Slide 1: Canon Inc. Second Quarter 2025 Results
Canon Inc. Second Quarter 2025 Results July 24, 2025 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/1H 2025 Results P 2-5 ◼ FY 2025 Projection P 6-10 ◼ Financial Situation P 11-13 ◼ Summary P 14 ◼ Supplementary Information P 15-20 1
Slide 3: 2Q/1H 2025 Review
2Q/1H 2025 Review ◼ Our markets remained stable, basically in line with expectations. However, our performance was significantly impacted by yen’s appreciation compared to same period last year ◼ New products drove continued growth in camera sales. Network camera sales grew nearly 20% and Medical po
Slide 4: P&L (2Q/1H 2025 Results)
P&L (2Q/1H 2025 Results) 2Q 1st Half 2025 2024 excl. FX 2025 2024 excl. FX (Billions of yen) % Change % Change Actual Actual Impact Actual Actual Impact Net Sales 1,140.2 1,167.8 -2.4% +2.0% 2,198.6 2,156.3 +2.0% +4.0% Gross Profit 534.8 551.6 -3.0% 1,035.7 1,030.0 +0.6% (% of Net Sales) 46.9% 47.2%
Slide 5: 2Q 2025 Operating Profit Analysis
2Q 2025 Operating Profit Analysis (2Q 2025 Actual versus 2Q 2024 Actual) FX Details (Billions of yen) Net Sales: -51.3 Cost of Sales: +19.1 Op. Expenses: +10.8 +5.4 +14.5 +4.6 -3.7 -21.4 Change in Net Sales, excluding FX impact, for reference Printing: -14.3 139.2 Medical: +6.6 118.4 117.8 Imaging:
Slide 6: 2Q/1H 2025 Financial Results by Business Unit
2Q/1H 2025 Financial Results by Business Unit 2Q 1st Half 2025 2024 2025 2024 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 610.6 654.5 -6.7% 1,221.6 1,234.8 -1.1% Printing Op. Profit 76.9 79.2 -2.9% 150.0 144.7 +3.6% (%) (12.6%) (12.1%) (12.3%) (11.7%) Net Sales 142.0 14
Slide 7: 2025 Outlook
2025 Outlook ◼ Solid market environment expected, but incorporated impact of postponed investment due to additional U.S. tariffs and heightened geopolitical tension into plan ◼ Decrease in gross profit due to lower sales will be offset through expense reduction. However, lowered projection for opera
Slide 8: 2025 Financial Projection (Full Year)
2025 Financial Projection (Full Year) 2025 2025 2024 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 4,600.0 4,509.8 +2.0% 4,650.0 -50.0 Gross Profit 2,160.0 2,143.1 +0.8% 2,170.0 -10.0 (% of Net Sales) 47.0% 47.5% 46.7% Op. Expenses 1,700.0 1,698.2 1
Slide 9: 2025 Operating Profit Analysis
2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2025 Previous Projection) (Billions of yen) FX Details Net Sales: +29.7 Cost of Sales: -8.4 Op. Expenses: -15.6 +5.7 +8.9 +19.6 +1.3 +5.0 -46.5 Change in Net Sales, excluding FX impact, for reference Printing: -60.1 466.0 Medical:
Slide 10: Review of Business Structure
Review of Business Structure (Billions of yen) 2024 2025 Full year Actual 1Q 2Q Current Projection Sales Cost -20.0 -1.2 -0.5 -6.0 Structural Effect 8.0 5.0 4.9 22.0 Reform PL Impact -12.0 3.8 4.4 16.0 Production Cost 0.0 -0.9 -0.1 -20.0 Structural Effect 0.0 0.0 0.0 0.0 Reform PL Impact 0.0 -0.9 -0
Slide 11: 2025 Financial Projection by Business Unit
2025 Financial Projection by Business Unit (Full Year) 2025 2025 2024 Amount Tariff excl. Tariff (Billions of yen) Current % Change Previous Actual Change Impact Impact Projection Projection Net Sales 2,489.7 2,522.7 -1.3% 2,523.1 -33.4 +6.2 -39.6 Printing Op. Profit 287.7 289.9 -0.8% 314.7 -27.0 -7
Slide 12: Inventory
Inventory ◼ Inventory at Jun.-end in line with Mar.-end, as increased inventory of finished goods for sales expansion in second half of year was offset through work-in-process reduction ◼ Aiming for an optimal inventory level of less than 60 days by end of 2025 (Billions of yen) 2024 2025 Mar.-end J
Slide 13: Cash Flow (Full Year)
Cash Flow (Full Year) ◼ Operating cash flow expected to be approximately 610 billion yen, same level as last year ◼ Invest in future growth and carry out active shareholders return 2025 2025 2024 2023 (Billions of yen) Current Previous Actual Actual Projection Projection Net income 330.0 333.0 325.1
Slide 14: Return on Capital
Return on Capital ◼ Expect ROE to be 9.8% in 2025 ◼ Improve return on capital to achieve ROE of 10% or higher, through structural reforms 14% 12% ROE PBR 9.4% 9.8% 10% (4.8% incl. Impairment Loss) 7.9% 8.1% 8.2% 1.4x 8% 1.1x 1.0x 6% 0.8x Weighted Average Cost of Capital (WACC) 5% to 6％ 4% 0.9x 3.2%
Slide 15: Summary
Summary ◼ Complete structural reforms in 2025, the year to close out 5-year plan, and work to solidify foundation for next 5-years Net Sales Operating Profit (Trillions of yen) （Billions of yen） 5 1,000 4.60T 4.51T Net Sales 4.03T 4.18T 4 800 3.51T 3 600 Operating 460.0B 444.9B Profit 353.4B 375.4B
Slide 16: Supplementary Information
Supplementary Information
Slide 17: 2025 Operating Profit Analysis (vs FY 2024 Actual)
2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2024 Actual) (Billions of yen) +104.8 +6.0 -13.2 -22.8 -24.8 -34.9 Change in Net Sales, excluding FX impact, for reference Printing: +15.3 FX Details Medical: +35.6 444.9 Net Sales: -100.5 460.0 Imaging: +122.3 Cost of Sales: +44.6
Slide 18: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y 2Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 103.3 111.2 -7.1% 446.0 441.5 +1.0% 448.4 -2.4 Office Office MFDs 161.2 170.2 -5.3% 636.1 647.0 -1.7% 637.6 -1.5
Slide 19: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales Net Sales Growth Rate of Printing Hardware & Non-hardware 2025 2024 2Q Full Year 2Q Full Year Actual Projection Actual Actual Hardware -12% +4% +19% +11% JPY Non-hardware -4% -1% +13% +9% Production Hardware -7% +6% +6% +4% LC Non-hardware 0% +2% +1% +2% Hardwa
Slide 20: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y 2Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 142.0 141.0 +0.7% 582.1 568.8 +2.3% 580.9 +1.2 Op. Profit 5.1 5.5 -7.4% 34.5 24.7 +39.9% 37.7 -3.2 % 3.6% 3.9% 5.9
Slide 21: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y 2Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 155.4 155.1 +0.2% 610.9 579.9 +5.4% 612.6 -1.7 Network Cameras & Others 105.3 89.6 +17.5% 400.2 357.5 +11.9% 398.9 +
Slide 22: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y 2Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 61.2 61.3 -0.1% 272.6 253.4 +7.6% 289.5 -16.9 Industrial Equipment 31.2 31.9 -2.5% 107.7 98.3 +9.5% 112