Canon Inc. · TSE:7751
Canon — Q3 2023 Earnings Presentation
23 slides from Canon's earnings presentation, Oct 26, 2023
Slide 1: Canon Inc. Third Quarter 2023 Results
Canon Inc. Third Quarter 2023 Results October 26, 2023 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 sta
Slide 2: Agenda
Agenda ◼ 3Q 2023 Results P2 ◼ FY 2023 Projection P3 ◼ Details by Business P4 – 10 (3Q 2023 Results & FY 2023 Projection) ◼ Financial Situation P11 – 12 ◼ Sustainability Measures P13 ◼ Excellent Global Corporation Plan Phase VI P14 ◼ Supplementary Information P15 - 21 1
Slide 3: Key Message (3Q 2023 Results)
Key Message (3Q 2023 Results) ◼ Below plan due to softening demand in China and other regions and intensifying competition ◼ Achieved 11th consecutive quarter of year-on-year sales growth and over 1 trillion yen in sales for first time since 2007 through new business growth and yen depreciation ◼ Ac
Slide 4: FY 2023 Financial Projection (Full Year)
FY 2023 Financial Projection (Full Year) ◼ Lowered sales projection due to softening demand and resumption of price competition, but plan to post 1.2 trillion yen in sales in the 4Q, year-end selling season ◼ Still targeting 400 billion yen level in operating profit, last achieved in 2008 FY 2023 FY
Slide 5: Printing - Office
Printing - Office ◼ Solid sales in first half maintained in third quarter ◼ Increase market share by expanding unit sales also in fourth quarter (Billions of yen) 3Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Office
Slide 6: Printing - Prosumer
Printing - Prosumer ◼ Lowered full-year projection to reflect weaker-than-expected market conditions ◼ Focus on hardware sales in fourth quarter, link to consumable sales from next year (Billions of yen) 3Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual Ch
Slide 7: Printing - Production
Printing - Production ◼ 3Q: 10th consecutive quarter of year-on-year sales growth, driven by service revenue growth and yen depreciation ◼ 4Q: Aim to post record high quarterly sales of over 110 billion yen (Billions of yen) 3Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Ac
Slide 8: Imaging - Cameras
Imaging - Cameras ◼ Expanded sales also in 3Q, driven by new mirrorless camera products ◼ Expand mirrorless camera market share through synergy between camera bodies and lenses (Billions of yen) 3Q Full Year 2023 2023 2023 2022 % 2022 % Amount Current Previous Actual Actual Change Actual Change Chan
Slide 9: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others ◼ Expanded hardware sales by enhancing product lineup and strengthening sales structure ◼ Maintain growth by strengthening development and sales of systems for managing and analyzing capture footage (Billions of yen) 3Q Full Year 2023 2023 2023 2022 % 2022 % Amount
Slide 10: Medical
Medical ◼ 3Q: Achieved 6th consecutive quarter of year-on-year sales growth, expanding sales in Japan and Europe ◼ 4Q: Aim to renew record high full-year performance for third year in a row, ensuring the high level of orders is converted into sales within the year (Billions of yen) 3Q Full Year 2023
Slide 11: Industrial – Optical & Industrial Equip.
