000 4.60T Net Sales 4.03T 4.18T 2
Slide 16: Supplementary Information
Supplementary Information
Slide 17: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 111.2 96.8 +14.9% 443.2 401.6 +10.4% 413.8 +29.4 Office Office MFDs 170.2 156.5 +8.8% 665.4 62
Slide 18: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales Net Sales Growth Rate of Printing Hardware & Non-hardware FY 2024 FY 2023 Full Year 2Q 2Q Full Year Current Actual Actual Actual Projection Hardware +19% +12% +9% +11% JPY Non-hardware +13% +9% +11% +11% Production Hardware +6% +3% +3% +3% LC Non-hardware +1% +
Slide 19: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 141.0 126.1 +11.8% 594.6 553.8 +7.4% 582.0 +12.6 Op. Profit 5.5 4.4 +24.4% 46.0 31.6 +45.3% 46.0
Slide 20: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 155.1 141.9 +9.3% 606.1 544.6 +11.3% 564.2 +41.9 Network Cameras & Others 89.6 77.3 +15.9% 367.8 3
Slide 21: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 61.3 50.6 +21.0% 250.8 212.6 +18.0% 248.8 +2.0 Industrial Equipment 33.2 24.3 +36.6%
Slide 22: 2024 Operating Profit Analysis (FY 2024 vs FY 2023)
2024 Operating Profit Analysis (FY 2024 Current Projection versus FY 2023 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference Printing: +75.8 FX Details Medical: +16.0 Net Sales: +231.3 Imaging: +51.9 Cost of Sales: -89.5 Industrial: +34.5 Op. Expenses: -79.4 Others: +7