Slide 1: Canon Inc. First Quarter 2024 Results
Canon Inc. First Quarter 2024 Results April 24, 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 ◼ 1Q 2024 Results P2 – 5 ◼ FY 2024 Projection P6 – 9 ◼ Financial Situation P10 – 12 ◼ Summary P13 ◼ Supplementary Information P14 - 19 1
Slide 3: 1Q 2024 Review
1Q 2024 Review ◼ More challenging than expected business environment due to global economic slowdown, which caused continued delay in purchasing decisions and moves to reduce inventory ◼ Challenging inkjet and laser printer competitive environment, no real recovery in printer business performance ◼
Slide 4: Key Message (1Q 2024 Results)
Key Message (1Q 2024 Results) 1Q 2024 1Q 2023 (Billions of yen) % Change Actual Actual Net Sales 988.5 971.1 +1.8% Gross Profit 478.4 454.0 +5.4% (% of Net Sales) 48.4% 46.8% Op. Expenses 398.3 369.5 (% of Net Sales) 40.3% 38.1% Op. Profit 80.1 84.5 -5.2% (% of Net Sales) 8.1% 8.7% IBT 89.2 87.5 +1.
Slide 5: 1Q 2024 Operating Profit Analysis
1Q 2024 Operating Profit Analysis (1Q 2024 Actual versus 1Q 2023 Actual) Change in Net Sales, excluding FX impact, for reference Printing: -28.7 Medical: -4.5 Imaging: -30.9 Industrial: +4.5 Others: +1.6 (Billions of yen) Total: -58.0 FX Details Net Sales: +72.8 Cost of Sales: -27.6 Op. Expenses: -2
Slide 6: 1Q 2024 Financial Results by Business Unit
1Q 2024 Financial Results by Business Unit 1Q 2024 1Q 2023 (Billions of yen) % Change Actual Actual Net Sales 580.3 558.2 +4.0% Printing Op. Profit 65.5 50.6 +29.4% (%) (11.3%) (9.1%) Net Sales 134.2 131.1 +2.4% Medical Op. Profit 5.6 6.9 -18.9% (%) (4.2%) (5.2%) Net Sales 175.5 192.4 -8.8% Imaging
Slide 7: 2024 Outlook
2024 Outlook ◼ Outlook for global economy remains unclear, growth in line with last year ◼ Normalizing Imaging business market inventory ◼ Increasing sales, capturing expanding demand in growing markets of semiconductor lithography equipment, medical, network cameras, and commercial printing ◼ Conse
Slide 8: FY 2024 Financial Projection (Full Year)
FY 2024 Financial Projection (Full Year) 2024 2024 2023 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 4,350.0 4,181.0 +4.0% 4,350.0 0.0 Gross Profit 2,065.5 1,968.9 +4.9% 2,065.5 0.0 (% of Net Sales) 47.5% 47.1% 47.5% Op. Expenses 1,630.5 1,593.5 1,
Slide 9: FY 2024 Financial Projection by Business Unit
FY 2024 Financial Projection by Business Unit (Full Year) 2024 2024 2023 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 2,393.8 2,346.1 +2.0% 2,389.0 +4.8 Printing Op. Profit 260.6 228.3 +14.1% 255.9 +4.7 (%) (10.9%) (9.7%) (10.7%) Net Sales 582.0 55
Slide 10: FY 2024 Operating Profit Analysis
FY 2024 Operating Profit Analysis (FY 2024 Current Projection versus FY 2023 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference FX Details Printing: +25.0 Net Sales: +30.2 Medical: +24.0 Cost of Sales: -13.4 Imaging: +35.6 Op. Expenses: -17.0 Industrial: +60.8 Others:
Slide 11: Inventory
Inventory ◼ Inventory at end of March temporarily increases due to yen depreciation and increase in inventory in transit ◼ Reduction in work-in-process inventory at the end of 2024 leading to optimal inventory level of 60 days of less (Billions of yen) FY 2023 FY 2024 Mar.-end Jun.-end Sep.-end Dec.
Slide 12: Cash Flow (Full Year)
Cash Flow (Full Year) ◼ From 570.0 billion yen in operating cash flow, active growth investment and return to shareholders FY 2024 FY 2024 FY 2023 FY 2022 (Billions of yen) Current Previous Actual Actual Projection Projection Net income 305.0 305.0 264.5 244.0 Depreciation and amortization 240.0 240
Slide 13: Return on Capital
Return on Capital ◼ Through profitability improvement and structural reform - ROE 9.0% in 2024, 10% or higher in 2025 14% ROE 12% PBR 10％ or higher 10% 9.0% 7.9% 8.1% 8.2% 8% 1.3x 1.1x 1.0x 6% 0.8x Weighted average cost of capital (WACC) 5～6％ 4% 0.9x 3.2% 2% 0% 2020 2021 2022 2023 2024 2025 12
Slide 14: Summary
Summary ◼ Achieve fourth consecutive year of sales and profit growth through accelerated business expansion ◼ Firmly secure 2025 performance targets through sales structure reform and medical business innovation activities Net Sales Operating Profit (Trillions of yen) （Billions of yen） 5 1,000 4.5T
Slide 15: Supplementary Information
Supplementary Information
Slide 16: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 99.0 87.0 +13.8% 413.8 401.6 +3.0% 413.8 0.0 Office Office MFDs 156.3 143.7 +8.8% 627.5 622.2
Slide 17: 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 1Q 1Q Full Year Current Actual Actual Actual Projection Hardware +13% +7% +19% +11% JPY Non-hardware +14% +1% +18% +11% Production Hardware +1% +6% +8% +3% LC Non-hardware +3% -
Slide 18: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 134.2 131.1 +2.4% 582.0 553.8 +5.1% 582.0 0.0 Op. Profit 5.6 6.9 -18.9% 46.0 31.6 +45.3% 46.0 0.
Slide 19: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 102.3 110.0 -7.1% 564.2 544.6 +3.6% 565.0 -0.8 Network Cameras & Others 73.2 82.4 -11.2% 335.8 317
Slide 20: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2024 2024 2024 2023 % 2023 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 47.0 40.0 +17.5% 248.8 212.6 +17.0% 252.8 -4.0 Industrial Equipment 21.5 22.1 -2.7% 1
Slide 21: FY 2024 Operating Profit Analysis (vs Previous Projection)
FY 2024 Operating Profit Analysis (FY 2024 Current Projection versus FY 2024 Previous Projection) FX Details (Billions of yen) Net Sales: +28.5 Cost of Sales: -17.3 Op. Expenses: -9.1 Change in Net Sales, excluding FX impact, for reference Printing: -13.7 Medical: -2.4 Imaging: -4.3 Industrial: -7.4