Slide 1: Canon Inc. Corporate Strategy Conference 2018
Canon Inc. Corporate Strategy Conference 2018 March 6, 2018 Fujio Mitarai, Chairman & CEO 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 forme
Slide 2: Excellent Global Corporation Plan Phase V (2016-2020)
Excellent Global Corporation Plan Phase V (2016 – 2020) (Basic Policy) Embrace the challenge of new growth through a grand strategic transformation (Key Strategies) 1. Achieve a cost-of-sales ratio of 45% 2. Reinforce and expand new businesses 3. Restructure global sales network 4. Enhance R&D capab
Slide 3: Excellent Global Corporation Plan Phase V (2017 Achievements)
Excellent Global Corporation Plan Phase V (2017 Achievements) First time in 4 years to post overall sales and profit growth, first time in 9 years to post sales exceeding 4 trillion yen Doubled sales of new businesses. Expanded proportion of sales to 24% (Trillions of yen) (Billions of yen) 5 50
Slide 4: Phase V Future Initiatives and Priority Measures
Phase V Future Initiatives and Priority Measures (Fundamental Policy) Pursue total optimization and prioritize profits to complete our grand strategic transformation (Major Measures) • Thoroughly strengthen manufacturing prowess • Strengthen product development capability • Reform sales organization
Slide 5: Reinforce Profitability of Existing Businesses: Automation
Reinforce Profitability of Existing Businesses (Thoroughly strengthen manufacturing prowess: Automation) Hardware assembly Progression Camera derived expansion of Expansion through other businesses Automation assembly Unit 4
Slide 6: Reinforce Profitability of Existing Businesses: In-house Production
Reinforce Profitability of Existing Businesses (Thoroughly strengthen manufacturing prowess: In-house Production) Expand scope of in-house production to manufacturing equip. maximize cost saving throughout the entire factory Key components Production equipment 5
Slide 7: Reinforce Profitability of Existing Businesses: Product Development Capacity
Reinforce Profitability of Existing Businesses (Strengthen Product Development Capacity) Heavily invest resources into specific themes Net sales identified as having promising futures R&D expense R&D expense (Trillions of yen) (Billions of yen) ratio 5 800 15% 4 Net sales R&D expense R&D expense r
Slide 8: Reinforce Profitability of Existing Businesses: Gain Market Share
Reinforce Profitability of Existing Businesses (Gain Market Share) Interchangeable-lens Share Laser Printers Cameras 55% 50% 45% 40% 2012 2014 2016 2018 2020 2012 2014 2016 2018 2020 Projection Projection Projection Projection 7
Slide 9: Expand and Improve Profitability of New Businesses
Expand and Improve Profitability of New Businesses (4 New Businesses expected to drive overall growth) Entering new phase that not only focuses on expanding sales, but also improving profits Healthcare Commercial Printing Network Cameras Industrial Equipment 8
Slide 10: Healthcare: Products that leverage high definition
Expand and Improve Profitability of New Businesses (Healthcare: Products that leverage high definition) CT system that realizes the first significant improvement in resolution in 30 years Conventional New Product Clearly visualize peripheral vascular level detail that has been difficult to accompl
Slide 11: Healthcare: Medical IT Solutions
Expand and Improve Profitability of New Businesses (Healthcare: Medical IT Solutions) Medical IT Solutions that support the speeding up and precision of diagnostics in the medical field Process and supply information Data analysis Collection and integration image data Diagnostic Collect, integrate
Slide 12: Network Cameras
Expand and Improve Profitability of New Businesses (Network Cameras) Expand business from both hardware and Video Analytics software perspectives, strengthening cooperation with AXIS and Milestone Video People counting in a designated area Camera VMS Interchangeable-lens network camera achieved th
Slide 13: Network Cameras: Expand usage to other segments
Expand and Improve Profitability of New Businesses (Network Cameras) Expand usage to various other segments, promoting development of video analytical solutions Security Marketing Customer base, people-flow analysis, improve Crime prevention, people tracking, evacuation productivity Entertainment
Slide 14: Commercial Printing: Focus on Graphic Arts Market
Expand and Improve Profitability of New Businesses (Commercial Printing: Focus on Graphic Arts Market) Package High-quality continuous feed color inkjet press Printing “ProStream 1000” High-speed cut sheet inkjet printer “VarioPrint i300” Existing Document Printing Graphic Business Arts Services Pri
Slide 15: Commercial Printing: Sales Engineer Training
Expand and Improve Profitability of New Businesses (Commercial Printing: Sales Engineer Training) Strong need • Higher speeds Abundant • Improved quality • Greater efficiency product • Lower costs etc. knowledge Excellent Sales Corporate End-users Engineers customers Deep understanding of complex co
Slide 16: Industrial Equipment: Expanding use of OLED panels
Expand and Improve Profitability of New Businesses (Industrial Equipment) Expanding use of OLED panels Smart- Foldable Smart- phones phones OLED VR Panels HDTVs Auto- motive 15
Slide 17: Phase V Target
Phase V Target Net Sales Target (Trillions of yen) 5 Trillion yen 5 Existing New Businesses Businesses 30% 4 3 2 1 0 2016 2017 2018 2019 2020 16 Projection Projection Projection
Slide 18: Canon
Canon