Slide 1: Canon Inc. FY 2023 Results
Canon Inc. FY 2023 Results January 30, 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 statements oth
Slide 2: Agenda
Agenda ◼ FY 2023 Results P2 – 5 ◼ FY 2024 Projection P6 – 9 ◼ Financial Situation P10 – 12 ◼ Excellent Global Corporation Plan Phase VI P13 ◼ Supplementary Information P14 - 19 1
Slide 3: Review of 2023
Review of 2023 ◼ Global economic slowdown also impacted our markets, strengthening trends of delayed purchasing and inventory reduction ◼ Even amid economic slowdown, new businesses (Medical, Network cameras, Commercial printing) and Semiconductor lithography equipment, posted solid sales growth ◼ P
Slide 4: Key Message (4Q/FY 2023 Results)
Key Message (4Q/FY 2023 Results) 4Q Full Year 2023 2023 2022 2023 2022 Amount (Billions of yen) % Change % Change Previous Actual Actual Actual Actual Change Projection Net Sales 1,163.7 1,157.2 +0.6% 4,181.0 4,031.4 +3.7% 4,220.0 -39.0 Gross Profit 548.1 518.3 +5.7% 1,968.9 1,827.8 +7.7% 1,998.0 -2
Slide 5: FY 2023 Financial Results by Business Unit
FY 2023 Financial Results by Business Unit 4Q Full Year 2023 2023 2022 2023 2022 Amount (Billions of yen) % Change % Change Previous Actual Actual Actual Actual Change Projection Net Sales 642.6 640.2 +0.4% 2,346.1 2,272.6 +3.2% 2,342.8 +3.3 Printing Op. Profit 72.4 51.9 +39.5% 228.3 212.4 +7.5% 241
Slide 6: FY 2023 Operating Profit Analysis
FY 2023 Operating Profit Analysis (FY 2023 Actual versus FY 2022 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference FX Details Printing: -38.0 Net Sales: +188.5 Medical: +20.4 Cost of Sales: -66.9 Imaging: +10.9 Op. Expenses: -61.9 Industrial: -17.8 Others: -10.6 Total
Slide 7: 2024 Outlook
2024 Outlook ◼ Uncertainty surrounding global economy remains high, pace of economy growth assumed slower than last year ◼ Expanding need for Semiconductor lithography equipment, Medical, Network cameras and Commercial printing drives market growth this year as well ◼ Aiming to expand sales through
Slide 8: FY 2024 Financial Projection
FY 2024 Financial Projection (Full Year) FY 2024 FY 2023 (Billions of yen) % Change Projection Actual Net Sales 4,350.0 4,181.0 +4.0% Gross Profit 2,065.5 1,968.9 +4.9% (% of Net Sales) 47.5% 47.1% Op. Expenses 1,630.5 1,593.5 (% of Net Sales) 37.5% 38.1% Op. Profit 435.0 375.4 +15.9% (% of Net Sale
Slide 9: FY 2024 Financial Projection by Business Unit
FY 2024 Financial Projection by Business Unit (Full Year) FY 2024 FY 2023 (Billions of yen) % Change Projection Actual Net Sales 2,389.0 2,346.1 +1.8% Printing Op. Profit 255.9 228.3 +12.1% (%) (10.7%) (9.7%) Medical Net Sales 582.0 553.8 +5.1% Op. Profit 46.0 31.6 +45.3% (%) (7.9%) (5.7%) Imaging N
Slide 10: FY 2024 Operating Profit Analysis
FY 2024 Operating Profit Analysis (FY 2024 Projection versus FY 2023 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference Printing: +39.0 FX Details Medical: +26.6 Net Sales: +6.0 Imaging: +36.5 Cost of Sales: -1.0 Industrial: +67.5 Op. Expenses: -6.0 Others: -10.7 Total
Slide 11: Inventory
Inventory ◼ Reduced to same level as 2021, due to lower parts orders and expanded sales in fourth quarter ◼ In 2024, reduce work-in-process to achieve optimal level of below 60 days (Billions of yen) FY 2022 FY 2023 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end Sep.-end Dec.-end Amt. 324.7 3
Slide 12: Cash Flow
Cash Flow (Full Year) ◼ Increase operating CF to carry out growth investment, enhance shareholder returns, and repay debt FY 2024 FY 2023 FY 2022 (Billions of yen) Projection Actual Actual Net income 305.0 264.5 244.0 Depreciation and amortization 240.0 238.7 226.5 Others 17.5 -52.0 -207.9 Net cash
Slide 13: ROE
ROE ◼ Improve profitability, reduce assets, and effectively utilize debt to achieve 8.9% ROE (Times) 10.0% 8.9% 8.9% 3.0 8.6% 8.2% ROE 7.9% 8.1% 2.5 2.0 5.0% 4.5% 1.5 3.2% 1.0 PBR 1.6 1.1 1.2 0.8 1.0 0.9 1.1 0.5 0.0% 0.0 2017 2018 2019 2020 2021 2022 2023 2024 12
Slide 14: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI ◼ New businesses drove growth in 2023 as well, now 28% of total revenue ◼ Achieve fourth consecutive year of sales and profit growth, which will lead to achievement of 2025 targets (Net Sales: Trillions of yen) (Operating Profit: Billions of yen) 5 1,000 Ov
Slide 15: Supplementary Information
Supplementary Information
Slide 16: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2023 2023 2022 % 2023 2022 % Amount 2024 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Production 119.2 108.0 +10.4% 401.6 362.4 +10.8% 397.0 4.6 413.8 +3.0% Office Offi
Slide 17: Net Sales Growth Rate of Printing Hardware & Non-hardware
Net Sales Growth Rate of Printing Hardware & Non-hardware FY 2024 FY 2023 FY 2022 Full Year 4Q Full Year 4Q Full Year Projection Actual Actual Actual Actual Hardware +7% +13% +11% +29% +30% JPY Non-hardware +1% +8% +11% +26% +23% Production Hardware +7% +7% +3% +12% +15% LC Non-hardware +1% +2% +3%
Slide 18: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2023 2023 2022 % 2023 2022 % Amount 2024 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Net Sales 164.2 150.8 +8.9% 553.8 513.3 +7.9% 561.8 -8.0 582.0 +5.1% Op. Profit 13.
Slide 19: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2023 2023 2022 % 2023 2022 % Amount 2024 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Cameras 154.0 149.2 +3.2% 544.6 509.7 +6.8% 551.5 -6.9 565.0 +3.7% Network Cameras
Slide 20: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2023 2023 2022 % 2023 2022 % Amount 2024 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Optical Equipment 68.9 75.6 -8.9% 212.6 240.4 -11.6% 215.0 -2.4 252.8 +18.9% Ind
Slide 21: FY 2023 Operating Profit Analysis versus Previous Projection
FY 2023 Operating Profit Analysis (FY 2023 Actual versus FY 2023 Previous Projection) FX Details (Billions of yen) Net Sales: +19.5 Cost of Sales: -6.2 Op. Expenses: -6.8 Change in Net Sales, excluding FX impact, for reference Printing: -5.8 Medical: -10.3 Imaging: -45.7 Industrial: -1.5 Others: +5.