Industrial – Optical & Industrial Equip. ◼ Semiconductor lithography equipment: Sales plan, 189 unis for full year, ensure installation is completed within year ◼ Panel manufacturing equipment: Prepare for second-half 2024 and beyond (Billions of yen) 3Q Full Year 2023 2023 2023 2022 % 2022 % Amount
Slide 12: Inventory
Inventory ◼ Inventory at end of September higher than end of June due to foreign exchange rate impact and build up of inventory for sales expansion in fourth quarter ◼ Significant decrease towards year end driven by sales expansion in fourth quarter (Billions of yen) FY 2022 FY 2023 Mar.-end Jun.-en
Slide 13: Cash Flow (Full Year)
Cash Flow (Full Year) ◼ Despite lowering projection, expect operating CF to be 500 billion yen, which is above last year ◼ 257 billion yen in growth investment, and stable and active shareholder return being carried out 2023 2023 FY 2022 FY 2021 Current Previous Actual Actual (Billions of yen) Proje
Slide 14: Sustainability Measures
Sustainability Measures ◼ Aim to reduce burden on the environment throughout the entire product lifecycle through “Green Platform” Aim to reduce CO2 emission in line with SBTi standards Scope 1 and 2 42% reduction Scope 3 25% reduction 13
Slide 15: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI ◼ Achieve 3rd consecutive year of sales and profit growth, and link this to achievement of 2025 targets (Operating Profit: Billions of yen) (Net Sales: Trillions of yen) 5 1,000 Over 4,500.0 Billion Net Sales 4,220.0 Billion 4 4,031.4 Billion 800 New Operat
Slide 16: Supplementary Information
Supplementary Information
Slide 17: FY 2023 Financial Results by Business Unit
FY 2023 Financial Results by Business Unit (3Q 2023 Actual versus 3Q 2022 Actual) 3Q 1Q-3Q 2023 2022 2023 2022 (Billions of yen) % Change % Change Actual Actual Actual Actual Net Sales 570.4 554.8 +2.8% 1,703.4 1,632.4 +4.3% Printing Op. Profit 46.0 41.0 +12.3% 156.0 160.5 -2.9% (%) (8.1%) (7.4%) (9
Slide 18: FY 2023 Operating Profit Analysis (3Q Actual vs 3Q 2022)
FY 2023 Operating Profit Analysis (3Q 2023 Actual versus 3Q 2022 Actual) (Billions of yen) FX Details Net Sales: +43.7 Cost of Sales: -13.3 Op. Expenses: -15.0 16
Slide 19: FY 2023 Financial Projection by Bus. Unit
FY 2023 Financial Projection by Bus. Unit (Full Year) FY 2023 FY 2023 FY 2022 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 2,342.8 2,272.6 +3.1% 2,399.0 -56.2 Printing Op. Profit 241.4 212.4 +13.7% 241.8 -0.4 (%) (10.3%) (9.3%) (10.1%) Net Sales 90
Slide 20: FY 2023 Operating Profit Analysis (Current vs Previous Projection)
FY 2023 Operating Profit Analysis (FY 2023 Current Projection versus Previous Projection) (Billions of yen) FX Details Net Sales: +101.7 Cost of Sales: -34.7 Op. Expenses: -31.3 18
Slide 21: FY 2023 Operating Profit Analysis (Projection vs FY 2022 Actual)
FY 2023 Operating Profit Analysis (FY 2023 Current Projection versus FY 2022 Actual) (Billions of yen) FX Details Net Sales: +170.4 Cost of Sales: -60.6 Op. Expenses: -55.4 19
Slide 22: Printing – Net Sales Growth Rate Y/Y (Hardware & Non-hardware)
Printing – Net Sales Growth Rate Y/Y (Hardware & Non-hardware) FY 2023 FY 2022 3Q Full Year 3Q Full Year Actual Projection Actual Actual Hardware -4% +12% +75% +30% JPY Non-hardware +7% +7% +14% +10% Office MFDs Hardware -9% +7% +54% +17% LC Non-hardware +2% +2% +3% +2% Hardware -12% -12% +53% +34%
Slide 23: Office/Prosumer - Net Sales by Product Category
Office/Prosumer - Net Sales by Product Category (Billions of yen) FY 2023 FY 2022 3Q Full Year 3Q Full Year Actual Projection Actual Actual Office MFDs 151.5 620.7 149.7 567.8 Office Others 89.0 363.7 78.9 321.1 240.5 984.4 228.6 888.9 LPs 145.8 600.0 151.5 651.2 Prosumer IJPs 85.5 361.4 81.7 370.1